Post on 04-Apr-2018
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IT IS ESSENTIAL TOUNDERSTAND THE
VARIOUS PROCEDUREINVOLVED WHILE
EXPORTING APPAREL.
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Pre-Shipment ProcedureO On receiving the requisition & purchase
order from merchant, documentation
department issue an invoiceO Two invoice are prepared
1. Commercial invoice
2. Custom invoice
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InvoiceO Commercial invoice:
contains all the information required for th
e preparation of other documents. It isactually a sellers bill of merchandise,
giving details about the goods shipped.
O Customs invoice: It is an invoice made on
specified format for the Custom official to
determine the value etc as prescribed by
the authorities of the importing country
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Cont
O Packing list is prepared
O GSP certificate is prepared if exported to
EU or countries mentioned in the GSP listO Inspection certificate is issued
O Certificate of origin is also issued if
required
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Documents given to customs
for reference1. Custom invoice
2. Packing list
3. IEC certificate4. Purchase order or L/C ,if required
5. Custom annexure
O On receipt of above document, customs
will issue clearance certificate.
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Following documents sent to
buying houseO Invoice
O Packing list
O GSPO Certificate or origin
O Wearing apparel sheet
O A copy of FCR/airway bill/ Bill of lading
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Cont..O Buyer collects the consignment from
destination port by showing the following
documents1. Invoice
2. Packing List
3. Bill of Lading/FCR/Airway Bill
O On shipment of goods, exporter will sendthe documents to the importers bank
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Post-Shipment ProcedureO A foreign buyer will make payment in two
ways:
1. TT
2. Letter of creditO If the payment term are confirmed L/C then
the payment will be made by the foreign bankon receiving the following documents
1. Invoice
2. Packing list3. B/L
4. Any other required by the buyer or thecountry of import
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Payment termO The payment term can be :
1. At sight
2. Within 15 days from Bill of Lading or AirwayBill date.
3. Within 30 days from Bill of Lading or AirwayBill date.
4. Within 60 days from Bill of Lading or AirwayBill date.
5. Within 90 days from Bill of Lading or AirwayBill date.
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Payment term cont
O After shipment, exporter sends the
documents to the buyers bank for
paymentO On confirmation, the buyer bank will make
payment in the foreign currency
O Transaction will be bank to bank
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Cont.
O The domestic branch will credit the
exporters account, in Indian rupees.
O If payment is through wire transfer, thepayment will be made as per terms
agreed by the exporter (i.e. 50% advance
& remaining 50% on shipment)
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