Objective

The objective of the scheme is to involve the states in the export effort by providing assistance to the State Governments for creating appropriate infrastructure for the development and growth of exports.

States do not perceive direct gains from the growth in exports from the State. Moreover, the States do not often have adequate resources to participate in funding of infrastructure for exports. The proposed scheme, therefore, intends to establish a mechanism for seeking the involvement of the State Governments in such efforts through assistance linked to export performance

EXPORT is an organization with purpose, vision and strong values. The

company's willingness, honesty and sincerity have helped them to achieve their

objective to serve their customers in the best possible manner and get

appreciation for their products. The Customers can get a very competitive price

for their products at EXPORT

Meaning of export documents

When a firm sells its goods abroad, it must arrange for each export shipment to be accompanied by various documents. Depending on the country to which the goods are being sent, these documents will include some or all of the following: consular invoice, commercial invoice, certificate of origin, bill of lading, packing list, health certificate, import license, and insurance certificate

Some export documents are required to be prepared before the shipment of goods while some others are required while completing customs formalities. In addition, some documents are issued by the shipping company. All such documents are useful for completing the procedure of exporting are called shipping documents.

EXPORT DOCCUMENTATION

1} INVOICE Proforma invoice commercial invoice consular invoice

2} TRANSPORT DOCCUMENTS mate receipt bill of lading airway bill ARE 1 form Packing list Letter of credit Export Declaration

3} PAYEMENT OF DOCUMENTS Bill of exchange

4} CUSTOMS DOCCUMENTS shipping bill

5} EXCHANGE CONTROL DOCCUMENTS GR form PP form

6} MISCELLANEOUS DOCCUMENTS Marine insurance policy Insurance certificate Bill of entry Health certificate

7} CERTIFICATE certificate of origin combined certificate of origin and value

1} INVOICE

A} PROFORMA INVOICE

WHAT IS PROFORMA INVOICE?

Proforma invoice is quotation given in the form of regular invoice it is sent as a reply to an inquiry.

THE NEED FOR PROFORMA INVOICE

1. Proforma invoice contains the terms and conditions of sale. It may be the basis to conclude a contact of sale

2. It supports a tender for sale contract.3. It is used in case of export on consignment basis indicating to the agent the

price at which goods should be sold.

B} COMERCIAL INVOICE?

Commercial Invoice is the export firm's invoice, addressed to the foreign importer describing the goods shipped and the total price that it must payHowever, some countries require the commercial invoice to be prepared on their own forms. Such forms are sometimes called customs invoices

Countries that require a consular invoice also require a commercial invoice as additional proof of the details of the export shipment.

Countries that do not require a consular invoice, uses the commercial invoice as the document upon which the import duty is based.

The exporter may also sometimes be asked, when providing an export quotation for the foreign buyer, to supply a pro forma commercial invoice.

This document shows the foreign buyer what the commercial invoice will look like if the foreign buyer places the order. The exchange authorities in the foreign country sometimes require it before an import license is issued

IMPORTANCE /USES OF COMMERCIAL INVOICE

{A}USES OF COMMERCIAL INVOICE TO THE EXPORTER:

1. Commercial invoice is useful for the collection of payment from the importer.2. It is useful for completing export formalities with export inspection agency,

negotiating bank, excise & custom authorities.3. It is useful to settle disputes about payment.4. It is useful for the collection of export incentives & preparation of shipping

bill.5. It is useful for accounting purposes.

{b} IMPORTANCE /USES OF COMMERCIAL INVOICE TO THE IMPORTER:

1. Commercial duty is useful for the payment of customs duty.2. It indicates the exact amount payable to the exporter.3. It is useful for the collection of tariff concession, if available.4. It is useful for accounting & filling purposes.5. it is used to obtain loan from the bank against the impart of goods

C} CONSULAR INVOICE

WHAT IS CONSULAR INVOICE?

This is a form, usually obtainable only from the Consulate of the importing country, on which the exporter or its agent must enter a detailed description of the goods being shipped. Such a form is required by certain countries.

On the consular invoice, there is space not only for the name of the goods but also for any marks carried, the number of the items, their weight, the value and origin of the goods and a declaration that the information given is correct.

There must be no erasures or "strike-over" in typing, pen-and-ink changes, or additions.

In some countries, the goods must be described in terms of the customs tariff of the importing country and the tariff number of the items given. Export Trade Barriers

Most countries requiring consular invoice also insist that the document be "legalized" that is, have its accuracy sworn to by the exporter or its agent at the consulate of the importing country.

Consular invoice is a certificate issued by the trade consulate of the importers country Stating that goods of particular value are being imported from a particular country by A particular importer

BENEFITS/USES OF CONSULAR INVOICE

{a}BENEFITS/CONVENIENCE TO THE EXPORTER:

It facilitates easy clearance of goods from the customs.1. 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 buyers country without any difficulty.

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

{b}BENEFITS/CONVENIENCE TO THE IMPORTER:

1. The importer gets quick delivery of goods & that too without opening the containers for verification purpose.

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

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

{c}BENEFITS/CONVENIENCE TO THE CUSTOMS OFFICE:

1. The work of customs authorities become easy & quick. Goods are cleared quickly.

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

3. No need to open the cargo to calculate the value of goods.4. Loss of time & re-packing of the goods are avoided.

(2)TRANSPORT DOCCUMENTS

MATE RECIPT

WHAT IS MATE’S RECIPT?

Mate’s receipt is issued by the mate or master (commanding officer) of the vessel it is a primia facie evidence that goods are laded in the vessel. Mate’s receipt is an acknowledgement of the goods received on board the ship.

CONTENTS OFF MATE’S RECEIPT:

Name of the ship & Name of the shipping company Date of shipment Description of packages(quality,quantityetc) Number of packages marks on them Condition of cargo when it was received on the board Port of loading & port of delivery Name & address of the exporter & importer Voyager number & date Freight paid or payable Signature of issuing authority

TYPES OF MATE RECIPTS

(a) Clean receipts indicate that goods have been properly packed & there is no defect of any kind in the packaging.(b) Qualifies receipts means packaging is defective & that shipping company will not be responsible for damages of any kind

BILL OF LADING

A document supplied to the exporter by the shipping company that is transporting the goods to their foreign destination, listing, item by item, the goods being shipped. It serves three basic purpose:

1. To acknowledge receipt by the carrier of the exporter's goods.

2. To indicate the carrier's contractual obligation to transport the goods to their destination in exchange for payment.

3. To record transfer of title (or ownership) from the seller to the buyer when payment for the goods takes place. Airlines use what is called an Air Waybill.

WHAT IS BILL OF LADING?

Bill of lading is a document of title to the goods it is issued by the shipping company & serves as a receipt from the shipping company which undertakes to deliver the goods at agreed destination payment of freight.

CONTENTS OF BILL OF LADING

Name & address of the shipper/consignee & the name of the shipping company

Name of the ship voyage number & date of loading of goods on the ship Quantity Quality marks & description of goods Number of originals issued Port of shipment & port of destination & date of loading Number of packages Signature of issuing authority Freight paid or payable.

IMPORTANCE / BENEFITS OF BILL OF LADING

(A) IMPORTANCE / BENEFITS TO THE EXPORTER:

Bill of lading is a legal document. In the event of dispute it can be presented in a court of law

It is an acknowledgement of the receipt of the goods on board the ship It is a contract of transportation It enables the exporter to send a shipment advice to the buyer. It helps the exporter to file claim of compensation if goods are damaged in

transit. It helps the exporter to calculate exact amount of freight while submitting

CIF quotation It is used when claiming duty drawback

(B) IMPORTANCE / BENEFITS TO THE IMPORTER

It is a document of title to the goods It is a semi-negotiable document i.e. its ownership can be transferred

by endorsement & delivery. It enables importers to pay exact amount of freight under FOB

quotation.

(C) IMPORTANCE / BENEFITS TO THE SHIPPING COMPANY:

It enables the shipping company to collect freight either from the exporter or importer.

It protects the shipping company in the sense that goods damaged before loading on the ship is shown in B/l

Main types of bill

Straight bill of lading

This bill states that the goods are consigned to a specified person and it is not negotiable free from existing equities, i.e. any endorsee acquires no better rights than those held by the endorsor. So, for example, if the carrier or another holds a lien over the goods as security for unpaid debts, the endorsee is bound by the lien although, if the endorsor wrongfully failed to disclose the charge, the endorsee will have a right to claim damages for failing to transfer an unencumbered title.Also known as a non-negotiable bill of lading.

Order bill of lading

This bill uses express words to make the bill negotiable, e.g. it states that delivery is to be made to the further order of the consignee using words such as "delivery to A Ltd. or to order or assigns". Consequently, it can be endorsed by A Ltd. or the right to take delivery can be transferred by physical delivery of the bill accompanied by adequate evidence of A Ltd.'s intention to transfer. Also known as a negotiable bill of lading.

Bearer bill of lading

This bill states that delivery shall be made to whosoever holds the bill. Such bill may be created explicitly or it is an order bill that fails to nominate the consignee whether in its original form or through an endorsement in blank. A bearer bill can be negotiated by physical del

(A)CLEAN B/L Clean bill of lading means a bill without any adverse remarks about conditions Of goods.

(B)Claused B/L It bears some adverse remarks when goods are not properly packed & show Signs of damage. The shipping company puts adverse remarks e.g. Goods Damaged.

(C)Freight Paid B/L When the freight is paid by the exporter it is called freight collect bill of lading

(D)Freight Collect B/L When the export contract is on F.O.B. terms & when freight is not paid by the Exporter it is called freight collect bill of lading

(E)Direct B/L When the ship carries goods from the port of shipment to the port of destination shipping company issues direct bill of lading

AIRWAY BILL

WHAT IS AIRWAY BILL?

When goods are exported by air the concerned airline authorities issue airway bill AWB is merely a receipt of the goods meant for export.

ARE-1 FORM

This form is to be filled by exporter who claims rebate of duty paid on finished goods or export under bond or under Letter of Undertaking (LUT). It also contains a Certificate from Central Excise officer, certifying that the amount of duty has been paid on goods which is specified on the ARE-1 form (in case of export under rebate).

It also contains a certificate from Central excise Officer that he has examined the goods and that particular in ARE – 1 and in the invoice are correct. The ARE-1 form also contains a certificate from customs officer certifying that goods were shipped under his supervision.

The manufacturer exporter has to fill the details in the ARE-1 form in five copies. Each of the 5 copies has different colour for easy processing. The five copies are as follows:

1 - Original Copy - white

2 - Duplicate copy - Buff

3 - Triplicate Copy - Pink

4 - Quadruplicate - Green

5 - Quintuplicate - Blue

The five copies are handed over to the Excise Inspector for processing.

6} Packing list

This little-used document supplements the commercial invoice when numerous units of the same product are being shipped or when quantities, weight or contents of individual units in a shipment vary. Generally a separate list is prepared for each package, showing the weight, measurements and contents. (Specification of the outside dimension of each case and the total weight of the shipment is often included in the required data.) Custom officials may carry out a partial examination by

Checking a certain number of the cases. If the packing list proves accurate for these, the rest of the shipment is assumed to be in order.

Letter of credit

A letter of credit is an irrevocable payment undertaking of an issuing bank issued to a beneficiary upon request of an applicant for supply of goods, services or performance with documents stated in the letter of credit presented to the issuing bank, a nominated bank or confirming bank, if any, within the expiry date of the letter of credit or within a stated number of days after shipment, where applicable, in full compliance with the terms and conditions of the letter of credit, the applicable UCP and international standard banking practice. It is a legally enforceable obligation or undertaking on the part of the issuing bank and is not a contract (although it is sometimes mistakenly referred to as such).

Export Declaration

Under the Import and Export (Registration) Regulations, every person who imports or exports any article other than an exempted article is required to lodge with the Commissioner of Customs and Excise an accurate and complete import or export declaration within 14 days after the importation or exportation of the article Prosecution may be initiated against any person who fails to lodge the required declaration, or knowingly or recklessly lodges any declaration that is inaccurate in any material particular.

Starting from 1 April 2000, import/export declarations can only be lodged electronically through the services provided by specified service providers, currently being Tradelink Electronic Commerce Limited (Tradelink). Service is also provided to convert paper declaration information into electronic messages if necessary. To foster market competition, Global e-Trading Services Limited (Ge-TS) has been appointed by the Government as an additional service

(3) PAYEMENT OF DOCUMENTS

BILL OF EXCHANGE WHAT IS BILL OF EXCHANGE?

Bill of exchange is also known as “Draft ‘. A bill of exchange is an instrument In writing containing an unconditional order, signed by the drawer, directing a certain person to pay a certain sum of money only to or to the order of a person or to the bearer of the instrument. CONTENTS OF BILL OF EXCHANGE

Name & signature of the drawer. Name of the drawee. Name of the payee or order & endorsement of the payee where applicable. Specified sum.

Fixed date or determinable future date of employment.

ADVANTAGES TO THE EXPORTER

A bill of exchange provides some protection to the exporter against the importer for not paying the bill amount provided it is documentary bill of exchange in D/A OR D/P.

(4)CUSTOMS DOCUMENT

WHAT IS SHIPPING BILL? Shipping bill is the main customs department. it is required by the customs Authorities for granting permission for the shipment of goods

CONTENTS OF SHIPPING BILL

Name & address of shipper Name of the vessel Name of the agent if any Port of destination Amount of drawback claimed Description, quantity & value of shipment Number of packages & the marking on them Other details, if applicable

TYPES OF SHIPPING BILL

DRAWBACK SHIPPING BILL:Drawback shipping bill is useful for claiming the drawback of duties paid to customs authorities.

THE FREE SHIPPING BILLThe free shipping bill is useful for exporting the goods on which export duty is not charged.

DUTIABLE SHIPPING BILLDutiable shipping bill is required for goods on which export duty is payable as per the rates fixed.

SHIPPING BILL FOR SHIPMENT EX-BONDShipping bill for shipment ex-bond is printed on yellow paper. Imported goods meant for re-export & lying in bonded warehouse uses this shipping bill in order to make it easy to identify category of export following colors have been provided to different kinds of shipping bills-Types of goods by sea by air

Drawback goods Green Green Dutiable goods Yellow Pink Duty-free goods White Pink Ex-bond goods Yellow Yellow

NUMBER OF COPIES OF SHIPPING BILLS

Shipping bill is required by different agencies for inspection & filling they are prepared in five qualities & include Customs copy Drawback copy Export promotion copy Port trust copy Exporters copy

(5)EXCHANGE CONTROL DOCUMENTS

WHAT IS PP FORM?

PP Form is also an exchange control document. It is used in place of form GR when goods are exported by post parcel.

WHAT IS FORM OF GR?

Form GR is an exchange control document which is to be submitted to the Reserve Bank of India after clearance from the customs authorities. It is Designed mainly to furnish guarantee to the reserve bank of India to remit the Foreign exchange earned from the export within 180 days from the date of Exports

CONTENS OF FORM GR

Name of the exporter Name of the negotiating bank Currency in which payment will be received Name of buyers country Port of origin Port of destination Commission or discount payable on export Quality quantity & value of exports

PREPERATION OF FORM GR

Form GR is used for declaring exports to all countries other than Nepal & Bhutan. It is to be completed in duplicate

Form GR is used to declare receipt of foreign exchange. All entries should be made in the currency of the commercial invoice Banks name concerned with the realization of export proceeds should be

noted clearly The code number of exporter should be noted correctly & the clauses

which are not applicable should be scored out.

OPERATION OF GR

The exporter has to submit GR forms to the customs authorities (in duplicate) so as to obtain necessary permission for shipment of goods.

The custom authorities then scrutinize the form with reference to exchange regulations

Original copy of the form is retained by the customs authorities for forwarding it to the reserve bank of India

Duplicate copy is handed over to the exporter for lodging with the negotiating bank through which payment for exports is to be realized

The duplicate copy of the form GR will be retained by the bank till full exports proceeds are realized

When payment is received the bank will send duplicate copy of form GR to RBI this is by way of intimation that the exporter has realized payment in foreign exchange.

(6) MISCELLANEOUS DOCUMENTS MARINE INSURANCE POLICY

WHAT IS MARINE INSURANCE POLICY? A marine insurance policy is a contract that covers perils on high sea.

INSURANCE CERTIFICATE

Goods meant for exports are compulsorily covered by insurance. Mostly insurance contracts are either under an open or floating policy. There is no need to arrange for separate insurance for each shipment. As a proof of insurance for a shipment under an open policy, the exporter obtains insurance certificate from insurance company. The certificate contains information on the goods shipped all the entries in this certificate must tally with information of B/L, commercial invoice & consular invoice.

BILL OF ENTRY

WHAT IS BILL OF ENTRY?

This document is used in case of import business this document contains detail like quality, quantity, number of packages etc when goods enter the

dock of the importing country.

CONTENTS OF BILL OF ENTRY Name & address of the importer Name & address of the exporter Description of goods Value of goods Import license number of the importer Name of the port/dock where goods are to be cleared Rate & amount of import duty payable Any other details

HEALTH CERTIFICATE

WHAT IS HEALTH CERTIFICATE?

Health certificate is required for exports of food products, seeds, and animal meat products etc. the certificate is used by the health department of the exporting country certifying that these items are free from infection & contamination.

(7) CERTIFICATES

WHAT IS CERTIFICATE OF ORIGIN?

Certificate of Origin is a document, which indicates the country in which the goods were produced, is required whenever preferential duties are claimed.

Sometime, consular legalization of the document is necessary. Also, certification of the document by a Chamber of Commerce is requiredCertificate of origine (COD) declares that the goods which are being exported are manufactured in a specific country.

WHAT IS COMBINED CERTIFICATE OF ORIGINE & VALUE?

Many countries require the exporter to complete and sign a Certificate of Value.

In this document, the exporter states that the invoice contains a true and full statement of the price paid for the goods by the importer and that there is no other arrangement between the exporter and the foreign buyer about the purchase price.

The purpose is to discourage double invoicing whereby the importer presents one invoice for customs duty calculation but in fact pays the exporter a larger sum based on true invoice.

Often no separate document is required for the statement of value. Consular invoices usually contain a space in which a declaration of value must be made.

Sometimes, a Chamber of Commerce or similar organization must certify the value of the goods before the Certificate of Value is acceptable to the Customs authorities in the importing country.

This document is applicable to commonwealth countries only. This document certifies not only the origin of goods but also the value of goods.

TYPES OF CERTIFICATE OF ORIGIN:

1. CERTIFICATE FOR CLEARANCE: These certificate are required by all countries for clearance of goods

By the importer. They are generally issued by trade association and the. Chambers of commerce.

2. CERTIFICATE FOR AVAILING CONCESSIONS UNDER GSP;These certificates are required for availing concessions available under Generalized System of Preference (GSP) from countries like USA, Japan, Germany, New Zealand, Italy, BENELUX, etc. This certificate can be obtained from Central Silk Board, Export Inspection Council, Joint DGFT, Jute Commissioner, etc. Such certificate ate to be obtained in triplicate.

3. CERTIFICATE FOR AVAILING CONCESSIONS UNDER COMMONWEATH PREFERENCES:The prescribed form of Origins issued by the office of the high commissioner of the importing country.

IMPORTANCE & USES OF CERTIFICATE OF ORIGIN:

IMPORTANT/USES OF CERTIFICATES OF ORIGIN TO THE EXPORTER:

This document certifies that goods are Indian in origin. It facilitates clearance of goods from the customs of the exporter’s country.

IMPORTANT/USES OF CERTIFICATES OF ORIGIN TO THE IMPORTERS:

An importer gets quick delivery of goods from the customs An importer can claim special concession as regards payment of tariff. An importer gets adequate proof about the origin of goods. An importer is convinced that those goods are not re-shipped.

A

PROJECT REPORTON

“STUDY OF EXPORT IMPORT DOCUMENTATION”

SUBMITTED TO

UNIVERSITY OF MUMBAI

IN THE PARTIAL FULFILLMENT FOR THEREQUIREMENT OF THE BACHELOR OF COMMERCE

(T.Y. B.COM) DEGRE

SUBMITTED BYMR. Amit Dwarikaprasad Gaud

T.Y.B.COM.ROLL NO. 82

ACADEMIC YEAR: 2006-2006

UNDER THE GUIDANCE

PROF. U.M. MASKE

PEOPLE’S EDUCATION SOCIETY’SSIDDHARTH COLLEGE OF COMMERCE AND ECONOMICS

DEPARTMENT OF BACHELOR OF COMMERCE‘ANAND BHAVAN’, DR. D.N. ROAD

FORT, MUMBAI – 400 023.

ACKNOWLEDGEMENT

First and foremost, I would like to thank University of Mumbai for giving

me an opportunity to prepare a project report on “STUDY OF EXPORT

IMPORT DOCUMENTATION”. And I would like to express my

gratitude towards my project guide. Prof.U.M. Maske, because of whom I

was able to select such an informative and researchable topic and complete

this project within the stipulate period. They provided most valuable,

qualitative and quantitative information to this Project Report and for his co-

operation and helps in the same.

I would also like to thank our Bachelor of Commerce B.Com. Co-ordinator

Prof. U.M. Maske and the Principal Dr. K. A.Patil for their co-operation and

help I the Project Report.

I am also thankful to Librarian, Asst. Librarian and other Staff Members of

College Library, for their help and co-operation. Last but not the least, I

would like to thank my family and friends who guided and supported me

directly / indirectly throughout the project.

MR. Amit Dwarikaprasad Gaud

DECLARATION

I, Mr. Amit Dwarikaprasad Gaud, a student of the Siddharth College of

Commerce & Economics, Mumbai studying in T.Y.B.Com hereby declare

that this project title “A SUTDY OF EXPORT IMPORT

DOCUMENTATION” has been prepared by me during the Academic Year

2006-2007 under the guidance of Prof. U.M. Maske, Commerce faculty of

Siddharth Colelge of Commerce & Economics, “Anand Bhavan”, Dr.D.N.

Road, Fort, Mumbai – 400 023.

The information submitted in this project is true and original to the best of

my knowledge. I also hereby declare that this project report has not been

submitted any time to the University of Mumbai and any other university or

institute for the award or any degree or diploma.

___________________________SIGNATURE OF THE STUDENT(MR. Amit Dwarikaprasad Gaud)

ROLL NO.82

DATE:________________ PLACE: MUMBAI

CERTIFICATE

This is to certify that Mr. Amit Dwarikaprasad Gaud, a student of Third

Year of Bachelor of Commerce (T.Y.B.COM.) has prepared this Project

titled “A STUDY OF EXPORT IMPORT DOCUMENTATION” as a partial

fulfillment for the requirement of the Bachelor of Commerce (B.Com.)

Degree for the Academic Year : 2006-2007.

___________________ _______________________

PRINCIPAL T.Y.B.COM CO-ORDINATOR

(DR. K.A. PATIL) (PROF. U.M. MASKE)

GUIDE CERTIFICATE

This is to certify that this project is based on an original project study carried

out by Mr. Amit Dwarikaprasad Gaud, a study of Third Year Bachelor of

Commerce (T.Y.B.Com.) under my guidance. The information provided in

this project is true and original to the best of my knowledge.

__________________PROJECT GUIDE(PROF. U.M. MASKE)

DATE;______________ PLACE: MUMBAI

METHODOLOGY RESEARCH

Methodology is a way to systematically solve the research problem. For

every research work, before it is carried out and even at the time of

implementation, it is very important as show it is carried out. Methodology

helps us to understand what care is to be taken while preparing the report.

The methodology adopted is as follows:

The data is collected through two sources:

1. Primary Data Collection

2. Secondary Data Collection

PRIMARY DATA:

Various meetings with Prof. U.M. Maske in the college.

SECONDARY DATA

Secondary data are collected from the following sources:

College Library Books

Magazines

Booklet & Broacher

Websites.