import export documents

MEANING

Import –

The term import is derived from the conceptual meaning as to bring in the goods and

services into the port of a country. The buyer of such goods and services is referred to an

"importer" who is based in the country of import whereas the overseas based seller is referred

to as an "exporter". Thus an import is any good (e.g. a commodity) or service brought in

from one country to another country in a legitimate fashion, typically for use in trade. It is a

good that is brought in from another country for sale. Import goods or services are provided

to domestic consumers by foreign producers. An import in the receiving country is an export

to the sending country.

Export –

The term export is derived from the conceptual meaning as to ship the goods and services out

of the port of a country. The seller of such goods and services is referred to as an "exporter"

who is based in the country of export whereas the overseas based buyer is referred to as an

"importer". In International Trade, "exports" refers to selling goods and services produced in

home country to other markets. Any good or commodity, transported from one country to

another country in a legitimate fashion, typically for use in trade. Export goods or services

are provided to foreign consumers by domestic producers.

http://en.wikipedia.org/wiki/Production_theory_basics

http://en.wikipedia.org/wiki/Consumer

http://en.wikipedia.org/wiki/Trade

http://en.wikipedia.org/wiki/Transport

http://en.wikipedia.org/wiki/Commodity

http://en.wikipedia.org/wiki/Good_(economics_and_accounting)

http://en.wikipedia.org/wiki/Export

http://en.wikipedia.org/wiki/Production,_costs,_and_pricing

http://en.wikipedia.org/wiki/Consumer

http://en.wikipedia.org/wiki/Trade

http://en.wikipedia.org/wiki/Service_(economics)

http://en.wikipedia.org/wiki/Commodity

http://en.wikipedia.org/wiki/Good_(economics_and_accounting)

PROCEDURES FOR IMPORT AND EXPORT

General Provisions about Customs Procedures

Basic document is ‘Entry’

Entry’ in relation to goods means entry made in Bill of Entry, Shipping Bill or Bill of Export. In case of import by post, label or declaration accompanying goods is ‘entry’

Loading and unloading at specified places only

Imported goods can be unloaded only at specified places. Goods can be exported only from specified places.

Computerisation of customs procedures

Customs procedures are largely computerised. Most of documents have to be e-filed.

Amendment to documents

Documents submitted to customs can be amended with permission In case of bill of entry, shipping bill or bill of export, it can be amended after clearance only on the basis of documentary evidence which was in existence at the time the goods were cleared, warehoused or exported, and not on basis of any subsequent document. [proviso to section 149].

ICD and CFS Imported and export goods are usually handled in containers. These can be stored in Inland Container Depot (ICD) or Container Freight Station (CFS). They function like dry port for handling and temporary storage of imported/export goods and empty containers.

Boat Notes ‘Boat Notes’ are used for transferring small cargo from ship to shore, or from shore to ship, without berthing the ship.

Transshipment of goods

Goods can be transshipped from one conveyance to other after following required procedure. Such transhipment may be to any major port or airport in India. The goods can be transshipped to any other customs station in India if Customs Officer is satisfied that the goods are bona fide intended for transhipment to any customs station. The facility is available at all customs ports and Inland Container Depots (ICDs).

Coastal goods Procedures have been prescribed for coastal goods, even if there is neither import nor export.

Import Procedures

e-filing of documents Goods should arrive at customs port/airport only. Most of customs procedures are computerised. E-filing of documents is required.

Import manifest or Import Report

‘Person in charge of conveyance’ is required to submit Import Manifest or Import Report.

Entry Inwards Goods can be unloaded only after grant of ‘Entry Inwards’.

Risk Management System

Self Assessment on basis of ‘Risk Management System’ (RMS) has been introduced in respect of specified goods and importers.

Bill of Entry for home consumption on payment of customs duty

Importer has to submit Bill of Entry giving details of goods being imported, along with required documents. Electronic submission of documents is done in major ports.

White Bill of Entry is for home consumption. Imported goods are cleared on payment of customs duty.

Bill of Entry for warehousing

Yellow Bill of Entry is for warehousing. It is also termed as ‘into bond Bill of Entry’ as bond is executed. Duty is not paid and imported goods are transferred to warehouse where these are stored. Green Bill of Entry is for clearance from warehouse on payment of customs duty. It is for ex-bond clearance.

Noting, examination and assessment

Bill of Entry is noted, Goods are assessed to duty, examined and pre-audit is carried out. Customs duty is paid after assessment.

Bond Bond is executed if required if assessment is provisional (PD bond) or concessional rate of customs duty is subject to certain post import conditions.

Out of customs charge order

Goods can be cleared outside port after ‘Out of Customs Charge’ order is issued by customs officer. After that, port dues, demurrage and other charges are paid and goods are cleared.

Demurrage if clearance from port delayed

Demurrage is payable if goods are not cleared from port/airport within three days. Goods can be disposed of if not cleared from port within 30 days.

Export Procedures

Entry Outward Loading in conveyance can start after ‘Entry Outward’ is given by customs officer.

Export manifest/Export report

Person in charge of conveyance is required to submit ‘Export Manifest’ or ‘Export Report’.

Registration with DGFT and EPC

Exporter has to be obtain IEC number from DGFT is advance. He should be registered with Export Promotion Council if he intends to claim export benefits.

Third party exports Export can be by manufacturer himself or third party (i.e. by exporter on behalf of another). Merchant exporter means a person engaged in trading activity and exporting or intending to export goods [para 9.40 of FTP]

Registration of documents under Export Promotion Scheme

Advance authorisation, DEPB etc. should be registered if exports are under Export Promotion Scheme.

Shipping Mill Export is required to submit Shipping Bill with required documents for obtaining permission to export. There are five forms : (a) Shipping Bill for export of goods under claim for duty drawback - these should be in Green colour (b) Shipping Bill for export of dutiable goods - this should be yellow colour (c) Shipping bill for export of duty free goods - it should be white colour (d) shipping bill for export of duty free goods ex-bond - i.e. from bonded store room - it should be pink colour (e) Shipping Bill for export under DEPB scheme - Blue colour.

FEMA formalities GR/SDF/Softex form (under FEMA) is required to be submitted.

Noting, assessment, examination

The shipping bill is noted, goods are assessed and examined. Export duty is paid, if applicable.

Certification of documents for export incentives

If export is under export incentives, relevant documents are checked and certified. Then proof of export is obtained on ARE-1.

Let export order Conveyance can leave only after ‘Let Export’ order is issued.

PROCEDURE

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EXPORTER IMPORTER

IMPORTERS BANKEXPORTER’S BANK

IMPORTER WAREHOUSE

MANUFACTURING

CUSTOMERS

SHIP

SECURE TRANSPORTATION

AND DOCUMENTATION

52

1

EXPORT DOCUMENTS

Introduction

An exporter without any commercial contract is completely exposed of foreign exchange

risks that arises due to the probability of an adverse change in exchange rates. Therefore, it

becomes important for the exporter to gain some knowledge about the foreign exchange rates,

quoting of exchange rates and various factors determining the exchange rates. In this section,

we have discussed various topics related to foreign exchange rates in detail.

Export from India required special document depending upon the type of product and

destination to be exported. Export Documents not only gives detail about the product and its

destination port but are also used for the purpose of taxation and quality control inspection

certification.

The General Form for Export Documentation

A bill of lading is a document and also a contract between the owner of the export goods and

the carrier. This form is also the owner’s receipt of the goods. It is imperative that the owner

keeps a copy of this form in order to claim the goods. A bill of lading can be negotiable or

non-negotiable.

A commercial invoice is an export document that is required by customs in most countries

that determines how much the cargo is worth. Customs use this invoice to assess duties and

tax. A commercial invoice must identify the buyer and seller of the export and provide a

complete description of the cargo. It should also including the type of packaging used and the

dates and terms of the sale. There may be other information required depending on the

receiving country.

The export packing list is required documentation for exported goods. This document is a

detailed itemization of the goods contained within. It should be attached to the outside of the

package and should clearly give the tare weights and gross weights of the package. The

weights should be displayed in both U.S. pounds and metric.

An Export license will often be required for the exportation of products from one country to

another. It is a government document that gives the exporter authorization to make such a

transaction. Yet it is not required for all exports.

Shipping Bill / Bill of Export Shipping Bill/ Bill of Export is the main document required by

the Customs Authority for allowing shipment. A shipping bill is issued by the shipping agent

and represents some kind of certificate for all parties, included ship's owner, seller, buyer and

some other parties. For each one represents a kind of certificate document.

Documents Required for Post Parcel Customs Clearance

In case of Post Parcel, no Shipping Bill is required. The relevant documents are mentioned

below:

Customs Declaration Form - It is prescribed by the Universal Postal Union (UPU) and

international apex body coordinating activities of national postal administration. It is known

by the code number CP2/ CP3 and to be prepared in quadruplicate, signed by the sender.

Despatch Note- It is filled by the exporter to specify the action to be taken by the postal

department at the destination in case the address is non-traceable or the parcel is refused to be

accepted.

Commercial Invoice - Issued by the exporter for the full realisable amount of goods as per

trade term.

Consular Invoice - Mainly needed for the countries like Kenya, Uganda, Tanzania,

Mauritius, New Zealand, Burma, Iraq, Ausatralia, Fiji, Cyprus, Nigeria, Ghana, Zanzibar etc.

It is prepared in the prescribed format and is signed/ certified by the counsel of the importing

country located in the country of export.

Customs Invoice - Mainly needed for the countries like USA, Canada, etc. It is prepared on a

special form being presented by the Customs authorities of the importing country. It

facilitates entry of goods in the importing country at preferential tariff rate.

Legalised / Visaed Invoice - This shows the seller's genuineness before the appropriate

consulate or chamber or commerce/ embassy.

Certified Invoice - It is required when the exporter needs to certify on the invoice that the

goods are of a particular origin or manufactured/ packed at a particular place and in

accordance with specific contract. Sight Draft and Usance Draft are available for this. Sight

Draft is required when the exporter expects immediate payment and Usance Draft is required

for credit delivery.

Packing List - It shows the details of goods contained in each parcel / shipment.

Certificate of Inspection – It is a type of document describing the condition of goods and

confirming that they have been inspected.

Black List Certificate - It is required for countries which have strained political relation. It

certifies that the ship or the aircraft carrying the goods has not touched those country(s).

Manufacturer's Certificate - It is required in addition to the Certificate of Origin for few

countries to show that the goods shipped have actually been manufactured and is available.

Certificate of Chemical Analysis - It is required to ensure the quality and grade of certain

items such as metallic ores, pigments, etc.

Certificate of Shipment - It signifies that a certain lot of goods have been shipped.

Health/ Veterinary/ Sanitary Certification - Required for export of foodstuffs, marine

products, hides, livestock etc.

Certificate of Conditioning - It is issued by the competent office to certify compliance of

humidity factor, dry weight, etc.

Antiquity Measurement – It is issued by Archaeological Survey of India in case of antiques.

Shipping Order - Issued by the Shipping (Conference) Line which intimates the exporter

about the reservation of space of shipment of cargo through the specific vessel from a

specified port and on a specified date.

Cart/ Lorry Ticket - It is prepared for admittance of the cargo through the port gate and

includes the shipper's name, cart/ lorry No., marks on packages, quantity, etc.

Shut Out Advice - It is a statement of packages which are shut out by a ship and is prepared

by the concerned shed and is sent to the exporter.

COMMON EXPORT DOCUMENTS

To be able to export goods into other countries, exporters are required to have specific export

documentation. This documentation will vary based on the government from which it is

being shipped and the receiving governments regulations.

Here are some of the most common

documents required for export

documentation.

This is a general form that has been adapted

by the airline industry and is a non-

negotiable form meaning that the document

cannot be transferred to another party.

The Section covers to documents that are

commonly used in exporting, but specific

requirements vary by destination and

product. It is divided in the following sections: common export-related documents,

certificates of origin, other certificates for shipments of specific goods, Export licenses and

Temporary shipment documents. For assistance with country-specific documentation

requirements, please contact the Trade Information Center at 1-800-USA-TRADE.

Common Export Documents

Certificates of Origin

Other Certificates for Shipments of Specific Goods

Export Licenses

Other Export Related Documents

Temporary Shipments

Common Export Documents

Airway Bill

Air freight shipments require Airway bills, which can never be made in negotiable form

(see sample). Airway bills are shipper-specific (i.e. USPS, Fed-Ex,UPS, DHL, etc).

Bill of Lading

A contract between the owner of the goods and the carrier (as with domestic shipments). For

vessels, there are two types: a straight bill of lading, which is non-negotiable, and a

negotiable or shipper's order bill of lading. The latter can be bought, sold, or traded while the

goods are in transit. The customer usually needs an original as proof of ownership to take

possession of the goods (see Sample Short Form Bill of Lading and Sample Liner Bill of

Lading).

Commercial Invoice

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, number of copies, language to be used, and other characteristics (see Sample).

Export Packing List

Considerably more detailed and informative than a standard domestic packing list, it lists

seller, buyer, shipper, invoice number, date of shipment, mode of transport, carrier, and

itemizes quantity, description, the type of package, such as a box, crate, drum, or carton, the

quantity of packages, total net and gross weight (in kilograms), package marks, and

dimensions, if appropriate. Both commercial stationers and freight forwarders carry packing

list forms. A packing list may serve as conforming document. It is not a substitute for a

commercial invoice.

Electronic Export Information Form (Shippers Export Declaration)

The EEI is the most common of all export documents. Required for shipments above $2,500*

and for shipments of any value requiring an export license. SED has to be electronically filed

via AES Direct (free service from Census and Customs) online system.

CERTIFICATES OF ORGIN

Generic Certificate of Origin

The Certificate of Origin (CO) is required by some countries for all or only certain products.

In many cases, a statement of origin printed on company letterhead will suffice (download

generic certificate or see sample with explanation). The exporter should verify whether a CO

is required with the buyer and/or an experienced shipper/freight forwarder or the Trade

Information center.

Note: Some countries (i.e. Middle East) require that certificate of origin be notarized,

certified by local chamber of commerce and legalized by the commercial section of the

consulate of the destination country.

For textile products, an importing country may require a certificate of origin issued by the

manufacturer. The number of required copies and language may vary from country to

country.

Certificate of Origin for claiming benefits under Free Trade Agreements

Special certificates may be required for countries with which the United States has free trade

agreements (FTAs).Some certificate of origin including those required by the North

American Free Trade Agreement (NAFTA), and the FTA’s with Israel and Jordan, are

prepared by the exporter. Others including those required by the FTA’s with Australia,

CAFTA countries, Chile and Morocco, are importer’s responsibility). Click on a specific

country below to learn details on how to document origin.

Australia (CO samples)

Bahrain (importer to check with Govt. of Bahrain on format/information)

CAFTA (Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras CO sample)

Chile (CO sample)

Israel (sample Note: Green form needs to be purchased from Vendor or US-Israel Chamber

of Commerce or a publishing house )

Jordan (notarized generic certificate of origin required)

Morocco (importer makes a claim on the basis of supporting evidence)

NAFTA no certificate of origin is required. However, the importer is required to produce the

necessary permits together with an invoice, at the time of cargo clearance.

OTHER CERTIFICATES FOR SHIPMENTS OF SPECIFIC GOODS

ATA CARNET/Temporary shipment certificate

An ATA Carnet a. k. a. "Merchandise Passport" is a document that facilitates the temporary

importation of products into foreign countries by eliminating tariffs and value-added taxes

(VAT) or the posting of a security deposit normally required at the time of

importation. Apply for an ATA Carnet.

Certificate of Analysis:

A certificate of analysis is required for seeds, grain, health foods, dietary supplements, fruits

and vegetables, and pharmaceutical products.

Certificate of Free Sale

Certificate of free sale may be issued for biologics, food, drugs, medical devices and

veterinary medicine. More information is available from the Food and Drug Administration.

Health authorities in some states as well as some trade associations also issue Certificates of

Free Sale.

Dangerous Goods Certificate

Exports submitted for handling by air carriers and air freight forwarders classified as

dangerous goods need to be accompanied by the Shipper’s Declaration for Dangerous Goods

(sample) required by the International Air Transport Association (IATA). The exporter is

responsible for accuracy of the form and ensuring that requirements related to packaging,

marking, and other required information by IATA have been met.

For shipment of dangerous goods it is critical to identify goods by proper name, comply with

packaging and labeling requirements (they vary depending upon type of product shipper and

country shipped to). More information on labeling/regulations is available from

the International Air Transportation Association or Department of Transportation -

HAZMAT websites.

Fisheries Certificate

The National Marine Fisheries Service conducts inspections and analyses of fishery

commodities for export.

Fumigation Certificate

The Fumigation Certificate provides evidence of the fumigation of exported goods (esp.

agricultural products, used clothing, etc). This form assists in quarantine clearance of any

goods of plant or animal origin. The seller to fumigate commodity at their expense a

maximum of fifteen (15) days prior to loading.

Halal Certificate

Required by most countries in the Middle East, this certificate states that the fresh or frozen

meat or poultry products were slaughtered in accordance with Islamic law. Certification by an

appropriate chamber and legalization by the consulate of the destination country is usually

required.

Health Certificate

For shipment of live animals and animal products (processed foodstuffs, poultry, meat, fish

seafood, dairy products, and eggs and egg products). Note: Some countries require that health

certificates be notarized or certified by a chamber and legalized by a consulate. Health

certificates are issued by the U.S. Department of Agriculture’s Animal and Plant Health

Inspection Service (APHIS).

Ingredients Certificate

A certificate of ingredients may be requested for food products with labels that are inadequate

or incomplete. The certificate may be issued by the manufacturer and must give a description

of the product, contents and percentage of each ingredient, chemical data, microbiological

standards, storage instructions, shelf life, and date of manufacture. If animal fats are used, the

certificate must state the type of fat used and that the product contains no pork, artificial pork

flavor, or pork fat. All foodstuffs are subject to analysis by Ministry of Health laboratories to

establish their fitness for use.

Inspection Certificate

Weight and Quality certificates should be provided in accordance with governing

USDA/GIPSA regulations for loading at port and loading at source/mill site as appropriate. A

certificate of origin certified by local chamber of commerce at load port and a Phytosanitary

certificate issued by APHIS/USDA and Fumigation certificate are to be provided to buyer.

Costs of all inspection, certificates/ documents at the load port are usually the responsibility

of the seller.

Insurance Certificate

Used to assure the consignee that insurance will cover the loss of or damage to the cargo

during transit (Sample). These can be obtained from your freight forwarder or publishing

house. Note: an airway bill can serve as an insurance certificate for a shipment by air. Some

countries may require certification or notification.

Phytosanitary Certificate

All shipments of fresh fruits and vegetables, seeds, nuts, flour, rice, grains, lumber, plants,

and plant materials require a federal phytosanitary certificate. The certificate must verify that

the product is free from specified epidemics and/or agricultural diseases. Additional

information and forms are available from Animal and Plant Health Inspection

Service (APHIS).

Radiation Certificate

Some counties including Saudi Arabia may require this certificate for some plant and animal

imports. The certificate is statement that the products are not contaminated by radioactivity.

Steamship or Airline Company Certificate

A declaration attached to a bill of lading or airway bill stating that the shipper will not stop at

an unscheduled port, attesting to the accuracy of the shipping route and providing other

shipping information such as name of vessel/plane, nationality of vessel/plane, owner of

vessel/plane, names of ports of call including port of leading and discharge.

Other (product-specific) certificates

Shaving brushes and articles made of raw hair must be accompanied by a recognized official

certificate showing the consignment to be free from anthrax germs. Used clothing requires a

disinfection certificate. Grain requires a fumigation certificate, and grain and seeds require a

certificate of weight. Many countries in the Middle East require special certificates for

imports of animal fodder additives, livestock, pets, and horses.

Weight certificate

Certificate of weight is a document issued by customs, certifying gross weight of the

exported goods.

EXPORT LICENSES

Export license is a government document that authorizes the export of specific goods in

specific quantities to a particular destination. This document may be required for most or all

exports to some countries or for other countries only under special circumstances. Examples

of export license certificates include those issued by the the Department of

Commerce’s Bureau of Industry and Security (dual use articles), the State Department’s

Directorate of Defense Trade Controls (defense articles), the Nuclear Regulatory

Commission (nuclear materials), and the US Drug Enforcement Administration (controlled

substances and precursor chemicals).

Destination Control Statement

Destination Control Statement (DCS) is required for exports from United States for items on

the Commerce Control List that are outside of EAR99 (products for which no license is

required). A DCS appears on the commercial invoice, ocean bill of lading or Airway bill to

notify the carrier and all foreign parties that the item can be exported only to certain

destinations.

OTHER EXPORT RELATED DOCUMENTS

Consular Invoice

Required in some countries, it describes the shipment of goods and shows information such

as the consignor, consignee, and value of the shipment. If required, copies are available from

the destination country's Embassy or Consulate in the U.S.

Dock Receipt and Warehouse Receipt

Used to transfer accountability when the export item is moved by the domestic carrier to the

port of embarkation and left with the ship line for export.

Import License

Import licenses are the responsibility of the importer and vary depending upon destination

and product. However, including a copy of an import license with the rest of your

documentation may in some cases help avoid problems with customs in the destination

country.

ISPM 15 (Wood Packaging) Marking

The International Standards for Phytosanitary Measures Guidelines for Regulating Wood

Packaging Material in International Trade (ISPM15) is one of several International Standards

for Phytosanitary Measures adopted by the International Plant Protection Convention (IPPC).

The IPPC is an international treaty to secure action to prevent the spread and introduction of

pests of plants and plant products, and to promote appropriate measures for their control..

Pre-shipment Inspections

The governments of a number of countries have contracted with international inspection

companies to verify the quantity, quality, and price of shipments imported into their

countries. The purpose of such inspections is to ensure that the price charged by the exporter

reflects the true value of the goods, to prevent substandard goods from entering the country,

and to deflect attempts to avoid payment of customs duties. Requirements for pre-shipment

inspection are normally spelled out in letter-of-credit or other documentary requirements.

Inspections companies include Bureau Veritas, SGS and Intertek. Some countries require pre-

shipment inspection certificates for shipments of used merchandise.

Shippers Letter of Instruction

Issued by the carrier or the forwarder includes shipping instructions for air or ocean shipment

(sample)

IMPORT DOCUMENTS

Import documentation depends on which country is doing the exporting and importing.

However, there are some common forms needed for most imports .Purchase orders ensure

that the import is valid. Purchase orders can also be used in the place of a letter of credit

although this is not advised. Purchase order funding is a short-term loan that gives funds to a

person expecting import goods that have been pre-sold. These loans however, depend on

credibility and possibly the credit rating of the importer.

A letter of credit may be needed for making payments on the imported goods. The letter of

credit is a crucial part of import documentation as it is a guarantee that the importer’s

financial institution will pay for the goods. Without this, the exporter would have very little

security over the goods being paid by the importer. It would be unwise to send a shipment

without a letter of credit (L/C).

Shipment documents such as a bill of lading for sea shipments or an airway bill for freight

shipments are needed. These documents provide proof that the goods have actually been sent

by the exporter. These forms give evidence that a valid contract of shipment has been made.

Although these documents are generally non-negotiable, negotiable bill of lading forms can

be purchases.

The aspects of the documentation that is required to be submitted to customs at the time of

assessment.

Routine Shipments

1. Airway Bill (A.W.B).

2. Cargo Arrival Notice (C.A.N).

3. Letter of Authority, in favour of INTERPORT CLEARING SERVICES for collection

of documents / Delivery Order (Take Prints).

4. Bank Delivery Order - in case A.W.B / C.A.N is in favour of the Bank.

5. Commercial Invoice (duly signed)

6. Packing List.

7. Indent / Proforma Inv. / Purchase Order (w.r.t. the document referred to in the invoice.)

8. Catalogue / Drawing / Tech. Literature.

9. Copy of L/ C.

10. Insurance Certificate or Insurance Premium Memo (Required only if terms are C & F /

F.O.B).

11. Certificate of Origin.

12. Import and GATT declaration forms duly filled and signed (Take Print).

13. I.E.C. Code No. ( D.G.F.T. has now issued P.A.N based certificates)

14. Income Tax P.A.N No.

15. Octroi 'N' forms. (Take Print).

(a) 'N' Form.

(b) 'N' Form Undertaking.

16. Factory licence / Shop and Est. Certificate / Sales Tax regn. For Octroi 'N' form

registration.

17. Freight Certificate (If freight Payable in India).

18. Modvat declaration (If applicable).

19. Original documents (Bank attested).

20. Blank letterheads.

The above listed documents are required in the normal course of clearance to ensure smooth

and quick clearance of Cargo. In case the customs officer has any doubt, they can ask for any

other papers, which on demand will be called for from the importers.

With regards to certain categories of Imports related to certain schemes or for different nature

of products, the customs department will insist on certain additional documents during

assessment of the Bill of Entry. These are the various documents required for the various

products, different schemes, or the different modes that they are being imported.

Import documents

The obligation to submit to customs documents covering imported goods

An importer shall submit to customs authorities import documents before imported goods are

removed from storage at the transporter, placed in abonded warehouse or removed from a

bonded warehouse or a free zone for disposal domestically; the documents shall be submitted

to customs no later than 3 months from the date of arrival of the vessel which transported the

goods to the country.

Import documents shall be submitted to the director of customs in the customs district where

the goods are unloaded from the vessel, unless the goods are transported undeclared to

another customs district and arrangements are made for customs treatment there.

Documents that shall be submitted

The following documents shall be submitted with an import declaration, as far as applicable:

An invoice

a bill of lading or a transport document issued in connection with the transport of the goods;

however when there is submitted a bill covering freight charges or a notice from the

transporter to the consignee concerning a consignment of goods, and these documents contain

the same information as specified in regular bills of lading, a bill of lading need not be

submitted unless specially requested ,a certificate of origin when preferential customs

treatment is requested in accordance with international agreements to which Iceland is a

party, unless a declaration of origin has been entered on the invoice,

other documents concerning the imported goods which are of relevance to their customs

treatment, e.g. an import license when required, a confirmation of an authorization for special

customs treatment when such is the case, or other certificates required in special

circumstances.

Invoices

Invoices shall contain the following information:

name and address of the seller (consignor),

name and address of the buyer (consignee),

place and date of issue,

when the sale took place,

number of pieces, type of packing, weight, marks and numbers,

the goods contained in a consignment, type, make and quantity (number, weigh tor

measurements, as the case may be),

the selling price of individual articles and the currency in which the price is specified,

terms of payment, payment conditions and delivery conditions, discounts and other

deductions and the reasons for granting such discounts or making such deductions.

An original or a copy of the documents listed above may be submitted to customs, provided

that international agreements to which Iceland is a party do not stipulate otherwise

An importer may submit such import documents which he has received in other forms than in

writing, for example by computer media or telecommunications.

If customs authorities deem it necessary, they can always stipulate that an importer must

submit an original of mentioned documents.

import documentation: Certificates of Origin one of the vital documents for enabling

the goods to be imported

Certificates of origin are vital because many countries will not accept the importation of

goods from specific countries or they impose tariffs that may apply for certain types of goods.

The certificate of origin is signed by a designated authority and enables the goods to be

imported.

Inspection certificates may also be required import documentation. If the importer requests

that an inspection be made prior to the goods shipping, then this import documentation is

imperative to ensure that the goods will be accepted upon arrival.

A packing list is an inventory of all the packages and the contents of each package. It is

imperative for this piece of import documentation to be accurate. Any deviation from the

packing list can cause customs to reject and confiscate the shipment.

An Invoice is the most critical part of Import documentation for accepting shipments

The invoice is also a crucial document that needs to be accurate. This is by far, the most

critical import documentation needed for accepting shipments. A complete summary of the

goods should be made part of the invoice.

Although these are the most common types of import documentation needed, there may be

other documents required which varies from country to country. When importing food and

animals, some countries have strict laws governing their acceptance. You may also need a

permit for these types of products.

It is imperative to understand what each country requires before shipping or receiving out of

country goods. Having correct and accurate import documentation will allow the transition of

the imported goods to be a smooth process. Documentation is the one of the most important

parts of international trade as it is closely monitored. Any deviation from the required

paperwork can be disastrous for the importing or exporting company

In a significant extension of liberalisation schemes, which the government has been following

over the past one year, government of India have simplified and rationalised customs laws

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and procedures as pert of the liberalised economic, industria land trade policies of the

government in June 1992.

The following is the gist of official announcement on simplification of customs rules and

procedures, both for goods and passengers.

Self- assessment of import document by which importer of proven identity with

unblemished record of past conduct to self-assess the goods, determine duty liability

and disburse the duty.

This is applicable to government departments and undertakings.- Any breach of trust

to attract penalty.

Green channel for clearance of cargo under which cargo imported by persons

of proven identity with unblemished record as well as private sector units to be

cleared without scrutiny.

Only 10 percent consignments to be selected at random for physical verification.

Chemical test of samples to be extended to other institutes and laboratories in view of

the congestion in the central revenues control laboratory.

The powers of assistant collectors and deputy collectors enhanced. Export documents

in certain prescribed categories not required to be put up to assistant collector.

Import document up to a value of rupees one lakh to be assessed by the appraisers.

Greater facility to imports through international courier service to be provided. The

level of duty cut and value up which the articles to e imported through courier raised.

Bonafide commercial samples restricted to Rs. 200 duty free imports allowed up to

Rs. 1300

Passenger clearance rules simplified and inconvenience and irritants eliminated

.Duty-free allowance to passengers enhanced from Rs 2000 to Rs 3000. This includes

those arriving from Sri Lanka and Maldives provided their stay abroad is more than

three days

MAJOR CONCESSIONS IN CUSTOMS DUTY

In further bid to boost exports and bring tariffs down to international levels, the government

of India have announced major concessions in customs duty for capital goods and their

components. The first notification prescribes a concessional rate of customs duty of 25 per

cent ad valorem or 15 per cent ad valorem on capital goods imported under the export

promotion capital goods (EPCG) scheme, subject to specified conditions

The second notification prescribes customs duty at a concessional rate of 15 per cent ad

valorem on components imported for the manufacture of capital goods to be supplied to the

manufactures- exporters under the EPCG scheme, subject to specified conditions. The third

notification fully exempts capital goods and components imported under the scheme from

auxiliary duty to customs.According to the first notification, an importer undertaking an

export obligation equivalent to three times the CIF value of the capital goods over a period of

four years would attract customs duty at the rate of 25 per cent ad valorem. Imports

undertaking an export obligation equivalent to four times the CIF value of the capital goods

over a period of five years would have to pay customs duty at the rate of 15 per cent ad

valorem. Capital gods include plant, machinery, equipment or accessories required by an

importer for manufacture of goods and also machinery for packing goods, testing equipment

and equipment required for research and development activity .The second notification

prescribes a concessional rate of customs duty of 15 per cent ad valorem on components

imported for the manufacture of capital goods. All such imports of capital goods and

components have also been fully exempted from the additional customs duties

IMPORT EXPORT DOCUMENTS

The Import Export documents that

accompany all import export items are an

integral part of all import export

activities.Given that the world is now a global

village there’s hardly anything that doesn’t

move between borders be it books, foodstuffs,

white goods and even cars. Importing and

exporting are routine activities for many

businesses, and the reason for being for others. It is almost certain that you’ve been involved

in import export at some level in your business, even if it’s just the products you need to use

in your business. But if you are toying with the idea of getting more serious about import

export, you need to learn about the import export documents you will need to be familiar

with.

The Importance of Import Export Documents

A common adage is that importing and exporting has next to nothing to do with goods and

everything to do with import export documents! It sounds like an exaggeration, but

unfortunately it’s true! The importance of correct paperwork cannot be overstated properly

managing importing exporting. If you’re the type of person who just can’t stand dealing with

paperwork for your import export documents, may we suggest that you hire someone who

can! Documentation is the cornerstone of international trade and the lifeblood of making a

living from it.

Some Variation in the Import Export documents Required

There is generally some variation in the Import Export documents documentations required

for trade from country to country but they’re sure to include the following:

Purchase order - It seems like a business requirement but it may be needed for financing. The

purchaser may need to show the order to his bank to organize a temporary loan or customs

may want to see the paperwork to make sure everything is valid.

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Letter of credit - this is used for making payments for imported goods, once the necessary

import export documents are handed over (see, we told you they were important). A letter of

credit basically says that the importer’s bank guarantees to pay provided all the papers

stipulated in it are in order.

Shipment documents - a bill of lading is needed for sea shipments or an airway bill when

goods are sent by plane, as proof that the goods have been sent by the supplier.

Certificates of origin - Several countries have restrictions on the learn import of goods from

certain other countries, and may apply tariffs to these goods or ban them altogether.

Alternatively, there may be tariff benefits accorded to goods from specific supply sources. In

such cases, an learn export will need to submit a Certificate of Origin, which is endorsed by a

designated regulatory authority.

Quality or inspection certificates - if the buyer specifies an inspection prior to shipment, these

are paramount to making sure the deal is confirmed.

Packing list - The list of all of the cartons within the container and the contents within.

Invoice - The most important document, make sure that a full summary of goods is outlined

and it’s invoiced in the currency of sale.

Others(!) - These are specific requirements, and change from country to country. For

example, Australia has stringent quarantine restrictions governing the trade of food and

animal products. You would need to secure a permit, or subject your goods to an inspection

or quite possibly both.

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COMMON EXPORT IMPORT DOCUMENTS

There are many documents involved in international trade, such as commercial documents, financial documents, transport documents, insurance documents and other international trade related documents. In processing the export consignment, documentation may be executed in up to four contracts: the export sales contract, the contract of carriage, the contract of finance and the contract of cargo insurance. It is therefore important to understand the role of each document and their requirements in the international trade.

A. Commercial Documents

Document Functions Prepared by

Quotation An offer to sell goods and should state clearly the price, details of quality, quantity, trade terms, delivery terms, and payment terms.

Exporter

Sales Contract An agreement between the buyer and the seller stipulating every details of the transaction. It is a legally binding document. It is therefore advisable to seek legal advice before signing the contract.

Exporter and Importer

Pro Forma Invoice

An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, and importation specifications (weight, size and similar characteristics). This is not issued for demanding payment but may be used when applying for an import licence/permit or arranging foreign currency or other funding purposes.

Exporter

Commercial Invoice

It is a formal demand note for payment issued by the exporter to the importer for goods sold under a sales contract. It should give details of the goods sold, payment terms and trade terms. It is also used for the customs clearance of goods and sometimes for foreign exchange purpose by the importer.

Exporter

Packing List A list with detailed packing information of the goods shipped.

Exporter

Inspection Certificate

A report issued by an independent surveyor (inspection company) or the exporter on the specifications of the shipment, including quality, quantity, and/or price, etc; required by certain buyer and countries.

Inspection Company or Exporter

Insurance Policy/ Certificate

An insurance policy is an insurance document evidencing insurance has been taken out on the goods shipped, and it gives full details of the

Insurer or Insurance Agent or