2. Export procedure involves a number of
steps
• Preliminary StageStage I
• Pre-shipment StageStage II
• Shipment StageStage III
• Post-shipment StageStage IV
4. 1.Organizing
The exporter should have an organization to look
after exports.
Exporters may set up a complete new organization or
add on export section to an existing one.
Decisions regarding
Target market
Product mix
5. 2. Registering with various Authorities
The exporter should register his organizations with
various authorities. These are as follows.
Income Tax
Authorities to obtain
permanent Account
Number (PAN).
DGFT – to obtain
Importer’s exporter’s
code Number
(IEC No.)
EPC – to obtain
Registration – cum –
membership –
certificate (RCMC)
Other authorities,
such as FIEO, sales
Tax authorities,
chambers of
commerce etc.
6. 3. Appointing Agent / Distributors
Appointment of agents or distributors in the
selected overseas markets.
7. 4. Approaching Foreign Buyers
The overseas agents / representatives approach
foreign buyers with a quotation.
The foreign buyer, if satisfied with the quotation and
after clarifications, if any, will place an order with the
exporter
9. 1. Inquiry and Offer
Request from importer about description of goods
their standard or grade , size , weight or quantity ,
terms of payment, etc.
On getting enquiry the exporter processes the inquiry in
form of
Proforma invoice
10. 2. Confirmation of order
Negotiation of terms and conditions between buyer
and the seller.
Exporter sends three copies of proforma invoice to
the importer for confirmation of order.
Importer signs the copies sends back two, retains one.
11. 3. Obtaining Letter of credit
With the acknowledgement letter confirming the
receipt of an export order,
the exporter may send a formal request to the
importer to open a letter of credit in his favour.
12. 4. Obtaining pre-shipment Finance
As soon as the exporter receives a confirmed order
and the L/C,
approach made to the bank for securing pre-shipment
finance to meet working capital requirements.
13. 5. Production and Procurement of
goods
After securing the pre-shipment advance from bank,
the exporter has to arrange for production and
procurement of goods for shipment.
14. 6. Packing and Marketing
After procuring the goods meant for export,
the exporter has to arrange for proper packing and
marking of the goods.
Packaging must ensure proper protection of the goods.
The packing material should be selected after considering
the distance to be covered, mode of transportation, types of
handling of the goods at ports etc.
15.
16. After the goods are ready for shipment, they
should be properly be packed and marked.
Importer’s specific instructions in respect of packing
and marking should be complied with, totally.
▪ In the absence of instructions from importer, exporter has to
follow the packing rules prescribed by The Bureau of Indian
Standards for certain items
17. The British Standard Packing Code,
published by the British Standards Institute and
the Exporters’ Encyclopedia published in the
U.S.A.
▪ gives detailed packing instructions which can be
followed by the exporters to match international
standards in respect of packing.
18. In respect of hazardous goods, shipping
companies too give certain packing instructions,
which are to be followed, scrupulously.
Shipping companies do not accept the goods unless
their rules are followed in respect of such goods.
▪ If necessary, assistance can be taken from Indian Institute of
Packing (IIP) in respect of packing.
19. 7. Pre-shipment Inspection
If the export cargo is subject to qualify compulsory
inspection as a part of quality control.
Exporter contacts Export Inspection Agency by sending
Intimation for Inspection for obtaining Inspection
Certificate.
20. 8. Central Excise Clearance
Goods meant for export are exempted from the
payment of excise duty.
Excise clearance is obtained by two methods
Export Under Rebate
Export Under Bond
21. Export Under Rebate
Under this method, the exporter has to pay excise
duty, initially, and can claim refund of excise duty,
after exportation of goods to countries except
Nepal and Bhutan.
Exporter can request clearance of goods either with
examination or without examination by central excise
authorities.
22. Export Under Bond
Under this method, exporter does not make
payment of excise duty.
He has to obtain bank guarantee or surety to an
amount equivalent to excise duty payable.
Once evidence of export is shown, the excise authorities
would release the bond.
In case of manufacturer-exporter, he can execute
undertaking for the amount of excise duty payable instead
of submitting Bond
23. 9. ECGC (Export Credit Guarantee
Corporation of India Ltd) Cover
The exporter must take appropriate policy to
protect him from credit risk.
ECGC provides a range of credit risk insurance covers
to exporters against loss in export of goods and
services
24. 10. Marine Insurance policy
In order to protect the cargo from perils on high
sea, the exporter has to obtain marine insurance
policy.
Payment of insurance premium depends on the type of
price quotation accepted by the importer.
25. 11. Appointment of clearing and
Forwarding Agent
It is always advisable to appoint C & F agent to
look after forwarding work which includes
booking of shipping space,
preparing and submitting various documents to
customs.
27. 1. Reservation of space in the ship
Exporter contacts the shipping company for booking
the required space in the vessel for shipment of his
consignment
Necessary information like date of shipment, gross and
net weight of each package, particulars of the importer
etc are provided.
When shipping company accepts the exporter’s
request, the company or its agent issues
“shipping order”
28. 2. Internal Transportation up to Port of
Shipment
Exporter makes necessary arrangements for
transportation of goods to the port by
road/railways.
Railways issue Railway receipt on loading goods
into the railways which serves as title to goods.
29. 3. Preparation and processing of
shipping documents
When goods reach the port of shipment, the exporter
has to arrange for preparation of a complete set of
documents to be passed on to the forwarding agent.
Letter of credit along with the export contract
Commercial Invoice (2 copies)
Packing List
Certificate of Origin
GR Form (Original and Duplicate)
ARE-I Form
Certificate of Inspection
Marine Insurance Policy
30. Exchange Control Declaration form-GR
form
Custom certifies the value of goods declared by the
exporter and records the assessed value of goods
Customs give a running serial number on both the
copies after admitting the customs shipping bill
GR form in duplicate to the Customs at the port of
shipment along with the copy of shipping bill
31. Exchange Control Declaration form-GR
form
Authorized dealer negotiates the bills and submits the duplicate
copy of GR to RBI on realizing export proceeds.
Exporter submits duplicate copy of GR to the authorized dealer for
negotiation of export bills (within 21 days from shipment of goods)
Duplicate copy of GR is returned to exporter and original is
retained for transmission to the RBI
32. 4. Customs Clearance
The following documents need to be submitted to
customs appraiser at customs house.
Letter of credit along with the export contract
Commercial Invoice (2 copies)
Packing List
Certificate of Origin
GR Form (Original and Duplicate)
ARE-I Form
Certificate of Inspection
Marine Insurance Policy
Five copies of Shipping Bill
33. 4. Customs Clearance
Custom Appraiser Verifies all documents
Returns
- Original GR
- Original Shipping Bill
- One copy of Commercial Invoice
“Examination Order” on the duplicate copy of shipping bill given by
custom appraiser.
C & F Agent
34. 5. Obtaining Carting Order from Port
Trust Authorities
Carting Order is the permission to bring the goods
inside the docks.
The carting order is issued by the superintendent of Port
Trust.
Carting Order is issued only after verifying the
endorsement on the duplicate copy of shipping bill.
The Carting Order enables the exporter’s agent to cart
goods inside the docks and store them in proper sheds.
35. 6. Physical Examination of goods at the
port
The C & F agent obtains the carting order from the
Port Trust to Cart the goods inside the docks.
The exporter/agent presents the following documents
to Dock Appraiser along with check List.
Packing List
Invoice
ARE-Forms
36. 6. Physical Examination of goods at the
port
The Appraiser Dock (export) orders for samples to be drawn
and tested, the Customs Officer/Examiner may proceed to
draw two samples from the consignment and enter particulars
thereof. There is no separate register for recording dates of
samples drawn.
Three copies of test memo are prepared and signed by the
Customs Officer and Appraising Officer on behalf of Customs
and the exporter or his agent. The disposal of three test memo
copies is as follows:
Original—to be sent along with the sample to the test agency.
Duplicate—Customs copy to be retained with the second sample.
Triplicate—Exporter’s copy
After physically examines the goods and seals the packages in
his presence and issues the “Let Export order”
37. 7. Loading of goods
The duplicate copy of shipping bill which is
endorsed by the custom Examiner
is handed over to the custom preventive officer, who
endorses it with ‘Let ship order’.
The goods are then loaded on board the ship, for
which
Mate’s Receipt is issued by the mate of the ship.
The Mate’s Receipt is handed over to the shipping
company to obtain Bill of Lading.
38. 8. Obtaining Bill of Lading
Goods loaded on ship
Mate’s Receipt issued to port superintendent
Mate’s receipt handed over to C & F agent on receipt of port
dues
Mate’s Receipt surrendered to shipping company for obtaining
Bill of Lading
Shipping Company issues 2-3 negotiable and 2-3 non negotiable
copies of bill of lading
40. 1a. Submission of Documents by C & F
agent
C & F agent submits the following documents to the
exporter:
Copy of Invoice duly attested by the customs
Drawback copy of the shipping bill
Export promotion copy of the shipping bill
Full set of negotiable and non negotiable copies of bill
of lading
Original L/C, export order or contract
Duplicate copy of ARE-I form.
41. 1b. Dispatch of Documents
Dispatch of documents by C & F Agent to the
exporter
the details and the mode of dispatch of the shipping
documents are specified in the L/C.
Mailing of dispatching a set of documents to ensure
that the importer or his agent receives the same in time
so that the delivery of the exported goods can be
done.
42. 2. Shipment advice to importer
After the shipment of goods, the exporter has to
send suitable intimation to the importer for his
information.
By this intimation, the date of shipment, the name of the
vessel, date on which the goods will reach the
destination should be informed to the importer.
A copy of non-negotiable bill of lading is also sent for
information.
The importer gets the remaining documents through his
bank
43. 3. Presentation of Documents to the
Bank
A complete set of documents is submitted by the
exporter to his bank for the purpose of negotiating
the same and obtaining export proceeds in time.
44. 3. Presentation of Documents to the
Bank
The bank then sends the same documents to the exporter.
1. Sight or Usance Bill of Exchange
2. Full set clean-on-board Bill of lading(all negotiable copies)/Airway
Bill/Combined transport document
3. Original letter of credit along with amendments made up to date
4. Customs Invoice
5. Commercial Invoice duly attested by customs
6. Packing List
7. GR-1/SDF Form, in duplicate
8. Exchange control copy of the shipping bill
9. Inspection Certificate
10. Marine insurance policy/certificate, in duplicate
11. Certificate of Origin
45. 4. Dispatch of Documents
The bank negotiates the documents with the
importers bank as detailed in L/C.
Exporter’s bank scrutinizes the documents
Bank sends the bank certificate and attested copies of
commercial invoice to the exporter.
46. 5. Realization of export proceeds
The exporter then proceeds to claim export
incentives on the basis of bank certificate.
The bank certificate gives description of the product, its
value, the rate of conversion, the details of invoice etc.
47. Letter of Indemnity
Exporter can get immediate payment from the bank
on submission of documents by signing a letter of
indemnity .
By signing the letter exporter undertakes to
indemnify the bank in the event of non-receipt of
payment from the importer long with accrued
interest.
48. 6. Processing of GR form
On receiving export proceeds the exporter’s bank
intimates the same to RBI by recording the fact on
the duplicate copy of GR.
RBI verifies the details in duplicate copy of GR with the
original GR received from customs
If details are in order the export transaction is treated as
complete.
49. 7. Follow-up of Export sales
An exporter should always have a follow-up after
sales
provide necessary after sale service,
find out buyer’s opinion towards the product
It further helps in generating more sales in the international
market.
