Export Documentation

Export documentation Once the goods are ready the exporter has to prepare

and execute various documents of different tags of sending the shipment of goods to the importer

The various documents are vital to the exporter and bank which is a media of payment

Importance of Export document As an evidence of shipment and title of goods

For obtaining payments

Transportation of the goods

Custom clearance of the goods

And many other purposes

Export document The documentary requirement are both regulatory and

operational in nature and have to comply with the rules and regulation with the Indian government as well as the importing countries for different type of products.

These requirement are different for different type of products

Accuracy and completeness are the prime necessities in documents covering export shipments

Export document cost Export documentation work constitutes a heavy charge

in exports activity

Its costly, complex and cumbersome

Minor discrepancies of any kind either in the date itself or any typing error in the document which looks harmless might proves costly

Export document Any alteration or addition made by an authority issuing

the documents should be endorsed properly, with the signature of the person issuing the document only

If the documents are not the correct ones and not filled properly the importers may not be able to get the goods when the ship carrying them arrives

Legal importance

Legal Importance Before granting the permission, the custom officer

however ensures that the goods being exported are in accordance with the different regulation particularly in terms of following:

The goods are same type, sort and values as declared by the exporter

The duty or cess livable has been properly determined and paid

Legal importance

Aligned documentation system The Government of India made it mandatory for every

exporter to use standardized preshipment export documents w.e.f. September 1,1991

This is properly known as aligned documentation system

The preshipment document on a standard layout was first introduced by Sweden in 1956

Paper size and specifications All documents under the system are to be prepared on

A4 size of paper

Standard margin 10mm---top 20mm----left

The size of the individual boxes should be as per the specification

Maximum tolerance is 1 mm

Specifications The captions inside the boxes should be printed in 6

points sans serif face and should be located as near on the top left corner of the boxes as possible

Documents need to generated mechanically

Paper should be found in stable form 50-60% relative humidity

Documentation practice in India In India, on an average about 25 documents are

associated with the preshipment stages to export transaction

These documents are classified in to two categories:

commercial

regulatory

Commercial Documents

Regulatory

Important documents Proforma invoice Commercial invoice Consular invoice Packing list Mate receipt Bill of lading Letter of Credit (not a export document)

Performa Invoice The starting point of the export contract is in a form of a

offer made by an exporter to the foreign customer

The offer made by an exporter is in the form of a proforma invoice

It is a quotation given as a reply to an enquiry

Importance of proforma invoice It forms the basis of all trade transaction

It may be useful for an importer to obtain the import license or foreign exchange

Commercial Invoice A commercial invoice is a bill for the goods from the

seller to the buyer

Its an important and basic export document

These invoices are often used by the government to determine the true value of goods for duty purposes

Significance

Significance

Consular invoice A consular invoice is a document that is required by

some countries It describes the shipment of goods and information such

as importer, exporter and value of the consignment for custom purposes

Kenya, Uganda, Tanzania, Mauritius, New Zealand, Myanmar, Iraq, Australia, Fiji, Cyprus, Nigeria, Ghana, Guinea,

Packing List Export packing list is considerably more detailed and

informative then a domestic packing list

It also shows the individual net, gross weight, and measurement for each package

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

Bill Of lading The bill of lading (in ocean transport), waybill or

consignment note for rail, air, or road transportation and receipt in postal or courier delivery are collectively known as transport document

Bill of lading is issued by shipping company or its agent stating that goods are either being shipped or have been shipped

Bill of lading

Bill of lading

Significance Bill of lading is the only evidence to file a

claim against a shipping company in the event of no delivery, defective delivery or the short delivery of the cargo at the destination