WHAT IS EXPORT DOCUMENTATION?

The paperwork that is required for an export sales transaction The means by which the shipping process is facilitated and recorded. Documentation is essential for moving goods through the channels of distribution, transferring responsibility or possession, clearing goods through customs, and facilitating payment according to the agreed upon terms.

EXPORT DOCUMENTATION

Export Documents Commercial Documents (16) Principal (8) Auxiliary(8) Regulatory Documents (9)

Commercial Documentation
Principal export documents by customs of trade are required for: - effecting physical transfer of goods - transferring of title of goods from an exporter to an importer - realising export proceeds There are other Auxiliary documents required for preparation and procurement of principal export documents

Principal Export Documents

1. Commercial Invoice 2. Packing List 3. Bill of Lading/Combined Transport Document 4. Certificate of Inspection/Quality control 5. Insurance Certificate/Policy 6. Certificate of Origin 7. Bill of Exchange 8. Shipment Advice

Auxiliary Documents
The eight auxiliary documents are 1. Proforma Invoice

2. Intimation for inspection

3. Shipping instructions 4. Insurance Declaration 5. Shipping order 6. Mate's Receipt

7. Letter to bank of collection/negotiation of

documents 8. Application for certificate of origin

Regulatory Documents
There are nine regulatory documents associated with the preshipment stage of the export transaction: 1. 2. 3. 4. 5. 6. AR4/AR4A Form (prescribed by central excise authorities) Gate pass I/Gate Pass II (prescribed by central excise authorities Shipping Bill/Bill of Export (for Customs) Port Trust Copy of Shipping Bill/ Export Application/Dock Challan Vehicle ticket

Port Port (contd)

Regulatory Documents (contd.)

7. Exchange Control Declaration/GR/PP forms RBI 8. Freight Payment Certificate Steamer Agents 9. Insurance Premium Payment

Certificate

- Insurance Co.

Documents related to goods

1. Invoice 2. Packing list 3. Certificate of origin

Principal Documents

Commercial Invoice
It is the document of account of sale rendered by buyer to the seller It is a prima facie evidence of the contract of sale and purchase Description of merchandise must correspond exactly to the details in the L/C and should be made on the paper of the seller and signed by him It should be made in the name of the opener, unless otherwise stated in L/C

Consular Invoice
Needed mostly by Latin American countries, Kenya, Uganda, Tanzania, Nigeria, Ghana, Mauritius, New Zealand, Australia, Fiji, etc. The importers country require this to collect accurate import details for assessing import duties & for other statistical purposes. Helps importer to get goods customs cleared easily Consular invoice has to be got certified by the embassy of country concerned

Customs Invoice
Required by countries like USA, Canada, etc. for allowing entry of goods at preferential tariff rates Invoice forms are generally available at the consular office of the importing country & should be signed and witnessed after duly filling the same.

Legalised/Visaed Invoice
Required by some countries in Middle East, Latin America, Turkey, Taiwan etc. These invoices are sworn for their genuineness by seller as being correct before appropriate Consulate /Chamber of Commerce /Embassy and bear the stamp and authentication

Certified Invoice
Sometimes exporter is asked to certify on the invoice about the goods being of particular origin or packed at particular place and in accordance with a specific contract. Such invoices are called as a certified invoice

Packing List
It shows details of goods contained in each parcel/shipment Shows item by item the contents of containers or parcels shipped Enables buyer/receiver to check received items correctly Specified number of copies are kept inside the package, sent with shipping documents, sent to buyer, to shipping agent

Certificate of Origin
Specifies the country of production of goods It is required by the importer for clearance of goods in his country Also required for taking advantage of preferential tariffs granted to exports from India in a particular country Obtainable from a recognised Chamber of Commerce, Export Promotion Council, etc on payment of a small fee.

Cerificates related to shipment

Mate receipt Shipping bill Cart ticket Certificates of measurement Bill of lading Airway bill

Mate receipt
Issued by commanding officer of ship Contain information about name of the vessel ,date of shipment , description of packages etc. Handed over to the Port Trust Authorities so that port dues may be paid by the exporter Bill of lading is prepared only after mate receipt has been obtained.

Shipping Bill
Most important document required by custom authorities for allowing exports. It contains all details of goods shipped. These are of 4 types White : Export of duty free goods (3 Copies) Green : Export under claim for duty drawback (4 copies) Yellow : Export for dutiable goods (3 copies) Pink : Export of duty free goods ex-bond (3 copies) Blue: Export under DEPB scheme (7 copies)

Port Trust Copy of Shipping Bill/ Export Application/Dock Challan

An exporter has to pay the port and dock charges when the shipment is sent by sea. The amount is assessed on the basis of nature of goods, volume, weight etc. Vehicle Ticket It is an entry pass issued by the port trust authority to the shipper to allow the latter to bring export cargo to the port for their dispatch to the importer.

Bill of Lading
It is a document issued by the shipping company or its agent acknowledging the receipt of goods on board of vessel, and Undertaking to deliver the goods in the like order and conditions as received to the consignee or his order of assignee provided freight and other charges have been duly paid It is a document of title and by practice transferable.

Types of Bill of Lading

Clean Bill of Lading Claused Bill of Lading On Board Bill of Lading Stale Bill of Lading

Transport Documents
a. b. c. d. Following documents are used in export as transport documents: Ocean freight: Bills of Lading Air Freight: Airway Bills / Air consignment note Rail/Road: Railway Receipt /Consignment Note Post: Post Parcel Receipt

Combined Transport Document

It is a document for multi-modal movement of goods in container. The movement is carried out by more than one mode, e.g. rail and ship. A CTD provides an alternative to establishing a series of separate and non-uniform contracts for each segment of the total transport process. It is acceptable for negotiation under L/C.

Airway Bill / Air Consignment Note

It is the receipt issued by the airline for the carriage of goods It is not treated as a document of title and is not issued in negotiable forms Indian Exchange Control discourages consignment of goods in the name of either importer, buyer or his agent.

Documents related to payment

Letter of credit Bill of exchange Trust receipt Letter of hypothecation Bank certificates of payment

Letter of credit
Contains guarantee of a bank to honour drafts drawn on it by exporter provided that the beneficiary fulfills the stipulated conditions .

Bill of Exchange
Also known as Draft It is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to or to the order of a person or to the bearer of the instrument

There is no standard format for Bill of Exchange

Types of bill of exchange

1. 2. 3. 4. Sight bill Usance bill Clean bill Documentary bill

Trust receipt
In case of inability of importer to take possession of documents by making the payment on D/P bill, merchandise may be available to the importer by his bank under an arrangement whereby the importer signs a trust receipt.

Letter of hypothecation
Document signed by the customer conveying to the banker the full ownership of goods at the pot of destination.

Bank certificate of payment

Issued by exporters bank certifying that the bill covering particular consignment has been negotiated and proceeds received in accordance with exchange control regulations in approved manner.

Documents related to inspection

Certificate of inspection

Inspection certificate
It indicates that the goods have been inspected before sealing for export. Specialized inspection agencies are there in India Self inspection certificates can also be given by export houses with good record of exports

Documents related to excisable goods

G.P.Forms Form c Forms AR4/AR4A

Documents related to foreign exchange regulation

GR FORMS PP FORMS SOFTEX SDF

Declaration Documents

GR Forms
Prescribed by the RBI under FEMA to ensure that the Forex receipts in respect of exports are repatriated to India.

SDF Forms
Where shipping bills are processed electronically, SDF is used. Submitted in duplicate Customs gives back one copy along with a copy of the shipping bill marked as Exchange Control Copy Should be given to authorized dealer within 21 days

PP Forms
Completed in duplicate Exports to all countries are to be declared on PP Form when goods are sent by post parcel. All such parcels are routed through the foreign post offices located in major cities. Postal articles intended for any permissible foreign destinations may be booked at any of the post office in India . PP form or No objection certificate from the Reserve Bank of India is required to be enclosed to the parcel depending upon the value of the goods being exported.

SOFTEX Forms
Used in export of software otherwise than in physical form, i.e magnetic tapes, discs, etc. Valuation of Software Exports Disposal of SOFTEX form (triplicate) Should be submitted not later than 30 days along with invoice to the valuation authorities

Other documents

Marine Insurance Policy / Certificate

Marine insurance is intended to protect the insured against the risk of loss or damage to goods in transit due to marine perils

Insurance Policy
Marine Insurance Policy is a contract whereby the insurer, in consideration of a payment of premium by the insured, agrees to indemnify the latter against the loss incurred in respect of goods exposed to perils of sea and incidental to sea voyage

Insurance Certificate
It gives details of the shipment insured together with a shortened version of the provision of open cover It is a more convenient document than a policy and more easily intelligible It does not have legal standing, cannot be assigned.

Generalised System of Preferences (GSP) Certificate

Many developed countries have adapted GSP Exporters from developing countries including India are entitled to a concessional rate of import duty in these countries Issued usually by Export Inspection Agency

Shipment Advice
Shipment Advice is sent by exporter to importer intimating the date of shipment of consignment by a named vessel and its ETA at the destination port. Shipment advice is sent in the prescribed format along with following documents: 1. Non negotiable copy of the B/L; 2. Commercial invoice; 3. Packing list; and 4. Customs invoice