EXPORT DOCUMENTATION

Documented By

Mahavir Gaware & Group.

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.

WHAT IS THE PURPOSE OF EXPORT DOCUMENTATION?

Export documentation provides evidence that the negotiated terms between the buyer

and the seller have been complied with.

Export documentation provides important

information that is used by the seller, the freight companies, governments, and the buyer.

COMMON EXPORT DOCUMENTS

Pro forma invoice Bill of Lading Certificate of Origin Packing List Commercial Invoice Shippers export

Inspection certificate

Insurance certificate
Dock/warehouse receipt Letter of credit

Draft

declaration (SED)
Consular Invoice

Pro forma invoice - basically a price quote. Describes

the type and quantity of the goods to be shipped, value of the goods, total cost of the transaction based on the terms of sale, and other specifications.

Bill of lading - a contract between the seller and the

carrier. The BOL is usually prepared by the carrier of forwarder. It documents the condition of the goods upon the carriers acceptance. It is negotiable when it is consigned to order of meaning the buyer is allowed to take possession of the goods.

Certificate of Origin - a statement required by some

countries that certifies the origin of the exported goods (eg. The NAFTA certificate of origin)

Packing List - An itemized list describing the

contents of each package in a shipment. Used in determining the total weight and volume of a shipment and for verifying the cargo.

Commercial Invoice - Basically a bill for the

goods from the buyer to the seller

SED - a document required to be filed for every

shipment exceeding $2500 in value. It is used by the Department of Commerce to gather statistical information on the types, volume, value, and destination(s) of products exported from the U.S.

Consular Invoice - A document required by

some foreign governments for identifying and controlling imported goods

Inspection Certificate - a document required

by some foreign governments that certifies that the goods imported conform to the order

Insurance Certificate - the document

providing proof that the cargo (goods shipped) have been properly insured. (amount and type of insurance)

Dock/warehouse receipt - this document

transfers accountability from the seller to the carrier.

Letter of Credit - a letter from your customers

bank to you, in which the importers bank guarantees payment, provided that all the terms stated in the letter are met.

Draft - An unconditional order in writing from

the drawer to the drawee that directs the drawee to pay a specified amount to a named drawer at a fixed or determinable future date.

GR FORM - to be completed in duplicate for exports otherwise than by post including export of software in physical form i.e. magnetic tape/discs and paper media.

SDF FORM - to be completed in duplicate and appended to the Shipping Bill for export declare to the customs offices notified by the Central Government which have introduced EDI system for processing Shipping Bill.
PP FORM to be completed in duplicate for export by post. SOFTX - to be completed in triplicate for export of software otherwise than in the physical form i.e. magnetic tapes/discs and paper media.

EXPORT DOCUMENTATION

Export Documents
Commercial Documents Principal Auxiliary Regulatory Documents

EXPORT DOCUMENTATION
Out of the 15 commercial documents, eight are principal

and the rest are auxiliary. The eight principal documents are 1. The Commercial Invoice, 2. Packing List 3. Bill of Lading/Air Waybill 4. Certificate of Inspection/Quality control 5. Certificate of origin 6. Bill of Exchange and 7. Shipment Advice 8. Insurance Certificate

EXPORT DOCUMENTATION
The seven auxiliary documents are 1. Proforma Invoice

2. Intimation for inspection

3. Shipping instructions 4. Insurance Declaration

5. Application for certificate of origin.

6. Mate's Receipt 7. Letter to bank of collection/negotiation of

documents

EXPORT DOCUMENTATION
Regulatory Documents There are seven regulatory documents associated with

the pre-shipment stage of the export transaction. They are: 1. ARE Form ( for Central Excise) 2. Shipping Bill/Bill of Export(for Customs) - For export of goods Ex. Bond 3. Port Trust Copy of Shipping Bill/ Export Application/Dock Challan 4. Vehicle ticket 5. Exchange Control Declaration/GR/PP forms 6. Freight Payment Certificate 7. Insurance Premium Payment Certificate

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

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

TRANSPORT DOCUMENTS

Following documents are used in export as transport documents: Ocean freight: Bills of Lading Air Freight: Airway Bills / Air

a. b.

consignment note
c.

Rail/Road: Railway Receipt /Consignment Note Post: Post Parcel Receipt

d.

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.

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

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.

POST PARCEL RECEIPT

It evidences merely receipt of goods for exports

by post office
It is not treated as a document of title It is advisable to send post parcels in the name of

foreign correspondent bank instead of to the buyer

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

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
Sight Draft; Usance Draft

There is no standard format for Bill of Exchange

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

REGULATORY DOCUMENTS
ARE.1 Form It is used for claiming excise rebate / duty drawback from the GoI. The different copies of ARE.1/AR4 forms should be of different colors indicated below: Original---- White (Returned to Exporter) Duplicate--- Buff (Do) Triplicate--- Pink (Rebate sanctioning authority ) Quadruplicate---Green (Chief Accounts Officer at Collectorate Head Quarters) Quintuplicate---- Blue (Central Excise Officer) Sixtuplicate- Yellow (optional copy to exporter)

REGULATORY DOCUMENTS
ShippingBill 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)

OTHER DOCUMENTS
Freight Payment Certificate

It is like receipt for payment of freight Insurance Premium Payment Certificate It is like receipt for payment of insurance premium. Languages certificate Certificate of Chemical Analysis Conditioning certificate Antiquity Certificates Certificate of measurement Transshipment bill Shipping Order

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