HABIB COLLEGE OF COMMERCE &

ECONOMICS
SINGAPOREWALA MOIZ
S.Y.B.M.S

EXPORT IMPORT
DOCUMENTATION
FACULTY:-MINAAZ MADAM
 ALIGNED DOCUMENTATION
SYSTEM
The standardisation of the pre-shipment export documents is done on
the basis of the system, popularly known as Aligned Documentation
System (ADS).
Objective
The primary objective has been to ensure benefits to everyone in
the international trade chain from easier documentation. To enter
information on an easy basis and access the information with
greater convenience, Aligned Documentation System (ADS) is
adopted. Documents related to exports are printed on uniform
length and standard A-4 size of paper. Initially, information is
entered in Master Document 1 and Master Document 2. From
these documents, Common information, required to be
incorporated in all the relative documents, is entered in the slots
at the same locations.
 An exporter can develop 14 out of 16 Commercial Documents
with the help of Master Document 1. Shipping order and Bill of
Exchange are the only two Commercial Documents that can not
be developed as these have not been standardised. In a similar
manner, with the help of Master Document 2, three of the
Regulatory Documents-GR form, Shipping Bill/ Bill of Export and
Port trust copy of Shipping Bill can be developed.
 Advantages of Aligned
Documentation System
1. Dispenses Conventional
Documentation preparation: Once information is
entered into Master Documents, it becomes possible to prepare
many Commerical and Regulatory Documents with the help of
masking reproduction technique. The documents are aligned to
one another. All documents are printed in the same size of
paper. Common items of information are given the same relative
slots in each of the documents included in the system. The
common items of information occupy the same relative position
on each form. For example, shipper top left, references top right,
signatory details bottom right and so on.
2. Easier to Complete and Access: This makes forms
both easier to complete and easier to process. Since common
positions are used for data items, it is possible to Buse a ‘Master
Document.’ This master document can be used to produce a
range of documents using a photocopier and overlays (to provide
the form outlines and hide unwanted data).
3. Benefit to All Parties: All parties in the international
trade chain benefit from easier document processing. Using
documents that comply with UN alignment standards speed up
form preparation, cut costs and reduce errors. Exporters may
actually get paid quicker than otherwise!
4. Better Image: Aligned documents simplify document
checking and training new staff. They even enhance an
organization’s professional image.
 Commercial Invoice

A commercial invoice is the seller’s bill for merchandise or goods

sold by him. Invoice contains all the particulars and details in
respect of name and address of seller (exporter), name and
address of buyer (importer), date, exporter’s reference number,
importer’s reference number, description of goods, price per unit
at particular location, quantity, total value, packing specifications,
terms of sale (FOB, CIF etc), identification marks of the package,
total number of packages, name and number of the vessel or
flight, bill of lading number, place and country of destination,
country of origin of goods, reference to letter of credit, if opened,
terms of payment, and finally signature of the exporter etc. From
the details, it is clear that invoice is an important and basic export
document. It is also known as ‘DOCUMENT OF CONTENTS’ as
it contains all the important information necessary for the
preparation of other export documents.
For many countries, there are no prescribed special invoice
forms. Exporters can usetheir normal invoices used for
indigenous trade for exports made outside the country too and
show the particulars required by the importer in terms of the
contract. However, there are special invoicing procedures in
respect of exports to certain countries like Canada, U.S.A.and
Australia. Some countries like Uganda, Mexico, Sudan and
Tanzania require special customs invoices. Information about the
special invoice forms required can be gathered from the
respective Export Promotion Councils apart from the procedures
of trade to be followed in respect ofthe importer’s country. Any
recognized Chamber of Commerce too can provide the
information in this respect.
 Significance of Commercial
Invoice

(A) It is prima facie evidence of the contract of sale and purchase

of goods. On the basis of the invoice, all the other documents, in
the context of export, are prepared as it is the basic document.
(B) Invoice constitutes the main document for various export
formalities such as preshipment inspection, quality, excise and
customs procedures.
(C) It is useful for accounting purposes, both by the exporter and
importer.
(D) This document is required in collection/negotiation of
documents through the bank.
(E) For claiming incentives, this document is essential.
 Consular Invoice

Some of the importing countries insist that the invoice is to be

signed by the importing county’s consular located in the
exporter’s country. Such invoices are known as consular
invoice. The exporter has to pay a certain fee to obtain the
certificate/invoice. Such charges/ fees vary from country to
country. The main purpose to obtain consular invoice is to secure
authentication of information contained in the invoice. Once the
invoice is signed by the consular of the country, the importer gets
comfort and confidence in respect of accuracy of information in
respect of quality, source of goods, volume and grade.
Normally, on arrival of the goods, it is necessary to convince the
customs authorities of the importing country that the goods
stated in the invoice and the actually imported goods are one
and the same. If the customs authorities get suspicious or not
convinced, they open the packages of the imported goods. If this
happens, considerable delay takes place. The importer is put to
hardship by delayed receipt of goods. To avoid all these
problems, importer insists on the exporter to obtain the consular
invoice from the consulate stationed in the exporter’s country.
The consulate invoice is, generally, prepared in three copies.
One copy is retained by the consulate office, the second copy is
sent to the customs of the importing country and the third copy is
given to the exporter to forward the same along with other
documents through the banker for collection/negotiation. This
information also facilitates in assessing import duties and also
would be useful for statistical purposes.
Significance of Consular Invoice can be
Summarized
Importance to the Exporter
1. Once the invoice is signed by the consulate of the importing
country, the exporter is reasonably assured that there are no
import restrictions in the importer’s country for the goods and that
there would be no problem in realization of export proceeds or
foreign exchange.
2. It enables prompt clearance from the customs of exporter’s
country for shipping thegoods.
Importance to the Importer
1. In the importer’s country, the customs do not normally open
the packages. It helps the importer to get speedy delivery of
goods.
2. Lot of unnecessary hardship which importer faces once the
packages are opened is avoided.
 Certificate of Origin
As the very name indicates, certificate of origin is a certificate
that specifies the name of the country where goods are
produced. This is absolutely 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 in. At the time of arrival of the goods in the importer’s
country, this certificate is necessary for the customs to permit
preferential tariff.Certain countries offer preferential tariff to
goods produced and imported from India. In such a case, this is
a must to the importer to claim preferential tariff and importer
insists on this document from the exporter. This enables the
importer’s country to regulate the concessional tariff only to
select countries and deny to the rest of the countries. A
certificate of origin can be obtained from Chamber of Commerce,
Export Promotion Council and various trade associations which
have been authorized by Government of India to issue. The
agency from which certificate of origin is obtained should
conform to the terms of letter of credit.
 Significance of Certificate
of Origin

(A) Certificate of origin is required for availing concession under

Commonwealth Preferences (CWP) as well as Generalized
System of Preferences (GSP).
(B) It facilitates the importer to adhere to the rules and
regulations of his country.
(C) Customs in the importer’s country allow the concessional
tariff only on production of this certificate.
(D) When goods from some countries are banned, importing
country requires this certificate to ensure that goods from banned
countries are not entering into the country.
(E) Exporting country may insist on this certificate to ensure that
the goods imported are not reshipped again.
 Shipping Bill

The shipping bill is the main document on the basis of which the
customs permissionis 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. Under computerized processing, the exporter
does not prepare the shipping bill; instead it is computer
generated. The customs order is called “LET EXPORT Order”.
After the shipping bill is stamped by the customs, then only the
goods are allowed to be carted to the docks.
The shipping bill contains the following particulars:
(A) Nature of goods exported,
(B) Name of vessel, master or agents,
(C) Flag,
(D) Country of destination, the port at which the goods are to be
discharged,
(E) Exporter’s address,
(F) Importer’s address,
(G) Details of the packages, such as numbers and marks,
(H) Quantity details of each case, total number of cases and
aggregate weight,
(I) F.O.B. prices and real value as defined in the Sea Customs
Act and
(J) Whether the merchandise is Indian or foreign origin which is
re-exported.
The shipping bill is prepared in five copies:
1. Customs copy
2. Drawback copy
3. Export Promotion copy
4. Port Trust copy and
5. Exporters copy
Importance of Shipping Bill
(A) It is an important document required by the customs
authorities for clearance of goods. The customs authorities
endorses the duplicate copy of the shipping bill with
“Let Export Order” and “Let Ship Order”.
(B) After the clearance of customs, exporter can load the goods
on ship.
(C) Shipping bill endorsed by the customs authorities facilitates
the exporter to claim incentives such as excise duty refund and
duty drawback.
 Types of Shipping Bills
(1) Free Shipping Bill: It is used in case of goods which
neither attract any export duty nor entitled for duty drawback. It
is printed on simple white paper.
(2) Dutiable Shipping Bill: It is used in case of goods, which
attract export duty. It may or may not be entitled to duty
drawback. It is printed on yellow paper.
(3) Drawback Shipping Bill: It is used in case when refund
of duties is allowed on the goods exported. Generally, it is
printed on green paper, but when the drawback
claim is paid to a bank, then it is printed on yellow paper.
(4) Shipping bill for Shipment Ex-Bond: It is used in case of
imported goods for reexport and which are kept in bond. It is
printed on yellow paper.
(5) Coastal Shipping Bill: It is used in case of shipment that
is moved from one port to another port, by sea, within India. It
is not an export document.
 Mate’s Receipt
A mate’s receipt is issued by the mate (assistant to the captain
of the ship) after thecargo is loaded into the ship. It is an
acknowledgment that the goods have been received onboard the
ship.
Contents of Mate’s Receipt
Mate’ receipt contains the details about
1. Name of the vessel,
2. Date of shipment,
3. Berth,
4. Marks,
5. Numbers,
6. Description and condition of goods at the time they are
shipped, port of loading,
7. Name and address of the shipper,
8. Name and address of the importer(consignee) and
9. Other required details.
Types of Mate’s Receipts
Mate’s receipt can be clean or qualified.
(A) Clean Mate’s Receipt: Mate of the ship issues a clean
mate’s receipt if the condition, quality of the goods and their
packing are proper and free from defects.
(B) Qualified Mate’s Receipt: If the mate’s receipt contains
any adverse remarks as to the quality or condition of the
goods/packing, it is known as ‘Qualified Mate’s Receipt’. If the
goods are not packed properly and the mate’s receipt contains
any adverse remarks about the packing such as “Poor Packing’,
the shipping company does not assume any responsibility in
respect of the goods during transit. It is necessary for the
exporter to secure the mate’s receipt without any adverse
remarks. On the basis of the mate’s receipt, the Bill of Lading is
prepared by the shipping agent.
 Mate’s receipt is first handed to the Port Trust Authorities who
hands over to the exporter soon after he clears their dues. This
procedure is adopted to facilitate for collection of port dues from
the exporter. Significance of Mate’s Receipt
(1) Mate’s receipt is an acknowledgment of goods. It is not a
document of title.
(2) It is issued to enable the exporter or his agent to secure bill of
lading from the shipping company.
(3) Bill of Lading, which is the title to the goods, is prepared on the
basis of Mate’s receipt so it should be obtained without any
adverse remarks.
(4) Port Trust Authorities are enabled to collect their dues as it is
routed through them.
 Bill of Lading
Bill of Lading is a document issued by the shipping company or
his agent acknowledging the receipt of cargo on board. This is an
undertaking to deliver the goods in the same order and condition
as received to the consignee or his agent on receipt of freight,
the shipping company is entitled to. It is a very important
document to the exporter as it constitutes document of title to the
goods. Each shipping company has its own bill of lading. The
exporter prepares the bill of lading in the form obtained from the
shipping company or agents of shipping company. The goods
can be consigned to order of the exporter, which means the
exporter can authorize someone else to receive the goods on his
behalf. In such a case, the exporter would discharge the bill of
lading on its reverse. When the bill of lading is negotiated
through the bank, it would be endorsed in favour of the bank that
would endorse further to the importer, on receipt of payment. Bill
of Lading is made in signed set of 2 originals, any one of which
can give title to the goods. The shipping company also issues
non-negotiable copies (unsigned) which are not documents of
title to goods but serves the purpose of record only.
 Main Purposes
It serves three main purposes.
(A) As a document of title to the goods
(B) As a receipt from the shipping company and
(C) As a contract of affreightmen (transportation) of goods.
 Contents of B/L
1. Name and address of the shipper.
2 Name and address of the vessel.
3. Name of port of loading.
4. Date of loading of goods.
5. Name of port of discharge and place of delivery.
6. Quantity, quality, marks and other description.
7. Number of packages.
8. Freight paid or payable.
9. Number of originals issued.
10. Name of the shipping company.
11 Voyage number and date.
12. Signature of the issuing authority.
 Types of Bill of Lading
(1) Received for Shipment B/L: A shipping
company issues it when goods have been
given to the custody of the shipping company, but they have not
been placed on board.

(2) On Board Shipped B/L: The shipping company

certifies that the cargo has been received on board the ship.

(3) Clean B/L: It indicates a clean receipt. In

other words, it implies that there has been no defect in the
apparent order or condition Of goods at the time of receipt or
shipment of goods by the shipping company.
 GR Form
GR is an exchange control document required by Reserve Bank
of India. It is required to be filled, in duplicate, for all exports in
physical form other than by post. An exporter has to realize the
export proceeds within a period of 180 days from the date of
shipment, in India. To ensure control on realization, RBI has
introduced this procedure. GR form, in duplicate, is to be
submitted by the exporter to the customs along with the Shipping
Bill. Customs will give their running serial number on both the
copies. After admitting the customs shipping bill, customs will
certify the value of goods declared by the exporter in the space
earmarked and also record their assessment of value. Customs
retains the original copy and return the duplicate to the exporter.
Customs sends the original GR form to RBI, which will be an
indication of the goods, which are to be exported
Exporter has to submit the duplicate of GR form to the
authorized dealer, named in GR form, along with other shipping
documents within a period of 21 days of shipment for the
purpose of negotiation. After the negotiation of bill, the
authorized dealer will report the transaction of negotiation to RBI.
On receipt of the original, RBI is apprised of the developments in
respect of the export transaction.
Once the export proceeds are received from the importer, the
authorized dealer has toforward the duplicate copy of GR form
together with the copy of invoice to RBI. RBI recognizes that the
export transaction has been concluded and export proceeds
have been fully realized. At certain customs offices, shipping bills
are processed electronically. So, at those offices, GR form has
been replaced by SDF (Statutory Declaration Form).
EXPORT PROCEDURE

Registration Of Exporters
 All intending exporters are required to register themselves with
the following authorities before commencing business;
 DGFT( regional authority) for obtaining Exporter Code
Number (IEC Number)
 Concerned Export Promotion Councils / Federation of
Indian Export Organization) for obtaining Registration-
cum Membership Certificates (RCMC)
 Registration with Value added Tax Authorities
 Registration with Central Excise Authorities
Registration Of Exporters

Exporter Code Number (IEC)

 No person is allowed to exportgoods without obtaining

an Exporter Code Number, from the regional authority,
unless specifically exempted, under any other provision
of FTP.
 Exporter of goods to Nepal or Myanmar through Indo-
Myanmar border areas, are exempted, provided that the
CIF value per consignment, is below Rs. 25,000.00
Registration Of Exporters
Application For Grant Of IEC
Number
An application for grant of IEC number shall be made by the
Registered Office/ H.O., of the applicant, to the Regional
Authority, (DGFT-Regional Office), under whose jurisdiction, the
Registered Office in case of the company, or H.O. in case of
others, falls in the Ayyat-Niryat Form, and shall be accompanied
by:
 DD or Bank Receipt for Rs. 1000.00
 ST registration certificate or passport copy (for an
individual), or copy of the legal authority letter when the
application is signed by an authorized signatory.
 Certificate from banker of the firm as required
 A copy of PAN card duly attested, copies of passport
size photographs etc
Registration Of Exporters

Registration with Export promotion Councils/ Commodity Boards/

Authorities
 To enable exporters avail of benefits/ concessions given
under the FTP, they are required to register with concerned
EPC/ C.B /or authority and obtain an registration –cum-
membership certificate (RCMC)
 The Exporter is required to apply in the prescribed format
to EPC relating to their main line of business
 Status Holder can also obtain RCMC from FIEO.

 Application for obtaining RCMC, to be made in prescribed

manner & accompanied by IEC code number. If application
is granted, EPC or FIEO will grant status of the exporter as
merchant exporter or manufacturer exporter
Registration Of Exporters

Registration with Value added Tax Authorities (VAT)

 Goods which are to be shipped out of the country for
exports are eligible for are eligible for exemption from
both VAT & CST.
 For this , the exporters are required to register
themselves, with the VAT authorities of the state, in
which they are located.
 The registration has to be done in the manner prescribed
by the state VAT authorities.
Registration Of Exporters

Registration with Central Excise Authorities

 Goods meant for export are exempt from CED.
 For this the manufacturer has two options :
 either they can deposit CED at the time of clearance
from factory
 or take refund or avail procedure for export of goods
without payment at the time of clearance.
Obtaining PAN
 Exporters & importers who obtain the IEC number are
also required to obtain PAN. An application in form
number 49A has to be submitted
Registration Of Exporters

Any exporter who wants to export his goods needs to obtain

PAN based Business Identification Number (BIN) from DGFT
prior to filing of Shipping Bill for clearance of export goods.
The exporter must also register themselves to the authorized
foreign exchange dealer code & open a current account in the
designated bank for credit of any drawback incentive.
All exporters intending to export under export promotion
schemes need to get their licenses, DEEC Books etc.
Pre-shipment procedure
 Pre-shipment procedure
 Conformed order
 •Availability of goods in warehouse for Export
 Availability of goods in warehouse for Export
 •Packing & Marking
 •Importers information on box
 Appointment of Custom House Agent
 •Agent for transaction of any business relating to the entry or
departure of
 conveyances or the import or export of goods at any Customs
station
 •Pay as per the charges of CHA
•Inspection by custom
•Custom put seal
•Goods inspect by inspection agency. 
Shipment procedure

Shipping and customs

formalities.
Reservation of space in the ship: the exporter has to contact the
shipping company well in advance for booking the required
space in the vessel for shipment of his consignment through his
C and F agent . and has to providing information about date of
shipment ,gross and net weight of each package, particular.
Arrangement of internal transport from factory/warehouse to the
port of shipment: transporting goods by road or rail from his own
place to shipment.
Shipment procedure

When goods reach the port of shipment, the exporter hands

over the complete set of documents to the forwarding agent;
which are submitted to the customs appraiser at the customer
house.
1) Shipping bill(five copies)
2) Commercial invoice(in duplicate)
3) Letter of credit together with the export contract.
4) Certificate of origin
5) G r form
6) ARE form
7) Packing list or packing note.
8) Excise invoice.etc
Post-Shipment Stage

The Post-shipment stage consist of the following stages:

1. Submission of Documents by the C&F Agent to the

Exporter
2. Shipment Advice to Importer
3. Presentation of Documents to Bank for Negotiation
4. Dispatch of Documents
5. Acceptance of the Bill of Exchange
Submission of Documents by the
C&F Agent to the Exporter

 On the completion of the shipping procedure, the C&F agent

submits the following documents to the exporter:
 A copy of invoice duly attested by the Customs
 Drawback copy of the shipping bill
 A full set of negotiable and non-negotiable copies of bill of
lading
 The original L/C, export order or contract
 Duplicate copy of the ARE-I form
Presentation of Documents to Bank for
Negotiation:

 Submission of relevant documents to the bank and the process of getting the
payment from the bank is called “Negotiation of the Documents” and the
documents are called “Negotiable Set of Documents”. The set normally
contains:
 Bill of Exchange, Sight Draft or Usance Draft
 Full set of Bill of Lading or Airway Bill
 Original Letter of Credit
 Customs Invoice
 Commercial Invoice including one copy duly certified by the Customs
 Packing List
 Foreign exchange declaration forms, GR/SOFTEX/PP forms in
duplicate
 Exchange control copy of the Shipping Bill
 Certificate of Origin, GSP or APR Certificate, etc.
 Marine Insurance Policy, in duplicate
Dispatch of Documents:

The bank negotiates these documents to the importer’s bank in

the manner as specified in the L/C. Before negotiating
documents, the exporter’s bank scrutinizes them in order to
ensure that all formalities have been complied with and all
documents are in order. The bank then sends the Bank
Certificate and attested copies of commercial invoice to the
exporter