2. What is export?
Sale of goods from one country to another against
payment in foreign currency in a legal way
3. It should mention
Parties: Addresses and Identities
Nature of contract: Sales of goods/services, agency/distributorship
Date of agreement
The contract should state
Products name (including its technical name )
Sizes in which it is supplied
Standards/specifications according to the buyer or as per the samples approved by
him. Details of specification of sample must be given in the contract
Quantity, total value
Inspection, Test certification
Packing, packaging, labelling
Marking
Terms of delivery
Duty and charges, taxes
Period of delivery
terms of payment
discounts and commisions
licences and permits
insurance
4. Why do we need documentation?
• Buyer and sellers are separated by long distances
• Formal contract ( assigning duties/responsibilities)
is necessary
• Protection of interests of both the parties
• The operational constraint
• Claim of export assistance and incentives
provided by the government
5. Trade documents may be broadly
categorised into 3 heads
Commercial documents
Legal or Regulatory documents
Incentive and Assistance Claim documents
6. Possession of docs imply ownership of goods
Docs represent goods shipped by exporter
These docs entitle the importer
Indicates goods at destination, and
Used to compensation by insurance, in the
event of damage or loss
7. Commercial Invoice
Certificate of Origin
Inspection Certificate
Packing list
Transportation
Insurance
Certificate/Policy Documentation
Bill of Exchange - Bill of lading -forwarder
Shipment Advice - Airway Bill
- Combined transport
document
8. DOCS AS PER REQUIREMENT OF
DOCUMENTATION AS PER
IMPORTING COUNTRY
REQUIREMENT OF GOI
Export License if necessary Customs Invoice
AR4/AR5 Form GSP Certificate of origin
Pre-shipment Inspection
Certificate
Export Declaration form
GR/PP/VPP/COD/Softex
Form
Shipping Bill - customs
9. Application form
Shipping Bill duly authenticated by customs
Commercial Invoice attested by bank
Statement of exports certified by the
negotiating bank
Registration cum membership form of
concerned export promotion council
10. First and the only complete document for a
shipment from among the set of commercial
documents.
Serves as a basis for preparation of all other
documents
CI is needed at both pre-shipment and post-
shipment stages for
▪ Obtaining Export Inspection Certificate,
▪ Clearance from excise and customs
▪ Negotiating documents with the bank.
11.
12. CI performs three main functions
It is a Document of Content,
It is a Bill by exporter,
It is a Packing List
It also sets forth the terms of shipment and
payment and can operate as Certificate of Origin
13. Equivalent to multimodal transport
document/airway bill/railway/lorry/post
parcel/courier receipt
These documents state and evidence the
mode, manner and date of shipment.
These docs define the contractual rights and
obligations of the parties
lawful holders can claim goods at the
destination and at will
given by forwarder to exporter
14. It performs 3 functions:
▪ An evidence of contract of affreightment between the
ship owner and the charterer
▪ A receipt of goods
▪ Document of title:(Order B/L: negotiable doc. and
Consignee named/ Straight B/L: non-transferable)
15. It’s
legally defined as “an unconditional order
in writing, addressed by one person to
another, signed by the person giving it,
requiring the person to which it is addressed
to pay on demand or at a fixed or
determinable future time a certain sum of
money, to or to the order of, a specified
person or to bearer.”
16. EXPORTER
(Drawer) (Payee)
1 OF
BILL ANGE
H
EXC 5
EXPORTER’S BANK IMPORTER
CUSTOMS
(collecting bank) (Drawee)
6
T
F EN KING
BILL O NGE YM A
PA DERT
2 A 3
E X CH UN
IMPORTER’S BANK
(remitting bank)
4
DOCS
(MASTER/HOUSE AWB)
17. It performs the role of bridging time gap between
shipment of goods and receipt of sale amount.
This is required to be honored either by actual
payment or by an undertaking to make payment at a
future date by the party on whom it is drawn.
After payment/undertaking the importer’s bank will
hand over the documents to the importer for taking
possession of goods.
Can be either a Sight Draft (for DP – Docs Against
Payment) OR Usance/Term Draft (for DA – Docs
Against Acceptance)
18. Sight Bill of Exchange
BILL OF EXCHANGE
Bill of exchange for Date
Place
On demand, Pay this First of Exchange (Second of the same date and tenor being unpaid)
to the order of (exporter’s bank) a sum of ……….... only for value received vide Airway Bill No./Bill
of Lading
No. ………… dated …………. and place the same to account.
To : Drawee For : Drawer (exporter)
Usance Bill of Exchange
BILL OF EXCHANGE
Bill of exchange for Date
Place
…………. Days after date, Pay this First of Exchange (Second of the same date and tenor
being unpaid) to the order of (exporter’s bank) a sum of …….. only for value received vide Airway
Bill No./
Bill of Lading No. …… dated ……. and place the same to account.
To : Drawee For : Drawer (exporter)