Export Documents & Procedure

1. Export Documents & Procedure Prepared By Avani Agrawal

2. Learning • Introduction • Registration Stage • Pre – shipment stage • Shipment stage • Post – shipment stage

3. Registration Stage • Registration of Organization • Opening Bank Account • Obtaining Import Export Code Number (IEC No.) • Obtaining PAN • Obtaining Sales Tax Number • Registration with Export Promotion Council • Registration with ECGC • Registration with other Authorities (FIEO, ITPO, COC)

4. List of EPCs Industry Wise • Agricultural and Processed Food Products Export Development Authority • Apparel Export Promotion Council • Basic Chemicals Pharmaceuticals & Cosmetic Export Promotion Council •  Carpet Export Promotion Council •  Cashew Export Promotion Council of India •  Chemicals and Allied Products Export Promotion Council •  Coffee Board  Rubber Board •  Coir Board Spices Board • Cotton Textiles Export Promotion Council •  Council for Leather Exports •  Engineering Export Promotion Council •  Export Promotion Council for EOUs and SEZ Units •  Electronics & Computer Software Export Promotion Council •  Export Promotion Council for Handicrafts • Gem & Jewellery Export Promotion Council •  Handloom Export Promotion Council •  Indian Silk Export Promotion Council •  Indian Oilseeds & Produce Exporters Association EPC (IOPEA) • Jute Manufacturers Development Council •  Marine Products Export Development Authority •  Project Exports Promotion Council of India •  The Plastics Export Promotion Council •  Powerloom Dev. and Export Promotion Council •  Pharmaceutical Export Promotion Council •  Service Export Promotion Council •  Shellac Export Promotion Council • Sports Goods Export Promotion Council •  Synthetic & Rayon Textiles Export Promotion Council •  Tea Board  Tobcco Board •  Wool and Woollen Export Promotion Council

5. Pre – Shipment Stage • Approaching Foreign Buyer • Inquiry and offer • Confirmation of order • Opening Letter of Credit • Arrangement of pre - shipment Finance • Production or procurement of goods • Packing and Marking • Pre shipment Inspection • Obtaining Insurance Cover • Appointment of C & F Agent

6. Shipment Stage • Reservation of Shipping Space • Container Stuffing • Arrangement of Internal Transportation up to Port of Shipment • Preparation & Processing of Shipping Documents • Custom Clearance • Obtaining Carting Order from the port Trust Authority • Custom Examination & Issue of Let Export order • Obtaining Let Ship Order from the custom preventive officer • Obtaining Mate’s Receipt & Bill of Lading

7. Post - Shipment Stage • Submission of Document by the C & F Agents to Exporters • Shipment Advice to Importer • Presentation of Documents to Bank for Negotiation • Dispatch of Documents • Acceptance of Bill of Exchange • Letter of Indemnity • Realization of Export Proceeds • Processing of GR Form • Realization of Export Incentives

8. Quality Control & Pre – Shipment Inspection • Methods of Quality Control & Pre – Shipment Inspection • Self – Certification • In Process Quality Control • Consignment wise Inspection Units Exempted from the Inspection Procedure Export House, Trading House, EOU, EPZ,

9. Excise Duty Refund • Export Under Rebate • Export Under Bond • Conditions for Central Excise Clearance

10. Procedure for Central Excise Clearance • Application to the Assistant Collectors of Central Excise. • Information to the Range Superintendent • Sealing of Goods • Processing of ARE – 1 forms • Examination of Goods at place of export • Submission of claim • Verification of the Application • Refund of Duty • Cancellation of Documents

11. Realization of Export Incentives • Claim of Duty Drawback • Whom to Apply • When to Apply • Documents to be submitted • Claim of Central Excise Duty • Whom to Apply • When to Apply • Documents to be submitted • Refund of Duty

12. Contd… • Claim of Octroi Refund • Whom to Apply • When to Apply • Documents to be submitted • Refund of Duty

13. Marine Insurance • Perils of Sea Includes:- • Sinking of Ship • Damage to the ship and cargo due to dashing of the waves • Dashing of the ships on the rocks • Fire or explosion on the ship • Spoilage of cargo due to sea water

14. Types Marine Insurance • Time Policy • Voyage Policy • Mixed Policy • Valued Policy • Unvalued Policy • Fleet Policy • Floating Policy • Specific cover Policy • Open cover Policy

15. Export Documentation in India • Export Documentation in India has evolved a great deal of interest since 1990. • Prior to 1990, documentation was manual and it lacked proper co-ordination. • The result was lot of delays and mistakes, rendering the task very clumsy, tiresome, repetitive, and truly frustrating. • India adopted the ADS (Aligned Documentation System) in 1991 which is the Internationally accepted documentation system

16. Contd…. • Proper Documentation will ensure smooth sailing with the requirements of the above agencies and the resulting transaction will be a successful one. • Inaccurate or incomplete documentation will result in serious financial and goodwill losses. • Such losses can be completely avoided by understanding clearly the documentation requirements of all concerned parties and then meticulously planning to get the right documents in the right numbers, at the right places and at the right time.

17. Function of Export Documentation • An attestation of facts, such as a certificate of origin • Evidence of the terms and conditions of a contract if carriage, such as in the case of an air way bill • Evidence of ownership or title to goods, such as in the case of a bill of lading • A promissory note; that is, a promise to pay • A demand for payment, as with a bill of exchange • A declaration of liability, such as with a customs bill of entry • A receipt for goods received.

18. Classification of Export Documents • Export Documents can be classified into following four categories: (1) Commercial Documents (2) Regulatory Documents (3) Export Assistance Documents (4) Documents Required by Importing Countries (1) Commercial Documents: These documents are used by exporters/importers to discharge their respective legal and other incidental responsibilities under sales contract.

19. Contd…. Commercial documents can be further sub-divided into: (i) Principal Commercial Documents (ii) Auxiliary Commercial Documents (i) Principal Commercial Documents: (a) To effect physical transfer of goods and title of the goods from exporter to the buyer. (b) To realize export sales proceeds.

20. Contd… • Principal Documents include: • Commercial Invoice • Packing list • Certificate of Inspection • Certificate of Insurance/Insurance Policy • Bill of Lading/Airway bill • Certificate of Origin • Bill of Exchange • Shipment Advice

21. Contd… (ii) Auxiliary Commercial Documents: These Documents are required to prepare /procure the principal commercial documents and include: • Proforma Invoice • Shipping Instructions • Insurance Declaration • Intimation for Inspection • Shipping Order • Mates Receipt • Application for Certificate of Origin • Letter to bank for negotiation /collection of documents

22. Contd…. (2) Regulatory Documents: These are prescribed by various Government Departments/Bodies for compliance of formalities under relevant laws • Exchange Control Declaration Form-GR Form • Freight Payment Certificate • Insurance Premium Payment Certificate • ARE I/ARE II Forms • Shipping Bill/Bill of Export • Port Trust Copy of Shipping Bill/Export Application/Dock Challan • Receipt of Payment of Port Charges • Vehicle Ticket.

23. Contd… (3)Export Assistance Documents: These are the documents which are required for claiming assistance under the various export assistance measures as may be in operation from to time. Currently, these refer to drawbacks of central excise and customs duties, packing credit facilities etc (4)Documentation required by Importing Countries: These are the documents which are required by the importer in order to satisfy the requirements of his Government. These include certificates of origin, consular invoice, quality control certificate etc.

24. The benefits of documentation • Information from one person or company to another, and also serves as permanent proof of tasks and actions undertaken throughout the export process. • Documentation is not only required for your own business purposes & that of your business partner, but also to satisfy the customs authorities in both countries and to facilitate the transportation of and payment for goods sold.

25. Contd…. • One value of documentation is that copies can be made and shared with the parties involved in the export process. • Ensure that you make identical copies from an agreed-upon master - it is no use making changes without the other party's agreement and then presenting these as the "latest" copies. • If the documentation is complete, accurate, agreed upon by the parties involved and signed by each of these of these parties (or their representatives), the document will represent a legally binding document.

26. Thank you !