export order
DESCRIPTION
Export order in International BusinessTRANSCRIPT
Export order is a document communicating the
decision of foreign buyer to purchase item from the
exporter.
It would clearly indicate the exporters Performa
invoice or quotation number and its date, including
item, quantity, delivery date, shipping marks,
insurance etc… before acceptance the export order
should scrutinize in all aspects.
Getting export order
Pre-shipment
Shipment
Post - Shipment
Export licensing
Inquiry and Offer
Examination of terms of Export
Contract and confirmation of
Acceptance
Prohibited Items
Restricted Items
Canalized Items
Exporter may receive inquiries
directly:- an inquiry is a request
from the prospective buyer to
keep him informed of the terms
and conditions of sales.
These are some of the conditions which warrant careful examination in particular.. Product description including specification, style, colour, packing conditions etc…Marking and labeling requirements, if anyInspection requirements including type of inspection place of inspection and inspection agencyInsurance requirement including nature of risk to be covered and insurable value
Export agreement, export order and export contract signify the same essences. It indicates the decision of foreign buyer to buy specified items from the Indian exporter at mutually agreed terms and conditions
Pre-shipment finance Production and Procurement of Goods Shipping space Packing and marking Quality control and pre shipment
inspection Central excise clearance Appointment of C and F agent Obtaining insurance cover
If the exporter is in need of finance to execute the export contract he make arrangements for securing necessary fiancé well in advance
After export contract is confirmed exporter has to make some arrangement for manufacture of goods.
If the goods are not to be manufactured and are procured from local markets, action initiated to meet the delivery schedule.
If it is manufactured, the details of inputs required foe production through a document called bill of materials
As soon as the export order confirmed, export contract is received from importer, exporter has to make the necessary arrangement for shipping space
After the goods are ready for shipment they should be properly packed and marked
Goods are not to be shipped unless the quality are not maintained, the exporter’s image gets ruined, further chances of export orders come to a virtual close
As soon as goods are ready for dispatch to the port of shipment, exporter has to apply to the central excise authority for excise clearance of the cargo
As export is a complex subject and require lot of documentation and compliance of procedure it is desirable for the exporter C&F agent who are specialized in this field to guide and arrange shipment of goods at economic cost for the smooth completion of export transaction
Before the goods are exported exporter takes cover for the cargo . The exporter must take appropriate insurance cover for full risk coverage
Documentary examination at customs house
Obtaining carting order and customs physical examination
Loading cargo on vessel
Exchange control formalities
Goods may be shipped out of India only after customs clearance is obtained. The document on which the customs give their clearance for export is shipping bill.
After examination order by the customs is given it is desirable to obtain the carting order from the post trust authority. Then the C&F agent obtain the carting order from the superintendent of post trust authority to move the cargo into the port premises
At the time of shipping the goods on board the preventive officer of customs has the right to inspect the goods before the goods are actually loaded on ship
An exporter of goods has an obligation to recover payment and bring the sale proceeds into the country.
Presentation of document for negotitation
Export incentives
AfterShipment of goods exporter has to
negotiate the document through a bank within a period of 21days from the date of shipment. Submission of relevant document to the bank and the process of obtaining is called Negotiation of documents
Government of India has been providing incentives to exporters as is done in many countries