Export import documentation

• 1. What is export? Sale of goods from one country to another against payment in foreign currency in a legal way

2. It should mention Parties: Addresses and Identities Nature of contract: Sales of goods/services, agency/distributorship Date of agreement The contract should state Products name (including its technical name ) Sizes in which it is supplied Standards/specifications according to the buyer or as per the samples approved byhim. Details of specification of sample must be given in the contract Quantity, total value Inspection, Test certification Packing, packaging, labelling Marking Terms of delivery Duty and charges, taxes Period of delivery terms of payment discounts and commisions licences and permits insurance 3. Why do we need documentation? Buyer and sellers are separated by long distances Formal contract ( assigning duties/responsibilities) is necessary Protection of interests of both the parties The operational constraint Claim of export assistance and incentives provided by the government 4. Trade documents may be broadly categorised into 3 heads Commercial documents Legal or Regulatory documents Incentive and Assistance Claim documents 5. Possession of docs imply ownership of goods Docs represent goods shipped by exporter These docs entitle the importer Indicates goods at destination, and Used to compensation by insurance, in theevent of damage or loss 6. Commercial Invoice Certificate of Origin Inspection Certificate Packing list Transportation InsuranceCertificate/Policy Documentation Bill of Exchange- Bill of lading -forwarder Shipment Advice - Airway Bill- Combined transport document 7. DOCS AS PER REQUIREMENT OFDOCUMENTATION AS PERIMPORTING COUNTRYREQUIREMENT OF GOI Export License if necessary Customs Invoice AR4/AR5 Form GSP Certificate of origin Pre-shipment InspectionCertificate Export Declaration form GR/PP/VPP/COD/SoftexForm Shipping Bill - customs 8. Application form Shipping Bill duly authenticated by customs Commercial Invoice attested by bank Statementof exports certified by thenegotiating bank Registration cum membership form ofconcerned export promotion council 9. First and the only complete document for ashipment from among the set of commercialdocuments. Serves as a basis for preparation of all otherdocuments CI is needed at both pre-shipment and post-shipment stages for Obtaining Export Inspection Certificate, Clearance from excise and customs Negotiating documents with the bank. 10. CI performs three main functions It is a Document of Content, It is a Bill by exporter, It is a Packing List It also sets forth the terms of shipment and payment and can operate as Certificate of Origin 11. Equivalent to multimodal transportdocument/airway bill/railway/lorry/postparcel/courier receipt These documents state and evidence themode, manner and date of shipment. These docs define the contractual rights andobligations of the parties lawful holders can claim goods at thedestination and at will given by forwarder to exporter 12. It performs 3 functions: An evidence of contract of affreightment between theship owner and the charterer A receipt of goods Document of title:(Order B/L: negotiable doc. andConsignee named/ Straight B/L: non-transferable) 13. Its legally defined as an unconditional orderin writing, addressed by one person toanother, signed by the person giving it,requiring the person to which it is addressedto pay on demand or at a fixed ordeterminable future time a certain sum ofmoney, to or to the order of, a specifiedperson or to bearer. 14. EXPORTER (Drawer) (Payee) 1OFBILL ANGE H EXC 5EXPORTERS BANK IMPORTER CUSTOMS (collecting bank) (Drawee)6 T F EN KINGBILL O NGE YM A PA DERT2 A 3 E X CH UNIMPORTERS BANK(remitting bank) 4DOCS(MASTER/HOUSE AWB) 15. It performs the role of bridging time gap betweenshipment of goods and receipt of sale amount. This is required to be honored either by actualpayment or by an undertaking to make payment at afuture date by the party on whom it is drawn. After payment/undertaking the importers bank willhand over the documents to the importer for takingpossession of goods. Can be either a Sight Draft (for DP Docs AgainstPayment) OR Usance/Term Draft (for DA DocsAgainst Acceptance) 16. Sight Bill of Exchange BILL OF EXCHANGE Bill of exchange forDate Place On demand, Pay this First of Exchange (Second of the same date and tenor being unpaid)to the order of (exporters bank) a sum of .... only for value received vide Airway Bill No./Billof Lading No. dated . and place the same to account. To : Drawee For : Drawer (exporter) Usance Bill of Exchange BILL OF EXCHANGEBill of exchange forDatePlace. Days after date, Pay this First of Exchange (Second of the same date and tenorbeing unpaid) to the order of (exporters bank) a sum of .. only for value received vide AirwayBill No./Bill of Lading No. dated . and place the same to account. To : Drawee For : Drawer (exporter) 17. Lunch time