EXPORT BASICS

On 23 rd July
2012

Selection of Name of firm

An entrepreneur can choose
any name for the firms he/she
want to start.
Its desirable to indicate that the
business elate to
export
/import business.
indication

Approval of the name of the

firm

Respective authorities
Such as APEC for RMG.
REGIONAL LICENCING
AUTHORITY

Registration of organization

Companies Act,
1956
Partnership Act,
1932 etc

Opening of Bank Account

Open a/c with a branch of any
commercial bank authorized by RBI
to deal in foreign exchange.
The firm may require pre and post
shipment finance for its business.
Timely
credit
is
an
important
ingredients for the success or failure
of Business, in particular , in
international business in competitive
environment.

Obtaining PAN
EXPORT income is subject to a
number
of
exemptions
and
deductions under the Income Tax
Act. For claiming those exemptions
and deductions, it is necessary for
every exporter to obtain PAN from
the Income Tax authority. PAN is
essential while applying for IEC

Registration with sales Tax

authorities

Exporter need to pay sales Tax while

making purchase, so need sales Tax
number. Exporter/Purchaser has to give
Form- H to the seller /Mfcter. Exporter
has to make an application along with
copy of L/C or export order to the sales
Tax office that has jurisdiction to his
office for issuance of form H. Exporters
prepares form H , in triplicate, and
issues two copies to the seller and
retains one copy for his record.

IEC number

No Export or Import possible without IEC number

The registered / Head office of the applicant shall make
an application for grant of IEC number to the Regional
Office , DGFT( Regional Licensing authority) having
territorial jurisdiction over the firm
along with the
following documents,
1. Profile of the exporter /importer
2. DD for Rs 1,000 as fees. (Need to Update)!!
3. Certificate from the Banker of the applicant
4. Two copies of pass port size fotos of the applicant duly
attested by the bank
5. If there is any non-resident investment in the applicant
firm and such investment is with full repatriation benefit,
full particulars of such investment to be disclosed and
approval of RBI for such investment is to be enclosed.
6.
Declaration of applicant letterhead that there is no
association of the applicants firm with caution listed
frims.

Licensing authority shall allot IEC

number in a prescribed format. There is
no expiry date for IEC. It shall be valid
till it is revoked
This number is to be invariably, quoted
in all documents, prescribed by rules, in
particular Bill of entry for imports and
Shipping bill for Exports.
prior to 1997, it was necessary for every
exporter to obtain CNX number from
RBI, now its no longer required as IEC
number has replaced CNX number

Registration Cum membership

certificate
Its obligatory for every exporter to register
with appropriate
EPCs to obtain
Registration cum membership certificate.
A registered exporter receives ocean of
literature
and
necessary
guidance
regarding export market information from
the councils.
Any exporter may obtain RCMC from any
EPC such as Engineering EPCs/ AEPCs
With the receipt of certificate, the exporter
can be called as registered exporter.

Registration with ECGC

The
exporter
should
also
register with ECGC of India in
order
to
secure
export
payments against political and
commercial risks. It also helps
to get financial assistance
from commercial banks and
other financial organizations.

Registration under Central

Excise Law

Central excise levy is applicable if

the
following
conditions
are
satisfied:
a)The duty is on the goods
b) goods must be excisable
c)The goods must be manufactured
or produced
d)The goods must be manufactured
produced in India

When registration is to be made ?

( Excise)

Every Mfgrer /producer of goods has to submit

the prescribed application form to the jurisdiction
range officer of the central excise for registration
if the total value of goods cleared for home
consumption, known as Domestic Turnover
( Plz identify the amount latest for SSIs/ non SSI
units)
Allotment of registration Number: Once unit
is registered with central excise authority, they
allot ECC(Excise Control Code) number. The ECC
number is 15 digit code number with the first 10
igits being as same as PAN.

Applicability of Excise duty to

exporter

In respect of applicability of excise duty

on exports concerned, goods enjoy
exemption from duty on the final
product, meant for export. Where
exemption is not availed, refund of
excise duty paid is made, after actual
export. Secondly, refund of excise duty
is made on inputs used in the
manufacture of goods, meant for
export. The exporter has to submit the
prescribed for ARE-1, in sixtuplicate.

Registration with other

authorities

It is desirable for the exporters to

become members of local Chamber of
Commerce, Productivity council or
any other trade promotion recognized
by ministry of commerce and
industry. Local membership helps the
exporters in different ways, including
in
obtaining
COO
certificates
( country OF Origin) which is vital for
exports to certain countries.

Registration for business Identification

Number (BIN)

Exporters have to obtain PAN based BIN

from DGFT prior to filing for customs and
clearance for export goods. Purpose of
BIN is to bring a common identification
number to all persons dealing with
various regulatory agencies, such as
Central Excise and Customs Department,
IT Department, Office of DGFT etc., all
assessee would be considerably benefited
if they have to obtain just one
identification number for use by the
various government agencies.

EXPORT LICENSING
Part I: Prohibited Items: These items cannot be
exported or imported. These items include wild
life, exotic birds, wood and wood products in the
form of logs, timber, etc .,
Part-II: Restricted Items: These are the items ,
export or import of which is restricted through
license. They can be imported or exported only
in accordance with the regulations governing in
this behalf.
Part III: Canalized Items: Goods, which are
canalized, can be imported /exported through
the canalizing agency, specified in the negative
list. The DGFT may issue license to any other
person to import or export those items, which
are included in the negative list.

Lets see
DOCUMENTATI
ON

The types
Documentation: Overview Commercial and
Regulatory documents
Understanding
Invoice,
Packing
List,
Inspection Certificate, Certificate of Origin,
Shipping
Bill,
ARE-1,
Mate
Receipt,
GR/SDF(Guaranteed
Reciept/
Statutory
Declaration Form) Bill of exchange, Bank
Realisation Certificate, Bill of Lading and
Airway Bill, Bill of Entry etc.
Incoterms
Terms of payment
Letter of credits - Concept, Types of L/C, Parties
to L/C, L/C mechanism.

why Documents ?
a) as an evidence of shipment and title of
goods;
(b) for obtaining payment;
(c) to provide a specific and complete
description of the goods;
(d) for assessment of correct Duty for
clearance purpose;
(e) for obtaining Export Licenses;
(f) for obtaining export finance;
(g) for completing Pre-shipment Inspection;
(h) for claiming export benefits like Duty
Drawback, etc.

Commercial / Regulatory
Documents
Commercial set of documents are mainly

used
for Commerce. In other words these are
documents normally exchanged between buyer
and seller. Examples : Commercial Invoice /
Inspection
Certificate
/
Insurance
Certificate / Bill of Lading / AWB/
Certificate of Origin/ Bill of Exchange/
Shipment Advice/ Packing List
Regulatory documents are required in dealing
with various regulatory authorities such as
customs, RBI, Excise, Licensing authorities
Inspection and other Export Promotion bodies
for availing incentives etc. Examples: Shipping
Bill/ ARE1 from (Excise)/ RBI Declaration
Forms (GR)/Application for remittance of
currency/ Various Licences /Bill of Entry

Commercial / Regulatory
Documents
Referring to the Commercial set of
documents, it may please be observed
that these set of documents are prepared
from other set of documents (some of
these only). These are known as auxiliary
documents.
These documents may not be required by
the foreign buyer, but these are must for
preparation of main export documents,
known as Principle Commercial
Documents.

Understanding Documents
All documents whether it is for export or import
transaction generally contain following information
Name and address of the exporter and importer
Document No. and date.
Order No. and date
Port of discharge
Port of destination
Country of origin
Description of Goods
Marks and nos., model nos. [if any]
Weight
ITC HS Code No. /Indian Trade Classification.
Value
Currency
Terms of payment
Terms of shipment etc.

Invoice
It is itemized statement prepared and issued
by a seller at the time of dispatching the
goods to the buyer.
It helps the Customs Authorities to:
ensure that goods shipped are permitted by the
export policy.
compute the customs duty, if any, payable on the
export or the import.
check the quantity of goods. They generally open
a few packages at random and check the
veracity of details in the invoice.
check if there is any over-invoicing or underinvoicing (that may be resorted to by the
importer to reduce the import duty payable).

Invoices are often called bills.

Various types of invoices used in
International Trade are

Performa Invoice
Commercial Invoice
Consular Invoice
Legalized Invoice
Customs Invoice

Packing List
It is a consolidated statement in a prescribed format
detailing how goods are packed, marked and
numbered including weight and dimensions of each
package.
It is useful for customs at the time of examination
and warehouse keeper of buyer to maintain inventory
record and to effect delivery.
It have many details common from invoice but it
does not indicate unit rate value of goods.
The exporter or his/her agent, the customs broker or
the freight forwarder, reserves the shipping space
based on the gross weight or the measurement
shown in the packing list.

Packing List
Customs uses it as a check-list to verify:
the outgoing cargo (in exporting) and
the incoming cargo (in importing).

Basic functions of Packing List are:

To confirm the contents of a shipment as it left the
exporters premises.
To indicate weights, measures and the piece
count (i.e. the number of cartons or cases) in
that shipment.

It is prepared in 7-10 copies or as per the

requirement.

Inspection Certificate
Certificate of Inspection is issued by the Inspection Agency
concerned certifying that the consignment has been inspected
before shipment as per the requirements of the Exports (Quality
Control and Inspection) Act, 1963.
It satisfies the conditions relating to quality control and inspection
as applicable to it and is certified export worthy.
This certificate is required:

by customs before allowing shipment of

goods or
by a banker to negotiate the documents.
This certificate bears cross references of invoice or contract
number.

Inspection can be done by

Inspection Agency appointed by the Government

of India, i.e. Export Inspection Agency, Textile
Committee, Central Silk Board etc.
Inspection Agency may also be nominated by
importing countries Government i.e. SGS and
OMIC by some African Countries.
Sometimes
buyer
himself
appoints
an
independent private inspector to inspect the
goods.

If an inspection is a part of transaction, then exporter is required to

arrange for necessary inspection.
It can be a certificate of quality, weight, analysis, or the like.

Certificate of Origin [COO]

It is a certificate indicating the fact that the
goods which have been exported have
originated or manufactured in a particular
country. So it is a sort of declaration testifying
the origin of export.
It is normally required by an importer to clear
goods from the customs.
For political and social reasons, it is insisted by
Customs Authority of importing country before
goods are allowed to enter in the country.
It helps the importer to take an advantage in
duty concession, if any. For e.g. goods
imported under Free Trade Agreement.

 On the basis of COO, Customs can ensure

that certain prohibited goods of particular
countries are not imported.
It also ensures that goods have not been
reshipped by a seller who has brought them
into his own country from some other place
of origin.
It is sent to the importer by the exporter.
It is issued or signed by an independent
official organization, such as a Chamber of
Commerce, on prescribed form.

 These are often required:

to meet Customs requirements in the

importing state
to comply with Banking requirements
for other official and commercial reasons.

There are two categories of

Certificate of Origin :

1. Preferential Certificate of Origin and

2. Non-preferential Certificate of Origin

Preferential Certificate of
Origin
It entitles preferential treatment in duty in
the importing country.
These certificates are governed by rules of
origin which are always part of
Preferential Trading Agreements entered
into between two or more countries.
As far as India is concerned the following
agreements are noteworthy:

Generalised System of Preferences (GSP)

SAARC Preferential Trading Agreement (SAPTA)
Asia- Pacific Trade Agreement (APTA)
India-Sri Lanka Free Trade Agreement (ISLFTA)

Some of the agencies which are

authorised to issue PCOO are:
Export Inspection Agencies All
products.
Directorate General of Foreign Trade
& its regional offices - All products.
Spices Board, Ministry of Commerce
& Industry - Spices and Cashewnuts
Central Silk Board through 8 regional
offices all over India - Silk Products.
Coir Board Coir and Coir Products.
Textile Committee - Textiles and
made ups

Non-preferential Certificate of
Origin

It evidences the origin of goods and do

not bestow any right to preferential
tariffs.
The Government has also nominated
certain authorised agencies to issue
Non Preferential Certificate of Origin in
accordance
with
Article
II
of
International Convention Relating to
Simplification of Customs formalities

Shipping bill
Shipping Bill is an important document required
to seek permission of customs to export goods
by Sea/Air. It is prepared by the exporter and
submitted to the Customs.
The exporter of any goods has to file a SHIPPING
BILL as an entry for the purpose of export by
air or sea and a BILL OF EXPORT in respect of
export by land.
Cargo will be allowed to be carted to Dock/Port
sheds only after stamping and passing of the
shipping bill by customs authorities.
The exporter has to sign a declaration in the
Shipping Bill regarding the truth of its contents.

Shipping Bill normally contains:

the name and address of the importer/consignee
and exporter,
invoice number and date,
name of vessel carrying the goods,
name of master or agents,
port at which goods are to be discharged,
country of final destination,
description of goods, quantity details of each
case,
value of the goods as defined in the Sea Customs
Act,
number of packages with total weight,
marks and numbers, etc.

Types of Shipping Bills:

FREE SHIPPING BILL: Used for export of goods

which neither attract any Export duty/cess nor
entitled to any Duty Drawback
DUTIABLE SHIPPING BILL: Used when export
goods are subject to Export Duty/Cess. Duty is
charged either on quantity basis (Fixed amount per
kg. or per Metric tonne) or on certain percentage of
assessable value.
DRAWBACK SHIPPING BILL: Used when Duty
Drawback is to be claimed.
SHIPPING BILL FOR SHIPMENT EX-BOND: Used
when the goods are to be exported which have
been imported earlier and kept in bond prior to reexport.

 Types of Shipping Bills:

DEPB SHIPPING BILL: When DEPB benefit
is to be claimed.
DEEC SHIPPING BILL: This shipping bill is
used for export of goods under Advance
Authorisation (Duty exemption scheme).
DEEC CUM DRAWBACK SHIPPING BILL:
This shipping bill is used for export of goods
where both the schemes Duty Exemption as
well as Drawback are to be taken into
account.

Shipping bill is required to be submitted in

quadruplicate. If Drawback/DEPB claim is to be
made, one additional copy should be submitted.
Copies of Shipping Bill are as under:
Customs Copy: For record of Customs
Exporters Copy: For record of Exporters/ Exporter may
forward it to shipping company.
Export Promotion Copy: For office of DGFT. This copy is the
most
important
document
for
claiming
duty
Neutralisation/Exemption benefits plus export incentives
wherever applicable.
Exchange Control Copy: For negotiating the export
documents in bank. It is Proof of export for exchange
purposes.
DEPB Copy: For use in the import cell of customs for
registration of licence.

ARE
ARE stands for application for removal of excisable
goods for exports by Air/Sea/ Post/Land.
Goods which are sold overseas are exempted from
payment of excise duty or entitled for Rebate of
Excise Duty, if excise paid goods are exported.
Under both these circumstances, the document to
be used is ARE.
When goods are removed without payment of duty
for the purpose of export, they will get covered
under the provisions of Rule 19 of the Central
Excise Rules.

When excise paid goods are exported and

rebate of Excise Duty is to be claimed,
they will get covered under Rule 18 of
Central Excise Rules.
ARE is prepared before clearance of goods
from the factory gate.
ARE will specify whether goods are
exported under Rule 19 or under Rule
18.

There are three types of

ARE:
a) ARE 1: is used for physical export of
goods.
b) ARE 2: is used when goods are
removed for manufacture and packing
of the goods to be exported.
c) ARE 3: is used when goods are
supplied as deemed exports.

Mate Receipt

Mates receipt is a receipt issued by the Master or Mate of

the vessel stating that certain goods have been received
on board his vessel.
It is prima-facie evidence that the goods are loaded in the
vessel.
It contains:
the name of shipping line and vessel,
port of loading, port of discharge and place of delivery,
marks and numbers,
number and kind of packages, gross weight,
description of goods,
container status/seal number,
shipping bill number and date and
condition of cargo at the time of its receipt on board the
vessel.
It is serially numbered.

Mate Receipt
Port authorities recover port
production of this receipt.

dues

from

exporter

on

On payment of Dock dues, the exporter or his agent collects

the receipt from the Port-Trust authorities and hands over
to shipping company for preparing Bill of Lading.
Bill of Lading is prepared on the basis of Mates Receipt.
It is of a transferable nature.
In case of ascertaining the exact date of shipment, the
mates receipt date is also very important.
Normally, the date of Export is regarded as the date of
Mate Receipt or the date of Bill of Lading, whichever is
later.

Export Declaration Forms

(GR/SDF)
As per the exchange
regulations, exporters,
wishing to ship goods abroad, are required
to submit Export Declaration Forms to the
Customs authorities (whenever the value of
the shipment exceeds US $ 25,000) before
any export of goods from India is made.
It is to be filed by exporter stating that export
proceeds would be realized within 180 days
for non-status holder exporters and 360
days for status holder exporters.

Export Declaration Forms

(GR/SDF)
Relevant Declaration Forms, as prescribed by RBI under
Foreign Exchange Management (Export of Goods and
Services) Regulations, 2000.
GR Form
Used for exports to all countries made other than by
post including export of software in physical form i.e.
magnetic tapes/discs and paper media - When S/B is
filed manually. [prepared in duplicate]
SDF Form
Appended to the shipping bill, for exports declared to
Customs Offices notified by the Central Government
which have introduced Electronic Data Interchange
(EDI) system for processing shipping bills notified by
the Central Government. [prepared in duplicate]

These forms normally

Name and address
of exporter, IEC code number
contain:
description of goods.

and

Name and address of authorised dealer through whom the

proceeds of the exports have been, or will be, realised.
Details of commission due to foreign agent or buyer
should be correctly declared. Otherwise, difficulties may
arise at the time of remittances of such commission/
payment. An exporter should note this point very carefully.
It should be clearly indicated whether the export is on
Outright Sale Basis or On Consignment Basis
An exporter is required to give analysis of full export value,
a break-up of FOB value, freight, insurance, discount,
commission, etc.
An exporter has to mention the period within which he will
realise full export value of transaction. If the shipment is
on DA terms, then an exporter has to bring forex within
that period. However, normally maximum period allowed
is 180 days.

Statutory Declaration Form

[SDF
Procedure
for
Distribution

disposal of copies of SDF

The SDF form should be submitted in duplicate (to
be annexed to the relative shipping bill) to the
Commissioner of Customs concerned.
After verifying and authenticating the declaration
in form SDF, the Commissioner of Customs will
hand over to the exporter, one copy of the
shipping bill marked Exchange Control Copy in
which form SDF has been appended for being
submitted to the bank within 21 days from the
date of export.

Statutory Declaration Form

[SDF
Banks should accept the Exchange Control (EC)
copy of the shipping bill and form SDF
appended thereto, submitted by the exporter
for collection/negotiation of shipping
documents.
The manner of disposal of EC copy of shipping
Bill (and form SDF appended thereto) is the
same as that for GR forms.

Bill of Exchange
Bill of Exchange [BE] is a document drawn and
is an order by the exporter to the buyer to pay
the money in specified exchange.
It is also known as a draft.
A bill of exchange is accompanied by
commercial documents which are presented by
a bank and released to the buyer either against
payment (at sight) or against a signature for
payment on a specified future date.
It is an unconditional written order.

Bill of Exchange
When a BE is drawn on foreign firm it is termed
as a foreign draft or bill of exchange.
It is prepared either in an international currency
or Indian rupees depending on the terms of the
contract.
Accordingly, the bill is known by the name of
currency in which it is drawn.
e.g. a bill drawn in US dollars is known as a
Dollar Bill and when drawn in Rupees, it is
termed as Rupees Bill.

The most common versions of a

bill of exchange are:
A) Sight Draft
When the drawer (exporter) expects the drawee (importer) to
make payment immediately upon the draft being presented to
him.
Unless and until the Draft is received, the Negotiating/
Collecting Bank does not hand over the Shipping documents
and the buyer cannot take delivery of goods.

B) Usance Draft
When draft is drawn for payment at a date later than the date
of presentation.
It may be a fixed future (specific) date or determinable date
according to the period of credit viz. 30 days, 60 days or 90
days etc.
It is presented to the drawee (importer) who will retire the
documents by accepting the draft by putting his signature and
date.

 When the payment is received

in advance no Bill of Exchange
is required to be drawn.
Parties to a bill of exchange
i. Drawer who makes the order for
making payment.
ii.
Drawee whom the order to
pay is made.
iii.
Payee whom the payment is
to be made.

Features of a Bill of
Exchange:

A bill must be in writing, duly signed by its

drawer, accepted by its drawee and
properly stamped.
It must contain an order to pay. Words like
please pay US $ 5,000 on demand and
oblige are not used.
The order must be unconditional.
The sum payable mentioned must be
certain or capable of being made certain.
The parties to a bill must be certain.

Bank Realisation Certificate

Once the export proceeds are realised, the
exporter has to prepare Bank Certificate of
Export and Realisation for the purpose of
claiming export benefits, incentives, etc.
It is prepared as per Form No.1, given in
Appendix 22A of Handbook of procedures.
To prepare this certificate, the date of
realisation is most essential, as the exporters
have to apply for the export benefits,
incentives, etc. within six months following
the month/quarter of the realization month.

It is signed by the authorized signatory

of the firm/company with full name in
block letters with designation, full
official and residential addresses.
Bankers attest this certificate as true
and correct after verifying the
particulars, including the date of
mate receipt. This date is the most
important, as this is the actual date
of export.

Bank Realisation Certificate

It is signed by an authorized signatory of the bank
with his name and designation.
Bankers affix certificate number and date and also
mention the Authorized Foreign Exchange Dealer's
Code number allotted to Bank by Reserve bank of
India.
For this purpose, this certificate must
accompanied with the following documents:-

be

A copy of invoice,
A copy of customs attested export promotion copy of the
shipping bill,
A copy of Bill of Lading/ PP receipt/ Airway bill,
A copy of the insurance certificate/Insurance policy/cover.

Bill of Lading (B/L)

Bill of Lading is the transport document associated
with Sea freight.
It is issued by the Shipping Company or its agent
or master of a ship acknowledging that specified
goods have been received on board as cargo for
conveyance to a named place for delivery to the
consignee who is usually identified.
It is a document of title to the goods and, as such,
is freely transferable by endorsement and
delivery.

 Bill of Lading serves three purposes as:

Receipt given by Shipping Company as goods
described on document has been received by
it/carrier.
Evidence of the contract of carriage by sea
between the shipping company and the shipper
(exporter or importer).
Document of title to the goods and can be used to
obtain payment or a written promise before the
merchandise is released to the importer.

For the bill of lading to be negotiable it must be:

1. made out to the order to the shipper.
2. signed by the steamship company.
3. endorsed in blank by the shipper.

It is the only evidence to file a claim against

the shipping company in the event of nondelivery, defective delivery or short-delivery
of the cargo at the destination.
For preparation of B/L the exporter should
submit the complete set of B/L together with
mate receipt to the shipping company which
will calculate the freight amount on the basis
of measurement or weight.
On payment of freight, the shipping company
returns the B/L duly signed and supported by
requisite adhesive stamps.

Generally made out in the sets of two or

three originals duly signed by the master
of the ship or the agent of the steamship
company.
All the originals are equally valid for taking
the delivery of the goods. Once one
original is utilised the other originals
become null and void.
Marked as Non-negotiable copy cannot be
utilised for taking the delivery of goods.

Bill of Lading contains the following

information:
Shipping companys
name and address.
Consignees name and address.
Notify party
Name of the vessel,
Port of loading/Shipment and port of discharge.
Shipping marks and Numbers, Cubic measurements,
weights
Description of the goods
Number of packages.
Shipped on board with date-rubber stamp.
Gross weight and net weight.
Freight details
Signature of the shipping companys agent.
Container number if any.
Shippers name and address.
B/L Number and Date
Originals
Terms (on reverse)

Bill of Lading can be further

described as under:Shipped on Board :- When goods are
actually shipped on board.
Received for shipment :- When goods
have been handed over to agent for
shipment.
Through B/L:- When two or more carriers/
different modes of transport form i.e. road,
rail, air, and sea employed to reach goods
to their final destination.

 Transshipment B/L:- When there is no

direct service between the two ports and
ship-owner is prepared to transship the
goods at an intermediate port.
Stale B/L:- i.e. a late B/L that has been
held too long before it is passed on to a
bank for negotiation or to the consignee.
Clean B/L:- Where the carrier has noted
that the goods have been received or
loaded in apparent good condition (no
apparent damage, loss, etc.).

Claused
B/L:Which
contains
additional clauses/notations limiting
the responsibility of the shipping
company which specify deficient
condition(s) of the goods and/or
packaging.
Combined Transport B/L:- When
different modes of transport are used;
usually issued when goods stuffed at
shippers premises and delivered at
consignees premises.

 Charter Party B/L:- Where a shipper has

contracted with a shipping line to charter a vessel
for the movement of cargo. It is issued by the
carrier or its agent in the charter shipping. Unless
otherwise authorized in the letter of credit (L/C), the
charter party B/L is not acceptable in the L/C
negotiation.
Freight Paid B/L:- When freight is paid at the time
of shipment or in advance, the B/L is marked, freight
paid.
Freight Collect B/L:- When the freight is not paid
and is to be collected from the consignee on the
arrival of the goods, the B/L is marked, freight
collect.

Negotiable B/L:- It is a title

document to the goods, issued to
the order of a party, usually the
shipper, whose endorsement is
required
to
effect
its
negotiation.Thus, a shipper's order
(negotiable) B/L can be bought,
sold, or traded while goods are in
transit and is commonly used for
letter of credit transactions.

Lets stop here

We shall
continue with
ARE next class