Scribd
Upload
55 views

Export Procedures: By: Shruti Bhatt

The document outlines the key export procedures an exporter must follow, including registering with the Regional Licensing Authority and Export Promotion Council, obtaining necessary approvals, producing and shipping the goods, and negotiating payment. Some important steps are applying for an Importer-Exporter Code, including required information in proforma invoices, obtaining excise and sales tax exemptions, complying with pre-shipment inspections if required, submitting shipping documents to customs, and negotiating documents with the advising bank. Following the proper procedures is essential to successfully export goods.

Uploaded by

Srikar Chandra
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
55 views

Export Procedures: By: Shruti Bhatt

The document outlines the key export procedures an exporter must follow, including registering with the Regional Licensing Authority and Export Promotion Council, obtaining necessary approvals, producing and shipping the goods, and negotiating payment. Some important steps are applying for an Importer-Exporter Code, including required information in proforma invoices, obtaining excise and sales tax exemptions, complying with pre-shipment inspections if required, submitting shipping documents to customs, and negotiating documents with the advising bank. Following the proper procedures is essential to successfully export goods.

Uploaded by

Srikar Chandra
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 24

Export procedures

By: shruti Bhatt

It is essential for an exporter to register himself with the specified authorities:

1) Regional licensing Authority

2) Registration with export promotion councils

Regional licensing Authority


The JDGFT for the respective area is the authority under which an exporter has to register himself, and obtain IEC number. The custom authority will not allow one to export or import from one country unless he has obtained the IEC number.

After obtaining IEC number does not export or import any goods in a year, the authorities may strike off the IEC number from the list

Registration with EPCs


This is dine on a prescribed form given by the council.
This registration also helps the exporter to get any benefit given under export import policy. If the product or services to be exported does not have any specific council or authority to which it is attached, the organization can register with FIEO (federation of Indian exporter organization)

Procedure in the various phases of export


Offer & Receipt of confirmed order Production & clearance of the products for exports. Shipment Negotiation of Documents & realization of export proceed. Obtaining various export incentives.

Offer & Receipt of confirmed order


The proposal submitted by an exporter is referred to as offer. The offer, when accepted by the foreign buyer, becomes an order.

The offer made by the exporter is usually in the form of a Performa Invoice. This is just a documents indicating the exporter intention to sell, and usually address to the prospective buyer.

Continue
The consignee or the buyer
Description of goods

Price
Conditions for sale Other obligations

The consignee or the buyer


Name & address of buyer Consignee can be individual, a company, a corporation or a government department. Description of goods Important technical specifications & physical features which make the identification of the product easy.

Price
The Performa invoice should indicate the unit & total prices of the production internationally accepted or mutually agreed currency. It should indicate total quality of products offered. There should be clearly indicate the discount for a specific volume.

Conditions for sale


The Performa invoice submitted entails legal obligations on the part of the exporter to supply the product to the buyer, in the event of the invoice being accepted by him. Hence it is necessary that the conditions of sale & other factors qualifying it should be clearly spent out.

Conditions for sale


Validity Delivery Schedule Inspection Payment terms

Producing the goods


Processing of an export order is to make arrangements for the items to be produced at the factory of exporter or to be obtained from supplier. All the operations from the time for production is placed, till it reaches to export warehouse, are normally covered by this phase.

Excise Duty Rebate


It is levy imposed by government of India on all excisable item as specified by it and is usually collected at source, i.e. manufacturing stage. The manufactured products, as soon as they are ready for dispatch from the factory attract the levy. Only after the excise is paid can the products be removed from the factory premises.

Sales Tax Exemption


The govt. allows exemption from paying sales tax for export products. For this, Exporter should register with the sales tax authorities.

Sales tax exemption is for the last two stages of transaction in a product before export.

Pre shipment Inspection of Export Cargo


The GOI has introduced a compulsory pre shipment inspection for selected items of export to ensure that the products to be exported conform to high quality std. Pre shipment inspection scheme is administered by the Export Inspection council. Under this scheme, the emphasis is on quality control rather than on inspection for export.

Continue
In case the export of the product is subject to export inspection by the agency, the exporter makes an application in the prescribed form to the export inspection Agency, enclosing the following documents.

Copy of commercial Invoice A cheque or Demand Draft A copy of export contract

Shipment
More popular method of Dispatching goods to an export buyer than dispatch by air. Freight charges are less compare to air freight. Physical size of product constraints the exporter to dispatch the goods by air.

The clearing & Forwarding Agents


This are specialized personnel who arrange for the completion of all formalities connected with the shipment of goods. As soon as the export goods reaches to the warehouse, the exporter arranges for a complete set of shipping documents, to be passed on the forwarding agent.

continue
These comprise: GR-1 form Performa Invoice Certificate of inspection where necessary. Form of declaration Shipping bill Export License Mate Receipt Port trust dues

GR form
It is an exchange required by RBI. control document

As per exchange control regulations, an exporter has to realize the proceeds Within 180 days from the date of shipment from India. In order to ensure this, the RBI has introduced the GR Form.

Shipping bill
Its a main document required by the custom authorities for the purpose of Granting permission for shipment.

It is prepared in 5 copies.
It contains the name of exporter, his address, code no, the description and Quantity of goods to be shipped, the value of goods, number of packages etc.

Export License
The GOI regulations require that an export license be obtained for certain categories of export products before shipment is made. Obtained from DGFT DGFT scrutinizes the application with reference to quantity, value and description of goods in all the documents.

Customs clearance
According to prevailing customs regulations, no cargo meant for export can be loaded on a ship unless the custom authorities at the port accord their formal approval. After obtaining the shipping documents, including 5 copies of shipping bills is submitted by the exporter to the customs house concern.

Negotiation
A complete set of negotiating documents is presented to the negotiating bank through whom the L/C has been advised. Where the exporter has compiled with all the T&C of the L/C while submitting his documents to the negotiating bank, the documents are deemed to be clean.

You might also like