Presented by: Radhika Saxena Akshay Yadav MBA (FC)

Export procedure describes the documents required for exporting from one country to another. Special documents may be required depending on the type of product or destination. Certain export products may require a quality control inspection certificate from the Export Inspection Agency. Some food and pharmaceutical product may require a health or sanitary certificate for export.

Preliminaries
confirmed orders Production & clearance of the product for export
Shipment
Negotiation of documents and

Offer & receipt of

realization of export proceeds

Obtaining various export

incentives

Importer-Exporter Code Number(IEC):Individuals and business firms intending to export and/import goods and/or services should obtain IEC Number from the regional licensing authorities, unless exempted by DGFT.This number mentioned is be shown in documents.

Membership in certain bodies: After obtaining the IEC number , the exporters and importers may obtain membership in certain bodies like Export Promotion Council ,India Trade Promotion Organization ,etc. Membership in these organization, help the exporter and importer regarding information and documentation. Registration : The exporter/importer have to register themselves with the Export Promotion Councils, Sales tax authorities,etc.

Inquiry is the request made by a prospective importer regarding his wish to import certain goods . Offer is a proposal submitted by an exporter expressing his intention to export specific goods at a specific price with specific terms and conditions. Exporter usually makes an offer in the form of a Performa Invoice". It includes following items: Name of the buyer: The complete name and address of the buyer /importer. Description of goods: A brief description of goods indicating technical , physical and chemical features . If necessary , a detailed description is provided.

Price: Unit wise and total price of the goods in internationally accepted currencies or mutually agreed currencies . It should also cover the quantity discounts and cash discounts both in unit-wise and total . The price indicated should be f.o.b.,c and f,c.i.f or in other internationally accepted form. Conditions of sale: Conditions of sale should be incorporated in detail . Important among them are:

1)

Validity: The period for which the invoice is valid. The importer can accept the invoice any time before the validity period. Buyer can stipulate the validity period in case of tenders.

2)

3)

Escalation Clause: The prices of the product may increase before the delivery period due to increase in the cost of inputs and thus , the cost of production . Therefore, the exporter may include an escalation clause for escalation of price. Delivery Schedule: A realistic delivery schedule should be indicated. Based on the pricing mode , the exporter has to indicate the delivery schedule . In case of c.i.f. quotations , the gods have to be delivered to the port of destination.

4)

5)

Inspection: The authority who will conduct inspection of goods,(if necessary)should also be indicated. Force Majeure Clause: The exporter may sometimes fail to deliver the goods in case of uncontrollable situations like war , riots, natural calamities , etc. Therefore , the exporter indicates the force majeure clause in order to get rescue in such conditions.
Payment terms: Payment terms like letter of credit , bill of exchange , etc., should be included.

Other Obligations: It also included-: Post-sales service to be provided by the exporter. Providing spare parts. Warranty/guarantee for the equipment/technology Confirmed Order: The buyer sends the confirmed order to the exporter by signing the duplicate copy of the invoice . The signed invoice by the importer becomes the confirmed order. Export license: The exporter has to obtain the exporter license from the authorities concerned, if the items to be exported require a license. Procuring Finance: If the exporter does not have the required finance to undertake the exports , he/she should obtain finance from different sources.

 The exporting house after obtaining a confirmed order should

produce the goods exactly as specified in the invoice. Packing and Marking: After the goods are procured , the exporter should arrange for packing and marking as per the international standards prescribed by various bodies . The Bureau of Indian Standards has prescribed packing standards for certain items. Quality control and Pre-shipment Inspection :The exporter has to arrange for quality control and pre-shipment inspection in order to ensure the quality of products as indicated in the invoice. Excise Duty Rebates: Government has exempted the goods meant for exports from the imposition of excise duty. Exporters can export the excisable goods either under claim for rebate of excise duty or in bond without payment of duty. The rebate is provided under Rule 12 of the Central Excise Rules of 1944.Exporter has to submit the following forms for rebate after the excise duty is paid. Gate Pass,GP-1, AR-4 form.

Transporting the goods by ship is cheaper compared to that by air. In addition, physical size of the products create hurdles for transporting by air. Regarding shipment the exporter has to contact shipping companies for space, after getting the confirmed order. Sometimes getting the space in ships is easy through agents as they have information of all shipping companies throughout the world.

Customs Clearance: The exporter has to get custom clearance of the goods before, they are loaded on the ship.
GR-1 Form: This form is an exchange control document required by the RBI. The exporter has to realize the proceeds of the goods exported within 180 days from the date of shipment from India. Shipping Bill: This is an exchange document needed by the custom officials for granting permission for shipment.

Export License: Export license is necessary for certain categories of goods. Export license can be obtained from the joint director general of foreign trade(JDGFT). Carting Order: Once the goods are ready for export and the shipping order is available, the exporter has to approach the superintendent of the concerned port trust for the latters permission to move the goods physically inside the port area. Custom Examination of Cargo at Docks: The custom authorities after checking the documents, check the products to be exported at the docks. Bill of Lading: The exporters forwarding agent collects the Mates Receipts & submits the same to the authorities.

The exporter submits the relevant documents to his banker for getting the payment for the goods exported. Bill of lading Commercial Invoice together with the packing slip an bill of exchange Certificate of origin GR-1 form Marine Insurance Policy Letter of credit

Export incentives include,

Duty Drawback: Exporter is eligible to get back the excise duty and central excise paid on all raw materials, components and consumables used in the production of goods exported, under this scheme. Excise Duty Refund: Exporter is eligible for refund of the excise duty. He/she can recover it after export, if he paid at the beginning. He/she also can execute a bond with the excise authorities without making the payment.