Export procedures and documentation

Thursday, October 29, 2015

Category : How to export
Export Documentation and processes
In this post, a basic idea about export procedures and formalities are explained.
This export process is same in almost all countries with slight variation. I hope
this post helps you in getting a basic training on how to export various products.
In almost all countries, a onetime licensing procedure to act as an
Exporter/Importer is required to be completed. In India, IEC number (Import
Export Code number) is required to act as an Importer or Exporter.
If you are an exporter, you would have already set up an Export company by
following necessary government rules and regulations. Bychoosing your export
product, you would have sent export samples to your international buyer if
required and got approved. After necessary communication with your overseas
buyer on terms of payment andterms of delivery, you arrange to issue proforma
invoice, in turn you receive export order followed bypurchase order from your
overseas buyer. The terms of payment for your export contract could be advance
payment, Documents against Acceptance DA, Documents against Payments DAP,
or under Letter of Credit LC. If you as overseas seller require to cover credit
risk against your overseas buyer, you can approach concerned authorities to
cover insurance. In India, ECGC is the authorized agency who covers such credit
risks for Indian exporters. Being an exporter, you will have an idea about other
risks involved in export. The terms of deliverycould be EXWorks, FOB, CFR, CIF, DAP, DDP or any other Inco terms. If you would like to
arrange finance against export , you can approach
your bank for preshipmentor post shipment finance against export
ordersobtained by you.
If any international quality check agencies like SGS,BVQI etc. are involved as per
the terms and conditions between you and your overseas buyer, such inspection
is arranged. After completing necessary quality check (QC) formalities, the goods
for export are arranged for proper packing to meet export
quality. Palletization orCrating is arranged for safety of cargo. If your export
goods are shipped by sea mode of transport, you decide whether the export
shipment is by LCL or FCL. Necessary information about shipping of LCL may be
collected if sent as LCL. Type of container is decided based on your nature of
export goods.
Ok, now the shipment is ready for export. The documentation department
prepares export invoice, export packing list etc. based on the purchased
order or LC. Application for certificate of origin (GSP Generalized System of
Preference) and other required documents required for importer are also
prepared. Necessary documents required for export customs clearance purpose
are forwarded to Customs broker. The export process at customs completes
either by customs broker or your representative directly. You as an exporter
decide whether your export shipment is FCL or LCL. Pre shipment inspections

like Phyto sanitary, Fumigationetc. if required have to be completed before

export of goods.
Bill of Lading or AWB is issued by carrier of goods.
If consolidator involved, HAWB or HBL is issued accordingly. If On Board Bill of
Lading required as per buyers requirement, you have to wait to get the export
shipment go onboard the vessel. If you export your goods from a dry port, you
have to wait till the cargo togo onboard the vessel, if you need On board bill of
lading from shipping carrier.
After completion of export customs clearance procedures and collection
of AWB or Bill of Lading, necessary documents for bank and overseas buyer are
prepared. The export bill can be disounted, arrange for collectionof payment if on
credit basis or negotiated if export shipment is on Letter of Credit basis. If you
have availedpacking credit from bank, the amount
of discounted/negotiated export bill amount will be adjusted once bank receives
export proceeds from your overseas buyer. If bank does not receive such export
proceeds from your overseas buyer, your bank may crystalize such export bills,
you/bank can approach credit insurance company (like ECGC in India) for claim, if
such cover done by you or your bank.
This article explains about exportation procedures to ship to overseas countries.
The above exportation process is almost same in all countries. Have you satisfied
with this information on different process to export goods? I hope, this article can
enlighten you on basic idea on how to export goods from your country to other
foreign countries.
You can express your views on procedures and formalities to export goods to
overseas.
Share below your thoughts about this article, export procedures and
documentation.

The above information is a part of Export import business Course online