Export Merchandising and Trade Documentation

(For Garment Units) LECTURE # 3

BY J.N.VOHRA

B.TEXT, M.TECH, F.I.E,C.ENG., M.I.M.A, MPMA

Garment Packing for Exports

Pack according to the instructions of the buyer ◦ The card board specifications of the carton should be as per instructions ◦ The Marking on the Carton as per instructions ◦ Please check; address of the buyer and port of destination ◦ Please check that garments have ben packed as per size and colour assortment given by the buyer

Carton Packing

Double walled corrugated carton suitable for export packing made of kraft board 60x35x35cm

Marking on the Carton (example)

Palletized and Packed cartons

Documents to be ready before shipment is dispatched to the respective ports

Purchase Order Letter of Credit Commercial Invoice Export Packing List Insurance Certificate Inspection Report Certificate of Origin AR-4 Form (for excise clearance) GR Form

Commercial Invoice

A commercial invoice is a bill for the goods from the seller to the buyer. These invoices are often used by governments to determine the true value of goods when assessing customs duties. Governments that use the commercial invoice to control imports will often specify its form, content, and number of copies, language to be used, and other characteristics.

Export Packing List

An export-packing list is considerably more detailed and informative than a standard domestic packing list. It itemizes the material in each individual package and indicates the type of package, such as a box, or carton. It also shows the individual net, legal, tare, and gross weights and measurements for each package (say in metric systems). 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. In addition, foreign customs officials may use the list to check the cargo.

Insurance Certificate: An insurance certificate is used to assure the consignee that insurance is covered against the loss or damage to the cargo during transit.

Inspection certification: An inspection certification is required by some purchasers and countries in order to attest to the specifications of the goods shipped. This is usually performed by a third party and often obtained from independent testing organizations.

Certificate of Origin: A certificate of origin is a document that is required in certain nations. It is a signed statement as to the origin of the export item. Certificate of origin are usually signed through a semi-official organization, such as a local chamber of commerce. This certificate may still be required even if the commercial invoice contains the information.

AR-4 Form

Every manufacturer for clearance of excisable goods files an application AR-4 form for lifting the good from his factory for export, in cases if the good manufactured are excise dutyable. The clearances can be ‘under claim for rebate of duty’. 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.

GR Form

This is a declaration by the exporter in the format prescribed by RBI to be submitted along with the shipping bill to customs. The exporter submits a duplicate of GR form with its bank along with shipping documents for realising the proceeds of the export. The bank endorses the copy after realization of sales proceeds and sends it to RBI.

Shipment Ready for Dispatch to the Respective Ports; ◦ Vis Road Ways ◦ Via Cargo Air Carrier ◦ Vis ships

Truck or Containers Loaded with Cartons moves towards port of dispatch

Shipping Bill

Shipping Bill/ Bill of Export (for Importer it will be Bill of Entry) is the main document required by the Customs Authority for allowing shipment. While filing documents required are: Export licence, AR 4 form, etc. Copy of L/C, Invoice, Packing list, Inspection certificate, GR form, Drawback claim application form,

Types of Shipping Bills

Yellow Shipping Bill in triplicate for the export of dutiable goods. 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. Blue Shipping Bill in 7 copies for exports under the DEPB scheme.

LR/TR (Lorry Receipt/Transport Receipt)

A receipt issued by the transport company/transporter for goods accepted by it for assignment from one place to another; it is also a document of title to the goods. Bilty is the Hindi term for an RR/TR/LR.

Exports through Road ways

Air waybills

A bill of lading that covers both domestic and international flights transporting goods to a specified destination. This is a non-negotiable instrument of air transport that serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and obligates itself to carry the consignment to the airport of destination according to specified conditions. Air waybills handle airfreight shipments.

Cargo Warehouse

Cargo Airplane Flying

Ports in India

India has eleven major sea ports: Kandla, Bombay, Nhava Sheva, Marmagao, New Mangalore, Kochi Calcutta-Haldia, Paradip, Vishakhapatnam, Madras, Tuticorin.

Road Maps and Ports

Containers being Off-Loaded at the Yard

Bill of Lading

A bill of lading is a contract between the owner of the goods and the carrier (as with domestic shipments thru lorry). The document issued on behalf of the carrier describes the kind and quantity of goods being shipped, the shipper, the consignee, the ports of loading and discharge and the carrying vessel. It serves as a document of title, a contract of carriage, and a receipt for goods. The buyer usually needs an original as proof of ownership to take possession of the goods at his end.

Ship Yard

Containers Loaded on the Ship

Ships on way to Port of Dispatch

World Map

Ports of the World

Thank You