export doccumentation ppt

8/11/2019 Export Doccumentation PPT

1/27

Pres en tat ion o n Exp o rt -Doc um entat ion &

procedure


2/27

Role of Export Documentation

Export documentation plays a vital role ininternational marketing as it facilitates the smoothflow of goods and payments thereof across nationalfrontiers.

Exporters are required to follow certain formalitiesand procedures, using a number of documents.


3/27

Export Documentation in India

Export Documentation in India has evolved a greatdeal of interest since 1990.

The result was lot of delays and mistakes, renderingthe task very clumsy, tiresome, repetitive, and trulyfrustrating.

India adopted the ADS (Aligned DocumentationSystem) in 1991 which is the Internationallyaccepted documentation system


4/27


Export documentation is complex in nature as thenumber of documents to be filled-in is very large.

The number of the concerned authorities to whom

the relevant documents to be submitted.

It is, therefore, advisable to take the help ofshipping and forwarding agents who will obtain and

fill out the documents correctly as well as arrangefor transportation.


5/27


Proper Documentation will ensure smooth sailingwith the requirements of the above agencies andthe resulting transaction will be a successful one.

Inaccurate or incomplete documentation will resultin serious financial and goodwill losses.


6/27


7/27

Classification of Export Documents

Commercial documents can be further sub-dividedinto:

(i) Principal Commercial Documents(ii) Auxiliary Commercial Documents

1) Commercial Documents: These documents areused by exporters/importers to discharge their respectivelegal and other incidental responsibilities under salescontract .


8/27

i) Principal Commercial Documents:These documents serves the following purposes:

(a) To effect physical transfer of goods and title of thegoods from exporter to the buyer.

(b) To realize export sales proceeds.Principal Documents include:

Commercial Invoice (and the invoice prescribed bythe importer) Packing list Certificate of Inspection


9/27

CONTINUED

Certificate of Insurance/Insurance PolicyBill of Lading/Airway bill/Combined TransportDocumentsCertificate of OriginBill of Exchange

Shipment Advice


10/27

CONTINUED

ii) Auxiliary Commercial Documents:These Documents are

required to prepare /procure the principal

commercial documents and include:

Proforma InvoiceShipping InstructionsInsurance Declaration


11/27

Intimation for Inspection Shipping Order Mates Receipt Application for Certificate of Origin Letter to bank for negotiation /collection

of documents

ONTINUE


12/27

CONTINUED

(2) Regulatory Documents:

These are prescribed byvarious Government Departments/Bodies forcompliance of formalities under relevant lawsgoverning export transactions. These include:

(i) Exchange Control Declaration Form-GR Form(ii) Freight Payment Certificate

(iii) Insurance Premium Payment Certificate


13/27

(iv) ARE I/ARE II Forms(v) Shipping Bill/Bill of Export(vi) Port Trust Copy of Shipping Bill/Export

Application/Dock Challan(vii) Receipt of Payment of Port Charges(viii) Vehicle Ticket.

CONTINUED


14/27

CONTINUED

3) Export Assistance Documents :

These are the documentswhich are required for claiming assistance under thevarious export assistance measures as may be inoperation from to time. Currently, these refer todrawbacks of central excise and customs duties, packingcredit facilities etc.


15/27

4) Documentation required by ImportingCountries:

These are the documents which are

required by the importer in order to satisfy therequirements of his Government. These includecertificates of origin, consular invoice, quality controlcertificate etc.

ONTINUE


16/27

Commercial Documents(1) Commercial Invoice :

It is the basic and most important document in an exporttransaction and extreme care has to be taken by theexporter to prepare this document.

This document requires the exporter to submit details suchas:

1. His own details,2. Invoice number with date,3. Details of the consignee and buyer,4. Buyers order number with date,5. Country of origin of the goods,6. Country of final destination,

7. Terms of payment and delivery


17/27

Commercial DocumentsTherefore, a Commercial Invoice contains thecomplete details of the export order.

Normally, the trade practice is to raise and send

a Proforma Invoice to the buyer for his approval,once the order has been finalized.

The Commercial Invoice then becomes easier toprepare on the basis of the approved ProformaInvoice.


18/27


19/27

Commercial Documents

(3) Certificate of Inspection:This is the Certificate

issued by the Export Inspection Agency after it hasconducted the pre-shipment inspection of goods for export

provided the goods fall under the notified category of goodsrequiring compulsory shipment of inspection.

The packing list serves a useful purpose of theexporter while dispatching the consignment as across check of goods sent.


20/27


(4) Certificate of Insurance/Insurance Policy:

Insurance is an important area in the exportbusiness as the stakes are usually very high.

Protection needs to be taken in the form ofinsurance cover for the duration of transit of goodsfrom the exporter to the importer.


21/27

5) Bill of Lading:

This is issued when the goods areshipped using ocean (marine) transport.

When the exporter finally hand over thegoods to the shipping company for loading on

board the ship for transport to their finaldestination, the shipping company issues a set

of Bills of Lading to the exporter.


22/27


(6) Airway Bill:

Airway Bill is a bill of lading when the goods areshipped using air transport.

It is also known as air consignment note orairway bill of lading.


23/27


24/27

Commercial Documents(8) Certificate Of Origin:

This document serves as a proof of the country oforigin of goods for the importer in his country.

It also plays an important part in computing theliability and the rate of import duty in the countryof import.

This certificate declares the details of goods to beshipped and the country where these goods aregrown, manufactured or produced.


25/27

Commercial Documents(9) Bill of Exchange:

Also known as Draft, this is an instruments forpayment realization.

. The exporter is the drawer and he draws (preparesand signs) this unconditional order in writing uponthe importer (drawee) asking him to pay a certain

sum of money either to himself or his nominee(endorsee).


26/27

Commercial Documents(10) Shipping Advice:

The exporter sends this document , called shippingadvice, to the buyer soon after the shipment ismade to provide him all the shipment details.

This serves as an advance intimation of the

shipment and allows the importer to arrange fordelivery of the same.


27/27

THANK YOU