2. Export Document Framework:
•Procurement of an export order and acquisition or production of
goods for export are as important as ensuring their physical
delivery and remittance of sale proceeds
•To think of export documentation as a hindrance to the smooth
flow of trade between nations is to take a faulty, narrow and
opaque view of the way trade takes place.
•The operational aspect of international marketing is conditioned
by the fact that the operating entities, exporter and importer, are
located in two different countries, which have enacted different
laws and regulations governing the flow of goods and money.
Therefore goods must accompany, follow or preceded by relevant
documents to establish proper compliance with those laws and
regulations
•Yet another reason for documentation is claim of export
assistance and incentives provided by the governments worldover
3. • Complexity in documentation arises due to complexity in
policies and schemes.
Documentation dimension – Export documents can be classified
on the basis of their role in the smooth flow of trade
1. Commercial Dimension
2. Legal Dimension
3. Incentive Dimension
1. Commercial Dimension – in the process of physical movement
of goods and remittance of the sale amount the exporter and
importer are not personally and physically involved. In other
words the symbol of ownership in goods is the mere
possession of a set of documents which represents goods
shipped by the exporter. The set of commercial documents,
known variously as shipping documents or principal export
documents, is essential for smooth flow of international trade.
4. For a consignment being sent on CIF basis, the full set of
commercial documents consists of the following
1. Commercial invoice
2. Bill of lading or Airway bill
3. Cargo insurance policy or certificate
4. Bill of exchange
In addition to above documents specific transactions may need
additional documents
1. Commercial Invoice – This is the first basic document. It
performs three functions
A. It is a documents of contents
B. It is a bill by exporter
C. A packing list
5. Description of goods in the invoice should tally with that in the
contract sheet and L/C. quantity should also tally with that in the
contract sheet and L/C. exporter should be very clear whether part
shipment is allowed or not. Commercial invoice to be made in the
name of the party so specified in L/C, if shipment is under L/C.
invoice is to be made in the name of the applicant of the credit
unless otherwise specified.
2. Bill of lading or Airway bill –
These are transport documents. Whereas commercial invoice
describes the goods being shipped, these documents evidence
the mode manner and date of shipment
3. Insurance policy / certificate
The need for cargo insurance arises on account of the limited
liability of the carrier and other intermediaries (warehouse
operator, clearing and forwarding agent, port authorities). Laws
related to these agencies protect them if the loss or damage to
6. the goods is due to factors beyond their control.
4. Bill of exchange – it performs the role of bridging the gap
between shipment of goods and the receipt of sale amount.
Defined as an unconditional order in writing by exporter to
importer signed by the person giving it requiring the importer to
pay on demand or at fixed or determinable future, a sum in
money (contract value) to the named party.
Legal Dimension – all over the world, laws regulating export
import trade have been enacted to account for movement of
goods and foreign exchange and to protect economic, political,
cultural and other interests and to implement bilateral and
multilateral trade agreements.
RBI code number – identification reference of a company through
which control over the realization of sale amount is exercised and
monitored.
7. Registered Cum Membership Certificate – (RCMC)
Certificate from relevant export promotion council or commodity
board
Importer Exporter Code (IEC) – from DGFT
The allotted number is to be quoted in customs documents, while
clearance
Others include export license or permit
GR form etc
Shipping bill – main document for obtaining customs permission
for shipping goods
Regulatory controls in other countries – these are two types. 1. to
protect the interests of the customers or users of imported
materials. 2. Government rules and trade agreements
Eg.1. Independent Inspection certificate 2. certificate of origin
8. Incentive Dimension: an exporter wishing to avail himself of
government incentives, will have to forward his claims by
presenting relevant documents supporting his claim to different
authorities.
These include – ARA, AR4 form, commercial invoice for claiming
rebate in excise duty, drawback copy of shipping bill etc for
claiming duty drawback.
