IMPORT AND EXPORT DOCUMENTATION IMPORT Import trade refers

IMPORT AND EXPORT DOCUMENTATION

IMPORT Import trade refers to the purchase of goods from the foreign country. The procedure for import trade differs from country to country, depending upon the import policy, the statutory requirements and customs of different countries. In almost all the countries of the world import trade is controlled by the government .

IMPORT PROCEDURE TRADE ENQUIRY PROCUEMENT OF IMPORT LICENCE OBTAINING FOREGIN EXCHANGE DISPATCHING A LETTER OF CREDIT OBTAINING NECESSARY DOCUMENTS CUSTOMS FORMALITIES AND CLEARING OF GOODS MAKING THE PAYMENT CLOSING THE TRANSCATION

1. TRADE ENQUIRY An enquiry is a written request from the intending buyer or its agent for information regarding the price and terms on which the exporter will be able to supply goods.

2. PROCUREMENT OF IMPORT LICENCE A person or a firm cannot import goods into India without a valid import license. An import license may be either general license or specific license. Under general license goods can be imported from any country. Individual license authorizes to import only from specific countries.

FOR THE PURPOSE OF ISSUING LICENSE, THE IMPORTERS ARE DIVIDED INTO THREE CATEGORIES Established Importer Actual users Registered Exporter

Established Importer If the person imported goods of the class in which he is interested during the basic period prescribed for such class, he is treated as an established importer. Actual user If the person[importer]import goods for his own use in industrial manufacturing process is called actual users. Registered exporter importing against exports made under a scheme of export promotion and others have to obtain license from the chief controller of exports and imports. Open General Licence List[O. G. L] The Government issues from time to time a list of commodities and products which can be imported obtaining a general permission only. This is called open General Licence List.

3. OBTAINING FOREIGN EXCHANGE Importer has to make payment for imports in the currency of exporting country. The foreign exchange reserves of any country are controlled by Government and are released through its central bank. In India, the exchange control department of Reserves Bank of India deals with the foreign exchange.

4. DISPACTCHING A LETTER OF CREDIT Exporter wants to be sure that there is no risk of non-payment. Usually for this purpose he asks the importer to send a letter of credit to him. A letter of credit is popularly known as L/C.

5. OBTAINING NECESSARY DOCUMENTS On the receipt of letter of credit the exporter arrange for shipment of goods and sends an advice note to the importer immediately after the shipment of goods. The exporter then draws a bill of exchange on the importer for the invoice value of goods. The shipping documents such as the bill of lading, invoice insurance policy, certificate or origin, customer invoice etc. also attached to the bill of exchange.

6. CUSTOM FORMALITIES AND CLEARING OF GOODS After receiving documents of title of the goods, the importers only concern is to take the delivery of goods when the ship arrive at the port and to bring them to his own place of business.

7. MAKING THE PAYMENT The mode and time of making the payment is determined according to the terms and conditions as agreed to earlier between the importer and exporter, usually 30 to 90 days are allowed to the importer for making the payment of D/A and D/P bills.

8. CLOSING THE TRANSACTION Last step in import procedure is closing the transaction. But if he is not satisfied with the quality of goods he will write to the exporter and settle the matters. Incase the goods have been damaged in transit the insurance company will pay him the compensation under an advice to the exporters.

EXPORT PROCEDURES AND DOCUMENTS

OBJECTIVES What are the important steps in export transaction „ What are the standardized and aligned pre-shipment documents „ What are the documents related to goods „ What are the certificates related to shipment

TOPIC „What are the documents related to payment What are the documents related to inspection What are the documents related to excisable goods What are the documents related to exchange regulation

INTRODUCTION The exporting activity involves several commercial and regulatory procedures. These procedure also involve considerable documentation requirements. The export documentation involves the preparation of the specified number of copies of the prescribed documents pertaining to the different procedures.

PRELIMINARIES STEPS IEC number the IEC numbers are normally allotted by the regional licensing authorities. Membership cum registration: membership of certain bodies will help the exporters in a number of ways Inquiry and offer: An inquiry is a request from a prospective importer to be informed of the terms and conditions of sale. Confirmation of order: Once the negotiation are completed and conditions are acceptable to the buyer and seller, the buyer may place and order with the exporter. Packing and marketing: once the goods are ready, they are packed and marked properly. Export license: The exports of some items are banned and of some items controlled by means of licenses, though many items are permitted to be exported freely. „ Finance: If the exporter require pre-shipment financial assistance, he should take the necessary steps to obtain it.

Production/procurement of goods : Once the order is confirmed, the exporter should take necessary steps to ensure the timely availability of the goods of the specifications required and execute the export order promptly. Shipping space : As soon as the export order is confirmed, the exporter should contract the shipping companies which have sailings for the port to which goods have to be sent and book the required shipping space.

CUSTOMS FORMALITIES Goods may be shipped out of India only after Customs clearance has been obtained. Following documents to the customs authorities, Shipping bill Declaration regarding truth or statement made in the shipping bill Invoice SDF Export licence Quality control inspection certificate Certificate of origin

EXCHANGE CONTROL FORMALITIES An exporter, who has sent goods outside the country, has the obligation to satisfy the Reserve Bank of India that he has received payment from his overseas buyer. Make a declaration on the prescribed form to the Collector of Customs that foreign exchange, representing the full export value of goods, has been or will be disposed of in the manner and within the period specified by the RBI Negotiate all shipping documents, including those relating to sales on consignment basis, through authorized dealers. Receive payment by an approved method„ Surrender the foreign exchange received from exports to the exchange control authority through authorized dealers.

SHIPPING THE GOODS Goods may be exported to foreign by sea, air, post, land or river. Shipping by sea: To obtain the permission of the port authorities for the movement of goods into the port, it is necessary to present the cart ticket to the gate warden/inspector/keeper at the port gate. Shipping By Air : Shipping by air has become popular for such products as commodities which are perishable and seasonal or high in cost but low in bulk. Shipping By Post : Shipping of goods may be effected by post, subject to the foreign trade and foreign exchange regulations of the country. Shipping By Land : The procedure for the export of excisable goods by land to countries like Afghanistan is, by and large, similar to the one laid down for export by sea.

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.

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

PRINCIPAL EXPORT DOCUMENTS Export licence Quality control inspection certificate Certificate of origin Letter of credit ARE-1 Contract order Packing list MSDS Catalogue Literature

AUXILIARY DOCUMENTS Performa invoice Intimation for inspection Shipping instructions Insurance declaration Shipping order Mate receipt Application for certificate of origin Letter to the bank for collection/negotiation of documents.

REGULATORY DOCUMENTS Gate pass-1/gate pass-2 – prescribed by Central Excise Authorities AR 4/AR 4 A form - prescribed by Central Excise Authorities Shipping Bill/Bill of Export – prescribed by Central Excise Authorities Export Application/Dock Challan- Prescribed by Port Trust. Receipt for payment of Port Charges Vehicle Ticket Exchange Control Declaration-Prescribed by RBI GR/PP Forms Freight Payment Certificate Insurance Premium Payment Certificate

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BILL OF ENTRY

IMPORT EXPORT CODE