Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Procedures
Introduction
• If you walk into a supermarket and can buy South
American bananas, Brazilian coffee and a bottle of
South African wine, you are experiencing the effects of
international trade.
• International trade allows us to expand our markets for
both goods and services that otherwise may not have
been available to us. It is the reason why you can pick
between a Japanese, German or American car. As a
result of international trade, the market contains greater
competition and therefore more competitive prices,
which brings a cheaper product home to the consumer.
• Maritime transport is essential to the world’s economy as
over 90% of the world’s trade is carried by sea and it is,
by far, the most cost-effective way to move en masse
goods and raw materials around the world.
Basic ImpEx Procedures
2. Trade Regulations
• Export regulations and requirements
• Overseas import regulations and requirements
• Patent, trademark and copyright
3. Making Contacts
• Enquiries from interested overseas buyers
• Checking buyer's background banks etc
4. Quotation and Terms
• Making offers and quotation for potential buyers
• Costs, quotations and pro forma invoices, and terms of
sale
5. Sales Contract
• Confirming the sales contract and terms of transaction
such as payment terms
6. Contract Execution
• Producing or sourcing goods
• Packing and labelling
• Arranging shipment
• Preparing exports documentation
• Arranging insurance, if necessary
7. Customs Clearance
• Arranging export declaration and applying for export
licence when necessary
8. Getting Paid
• Subject to the payment terms specified in the sales
contract, the exporter should present the required
documents to the relevant parties for payment
Documentary Credit Procedure
The International trade procedure in which the credit
worthiness of an importer is substituted by the guaranty
of a bank for a specific transaction.
Under documentary credit arrangement (also called
letter of credit arrangement) a bank (usually in the
importer's country) undertakes to pay for a shipment,
provided the exporter submits the required documents
(such as a clean bill of lading, certificate of insurance,
certificate of origin) within a specified period.
In many countries this arrangement is called
'commercial letter of credit.
Advantages:
1. For Importer/Buyer/Applicant
Reasonable cost of funding
Financing of up to 100% of contract value
Easier to do business with unknown sellers
No payment is made until documentary evidence is
received showing shipment details
Documents are examined in compliance with ICC
rules and the terms of the L/C
Preservation of acting discounts of suppliers
2. For Exporter/Seller/Beneficiary
Certainty of payment
Financial standing of the buyer is replaced by the
issuing bank
In case of confirmed LC, additional assurance from
the Confirming bank
The process of a documentary credit
1. Commercial invoice
2. Packing list
3. Certification of inspection/quality control
4. Bill of lading/Combined Transportation
Documentation
5. Shipping Advice
6. Certificate of origin
7. Insurance Certificate/Policy (In case of CIF export
sales contract)
8. Bill of Exchange
Auxiliary Export Documents: The remaining eight
documents, other than principal export documents, are
known as auxiliary export documents. These are:
1. Proforma invoice
2. Intimation for Inspection
3. Shipping Instructions
4. Insurance Declaration
5. Shipping Orders
6. Mate’s Receipt
7. Application for Certificate of Origin and
8. Letter to the Bank for Collection/Negotiation of
Documents
Regulatory Documents
These are those which have been prescribed by different
government departments and bodies in the context of
export trade.
These documents are meant to comply with the various
rules and regulations under relevant laws governing export
trade such as export inspection, foreign exchange
regulations, export trade control and customs etc.
There are 9 regulatory documents associated with the pre-
shipment stage of an export transaction.
Out of them, only 4 have been standardized. The
regulatory documents are as follows:
1. Gate Pass-I/Gate Pass II - Central Excise forms
2. ARE-1 - Central Excise forms
3. Shipping Bill/Bill of Export – Central Excise forms
• For export of goods
• For export of duty free goods
• For export of dutiable goods
• For export of goods under claim for duty
drawback
4. Export Application/Dock Challan - Port Trust forms
5. Receipt for Payment of Port Charges
6. Vehicle Ticket
7. Exchange Control Declaration Forms – RBI forms
8. Freight Payment Certificate
9. Insurance Premium Payment Certificate
DOCUMENTS RELATED TO GOODS
1. Proforma Invoice
Proforma invoice is the starting point of an export
contract. As and when the exporter receives the trade
inquiry from the importer, exporter submits the Proforma
invoice to the importer.
The Proforma invoice contains details such as:
• name and address of the exporter,
• name and address of the intending importer,
• nature of goods,
• mode of transportation,
• unit price in terms of internationally accepted
quotation,
• name of the country of origin of goods,
• name of the country of final destination,
• period required for executing contract after receipt
of confirmed order and finally,
• signature of the exporter.
4. Certificate of Origin
• As the very name indicates, certificate of origin is a
certificate that specifies the name of the country
where goods are produced.
• This is absolutely necessary where the importing country
has banned the entry of goods of certain countries to
ensure that the goods from those countries are not
allowed to enter in.
• At the time of arrival of the goods in the importer’s
country, this certificate is necessary for the customs to
permit preferential tariff.
• Certain countries offer preferential tariff to goods
produced and imported from India. In such a case, this
is a must for the importer to claim preferential tariff and
the importer insists on this document from the exporter.
• This enables the importer’s country to regulate the
concessional tariff only to select countries and deny to
the rest of the countries.
• A certificate of origin can be obtained from Chamber
of Commerce, Export Promotion Council and various
trade associations which have been authorized by
Government of India to issue.
• The agency from which certificate of origin is obtained
should conform to the terms of letter of credit.
Significance of Certificate of Origin
1. Certificate of origin is required for availing concession
under Commonwealth Preferences (CWP) as well as
Generalized System of Preferences (GSP).
2. It facilitates the importer to adhere to the rules and
regulations of his country.
3. Customs in the importer’s country allow the
concessional tariff only on production of this
certificate.
4. When goods from some countries are banned,
importing country requires this certificate to ensure
that goods from banned countries are not entering
into the country.
5. Exporting country may insist on this certificate to
ensure that the goods imported are not reshipped
again.
5. Mate’s Receipt
A mate’s receipt is issued by the mate after the cargo is
loaded into the ship. It is an acknowledgment that the
goods have been received on board the ship. The Mate’s
receipt contains the details about
1. Name of the vessel,
2. Date of shipment,
3. Berth,
4. Marks,
5. Numbers,
6. Description and condition of goods at the time they
are shipped, port of loading,
7. Name and address of the shipper,
8. Name and address of the importer(consignee) and
9. Other required details.
Types of Mate’s Receipts
Mate’s receipt can be clean or qualified.
(A) Clean Mate’s Receipt: Mate of the ship issues a clean
mate’s receipt if the condition, quality of the goods and
their packing are proper and free from defects.
(B) Qualified Mate’s Receipt: If the mate’s receipt
contains any adverse remarks as to the quality or
condition of the goods/packing, it is known as ‘Qualified
Mate’s Receipt’. On the basis of the mate’s receipt, the
Bill of Lading is prepared by the shipping agent.
If there are adverse remarks in the mate’s receipt, the
same will be incorporated in the Bill of Lading, which may
turn to become a claused Bill of Lading, and this may not
be acceptable for negotiation.
Mate’s receipt is first handed to the Port Trust Authorities
who hands over to the exporter soon after he clears their
dues. This procedure is adopted to facilitate for collection
of port dues from the exporter.
Next Module
Module Ends
Sea waybill
A transport document for maritime shipment which serves
as evidence of the contract of carriage and as a receipt
for the goods, but is not a document of title. The sea
waybill indicates the on board loading of the goods and
can be used in cases where no ocean bill of lading and
no other document of title is required. For receipt of the
goods, presentation of the sea waybill by the consignee
named therein is not required, which can speed up
processing at the port of destination.