PROCEDURES AND LIST OF DOCUMENTS REQUIRED FOR EXPORT

 LIST OF DOCUMENTS

1. Commercial invoice

2. Bill of lading

3. Consular invoice

4. Certificate of origin

5. Inspection certification

6. Dock receipt and warehouse receipt

7. Destination control statement

8. Insurance certificate

9. Export license

10. Export packing list

 PROCEDURE

STEP1: Enquiry :

• The starting point for any Export Transaction is an enquiry.

• An enquiry for product should, inter alia, specify the following details or provide the following data

• Size details ‐ Std. or oversize or undersize

• Drawing, if available

• Sample, if possible

• Quantity required

• Delivery schedule

• Is the price required on FOB or C& F or CIF basis

• Mode of Dispatch ‐ Sea, air or Sea/air

• Mode of Packing

• Terms of Payment that would be acceptable to the Buyer ‐ If the buyer proposes to open any Letter of
Credit, any specific requirement to be complied with by the Exporter

• Is there any requirement of Pre‐shipment inspection and if so, by which agency

• Any Certificate of Origin required ‐ If so, from what agency.

• After studying the enquiry in detail, the exporter ‐ be it Manufacturer Exporter or Merchant Exporter ‐
will provide a Proforma Invoice to the Buyer.

STEP 3: Order placement :

• If the offer is acceptable to the Buyer in terms of price, delivery and payment terms, the Buyer will
then place an order on the Exporter, giving as much data as possible in terms of specifications, Part
No. Quantity etc. (No standard format is required for such a purchase order)

STEP 4: Order acceptance :

• It is advisable that the Exporter immediately acknowledges receipt of the order, giving a schedule for
the delivery committed.

STEP 5: Goods readiness & documentation :

• Once the goods are ready duly packed in Export worthy cases/cartons (depending upon the mode of
despatch), the Invoice is prepared by the Exporter.

• If the number of packages is more than one, a packing list is a must.

• Even If the goods to be exported are excisable, no excise duty need be charged at the time of Export,
as export goods are exempt from Central Excise, but the AR4 procedure is to be followed for claiming
such an exemption.

• Similarly, no Sales Tax also is payable for export of goods.

STEP 6: Goods removal from works :

• There are different procedures for removing Export consignments to the Port, following the AR4
procedure, but it would be advisable to get the consignment sealed by the Central Excise authorities at
the factory premises itself, so that open inspection by Customs authorities at the Port can be avoided.

• If export consignments are removed from the factory of manufacture, following the AR4 procedure,
claiming exemption of excise duty, there is an obligation cast on the exporter to provide proof of
export to the Central Excise authorities
 STEP 7: Documents for C & F agent :

• The Exporter is expected to provide the following documents to the Clearing & Forwarding Agents,
who are entrusted with the task of shipping the consignments, either by air or by sea.

• Invoice

• Packing List

• Declaration in Form SDF (to meet the requirements as per FERA) in duplicate.

• AR4 ‐ first and the second copy

• Any other declarations, as required by Customs

• On account of the introduction of Electronic Data Interchange (EDI) system for processing shipping
bills electronically at most of the locations ‐ both for air or sea consignments ‐ the C&F Agents are
required to file with Customs the shipping documents, through a particular format, which will vary
depending on the nature of the shipment. Broad categories of export shipments are:

• Under claim of Drawback of duty

• Without claim of Drawback

• Export by a 100% EOU

• Under DEPB Scheme

STEP 8: Customs Clearance:

• After assessment of the shipping bill and examination of the cargo by Customs (where required), the
export consignments are permitted by Customs for ultimate Export. This is what the concerned Customs
officials call the ‘LET EXPORT’ endorsement on the shipping bill.

STEP 9: Document Forwarding:

• After completing the shipment formalities, the C & F Agents are expected to forward to the Exporter
the following documents:

• Customs signed Export Invoice & Packing List

• Duplicate of Form SDF

• Exchange control copy of the Shipping Bill, processed electronically

• AR4 (original duplicate) duly endorsed by Customs for having effected the Export

• Bill of Lading or Airway bill, as the case may be.

• With these authenticated shipping documents, the Exporter will have to negotiate the relevant export
bill through authorized dealers of Reserve Bank, viz., Banks.

• Under the Generalized System of Preference, imports from developing countries enjoy certain duty
concessions, for which the exporters in the developing countries are expected to furnish the GSP
Certificate of Origin to the Bankers, along with other shipping documents.

• Broadly, payment terms can be:

• DP Terms

• DA Terms

• Letter of Credit, payable at sight or payable at... days.

Step11: Bank to bank documents forwarding :

• The negotiating Bank will scrutinize the shipping documents and forward them to the Banker of the
importer, to enable him clear the consignment.

• It is expected of such authorized dealers of Reserve Bank to ensure receipt of export proceeds, which
factor has to be intimated to the Reserve Bank by means of periodical Returns.

STEP 12: Customs obligation discharge :

• As indicated above, Exporters are also expected to provide proof of export to the Central Excise
authorities, on the basis of the Customs endorsements made on the reverse of AR4s and get their
obligation, on this score, discharged.

STEP 13: Receipt of Bank certificate :

• Authorized dealers will issue Bank Certificates to the exporter, once the payment is received and only
with the issuance of the Bank Certificate, the export transaction becomes complete.

• It is mandatory on the part of the Exporters to negotiate the shipping documents only through
authorized dealers of Reserve Bank, as only through such a system Reserve Bank can ensure receipt of
export proceeds for goods shipped out of this country.