EXPORT DOCUMENTATION FRAMEWORK : EXPORT DOCUMENTATION FRAMEWORK MODULE 1 GROUP MEMBERS : GROUP MEMBERS Rahul borse
Jash Export Application : Export Application IEC NUMBER : IEC NUMBER What is IEC Number
Cov.Letter_for_IEC.doc Proforma Invoice & Commercial Invoice : Proforma Invoice & Commercial Invoice Proforma Invoice : Proforma Invoice Document that states a commitment from the seller to sell goods to the buyer at specified prices and terms
Quote in an invoice format
Usually issued by the exporting company
Same information as the formal quotation Points to be included in the proforma: : Points to be included in the proforma: Description of item
Type of currency
Terms of payment
Costs associated with freight and insurance
Buyers & sellers name & address
Prices of items: per unit and extended totals
Weights and dimensions of quoted products
Estimated shipping date Commercial Invoice : Commercial Invoice Document required by customs to determine true value of the imported goods, for assessment of duties and taxes.
Used as a customs declaration by the exporter
Primarily used to calculate tariffs Commercial Invoice Document Includes: : Commercial Invoice Document Includes: 1. EXPORTER
3. INTERMEDIATE CONSIGNEE
4. FORWARDING AGENT
5. COMMERCIAL INVOICE NO
6. CUSTOMER PURCHASE ORDER NO
7. B/L, AWB NO
8. COUNTRY OF ORIGIN
9. DATE OF EXPORT
10. TERMS OF PAYMENT Cont…. : Cont…. 11. EXPORT REFERENCES
12. AIR/OCEAN PORT OF EMBARKATION
13. EXPORTING CARRIER/ROUTE
16. NET WEIGHT/GROSS WEIGHT
17. DESCRIPTION OF MERCHANDISE
18. UNIT PRICE/TOTAL VALUE
19. PACKAGE MARKS
20. MISC. CHARGES
21. CERTIFICATIONS Packing list Shipping order : Packing list Shipping order Export Packing List : Export Packing List A list showing the details of goods contained in each parcel/shipment.
Detailed view of item-by-item the containers to enable the buyer/receiver of shipment to check the shipment. Packing List Includes : Packing List Includes Name and address-shipper & consignee
Exporting Carrier Slide 17: Export Packing List
itemizes the material in each individual package and indicates the type of package: box, crate, drum, carton, and so on.
shows individual net, legal, tare, and gross weights and measurements for each package .
The list is used by the shipper or forwarding agent to determine the total shipment weight and volume and whether the correct cargo is being shipped. Slide 18: View of sample packing list Shipping order : Shipping order Shipping order is issued by the shipping Line intimating the exporter about the reservation of space of shipment of cargo through a particular vessel from a specified port and on a specified date. Shipping order includes : Shipping order includes Exporter
Port of discharg
Country of Destination Slide 21: Sample view of shipping order Pre-Shipment Inspection : Pre-Shipment Inspection Quality : Quality “ Customers don’t complain, they switch. And in most cases, they don’t even let you know that they are unhappy. “ - Deming Quality of a product is defined as a set of attributes or specifications including packaging specifications in a given product. Slide 24: Requirements for Exports under EIC of India Intimation for Inspection : Intimation for Inspection Procedure for Intimation : Procedure for Intimation The processor/exporter intending to export goods have to submit:
an application in the prescribed pro-forma in duplicate to the nearest office of the EIA
the bank draft for the required inspection fee (0.4% of FOB), invoice and the purchase order with the contractual specification, if any.
at least seven days before the date of shipment.
After proper scrutiny of the application, an officer not below the rank of Technical Officer will be deputed to carry out the quality control and inspection of the consignment offered.
Pro-forma: intimation for inspection.doc Pre-Shipment Inspection : Pre-Shipment Inspection The Government of India had enacted Export (Quality Control and Inspection) Act, 1963, which came into force from January 1, 1964.
The Government of India notified 1057 items under the compulsory quality control and pre shipment inspection.
PSI is an important and reliable quality control method for checking goods' quality while clients buy from the suppliers.
Types of Pre-Shipment Inspection:
By the Exporter himself
By the Buyer’s representative
By the Buying agent in the exporter’s country
By the inspection agencies in the private sector
Compulsory Inspection – Agencies of Government of India
EIC through its EIA
Central Silk Board Reason for PSI : Reason for PSI Pre-shipment inspection can greatly avoid risk and ensure clients get quality products from suppliers.
Checking the total amount of goods and packing
Controlling the quality and/or consistency of goods
Verifying compliance with the standards of the destination country Pre-Shipment Inspection : Pre-Shipment Inspection Systems of Inspection
In-Process Quality Control
Exemptions from Compulsory PSI
100% Export Oriented Units & units set up in SEZ
Items exempted from compulsory pre-shipment inspection
Products bearing ISI mark or AGMARK for exports. Certificate of Inspection : Certificate of Inspection If the consignment offered for inspection is found to conform to the standards recognized for the goods, on the basis of the field inspection report, a certificate of inspection will be issued to the exporter.
The certificate of inspection will be prepared in quadruplicate of which:
the first three copies will be made available to exporter
the original for the customs use,
the second copy for the use of foreign buyer and
the third copy for exporter’s use
fourth copy will be retained in the EIA office for records.
Pro-forma : Certificate of Inspection.doc
Fees: Inspection fee @ 4% of FOB value of consignment, subject to minimum value of Rs. 500/- per consignment shall be paid to the Agency by the exporter. Certificate of Rejection : Certificate of Rejection If the consignment is found not conforming to the specification, a rejection letter will be prepared, the original of which will be made available to the exporter.
the certificate of the Export Worthiness originally issued by the Agency will be withdrawn
final decision will be taken by a team of officers, constituted by the in-charge of the Agency
the Agency officers will draw samples up to a maximum of 5% of the total number of the packages from the consignment
any defect is observed, the entire packages of the defective lot will not be permitted for export.
Pro-forma : Certificate of Rejection.doc
A copy of the invoice, showing the details of each of the varieties of goods in the consignment, will be attached with each copy of the certificate of inspection giving cross reference to the Certificate of Inspection on such invoice. Slide 32: Final Inspection Certificate of AIM CONTROL.pdf Why insurance is needed?? : Why insurance is needed?? Insurance Declaration Insurance Policy : Insurance Policy Functions
F:\Export_documents\insurance certificate.pdf Insurance certificate : Insurance certificate What is it?
Blank insurance certificates
Use in sea shipment Insurance Policy vs. Insurance Certificate : Insurance Policy vs. Insurance Certificate Types of Insurance policies : Types of Insurance policies Open or floating policy
Sellers Contingency policy Shipping instruction : Shipping instruction Shipping Instruction : Shipping Instruction Seller writes letter to the shipping company to send the goods
Intimates the buyer that goods are ready to be shipped Mates receipt Shipping advice : Mates receipt Shipping advice Mate’s Receipt : Mate’s Receipt Temporary receipt issued for goods, which have been delivered to the vessel
Acknowledgement that the ship owner has received the goods in the condition stated
Preliminary document only, which is later given up in return for the bill of lading
When the Chief Officer signs the receipt for goods he is personally liable for any deficiency in the number proved to exist on discharge of the good Contents of the Mate’s Receipt : Contents of the Mate’s Receipt Name of the shipper
Place of receipt
Port of Loading
Port of Discharge
Place of Delivery
Description of Goods
Other Details Number of Copies Issued : Number of Copies Issued Receipt books should be in triplicate forms
one copy for boat man,
one for the agents,
and one left in the book. Slide 44: Mate's Receipts should be issued on ship's forms and numbered.
The number in dispute should clearly be stated in words on the receipt which there is agreement being separately shown
For Example :
"Received on board 17 packages: three more in dispute"
and not as sometimes done thus:
"Received 2O packages, three in dispute". Cont… : Cont… Mate's receipts should be endorsed "at shipper's risk until actually shipped" Contd.. : Contd.. When in doubt as to weight, quantity and condition, Mate's receipts as well as the bills of lading should be caused "weight, quality, quantity and condition unknown". Shipping Advice : Shipping Advice Letter or form sent by an exporter to a foreign buyer informing that the shipment of the ordered goods is on its way. A copy of the invoice and the packing slip (and sometimes a copy of bill of lading) may also be attached. Slide 49: BILL OF LADING Bill of lading : Bill of lading A document issued by a carrier or by a shipper's agent that identifies the goods received for shipment, where the goods are to be delivered, and who is entitled to receive the shipment. Abbreviated B/L. Types of bill of lading. : Types of bill of lading. clean bill
or clean bill of lading. A bill of lading with no added notations that change or qualify its terms.
or order bill of lading. A bill of lading that is negotiable and that states that the goods can be delivered only when the bill of lading is presented to the carrier. Title to the bill of lading and to the goods identified in it can be transferred by the shipper, indorsing and giving up possession of the document to another, who is then entitled to receive the goods from the carrier.
or straight bill of lading. A nonnegotiable bill of lading that merely specifies the specific place and person the carrier is to deliver the goods to.
or through bill of lading. A bill of lading issued by the first of multiple connecting carriers who are going to ship the goods. By issuing the document, the first carrier assumes responsibility for the other carriers for the shipment's eventual arrival and delivery at the designated place and person. Bill Of Lading tracking : Bill Of Lading tracking COOApplication for COO : COOApplication for COO CERTIFICATE OF ORIGIN (COO) : CERTIFICATE OF ORIGIN (COO) Meaning
It traditionally states from what country the shipped goods originate.
Why is it require ?
Helps prove that the product is allowed into that particular country.
To claim preferential tariffs
In case of India ( import duty regime) Different Certificate of Origins required by your importers to avail different concessions : Different Certificate of Origins required by your importers to avail different concessions Types of COO : Types of COO NAFTA Certificates of Origin Mexican Certificate of Origin General Certificate of Origin Form is used for almost all exports Products that are made in the U.S., and are being shipped into Mexico or Canada To prevent Asian textiles and footwear from being dumped into Mexico via the U.S. Slide 57: South African Certificates of Origin Turkey Certificates of Origin Israeli Certificate of Origin Japanese Certificate of Origin American goods shipped into Israel If exported goods have been assigned preferential tax treatment under GATT Goods are liable to antidumping When the goods qualify for a lower rate of duty APPLICATION FOR CERTIFICATE OF ORIGIN (COO) : APPLICATION FOR CERTIFICATE OF ORIGIN (COO) APPLICATION FOR CERTIFICATE OF ORIGIN (COO) : APPLICATION FOR CERTIFICATE OF ORIGIN (COO) Application form submitted to
Chamber of commerce
Authorized agency for the issue
Procedure how to apply COO Slide 60: Sample
certificate of Origin Bills of Exchange : Bills of Exchange What is Bill Of Exchange? Why is it used? : What is Bill Of Exchange? Why is it used? A bill of exchange or "draft" is a written order by the drawer to the drawee to pay money to the payee.
It is a negotiable financial instrument by the drawer (creditor) to the drawee (debtor) to pay a certain amount of money at a matured date.
They are used primarily in international trade, and are written orders by one person to his bank to pay the bearer a specific sum on a specific date. Specimen Of A Bill Of Exchange : Specimen Of A Bill Of Exchange JAMMU 20th Nov. 2009 Stamp Three months after due date, pay XYZ or order, the
Sum of Rs 1000(one thousand only) for value received. To, M/S ABC Gandhi Nagar
Jammu Parts Of A Bill Of Exchange : Parts Of A Bill Of Exchange Date
Parties Special features : Special features A Bill Of Exchange is an instrument in writing
It must be signed by the maker
It contains an unconditional order
The order must be to pay money and money only
The sum payable must be specific
The amount must be paid within a stipulated time
The name of the drawee must be clearly mentioned
It must be dated and stamped Parties to a Bill Of Exchange : Parties to a Bill Of Exchange Drawer
The person who draws or writes the Bill Of Exchange is called the Drawer. The Drawer must be the seller or creditor to whom the money is owing Drawee : Drawee The Drawee is the person on whom the bill is drawn. He is the purchaser or debtor who is ordered by the Drawer to pay the amount Payee : Payee The person who has the right to receive the amount of the bill is called the Payee, the Payee may be a third person or the Drawer himself Advantages of Bill of Exchange : Advantages of Bill of Exchange A Bill of Exchange is used in settlement of debts
It fixes the date of payment
It is a written and signed acknowledgement of debt
A debtor enjoys full period of credit
A drawer can convert the bill into cash by getting it discounted with the bank Kinds of Bills Of Exchange : Kinds of Bills Of Exchange Inland Bill
Accommodation Bill Shipping Bill/Bill Of export : Shipping Bill/Bill Of export Shipping Bill/Bill Of Export : Shipping Bill/Bill Of Export The Shipping Bill/ Bill of Export are the main document required by the Customs Authority for allowing shipment for all products exported from India. Documents Required : Documents Required The documents used for the processing of the Shipping Bill are:
GR forms (in duplicate) for shipment to all the countries,
Four copies of the packing list mentioning the contents, quantity, gross and net weight of each package,
Four copies of invoices which contains all relevant particulars like number of packages, quantity, unit rate, total f.o.b./ c.i.f. value, correct & full description of goods, etc,
Contract, L/C, Purchase Order of the overseas buyer,
AR4 (both original and duplicate) and invoice and
Inspection/ Examination Certificate Types of Shipping Bill for Exports : Types of Shipping Bill for Exports Free Shipping Bill
Drawback Shipping Bill
DEPB (Duty Entitlement Passbook Scheme)Shipping Bill
DEEC (Duty Exemption Entitlement Certificate)
Bond Shipping Bill
Dutiable Shipping Bill Detail Documents Required : Detail Documents Required SDF Form (Appendix I) – Free Shipping Bill
Annexure B Form – Drawback Shipping Bill
Appendix III Form – Drawback Shipping Bill
Appendix IV Form (applicable only for certain items) – Drawback Shipping Bill
AR4 Form – Drawback Shipping Bill
Annexure D Form – DEPB Shipping Bill
DEPB Shipping Bill Cont… : Cont… Annexure for DEEC Declaration
DEEC Declaration Appendix II (after DEEC registration is complete, it is required from the shipper) Formats : Formats The formats presented for the Shipping Bill are:
White Shipping Bill in triplicate for export of duty free of goods,
Green Shipping Bill in quadruplicate for the export of goods which are under claim for duty drawback,
Yellow Shipping Bill in triplicate for the export of dutiable goods,
Blue Shipping Bill in 7 copies for exports under the DEPB scheme LETTER TO BANK FOR NEGOTIATION VEHICLE TICKET : LETTER TO BANK FOR NEGOTIATION VEHICLE TICKET AR – 4 FORM : AR – 4 FORM Every manufacturer for clearance of excisable goods files an application AR-4 from his factory for export.
The clearances can be ‘under claim for rebate of duty’ or ‘under bond.’
The goods can be examined and sealed at the factory by a central excise officer having jurisdiction over the factory.
After shipment of goods, the customs officer endorses AR-4 form, which is taken as evidence by excise authorities for considering rebate in duty or cancellation of bond. Slide 80: AR4 and AR4A are merged
Procedure for export.
The assessee has the option to clear the export goods with or without sealing of the consignment at the place of removal.
In case he opts for factory sealing, the goods would be examined by the
Central Excise officers at the factory.
Otherwise, the goods would be examined by the Customs officer at the port of exportation. Slide 81: Information to be given on AR-4.
The exporter is required to give the following information on the AR-4 form
running sl. No. of the AR-4 beginning from each financial year;
scheme under which export has been made, i.e. value based advanced licensing scheme/ quantity based advanced licensing scheme/ under claim for duty drawback etc.;
whether the exported goods have been manufactured availing/without availing Modvat credit under Rule 57A; and
particulars of bond executed or the duty debit particulars as the case may be. Different Port Charges : Different Port Charges Different Port Charges : Different Port Charges Demurrage Charges
Shifting Charges Exchange Control DeclarationForm : Exchange Control DeclarationForm Required to declare to the RBI full value of shipment.
Required to submit an undertaking about the export proceeds.
Declaration made in the prescribed EXCHANGE CONTROL DECLARATION FORMS, these forms are known as GR/SDF/PP/SOFTEX forms. WHEN SHOULD BE USED? : WHEN SHOULD BE USED? GR/SDF Forms incase of export of goods & software in physical form.
GR used incase of manual processing & SDF used incase of computerized processing.
PP Form incase of export of goods by post.
SOFTEX Form incase of export of online software (i.e. software in non-physical form). EXPORT THROUGH POST PARCEL : EXPORT THROUGH POST PARCEL An important mode of shipment- low volume, high value goods.
Regulated under the Universal Postal Union Parcel Agreement.
Post Parcels for shipment of export goods are sent through Foreign Post Offices.
Sent to their destinations only after clearance given by custom authorities stamp “ Customs Pass”. STEPS TO SEND BY POST : STEPS TO SEND BY POST BOOKING.
MANNER OF ADDRESSING.
Customs Declaration Form (CDF)
PP Form Slide 88: AIRWAY BILL AIRWAY BILL : AIRWAY BILL What is an Airway Bill?
An Airway Bill usually contains the following information:
General description of the nature of the goods.
Particular marks that are necessary for identifying the goods.
The number of packages and the quantity and weight of the goods.
Place of discharge.
A statement that the Warsaw rules will apply to limit the carriers liability for loss of or damage to the goods. Advantages of Air Transport : Advantages of Air Transport Fast movement of goods.
Warehousing costs are reduced to the minimum.
Suitable for transportation of perishable goods.
Risks associated with deterioration and obsolescence of goods is reduced.
Insurance premium is lower
Losses due to rough handling, breakage and pilferage are also reduced to the minimum. Procedure to obtain packing credit. : Procedure to obtain packing credit. Application to bank
Processing of application
Sanctioning of loan Slide 92: Loan agreement.
Disbursement of loan
Maintain books of accounts. Slide 93: Monitoring of accounts
Repayment Thank You!! : Thank You!!