Presented by :

ON‘Comprehensive study of

various documents required in export-import’

AVTEC has a global revenue of over US$50 Million - US$100 Million with interests in major industrial segments including automobile, bearings, powertrain for auto and off highway, paper, cement, building products, electrical products and information technology.

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We shall create a value proposition for our customers, share holders, business partners through becoming first choice supplier in Powertrain and Precision Engineered products & services.

We aim to grow with profitability and continuously improve product quality and services through employee involvement, adoption of best-in-class manufacturing systems and processes.

Mission statement

•Mr. Chandra Kant Birla – CHAIRMAN • Mr. Prabhakar Kadapa -- CEO & MANAGING DIRECTOR•Mr. A. Sankaranarayanan •Mr. Naresh Chandra •Mr. Amal Ganguli •Mr. Haigreve Khaitan•Mr. J. M. Trivedi •Mr. Prabir Talati

AVTEC manufactures Engines, Transmissions and precision components for our customers in the segments given below

Automotive Segment• Passenger Car• Commercial Vehicles

Non Automotive Segment•Mining and Construction Equipment•Material Handling•Oil Field Applications•Wind Mill•Genset Applications

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DOCUMENTATION

Documentation is a general term for a multiplicity of documents in a chosen mix of media and with a certain collection. Purpose of documentation is the use to support a tool or a process.Uses of documentation

•Technical Communication•Legal Writing

OBJECTIVES OF DOCUMENTATION

(i) Reduce non-completion risk. Due to this risk, exporters want to keep title to the goods until they are paid and importers want to wait to pay until they have the goods. (ii) Reduce foreign exchange risk. 

EXPORT DOCUMENTATION Export documentation is a tedious but necessary process that all exporters must pay close attention to, as documentation requirements vary considerably by country, commodity, and situation.

Export documents could be classified into two categories depending upon the specific requirements satisfied by them: (1) Regulatory and (2) Operational.

The invoice and bill of lading are the two documents required for every export shipment.

(a)Invoices : An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer.

Essential Documents

Contd…..TYPES OF INVOICE:-(i)Pro-forma Invoice: A pro-forma invoice is an

invoice sent to the buyer before the shipment, giving the buyer a chance to review the sale terms (quantity of goods, value, specifications) and get an import license, if required in their country.

(ii) Commercial Invoice: A commercial invoice is prepared by the seller/exporter and addressed to the buyer/importer, and is one of the first documents prepared when a transaction has been agreed upon.

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(iii) Consular invoice: A consular invoice is the commercial invoice stamped or notarized by the consulate or embassy of your customer’s country, if required.

(b) Material Handling (i)Packing List: A packing list is prepared by the shipper and is a detailed break down of the items within a shipment. It may also include any “special marks” for identification.

(ii)Dock (or Warehouse) Receipt: The dock or warehouse receipt is issued by a warehouse supervisor or port officer and certifies that the goods have been received by the shipping company.

(c) Bills of Lading (B/L) : A Bill of Lading is issued by the carrier to the shipper for receipt of the goods, and is a contract between the owner of the goods and the carrier to deliver the goods.

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TYPES OF BILLS OF LADING :- (i) Inland Bill of Lading: Issued by the trucking company and/or the railroad line for taking the goods from the exporter’s facility to the port of embarkation or consolidation facility.

(ii) Air Way Bill (AWB): The Air Way Bill is a form of bill of lading used for the air transport of goods.

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(d) Letters of Credit (L/C): A letter of credit is a document issued by a bank committing to pay the seller/exporter a stated amount of money on behalf of the buyer/importer as long as the specific terms and conditions are met.

TYPES OF LETTER OF CREDIT:-(i) Irrevocable : An irrevocable letter of credit can

neither be amended nor cancelled without the agreement of all parties to the credit. All letters of credit are deemed to be irrevocable unless otherwise stated.

Contd…..(ii) Confirmed : A confirmed letter of credit is one in which the advising bank, on the instructions of the issuing bank, has added a confirmation that payment will be made as long as compliant documents are presented. (iii) Standby Letters of Credit : A standby letter of credit is used as support where an alternative, less secure, method of payment has been agreed. (iv) Revolving Letter of Credit : The revolving credit is used for regular shipments of the same commodity to the same importer.

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Certificates (i)Certificate of Origin (C/O): A document prepared by the original manufacturer and certified by a quasi-official authority - such as a Chamber of Commerce - stating the items’ country of origin.

(ii) Certificate of Insurance: This document indicates the type and amount of insurance in force on a particular shipment for loss or damage while in transit.

Contd…..Special Documents (i)Declaration of Dangerous Goods (DGD): A DGD declares the nature and quantity of hazardous materials and reports the proper classification for each item. (ii) Mate Receipt: A mate receipt is a receipt issued by the commanding office of the ship when the cargo is loaded on the ship, and contains information about the name of the vessel, berth, date of shipment, description of packages, marks and number, condition of the cargo at the time of receipt on board the ship etc.

IMPORT DOCUMENTATIONAn essential feature of all import sales transactions is import documentation. There are various categories of documents required in international trade transactions.Instruction Documents(i) Shipping instruction: Where a shipping company has a computerised bill of lading system, it provides pre-printed shipping instruction forms which must be completed by the exporter/freight forwarder.(ii) Bank instruction: When the exporter is selling on the basis of a letter of credit.

All goods declared for consumption must be landed and entered within 7 days after the arrival of the importing ship or within such additional time as the Secretary for Customs may allow. (i) Bill of entry: Goods may not be imported into South Africa unless a bill of entry is submitted to and accepted by the customs authorities. An original of the form, a DA500 is required by Customs. (ii) Special import certificates or permits: Apart from those goods requiring an import permit, a number of products are subject to inspection and/or to the issue of special permits by certain authorities prior to the goods being imported.

Customs Procedure for Imports

BENEFITS OF THE STUDY•Documented Processes As now all the processes are properly documented, so the department can have a fully standardized procedure of doing the things. Now each employee knows there responsibility

•Time Saving The main asset of today’s era is time. How the company is utilizing time of Human Resources, is a critical parameter. Because of unstructured processes earlier there used to be a lot of discrepancies. But now as mapped processes are there so a number of errors are supposed to get prevented, which will save time.

Various programs are imparted that constitutes latest emerging technologies and management practices. At AVTEC they mix and match intensive training with equal thrust on job skills and behavioural development. Group therapies and seminars are organized to encourage professional and keep employee morale running high.

Thank You