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Complete Export Process

The document outlines the 14 key steps in processing an export order: 1) Reservation of shipping space, 2) Issuing a delivery/purchase order, 3) Central excise clearance, 4) Appointing a clearing and forwarding agent, 5) Transporting goods to port, 6) Port formalities and customs clearance, 7) Obtaining a certificate of origin, 8) Sending a shipment advice, 9) Presenting documents to bank, and 10) Obtaining a forward exchange contract to mitigate exchange rate risk. The clearing and forwarding agent handles packing, labeling, transport, customs clearance, and obtaining necessary documents. Presenting proper documents to the bank allows for negotiation or collection on the letter of credit.

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894 views

Complete Export Process

The document outlines the 14 key steps in processing an export order: 1) Reservation of shipping space, 2) Issuing a delivery/purchase order, 3) Central excise clearance, 4) Appointing a clearing and forwarding agent, 5) Transporting goods to port, 6) Port formalities and customs clearance, 7) Obtaining a certificate of origin, 8) Sending a shipment advice, 9) Presenting documents to bank, and 10) Obtaining a forward exchange contract to mitigate exchange rate risk. The clearing and forwarding agent handles packing, labeling, transport, customs clearance, and obtaining necessary documents. Presenting proper documents to the bank allows for negotiation or collection on the letter of credit.

Uploaded by

asifanis
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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COMPLETE EXPORT

PROCESS
 1.Nature
 2.Acknowledgement

 3.Scrutiny

 4.Confirmation

 5.Clarification

All above points from ppt


presentation on processing an export
order
 6. Reservation of Shipping Space
• Reservation
If the exporter has accepted/confirmed the export order,
his immediate task is to get the shipping space reserved
in accordance with the delivery schedule set out therein.

Reservation of shipping space generally commences 6 to


8 weeks before the ship’s arrival at the port .

Information on shipping services/sailings can be


obtained from Clearing and Forwarding Agents.

In case the goods are exported by Air, there need not


be a reservation of space as it is generally at short
notice. However, the exporter must confirm this fact
from his Clearing and Forwarding Agent.
 7. Delivery Note / Purchase Order
Simultaneously with the confirmation
of the export order, a delivery note
may be issued to the production
department or the factory in case the
manufacturer has his own
manufacturing facility.
When the goods are to be procured
from other manufacturers/suppliers,
a purchase order should be issued.
 Contents of Delivery Note / Purchase Order
• Details of product in terms of :

• Sizes, specifications, standards etc.


• Quantity required

• Delivery schedule

• The delivery schedule to be indicated to the production


department/factory or the supplier must be much
before the date on which goods are to be shipped,
depending upon the time which is spent on
transporting the goods from factory to the port of
shipment.
• Any other requirement with regard to the components
including raw materials to be used in the product.
• Packaging/packing stipulations.
• Labeling requirements.
 8. Central Excise Clearance

The Central Excise and Salt Act of India and the


related rules provide the refund of excise duty
paid. This also provides exemption from the
payment of excise duty both on the final export
production and inputs used in the manufacture of
export products, popularly known as rebate in
excise duty. The documents used are Invoice and
AR4/ AR5 forms.

 As soon as goods are ready for dispatch to the


port for shipment, the production department of
export firm is to apply to the central excise
authority for excise clearance of the goods.
• 9. Clearing and Forwarding Agent
The exporter must appoint an agent to
help him in the shipment/air freighting of
goods.

The Clearing and Forwarding Agent should


be a firm of repute experienced in
handling export/import cargo.

If the goods are to be exported by sea,


the Clearing and Forwarding Agent should
have branches in the major ports like
Mumbai, Kolkota, Chennai, and Cochin.
 Clearing and forwarding agents, also known as freight
forwarders, perform a number of functions on behalf of the
exporter. They provide specialized help in the exporter’s ware-
house to the importer’s warehouse by undertaking the procedural
and documentary formalities. lie helps in packing, marking and
labeling of consignment, arrangement for transport to the port.
arrangement for shipment overseas, and customs clearance of
cargo, procurement of transport and other documents.

 However, the main function of the agent is to obtain customs


clearance of goods, ship them and procure the relevant transport
document (Bill of Lading or Airway Bill). For performing the
desired functions, the exporter is required to give detailed
instructions to his agent, who in turn will charge fee for these
activities

 On completion of the process of clearance by the excise


authorities as well as obtaining the Inspection Certificate, the
production department dispatches the consignment to the port of
shipment by either road or rail.
 10. Transportation of Goods To Port of Shipment

 Transportation and movement of goods to the


port for shipment involve following activities:
 Packing, marking and labeling of consignment
 Arrangement for movement of goods either by
road or by rail.
 An export-worthy packing helps in minimizing
freight and delivery costs.
 11. Port Formalities and Customs Clearance

 On receipt of the documents sent by the export


department, the clearing and forwarding agent
takes delivery of the cargo from the railway
station or the road transport company and
arranges its storage in the warehouse. He also
initiates action to obtain customs clearance and
permission from the port authorities to bring
cargo into the shipment shed.

 The objectives of customs control are:

 a. To ensure that the goods go out of the country after


compliance with different laws concerning export trade
 b. To ensure authenticity of value of export goods to check
over/under invoicing
 c. To correctly assess and collect export duty, if applicable
 12. Certificate of Origin and Shipment Advice

 On receipt of the above documents, the exporter


makes an application to the chamber of commerce
and obtains a ‘Certificate of Origin ‘ in duplicate.
Incase of export shipment to countries offering GSP
concession, the GSP Certificate of Origin will have
to be procured by the exporter from the concerned
authority like Export Inspection Agency.

 The exporter then sends. ‘Shipment Advice’ to the


importer intimating the date of shipment of the
consignment by a named vessel and its expected
time of arrival (ETA) at the destination port.
 13. Presentation Of Documents To Bank

The exporter presents the following documents to the


bank for negotiation/ collection:

 a. Commercial invoice (Requisite number of copies)


Certificate of Origin (two copies

 b. Customs Invoice (Requisite number of copies) GR


Form (Duplicate)

 c. Packing List (requisite number of copies)

 d. Full set of Clean-on-Board Bill of Lading (Negotiable


plus Non- negotiable copies as required)
 e. Additional copies of the Commercial Invoice for
Certification by the Bank

 f. Original Letter of Credit/Export Contract

 g. Bank Certificate in the prescribed form in duplicate

 h. Marine Insurance Policy/Certificate

 i. Bill of Exchange
 14. Forward Exchange Contract
The exporter should also obtain Forward
Exchange Contract from the banks to cover the
risks involved as a result of fluctuation in
exchange rate. For obtaining this contract, the
exporter should approach his bank along with a
application on plain paper for obtaining the
Forward Exchange Contract and L/C and/or the
confirmed export order (in original).

The application for the Forward Exchange


Contract should clearly indicate definite period
(not the exact date but period say between such
date to such date) in which the export documents
would be submitted to the bank.

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