More about Exports

Shipping by Post: Shipping of goods may be affected by the post, subject to the foreign trade and foreign exchange regulation of the country.

The export of goods by parcel post, either as gifts or for commercial purposes, is regulated in accordance with the provisions of Postal Notice No. 13 dated 3rd December 1973. The postal notice is reproduced in the Handbook of Import Export Procedures which is published annually by the Ministry of Commerce.

It is the responsibility of the sender to ensure that the parcel is covered by a proper export license, where such a license is necessary, failing which the parcel is liable to be returned. The fact that the parcel is accepted by the post office in the first instance does not in itself constitute a guarantee that the requirements of export control have been fulfilled; and when it is returned, no claim for compensation or for refund on account of postage is entertained.

Shipping by Land: The procedure for the export of excisable goods by land to countries like Afghanistan is, by large, similar to the one laid down for export by sea. The AR – 4 forms form is, however, different for export by land; and this is to be filled along with form AR – 4A. These forms should be filled in quadruplicate instead of quintuplicate, as in the case of export by sea. The excisable goods whether sealed or not in the exporter’s factory/premises are presented to the Frontier Customs Officer/Border along with forms AR – 4/4A (original & duplicate). In the case of goods required to be repacked, the repacking and resealing is done under the supervision of the Frontier Customs Officer. If there is any change, the same will be recorded on the AR – 4/4A forms. Having allowed the export of consignment suitable endorsements are made in these forms, duplicates of which are returned to the exporter.

The exporter, having filled necessary certificate on the duplicate form, submits his claim for excise rebate to the Collector of central Excise from whose jurisdiction the goods were dispatched for export, in the manner and along with documents detailed earlier.

Negotiation of documents:

After shipping the goods, the exporter should arrange to obtain payment for the exports by negotiating the relevant documents through the bank. The set of negotiable documents usually consists of the following: Letter of credit; Commercial invoice, together with the packing slip; GR – 1 form; Certificate of Origin, Marine Insurance Policy; Bill of Lading.

In accordance with foreign exchange regulations, the exporter must lodge a full set of shipping documents with the bank within prescribed period. His bank would forward the necessary documents it the buyers bank for the collection of the amount form the importer.

Export Incentives:

If the exporter is entitled to any export incentives, he should take the necessary steps to realize it (them).

Export Documents:

More than two dozen commercial and regulatory documents are involved in the pre-shipment stage of an export transaction. These include 16 commercial documents and 9 regulatory documents.

Commercial documents:

The commercial documents are those which by customs or trade are required for implementing physical transfer of goods and their title from exporter to the importer and the realization of export sale proceeds.

14 out of the 16 commercial documents have been standardized and aligned to one another. Shipping Order and bill of Exchange could not be brought within the fold of the aligned documentation system because of their very different data elements and having very little in common with other commercial documents.

The commercial documents may be classified into principal documents and auxiliary documents.

Principal Export Documents

Out of the 16 commercial documents mentioned the exporter is required to send the following eight documents to the importer. These are known as the principal export documents:

1. Commercial Invoice
2. Packing List
3. Bill of lading
4. Combined Transport Document
5. Certificate of Inspection/Quality Control (where required).
6. Insurance Certificate/Policy (In case of CIF export sales contract)
7. Certificate of origin
8. Bills of Exchange and shipment Advice

Auxiliary Documents:

The remaining commercial documents (i.e. those other than the principal documents) are known as the auxiliary documents. They are:

1. Proforma Invoice;
2. Intimation of inspection;
3. Shipping Instructions;
4. Insurance Declaration;
5. Shipping Order
6. Mate Receipt
7. Application for certificate of Origin; and
8. Letter to the Bank for Collection/Negotiation of Documents