EXPORT IMPORT PROCEDURES AND DOCUMENTATIONS.

Name : Vishal Virola Class : SYBMS B Roll no : 115

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INDEX

INTRODUCTION

EXPORT PROCEDURE OF THE UNIT

EXPORT DOCUMENTS

MY EXPERIENCE

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ACKNOWLEDGEMENT

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BIBLIOGRAPHY

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INTRODUCTION

At Magic Impex, employees keeps themselves updated of the evolving needs and demands of the market. The vast range of their products such as jogging suit, sweatshirts, polo shirts, T shirts etc. has lead them to become one of India' leading surplus suppliers and wholesale exporters of knitted & hosiery garments. They take utmost care to ensure consistent high quality merchandises, regularly create new patterns and accept buyer's specifications. They are well equipped with efficient management and quality control system and enjoy good recognition in market for their quality products. The forte of the organization is to constantly introduce the innovative designs and keep the pace with the latest trends that are in vogue. Magic Impex is one of the exporters of women readymade garments, men readymade garments and kids readymade garments from India. The company exports readymade garments mainly to North America, Eastern Europe, Southeast Asia, Mid East and Western Europe. Magic Impex burning desire to evolve grow and one day position itself as a responsible reputed corporate entity. they introduce themselves as the wholesale exporters of nightshirts, pyjamas, t shirts, polos, tanktops, tops, bootleggers, rompers, ensembles, womens apparel, womens lingerie, womens sportswear, mens t shirts, mens shirts, caps, ties,yoga wear, womens camisoles, womens bridal wear, mens sportswear and other garments for mens, womens & kids. They believe in improving the peoples quality of life through their products and excellent services remained their driving force. they take pride in introducing ourselves as one of India's dominant manufacturers, exporters and dealers of Men's Readymade Garments, Ladies Readymade Garments and Fabrics. Million's Fashion, a label which brings to mind the opulence of glorious craftsmanship, the magnificence of luxurious fabrics and the grandeur of rich and unique
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hues. They also have the expertise and capability to execute bulk order and customized orders as per the buyer's demand. The array of quality products is according to the needs of the industry in current market scenario. They constantly monitor industry to determine future requirements. It is the practice of Million's Fashion to provide adequate resource to meet and exceed these requirements. They offer gorgeous, warm and extremely comfortable knitwear. Their knitwear combines traditional stitches with contemporary designs for a striking look that is modern yet classic. They are the manufacturer exporter cum agency holder for men's wear, ladies wear, kids wear, all type of yarns, natural colour fabrics, capital goods and raw materials. they have perfected themselves by taking clues from the errs and achievements of theirs as well as of their competitors. They are ever ready to adopt themselves to market situations. Continual product innovation and integration of new technologies in their system are the two key factors that have helped them in scripting a successful corporate story. They have two units for manufacturing garments in the outskirts of Mumbai, located at bhiwandi and sangli. All garments are manufactured at these units as per the customers order and are delivered on time. They have an employee base of around one thousand people working at the factory.

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EXPORT PROCEDURE OF THE UNIT

Export procedure consists of several commercial and regulatory formalities, which an exporter is required to complete during the course of export trade transactions. These formalities are complex and time consuming and involve considerable documentation. The involvement of two or more nations in the international trade transactions makes things more complicated. Hence, exporter is not only required to possess adequate knowledge of the procedure and formalities of his own country but also of the importing country. Last but not the least, he should also ensure that all the required documents, whether commercial or regulatory, are prepared and filed with the appropriate authorities in the prescribed format on time. Pre-shipment Procedure Pre-shipment stage consists of the following steps: Approaching Foreign Buyers: In order to secure an export order, the company makes use of techniques such as public relation, personal selling and participation in trade fairs and exhibition. Procurement of Order: The Company receives order from the importer based on their requirements and quality standards. As soon as the order is received, the exporter processes it by making an offer in the form of proforma invoice. Preparation of Proforma Invoice: The exporter prepares the proforma invoice keeping in mind various requirements of the importer and quotes prices accordingly. The exporter sends the proforma invoice to the importer in order to confirm the order. Confirmation of Proforma Invoice: The importer approves the order prepared by the exporter in the form of Proforma Invoice.

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Shipment Procedure Shipment procedure consists of the following steps. Contacting the THS: THS is in charge of clearing the goods produced from the exporter's port to the importer's port, the exporter sends the consignment to various THS's and confirms the one who quotes the lower price. THS charges are included in the proforma invoice sent to the importer. Two days prior to the delivery, Invoice and Packing list are prepared which has to be approved by the THS. The THS charges are actually incurred by the importer. Time of delivery is provided by the exporter to the THS, who in turn let the exporter know about the exact time to deliver the goods, depending on the availability of the vessel. Preparation of the Checklist by the THS: THS prepares the checklist which has to be approved by the company. Once approved THS issues Shipping Bill, the original one to the exporter and the duplicate one to the commanding officer of the ship. On approval goods are transported to the Nava-Sheva port via road. Preparation and Processing of Shipping Documents: As the goods reach the port, the exporter should issue the detailed instructions to the Shipping agent for the shipment of cargo along with a complete set of documents. Preparation of Bill of Lading: As soon as the ship leaves the port bill of lading is prepared. It is prepared as on the date of leaving the ship.

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Post-Shipment Procedure Post-Shipment procedure consists of the following steps. Issuance of Bill of Lading: The Bill of Lading is issued to the exporter from the THS. Shipment advice to the Importer: After the shipment of goods, the exporter intimates the importer about the shipment of goods giving him the details about the date of shipment, the name of the vessel, the destination, etc. The company sends copy of documents via mail such as Invoice, Packing list, and Bill of Lading via mail. Receiving the Payment from the Importer: The Company on the basis of the proof given send to the party via mail. Payment is done by the party agreeing to the authenticity of all the documents and the details provided by the exporter. Issuance of documents from the exporter: On receiving the payment from the importer, the exporter sends the required documents to importer. Obtaining the Mates Receipt: The exporter receives the Mates receipt 15 days after receiving Bill of Lading. In case, the goods are delivered earlier than its date, then the exporter has to incur dam rage charge. Receiving the exports: On receiving the documents the importer approaches his port to procure the goods exported.

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EXPORT DOCUMENTS
Commercial Invoice Commercial invoice is an important and basic export document. It is also known as a 'Document of Contents' as it contains all the information required for the preparation of other documents. It is actually a seller's bill of merchandise. It is prepared by the exporter after the execution of export order giving details about the goods shipped. It is essential that the invoice is prepared in the name of the buyer or the consignee mentioned in the letter of credit. It is a prima facie evidence of the contract of sale or purchase and therefore, must be prepared strictly in accordance with the contract of sale. Significance of Commercial Invoice It is the basic document useful in preparation of various other shipping documents. It is used in various export formalities such as quality and preShipment inspection excise and customs procedures etc. It is also useful in negotiation of documents for collection and claim of incentives. It is useful for accounting purposes to both exporters as well as importers.

Certificate of Origin The importers in several countries require a certificate of origin without which clearance to import is refused. The certificate of origin states that the goods exported are originally manufactured in the country whose name is mentioned in the certificate. Certificate of origin is required when: The goods produced in a particular country are subject to preferential tariff rates in the foreign market at the time importation.

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 The goods produced in a particular country are banned for import in the foreign market. Significance of the Certificate of Origin Certificate of origin is required for availing of concessions under Generalised System of Preferences (GSP) as well as under Commonwealth Preferences (CWP). It is to be submitted to the customs for the assessment of duty clearance of goods with concessional duty. It is required when the goods produced in a particular country are banned for import in the foreign market. It helps the buyer in adhering to the import regulations of the country. Sometimes, in order to ensures that goods bought from some other country have not been reshipped by a seller, a certificate of origin IS required.

Bill of Lading The bill of lading is a document issued by the shipping company or its agent acknowledging the receipt of goods on board the vessel, and undertaking to deliver the goods in the like order and condition as received, to the consignee or his order, provided the freight and other charges as specified in the bill have been duly paid. It is also a document of title to the goods and as such, is freely transferable by endorsement and delivery. Bill of Lading serves three main purposes: As a document of title to the goods; As a receipt from the shipping company; and As a contract for the transportation of goods. Significance of Bill of Lading for Exporters
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 It is a contract between the shipper and the shipping company for carriage of the goods to the port of destination. It is an acknowledgement indicating that the goods mentioned in the document have been received on board for the Purpose of shipment. A clean bill of lading certifies that the goods received on board the ship are in order and good condition. It is useful for claiming incentives offered by the government to exporters The exporter can claim damages from the shipping company if the goods are lost or damaged after the issue of a clean bill of lading. Significance of Bill of Lading for Importers It acts as a document of title to goods, which is transferable endorsement and delivery. The exporter sends the bill of lading to the bank of the importer so as to enable him to take the delivery of goods. The exporter can give an advance intimation to the foreign buyer about the shipment of goods by sending him a non-negotiable copy of bill of lading Significance of Bill of Lading for Shipping Company It is useful to the shipping company for collection of transport charges from the importer, if not collected from the exporter.

Airway Bill An airway bill, also called an air consignment note, is a receipt issued by an airline for the carriage of goods. As each shipping company has its own bill of lading, so each airline has its own airway bill. Airway Bill or Air

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Consignment Note is not treated as a document of title and is not issued in negotiable form. Importance of Airway Bill: It is a contract between the airlines or his agent to carry goods to the destination. It is the document of instructions for the airline handling staff. It acts as a customs declaration form. Since, it contains details about freight it also represents freight bill.

Packing List The exporter prepares the packing list to facilitate the buyer to check the shipment. It contains the detailed description of the goods packed in each case, their gross and net weight, etc. The difference between a packing note and a packing list is that the packing note contains the particulars of the contents of an individual pack, while the packing list is a consolidated statement of the contents of a number of cases or packs.

Bill of Exchange The instrument is used in receiving payment from the importer. The importer may prefer Bill of Exchange to LC as it does not involve blocking of funds. A bill of exchange is drawn by the exporter on the importer, to make payment on demand at sight or after a certain period of time. Parties to bill of exchange. 1. The drawer: The exporter / person who draws the bill. 2. The drawee: The importer / person on whom the bill is drawn for payment. 3. The payee: The person to whom payment is made, generally, the exporter / supplier of the goods.

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Mates Receipt Mate's receipt is a receipt issued by the Commanding Officer of the ship when the cargo is loaded on the ship. The mate's receipt is a prima facie evidence that goods are loaded in the vessel. The mate's receipt is first handed over to the Port Trust Authorities. After making payment of all port dues, the exporter or his agent collects the mate's receipt from the Port Trust Authorities. The mate's receipt is freely transferable. It must be handed over to the shipping company in order to get the bill of lading. Bill of lading is prepared on the basis of the mate's receipt. Significance of Mate's Receipt It is an acknowledgement of goods received for export on board the ship. It is a transferable document. It must be handed over to the shipping company in order to get the bill of lading. Bill of lading, which is the title of goods, is prepared on the basis of the mate's receipt. It enables the exporter to clear port trust dues to the Port Trust Authorities. Obtaining Mate's Receipt The goods are then loaded on board the ship for which the Mate or the Captain of the ship issues Mate's Receipt to the Port Superintendent.

Shipping Bill Shipping bill is the main customs document, required by the customs authorities for granting permission for the shipment of goods. The cargo is moved inside the dock area only after the shipping bill is duly stamped, i.e. certified by the customs. Shipping bill is normally prepared in five copies : Customs copy.
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Drawback copy. Export promotion copy. Port trust copy. Exporter's copy.

Significance of Shipping Bill a) Shipping bill is the main customs document, required by the customs authorities for granting permission for the shipment of goods. b) The cargo is moved inside the dock area only after the shipping bill is duly stamped, i.e. certified by the customs. c) Duly endorsed shipping bill is also necessary for the collection of export incentives offered by the government. d) It is useful to the Customs Appraiser while determining the actual value of goods exported.

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MY EXPERIENCE
The visit to Rajda Knitting Industries Pvt. Ltd. gave me an idea of the entire export procedure right from making a sample collection till the realization of export proceeds. The export procedure involves a lot of steps. The entire procedure is divided into 3 main stages namely pre-shipment, shipment and postshipment. Each of these stages involves a number of steps. Documentation is a vital aspect of the export procedure. Documentation is the engine of exports in global trade. Documentation facilitates the movement of freight, transfer of title, processing of payment and customs clearance. I gained knowledge about different export price quotation terms like FOB, CF and CIF used in the export contracts. The export manager also provided information about the registration formalities required before starting an export business. The rules and regulation pertaining to the export varies from one country to another country. Shipping industry and air industry, the components of service sector plays a very important role in export of a particular product and is the mode of transportation between the countries involved in the transaction. The export manager is supposed to know the technical know-how about the export and documentation procedure so as to pass the same to the employees. The banks of the respective parties also play an important role in the export procedure with respect to the currency matter and transfer of payments.
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 The word authenticity holds significant value in the export procedure and the documentation along with the time frame. The visit added knowledge to my bookish knowledge of export procedure and documentation and gave me a practical approach for the same. Along with the export procedure and documentation, I got know about the products supplied by the industry visited and the application of the same. It was indeed a great and knowledgeable experience.

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ACKNOWLEDGEMENT
I wish to express my sincere gratitude to Prof Rita Khatri, for providing me an opportunity to do a project on export import procedures and documentation. This project really helped me in gaining knowledge and understanding the concept of export and import. Also I would like to thank the export manager of Magic Impex Ltd Mr. Sandip Jhadav for explaining me the entire process relating to export import procedures and documentation.

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BIBLIOGRAPHY
www.magicimpex.com www.google.com Export Import Procedures & Documentation by Khushpat S. Jain.

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