expoert import procedure & documentation

8/12/2019 Expoert Import Procedure & Documentation

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IMPORT EXPORT DOCUMENT &

EXPORT ORDER PROCESS

PROCESSING AN EXPORT ORDER

Entering into export contract

The different aspects of an export contract are enumerated as under:

1. Product, Standards and Specifications

2. Quantity

3. Inspection

. Tota! "a!ue of #ontract

$. Terms of %e!i&ery

'. Taxes, %uties and #harges

(. Period of %e!i&ery)Shipment


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*. Pac+ing, a-e!ing and ar+ing

/. Terms of Payment00mount)ode #urrency

1. %ocumentary 4e5uirements


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Processing the export order

The export cyc!e

1. Setting up the dea!

once you ha&e esta-!ished your sa!es contract, -y either -eing in

possession of an internationa! purchase order or a documentary credit

stating you as the -eneficiary, you are no6 in a position to process the

order. There are a fe6 steps you shou!d go through 6hen processing an

export order. 7o6e&er, you must first 6ait unti! the dea! has -een

proper!y esta-!ished -efore committing your resources to the order.

#ase Study:

s you can see, 8ohn otsa has recei&ed an internationa! purchase

order from 9i!! 8ones and has -een ad&ised -y his -an+ of the

documentary credit made a&ai!a-!e to him -y 9i!!s -an+ in ondon.

8ohn has chec+ed the documentary credit ;)#< according to the

chec+!ist and has accepted the credit 6ithout amendment.


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2. Shipping the goods

once the dea! has -een set up, you shou!d ta+e the fo!!o6ing steps:

4ead the purchase order)documentary credit &ery carefu!!y and ta+e

note of the re5uirements of the -uyer. If there are any pre0shipment

actions that must occur, these acti&ities must ta+e p!ace -efore you

-oo+ the freight and !oad the container. Pre0shipment acti&ities cou!d

inc!ude pre0shipment inspections, hea!th inspections or product

ana!yses, a!! of 6hich must -e carried out -efore the goods ha&e -een

pac+ed for shipping. If any of these inspections are re5uired, ma+e

arrangements 6ith the appropriate ser&ice pro&iders and o-tain the

necessary certification -efore shipping the goods.

=ou are no6 in a position to comp!ete your >1(* and ha&e it attested

6ith the -an+. s an >1(* dec!aration is a commitment -y you to the

4eser&e 9an+ that funds 6i!! -e -rought into the country in exchange for

goods, you shou!d not ma+e this dec!aration unti! you are sure the dea!

is going to happen.

=ou are no6 ready to pac+ and !a-e! the goods. t this point, you can

contact your freight for6arder to ma+e a -oo+ing on the next a&ai!a-!e

carrier, or on the carrier offering the ser&ice you re5uire. =ou 6i!! furnish

your for6arder 6ith a freight for6arders instruction and an attested

>1(*, and re5uest him to arrange for customs c!earance and transport.

7e can a!so arrange for marine insurance if re5uired. =ou 6i!!, at this

point, arrange for him to co!!ect the goods or de!i&er the goods to his

6arehouse yourse!f.

=our freight for6arder 6i!! de!i&er the goods to the carrier and o-tain a

transport document as proof of receipt. 7e is no6 in a position to

arrange for customs c!earance, 6hich 6i!! re5uire the su-mission of a

customs -i!! of entry % $$, an attested >1(* and a transport document

;in the case of air, road and rai! exports


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document, insurance document, as 6e!! as the &erification documents

issued -y third parties.

#ase Study:

9ased on the )#, 8ohn comp!eted his >1(* and had it attested at his

-an+. 7e then app!ied to the %irectorate: P!ant Protection and Qua!ity

#ontro! for the issue of a phytosanitary certificate. 9ased on his

dec!aration, the certificate 6as issued. 7e then 6ent to the

8ohannes-urg #ham-er of #ommerce and arranged for the issue and

authentication of a certificate of origin. 8ohn 6as no6 in a position to

ship the goods. 7e contacted his for6arder, made a -oo+ing on the next

a&ai!a-!e f!ight to ondon and sent the for6arder a freight for6arders

instruction, a!ong 6ith his origina! attested > 1(*. t the same time, he

arranged for his assistant to de!i&er the honey to the for6arders

premises at 8ohannes-urg Internationa! irport. The for6arder handedthe cargo o&er to South frican ir6ays and 6as issued an ir 6ay-i!!.

% $$ 6as comp!eted and su-mitted, a!ong 6ith the >1(* and ir

6ay-i!! to 8ohannes-urg Internationa! irport #ustoms. #ustoms

c!earance 6as o-tained and the for6arder issued an insurance

certificate according to the information in the freight for6arders


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instruction. The for6arder then handed o&er the ir 6ay-i!!, insurance

certificate, > 1(* and % $$ to 8ohn. 8ohn 6as no6 in a position to

issue his pac+ing !ist and commercia! in&oice. 7e no6 had a!! the

documents re5uired -y the )#.

3. ?etting Paid

@nce a!! documents are ready and comp!eted in accordance 6ith the

documentary credit, ;or if not using a documentary credit, in accordance

6ith the purchase order


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documents 6ere accepted. 8ohn then signed a >orm E, 6hich cance!!ed

his >1(* o-!igation, and a!!o6ed the -an+ to -uy his AS do!!ars. The

-an+ deposited the rands into his account t6o days !ater. 8ohn had Bust

comp!eted his first export order.

The -an+ sent the documents to the issuing -an+ in ondon, 6hich in

turn has handed them o&er to 9i!! 8ones. 9i!!, in the meantime, has ta+en

receipt of the honey, -ased on an air6ay re!ease issued -y his -an+, as

the documents ha&e ta+en !onger than the goods to get to ondon. 9i!!

no6 has the honey in his 6arehouse and 8ohn has -een paid.

. >o!!o60up and ser&ice: The +ey to future success

the most important part of your export mar+et de&e!opment process has

no6 arri&ed. It is sometimes more difficu!t to secure a fo!!o60up order

than it is to achie&e the first order. It is &ita!, at this point, to get

feed-ac+ from the -uyer as to 6hether you ha&e met his needs. It might

-e necessary, to p!an a fo!!o60up &isit to secure your position 6ith the

-uyer and chec+ to see 6hether his needs ha&e changed. The chances

are that one of your competitors has ta+en action against your entrance

-y possi-!y offering the -uyer -etter terms of payment. It is &ita! that

you de&e!op your mar+et inte!!igence in order to ta+e 6hate&er action is

necessary to +eep your mar+et and increase your mar+et share.

#ase Study:

8ohn has recei&ed en5uiries from ?ermany 6hich !oo+ promising and

has Bust arranged another &isit to Europe. 7e has made arrangements

6ith 9i!! 8ones to attend the !aunch of his honey at one of the main

retai!ers in ondon.

The fo!!o6ing set of documentation 6i!! assist you 6ith comp!eting the

re5uired documents for processing your export order:

#ertificate of origin

ir 6ay-i!!

#ertificate of Insurance

9i!! of entry)export


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#ommercia! in&oice

Pac+ing !ist


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So, the export order processing can -e summariCed as fo!!o6s:

1. The importer ma+es in5uiry from potentia! supp!ier exporter sends

cata!ogs and price !ist .Importers re5uest for samp!es. Exporter recei&es

purchase order.

2. Importer arranges financing through his -an+.

3. ImporterDs -an+s send !etter of credit.

;ost fre5uent!y used form of payment


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1. Export #harges 4e5uirements


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Export charges

!imited num-er of items, most!y primary commodities or

processed agricu!tura! products, are su-Bect to duties. #urrent!y,

the on!y products su-Bect to an export tax ;at the rate of 1< are

goat, sheep and -o&ine !eathers. Products may a!so -e su-Bect to a

minimum export price. The !ist of products su-Bect to minimum

prices inc!udes -asmati and non0-asmati rice, cotton, and hard

and soft cotton 6aste. ost minimum export prices are specified

in do!!ars on an fo- -asis.

Export re!"ire#ents

Sett!ement of 9i!!s: The ?o&ernment prescri-es conditions for

exchange contro! and sett!ement of -i!!s re!ated to exports under

the authority of the >oreign Exchange 4egu!ation ct, 1/(3. >or

norma! commercia! exports to a!! countries, except Fepa! and

9hutan, exporters are re5uired to comp!ete the ?4 >orm in

dup!icate. The ?4 >orm co&ers exports not made -y post.

Gith fe6 exceptions, a!! exports must -e dec!ared on the

appropriate form and the exporters code num-er as assigned -y

the 4eser&e 9an+ of India must -e sho6n on the form.

The payment arrangements are !etter of credit, sight draft, time

draft and shipment on consignment. The time !imit for sett!ement

of export proceeds, that is, the amount representing the fu!! export

&a!ue of the goods, is six months. maximum of 1$ months isa!!o6ed for exports to Indian0o6ned 6arehouses a-road.


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EXPORT DOCUMENTS

%ocuments: The fo!!o6ing documents are re5uired for exports:

GR FORM

EXPORT LICENSE0documentindicating that a go&ernmenthas granted a !icenseethe rightto exportspecified goodsto

specified countries

EXPORT DECLARATION

CUSTOMS ENTRY FORM

CUSTOMS INVOICE0 Extended formof commercia! in&oice

re5uired-y customs;often in a specified format< in 6hich theexporterstatesthe description, 5uantityand se!!ing price, freight,insurance, and pac+ingcosts, termsof de!i&eryand payment,6eightand)or &o!umeof the goodsfor the purpose of determining

customs import &a!ueat the port of destination.

COMMERCIAL INVOICE0 %ocumentre5uired-y customsto

determine true &a!ueof the imported goods, for assessmentof

dutiesand taxes. commercia!in&oice;in additionto other

information


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;3< Type of pac+aging,

;< comp!ete descriptionof goods,

;$< Anit &a!ueand tota! &a!ue, and

;'< Insurance, shippingand other charges;as app!ica-!e

expoert import procedure & documentation

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