Qishi Fashions CO.

,Ltd
AMP Building.,No.199 Tai An Road, 80 – F Paris
Tel: 86 - 571 - 89000190, Fax: 86 - 571 - 56389105
website :- www.qishifashions.com.cn, Email : [email protected]

To Date: - 16 Nov,2010

Suman Export,

802-C Mane Singh Nager,

Ludhiana - 141001

Subject-Asking for samples

Dear Manandeep

We are planning to expand our garment business by designing a new range of garments.
Recently, we visited your company’s website. And saw your summer collection 2010. Our
company liked your summer 2010 collection. There is a possibility of your company’s getting
orders on the same. We highly appreciate the quality of cloth that you manufacture and would
like to get the samples of the different types of cloth and other detailing you manufacture. We
are hopeful that your samples will meet our material and quality requirements.

Please send the sample along with the related at your earliest.

Yours Sincerely

Manandeep Singh

Production Department
 SE Sumeet Exports (India)
Street No.1, Vishnu Nagar, Rahon Road Ludhiana, Punjab (India)-141007
E mail, Site link: www.sumeetexports.com/, contact no.: +91-98140-22011 Fax. : +91-161-632531,

To, Date- 20 Nov, 2010

Qishi Fashions CO Ltd,

80 - FParis ,

Dear Sir/ Madame,

Subject: About the sample of style No Ab126 and Ab237

Dear Sir/ Madme,

We highly appreciate your interest in the summer 2010 collection. We are sending you the
samples of all the Garments. The summer collection for which you are asking for sample is
our best style ever. You haven’t mentioned in which colour you want your sample to be as we
are having 4 colour combos in each style. We are sending you one sample of the style no. in
substitute colour but in the actual fabric.

Thanks & Regards

Manandeep Singh
 Qishi Fashions CO. Ltd.
AMP Building. No.199 Tai An Road, 80 – F Paris

Tel: 86 - 571 - 89000190, Fax: 86 - 571 - 56389105

Website: - www.qishifashions.com.cn, Email: [email protected]

To Date: - 24 Nov,2010

Sumeet Export,

802-C Mane Singh Nager,

Ludhiana - 141001

Subject- Asking for quotations

Dear Sir/ Madame,

We are grateful for the samples that you have sent us. The production department have
selected the sample no. DFGT5, RY6, 67YU, 87NHK meeting our requirements. We would
like you to quote the best possible prices of the sample and state your terms and condition
regarding credit transport etc.

1. Style no. DFGT5, RY6, 67YU, 87NHK (Single Jersey)

2. Color :- green and white.
3. Size :- S, M, XL
4. No. of sets :- 70.

Size S M XL
Color

Red 2 2 1

Blue 3 1 3

Regards,
Thomas

Merchandiser

SE Sumeet Exports (India)

Street No.1, Vishnu Nagar, Rahon Road Ludhiana, Punjab (India)-141007
E mail, Site link: www.sumeetexports.com/, contact no.: +91-98140-22011 Fax. : +91-161-632531,

To,

Qishi Fashions CO Ltd,

80 - Paris,

Subject: Performa Invoice

Dear Sir/ Madame,

Herewith attached is the invoice containing the details of all the goods dispatched the fabric
of different colours has been packed in different containers for your convenience. The
following are the detail of the invoice:

1. Style no. DFGT5, RY6, 67YU, 87NHK (Single Jersey)

2. Color :- green and white.
3. Size :- S, M, XL
4. No. of sets: - 70.

Size S M XL Total
Color

Green 2 2 1 450

White 3 1 1 450
 1. PRICE 45 (EURO )

2. PAYMENT Including FOB

3. DELIVERY Through ship

4. BANK NAME. State Bank Of India

1. ACCOUNT NO. 0112901826452

6. SWIFT NO. 1221333311458

Please fax us a duly signed copy of the Performa Invoice.

Regards

Thomas
 IEC Number
(Importer Exporter Code)

Introduction
The IEC code is unique 10 digit code issued by DGFT- Director General of Foreign Trade,
Ministry of Commerce, Government of India to Indian Companies. An application for grant
of IEC number shall be made by the Registered/Head Office of the applicant and apply to the
nearest Regional Authority of Directorate General Foreign Trade, the Registered office in
case of company and Head office in case of others, falls in the ‘Aayaat Niryaat Form –
ANF2A’ and shall be accompanied by documents prescribed therein. In case of STPI/ EHTP/
BTP units, the Regional Offices of the DGFT having jurisdiction over the district in which
the Registered/ Head Office of the STPI unit is located shall issue or amend the IECs. There
are to ways to applyImporter-Exporter Code number as following.
An applicant may now choose one of the two options for application submission:
 File an online application and submit a physical copy of the application by taking a
printout of the online application.
 Submit a physical copy of the application directly at the regional DGFT office.
Procedure of online application
1. Applicants can file an on-line application at the DGFT web-site http://dgft.gov.in. On-
line form has been designed to ensure feeding of all the required information by
prompting user wherever a field is left blank. Applicant has to submit scanned copies of
PAN and bank certificate along with their application.
2. There are 2 options for payment of fee.
 If fee is paid by Demand Draft, IEC will be generated only after receipt of the
physical copy of the application.
 If IEC application fee is paid through Electronic Fund Transfer facility,
IEC numberwill be generated by the licensing office automatically and the number can be
viewed online by the applicant.
 On the receipt of physical copy of the application, the same IEC will be printed in 24
hours time and dispatched to the firm.
Procedure for Physical Application
 One copy  of the application must be submitted. Aayaat Niryaat Form – ANF2A
 Demand  Draft  of  Rs.250  evidencing  payment  of  application  fee  in  favour  of
the  concerned regional office of DGFT. Money can also be paid through Electronic Fund
Transfer (EFT).
 Certificate from the Banker of the applicant firm in the specified format. Appendix
18A
 Self certified copy of Permanent Account Number (PAN) issued by Income Tax
Authorities.
 Two copies of passport size photographs of the applicant
 Photograph on the banker’s certificate should be attested by the banker of the
applicant.
 Self addressed envelope and stamp of Rs.30.
 These documents may be kept secured in a file cover.
The above documents may be sent by post or hand delivered at the concerned regional
DGFT office.
The IEC number should normally be given within two working days provided the application
is complete in all respects and is accompanied by the prescribed documents.

Hints for filling IEC Applications

 Each page of the application form should be signed by applicant
 Enclosed documents should be self attested.
 One photograph of applicant shall be attested by the applicant’s banker.

Application fee and mode of payment : The application costs Rs. 250.00 and can be availed
by payment through demand draft or EFT of any of the following nominated banks:

1. HDFC Bank
2. ICICI Bank
3. State Bank of India
4. UTI Bank
5. Punjab National Bank
6. Central Bank
Another option is to deposit the application fee through TR6 Challan in any of the Central
Bank of India branches. Information regarding the scale of fee, payment mode, refunds and
person exempted from it are available in 21-B.

Filing of application : Applications can be filed on the DGFT website. Every application
should be complete in each and every respect failing which it will be rejected. The
application can be submitted in MS word format.

Importer/ Exporter Profile : The Part 1 of the application requires the profile of the
importer/exporter and the same is registered to the regional authority. In case of any change
in the above mentioned information, the same should be immediately intimated to the
 regional authority.
Exempted Categories:
The importer/exporter categories that are exempted from obtaining IEC code are :

1. Importers under the clause 3(1) and exporters under the clause 3(2).
2. Central/state government ministries/depts.
3. Persons involved in import and export of personal goods.
4. Persons involved in the import/export of goods from or to Nepal in case a consignment’s
CIF value remains below Rs. 25,000.
5. Persons involved in the import/export of goods from or to Myanmar in case a
consignment’s CIF value remains below Rs. 25,000.

Each applicant should fulfill the following criteria to apply for IEC code number :

1. PAN number
2. Bankers Certificate
3. Current Bank Account
Before the final submission of the application, each applicant should go through the
attachments
Buyer: Vendor: Page 001

PO number
Print date
Issue date
Buying office
Consignee Ship to factory

Packing Package or CMT; Pay teams; currency At consolidator

date

Trade terms: Shipping Method Port Of Lading Country Of Origin

Style Colour --------------- ----- Qty

--------------------

Total
Comments Total order cost Total quantity **continued**
Additional/unit
Authorized by ……………….
Signature……………………..
Title…………………………
INTERNATIONAL PURCHASE ORDER
 Registration-cum-Membership Certificate ( RCMC)

It has been provided under para 4.10 of the Export-Import Policy:1997-2002 that an export
firm shall be granted licence to import/export of items other than restricted items of
export/import or other benefit/concession available under the Export-Import Policy if it has
obtained the Registration-cum-Membership Certificate (RCMC) from the concerned Export
Promotion Council/ Commodity Board. The Government of India has established the
Export Promotion Councils for the promotion of the export of various non-traditional items
of export and Commodity Boards, for the promotion of export of traditional goods.

Authorities Issuing RCMC :-

An exporter desiring to obtain a Registration-cum- Membership Certificate (RCMC) shall

declare his main line of business in the application which shall be made to the Export
Promotion Council (EPC) relating to that line of business. However, a status holder has the
option to obtain RCMC from Federation of Indian Exporters Organisation (FIEO). The
service exporters (except software service exporters) shall be required to obtain RCMC
from FIEO.

In addition, an exporter has the option to obtain an RCMC from FIEO or any other EPC, if
the products exported by him relate to those EPC's. If the export product is such that it is not
covered by any EPC, RCMC in respect thereof may be issued by FIEO.

A list of Export Promotion Councils/Commodity Boards with addresses and other details is
given in Appendix-31.

Procedure For Issue Of RCMC :-

An application for registration may be made to the concerned registering authority in the
form given in Appendix-3A along with the documents prescribed therein.

If the application for registration is accepted, the concerned registering authority shall issue
the RCMC indicating the status of the applicant as merchant exporter or manufacturer
exporter in the form given in Appendix-3B. In case an exporter desires to get registration as
a manufacturer exporter, he shall furnish evidence to that effect.

Validity Period Of RCMC :-

The RCMC shall be deemed to be valid from 1st April of the licensing year in which it was
issued and shall be valid for five years ending 31st March of the licensing year, unless
otherwise specified.
 Packing List
Manufacture’s name & address : Invoice no. & date : Exporter’s Ref.
Sumeet Exports (India) FCM/E/01/2-10 DT. 19 Nov,2010 I.E.C NO. 1233847923
Street No.1, Vishnu Nagar, Rahon Road
Ludhiana, Punjab. Buyer’s Order no. Perform Invoice &Date
FCM/34/2005/2008 DT. 19 nov,2010

Consignee : Other Reference(s). :

Country of Origin of Goods :- Country of Final Destination:-

INDIA Qishi Fashions CO.,Ltd
AMP Building.,No80 – F
Paris

Pre- Carriage by Place of receipt by Pre-carriage Terms of Delivery & Payment :

RAIL LUDHIANA AS PER L.C.NO. 1ZB/LC/01/2010 DT. 02/04/2010

Vessel/Flight No. Port of loading :

V-1134 MUMBAI

Port of Discharge : Final Destination :

No.& Kind of Pkgs Description of goods Quantity Quantity

Gross Wt. (Kgs) Net Wt. (kgs)

DISCRIPTION OF GOODS & OR SERVICE

FOR 100% OF FOB MUMBAI VALUE OF 4233.800 KGS, 100% COTTON WOMEN’S POLO
T-SHIRT

990
998
1010

1010
SR. NO 1 to 2

COLOUR M L X S.NO. NO. OF CARTONS

green 2 2 1 1 34X22.500

White 3 1 1 2 34X22.500

TOTAL 2020 1988

Declaration :- FOR :-
1.GOOD EXPORTED OF INDIAN ORIGIN
Qishi Fashions
CO Ltd
 COMERCIAL INVOICE
Manufacture’s name & address : Invoice no. & date: Exporter’s Ref.
Sumeet Exports (India) FCM/E/01/2-10 DT. 19/11/2010 I.E.C NO. 1233847923
Street No.1, Vishnu Nagar, Rahon Road
Ludhiana, Punjab Buyer’s Order no. Perform Invoice &Date
FCM/34/2005/2008 DT. 19/11/2010

Consignee : Other Reference(s). :

Country of Origin of Goods Country of Final

INDIA Destination

Qishi Fashions CO.,Ltd

AMP Building.,No.199
Tai An Road, 80 – F
Paris

Pre- Carriage by Place of receipt by Pre-carriage Terms of Delivery & Payment :

RAIL LUDHIANA AS PER L.C.NO. 1ZB/LC/01/2010 DT. 02/04/2010
Vessel/Flight No. Port of loading :
V-1213 A MUMBAI

Port of Discharge : Final Destination :

France France

No.& Kind of Description of goods Quantity Rate Amount

Pkgs
EURO EURO

DISCRIPTION OF GOODS & OR SERVICE FOR

100% OF FOB MUMBAI VALUE OF 4233.800 KGS, 100% COTTON WOMEN’S POLO
SR. NO 1 TO 560

T-SHIRT

COLOUR S.NO. NO. OF CARTONS QUANTITY

Green 1 TO 255 34X22.500 280

560 45 25200
White 255 TO 560 34X22.500 280
 Amount chargeable (IN WORDS) : TOTAL EURO : 25200
EURO TWENTY FIVE THOUSAND TWO HUNDRED ONLY
Declaration : FOR
GOODS EXPORTED OF INDIAN ORIGIN
SIGNATURE & DATE

For combine Transport or Transport Shipment REG office    

Shipper       Forwarding      
Exporter…………………     Denmark line  
Name……………………..     Add………..  
Add………………………..                
Notify Party                
Name……………………..   Unless marked "non negotiable" express
Add………………………..   bill, One original bill of lading must be
Pre-Carriage by:   Place of receipt by pre-carrier slandered duty in exchange for the good
RAIL   LUDHIANA   of delivery order for apply.  
Vessel/Flight No. V-1213 A Port of loading :
MUMBAI
TELNO.  

 
Port of Discharge Final destination          
France Paris     On carriage to    
Marks& No No.& kind of packages Description Of Goods Quantity Measurement
                gross(wt.)
1-2   One hundred carton        
Container No.   Only one set of carton      
E. Seal…………………..   ladies polo T. Shirt knitted   2397 kgs 100*
I. Seal………………….   100% organic cotton     20*60
Shipped On Board   Invoice No…………………Date…………………….. net wt. (carton)
    SB No………………………..Date……………………..   2115kgs  
    IEC No………………………      
    PO No………………………..Date……………………..    
    L/C No……………………….Date……………………..    
         
      Ocean freight payable of destination      
        Freight collected        
Total No of Packaging freight Payable by Excess Value: Refers to Cause 14.3  
        Declared and Reversed    

Paris……………………….

Marine Insurance:-
The Marine Insurance Act , 1963, defines marine insurance as follows ; “ A contract of marine
insurance is an agreement whereby the insurer undertakes to indemnify the assured, in the manner and
to the extend thereby agreed, against marine losses, that is to say, losses incidental to marine
adventure.”

Marine insurance falls under commercial insurance. The policy is taken to reduce business risks. It
caters to small scale business organisations to large corporate. Policy does not cover loss or damage
due to wilful misconduct, ordinary leakage, improper packing, delay, war, strike, riot and civil
commotion.

Different types of Marine Insurance are available :

 Marine import transit insurance

  Marine export transit insurance
 Marine inland transit insurance
 Marine insurance claim procedure
 Marine Hull

Calculation of Marine Insurance Amount/Premium :

Amount of premium depends on factors like nature of cargo, scope of cover, packing, mode of
conveyance, distance and past claims experience. Premium can be paid on a monthly/quarterly/half-
yearly/yearly basis.

Marine Insurance Claim Procedure:

 In case of loss/damage in transit, a monetary claim should be lodged with the carrier within
the time limit to protect recovery rights
 Appointment of surveyor or claim representative in agreement with the insurer to determine
the nature, cause and extent of loss/damage
 The surveyor informs the insurer of the approximate value of loss incurred
 The claim procedure takes from one to three weeks

Documents Required for Marine Insurance Claim:

 Original Invoice & packing List - if forming part of Invoice

 Document of declaration of consignment
 Damage Certificate from the carrier

List of Some of Insurance Companies Offering Marine Insurance:

1. ICICI Lombard - Marine Import Transit Insurance Policy

2. United India Insurance Co. - Marine Cargo
3. The New India Assurance Co. - Marine Cargo Policy
Insurance Companies:

Letter Of credit

 A standard, commercial letter of credit (LC[1]) is a document issued mostly by a financial

institution, used primarily in trade finance, which usually provides an irrevocable payment
undertaking.

 The letter of credit can also be source of payment for a transaction, meaning that redeeming
the letter of credit will pay an exporter. Letters of credit are used primarily in international
trade transactions of significant value, for deals between a supplier in one country and a
customer in another. In such cases the International Chamber of Commerce Uniform
Customs and Practice for Documentary Credits applies.[2] They are also used in the land
development process to ensure that approved public facilities (streets, sidewalks, storm water
 ponds, etc.) will be built. The parties to a letter of credit are usually a beneficiary who is to
receive the money, the issuing bank of whom the applicant is a client, and the advising
bank of whom the beneficiary is a client. Almost all letters of credit are irrevocable, i.e.,
cannot be amended or canceled without prior agreement of the beneficiary, the issuing bank
and the confirming bank, if any. In executing a transaction, letters of credit incorporate
functions common to giros and Traveler's cheques. Typically, the documents a beneficiary
has to present in order to receive payment include acommercial invoice, bill of lading, and
documents proving the shipment was insured against loss or damage in transit. However, the
list and form of documents is open to imagination and negotiation and might contain
requirements to present documents issued by a neutral third party evidencing the quality of
the goods shipped, or their place of origin or place.

Process of letter of credit with example

A business called the InCosmetika from time to time imports goods from a business called ACME,
which banks with the ABC Bank. InCosmetika holds an account at the Commonwealth Bank.
InCosmetika wants to buy $500,000 worth of merchandise from ACME, who agrees to sell the goods
and give InCosmetika 60 days to pay for them, on the condition that they are provided with a 90-day
letter of credit for the full amount. The steps to get the letter of credit would be as follows:

 InCosmetika goes to The Commonwealth Bank and requests a $500,000 letter of credit, with
ACME as the beneficiary.
 The Commonwealth Bank can issue a letter of credit either on approval of a
standard loan underwriting process or by InCosmetika funding it directly with a deposit of
$500,000 plus fees which are typically between 1% and 8% of the face value of the letter of credit.
 The Commonwealth Bank sends a copy of the letter of credit to the ABC Bank, which notifies
ACME that payment is available and they can ship the merchandise InCosmetika has ordered
with the full assurance of payment to them.
 On presentation of the stipulated documents in the letter of credit and compliance with the
terms and conditions of the letter of credit, the Commonwealth Bank transfers the $500,000 to the
ABC Bank, which then credits the account of ACME for that amount.
 Note that banks deal only with documents required in the letter of credit and not the
underlying transaction.
 Many exporters have mistakenly assumed that the payment is guaranteed after receiving the
letter of credit. The issuing bank is obliged to pay under the letter of credit only when the
stipulated documents are presented and the terms and conditions of the letter of credit have been
met.