export documentation and role of clearing and forwarding

7/30/2019 Export Documentation and Role of Clearing and Forwarding

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Meaning and definition of export

documentationExport transaction requires many documents to

be submitted to various authorities. The two broadcategories of documents are commercial documentsand regulatory documents.

From October 1, 1991 the new standardizedocuments have come into effect in India. They are

called Aligned Documentation prepared under theAligned Documentation System, which are based onUnited Nation layout.


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Types of export documents Commercial documents

Principal documents

Auxiliary documents

Regulatory documents


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PRINCIPAL DOCUMENTS Commercial invoice.

Packing list.

Bill of lading. Combined transport document.

Certificate of inspection/quality control.

Insurance Certificate or Insurance policy if there is CIFcontract.

Certificate of origin.

Bill of Exchange and Shipment advise.


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AUXILIARY DOCUMENTS Proforma invoice.

Intimation for inspection.

Shipping instruction. Insurance declaration.

Shipping order.

Mates receipt.

Application for certificate of origin

Letter to the bank for collection/Negotiabledocuments.


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REGULATORY DOCUMENTS Gate Pass-I/Gate Pass II

AR4/AR4A Form

Shipping Bill/Bill of Export

Export Application, Dock Challan

Receipt for payment of port charges

Vehicle ticket

Exchange control declaration i.e., GR form/PP formprescribed by Reserve Bank of India

Freight Payment certificate

Insurance Premium Payment Certificate


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Classification on the basis of need

and requirement


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1. Documents related to goods: Invoice. Packing list/Note. Certificate of Origin (COO).

2. Documents related to shipment: Mate Receipt. Shipping Bill. Cart Ticket. Certificate of Measurement. Bill of Lading. Airway Bill (AWB). Form B-X, for export by post.


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3. Documents related to payments:

Letter of credit (L/C).

Bill of Exchange (B/Ex).

Trust Receipt.

Letter of Hypothecation.

Bank Certificate of Payment.4. Documents related to Inspection:

Certificate of Inspection.

5. Documents related to excisable goods:

GP forms.

Form C.

AR-4/AR-4A form.


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6. Documents related to Foreign ExchangeRegulations:

GR forms.

PP forms.

VP/COD forms. CNX forms.


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Classification on the basis of

functions to be performed


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1. Trade Documents- include commercial invoices, bill ofexchange, bills of lading, letters of credit, marine

insurance policy and certificates, etc.2. Regulatory Documents- required for complying with

the rules and regulations governing export tradetransactions such as foreign exchange regulations,customs formalities, export inspection, etc.

3. Export Assistance Documents-required for claimingassistance under the various export assistance measures.Presently, these refer to import replenishment licences,cash compensatory support schemes, drawback ofCentral Excise and customs duties and packing credit

facilities.4. Foreign Documentations-required by the importer inorder to satisfy the requirements of his Government.These include certificate of origin, consular invoice,quality control certificate.


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Significance of export documentsI. Regulation of trade: G-R Forms

Export licence

Inspection certificate

Consulor invoice

Certificate of origin

II. Facilitation of export operations

Shipping Bill

Bill of lading/Airways bill

Marine insurance policy

Export assistance schemes


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Clearing and Forwarding agents

Clearing and Forwarding agents are a link between

the owners of goods and owners of means of transport.They help cargo owners in efficient movement ofgoods to the buyers by completing a number ofprocedural and documentary formalities.


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Role of clearing and forwarding

agentsI. Essential Services Warehousing before transportation. Local transportation

Container transportation. Reservation of shipping space. Selection of mode of transport. Packing, Marking and Labeling. Completing customs and port formalities.

Cargo insurance. Advising exporters on trade laws. Educating exporters. Coordination with other agencies. Procuring Documents.


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II. Optional Services:

Warehousing facilities abroad.

Bringing back goods. Locating stranded Goods.

Assessment of Damage.


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References Export Management: N.Kumar, R.Mittal.

EXPORT IMPORT PROCEDURES-

DOCUMENTATION AND LOGISTICS: C.RamaGopal

Export marketing: B.S.Rathor.