Export Documentation

Dr. A.K. Sengupta

Former Dean, Indian Institute of Foreign Trade

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1. Export Documentation plays a vital role in international
marketing as it facilitates the smooth flow of goods and
payments thereof across national frontiers.
2. A number of documents accompany every shipment. These
documents must be properly and correctly filled.
3. C&F agent plays an important role in filling the documents.
4. On the basis of the functions to be performed, export
documents can be classified as under:
(a) Commercial documents
(b) Regulatory documents
(c) Export Assistance documents
(d) Documents required by importing countries

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5. (a) Commercial documents
These include commercial invoices, bill of exchange, bill of
lading, letter of credit, marine insurance policy and certificates.
(b) Regulatory documents
These are the documents which are required for complying
with the rules and regulations governing export trade
transactions, such as foreign exchange regulations, customs
formalities, export inspection etc.
(c) Export Assistance documents
These are the documents which are required for claming
assistance under the various export assistance measures as
may be in operation from time to time.

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 Presently, these refer to draw back of central excise and
customs duties, packing credit facilities etc.
(d) Documents required by importing countries
These are the documents which are required by the importer
in order to satisfy the requirements of his government. These
include certificates of origin, consular invoice, quality control
certificates etc.
6. Export documents could be classified into two categories
depending upon the specific requirements satisfied by them.
• Regulatory
• Operational

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7. Regulatory Requirements
An exporter has to follow strictly the rules and regulations of both
exporting as well as importing countries.
a) Exchange control-GR form (Guaranteed Remittance)
The form is prescribed by RBI. When we export goods we have
to give an undertaking to the RBI that we shall realize the
foreign exchange in lieu of the goods exported. This is done by
submitting GR form. Two copies of the form are submitted to
customs authorities at the port of shipment. The customs
certify the value declared and keeps in record the assessed
values. The original copy is sent to RBI. The duplicate copy is
returned which is submitted to the negotiating bank along with
other documents after shipment is made. The negotiating bank
sends the duplicate copy to RBI after the export proceeds are
realized.
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b) Export Regulation-License
There are certain commodities which are subject to export
regulations. One has to obtain a license for exporting such
controlled commodities.
(c) Pre-shipment inspection and quality control-Inspection
certificate
In order to build image of Indian goods there is a system of
compulsory pre-shipment inspection system of a number of
export goods. The exporter has to obtain an inspection
certificate.
d) Consular invoice
There are a number of importing countries which stipulate that the
exporter must submit certain specified documents duly certified
by their missions in the exporting countries. This condition
necessitates the exporter to obtain consular invoice.
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e) Generalized system of preferences (GSP)- Certificate of
origin
Some developed countries, which have offered concessions to the
developing countries under GSP, demand that exporters must
submit certificate of origin.
Hence under regulatory requirements the exporter has to submit:

•GR form
•Export license (wherever necessary)
•Inspection certificate
•Consular invoice
•Certificate of origin

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8. Operational Requirements
(a) Shipping bill
The customs authorities are charged with the responsibility of
verifying compliance on the part of the exporters with all types of
regulations in force in the country. For their own record purposes
they have devised the “Shipping Bill”. No shipping company or
airline will accept any cargo unless the customs authorities have
granted their permission on the shipping bill.
There are three types of shipping bill namely
(i) Shipping bill for free goods.
(ii) Dutiable shipping bills.
(iii) Duty draw back shipping bills

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(b) Commercial invoices and packing lists
Along with shipping bill, commercial invoices/ packing lists are
also to be submitted. This is the document of content. It gives
description of the goods, HS code number, price charged, the
terms of shipments, and the marks and number on the packages
containing the merchandise. The date, name and address of both
buyer and seller, name of the shipping vessel and the port of
disembarkation.
(c) Pro forma Invoice
Pro forma invoice is a temporary commercial invoice which is sent
by the exporter to importer
It covers, contemplated shipment of goods and serves two
purposes:
•Helps importer to obtain import license if required
•Helps in opening an LC 9
(d) Bill of lading or Airway bill
The carrier, whether it is a ship or an aero plane, has its own
document. In the case of ship, a very important document is
“Bill of Lading”
In case of shipment by air, this document is known as “Airway Bill”
BL is a document which is used by the shipping company to
acknowledge that the goods mentioned therein have been
placed on board of ship. The BL has the following functions-

I. It is a document of title to the goods shipped

II. It is a receipt for goods
III. It is an evidence of the contract of transport.

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 When the export contract is CIF, the exporter makes payment of
the freight and gets “freight paid” bill of lading. On the other hand
if the contract is FOB, the freight has to be paid by the importer. In
that case the shipping company will issue a “freight collect” bill of
lading. The BL gives details about the exporter, carrying vessel,
goods shipped, port of shipment and destination, the party to be
notified on arrival of the goods at destination.
(e) Marine Insurance Policy
The exporter must insure his goods against the risks while in
transit, and therefore has to take a marine insurance policy

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(f) Documents for claiming duty draw back
This is the document of content. It gives description of the goods.
Its code number, price charged, the term of shipment and the
marks and number on the packages containing the merchandise.
The date name and address of both buyer and seller, name of the
shipping vessel and the port of disembarkation.
Letter of credit
Through this instrument of LC, the promise to pay made by the
overseas importer is substituted by the promise to pay by the
exporter’s bank. This arrangement gives the exporter great
security.
Bill of Exchange
When a draft is drawn on a foreign bank, it is called bill of
exchange. A bill of exchange is a means of collecting payment
from the foreign buyer through the banking channel.
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