Dr Asif Ali Syed Asst Professor Dept of Business Admn AMU 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 ID: 1019536
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1. Presentation onExport DocumentationDr. Asif Ali SyedAsst. ProfessorDept. of Business Admn.AMU
2. Export documentationOnce the goods are ready, the exporter has to prepare and execute various documents of different tags of sending the shipment of goods to the importerThe various documents are vital to the exporter and bank which is a media of payment.
3. Importance of Export documentAs an evidence of shipment and title of goodsFor obtaining payments Transportation of the goodsCustom clearance of the goodsAnd many other purposes
4. Aligned documentation systemThe Government of India made it mandatory for every exporter to use standardized preshipment export documents w.e.f. September 1,1991This is properly known as aligned documentation systemThe preshipment document on a standard layout was first introduced by Sweden in 1956
5. Paper size and specificationsAll documents under the system are to be prepared on A4 size of paperStandard margin 10mm---top 20mm----leftThe size of the individual boxes should be as per the specificationMaximum tolerance is 1 mm
6. SpecificationsThe 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 possibleDocuments need to generated mechanicallyPaper should be found in stable form 50-60% relative humidity
7. Documentation practice in India In India, on an average about 24 documents are associated with the preshipment stages to export transactionThese documents are classified in to two categories: Commercial Documents Regulatory Documents
8. Proforma Invoice An abridged or estimated invoice sent by a seller to a buyer in advance of a shipment or delivery of goodsPro forma invoices are commonly used as preliminary invoices with a quotation, or for customs purposes in importationA pro forma invoice is similar to the actual commercial invoice sent to a customer requesting payment for goods and services
9. Contents Exporter's name, address, telephone number and e-mail address. Sold to name, address, telephone number and e-mail address. Pro forma invoice reference number. Date issued. The date of the pro forma invoice is the date of the quotation. Customer’s Inquiry reference number or purchase order number, if available.
10. Terms of payment Exporters banking details for advising /negotiating LC or SWIFT code details for Wire Transfer. Estimated date of shipment. If more than one product, number each product beginning with number 1. Type of Delivery & shipment : Full in one lot or partial. Quantity shipped per lot. Contd…..
11. Full product descriptionIndicate clearly currency used (USD, euro, yen etc.)Terms of sale using latest INCOTERMS (FOB, CIF, CFR, DDU etc.- named port or destination). Identify the number of unit measure, weight, case, pallets, box, etc.Contd…..
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13. Terms & Conditions
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15. Five Steps
16. SignificanceOnce a final proforma invoice is generated and accepted, it can assist the buyer in:the establishment of a letter of credit (L/C) through his bank;obtaining import and foreign exchange permits from his local government;seeking additional financing for the project;fulfilling the requirements of his country’s import licensing procedures.
17. Commercial InvoiceIt is the basic document in an export transaction.A Document Identifying the seller and buyer of goods and services.Identify numbers such as invoice number, date, shipping date, mode of transport, delivery and payment terms, and a complete listing and description of the goods and services being sold including prices, discounts and quantities.
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20. Commercial invoice contains the complete details of the exporter order right from order number to quantity, rate, packaging, mode of dispatch and shipping particulars. Commercial invoice often used by governments to determine the true(transaction) value of goods for the assessment of customs duties and also to prepare consular documentation. Governments using the commercial invoice to control import often specify its form, content, number of copies, language to be used, and other characteristics.
21. Objectives:It serves as the exporter’s bill as it indicates the total chargeable amount.It provides both the consignor’s and consignee’s details and the order number.It gives the complete details of goods being shipped. Corresponding to the export order and letter of credit.Invoice depicts both the quantity and packing in accordance with the specifications of the export contract.It also lists the terms of delivery and payment that are to be as per the letter of credit/export contract.
22. Different segments of Commercial Invoice:ExporterConsigneeBuyerReferences and numbers with date.Country of origin of Goods.Country of Final destination.Terms of Delivery and Payment.Pre-Carriage By.
23. ix. Place of Receipt by Pre-Carrier.x. Vessel/Flight Number.xi. Port of Loading.xii. Port of Discharge.xiii. Final Destination.xiv. Mark Numbers and Container Number.xv. Number and kind of Package.xvi. Description of Goods.xvii. Quantity Rate and Amount.Xviii. Signature with Date.
24. Specific Commercial Invoice as per Customer/ requirements of their Countries.Consular Invoice:Some countries use this as non-tariff barrier.Exporter required to get commercial invoice verified by Embassy/Consulate of the importer’s country in his country’s.This certification done by way of seal/stamp from commercial section on payment of requisite processing fee.
25. 2. Legalized invoice:Commercial invoice certified by local chamber of commerce in the exporting country to verify the correctness of invoice.This commercial invoice becomes legalized for the importing country.
26. 3. Custom Invoice:Here, the importing country requires the commercial invoice to be prepared in its own prescribed format.Usually a safeguard against dumping activity. The information required is almost the same and the exporter is required to self-attest such invoices.
27. Packing listalso known as a bill of parcel, unpacking note, packaging slip, (delivery) docket, delivery list, manifest or customer receipt, shipping list.Is a document which details the contents, and often dimensions and weight, of each package or container. It serves to inform all parties involved with shipping, including transport agencies, government authorities, and customers, about the contents of the package. This helps them deal with the package accordingly.
28. This is a formal document that itemises quite a number of details about the cargo such as:The name of the exporter (shipper) and their contact details (tel, fax, cell, e-mail), including physical (not postal) address.The name of the importer (consignee) and their contact details (tel, fax, cell, e-mail), including physical (not postal) address.The GROSS (i.e. the weight of the product and packaging - that is, the total weight), TARE (i.e. the weight of the packaging without any contents) and NET (i.e. the weight of the product only) weights of the cargo.The nature, quality and specifications of the product being shipped
29. Contd..The type of package (such as pallet, box, crate, drum, carton, etc.)The measurements/dimensions of each packageThe number of pallets/boxes/crates/drums, etc.The package markings, if any, as well as shipper's and buyer's reference numbersA purchase order number or similar reference to correspondence between the supplier and importerAn indication of who the carrier is (airline, shipping line or road hauler)Reference to the Bill of Lading or Air Waybill number
30. Purpose of packing listThe packing list should be attached to the outside of a package in a waterproof envelope or plastic sheath marked "Packing list enclosed". The list is used by the shipper or forwarding agent to determine:(1) the total shipment weight and volume and (2) whether the correct cargo is being shipped. Packing lists come in fairly standard forms and can be obtained from the concerned freight forwarder.
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32. A shipper gives instructions to the freight forwarder in the formof a document known as a shipper’s letter of instructions. Thisdocument may also be called a shipping instruction blank orshipper’s instructions. Shipper’s letter of instructions
33. This facilitates the preparation of bill of lading and other documents by the shipping agent.Also known as Cargo Declaration Form, it usually contains information about:marks on casescountry of originnumber of packagesname and address of the consigneeexporter's name and addressinvoice valuesteamer freight payable etc.
34. Contd..A Shipper's Letter of Instruction may be presented in a variety of forms. The freight forwarder may provide his/her own forms.If they don’t, a standard Shipper's Letter of Instruction form may be purchased from one of the many stationers who publish such forms.If a routine procedure has been established, an in-house printed form or letter designed according to the normal terms and conditions of sale of the products would be used.
35. Intimation of InspectionWhenever the consignment requires the pre-shipment inspection, necessary application is to be made to the concerned inspection agency for conducting the inspection and issue of certificate thereof.The processor/exporter intending to export products/goods shall submit an application in the prescribed pro-forma in duplicate to the nearest office of the EIA alongwith the bank draft for the required inspection fee, invoice and the purchase order with the contractual specification, if any, at least five days before the date of shipment.
36. Intimation of InspectionAfter proper scrutiny of the application, an officer not below the rank of Technical Officer will be deputed to carry out the quality control and inspection of the consignment offered.
37. Place of InspectionThe quality control and inspection of goods will be carried out at the exporter’s premises, which shall be well lighted and maintained in good condition.The exporter shall provide all the necessary facilities to carry out the inspection.The EIA has the right to assess the quality of the consignment at any place of storage, transit or at dock before the shipment.
38. Procedure of InspectionThe officer authorized to undertake the inspection of the goods will verify the lot to ensure that the same conforms to the details given in the declaration with respect to number, variety, marking etc.The product will be verified by the officer to ascertain that the same is meeting the standard specifications stipulated in the GOI Order S.O 2876 dt. 28.08.02 and the additional standards if any, stipulated in the Export Contract.In case the consignment, for which application for inspection has been filed, is found to be not ready at the time of visit of the inspecting officer, the exporter shall forfeit the inspection fee relating to the consignment and the action on the application will be treated as complete. In such situation, the exporter will need to apply afresh and carry out all formalities specified in this regard.
39. Intimation of Inspection document
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41. Certificate of inspectionIn the sales contract the parties may agree that the goods are to be of a certain grade or quality. It would be a problem if the goods arrived and a dispute arose as to whether or not they met the agreed standard, So, often, the parties agree to have an independent party or government employee inspect the goods and give written assurance that they meet the standards. The document prepared by this inspector is called an Inspection Certificate.
42. Certificate of inspectionAn inspection certificate provides proof that what you areshipping is, in fact, what the customer ordered, and is also of good quality. If a customer requests this document, agree to it – but one should see that they cover the administrative and inspection fee.
43. A number of countries’ governments have ongoing relationships with international inspection companies to verify the quantity, quality, and price of shipments imported into their countries. Four such companies are:1. Bureau Veritas Group (www.bureauveritas.com/)2. Cotecna (www.cotecna.com)3. Intertek (www.intertek.com/inspection/)4. SGS (www.us.sgs.com/)
44. Export Inspection Council (EIC)The Export Inspection Council (EIC) was set up by the Government of India under Section 3 of the Export (Quality Control and Inspection) Act, 1963.It includes more than 1000 commodities which are organized into various groups for a compulsory pre-shipment inspection. It includes Food and Agriculture, Fishery, Minerals, Organic and Inorganic Chemicals, Rubber Products, Refractoriness, Ceramic Products etc.
45. Some certifications in IndiaISI CertificationAgmark CertificationIn-Process Quality Control (IPQC)ISO 9000
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47. Thank You