3Exp-Imp Documentatn.ppt
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Transcript of 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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COMMERCIAL DOCUMENTS
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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COMMERCIAL DOCUMENTS
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
COMMERCIAL DOCUMENTS
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Sub-categories of Documents
Certificate of Origin
Inspection certificate
Transportation documentation
-bill of ladingforwereder
-airway bill
-combined trasport document
COMMERCIAL DOCUMENTS
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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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LEGAL/REGULATORY DOCUMENTS
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.
LEGAL/REGULATORY DOCUMENTS
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AIM:
Ensuring legitimate exports
To ensure legal compliance
LEGAL/REGULATORY DOCUMENTS
LEGAL/REGULATORY DOCUMENTS
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Docs Required in Indiafor EXIM
IEC
PAN
Registration Cum Membership Certificate
Export License
LEGAL/REGULATORY DOCUMENTS