Export Process

EXPORT PROCESS

EXPORT PROCESS

Export procedure is the method or system or the manner in which various formalities are required to be completed in the case of export trade transaction.

PRELIMINARY STAGE

PRE -SHIPMENT

STAGE

SHIPMENT STAGE

POST –SHIPMENT

STAGE

PRELIMINARY STAGE

Importers – Exporter’s Code (IEC) Number: Any firm exporting or importing goods from / into India will require importer’s exporter’s Code Number. This IEC number is to be filled in the Bill of Entry (in case of import or Shipping Bill (in case of export).

There being no date of expiry, the IEC once allotted is valid till it is revoked.

The IEC number of Oscar Pvt. Ltd. is ___________________

Registration with Export Promotion Councils and other authorities helps in obtaining facilities provided by these organizations.

Oscar is registered with EPC

PRE - SHIPMENT STAGE

GIST

This stage comprises of following sub-stages:

1. Confirmation of order

2. Obtaining letter of credit (If required)

3. Obtaining Pre-shipment finance

4. Production and procurement of goods

5. Packing and marking: The goods must be packed and marked.

ORDER PLACEMENT.

Clients are from majorly gulf countries like U.A.E. Jordan, Dubai, Qatar, Saudi Arabia.

The order is placed via am email or a phone cal.

Majorly clients visit the Mumbai Office and place an order. Orders can also be placed at Dubai Office.

*Minimum Order a Client has to place is

10 dozens, 3 colors and 4 sizes per dozen.

These are done on a smaller level. Such exports are called Brittle Exports.

There are no bulk orders.

PRODUCT

RAW MATERIALS

The fabrics are imported from Surat, Banaras, Chennai.

Hence there is no duty on fabrics.

The only Charges occur are the transportation charges and octoi which is nominal.

INSPECTION

The fabrics are inspected by the workers of Oscar Pvt. Ltd.

Inspection is done on the materials, the length of the fabric, damages, etc.

SAMPLE MANUFACTURING

After inspection, a sample is drawn out from the lot.

Designers design the outfit as per required by the client.

Sketches are made and then the main outfit is tailored.

Now the clients approves colors and designs.

And then the sample is given down to workers to replicate it either hand work or machine.

At this stage advance payment is done.

And the production starts.

PRE-SHIPMENT INSPECTION

There is no such inspection done. If the goods are to be supplied to European Union or U.S.A. the COA certificates are required.

In the gulf countries the COA certificate is only required in Saudi Arabia.

In Saudi a COA certificate approved by Inteltech Solutions is required.

DOCUMENTATIONS

The exporter has to fill up ARE-1 form for removal of excisable goods in five copies: Original Copy – White

Duplicate Copy – Buff

Triplicate Copy – Pink

4th Copy - Green

5th Copy - Blue

6th Copy Yellow (Exporter’s office record copy)

All 5 copies of ARE-1 Forms are presented to the inspector. The 5th copy is retained by Excise Authority. (BLUE).

4th copy is sent by Excise Authority to Chief Account Officer of Central Excise. (GREEN)

The 3rd copy is sent to Maritime Collector of Central Excise at the port of shipment.

The original and duplicate copies are handed back to exporter.

The exporter hands the original and duplicate copy to customs.

The Custom Preventive Officer sends the original to the Maritime Collector.

The duplicate is handed back to exporter or his agent.

With this the Consignment is ready to leave the factory Premises.

SHIPMENT STAGE:

The Commercial Invoice, Packing List and ARE-1 are submitted to the customs.

The customs grants permission by endorsing the documents and caters with a Shipping Bill and Carting Order (The exporter’s agent has to obtain permission to bring the goods inside the docks and store them in proper sheds. It is issued by the Superintendent of Port Trust. )

LET SHIP ORDER, which enables to load the container on the ship (vessel). Now, the container can be cleared at the Port Gate upon submission of the Carting Order and the Shipping Bill along with the endorsed Commercial Invoice, Packing List and ARE-1.

The goods are examined by the Custom Officer, who, then issues “LET EXPORT ORDER”

On the basis of LET EXPORT ORDER, the Custom Preventive Officer issues

Once the container is loaded on the vessel and vessel sails, Mate Receipt is issued by the Mate of the Ship to the exporter confirming the date of sailing which is exchanged with the Bill of Lading issued by the Shipping Company.

POST- SHIPMENT STAGE

1. DESPATCH OF DOCUMENTS BY C&F AGENT TO EXPORTER:

Commercial Invoice (attested)

Shipping Bill (Export Promotion Copy)

Original L/C or Contract order

B/L

GR form (duplicate copy – duly attested)

Form AR-4 (duplicate copy)

2. Shipment Advice to Importer: at this stage exporter intimates importer about the expected date of shipping.

3. Presentation of Documents to Bank: exporter submits all required documents to the bank for further processing and these documents are processed by exporter’s bank to the bank of importer. Importer’s bank intimates the importer about the receipt of the documents. General documents here processed are Commercial Invoice, Custom Invoice (If required), Packing List, Certificate of Origin, bill of exchange, Copy of B/L, Marine Insurance Policy and other documents if required specifically.

4. Realization of exports incentives by Exporter’s bank: (Hand Written)

WHAT DOCS WE WILL NEED

What is needed?

IEC number of Oscar

Registration cum Membership Certificate (RCMC)

COA certificate

COO certificate

Comm. Invoices

ARE form

Insurance Forms.

Airway bill or Bill of LAding

Shipping Bill.