exportprocedures

7/27/2019 exportprocedures

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Export procedures

By: shruti Bhatt


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It is essential for an exporter to register

himself with the specified authorities:

1) Regional licensing Authority

2) Registration with export promotion

councils


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Regional licensing Authority

The JDGFT for the respective area is theauthority under which an exporter has toregister himself, and obtain IEC number.

The custom authority will not allow one toexport or import from one country unless hehas obtained the IEC number.

After obtaining IEC number does not exportor import any goods in a year, the authoritiesmay strike off the IEC number from the list


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Registration with EPCs

This is dine on a prescribed form given by thecouncil.

This registration also helps the exporter to getany benefit given under export import policy.

If the product or services to be exported does

not have any specific council or authority towhich it is attached, the organization can registerwith FIEO (federation of Indian exporterorganization)


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Procedure in the various phases of export

Offer & Receipt of confirmed order

Production & clearance of the products for

exports.

Shipment

Negotiation of Documents & realization of exportproceed.

Obtaining various export incentives.


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Offer & Receipt of confirmed order

The proposal submitted by an exporter isreferred to as offer. The offer, when acceptedby the foreign buyer, becomes an order.

The offer made by the exporter is usually inthe form of a PerformaInvoice.

This is just a documents indicating theexporter intention to sell, and usually addressto the prospective buyer.


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The consignee or the buyer

Description of goods

Price

Conditions for sale

Other obligations


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The consignee or the buyer

Name & address of buyer

Consignee can be individual, a company, a

corporation or a government department.

Description of goods

Important technical specifications &

physical features which make the

identification of the product easy.


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Price

The Performa invoice should indicate theunit & total prices of the productioninternationally accepted or mutually agreedcurrency.

It should indicate total quality of productsoffered.

There should be clearly indicate the discountfor a specific volume.


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Conditions for sale

The Performa invoice submitted entails legal

obligations on the part of the exporter to

supply the product to the buyer, in the event

of the invoice being accepted by him.

Hence it is necessary that the conditions of

sale & other factors qualifying it should be

clearly spent out.


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Conditions for sale

Validity

Delivery Schedule

Inspection

Payment terms


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Producing the goods

Processing of an export order is to make

arrangements for the items to be produced at

the factory of exporter or to be obtained from

supplier.

All the operations from the time for production

is placed, till it reaches to export warehouse,

are normally covered by this phase.


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Excise Duty Rebate

It is levy imposed by government of India on allexcisable item as specified by it and is usually

collected at source, i.e. manufacturing stage.

The manufactured products, as soon as they are

ready for dispatch from the factory attract the levy.

Only after the excise is paid can the products be

removed from the factory premises.


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Sales Tax Exemption

The govt. allows exemption from paying sales

tax for export products.

For this, Exporter should register with the

sales tax authorities.

Sales tax exemption is for the last two stages

of transaction in a product before export.


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Pre shipment Inspection of Export Cargo

The GOI has introduced a compulsory pre

shipment inspection for selected items of export to

ensure that the products to be exported conform to

high quality std.

Pre shipment inspection scheme is administered

by the Export Inspection council. Under this

scheme, the emphasis is on quality control rather

than on inspection for export.


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In case the export of the product is subject toexport inspection by the agency, the exporter

makes an application in the prescribed form to the

export inspection Agency, enclosing the following

documents.

Copy of commercial Invoice

A cheque or Demand Draft

A copy of export contract


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Shipment

More popular method of Dispatching goodsto an export buyer than dispatch by air.

Freight charges are less compare to airfreight.

Physical size of product constraints theexporter to dispatch the goods by air.


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The clearing & Forwarding Agents

This are specialized personnel who

arrange for the completion of all formalities

connected with the shipment of goods.

As soon as the export goods reaches to

the warehouse, the exporter arranges for a

complete set of shipping documents, to be

passed on the forwarding agent.


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These comprise: GR-1 form

Performa Invoice

Certificate of inspection where necessary. Form of declaration

Shipping bill

Export License Mate Receipt

Port trust dues


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GR form

It is an exchange control documentrequired by RBI.

As per exchange control regulations, anexporter has to realize the proceeds Within180 days from the date of shipment fromIndia.

In order to ensure this, the RBI hasintroduced the GR Form.


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Shipping bill

Its a main document required by the customauthorities for the purpose of Grantingpermission for shipment.

It is prepared in 5 copies.

It contains the name of exporter, his address,code no, the description and Quantity ofgoods to be shipped, the value of goods,number of packages etc.


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Export License

The GOI regulations require that an exportlicense be obtained for certain categories of

export products before shipment is made.

Obtained from DGFT

DGFT scrutinizes the application with reference

to quantity, value and description of goods in all

the documents.


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Customs clearance

According to prevailing customs regulations,

no cargo meant for export can be loaded on

a ship unless the custom authorities at the

port accord their formal approval.

After obtaining the shipping documents,

including 5 copies of shipping bills is

submitted by the exporter to the customs

house concern.


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Negotiation

A complete set of negotiating documents

is presented to the negotiating bank

through whom the L/C has been advised.

Where the exporter has compiled with all

the T&C of the L/C while submitting his

documents to the negotiating bank, the

documents are deemed to be clean.