Export procedure flow chart

Prepare a Business Plan

Select a name for organization

Registration under Company Act

Open a bank account

Product selection for Export

Market Research

Product Evaluation

Registration with Director General of Foreign Trade to get IEC number

Registration with the relevant export promotion council Market Identification

Registration with Sales Tax Office

Registration with Export Credit Guarantee Corporation

Registration with relevant Chamber of Commerce to get certificate of origin

Need Analysis

Channel Selection

Agents/Distributors/ Wholesalers/ End User s/ Sales Reps

Identifying the Potential Buyers / Customers

Trade Fairs/Internet/ Personal Visits/Contacts/Agents

Going for procuring orders

Agreeing upon pricing, document ,freight charges, currency ,delivery etc

Signing of contract

Determining the payment terms

Advance Payment/ Letter of Credit (LC) / Open Account Consignment

Importer sends purchase order

Production

Packaging, warehousing

Certificate of quality control

Bank sends docs to importers bank .payment is done

Submission of docs to banks

Transportation Maritime / Air / Road / Rail

Insurance certificate, shipping bill, Mates Receipt, Bills of lading, Airway bill, Packing list , customs invoice etc

Prepare marine, air, and docs

STEPS INVOLVED IN EXPORT TRANSACTION: Step 1

In the case of first time exporters importers ,they need to apply to the Director General of Foreign Trade (DGFT) regional office for getting Importer-Exporter Code (IEC) Number.

Step 2
The exporter has to register with the concerned export promotion council in order to obtain various permissible benefits given by the government. ,they need to get registered with sales tax office, and even Export Credit Guarantee Corporation.

Step 3
The exporter can now go in for procuring orders, by first sending a sample, if required. The importer sends a purchase order once both exporter and importer have agreed upon the terms and conditions of the contract like pricing, documents, freight charges, currency etc.

Step 4
With export order in hand, the exporter starts manufacturing goods or buying them from other manufacturers.

Step 5
The exporter makes arrangements for quality control and obtains a certificate confirming the quality of the goods from inspector of quality control.

Step 6
Exportables are then dispatched to ports/airports for transit.

Step 7
The export firm has to apply to an insurance company for marine/air insurance cover.(The exporter asks the importer to take marine/ air insurance under cost and freight , free on board etc., terms of contract.)

Step 8
The exporter contacts the clearing and forwarding agent (C & F) for storing the goods in warehouses. A document called Shipping Bill, required for allowing shipment by Customs Authority is presented by the forwarding agent.

Step 9
Once the goods are loaded into the ship ,a receipt called Mates Receipt is issued by the captain to the ship superintendent of the port.

Step 10
The superintendent calculates port charges and handover to the exporter /C&F agent.

Step 11
After making the port payments , the C&F agent or exporter gets the Bills of Lading or Airway Bill from the official agent of the shipping company or the airline

Step 12

The exporter applies to the relevant Chamber of Commerce for obtaining Certificate of Origin, stating that the goods originated from India.

Step 13
The exporter sends a set of documents to the importers, stating the date of shipment ,name of vessel ,etc.

Step 14
Within 21 days after shipment the exporter must present all the documents at his bank which scrutinizes these documents against the original letter of credit /purchase order.

Step 15
The exporters bank sends these documents to the importers bank which should make the payment on of before the due date.

EXPORT IMPORT DOCUMENTATION Proforma Invoice Proforma Invoice, as the name suggests ,is a proforma of the invoice. It is prepared by an exporter and sent to the importer for necessary acceptance. It suggests to a buyer what the actual invoice would look like and is sent to him when he is ready to purchase the goods. Packing List This statement gives the packing details of goods in a prescribed format. It is a very useful document for customs at the time of examination and for warehouse keeper of the buyer to maintain a record of inventory and to effect delivery. Commercial Invoice An invoice is very important as it contains the names of the exporter, importer, and the consignee, and the description of goods. It has to be signed by the exporter. Other documents are prepared by deriving information from the invoice. It is required to be presented before different authorities for different purposes. Certificate of Origin This certificate issued by the local Chamber of Commerce indicates that the goods, which are being exported, are actually manufactured in a specific country mentioned therein. It is sent by the exporter to the importer and is useful for the clearance of the goods from the customs authority of the importing country. Generalized System of Preference Certificate of Origin

It indicates that the goods being exported have originated/ manufactured in a particular country . country and is mainly useful for taking advantage of a preferential duty concession ,if available. It is issued by government-authorized agencies like The Directorate General of Foreign Trade and its regional offices, Development Commissioners, Export Promotion Councils etc. Shipping Bill/Bill of Entry It is a requisite for seeking the permission of customs to export goods .It contains a description of export goods by sea/air. It contains a description of export goods, number and kind of packages, shipping marks, and number numbers, value of goods, the name of the vessel, the country of destination ,etc. On the other hand, importers have to submit copies of document called Bill of Entry for customs clearance.Later, a copy has to be given to the bank for verification.

ARE-1 Form This form is an application for the removal of excisable goods from the factory premises for export purposes. The ARE-1 form has multiple copies which are distributed to different authorities, including Customs, Range office of Excise, Refund office of Excise , etc. Exchange Declaration Form (GR/SDF Form) The RBI has prescribed has prescribed a GR form (SDF) , a PP form, and SOFTEX forms to declare the export transactions. The GR form contains : a) Name and address of the exporter and description of goods. b) Name and address of the authorized dealer through whom proceeds of the exports have been or will be realized. c) Details of commission and discount due to foreign agent or buyer. d) The full export value, giving break up of FOB, Freight, Insurance, Discount , and Commission ,etc. Bills of Exchange It is an instrument in writing, containing an order ,signed by the maker , directing a certain person to pay a certain sum of money only to the order of a person to the bearer of the instrument. It is commonly known as a draft. Inspection Certificate It is required by some importers and countries in order to get the specifications of the goods shipped attested. The attestation is usually performed by a government agency or by independent testing organizations. Bill of Lading

This document is issued by the shipping company acknowledging the receipt of the goods mentioned in the bill, for shipment on board of the vessel. The B/L is the legal document to be referred in case of any dispute over the shipment. It contains : The shipping companys name and address The consignees name and address The port of loading and port of discharge Shipping marks and particulars Number of packages and the goods Gross weight and net weight Freight details and name of the vessel Signature of the shipping companys agent Airway Bill This receipt issued by an airlines company or its agent for carriage of goods is a contract between the owner of the goods and the carrier. It should indicate freight pre-paid or freight to collect. The first three digits of the Airway Bill Number represents the code, which identifies the carrier. Insurance Certificate This document ,obtained from the freight forwarder , is used to assure the consignee that insurance will cover the loss or damage to the cargo during transit (marine/air insurance). Consular Invoice This invoice is needed to be submitted for certification to the embassy of the country concerned .Its main purpose is to enable the importers country to collect accurate and authenticated information about the value, volume, quantity, source etc. of the import for assessing import duties and for statistical purposes. It helps the importer to get goods cleared through customs without any undue delay.

AAYAAT- NIRYAAT FORM Sub Section No I Subject Importer Exporter Code Number (IEC)

II IIA III IIIA IV V VA VB VC VD VI VII VIII IX X XA XB XI XII XIII XIV

Import License for Restricted Items Import Certificate under Indo - US Memorandum Export License for Restricted Items Export License for SCOMET Items Star Export House Certification Advance Authorization / Duty Free Replenishment Certificate Gem Replenishment Authorization Diamond Imprest Authorization DEPB Duty Free Import Authorization (DFIA) EPCG Authorization Served from India Vishesh Krishi And Gram Udyog Yojana (VKGUY) Target Plus Scheme Claiming Duty Drawback on All Industry Rates/Fixation of Drawback Rates/Refund of Terminal Excise Duty Focus Market Scheme Focus Product Scheme Enhancement in CIF/FOB Value or Revalidation or EO extension of Authorization Fixation/Modification of Standard Input Output Norms (SION) Fixation of DEPB Rates/ Fuel Rates Redemption of Advance Authorization