Export Import

ALIGNED DOCUMENTATION

SYSTEM

Import - Export Policy of India

Why do we need export Export means trade across the political

boundaries of different nation. No Nation is self sufficient and had all the goods that it needs.

This happens because of climatic variation & unequal distribution of natural resources. As a result, countries all over the world have become interdependent, which necessitated foreign trade.

A developing country like India with its fast growing agricultural production to keep pace with the population to keep pace with the population growth and growing Industrial infrastructure needs high-import and this can be sustained only with fast export growth.

To meet the oil import bill, export is unavoidable. Thus, it is evident that export promotion continues to be a major thrust area for the government. Several measures have been under taken in the past for improving export performance of the country.

. In India, Govt. has come out from time to time with various policies on foreign trade to promote export thereby increasing the “Foreign Exchange Reserve”. These policies are termed as “Exim Policy”

. Import export act was introduced by gov during

second world war and it lasted for around 45 yrs and in June 1992 this act was superceded by the Foreign Trade (Development & Regulation Act), 1992. . The basic objective of this new act was to give effect to the new liberalized export and import policy of the Govt. till 1985 annual policies were made but from 1985-92, three yr policy was made and then 5 yr policy was made coinciding with 5 yr plans 1992-97, 1997-02, 2002-07.

Brief history

What is Exim Policy?

It contains policies in the sphere of Foreign trade i.e. with respect to import & export from the country and more especially export promotion measures, policies and procedure related there to.

Export means selling abroad and import as bringing into India, any goods and services

Objective of Exim Policy Accelerating the country’s transition to a globally

oriented vibrant economy with a view to derive maximum benefits from expanding global market opportunities;

Stimulating sustained economic growth Enhancing the technological strength and efficiency Encouraging the attainment of internationally

accepted standards of quality Providing consumers with good quality products and

services at reasonable prices.

General provisions regarding export importExports and Imports free unless regulated Compliance with Laws Interpretation of Policy Procedure:Exemption from Policy/ Procedure Principles of Restriction Restricted Goods Terms and Conditions of a Licence Importer-Exporter Code Number Exemption from Bank Guarantee Clearance of Goods from Customs

EXPORT PROMOTION MEASURES Policy measures Institutional set up. Import Facilitation for Export Production. Cash subsidies. Fiscal Incentives. Foreign Exchange Facilities. Export incentives Export production units

Export DocumentationExport Documentation

The paperwork that is required for an export sales The paperwork that is required for an export sales transactiontransaction

The means by which the shipping process is The means by which the shipping process is facilitated and recorded.facilitated and recorded.

Documentation is essential for moving goods Documentation is essential for moving goods through the channels of distribution, transferring through the channels of distribution, transferring responsibility or possession, clearing goods responsibility or possession, clearing goods through customs, and facilitating payment through customs, and facilitating payment according to the agreed upon terms.according to the agreed upon terms.

Standardised DocumentsStandardised Documents

Types Of Standardized Pre-Shipment Documents

New Standardised DocumentNew Standardised Document

Aligned Documentation SystemAligned Documentation System Meaning:

A methodology of creating information as a set of standardized forms printed on paper of same size in such a way that items of identical information occupy the same position of each form.

Objectives of ADSObjectives of ADS To simplify, rationalize and prioritize information

To achieve economy of time and effort involved in the present methodology of export documentation.

 

Advantages Of ADSAdvantages Of ADS UniformityUniformity Generates many copiesGenerates many copies Ensures convenienceEnsures convenience Facilitates expeditious checkingFacilitates expeditious checking Easy to handleEasy to handle

Shipping DocumentsShipping Documents Commercial DocumentsCommercial Documents

Regulatory DocumentsRegulatory Documents

Commercial DocumentsCommercial Documents Proforma InvoiceProforma Invoice Commercial InvoiceCommercial Invoice Packing ListPacking List Certificate Of OriginCertificate Of Origin Mate’s ReceiptMate’s Receipt Bill of LadingBill of Lading Bill Of ExchangeBill Of Exchange

Proforma InvoiceProforma Invoice Document that states a commitment from the seller Document that states a commitment from the seller

to sell goods to the buyer at specified prices and to sell goods to the buyer at specified prices and termsterms

Quote in an invoice format Quote in an invoice format

Usually issued by the exporting companyUsually issued by the exporting company

Same information as the formal quotationSame information as the formal quotation

Contents in Proforma InvoiceContents in Proforma Invoice Description of itemDescription of item Type of currency Type of currency Terms of paymentTerms of payment Costs associated with freight and insuranceCosts associated with freight and insurance Buyers & sellers name & addressBuyers & sellers name & address Prices of items: per unit and extended totalsPrices of items: per unit and extended totals Weights and dimensions of quoted productsWeights and dimensions of quoted products Estimated shipping dateEstimated shipping date

Commercial InvoiceCommercial Invoice Document showing the value of goods exportedDocument showing the value of goods exported

It includes:It includes: - customs invoice- customs invoice - legalized invoice- legalized invoice - consular invoice- consular invoice

Customs Invoice: It is made on the specific forms supplied by the consular office of the respective importer, duly filled and signed by the shipper and serve the purpose of making easy entry of the merchandise into the importing country usually at the preferential tariff. 

 

Consular Invoice+ Issued by Usually by the Beneficiary and countersigned by a Chamber of Commerce and embassy or consulate of the importing country residing in the country of export.+ Content: Describes details of goods and price.+ Purpose: For the records of the country of import, and accordingly this document may be required for clearance of goods at the destination.

2. Legalized Invoice+ Issued by the Beneficiary in terms similar to a commercial invoice and in terms of the Credit with the exception that the invoice must evidence that it has been legalized by the embassy of the county of import in the country of export.

+ Content: As per commercial invoice together with the legalization notation is effected either by a notary and/or embassy or consulate of the country of import.

+ Purpose To satisfy the control authorities of the country of import

Certificate of origin v/s consular invoice

Commercial Invoice v/s Consular Invoice

Packing listPacking list

A list showing the details of goods contained in A list showing the details of goods contained in each parcel/shipment.each parcel/shipment.

Detailed view of item-by-item the containers to Detailed view of item-by-item the containers to enable the buyer/receiver of shipment to check the enable the buyer/receiver of shipment to check the shipment. shipment.

It is prepared at the time of exports immediately It is prepared at the time of exports immediately after inspection and certification by central excise after inspection and certification by central excise inspector. inspector.

Packing list includesPacking list includes Name and address-shipper & consigneeName and address-shipper & consignee WeightWeight QuantityQuantity DescriptionDescription Order numberOrder number Exporting CarrierExporting Carrier

Cont.…. It itemizes the material in each individual It itemizes the material in each individual

package and indicates the type of package: box, package and indicates the type of package: box, crate, drum, carton, and so on. crate, drum, carton, and so on.

It shows individual net, legal, and gross weights It shows individual net, legal, and gross weights and measurements for each package . and measurements for each package .

The list is used by the shipper or forwarding The list is used by the shipper or forwarding agent to determine the total shipment weight agent to determine the total shipment weight and volume and whether the correct cargo is and volume and whether the correct cargo is being shipped. being shipped.

Presented to…Presented to… Excise inspectorExcise inspector

Customs Customs

Duty drawback cell of customsDuty drawback cell of customs

Certificate of originCertificate of origin It traditionally states from what country the It traditionally states from what country the

shipped goods shipped goods originateoriginate. .

It is require to claim preferential tariffs.It is require to claim preferential tariffs.

Helps prove that the product is allowed into that Helps prove that the product is allowed into that particular country.particular country.

Issued byIssued by Chamber of commerceChamber of commerce

Export promotion council(EPC)Export promotion council(EPC)

Commodity boardsCommodity boards

Captain’s/Mate receiptCaptain’s/Mate receipt Temporary receipt issued for goods, which have been Temporary receipt issued for goods, which have been

delivered to the vessel.delivered to the vessel.

Acknowledgement that the ship owner has received the Acknowledgement that the ship owner has received the goods in the condition stated.goods in the condition stated.

Preliminary document only, which is later given up in Preliminary document only, which is later given up in return for the bill of lading.return for the bill of lading.

When the Chief Officer signs the receipt for goods he is When the Chief Officer signs the receipt for goods he is personally liable for any deficiency in the number proved personally liable for any deficiency in the number proved to exist on discharge of the good.to exist on discharge of the good.

ContCont.…. Mate's Receipts should be issued on ship's forms and Mate's Receipts should be issued on ship's forms and

numbered.numbered.

The number in dispute should clearly be stated in The number in dispute should clearly be stated in words on the receipt which there is agreement being words on the receipt which there is agreement being separately shown .separately shown .

Mate's receipts should be endorsed "at shipper's risk Mate's receipts should be endorsed "at shipper's risk until actually shipped.until actually shipped.

ContentContent Name of the shipperName of the shipper Place of receiptPlace of receipt Voyage NumberVoyage Number Port of LoadingPort of Loading Port of DischargePort of Discharge Place of DeliveryPlace of Delivery Container NumberContainer Number Description of GoodsDescription of Goods Gross WeightGross Weight

Bill of LadingBill of Lading A document issued by a carrier or by a shipper's agent A document issued by a carrier or by a shipper's agent

that identifies the goods received for shipment, where that identifies the goods received for shipment, where the goods are to be delivered, and who is entitled to the goods are to be delivered, and who is entitled to receive the shipment.receive the shipment.

It is evidence that a valid contract of carriage exists, It is evidence that a valid contract of carriage exists, and it may incorporate the full terms of the contract and it may incorporate the full terms of the contract between the consignor and the carrier by reference .between the consignor and the carrier by reference .

Types of bills of ladingTypes of bills of lading1. Straight Bill of Lading: This is typically used when

shipping to a customer. The "Straight Bill of Lading" is for shipping items that have already been paid for.

 2. To Order Bill of Lading: Used for shipments when

payment is not made in advance. This can be shipping to one of your distributors or a customer on terms.

3. Clean Bill of Lading: A Clean Bill of Lading is simply a BOL that the shipping carrier has to sign off on saying that when the packages were loaded they were in good condition. If the packages are damaged or the cargo is marred in some way (rusted metal, stained paper, etc.), they will need to issue a "Soiled Bill of Lading" or a "Foul Bill of Lading."

 

4. Inland Bill of Lading: This allows the shipping carrier to ship cargo, by road or rail, across domestic land, but not over seas.

5. Stale Bill of Lading: Occasionally in cases of short-over-seas cargo transportation, the cargo arrives to port before the Bill of Lading. When that happens, the Bill of Lading is then "stale."

6. Through Bill of Lading: Through Bills of Lading are a little more complex than most BOLs. It allows for the shipping carrier to pass the cargo through several different modes of transportation and/or several different distribution centers. This Bill of Lading needs to include an Inland Bill of Lading and/or an Ocean Bill of Lading depending on its final destination.

7. Multimodal/Combined Transport Bill of Lading: This is a type of Through Bill of Lading that involves a minimum of two different modes of transport, land or ocean. The modes of transportation can be anything from freight boat to air.

 

ContentContent Name of the shipping companyName of the shipping company Shipper's name Shipper's name Order and notify partyOrder and notify party Description of GoodsDescription of Goods Gross/net/tare weightGross/net/tare weight Freight rate/Measurements and weight of Freight rate/Measurements and weight of

goods/Total freightgoods/Total freight

Parties involvedParties involved Exporter Exporter Importer Importer Forwarding agentForwarding agent Insurance companyInsurance company Shipping lineShipping line Customs and authorise dealerCustoms and authorise dealer

Bills of exchangeBills of exchange A bill of exchange or "draft" is a written order by the A bill of exchange or "draft" is a written order by the

drawer to the drawee to pay money to the payee.drawer to the drawee to pay money to the payee.

It is a negotiable financial instrument by the drawer It is a negotiable financial instrument by the drawer (creditor) to the drawee (debtor) to pay a certain (creditor) to the drawee (debtor) to pay a certain amount of money at a matured date.amount of money at a matured date.

They are used primarily in international trade, and They are used primarily in international trade, and are written orders by one person to his bank to pay are written orders by one person to his bank to pay the bearer a specific sum on a specific date.the bearer a specific sum on a specific date.

Parties to Bill of ExchangeParties to Bill of Exchange DrawerDrawer

Drawee Drawee

Payee Payee

Special featuresSpecial features A Bill Of Exchange is an instrument in writingA Bill Of Exchange is an instrument in writing It must be signed by the makerIt must be signed by the maker It contains an unconditional orderIt contains an unconditional order The order must be to pay money onlyThe order must be to pay money only The sum payable must be specificThe sum payable must be specific The amount must be paid within a stipulated timeThe amount must be paid within a stipulated time The name of the drawee must be clearly mentionedThe name of the drawee must be clearly mentioned It must be dated and stampedIt must be dated and stamped

AdvantagesAdvantages A Bill of Exchange is used in settlement of debts A Bill of Exchange is used in settlement of debts

It fixes the date of paymentIt fixes the date of payment

It is a written and signed acknowledgement of debtIt is a written and signed acknowledgement of debt

A debtor enjoys full period of creditA debtor enjoys full period of credit

A drawer can convert the bill into cash by getting it A drawer can convert the bill into cash by getting it discounted with the bankdiscounted with the bank

Regulatory DocumentsRegulatory Documents Freight Payment CertificateFreight Payment Certificate

Vehicle TicketVehicle Ticket

Receipt for payment of Port ChargesReceipt for payment of Port Charges

Shipping BillShipping Bill

Shipping billShipping bill The Shipping Bill/ Bill of Export are the main The Shipping Bill/ Bill of Export are the main

document required by the Customs Authority for document required by the Customs Authority for allowing shipment for all products exported allowing shipment for all products exported

It is a document prescribed under custom act 1962 It is a document prescribed under custom act 1962 for allowing shipment of cargo by customs authorityfor allowing shipment of cargo by customs authority

It is prepared by custom house agentIt is prepared by custom house agent

Parties involvedParties involved ExporterExporter ImporterImporter Central exciseCentral excise Forwarding agentForwarding agent Insurance companyInsurance company Customs departmentCustoms department Inspection agencyInspection agency

Documents requiredDocuments required GR forms (in duplicate) for shipment to all the GR forms (in duplicate) for shipment to all the

countries.countries. Four copies of the packing list mentioning the contents, Four copies of the packing list mentioning the contents,

quantity, gross and net weight of each packagequantity, gross and net weight of each package Four copies of invoices which contains all relevant Four copies of invoices which contains all relevant

particulars like number of packages, quantity, unit rate, particulars like number of packages, quantity, unit rate, total f.o.b./ c.i.f. value, correct & full description of total f.o.b./ c.i.f. value, correct & full description of goods.goods.

L/C, Purchase Order of the overseas buyer.L/C, Purchase Order of the overseas buyer. AR4 (both original and duplicate) and invoice.AR4 (both original and duplicate) and invoice. Inspection/ Examination Certificate.Inspection/ Examination Certificate.

ContentsContents Name and address of exporter and consigneeName and address of exporter and consignee Port of shipmentPort of shipment Country of destinationCountry of destination No.of packages No.of packages Nature of contractNature of contract Description of goods Description of goods

Types of shipping billTypes of shipping bill Duty free goods shipping billDuty free goods shipping bill

Dutiable goods shipping billDutiable goods shipping bill

Drawback shipping billDrawback shipping bill

Entitlement of credit of duty under DEPB schemeEntitlement of credit of duty under DEPB scheme

Shipping bill for shipment of excise bondShipping bill for shipment of excise bond

FormatsFormats White Shipping Bill in triplicate for export of duty free of White Shipping Bill in triplicate for export of duty free of

goods.goods.

Green Shipping Bill in quadruplicate for the export of Green Shipping Bill in quadruplicate for the export of goods which are under claim for duty drawbackgoods which are under claim for duty drawback

Yellow Shipping Bill in triplicate for the export of Yellow Shipping Bill in triplicate for the export of dutiable goods,dutiable goods,

Blue Shipping Bill in 7 copies for exports under the Blue Shipping Bill in 7 copies for exports under the DEPB schemeDEPB scheme

Letter Letter of Creditof Credit

Summary of a Summary of a contract between contract between seller and buyer seller and buyer with the bank(s) with the bank(s) as refereeas referee..

Cont..….Cont..…. A letter of credit is a commercial instrument used as a A letter of credit is a commercial instrument used as a

means of financing international business transaction.means of financing international business transaction.

It is a contract under which a bank agrees to pay the It is a contract under which a bank agrees to pay the seller in connection with the export of specific goods seller in connection with the export of specific goods against the presentation of specified documents against the presentation of specified documents relating to those goods.relating to those goods.

The credit is issued at the request of the buyer (the The credit is issued at the request of the buyer (the applicant) in favour of the seller (the beneficiary)”.applicant) in favour of the seller (the beneficiary)”.

Parties to an L/CParties to an L/C

The buyer (the applicant).The buyer (the applicant).

The issuing bank.The issuing bank.

The advising bank (may also be the correspondent, The advising bank (may also be the correspondent, nominated, confirming bank).nominated, confirming bank).

The seller (the beneficiaryThe seller (the beneficiary).

Types of L/CTypes of L/C

Revocable L/CRevocable L/C Irrevocable L/CIrrevocable L/C Confirmed L/CConfirmed L/C Transferable L/CTransferable L/C Back to back L/CBack to back L/C Revolving L/CRevolving L/C

Routing of L/CRouting of L/C

Export Inspection AgencyExport Inspection Agency Need for inspectionNeed for inspection Coverages and applicabilityCoverages and applicability Procedures/DocumentationProcedures/Documentation Validity of CertificateValidity of Certificate Testing OrganizationTesting Organization Bonafide SamplesBonafide Samples

Central Excise FormalitiesCentral Excise Formalities Background Background Requirement of Export ConsignmentRequirement of Export Consignment Procedures/DocumentationProcedures/Documentation Sanctioning authoritySanctioning authority Parties concernedParties concerned

Formalities with Insurance Co.Formalities with Insurance Co. BackgroundBackground NecessitiesNecessities Types of Marine InsuranceTypes of Marine Insurance PremiumPremium Modus OperandiModus Operandi Types of Insurance PolicyTypes of Insurance Policy Fundamental principles involvesFundamental principles involves Parties involvedParties involved