EXPORT MANAGEMENTIn simple terms, export management is the application of managerial process to the functional

area of exports. It is a form of management which is required to bring about coordination and
integration of all those involved in an export business. It is thus, concerned with securing export
orders and achieving their successful completion in time as per the requirement specified by the
foreign buyers.
The main objectives of export management (i) secure export orders and (ii) to ensure timely
shipment of goods as per prescribed norms of quality and other specifications including terms
and conditions agreed to between the export and the importer.
Classification of Export
The export can be classified into the following categories.
1.
2.
3.
4.

Merchandise Exports
Services Exports
Project Exports
Deemed Exports

Merchandise Exports
Merchandise exports refer to the export of physical goods, for example, readymade garments,
engineering goods, furniture, works of art etc.
Service Exports
Services exports refers to the export of goods that dont exist in physical form, that is,
professional, technical or general services. Examples of the exports would include export of
computer softwares, architectural, entertainment or technical consultancy services etc.
Project export refers to establishment of a project by a business firm in another country. The
term Project as been defined as non-routine, non-repetitive and one-off undertaking, normally
with discrete time, financial and technical performance goals. It is viewed as scientifically
evolved work plan devised to achieve a specific objective within a specific period of time.
Deemed Exports
Deemed Exports refer to those transactions in which the goods are made in India, by the
recipient of the goods. The essential condition is that such goods are manufactured in India.
This category of export has been introduced by the Export Import Policy of the Government of
India. Some of the examples of goods regarded as Deemed Exports, as given in Export-Import
Policy (2002-07) are;
1. Supply of goods against duty free licenses
2. Supply of goods to projects financed by multilateral or bilateral agencies/Funds notified by
the Department of Economic Affairs, Ministry of Finance, Government of India.
3. Supply of goods to the power, oil and gas including refineries and so on.

EXPORT DOCUMENTS:
Documents required for an international sale can vary significantly from transaction to
transaction, depending on the destination and the product being shipped. At a minimum, there
will be two documents: the invoice and the transport document. The buyer will usually provide
the seller with a list of documents needed to get the goods into his country as expeditiously and
inexpensively as possible. Some documentary requirements are not open to negotiation, as they
are needed by the importer to clear customs at the port of destination.

Documents used in export trade are as follows:

1- Pro-Forma Invoice: - It is a quotation send by exporter to his buyer. This is issued by
exporter to his buyer giving details about the order. On the basis of pro forma invoice buyer open
the letter of credit.
2- Commercial Invoice: - this document shows the value of goods. There are three types of
Commercial invoice used in export trade.
a) (Custom Invoice): - When the Commercial invoice is prepared on the format prescribed by
the custom authorities of importer's country, it is called custom invoice, this invoices required in
USA, Canada and Australia.
3- Certificate of Insurance : - This is a proof that exporter covers the loss of or damage to the
cargo during transit.
4- Mate Receipt: - It is a receipt issued by the shipping line at the time of loading the goods on
the ship. This receipt states the condition in which goods received by shipping line. This is used
when goods are sends by sea only.
5-Transport Documents:
a) Bill of lading: - This is a contract between the owner of the goods and shipping line. This is
the proof of shipment that you have sent the goods. Bill of lading is issued by shipping line
against mate receipt. It is issued in set of negotiable and non-negotiable copies. Bill of lading
includes (a) Title of goods receipt for the goods shipped & an admission to their apparent
condition & quality at the time of shipment.
b) Airway Bill : - Airway bill (AWB) refers to a receipt issued by an international courier
company for goods and it is evidence of the contract of carriage, but it is not a document of title
to the goods. Airway bill is non-negotiable.
c) Combined Transport Documents : When goods are send by more then one source of
transport. this document is required.

d) Track Receipt : When goods are send by track to another country, this recipt is issued by
transport company
e) Railway receipt : When goods are send by rail to another country, this recipt is required.
f) Post office receipt : When goods are send by post office to another country, this recipt is
issuesd by post office.
6- Certificate of origin : - Certificate of origin is a document that show the country in which the
goods are produced or manufacture. Certificate of origin is issued by chamber of commerce of
exporter's country. Some countries (i.e. Middle East) require that certificate of origin be
notarized, certified by local chamber of commerce and legalized by the commercial section of
the consulate of the destination country.
7- GSP Certificate of origin : GSP (Generalised System of Preferences) program or the
preferential tariff treatment, a free or reduced duty is granted by developed countries to certain
manufactured goods from the least developed countries, in order to bolster their exports and
economic growth. Most imports eligible under the GSP program are free of duty. There are over
20 industrialized countries---donor countries (country of destination)---which maintain GSP
programs and over 100 least developed countries---beneficiary countries (country of origin)--which are eligible under the GSP program.
8- Bill Of exchange: - A written order for a certain sum of money, to be transferred on a certain
date from the person who owes the money or agrees to make the payment (the drawee) to the
creditor to whom the money is owed (the drawer of the draft).

Export import Documents :

Import Export documents include the followingPurchase order - It seems like a business requirement but it may be needed for financing. The
purchaser may need to show the order to his bank to organize a temporary loan or customs may
want to see the paperwork to make sure everything is valid.
Letter of credit - this is used for making payments for imported goods, once the necessary import
export documents are handed over (see, we told you they were important). A letter of credit
basically says that the importers bank guarantees to pay provided all the papers stipulated in it
are in order.
Shipment documents - a bill of lading is needed for sea shipments or an airway bill when goods
are sent by plane, as proof that the goods have been sent by the supplier.

Certificates of origin - Several countries have restrictions on the learn import of goods from
certain other countries, and may apply tariffs to these goods or ban them altogether.
Alternatively, there may be tariff benefits accorded to goods from specific supply sources. In
such cases, an learn export will need to submit a Certificate of Origin, which is endorsed by a
designated regulatory authority.
Quality or inspection certificates - if the buyer specifies an inspection prior to shipment, these
are paramount to making sure the deal is confirmed.
Packing list - The list of all of the cartons within the container and the contents within.
Invoice - The most important document, make sure that a full summary of goods is outlined and
its invoiced in the currency of sale.
Others(!) - These are specific requirements, and change from country to country. For example,
Australia has stringent quarantine restrictions governing the trade of food and animal products.
You would need to secure a permit, or subject your goods to an inspection or quite possibly both.
3.Realization of export proceeds from the exporter to the importer.Out of the 16 commercial
documents in the Export Documentation Framework, asmany as 14 documents have been
standardized and aligned one to another. Commercialdocuments may be classified as Principal
Export Documents and Auxiliary Documents.
Principal Export Documents:
These are the eight documents, which are required tobe sent by the exporter to the
importer.These are known as Principal Export Documents. They are:
(i)Commercial invoice
(ii)Packing list
(iii)Certification of inspection/quality control (where required)
(iv)Bill of lading/Combined Transportation Documentation
(v)Shipping Advice
(vi)Certificate of origin
(vii)Insurance Certificate/Policy (In case of CIF export sales contract)
(viii)Bill of Exchange.

Auxiliary Export Documents:

The remaining eight documents, other than principalexport documents, are known as auxiliary
export documents. They are:
(i)Proforma invoice
(ii)Intimation for Inspection
(iii)Shipping Instructions
(iv)Insurance Declaration
(v)Shipping Orders
(vi)Mates Receipt
(vii)Application for Certificate of Origin and
(viii)Letter to the Bank for Collection/Negotiation of Documents.
REGULATORY DOCUMENTS
Regulatory pre-shipment export documents are those which have been prescribed bydifferent
government departments and bodies in the context of export trade. These documentsare meant to
comply with the various rules and regulations under relevant laws governingexport trade such as
export inspection, foreign exchange regulations, export trade controland customs etc.There are 9
regulatory documents associated with the pre-shipment stage of an exporttransaction. Out of
them, only 4 have been standardized. The regulatory documents are asfollows:
(1)Gate Pass-I/Gate Pass II : The Central Excise Authorities prescribe them.
(2)ARE-1: These are Central Excise forms. Earlier, AR4 and AR5 Forms have beenused. In their
place, ARE 1 form , now, is used.
(3)Shipping Bill/Bill of Export: They are standardized and prescribed by the CentralExcise
Authorities.For export of goods.For export of duty free goods.For export of dutiable
goods.For export of goods under claim for duty drawback.
(4)Export Application/Dock Challan: Standardized and prescribed by the Port Trust Authorities.

(5)Receipt for Payment of Port Charges: Standardized.

(6)Vehicle Ticket.
(7)Exchange Control Declaration Forms: GR/PP forms are standardized and prescribedby RBI.
(8)Freight Payment Certificate.
(9)Insurance Premium Payment Certificate

Classification of Commercial and Regulatory DocumentsThe different commercial and regulatory documents may be classified into documentsrelated to
goods, documents related to shipment, documents related to payment, documentsrelated to
inspection, documents related to excisable goods and documents related to foreignexchange
regulations.

DOCUMENTS RELATED TO GOODS(i) Proforma Invoice

Proforma invoice is the starting point of an export contract. As and when the exporterreceives
the trade inquiry from the importer, exporter submits the Proforma invoice to theimporter.The
Proforma invoice contains details such as name and address of the exporter, nameand address of
the intending importer, nature of goods, mode of transportation, unit pricein terms of
internationally accepted quotation, name of the country of origin of goods, nameof the country of
final destination, period required for executing contract after receipt of confirmed order and
finally signature of the exporter.
(ii) Commercial Invoice
A commercial invoice is the sellers bill for merchandise or goods sold by him. Invoicecontains
all the particulars and details in respect of name and address of seller (exporter),name and
address of buyer (importer), date, exporters reference number, importers referencenumber,
description of goods, price per unit at particular location, quantity, total value,packing
specifications, terms of sale (FOB, CIF etc), identification marks of the package,total number of
packages, name and number of the vessel or flight, bill of lading number,place and country of
destination, country of origin of goods, reference to letter of credit, if opened, terms of payment,
and finally signature of the exporter etc.From the details, it is clear that invoice is an important
and basic export document. Itis also known as DOCUMENT OF CONTENTS as it contains all

the important informationnecessary for the preparation of other export documents.For many
countries, there are no prescribed special invoice forms. Exporters can usetheir normal invoices
used for indigenous trade for exports made outside the country too andshow the particulars
required by the importer in terms of the contract. However, there arespecial invoicing procedures
in respect of exports to certain countries like Canada, U.S.A.and Australia. Some countries like
Uganda, Mexico, Sudan and Tanzania require specialcustoms invoices.Information about the
special invoice forms required can be gathered from the respectiveExport Promotion Councils
apart from the procedures of trade to be followed in respect of the importers country. Any
recognized Chamber of Commerce too can provide the informationin this respect.
(iii) Consular Invoice
Some of the importing countries insist that the invoice is to be signed by the importingcountys
consular located in the exporters country. Such invoices are known asConsular invoice.The
exporter has to pay a certain fee to obtain the certificate/invoice. Such charges/ fees vary from
country to country. The main purpose to obtain consular invoice is to secureauthentication of
information contained in the invoice. Once the invoice is signed by theconsular of the country,
the importer gets comfort and confidence in respect of accuracy of information in respect of
quality, source of goods, volume and grade.
Normally, on arrival of the goods, it is necessary to convince the customs authoritiesof the
importing country that the goods stated in the invoice and the actually importedgoods are one
and the same. If the customs authorities get suspicious or not convinced, theyopen the packages
of the imported goods. If this happens, considerable delay takes place.The importer is put to
hardship by delayed receipt of goods. To avoid all these problems,importer insists on the
exporter to obtain the consular invoice from the consulate stationedin the exporters country. The
consulate invoice is, generally, prepared in three copies. Onecopy is retained by the consulate
office, the second copy is sent to the customs of theimporting country and the third copy is given
to the exporter to forward the same along withother documents through the banker for
collection/negotiation.This information also facilitates in assessing import duties and also would
be useful forstatistical purposes.
(iv) Legalized Invoice
Certain Latin American countries like Mexico require this. It is just like consularinvoice, which
requires certification from consulate or authorized mission, stationed in theexporters country.
(v) Customs Invoice
When the commercial invoice is prepared on the format prescribed by the customsauthorities of
the importing country, it is called Customs Invoice. This is the requirementof U.S.A., Canada
and Australia.

(vi) Packing Note and Packing List

There is a difference between packing note and packing list. Packing note refers to theparticulars
of contents of an individual pack while packing list is a consolidated statementof the contents of
the total number of cases or packs. A packing note contains the following details:
(a)Date of packing,
(b)Number of packing note,
(c)Number of case to which it relates to,
(d)Contents of case in terms of quantity and weight,
(e)Marking numbers,
(f )Name of exporter,
(g)Name of importer,
(h)Importers order number,
(i)Number and date of bill of lading and
(j)Name of vessel/flight.Packing note is kept in each concerned case/pack. Packing note and
packing list aresent to the importer along with other documents. If any case contains any
shortfall, importercan communicate to the exporter in which case there is shortage of goods for
making good.No particular form has been prescribed for both packing note/list. Normally, ten
copiesare prepared. Two copies are sent, in advance, to the buyer, one copy along with
thedocuments, one to the shipping agent and the remaining are retained by the
exporter.Precaution is to be exercised that the details of the quantity in the packing
note/listshould conform to the quantity as stated in the Invoice and Bill of Lading/Airway Bill.
(vii)Certificate of Origin
As the very name indicates, certificate of origin is a certificate that specifies the nameof the
country where goods are produced. This is absolutely necessary where the importingcountry has
banned the entry of goods of certain countries to ensure that the goods fromthose countries are

not allowed to enter in. At the time of arrival of the goods in theimporters country, this
certificate is necessary for the customs to permit preferential tariff.Certain countries offer
preferential tariff to goods produced and imported from India. Insuch a case, this is a must to the
importer to claim preferential tariff and importer insistson this document from the exporter. This
enables the importers country to regulate theconcessional tariff only to select countries and deny
to the rest of the countries. A certificate of origin can be obtained from Chamber of Commerce,
Export PromotionCouncil and various trade associations which have been authorized by
Government of Indiato issue. The agency from which certificate of origin is obtained should
conform to the termsof letter of credit.

DOCUMENTS RELATED TO SHIPMENTi) Shipping Bill

The shipping bill is the main document on the basis of which the customs permissionis given.
Under manual processing of export documents, the exporter is required to file theappropriate
type of shipping bill to seek the order for customs clearance of the exportshipment. Under
computerized processing, the exporter does not prepare the shipping bill;instead it is computer
generated. The customs order is called LET EXPORT Order. Afterthe shipping bill is stamped
by the customs, then only the goods are allowed to be cartedto the docks.
The shipping bill contains the following particulars:
(A)Nature of goods exported,
(B)Name of vessel, master or agents,
(C)Flag,
(D)Country of destination, the port at which the goods are to be discharged,
(E)Exporters address,
(F)Importers address,
(G)Details of the packages, such as numbers and marks,
(H)Quantity details of each case, total number of cases and aggregate weight,
(I)F.O.B. prices and real value as defined in the Sea Customs Act and
(J)Whether the merchandise is Indian or foreign origin which is re-exported.

The shipping bill is prepared in five copies:1.Customs copy 2.Drawback copy 3.Export
Promotion copy 4.Port Trust copy and5.Exporters copy
Types of Shipping Bills
(1)Free Shipping Bill:
It is used in case of goods which neither attract any exportduty nor entitled for duty drawback. It
is printed on simple white paper.
(2)Dutiable Shipping Bill:
It is used in case of goods, which attract export duty. Itmay or may not be entitled to duty
drawback. It is printed on yellow paper.
(3)Drawback Shipping Bill:
It is used in case when refund of duties is allowed onthe goods exported. Generally, it is printed
on green paper, but when the drawbackclaim is paid to a bank, then it is printed on yellow paper.
(4)Shipping bill for Shipment Ex-Bond:
It is used in case of imported goods for re-export and which are kept in bond. It is printed on
yellow paper.
(5)Coastal Shipping Bill:
It is used in case of shipment that is moved from one portto another port, by sea, within India. It
is not an export document.When goods are sent by sea, it is called Shipping Bill and it is Airway
bill when goodsare sent by Air.
(ii) Mates Receipt
A mates receipt is issued by the mate (assistant to the captain of the ship) after thecargo is
loaded into the ship. It is an acknowledgment that the goods have been received onboard the
ship.
Contents of Mates Receipt
Mate receipt contains the details about
1.Name of the vessel,

2.Date of shipment,
3.Berth,
4.Marks,
5.Numbers,
6.Description and condition of goods at the time they are shipped, port of loading,
7.Name and address of the shipper,
8.Name and address of the importer(consignee) and
9.Other required details.
Types of Mates Receipts
Mates receipt can be clean or qualified.
(A)Clean Mates Receipt:
Mate of the ship issues a clean mates receipt if the condition,quality of the goods and their
packing are proper and free from defects.
(B)Qualified Mates Receipt:
If the mates receipt contains any adverse remarks asto the quality or condition of the
goods/packing, it is known as Qualified MatesReceipt. If the goods are not packed properly
and the mates receipt contains anyadverse remarks about the packing such as Poor Packing,
the shipping companydoes not assume any responsibility in respect of the goods during transit. It
isnecessary for the exporter to secure the mates receipt without any adverse remarks.On the
basis of the mates receipt, the Bill of Lading is prepared by the shippingagent. If there are
adverse remarks in the mates receipt, the same will beincorporated in the Bill of Lading, which
may turn to become a claused Bill of Lading, and this may not be acceptable for
negotiation.Mates receipt is first handed to the Port Trust Authorities who hands over to
theexporter soon after he clears their dues. This procedure is adopted to facilitate for collectionof
port dues from the exporter.
(1)Mates receipt is an acknowledgment of goods. It is not a document of title.(2)It is issued to
enable the exporter or his agent to secure bill of lading from theshipping company.(3)Bill of
Lading, which is the title to the goods, is prepared on the basis of Matesreceipt so it should be

obtained without any adverse remarks.(4)Port Trust Authorities are enabled to collect their dues
as it is routed throughthem.
(iii) Cart Ticket
A cart ticket is also known as cart chit. This is prepared by the exporter, which containsthe
details of the vehicle number, description of goods, quantity, name of the shipper,shipping bill
number and port of destination. The driver of the vehicle carries the cart ticket. At the time of
entry into Port, the cart ticket is verified by the Port Authorities to satisfythat the vehicle is
carrying only those goods, which are mentioned in the cart ticket. Afterbeing satisfied, the
gatekeeper/warden/inspector issues the gate pass to the driver andallows entry of the vehicle into
the premises of the port.
(iv) Certificate of Measurement
Freight is charged either on the basis of weight or measurement. When weight is thebasis of
measurement, the shipping company for the purpose of calculation of freight mayaccept the
weight declared by the exporter. However, when measurement is the basis forcalculation of
freight, the shipping company may insist on a certificate issued by Chamberof Commerce or
other approved organization in respect of goods. The certificate of measurement contains the
details in respect of description of goods, quantity, length, breadthand depth of the packages,
name of the vessel and port of destination of the cargo etc.,
(v) Bill of Lading
Bill of Lading is a document issued by the shipping company or his agent acknowledgingthe
receipt of cargo on board. This is an undertaking to deliver the goods in the same orderand
condition as received to the consignee or his agent on receipt of freight, the shippingcompany is
entitled to. It is a very important document to the exporter as it constitutesdocument of title to the
goods.Each shipping company has its own bill of lading. The exporter prepares the bill of lading
in the form obtained from the shipping company or agents of shipping company.The goods can
be consigned to order of the exporter, which means the exporter canauthorize someone else to
receive the goods on his behalf. In such a case, the exporter woulddischarge the bill of lading on
its reverse. When the bill of lading is negotiated through thebank, it would be endorsed in favour
of the bank that would endorse further to the importer,on receipt of payment.Bill of Lading is
made in signed set of 2 originals, any one of which can give title tothe goods. The shipping
company also issues non-negotiable copies (unsigned) which are notdocuments of title to goods
but serves the purpose of record only.The reverse side of Bill of Lading contains the terms and
conditions of the contract of carriage. The clauses on most of the bills of lading are common. A
Bill of lading should beclean to facilitate the exporter to obtain the proceeds of export without
difficulty.

(vi) Airway Bill

Airway Bill is also called Air consignment Note. It is a receipt issued by an airline forthe
carriage of goods. As each shipping company has its own Bill of Lading, so each airlinehas its
own airway bill. Airway Bill or Air consignment note is not treated as a document of title to
goods andis not issued in negotiable form. Delivery of the goods is made to the consignee
without theproduction of airway bill.
(vii) Bill of Entry
Bill of Entry is a declaration form made by the importer or his clearing agent in theprescribed
form under Bill of Entry Regulations, 1971 on the strength of which clearanceof imported goods
can be made.
When goods are imported into a country, customs duty has to be paid by the importer.For this
purpose, importer prepares the Bill of Entry declaring the value of goods, quantityand
description. This is prepared in triplicate. Customs authorities may ask the importer toproduce
the invoice of the exporter, brokers note and insurance policy to satisfy about thecorrectness of
value of goods declared.For the purpose of giving information, goods are classified into three
categories.
(1)Free Goods:
These goods are not subjected to any customs duty.
(2)Goods for Home Consumption:
These goods are imported for self-consumption.
(3)Bonded Goods:
Where goods are subject to customs duty, till duty is paid, goodsare kept in Bond.

DOCUMENTS RELATED TO PAYMENTi)Letter of Credit

A letter of credit is a document-containing guarantee of a bank to make payment to theexporter,
under certain conditions and up to a certain amount, provided the conditionscontained in the
letter of credit are complied with. For a detailed presentation, reader mayrefer to the chapter on
Export Financing.

(ii ) Bill of Exchange

The Negotiable Instruments Act, 1881 defines a Bill of Exchange as an instrument inwriting
containing an unconditional undertaking, signed by the maker, directing a certainperson to pay a
certain sum of money only to, or to the order of, a certain person or to thebearer of the
instrument.
There are five important parties to a Bill of Exchange:
The Drawer:The drawer is the person who has issued the bill. In an export transaction,exporter
draws the bill as money is owed to him.
The Drawee:The drawee is the person on whom the bill is drawn. Exporter draws thebill on the
importer who is the drawee. Drawee is the debtor who owes money to theexporter (creditor).
The Payee:The payee is the person to whom the money is payable. The bill can bedrawn by the
exporter payable to the drawer (himself) or his banker.
The Endorser:The endorser is the person who has placed his signature on the backof the bill
signifying that he has obtained the title for the bill on his own account or onaccount of the
original payee.
The Endorsee:The endorsee is the person to whom the bill is endorsed. The endorseecan obtain
the payment from the drawer.

DOCUMENTS RELATING TO INSPECTIONCertificate of inspection:

It is a certificate issued by the Export Inspection Agency certifying that the consignmenthas been
inspected under the Export (Quality Control and Inspection) Act, 1963 and foundthat the
requirements relating to quality control and inspection have been complied with,as applicable,
and the goods are export worthy.

SHIPMENT OF EXPORT CARGOExporter can send shipment through any one of the modes of transport, dependent onthe terms of
contract between the exporter and importer. The mode can be shipment by sea,shipment by air,
shipment by post and shipment by land (land routes). The term Shipmentdoes not necessarily
mean that the goods are shipped by sea alone. It is only an expressionof dispatch of goods.
However, export of cargo by shipment to the buyer is the more popularmethod in comparison to
dispatch of goods by air. The freight charges for shipping cargo aremuch less than those of
airfreight. Moreover, the physical size of the products, sometimes,constrains the exporter to
dispatch them by air, especially when the products are heavymachinery or engineering goods.
PROCEDURE FOR SHIPMENT OF CARGO:
The essence of shipment of export cargo is to obtain negotiable copies of Bill of Lading,as many
as required in the export contract. Bill of Lading constitutes the document of titleto the goods
that are to be passed on to the buyer to obtain export proceeds and completionof export contract.
The different stages in this process are:
1. Shipping OrderThe process of shipment of cargo commences even before the goods are ready forshipment.
Reserving Shipping Space and obtaining Shipping Order is the primary stepinvolved in shipment
of cargo as space may not be available when goods are ready forshipment. Shipping order binds
the shipping company to reserve the space on the sailingbooked. So, advance planning is
essential to meet the delivery schedule. Shipment of cargoinvolves various stages, once goods
are manufactured and ready for dispatch.
2. Clearing and Forwarding AgentClearing and Forwarding agents are the specialised people with knowledge of proceduresand
documentation involved in shipment of goods. So, exporter has to appoint clearing
andforwarding agents, experienced in the product and country to be exported. Range of
servicesexporter intends to avail determines the choice of the forwarding agent. While all
theforwarding agents provide essential services, very few render optional services. Scope of
these services has already been discussed in the chapter Clearing and Forwarding Agentsin
detail. Basically, they guide the exporters in providing information on the variousalternative
routes of transport to reach the buyers port along with relative cost implicationand finally
facilitate in the selection of mode as well as route of transport to meet thedelivery schedule, at
economical cost. They are the competent people to comply with proceduralformalities of the
customs and port authorities, separately.

3. Shipping DocumentsAs soon as export goods reach the warehouse, exporter arranges for a complete set of shipping
documents to be passed on to the forwarding agent, along with detailed instructions.They
comprise:
(a)ARE-1 in original, duplicate and sixtuplicate
(b)Commercial invoice (in duplicate)
(c)GR form (in duplicate)/SDF form (in duplicate) where shipping bills are
electronicallyprocessed in Customs House
(d)Letter of Credit along with export contract or export order
(e)Packing list or Packing Note
(f )Certificate of Origin
(g)Certificate of inspection, wherever necessary
(h)Marine Insurance Policy
4. Verification of Documents at Customs HouseAccording to prevailing customs regulations, no cargo meant for export is allowed forloading on
ship without the customs clearance. So, the cargo must be cleared from thecustoms before it is
loaded on the ship. For this, the above mentioned documents along with five copies of Shipping
Bill are to be submitted to the Customs Appraiser at the CustomsHouse. The Customs House
examines compliance of formalities relating to Quality Control,Exchange Control, Pre-Shipment
inspection and compliance of requisite Licensing by theexporter to ensure genuineness of
transaction. After verification, all documents except theoriginal copy of GR, original copy of
Shipping Bill and one copy of Commercial Invoice arereturned to the exporter. If satisfied, he
issues a Shipping Bill Number to the exporter/ C & F agent. After recording the required
details of GR-1in their registers, they forward theoriginal GR-1 to RBI
5. Obtaining Carting Order from the Port AuthoritiesThe export cargo lying in the warehouse of the exporter is to be moved into the portpremises and
kept in the godown at the port till the goods are loaded on board. The C&Fagent approaches the
superintendent of the concerned port for securing Carting Order formoving the cargo into the
port premises. After obtaining the order, the cargo is transportedto the port. Later, permission of

Gate Inspector is obtained to move the cargo into the portarea. The goods are unloaded and kept
in the appropriate shed assigned for those goods.
6. Customs Examination of Cargo at DocksThe customs examiner physically examines the goods. Physical examination of goodscan be
arranged at the warehouse/factory premises of the exporter by making a suitableapplication to
the Assistant Collector of Customs. He seals the packages in his presence. Themain purpose of
examination of goods at the docks is whether the goods packed and keptready for shipment are
the same as mentioned in the Shipping Bill. After all the formalitiesare over and the Customs
Officer is satisfied that the export does not contravene theprovisions of any law and all duties
and other dues have been paid, a Let Export Orderwill be made on the back of the shipping bill
to permit the export. Where the customsclearance is computerized, clearance is processed
through Electronic Data Interchange (EDI)System.
7. Obtaining Let Ship Order from the CustomsThe C & F agent presents the duplicate copy of the Shipping bill to the Preventiveofficer of the
customs who supplements his endorsement on the back of the Shipping Billwith Let Ship
Order, after satisfactory verification. At this stage, the shipping bill containsboth the
endorsements of Let Export Order and Let Ship Order. The preventive officersupervises the
loading of the cargo on board the vessel nominated for its export.
8. Mates ReceiptAs soon as the goods are loaded on board the vessel, the Captain or Master of the shipissues a
document called Mates Receipt to the Port Superintendent in-charge of the shed.It is a
document certifying loading of the cargo on board the vessel. It contains details suchas brief
description of the cargo, the number of packages, the shipping marks, the name of the vessel and
the date of issue. The mates receipt contains a comment by the master on the condition of goods
at the time of its receipt on the vessel. Any adverse remarks on themates receipt are important,
as the same will be incorporated in Bill of Lading as and whenit is issued.
9. Port Trust Dues and Collection of Bill of Lading
Exporter has to collect Bill of Lading for the cargo as it is document of title for the goodsthat is
to be, finally, made available to the buyer. Master of the vessel, where the goods havebeen
loaded, gives the mates receipt to port authorities. Exporter can collect the matesreceipt only
after paying the dues to the port authorities. Routing the mates receipt throughport authorities is
done to enable the port authorities to collect the dues from the exporter.Exporter surrenders the
mates receipt to the shipping company who gives bill of lading intwo or three negotiable copies
and two or three non-negotiable copies.

10. Documents with Exporter

At the end of the process, the forwarding agent returns the following documents to theexporter:
(a)A copy of the invoice duly attested by customs authorities.
(b)An Export Promotion copy of Shipping Bill.
(c)Full sets of clean bill of lading along with the requisite non-negotiable copies of billof lading.
(d)The original letter of credit and export contract/export order and
(e)ARE-1 form in original (for claiming excise refund) and sixtuplicate (for claimingexport
incentives)