Documents Required for Your Export Order
Proper documentation is an integral part of
the life cycle of an and to keep track of various export transactions. At
every stage of setting up and running an export business, you will have to
apply, submit, obtain and produce documents along the way. Be it the of
your export firm, your documents, the or the , you
will have to wade your way through a pile of documents and paperwork to become
export ready. Also don’t forget the documents that you will need every time you
accept an .
Export Documents
Checklist Required for Export Shipment from India
[As per Foreign Trade Policy (FTP) 2015 -
2020]
- Bill of
Lading/Airway Bill/Lorry Receipt/Railway Receipt/Postal Receipt
- cum (As
per the Central Board of Excise and Customs circular under the Customs
Act, separate commercial invoice and packing list are acceptable)
- /Bill of
Export/Postal Bill of Export
However, besides these core three, there
are other documents which you may require when you try to ship overseas. A list
of the paperwork typically required in the export of goods is given below.
Do note that this is only an indicative
list, and not intended to be exhaustive in any form; the exact documentation
list for your export business will depend on the requirements of the Government
of India at that time and that of the importing country, along with any
specific requirements of your export sector.
Other list of Documents
required for Export Shipping
Proforma Invoice
The first document in many cases is
the , which will give the buyer all the information about the item, price,
delivery, payment terms. etc.
Export Order/Purchase
Order
Based on the proforma invoice, the buyer
places the order with the exporter, specifying their details and requirements,
in the Purchase Order.
Commercial Invoice
Once the goods are packed and ready,
a is prepared by the exporter. The Customs counter signs it before
shipping.
Packing List
If there is more than one item to be
exported, a , listing the various items to be shipped, is mandatory.
Certificate of Origin
is a notarized affidavit which
indicates the place where the goods are manufactured.
Bill of exchange
This is an internal document that is
generated by the exporter which instructs the importer to pay the amount
mentioned to the exporter or the payee bank.
Letter of Credit
Although not part of the shipment process,
a Letter of Credit is an essential document generated while honoring a buyer’s
purchase order. It is issued by the buyer’s bank, which undertakes to pay you
at the end of the credit period on behalf of the buyer. However, it is not
required if the payment is in the Documents against Payments or Documents
against Acceptance modes.
Inspection/Quality check
An importer can insist on inspection or QC
of the goods before shipping to verify quality, as well as check for adherence
to proper packing parameters. The exporter should keep documents verifying such
fulfilment ready as well.
Phyto-sanitary
certificates and fumigation certificates
These certificates can be demanded by the
buyer, with the latter being even mandatory in many countries. These quality
and goodness tests may be named differently depending on product and country
but are essentially documentation proving adherence to international quality
standards and norms. Exporters must ensure they keep them ready before
packaging.
Marine Insurance policy
This is required for the safety coverage of
the goods dispatched overseas.
Mate’s Receipt
With documents like a Certificate of
Origin, Commercial Invoice, Export Order, Letter of credit, Certificate of
Inspection and in place, the cargo can enter the port and onto the
dock. Once the shipment is loaded into the carrier, the Mate’s Receipt is
issued, confirming the same.
Airway Bill (AWB) or Bill
of Lading (BL)
An AWB or BL is issued by the carrier of
the goods, after the hands over the Mate’s Receipt to the carrier, who
analyzes it against the cargo. A master AWB/BL is issued by the main carrier of
the goods while a House AWB/BL is issued by the freight forwarder.
FEMA Declaration for
exporters
This declaration is a requirement which
replaced the erstwhile Self-Declaration Form, as per the notifications of
Indian customs, indicating the exporter’s agreement to adhere to the tenets of
the , 1999.
Shipping bill
This is a customs document which can be
generated from the dedicated portal electronically. All exporters must submit
this document to acquire clearance for exports from Customs.
Let Export Order
The is issued by the customs officer
after the completion of export. It is proof that all export customs formalities
have been completed.
Export General Manifest
The is filed by the shipping carrier
after the movement of goods from the exporting country. It is registered with
Customs and initiates the generation of the official proof of export, i.e. the export
promotion copy of the shipping bill.
Also Read:
Export Documentation
Process
Once the Manifest is generated and the
goods have left the shipping port, the the three mandatory documents
listed above to you, after getting them . You need to share these
documents with your bank, which will then scrutinize and forward them to the
importer’s bank. The authorized dealers of the Reserve Bank of India are also
involved in this exercise. Simultaneously the exporter also must provide proof
of export to the Central Excise authorities, based on the Customs endorsements.
On the receipt of payment from the importer, and is issued by the
exporter’s banker, with which the export transaction concludes.
Important Note: It must be noted
that these document requirements may evolve over time, depending on the
prevalent statutes and amendments therein. Exporters can voice their opinion on
these requirements to their respective and FIEO, who in turn can pass on
these comments and feedback to the government. Although there are no
established routes for exporters to ‘influence’ or reach out to policymakers,
these bodies act as a bridge between the government and exporters, and their
lines of communication are always open for exporters in the form of websites
and physical offices.
Pro-Tips
- Avail the
services of a custom house agent who can ensure that your customs
and is carried out smoothly and speedily.
- Do a
thorough check of information you declare to avoid mismatch of information
between different documents.
- To avoid
confusion and delay, ensure you know ahead of time which products are to
be scrutinized and by which agencies.
Warnings
- Be careful
while selecting the product category on your documents – incorrect
selection can cause a problem with customs clearance, and while availing
export benefits as well.
- Ensure the
availability of accepted quality certifications if there is a risk of
stringent quality checks and/or scrutiny.
- Maintain
constant coordination with your C&F agent to avoid delay of clearance
in ports. Delays can turn out to be expensive for you.
