Role of export department in export of bikes

The export deppt at YMI is merely a subsidiary of YMC, Japan. Unlike the export dept it is not active in the export of units and parts of motor bikes. The motorcycles to be exported at surajpur plant and Faridabad plant is involved in executing the order received from YMC, japan and preparing and forwarding the documents for export to the parties involved.

The export dept has absolutely no interaction or contact with the overseas buyer except in the case of the direct sale, which is done in the case of Nepal and Bangladesh. All contracts are between YMC, japan and the overseas buyer. YMI only dispatches the order as per the instruction documents for the japan. Further it prepares all the required documents for the respective parties i.e. finance, importer etc on dispatch of goods, YMI send the document to the importer’s bank the time period specified in the letter of credit.

Countries of export

ASIA

Bahrain Bangladesh BhutanIran Lebanon MongoliaKuwait Qatar NepalOman UAE Srilanka

Turkey Veitnam YemenMauritious

AFRICA

Ivory cost south Africa ZimbabweKenya Cameron GhanaMadagascar Guiana ugandaNigeria Tanzania

SOUTH AFRICA

Argentina costa Rica HondurasParaguay barbardos dominicanJamaica peru chileEcuador mexico uruguayColumbia Guapemala panamaVenezuela

OTHER

Denmark france germanyJapan UK USAPhilippines

TYPES OF DOCUMENTS

ENQUIRE

The importers in the foreign markets send their requirement of YMI motorcycles to the export division by fax through the mean of PURCHASE ORDER stating the total approximation delivery period.

PURCHASE ORDER

It specifies all the details of goods. In it rate and relevant terms and condition of trade like the prices are to be quoted as FOB, C&F, or payment to be made in advance or through letter of credit.If the concerned buyer is satisfied with the product and all terms and conditions, the company places order or negotiations some terms to mutual consent. Once the reputation is established between two parties, all then has no problem in procuring order regularly. It can receive order on telephone or fax and similarly can negotiate terms on telephone.

Letter of credit

It refers to a promise made by the importer’s bank to exporter that the payment shall be made to him

provided the shipment made by him in strict compliance with the terms and conditions of the export contract. The bank does not deal in the goods, they deal in the documents. Therefore an importer can specify to the bank that the exporter has sent the shipment in strict compliance with the terms and conditions of the export contract.

INVOICE

It is the bill containing the details of goods sent, along with their rate and amount. The invoice is the basic document. As a document of contents, it must fully identify the overseas shipment and serve a basic for the preparation of all other documents. It includes the following things.

Invoice number and dateExporter’s referenceBuyers order number and dateOther referenceExporter nameConsignee nameBuyer’s name(if other than consignee)Mode of transport to the portPort of discharge and final destinationTerms of delivery and paymentGR1 numberAR4 number

Case markMode of contract

PACKING LIST

It is a list showing the details of the goods containing in each parcels/shipment. Packing list has to be prepared in the aligned document form. The only difference from the invoice is that it does not have the description of price and rate of goods.

BILLS OF LADDING

The B/L is a document issued by the shipping company or its agent acknowledging the receipt of the goods mentioned.For preparation of B/L the exporter should submit the complete set of B/L together with the mate’s receipt in the standardized aligned form to the shipping company which will calculate the freight amount on the basis of weight as certified by the recognized member of chamber of commerce. It serves the following purpose:-

It is a document for the title of the goodsIt is the receipt of goods

B/L is generally out in the sets of two or three originals. The master of the ship or the agent of the

shipment company duly signed all the originals. All the originals are equally valid for taking the delivery of goods. Few extra copies of B/L are also issued generally marked as “non negotiable copy” which can not be used for taking delivery.

TYPES OF B/L

Following are the some types of B/L:

Received for shipment B/L- certifies only the receipt of goods.

On deck B/L- certifies and contains a remark that goods are shipped on deck.

Through B/L- it covers the whole voyage and is acceptable if transshipment is permitted.

Clause B/L- it is B/L containing additional clause limiting the responsibility of the shipping company and including defective condition of the goods.

Clean B/L- a clean B/L is one which does not bear any superimposed clause or annotation, which expressly declare a defective condition of the goods or the packaging.

SHIPPING BILL

Shipping bill is the main document required by the custom authority for allowing shipment. Shipment bill lies with regard to the good being subject to:

Export duty Free of duty

Entitlement of duty drawback Entitlement of credit of duty under DEPB scheme Re-export of imported goods.

The formats presented for the shipping bill are as follows:- White shipping bill- for export of duty free goods prepared in

triplicate in the standardized format. Green shipping bill- for export of goods under the claim of

duty drawback in quadruplicate. Yellow shipping bill- for export of dutiable goods prepared in

triplicate. Pink shipping bill- for the export of the duty free goods

exbond prepared in triplicate. Blue shipping bill- for the export under the DEPB scheme

prepared in seven copies.

NOTE: when the goods are to be cleared by the land custom, bill of export is prepared instead of shipping bill.

AIRWAY BILL/CONSIGNMENT NOTE

The receipts is issued by an airline company or its agent for goods is called airway bill or consignment note. It is not a document of title and is not issued in a negotiable form. The goods are to be delivered to the consignee mentioned in the airway bill as consignee/receiver against payment of charge, if any.The railway bill consists of 3 originals and 6 to 11 copies. It is a non-negotiable document.

BILL OF EXCHANGE

A bill of exchange is defined as an unconditional written order prepared by an exporter asking the importer to pay a specific sum of money to a specific sum of money to a specific person time. The specified amount is represented by the amount of invoice, the

specified person refers to the bank and the amount is a matter of negotiation between and exporter.

It is of two types: Sight bill of exchange Usance bill of exchange In sight B/E the payment is to be made by the importer

immediately or on demand to get the document. In usance B/E payment is to be made after expiry of a certain

period of time.

MATE’S RECEIPT

The chief of the vessel issued it after the loading of the goods. It contains the following:

Name of the shipper Place of receipt & voyage number Port of loading Port of delivery & port of discharge Marks and number Description of goods Gross weight

The receipts ate of transferable nature and must be presented at the shipping company’s office to be exchanged in to the bill of lading.

COMBINED TRANSPORT DOCUMENT

Inland container depot has been set up at various centers at the country. These dry ports have made it possible to cover the entire movement of goods from ICD to destination under the transport document called Combined Transport Document.

CERTIFICATE OF ORIGIN

PHD chamber of commerce and industry certifies that the goods listed in the invoice are of Indian origin and manufactured in India as well. In some cases as per requirement of client, the embassy of the buyer’s country certifies the Indian manufactured goods.

GSP CERTIFICATE OF ORIGIN

It is very much similar to the certificate of origin and also issued by PHD chamber of commerce and industry. The only difference is that the COMMON WEALTH COUNTIES seek it.TRANSSHIPMENT BILL:This document is issued for the goods imported to custom port/airport intended for transshipment.

SHIPPING ORDER

shipping order is issued by the shipping line intimating the exporter about the reservation of the shipment space of cargo through a particular vessel from a specified port and on a specific date.

SHIPPING ADVICE

A shipping advice is issued to inform the overseas buyer about the shipment of goods. It is prepared in aligned document. The exporter only advice his importer about the invoice number. Bill of lading, airway bill no, name of the vessel, port of export and the quantity and the sailing of the vessel.

EXTERNAL INSPECTION AGENCY REPORT

The importer hires an inspection agency operating on an international level. These inspection agencies are known as External Inspection Agency (EIA). They have a network of office worldwide. The inspection is carried out for:

Quality Quantity Stuffing Marketing Packing Price comparison

On the successful inspection an inspection and a clean report of finding CRF is issued.

SOME IMPORTANT EXPORT DOCUMENTS

AR 4 FORM- it is an application for removal of excisable goods for export by rail/air/sea.

GR FORM- it is an exchange control declaration form, a RBI a document containing the name of the bank through which payment has to be received and the custom assessable value in rupees. Declaration is made under Foreign Exchange Regulation act.

DOCUMENTATIONPROCEDURE OF

YMI

Order received from importer Purchase order Letter of credit