Export Procedure & Documents

Export Procedure and
Documentation
Export Documents
There are four category of export documents:
1. Commercial Documents:
 These are the documents that are necessary to meet the
customs and traditions of the export trade.
 These documents are essential to move the goods from one
place to another and facilitate the transfer of ownership from
the seller to buyer after understanding of sales proceeds. It
includes commercial invoices, bill of exchange, bill of lading,
letters of credit, etc.
2. Regulatory Documents:
These are the documents which have been arranged by the
regulatory authorities of the exporting country. It includes
Excise gate pass, shipping bill, Insurance payment certificate
etc.
3. Export Assistance Documents:
These documents are needed for claiming governmental
assistance and subsidies offered by the government
departments and other exports promoting bodies in the
country. A certificate of origin is required to avail concessional
duty by an importer wherever there is free trade agreement.
4. Documents as prescribed by the Importer Countries:

Any purchase from abroad or import transaction of the
importer is governed by the laws and regulations of his
country. The importer in order to satisfy the statutory
provisions of his country’s government will insist on the
submission of such documents. Such documents may refer to
mandatory pre-inspection, quality approval, child labor norms,
environment norms or certificate of origin of goods etc.
 Performa Invoice: Refers to the advance copy of the Performa
of the invoice sent to the importer to understand how the bill
will finally be prepared for the goods ordered by him
 Invoice: It is the sales bill of the goods ordered by the importer.

It contains particulars related to the customer whom goods are
being supplied, his name, address, his bankers details and
import license number etc. It also relates the goods to be
supplied e.g., the price per unit, the number of units being
supplied by this bill, the total sales value of the invoice, the
taxation description and calculation if any, the terms of sales,
packing units, the packing specification, bill of lading numbers,
name of the ship and the planned destination of the goods etc.
 Packing List: Such list will mention the packing date, the
name and address of the exporter, the name and address of the
importer, the export order number and date, the contents of
the goods in terms of quality and quantity, weight, special
handling instructions if any and finally the marking numbers
to identify the consignment.
 Certificate of Origin: Certificate the name of the country in

which the goods meant for export have been produced. This
certificate is sent by the exporter to the importer, as it will be
needed by him to get the goods cleared by the customs
authority of his country. The exporters can approach the
chambers of commerce, the export promotion councils and
many other trade promotion associations, authorized by the
government to issue such certificate of origin.
Documents related to shipment of goods
 Shipping Bill: This is principle document needed to obtain the
permission of the customs to export the goods by sea or air. This
document contains details regarding the exporter’s name and
address, particulars and description of goods under export, details
of the packages of goods, total number of packages, total weight ,
prices, port of destination etc.
 Mate Receipt: The cargo is handed over to the ship only after all
formalities by the custom authorities and port authorities have
been completed i.e. the examination of the goods by the custom’s
authorities, and the payment of port charges etc., have been paid
by the exporter. The captain of the ship issues this receipt which
contains information regarding name of the vessel, berth, date of
shipment, description of packages, identification marks and
numbers, condition of the cargo at the time of loading into the ship
etc. The mate’s receipt forms the basic document for issuing the
bill of lading and the mates receipt will be exchanged for the bill of
lading
 Bill of Lading: The bill of lading pertains to the official receipt
issued by the shipping company or their authorized agent for
carrying the goods to its destination. This bill of lading also forms a
shipping contract between the exporter and the shipping company,
to deliver the goods in the condition in which these have been
received at the port of loading. The bill of lading contains
following information:
 The shipping company’s name and address
 Date and place of shipment
 The name of the consignor
 The name and destination of vessel
 The description , quality and destination of goods
 The Invoice number and date of shipment
 The net weight and the number of packages
 Signatures and seal of the shipping company’s authorizes agent.
Types of Bill of Lading
 Clean Bill of Lading: It is issued when exportable goods have

been received by the shipping vessel in good order and
condition and no remarks are necessary on the conditions of
the consignment.
 Claused Bill of Lading: A bill of lading forms a contract bwn

the shipper and the exporter to deliver those goods in the like
order in which the same have been received. Hence the
shipping companies are extra careful while acknowledging
the receipt and issuing a bill of lading. The goods received in
lose, badly packed, soiled or damaged conditions are issued
only “ claused bill of lading” will carry remarks on the
conditions of the goods in which these have been received by
the ship.
Trans-shipment bill of Lading: If shipping company has
to use multi modal systems of transportation e.g. rail,
road, air or another shipping company, the ship’s
commanding office can issue a through or
transshipment bill of lading.
Fright paid bill of Lading: It refers to a bill of lading the

freight for which has already been paid by the exporter.
Freight collect bill of Lading: It is similar to freight to

pay consignment note issued by a transport. The freight
in such conditions will be paid after arrival of the goods
at the destination, by the consignee(importer)
Financial Documents
 Bill of Exchange: This is also known as draft, which is drawn by the

exporter, calling upon the importer or the purchaser “ to pay or accept
obligation to pay a certain sum of money at a fixed future date”. Once this
bill of exchange has been accepted and the drawee(importer) has signed
on the face of the bill of exchange, it becomes obligatory on the importer
to arrange for the payments within the specified period of time. This is
negotiable instrument and can be transferred to a third party too.
 Sight bill of exchange: Refer to the situation when the drawer has asked
the drawee to make payment against the draft bill of exchange
immediately on receipt of the intimation abut the document from the
intermediary bank. The importer will be given the shipping documents for
getting the delivery of the goods only after he has paid the sum drawn in
the bill of exchange. This also means that the exporter has not allowed any
credit period to the importer and has asked for payment against delivery.
Export procedure involve six stages
1. Preliminaries
2. offer and receipt of confirmed orders
3. Production and clearance of the products for exports
4. Shipment
5. Negotiation of Document and realization of export proceeds
6. obtaining various export incentives

Preliminaries
 Importer-Exporter Code Number(IEC Number):

 Membership in certain Bodies:
 Registration
Inquiry, offer and receipt of confirmed order
 The Performa invoice includes the following items:

1. Name of the Buyer:
2. Description of Goods:
3. Price:
4. Conditions of sale:
5. Payment Terms:
6. Other obligations:
7. Confirmed order:
8. Export License:
9. Procuring Finance:
Production/Procurement of Goods
1. Packing and Marking:

2. Quality Control and Pre-shipment Inspection:
3. Excise Duty Rebate:
Shipment
1. Custom clearance:
It include following documents;
 Proforma Invoice (in original and duplicate)
 GR-I Form (In duplicate)
 AR-4 form( in original and duplicate)
 Export License
 Letter of credit covering the export order, export contract
 Certification of inspection
 Form of declaration ( in duplicate)
 Shipping bill (five copies)
 Quality control Inspection Certificate
 Packing List
 Letter of Registration Certificate
 GR-I Form: This form is an exchange control document required by
the RBI. The exporter has to take in the proceeds of the goods
exported within 180 days from the date of the shipment from India.
This form is not necessary incase of export to Nepal and Bhutan.
 Shipping Bill: This is an exchange document needed by the customs

officials for granting permission for shipment. This bill containing
the following information:
 Name of the Exporter/shipping including his address and IEC
Number
 Description and quantity of goods to be shipped
 Value of goods
 Number of packages and marking on them
 Port of destination
 Name of the ship and agent
 Export License: Export license is necessary for certain categories of
goods. Export license can be obtained from the Joint Director General
of Foreign Trade.
 Carting order: once the goods are ready for export and shipping order
is available, the exporter has to approach the superintendent of the
concerned Port Trust concerned for latter’s permission to move the
goods physically inside the port area. The superintendent of the Port
Trust issues the order for moving the goods in to the port area after
verifying the shipping bill and shipping order.
 Customs Examination of Cargo at Docks: The customs authorities

after checking the documents, check the products to be exported at the
docks. The exporter can arrange for the physical check of the products
in his factory or warehouse. The customs Appraiser after checking the
consignment will seal the package, after his satisfaction.
The custom authorities accord formal approval for export, once they are satisfied with the
products and documents. After obtaining the approval from the customs authorities, the
exporter can make the arrangements for loading the cargo on a ship.
 Let Ship : After getting the approval from the custom officials, the exporter
arranges for loading the products in the ship. Before loading takes place, the
exporter’s forwarding agents has to get the permission from the Preventive
officer of the customs department. This permission is called the ‘Let Ship
order’. Let ship order authorizes the shipping company to accept the cargo on
board the vessel. The goods are to be loaded in the ship after obtaining let
ship order in the presence of custom officials.
 Mate Receipt: After the goods are loaded in the ship, the captain of the ship
furnishes a document to the Port Superintendent. This document is called
‘Mate Receipt’, which certifies the loading of the cargo. This document
provides the details of the products condition of the products at the time of
loading etc.
 Port Trust Dues: The port trust Authorities after receiving the ‘Mate Receipt’
from the Captain of the ship, issues the ‘bill of lading’ to the exporter.
 Bill of Lading: The Exporter's forwarding agent collects the ‘Mate
Receipt’ and submits the same to the authorities and collects the bill
of lading from the port authorities. The exporter’s forwarding agent
provides the following documents to the exporter at this final stage,
they are:
 A copy of the invoice duly attested by the customs

 Export promotion copy of the shipping bill
 Full set of ‘clean on board’ bill of lading together with the non-
negotiable copes
 The original letter of the credit
 Customer’s order or contract
 Duplicate copy of the AR-4 form
Shipping by other Modes of Transport
 Shipping by Air
 Shipping by Post
 Shipping by Land
Negotiation of Document and Realization of Export Proceeds
 The exporter submits the relevant documents to his banker for getting the
payment for the goods exported. Submission of relevant documents to the
bank and the process of getting the payment from the bank is called “
Negotiating the Documents”, through the bank. This set normally includes:
 Bill of lading
 Commercial Invoice together with the packing slip and bill of exchange
 Certificate of origin
 GR-I form ( in duplicate)
 Letter of credit ( In original)
The letter of credit is opened by the importer through his bank authorities
drawing a bill of exchange. Payment will be made against this bill of
exchange by the importer bank. The exporters bank realises the export
proceeds and pays to the exporter.
 Aligened Documentation System: Government of India appointed a
committee to suggest on the documentation regarding export trade.
Govt of India accepted the recommendations of the committee and
introduced standardized documents with effect from 1st oct, 1981, which
is known as ‘ The Aligned Documentation System’. Standardized
documents for Indian exporters based on the Aligned Documentation
system include:
 Invoice
 Exchange control Declaration form
 Shipping bill
 Bill of Lading
Export Incentives
 Duty Drawback: Exporter is eligible to get back the excise duty and
central excise paid on all raw materials, components and consumables
used in the production of goods exported, under this scheme.
 Excise Duty Refund: Exporter is eligible for refund of the excise duty.
He can recover it after export, if he paid at the beginning. He also can
execute bond with the Excise authorities without making the payment.

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Export Procedure and

4. Documents as prescribed by the Importer Countries:

 Invoice: It is the sales bill of the goods ordered by the importer.

 Certificate of Origin: Certificate the name of the country in

 Clean Bill of Lading: It is issued when exportable goods have

 Claused Bill of Lading: A bill of lading forms a contract bwn

Fright paid bill of Lading: It refers to a bill of lading the

Freight collect bill of Lading: It is similar to freight to

 Bill of Exchange: This is also known as draft, which is drawn by the

2. offer and receipt of confirmed orders

3. Production and clearance of the products for exports

5. Negotiation of Document and realization of export proceeds

6. obtaining various export incentives

 Importer-Exporter Code Number(IEC Number):

 The Performa invoice includes the following items:

1. Packing and Marking:

 Shipping Bill: This is an exchange document needed by the customs

 Customs Examination of Cargo at Docks: The customs authorities

 A copy of the invoice duly attested by the customs

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