Export Marketin SEM IV Module IV Dr Jayashri

Export Marketin SEM IV Module IV Dr. Jayashri Kulkarni

Export Procedure and Documentation � Registration with different authorities � Shipping and Custom stage formalities � Export Documents

4. 1 Registration with authorities � Pre shipment procedure � Quality Control � Pre shipment Inspection

Quality Control � Need � To of Quality control: maintain quality standards � To maintain exporter's image � To ensue further chances of export orders � To strengthen the image of the country

Measures for Quality control Passed Export (Quality Control and Inspection) Act, 1963� Amended in 1984 as Export (Quality Control and Inspection) Amendment Act, (No. 40 of 1984) � Establishment of Export Inspection Council (EIC) � A certificate of export-worthiness is to be obtained by Exporter from EIC � . � The Indian Customs authorities require the inspection certificate issued by the designated agency before permitting the goods for shipment.

Export Inspection Council (EIC) � The Central Government by notification in the Official Gazette established it � Set up by the Government of India under Section 3 of the Export (Quality Control and Inspection) Act, 1963 � To ensure sound development of export trade of India through quality control and inspection and matters connected therewith.

EIC—contd… � Located at Delhi � Headed by a Chairman � The Executive Head of the Council is the Director of Inspection & Quality Control -day to day functioning of the Council. � The assurance to quality and safety � Food Safety management based certification.

Procedure for export trade � Preliminary stage � Pre shipment stage � Shipment stage � Post shipment stage

Preliminary stage � 1. Select product , To make or buy decision � 2. Registering with authorities— a. IT authorities-PAN b. DGFT-IEC no. c. EPC-to obtain registration /membership certificate d. Other authorities-FIEO, Salse Tax authorities, Chamber of Commerce � 3. Appointing agents/distributor in overseas market � 4. Approaching Foreign buyers

Pre shipment stage a. b. c. d. e. f. g. h. i. j. Confirmation of order from Importer Obtaining L/C Pre shipment Finance-Bank Export License if required Production/procurement of goods/Packing, packaging Pre shipment Inspection Central Excise Clearance ECGC cover Marine insurance Appointing c & f agent-booking space in ship, preparing documents

Shipment Stage Reserving the space in a Ship b. Shipping documentsc. Physical examination Of goods at the port. The C& F agent receives carting order, approaches Custom authorities-Let ship order a. Loading of Goods—Mate’s Receipt. -clean Bill of lading from Shipping Co. a.

Post Shipment Stage a. b. c. d. e. Dispatch of documents by C&F agent to exporter & importer Shipment Advice to importer-name of Shipping Co, Ship, Dt. &Timing to reach. With Bill of lading. Presenting all documents to Exporters Bank Claiming Export incentives-DBK, IPRS Follow up of receiving proceeds, Feedback etc.

Export Documents 1. Commercial Invoice/Packing List: � Basic document � Exporters bill for goods shipped � Contents � Important to both

Importance of Commercial Invoice to Exporter � Payment from importer � Quality control Inspection-Export Insp. Agency � Custom clearance at port of shipment � Documentary proof � To claim incentives by exporter � Recording & filing

Export Documents 2. Shipping Bill/ Bill of Export: � Custom’s permission for export � Used as an application for exports � As dock challan � Claiming dbk , other incentives

Types of Shipping Bill � Free shipping bill: white-----pale pink � Dutiable shipping Bill: yellow---pink � Drawback shipping Bill: yellow----yellow � Shipping Bill for shipment Ex-bond—yellow--yellow � Coastal shipping Bill:

Importance-Shipping Bill � Customs Clearance � Incentives � Loading goods in Ship � Valuation of goods by customs � Recording and Filing

Export Documents 3. Bill of Lading: � Issued by Shipping Co. � Contract between Shipping Co. and exporter for carriage of goods � Document of title. � Receipt issued by shipping Co. � Undertaking by shipping Co. to deliver goods at particular destination at particular time. � contents

Types of Bill of lading � Clean Bill � Claused Bill � Stale Bill � Freight paid Bill � Freight Collect Bill � To order Bill � Straight Bill � On Board & Received Bill � Container Bill

Importance –Bill of lading � To a. b. c. d. e. the Exporter : Legal document Contract for transportation Acknowledgement of receipt of goods Compensation-goods damaged in transit Calculation of exact amt. of Freight

Importance –Bill of lading � To the Importer: a. Document of title b. Semi negotiable document c. To pay proper freight amount To the Shipping Co. : a. To collect freight b. Protection against false claim of compensation

Export Documents 4. Consular Invoice; � Invoice certified by consulate of Importers country stationed at Exporters country. � Important for Importer for customs clearance. � Base for calculation of customs duty. � No wastage of time in valuation and opening, repacking of goods.

Export Documents 5. Certificate of Origin: � Certain countries of importers require it � Issued by Chamber of Commerce/ Trade Asso. Or any other authority � Goods are manufactured in specific country � Contents

Importance –Certificate of origin � A. proof of Indian origin � Customs clearance � Importer gets quick delivery � Special concession-tariff, claimed by importer � evidence-originality

Questions � Explain the Pre shipment procedure of Export Trade. � What are the formalities under Preliminary stage of export procedure. � What are the functions of c & F agent? � Write a note on Bill of Lading. � Distinguish between Commercial Invoice and Consular Invoice

Questions-contd… � What are the contents of Commercial Invoice? � Write a note on quality control and inspection. � What are important documents prepared under export trade? � Write short notes on: � Types of Bill of lading, Consulate Invoice � Post shipment stage � EIC