Exports – Beyond Confirmation of order

As soon as the export order is confirmed, the exporter should contract the shipping company which has sailings for the port to which goods have to be sent and book the required shipping space.

The exporter may get the necessary information about sailings from the Daily Shipping Intelligence, to which he may subscribe. Shipping companies usually have their agents, who accept the cargo on their behalf. There are clearing and forwarding agents who will work for the exporter on a certain commission. These gates are very useful, for they have regular contacts with shipping companies and their agents, and dispatch to clearing and forwarding agents.

On the exporter’s application or on the application of the freight broker on the exporter’s behalf, the shipping company issues its acceptance if the space applied for is given.

There are two kinds of acceptance the shipping advice and the shipping order (dead freight). In the shipping advice the shipping company is not bound to accept m the cargo. It is only intimation to the party that the goods will be accepted on the ship – they may or may not be accepted. But when a shipping order is issued, the shipping company binds itself to accept the cargo and for its failure, it can be sued for loss or damages. The shipping order is an instruction by the shipping company to the commanding officer (captain) of the ship that the goods from the exporter as per the details given should be received on board. The original is given to the exporter, and a copy is sent to the commanding officer of the ship.

Packing and Marking:

Once the goods are ready, they are packed and marked properly. If the buyer has given instructions about packing and marking, they should be followed accordingly. If there are no such instructions, it should be ensured that the packing and marking are of the standards recommended or specified. The Bureau of Indian Standards has prescribed packing standards for certain items the British Standard Packing Code, published by the British Standards Institution, and the Exporters’ Encyclopedia published in the USA, give detailed packing instructions. Shipping companies also give certain packing instructions, especially for highly dangerous goods.

The exporter should take meticulous care in respect of marking also. The marking should include the shipping marks of the consignee, the port of destination, measurements of each packing (if there are number of cases then size of each carton or wooden case), country of origin and any other matter the buyer has specified. The International Cargo Handling Co-ordination Association has, for the use of exporters and carriers, made a number of recommendations for the, marking of goods carried by Ocean going vessels. The International Trade Forum has set out important rules of good marking procedures which should be followed by exporters.

Quality Control and Pre-Shipment Inspections:

Needless to say, goods should be exported only after ensuring that they are of proper quality. If the quality of the goods exported is not satisfactory, it will affect the image of not only the exporter but of the whole nation. The exporter should, therefore take every care it ensure the quality of exports. The government has also taken some steps in this regard. The Export (Quality Control and Inspection) Act, 1963 empowers the government to issue a notification about the commodities for the Compulsory Quality Control and Pre Shipment Inspection Scheme; and once a commodity is notified it cannot be exported unless it is accompanied by a certificate of export worthiness from the Export Inspection Council or any other agency duly authorized for this purpose.

Excise Clearance:

As a matter of policy, the government has granted excise duty exemption for export products. Excisable goods may be exported either under claim for rebate of excise duty or in bond. In the case of export under claim for refund of exercise duty, the duty is first paid and its refund is claimed after the export has been affected. In the case if export is under bond, goods are allowed to be exported without payment of duty on execution of a bond, with sufficient surety and security it the prescribed bond, and under conditions as the Controller of Central Excise may approve, for at least equivalent to the duty chargeable on the goods.