EXPORT IMPORT MANAGEMENT

MODULE-2
PROCEDURE

Learning objectives:
• To familiarize the student to understand the family business system in
India.
• To ensure students understand the vision, core competencies and
competitive advantages.

Learning outcomes:
• A student should be able to understand the flow of Indian family
business.
• A student will know the core competencies and intrapreneurship.

EXIM

India’s Foreign Trade i.e. export and import by foreign trade policy notified by
central government in exercise of powers conferred by section 5 of foreign trade
(Development and Regulation) Act 1992. which empowers the federal
government to make provisions for development and regulation of foreign trade.
Businesses planning to set up a trading company, or start importing or exporting
from India, must understand the stages and stakeholders involved in the process,
as well as the regulatory framework and documentation required.
EXPORT IMPORT PROCEDURE IN INDIA

Foreign trade in India is regulated by the Foreign Trade (Development and

Regulation) Act, 1992, and all relevant provisions and policies are developed by
the central government.

The promotion and facilitation of foreign trade in India is managed by the

Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce
and Industry (MoCI).

To begin exporting or importing goods from India, the business or

individual must obtain an Import Export Code or IE Code from the

Directorate General of Foreign Trade. Obtain the IE Code from the

business after obtaining PAN and opening a bank account. India Filings

can help you obtain IE Code.

An individual or a company should be registered as an EXIM unit before

operating in foreign trade activities.

o Steps
1. Company Registration
Registration of company as a sole proprietary concern/ partnership
firm/or company under the Companies Act 2013.
2. Bank Account Opening
The company should have a current bank account with a bank
authorised in foreign exchange.
3. Obtain Import Export Code (IEC) and PAN
 Business needs to obtain an Import Export Code (IEC) number from
the regional joint Directorate General of Foreign Trade (DGFT).
Business should also have a Permanent Account Number (PAN)
from the Income Tax Department.
4. Registration cum Membership Certificate
Business can avail incentives under different schemes by obtaining
Registration cum Membership Certificate (RCMC) from the Export
Promotion Council (EPC)/Federation of Indian Export Organisation
(FIEO)/ Commodity Boards.
5. Risk Coverage Policy
Export Credit Guarantee Corporation (ECGC) through an
appropriate insurance policy covers the credit risk in foreign trade in
India.

¨ All export or import applications must be filed with the DGFT.

¨ Export of some products needs separate export licences and these
products are included under the Special Chemicals, Organisms,
Materials, Equipment and Technologies (SCOMET) list.
¨ Separate applications are required for exports from Electronic Data
Interchange (EDI) and Non-EDI ports in India.
¨ Responsibilities of buyers and sellers are listed in sale contract
called Incoterms.
¨ Other important export import procedures and documentation
include the following:
 i. GST Return Forms (GSTR 1 and GSTR 2)
ii. GSTR Refund Form
iii. Exchange Control Declaration
iv. Bank Realisation Certificate
v. Registration cum Membership Certificate (RCMC)

Import procedures

Typically, the procedure for import and export activities involves ensuring
licensing and compliance before the shipping of goods, arranging for transport
and warehousing after the unloading of goods, and getting customs clearance as
well as paying taxes before the release of goods.

Below, we outline the steps involved in importing of goods.

1. Obtain IEC

Prior to importing from India, every business must first obtain an Import Export
Code (IEC) number from the regional joint DGFT. The IEC is a pan-based
registration of traders with lifetime validity and is required for clearing customs,
sending shipments, as well as for sending or receiving money in foreign currency.

The process to obtain the IEC registration takes about 10-15 days.

2. Ensure legal compliance under different trade laws

Once an IEC is allotted, businesses may import goods that are compliant with
Section 11 of the Customs Act (1962), Foreign Trade (Development &
Regulation) Act (1992).

However, certain items – restricted, canalized, or prohibited, as declared and

notified by the government – require additional permission and licenses from the
DGFT and the federal government.
3. Procure import licenses

To determine whether a license is needed to import a particular commercial

product or service, an importer must first classify the item by identifying its
Indian Trading Clarification based on a Harmonized System of Coding or ITC

(HS) classification.

An import license may be either a general license or specific license. Under a

general license, goods can be imported from any country, whereas a specific or
individual license authorizes import only from specific countries.

Import licenses are used in import clearance, renewable, and typically valid for
24 months for capital goods or 18 months for raw materials components,
consumables, and spare parts.

4. File Bill of Entry and other documents to complete customs clearing

formalities

After obtaining import licenses, importers are required to furnish import

declaration in the prescribed Bill of Entry along with permanent account
number (PAN) based Business Identification Number (BIN), as per Section 46
of the Customs Act (1962).

A Bill of Entry gives information on the exact nature, precise quantity, and value
of goods that have landed or entered inwards in the country.

If the goods are cleared through the Electronic Data Interchange (EDI) system,
no formal Bill of Entry is filed as it is generated in the computer system. However,
the importer must file a cargo declaration after prescribing particulars required
for processing of the entry for customs clearance.
If the Bill of Entry is filed without using the EDI system, the importer is required
to submit supporting documents that include certificate of origin, certificate of
inspection, bill of exchange, commercial invoice cum packing list, among others.

Once the goods are shipped, the customs officials examine and assess the
information furnished in the bill of entry and match it with the imported items. If
there are no irregularities, the officials issue a ‘pass out order’ that allows the
imported goods to be replaced from the customs.

5. Determine import duty rate for clearance of goods

India levies basic customs duty on imported goods, as specified in the first
schedule of the Customs tariff Act, 1975, along with goods-specific duties such
as anti-dumping duty, safeguard duty, and social welfare surcharge.

In addition to these, the government levies an integrated goods and services tax
(IGST) under the new GST system. The IGST rates depend on the classification
of imported goods as specified in Schedules notified under Section 5 of the IGST
Act (2017).

Export procedures

Just as for imports, a company planning to engage in export activities is required

to obtain an IEC number from the regional joint DGFT. After obtaining the IEC,
the exporter needs to ensure that all the legal compliances are met under different
trade laws.

Further, the exporter must check if an export license is required, and accordingly
apply for the license to the DGFT.
An exporter is also required to register with the Indian Chamber of Commerce
(ICC), which issues the Non-Preferential Certificates of Origin certifying that the
exported goods are originated in India.

An export procedure flows as stated below:

1. Receipt of an Oder

The exporter of goods is required to register with various

authorities such as the income tax department and Reserve Bank of

India (RBI). In addition to this, the exporter has to appoint agents

who can collect orders from foreign customers (importer). The

Indian exporter receives orders either directly from the importer or

through indent houses.

2. Obtaining Licence and Quota

After geRing the order from the importer, the Indian exporter is

required to secure an export license from the Government of India,

for which the exporter has to apply to the Export Trade Control

Authority and get a valid license. You can get a license from here

too. The quota is referred to as the permiRed total quantity of goods

that can be exported.

3. Le8er of Credit

The exporter of the goods generally ask the importer for the leRer

of credit or sometimes the importer himself sends the leRer of credit

along with the order.

4. Fixing the Exchange Rate

 Foreign exchange rate signifies the rate at which the home currency

can be exchanged with the foreign currency i.e. the rate of the Indian

rupee against the American Dollar. The foreign exchange rate

fluctuates from time to time. Thus, the importer and exporter fix the

exchange rate mutually.

5. Foreign Exchange Formalities

An Indian exporter has to comply with certain foreign exchange

formalities under exchange control regulations. As per the Foreign

Exchange Regulation Act of India (FERA), every exporter of the

goods is required to furnish a declaration in the form prescribed in

a manner. The declaration states:-

i. The foreign exchange earned by the exporter on exports is

required to be disposed of in the manner specified by RBI and

within the specified period.

ii. Shipping documents and negotiations are required to be done

through authorised dealers in foreign exchange.

iii. The payment against the goods exported will be collected

through only approved methods.

6. Preparation of executing the order

The exporter should make required arrangements for executing the

order:
 i. Marking and packing of the goods to be exported as per the

importer’s specifications.

ii. GeRing the inspection certificate from the Export Inspection

Agency by arranging the pre-shipment inspection.

iii. Obtaining insurance policy from the Export Credit Guarantee

Corporation (ECGC) to get protection against the credit risks.

iv. Obtaining a marine insurance policy as required.

v. Appointing a forwarding agent (also known as custom house

agent) for handling the customs and other related maRers.

7. Formalities by a forwarding agent

The formalities to be performed by the agent include –

i. For exporting the goods, the forwarding agent first obtains a

permit from the customs department.

ii. He must disclose all the required details of the goods to be

exported such as nature, quantity, and weight to the shipping

company.

iii. The forwarding agent has to prepare a shipping bill/order.

iv. The forwarding agent is required to make two copies of the

port challans and pays the dues.

v. The master of the ship is responsible for the loading of the

goods on the ship. The loading is to be done on the basis of

the shipping order in the presence of customs officers.

 vi. Once the goods are loaded on the ship, the master of the ship

issues a receipt for the same.

8. Bill of lading

The Indian exporter of the goods approaches the shipping company

and presents the receipt copy issued by the master of the ship and

in return gets the Bill of Lading. Bill of lading is an official receipt

which provides the full description of the goods loaded on the ship

and the name of the port of destination.

9. Shipment advise to the importer

The Indian exporter sends shipment advice to the importer of the

goods so that the importer gets informed about the dispatch of the

goods. The exporter sends a copy of the packing list, a non-

negotiable copy of the Bill of Lading, and commercial invoice along

with the advice note.

10. Presentation of document to bank

The Indian exporter confirms that he possesses all necessary

shipping documents namely; Marine Insurance Policy The

Consular Invoice Certificate of Origin The Commercial Invoice The

Bill of Lading Then the exporter draws a Bill of Exchange on the

basis of the commercial invoice. The Bill of Exchange along with

these documents is called Documentary Bill of Exchange. The

exporter then hands over the same to his bank.

11. The Realisation of export proceeds

 In order to realise the proceeds of the export, the exporter of the

goods has to undergo specific banking formalities. On submission

of the bill of exchange, these formalities are initiated. Generally, the

exporter receives payment in foreign exchange.

Formalities

All export or import applications must be filed with the DGFT.

• Export of some products needs separate export licences and these

products are included under the Special Chemicals, Organisms,

Materials, Equipment and Technologies (SCOMET) list.

• Separate applications are required for exports from Electronic Data

Interchange (EDI) and Non-EDI ports in India.

• Responsibilities of buyers and sellers are listed in sale contract

called Incoterms.

• Other important export import procedures and documentation

include the following:

i. GST Return Forms (GSTR 1 and GSTR 2)

ii. GSTR Refund Form

iii. Exchange Control Declaration

iv. Bank Realisation Certificate

v. Registration cum Membership Certificate (RCMC)

EXIM DOCUMENTATION

Import and Export Documents

Businesses are required to submit a set of documents for carrying out export and
import activities in India.

These include commercial documents – the ones exchanged between the buyer
and seller, and regulatory documents that deal with various regulatory authorities
such as the customs, excise, licensing authorities, as well as the export promotion
bodies that help avail export import benefits.

Various Documents Required in EXIM

Documents in export trade

Principal Documents, These are:

1. Commercial Invoice

It is a basic document which gives full details of the contents of the

shipment and serves as seller's bill of goods and, therefore, sets out

the terms of sale. An exporter is required to prepare this complete

document which must fully identify the overseas shipment and

serve as a basis for the preparation of all other documents which, in

greater or lesser detail reproduce information from it.

2. Packing List

Exporters are required to prepare an accurate packing list showing,

item by item, the contents of the packages or cases so as to enable

 the receiver of the shipment to carry out a check. The packing list

should give a description of the goods, number and marks on the

packages, quantity per package, net and gross weight,

measurement, etc. Properly prepared, these packing lists ensure

movement of goods and avoid unnecessary unpacking.

3. Marine Insurance Policy/Certificate

A marine insurance policy/certificate is a document associated with

transit of goods in trade, whereby the insurer undertakes to

indemnify the assured against damage for loss of goods due to

risks/hazards in transit, to the extent and in the manner mentioned

in this document

4. Bill of Exchange

An exporter can send a bill of exchange for the value, of the invoice

of goods for export through the banking system for payment by an

overseas buyer on presentation. A bill of exchange is legally defined

as "an unconditional order in writing, addressed by one person to

another, signed by the person giving it, requiring the person to

which it is addressed to pay on demand or at a fixed or

determinable future time a sum certain in money, to or to the order

of, a specified person, or to bearer".

5. Letter of Credit
 A letter of credit is a written undertaking by a bank, the issuing

bank, to the seller, the beneficiary in accordance with the

instructions of the buyer, the applicant, to effect payment upto a

prescribed amount, within a prescribed time period against

prescribed documents, provided these are correct and in order i.e.

they conform with the instructions of the applicant.

6. Bill of Lading

Bills of lading are prepared by the shippers on printed forms

supplied by the shipping company concerned and necessary

particulars are entered therein the blank spaces provided for the

purpose.

7. Airway Bill

In air carriage, the transport document is known as the Air Way Bill

(AWB) or Air Consignment Note. The AWB merely evidences the

air carrier's receipt of the goods on the terms of the contract of

carriage and does not represent the goods/title of goods.

8. Combined Transport Document

Exporters situated in interior parts of the country face the problem

of delay in submitting shipping' documents pertaining to the

exports made by them to their bankers for negotiation as they have

to depend on their shipping agents functioning at sea ports to

obtain, shipping documents, especially, the marine bill of lading. To

 obviate this delay and also to popularise containerisation

Government has established Inland Container Depots (ICD) at a

number of places.

9. GR/PPNPP/COD/SOFTEX Forms

These forms are submitted to the customs authorities in compliance

of exchange control regulations. All exporters other than those

exporting to Nepal and Bhutan are required to submit a declaration

in the prescribed form duly supported by such evidence.

i. GR Form: It is required to be filled in duplicate for all exports

in physical form other than by post.

ii. PP Form : It is required to be filled in duplicate for all exports

to all countries, made by post parcel, except when made on

"value payable" or " cash on delivery" basis.

iii. VP/COD Form: It is required to be filled in one copy for exports

to all countries by post parcel wider arrangements to realise

proceeds through postal channels on "value payable" or "cash

on delivery" basis.

iv. SOFTEX Form: It is required to be prepared in triplicate for

export of computer software in non-physical form.

10. Export Inspection Certificate

It is issued usually by Government agency entrusted with the task

of inspecting the concerned goods, private firms of repute

 specialising in inspection or at times buyer's own representative in

India.

11. AR4/AR5 Forms

In India, excisable goods are free from the incidence of excise duty

levied by the central government, both on finished product and raw

materials. The scheme is governed by section 37 of the Central

Excise and Salt Act, 1944 as amended from time to time.

Both AR4 and AR5 forms can be used for export in Bond or under

Rebate of Central Excise duty.

AR4 form is to be used where either finished stage duty is not paid

or its rebate is to be claimed later on. It can be elaborated as under:

i. Form AR4 is to be used in case of exports in Bond, of all goods

without payment of duty on finished item (not on inputs).

ii. AR4 Form is also used where finished stage duty is paid and

rebate thereof is to be claimed after exports.

Form AR5 is used where goods are manufactured/exported without

the payment of duty or inputs (inputs stage duty). It can be elaborated

as under :

i. AR5 form is used where no duty is paid on production inputs

and the finished stage duty is also not paid on the account of

their export being made in bond.

 ii. AR5 form is also used where inputs stage duty is not paid but

duty on finished goods is paid and the rebate thereof is to be

claimed after export

12. Shipping Bill

Shipping Bill is the principal document required by the customs

authorities. It contains description of export goods and other

particulars like number and description of package(s), marks and

number,. quantity and value as defined in the Sea Customs Act.

13. Certificate of Origin

This certificate serves as an evidence to show the actual country of

origin (place of production or manufacturing) of the goods. It is

signed in the exporting country by the consular of the importing

country or by the exporter or by the Chamber of Commerce, as the

regulations may require.

14. Shipment Advice

This is usually done in the form of a `shipment advice' giving

invoice number; description of goods, quantity, number of

packages, marks and numbers, name of the carrier, bill of

lading/airway bill number and date, expected time of arrival of the

carrier at the port of destination

15. Consular Invoice

 A consular invoice made out on a specially printed form contains

detailed particulars, such as description, quantity, grade and value

of the merchandise shipped. It is certified by the consulate of the

importing country situated in the exporting country for which a

certification fee is charged.

Auxiliary Documents

These documents may be required for the preparation or procurement of

some of the principal documents or for arranging some of the

preliminaries in effecting shipment of goods, such as giving shipping

instructions to freight forwarders, arranging pre-shipment inspections,

marine insurance cover, shipping space, procurement of bills of lading

etc.

Documents normally required are:

1. Shipping Instructions Form

It is used to send shipping instructions to the shipping company or

the shipping agent regarding shipment of export cargo

2. Application for Export Inspection Agency

The application form contains details of shipment including

technical requirement including specifications as stipulated in the

export contract.

3. Shipping Order
 For booking space, the exporter has to apply to the shipping

company either directly or through a freight broker. If the space is

available, the shipping company will issue to the broker/shipper a

document called a shipping order, instructing the Commanding

Officer of the ship that the goods from the shipper concerned, as per

details given, should be received on board the vessel

4. Mate Receipt

When the cargo is loaded on the ship, the Commanding Officer of

the ship will issue a receipt called the ` Mate Receipt'. This includes

information about the name of the vessel, berth, date of shipment,

description of packages, marks and numbers, condition of the cargo

at the time of receipt on board the ship.

5. Dock Challan

Also known as Port Trust Copy of the shipping bill in Bombay and

Export Application Form in ports other than Calcutta, Dock Challan

is a document prescribed by the port authorities

Documents in import trade

Importer Exporter Code (IEC) Number: No person can import or export

goods without obtaining an Importer-Exporter Code (IEC) Number

unless he has been specifically exempted. The IEC Number is obtained

from the Regional Licensing Authority.

Bill of Entry: It is a document on which clearance of imported goods is

effected. All goods discharged from a vessel, from foreign or coastal ports

are cleared on Bill of Entry in the prescribed form. The Bill of Entry form

has been standardised by the Central Board of Excise and Customs.

There are three types of Bill of Entry as discussed below

i. Bill of Entry for home consumption (white in colour)

ii. Bill of Entry for warehousing (into bond, yellow in colour)

iii. Ex-Bond Bill of Entry (Green in Colour)

Significance of Type of Documents

The physical transfer of goods in international trade has traditionally been

associated with a number of documents. Over the years, however, the

number of documents and related procedures has multiplied making

international trade complex and cumbersome. The significance of

documentation arises primarily because of certain peculiarities of

international trade transactions. Unlike domestic trade, buyers and sellers

are separated by long distances in overseas trade transactions. This

necessitates concluding a formal contract laying down duties and

responsibilities of buyers and sellers respectively. Moreover, some

intermediation becomes inevitable. No international trade transactions

canoe-completed. without the assistance of at least three intermediaries -

a carrier, who undertakes to deliver the goods to the buyer on behalf of

seller, an insurance company that covers the risks arising out of hazards

of long voyage and finally a banker who collects the sale proceeds from

the buyer and hands over the same to the exporter. Besides, other
intermediaries are freight forwarders, freight brokers, chambers of

commerce etc.

Documentation and attendant formalities become necessary to ensure

compliance of contract obligations of the concerned parties i.e., the

exporter, importer and intermediaries. 16 Policy Framework and

Procedural Aspects International trade also means trading relationship

between the citizens of two independent sovereign states. International

trade is state regulated everywhere, even US government regulates the

export import operations of domestic firms and insists on documentation

for information and control purposes. In India, several documents have

been prescribed to ensure compliance of Export Trade Control, Foreign

Exchange Regulations, Quality Control and Pre-shipment Inspection,

Central Excise.

Regulatory Documents

Regulatory documents are otherwise called as Official documents, because

most of these documents are required for compliance of regulations of

either the exporter’s country or the importer’s country.

• Export Declaration Forms

As per Indian Exchange Control Regulations, details of all goods (except

certain exempted categories) by whatever means exported from India, are

required to be declared on certain specified forms. These forms are known

as Export Declaration Forms. These forms are evolved by the Reserve

Bank of India to ensure that the value of all the goods exported from India
is declared and the foreign exchange due there is repatriated to India. In

export trade, the goods leave under the supervision of one agency

(Customs/Post Office) and proceeds thereof are received through another

agency (banks, etc.) These export declaration forms are so designed that

they can have an effective check over the cycle of movement of goods out

of India and receipt of their value in foreign exchange into India, These

forms enable the Reserve Bank of India to compile vital foreign trade data

of the country and also to exercise control over the exporter/ export

activities. These export declaration forms have two important aspects: one

is the declaration of the exporter as to the nature and exact (or appropriate

market value in case exact value is not ascertainable at the time of import)

value of goods being exported. The second is an undertaking of the

exporter to realize the full export value declared thereon and repatriate

the same into India. All these forms bear distinct serial numbers with a

two-alphabet prefix followed by a six-digit numeral. Each form has a

specific validity date by which the same can be used for shipment.

Presently the following types of such forms will be printed only

by Reserve Bank of India for sale to authorized dealers for supply to their

exporter clients:

1. GR FORM: This form in duplicate is to be used when exports are

made to all countries otherwise than by post.

2. PP FORM: This form is also in duplicate and should be used when

exports are made to any country by post parcel except when on

“Value Payable” or “Cash on Delivery” basis.

3. SOFTEX FORM: This form is to be used when the computer

software is being exported in a non-physical form. This form has to

be submitted in triplicate.

• Export Certificate

Certain goods can be exported from India subject to conditions of

export licensing policy, etc. For example, the Government may

restrict the quantity of exports to be made or the goods may be

followed to be exported out of quantitative restrictions placed by

the importer’s country under the trade arrangements/ agreements.

In such cases, the goods will be allowed to be exported (and

imported into the country of import) only when an export certificate

is issued. Generally these certificates are issued by the agencies like

Commodity Boards, Export Promotion Councils nominated by

Government of India. For example, Cotton Textiles Export

Promotion Councils issues export certificates for export of cotton

textiles to EEC (European Economic Community) countries in terms

of trade agreements between Government of India and EEC nations.

This certificate may be needed for verification by the Customs of

both, exporter’s/ Importer’s country.

• Certificate of Origin

The certificate of origin indicates the country where the goods were

originally produced/manufactured. Generally in a certificate of

origin of goods, on the basis of declaration made by the

 manufacturer/exporter, an independent agency like Chamber of

Commerce, Export Promotion Council, Trade Association or any

other body, which is authorized in this behalf issues a certificate of

origin of goods.

This document may form part of the invoice itself or may be a

separate document.

In any of the countries, permission to import is refused unless a

certificate of origin is produced. Further, this is also used to

determine the concessional tariff rates applicable to the goods.

Certificate of origin is used mostly to serve/ ensure the following :

1. Some countries may not wish to use the goods of a particular

country or enemy country.

2. Some countries may not wish a particular country to export the

goods manufactured in another country to avoid intermediary

trade or avoiding competition from the goods manufactured by

a competing country and to encourage their own country.

3. Some countries may allow import of goods manufactured in

certain countries at concessional tariff rates (for example,

Generalized System of Preference Scheme of GATT)

Export Assistance Documentation

Documents required for claiming export assistance:

• Application form
 • Shipping Bill duly authenticated by customs

• Commercial invoice aRested by bank

• Bank certificate

• Statement of Exports certified by the negotiating bank

• Registration cum membership form of concerned export promotion

council.

Foreign trade documents

These are the documents that are used in foreign trade

1. Indent
An indent is an order of goods from an overseas importer to a
buying agent located in the exporting country.

2. Pro-forma Invoice
A Pro-forma invoice is the starting point of an export contract. As
and when the exporter receives the trade inquiry from the importer,
the exporter submits the Pro-forma invoice to the importer.

3. Commercial Invoice
A commercial invoice is the seller’s bill for merchandise or goods
sold by him.

4. Legalized Invoice
It is just like a consular invoice, which requires certification from the
consulate or authorized mission, stationed in the exporter’s country.
Certain Latin American countries like Mexico require this.

5. Customs Invoice
When the commercial invoice is prepared on the format prescribed
by the customs authorities of the importing country, it is called the
customs invoice. This is the requirement of the USA, Canada, and
Australia.
6. Packing Note and Packing List
Packing note refers to the particulars of contents of an individual
pack. In contrast, the packing list is a consolidated statement of the
contents of the total number of cases or packs.

7. Certificate of Origin
certificate of origin is a certificate that specifies the name of the
country where goods are produced. This is necessary where the
importing country has banned the entry of goods of certain
countries to ensure that the goods from those countries are not
allowed to enter.

8. Insurance Policy
This is necessary where the importing country has banned the entry
of goods of certain countries to ensure that the goods from those
countries are not allowed to enter.

9. Charter Party
The bulk of the goods in foreign trade are transported by sea. The
exporter needs to hire a ship or a part of it to send certain goods to
a specified place.

10. Shipping Bill

The shipping bill is the main document based on which the
permission of the customs is given. Under manual processing of
export documents, the exporter is required to file the appropriate
type of shipping bill to seek the order for customs clearance of the
export shipment.

11. Dock Receipt

Sometimes goods are sent to the importer through the dock
company. In such a case, the exporter collects a receipt from the
dock company to the effect that goods have been delivered to the
dock company. This receipt is known as the dock’s receipt.
12. Mate’s Receipt
A mate’s receipt is issued by the mate (assistant to the captain of this
ship) after the cargo is loaded into the ship. It is an acknowledgment
that the goods have been received onboard the ship.

13. Certificate of Measurement

The certificate measurement contains the details in respect of the
description of goods, quantity, length, breadth, and depth of the
packages, name of the vessel and port of destination of the cargo.

14. Bill of Lading

The certificate measurement contains the details in respect of the
description of goods, quantity, length, breadth, and depth of the
packages, name of the vessel and port of destination of the cargo

15. Airway Bill

Airway bill is also called “air consignment note.” It is a receipt
issued by an airline for the carriage of goods.

16. Ship’s Report

The ship’s report is prepared by the master of the ship within 24
hours of the arrival of the ship and is submiRed to the custom’s
authorities.

17. Bill of Entry

Sometimes importer faces some problems to fill up the bill of entry
owing to the lack of some information. In that case, the importer
makes a declaration stating his inability to submit the said form in
another form known as a bill of sight form.

18. Bill of Sight

Dock warrant is issued by the dock company stating therein that
certain specified goods of someone have the dock company and that
these goods are deliverable to the person named.

19. Dock Warrant

 The ship’s delivery order is issued by the shipping company to the
dock superintendent to deliver the goods to the person named
therein.

20. Wharfinger’s Receipt

A wharfinger is a keeper of a wharf. The wharfinger takes custody
and is responsible for goods delivered to the wharf.

21. Ship’s Delivery Order

The ship’s delivery order is issued by the shipping company to the
dock superintendent to deliver the goods to the person named
therein.

22. Le`er of Indemnity

In foreign trade, this leRer is given to the shipping company and
other authorities by the importer in case the importer is unable to
produce all the necessary documents at the time of taking delivery
of goods.

23. Bo`omry and Respondentia

One may raise money on the security of vessels, freight, and cargo.
if he raises finance by mortgaging the ship, freight, and cargo in
favor of the lender of money, he issues another bond known as a
respondentia.

24. Advice Note

This refers to a leRer wriRen by the exporter to the importer stating
therein the date of shipment, route, probable date of arrival of the
ship at the port of the importing country.

25. Delivery Order

This order is issued by the owner of the goods to the dock company,
requesting the superintendent to deliver the goods as per
specification.

26. Le`er of Credit

 A leRer of credit (LC) is a document containing the guarantee of a
bank to make payment to an exporter, under certain conditions and
up to a certain amount, provided the conditions contained therein
are complied with.

27. Bill of Exchange

The Negotiable Instruments Act, 1881 defines a bill of exchange as
“an instrument writing containing an unconditional undertaking,
signed by the maker, directing a certain person to pay a certain sum
of money only to, or to the order of, a certain or to the bearer of the
instrument.

28. Le`er of Hypothecation

This leRer indicates the particulars of the bill drawn and of the
goods against which it is drawn, and empowers the banker to sell
the specified goods if the drawer or the importer refuses to accept
the bill when it is presented to him or fails to honor it at maturity.

29. Trust Le`er

Trust leRer refers to a document in which the importer admits the
sole right of a banker to goods and undertakes to pay the full
amount of the sale proceeds.

30. Duty Drawback Document

The duty drawback document is a kind of document to be filled by
the exporter demanding the refund (customs drawback) on duty
already paid on raw materials incorporated in goods to be exported.

31. Inspection Certificate

An inspection certificate is required by some importers and
countries to aRest to the specifications of the goods shipped. This is
usually performed by a third party and often obtained from
independent testing organizations.

**********************