3Exp-Imp Documentatn.ppt

8/22/2019 3Exp-Imp Documentatn.ppt

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EXPORT DOCUMENTATIONFRAMEWORK

SESSION III

Commercial and regulatory documents like B/L, B/E, and Invoices


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EXIM Policy

EXIM Policy a.k.a Trade Policy w.r.t. EXIM

Free Trade: NO RESTRICTION!


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Export- Import Documentation

Documentation and procedures are

integral part of EXIM operations

Successful execution of export orders

requires

compliance with procedural formalities

and documentary provisions

innovative skills & meticulous planning


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Export- Import Documentation

In India, several documents have been

prescribed to ensure compliance of

I.Export Trade Control

II.Foreign Exchange Regulations

III.Quality Control & Pre-shipment Inspection

IV.Central Excise, etc.


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Documentation is complex

and difficult BUT its

CRITICAL!


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Why do we need documentation?

tradition

buyer and sellers are separated by long

distances

Formal contract (duties/responsibilities) is

necessary

*protection of interests


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both the entities are located in

different countries

with

different laws and regulations

The operational constraint .


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Also, documentation is linked with the

claim of export assistance and

incentivesprovided by the government.


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Proper documentation enables

the importersto get the contracted

goodsandthe exportersto get the payment&

export incentives


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1. CARRIERtransport & deliver

2. INSURANCE COMPANYcover risk

3. BANKERcollect sale proceed

No International trade transactions can be

completed w/o these 3 intermediaries


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DOCUMENTATION CATEGORIES

Trade documents may be broadly

categorised into 3 heads

1. Commercial documents

2. Legal or Regulatory documents

3. Incentive and Assistance Claim documents


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COMMERCIAL DOCUMENTS

Trade between entities located in two

countries BEGINSwith the

CONCLUSIONof an international sales

contract


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Under the contract,

Exporters obligationWYSIWYG on time

Importers obligation remit as per the

contractual provisions

WYSIWYG (What-You-See-Is-What-You-Get)


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Possession of docs imply ownership of goods

Docs represent goods shipped by exporter

These docs entitle the importer

To goods at destination, AND

To compensation by insurance, in the event of

damage or loss


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Sub-categories of Documents

Docs as per requirement of the contracts

Commercial Invoice

Packing list

Insurance Certificate/Policy

Bill of Exchange

Shipment Advice



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Sub-categories of Documents

Certificate of Origin

Inspection certificate

Transportation documentation

-bill of ladingforwereder

-airway bill

-combined trasport document



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Documentation as per requirement of GOI

1) Export License if necessary

2) Ar4/Ar5 Form

3) Pre-shipment Inspection Certificate

4) Export Declaration form

5) GR/PP/VPP/COD/Softex Form

6) Shipping Billcustoms

*GR Form Guaranteed Receipt Form,SoftexSoftware export declarationform COD--Cash on Deliver PP-- oods to be sent b Post Parcel

LEGAL (REGULATORY) DOCUMENTS


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Declaration Forms The prescribed export declaration forms concerning bankers are:

i. GR Form : Export to all countries made otherwise than by post.

ii. PP Form : Export to all countries by post parcel, other than on VPCOD basis.

iii. Softex Form : Export of computer software in non-physical form.

GR /PP forms are made in two copies, VP / COD forms are to be

submitted in a single copy, Softex form is prepared in three copies.

Where the specified categories of shipping bills are processed electronically,

the declaration in Form SDF (Statutory Declaration Form) in respect of such

shipping bills shall be submitted. GR forms(with manual shipping bill) / SDF

(with computerised shipping bill) will be submitted to customs, PP forms willbe tendered to post office. Softex forms will be submitted to Department of

Electronics (DOE) located in software technological park (STP) or electronic

hardware technological park (EHTP)


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Docs as per requirement of importing country

1) Customs Invoice

2) GSP Certificate Of Origin

*Generalized System of Preferences (GSP)

LEGAL (REGULATORY) DOCUMENTS


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COMMERCIAL INVOICE

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


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COMMERCIAL INVOICE

CI is needed at both pre-shipmentand post-

shipment stagesfor

Obtaining Export Inspection Certificate,

Clearance from excise and customs

Negotiating documents with the bank.


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COMMERCIAL INVOICE

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


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CI must fully identify the shipment by

recording leading identification marks and

numbers given on the packages being shipped

Description of goods correspond with the

description given in the L/C or contract

DOCUMENT OF CONTENT


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Quantity should be as per L/C or the contract

Should be EXACTif stated in numbers or units,

could be broken if PART SHIPMENT allowed or

a TOLERANCEif granted.

DOCUMENT OF CONTENT


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SELLERS BILL

It should state the net price (commission ordiscount) + a detailed break up of price

CI is made in the name of the BUYER as

specified in the L/C or Contract

It must be signed by an authorized person.

Invoice should not bill for value

exceeding/less than the tolerance limit


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SHIPMENT DOCUMENTS

It states the terms of shipment

It should include date and port of shipment.

It should include terms of sale, the contracted

terms (FOB, CFR, CIF etc.)

In some cases, break-up of CFR/CIF

components may also be given


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Data Required for making C.I.

Name and address of the shipper

Invoice number and date

Buyers & Sellers order number

Name & address of the overseas customer

(buyer)

Name of the vessel and sailing date

Terms of payment


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Data Required for making C.I.

Insurance reference

Customs and consular declaration

Shipping marks and number on packages

Quantities & description of commodities

Specification of packaging

Bill of Lading number

Import license number & date

Letter of credit number & date

/


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BILL OF LADING/MULTIMODAL TRANSPORT

DOCUMENT/AIRWAY BILL/RAILWAY/LORRY/POST

PARCEL/COURIER RECEIPT

These documents stateand evidencethe

mode, manner and date of shipment.

These docs define the contractual rights

andobligationsof the parties

lawful holders can claim goods at the

destination and at will

/


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BILL OF LADING/MULTIMODAL TRANSPORT

DOCUMENT/AIRWAY BILL/RAILWAY/LORRY/POST

PARCEL/COURIER RECEIPT

Bill of Lading

given by forwarder to exporter

It performs 3 functions:

1.evidence of contract of affreightment (between

the ship owner and the charterer)

2.A receipt of goods

3.Document of title


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INSURANCE POLICY / CERTIFICATE

Why ?

limited liability of the carrier and other

intermediaries (warehouse operators,

CNF agents, port authorities etc)


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INSURANCE POLICY / CERTIFICATE

Cargo insurance covers in transitrisks

The risk is in the form of indemnity

Company pays back an insurable value in the form of

an agreed sum of money

Cargo Insurance always defines the risk to be

covered.

Different policies for different risks.


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Definition

Its 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.

BILL OF EXCHANGE


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EXPORTER

(Drawer) (Payee)

IMPORTER

(Drawee)

IMPORTERS BANK

(remitting bank)

DOCS

(MASTER/HOUSE AWB)

DOCS

GOODSCUSTOMSEXPORTERS BANK

(collecting bank)

1

2 3

4

5

6


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BILL OF EXCHANGE

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

paymentor by an undertakingto make

payment at a future date by the party on

whom it is drawn.


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BILL OF EXCHANGE

After payment/undertaking the importers

bank will hand over the documents to the

importer for taking possession of goods.

Can be either a Sight Draft (for DPDocs

Against Payment)OR Usance/Term Draft (for

DADocs Against Acceptance)


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BILL OF EXCHANGE

Sight Draft is one that is payable on

presentation to the drawee, i.e. when it is

sighted by him.

Usance Draft is payable after the expiry of a

certain period of time after the bill has been

sighted


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BILL OF EXCHANGE

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 (exporters 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 (exporters

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)

LEGAL/REGULATORY DOCUMENTS


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THE BASIC OBJECTIVE:

To account for movement of goods and

foreign exchange

To protect economic, political, cultural and

other interests, and

To implement bilateral and multilateral

trade agreements.



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AIM:

Ensuring legitimate exports

To ensure legal compliance




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Docs Required in Indiafor EXIM

IEC

PAN

Registration Cum Membership Certificate

Export License


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