The Government prescribes conditions for exchange control and settlement of bills related to

exports under the authority of the Foreign Exchange Regulation Act, 1973. ith few
exceptions, all exports must be declared on the appropriate form and the exporter's code
number as assigned by the Reserve Bank of India must be shown on the form.

The payment arrangements are letter of credit, sight draft, time draft and shipment on
consignment. The time limit for settlement of export proceeds, that is, the amount
representing the full export value of the goods, is six months. A maximum of 15 months is
allowed for exports to Indian-owned warehouses abroad.

List of Documents

• GR forms (in duplicate) for shipment to all the countries.

• 4 copies of the packing list mentioning the contents, quantity, gross and net weight of
each package.
• 4 copies of invoices which contains all relevant particulars like number of packages,
quantity, unit rate, total f.o.b./ c.i.f. value, correct & full description of goods etc.
• Contract, L/C, Purchase Order of the overseas buyer.
• AR4 (both original and duplicate) and invoice.
• Inspection/ Examination Certificate.

Explanation of Documents and Bills Attached

Letter of credit - this is applied for making payments for imported items, once the required
papers are handed over. A letter of credit mainly says that the importers bank guarantees to
pay provided the entire documents specified in it are in order.

· Purchase order - It appears like a trade requirement but it may be desirable for
financing. The buyer may need to prove the order to his bank to organize a provisional loan
or customs may desire to see the paperwork to make sure the whole thing is legitimate.

· Certificates of origin - Various countries have limitations on the introduction of

commodities from certain other countries, and may apply duty to these commodities or ban
them altogether. On the other hand, there may be tax benefits on items from specific supply
sources. In such cases, an exporter will require to present a Certificate of Origin, which is
certified by a designated regulatory authority.

· Bill of lading - arequired shipment document for sea consignments when commodities
are sent by sea route, as proof that the commodities have been sent by the supplier.

· Airway bill - Same as bill of lading except that it is a document involved in Air
shipment.

· Inspection or Quality credential - if the buyer requires an examination of goods prior

to shipment, these are vital documents to making sure the deal is established in accordance to
the buyer’s requirement.
· Packing List - The List of all of the cardboard boxes within the container and the
contents within the boxes.

· Invoice - The most essential document. Make sure that a complete synopsis of
merchandise is outlined and it is invoiced in the currency of sale.