Presenting a Presentation On Export – Import Documentation

Group Members

NameAnsari Shahid

Ansari Amir Husain

Bhushan Pisal

Chauhan Omkar

Roll No.5203

5202

5225

5206

ALIGNED DOCUMENTATION SYSTEM (ADS)

In India Since 1991 new standardized documents are introduced by the government under Aligned Documentation System (ADS).This new system is based on the UN layout key. Exporters should use such standard forms while preparing various export documents. This gives convenience to all concerned parties. Moreover, such standard forms are now used in more than 100 countries. ADS has simplified export documentation procedures.

Objective of ADS

To provide benefits to every party associated with international trade.

Documents are printed on A-4 size paper. Information is entered in Master

Document 1 & Master Document 2. From these documents, common

information required to be incorporated in all the relative documents, is entered in the slots at the same locations.

With the help of Master Document 1, an exporter can develop 14 out of 16 commercial documents.

The two commercial documents that are not developed because they have not been standardized include Bill Of Exchange & Shipping Order.

ADS Facilitated easy entry of data and enables quick reading.

Adoption of ADS simplifies trade documentation on a global level thereby all parties involved in the trade.

Advantages of ADS

Uniformity of documents Element of convenience Overall benefits Improving efficiency Computer – aid

Classification of Documents

ADS has classified documents into two

categories. They are :1. Commercial Documents2. Regulatory Documents

1. Commercial Documents

Prepared in order to help export-import trade.

Out of 16 commercial documents, 14 documents have been standardized and aligned with one another.

Objectives of commercial documents

2. Regulatory Documents

Regulatory Documents are needed by law as they are prescribed by various government departments and bodies covering foreign exchange regulations, export inspection, custom formalities etc.

Out of regulatory documents 4 have been standardized.

Common regulatory documents are form GR, Shipping Bill, ARE 1 Form, etc.

Export Documents

Export Documentatio

n

Invoice Certificate

Invoice

1. Proforma Invoice.2. Commercial Invoice.3. Consular Invoice.

Proforma Invoice

Meaning : It is a quotation given in the form

of a regular invoice. It is sent as a reply to an inquiry.

Features of Proforma invoice Need For Proforma Invoice

Commercial Invoice

Meaning : commercial invoice is the

statement of account sent by the seller to the buyer and is prepared on seller’s letter-head. It is an exporter’s bill for the goods shipped.

Features of Commercial Invoice Importance/Uses of commercial Invoice

Importance/Uses of commercial Invoice

A. Uses of commercial invoice to the exporter :

It is useful for the collection of payment from the importer.

It is useful for completing export formalities with export inspection agency, negotiating bank, excise and customs authorities

Useful to settle dispute about payment. Useful for the collection of export incentives and

preparing of shipping bill. It is useful for accounting purposes.

B. Importance/Uses of commercial Invoice to the importer

Commercial invoice is useful for the payment of customs duty.

It indicate the exact amt payable to the exporter.

It is useful for the collection of tariff concession, if available.

It is useful for accounting and filing purposes.

It is useful to obtain loan from the bank against the import of goods.

Proforma Invoice v/s Commercial Invoice

Proforma Invoice Commercial Invoice

Meaning : It makes offer of price along with conditions of

sale.

It is an official document stating terms of sale and price to be realized from

the buyer.

Contents : It include name and address of the buyer, description of goods

price, conditions of sale etc.

It is a contract of sale and include particulars of

goods sold.

Copies : It can be prepared in any number of copies.

It is prepared as per the number of copies needed

by the buyer.

Objective : Its objective is to help finalize the transaction.

Its objective is to inform the buyer about the

conditions of sale and final amt payable.

Legal status : It is not a legal document.

It is a legal document.

Consular Invoice

Meaning : Consular invoice is a certificate

issued by the trade consulate of the importer’s country stating that goods of particular value are being imported from a particular country by a particular importer.

Features of consular invoice Benefits/Uses of consular invoice

Benefits/Uses of consular invoice

A. Benefits/Convenience to the exporter :

It facilitates easy clearance of goods from the customs.

When the invoice is signed by the consulate of the importing country, it is an assurance to the exporter that his goods will enter into the buyer’s country without any difficulty.

The interest of the exporter is well protected. He can realise foreign exchange against shipment without problem.

B. Benefits/Convenience to the Importer :

The importer gets quick delivery of goods and that too withhout opening the containers for verification purpose.

Goods are delivered quickly after the calculation of duty as per the consular invoice received.

The importer is rest assured that banned goods are not sent.

C. Benefits/Convenience to the customs office :

The work of customs authorities become easy and quick. goods are cleared quickly.

Duty calculation is possible on the basis of consular invoice received. This means the physical verification is not required.

No need to open the cargo to calculate of value of goods.

Loss of time and re-packing of the goods are avoided.

Certificate of origin v/s consular invoice

Certificate of Origin

Consular Invoice

Meaning : The certificate of origin state the goods which are

being exported have originated in a specific

country

It is issued by the trade consulate of the importer’s country stating that certain goods are being imported from a particular country.

purpose : It is necessary for taking advantage of a

preferential tariff or to ensure that the goods

produced in a particular country are not banned

from import.

This document is required only for prompt clearance and avoiding the trouble of opening packages and re-

packing them for determining value

Legalizations :

No legalization is required in case of certificate of origin.

This document has to be legalized by presenting it to the consul of the importing

country.

Issuing authority :

It is issued by the chambers of commerce, EPC or authorized trade

associations.

It is issued only by the trade consulate of the importer’s

country stationed in the exporter’s country.

Benefit : The importer can get GSP or CWP preference from

his country.

The importer can get the consignment cleared quickly

from the customs.

Commercial Invoice v/s Consular InvoiceCommercial Invoice

Consular Invoice

Meaning : It is the statement of account of sale rendered by the seller to the buyer and it is prepared by seller on his letter head. It exporter’s bill for shipment of goods.

It is a certificate issued by the trade consulate of the importer country stating that goods of particular value are imported from a particular country

Purpose : Its basic purpose is to inform details of goods supplied and the amt payable by importer to the exporter.

Its basic purpose is prompt clearance through customs at the port of destination.

Copies : It can be prepared in any number of copies depending on the need of the exporter, importer and the bank.

It is prepared in three copies : one for consulate office, Second for customs and the third for the exporter’s record.

Fee : Seller does not charge fee for preparing this document.

Consul of the concerned country charges nominal fee.

Contents : It contains the terms and conditions of sale as well as particulars of goods.

It only contains details regarding value of goods being imported from certain country.

Certificate

Certificate of origin (COO) :

Meaning : COO Declares that the goods which are being

exported are manufactured in a specific country. Features of certificate of origin Types of certificate of origin Importance and uses of certificate of origino Importance and uses of certificate of origin to the

exportero Importance and uses of certificate of origin to the

importer

Combined certificate of origin and value

Meaning : This document is applicable to

common wealth countries only. This document cerifies not only the origin of goods but also the value of goods.

Features of combined certificate of origin and value.

Thank You