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EXPORT PROCEDURE AND DOCUMENTATION
PROJECT REPORT ON
EXPORT PROCEDURE & DOCUMENTATION
PREPARED BY
DIVYA THINGALAYA
UNDER THE GUIDANCE OF
Prof. MONA
SUBMITTED TO UNIVERSITY OF MUMBAI IN
PARTIAL FULFILLMENT OF THE REQUIREMENT
FOR THE AWARD OF
BACHELOR OF MANAGEMENT STUDIES
ACADEMIC YEAR
2006 - 2007
1

EXPORT PROCEDURE AND DOCUMENTATION

DECLARATION

I Miss. DIVYA THINGALAYA OF VIVEK COLLEGE OF COMMERCE OF T.Y.B.M.S. (SEMESTER VI)

HEREBY DECLARE THAT I HAVE COMPLETED THIS PROJECT ON EXPORT PROCEDURE AND

DOCUMENTATION IN THE ACADEMIC YEAR2006 – 2007. THE INFORMATION SUBMITTED IS TRUE

AND ORIGINAL TO THE BEST OF MY KNOWLEDGE.

DATE:
PLACE:
(SIGNATURE OF THE STUDENT)
2
EXPORT PROCEDURE AND DOCUMENTATION
CERTIFICATE

I Prof. MONA HERBY CERTIFY THAT Miss. DIVYA THINGALAYA OF VIVEK COLLEGE OF

COMMERCE OF T.Y.B.M.S. (SEMESTER VI) HAS COMPLETED THE PROJECT ON EXPORT

PROCEDURE AND DOCUMENTATION IN THE ACADEMIC YEAR 2006 – 2007. THE INFORMATION

SUBMITTED IS TRUE, ORIGINAL AND AUTHENTIC TO THE BEST OF MY KNOWLEDGE.

SIGNATURE OF PRINCIPLE
SIGNATURE OF PROJECT
GUIDE
(Prof. SUNIL .B. MANTRI)
(Prof. MONA)
3

EXPORT PROCEDURE AND DOCUMENTATION

ACKNOWLEDGEMENT
IT IS THE MATTER OF GREAT PLEASURE AND PRIVILEGE TO BE ABLE TO PRESENT

THIS PROJECT REPORT ON EXPORT PROCEDURE AND DOCUMENTATION.

 THE COMPILATION OF THE PROJECT IS A MILESTONE IN THE LIFE OF THE

MANAGEMENT STUDENT AND ITS EXECUTION IS INEVITABLE WITH THE CO-OPERATION OF

THE PROJECT GUIDE. I WISH TO RECORD A DEEP SENSE OF RESPECT AND GRATITUDE TO MY

PROJECT GUIDE, PROF. MONA FOR HER ENCOURAGEMENT TO COURSE OF MY WORK. IT IS

DUE TO THE ENDURING EFFORT AND GUIDANCE OF MY GUIDE THAT ULTIMATELY MADE IT

SUCCESS.

I ALSO TAKE THIS OPPORTUNITY TO EXPRESS MY DEEP REGARDS AND GRATITUDE

TO THE PRINCIPLE SUNIL MANTRI AND WOULD LIKE TO THANK THE HEAD OF B.M.S.

DEPARTMENT PROF. MONA WHO GAVE US GUIDANCE TO TAKE UP AND PURSUE THE PROJECT

I CANNOT JUST CONDONE THE VALUABLE OPPORTUNITY GIVE TO ME BY THE

UNIVERSITY OF MUMBAI FOR COMPILING AND SUBMITTING THE PROJECT, WHICH I FEEL IS AN

OPPORTUNITY TO EXPRESS MY VIEWS ABOUT EXPORT PROCEDURE AND DOCUMENTATION.

I ACKNOWLEDGE MY INDEBTNESS TO VARIOUS AUTHORS FOR
MAKING USE OF VALUABLE INFORMATION LIBERALLY.

IT IS MY PROUD PRIVILEGE TO EXPRESS MY DEEP SENSE OF APPRECIATION AND

GRATITUDE TO MY PARENTS AND FRIENDS FOR THEIR SUPPORT AND CO-OPERATION IN THE

COURSE OF THE PROJECT EITHER DIRECTLY OR INDIRECTLY INVOLVED IN TIME WITH THEIR

VALUABLE CONTRIBUTION.
4
EXPORT PROCEDURE AND DOCUMENTATION
INDEX
SERIAL
NUMBER
CONTENT
 PAGE
NUMBE
R
1
INTRODUCTION
6
2
HOW TO SET UP AN EXPORT ORGANISATION
8
3
HOW ONE BEGINS TO DO EXPORT
14
4
EXPORT SALES & CONTRACT TERMS &
CONGITIONS
17
5
TERMS OF SHIPMENT – INCOTERMS.
20
6
PROCESSING AN EXPORT ORDER
27
7
FINANCIAL RISK INVOLVED IN FOREIGN
TRADE
28
8
EXPORT DOCUMENTS
29
9
OCTROI
53
10
QUALITY
CONTROL
&
PRE-SHIPMENT
INSPECTION
57
11
SHIPPING ANG CUSTOMS FORMALITIES
60
12
SALES TAXES EXEMPTION PROCEDURE
66
13
METHODS
OF
RECEIVING
PAYMENTS
AGAINST EXPORTS
68
14
THE LETTER OF CREDIT
71
15
PREPARATION
AND
SUBMISSION

OF DOCUMENTS FOR BANK

NEGOTIATIONOR PURCHASE
88
16
SHIPMENT THROUGH COURIERS
91
17
CUSTOM PROCEDURE FOR EXPORT UNDER
EDI SYSTEM
92
18
THE ECGC COVER.
112
INTRODUCTION
India has a mission to capture 2% of the global share of trade by 20010, up from the

present level of less than 1%. Export is one of the lucrative business activities in India. The

government also provides various promotional schemes to the exporters for

5

EXPORT PROCEDURE AND DOCUMENTATION

earning valuable foreign exchange for the country and for meeting their requirements for importing

modern technology and essential inputs. Besides, the income from export business is also exempted

to the specified extent under the Income Tax Act, 1961, Refund of Central Excise and Custom Duty

on export is also made under the Duty Drawback Scheme of the Government. There is no Sales Tax

on products meant for exports.

Exports can be of goods which can be moved physically from one country to

another or can be of service rendered. Detailed list of services are given in the Foreign Trade Policy

covering more than 160 items e.g. Insurance, Hospital, Postal and Telecommunication etc.
TWO CLASSES OF EXPORTS:

Physical Exports: If the goods physically go out of the country or services are

rendered outside the country then it is called as physical export. Deemed Exports: Where the goods

do not go out of the country physically they can be termed as deemed exports. This will be subject to

certain conditions as prescribed by the DGFT. Under Deemed Exports, the goods may be supplied
to the manufacturer exporter who ultimately export a finished product of which this supply forms a

part and ultimately go out of the country. E.g. Supply of fabrics to the garment exporter who exports

the garments made out of the said fabric.

The government may announce from time to time the types of supplies that may be

considered as deemed export. The Foreign Trade Policy gives the list of supplies considered under

the Deemed Export Category. The policies and procedures are different for Physical Exports and

Deemed Exports as also the benefits available. In a nutshell, Deemed Exports do not enjoy all the

benefits that are available under Physical Export. The Foreign Trade defines exports as taking out of

India any goods by land, sea, air. Although the act does not term them as “Physical Exports”, we

have to put phrase to distinguish it from “Deemed Exports” which is sales in India but considered as

exports for limited purpose.

6

EXPORT PROCEDURE AND DOCUMENTATION

TYPES OF EXPORTERS:
Exporters can be basically classified into two groups
•

Manufacturer Exporter: As the exporter has the facility to manufacturer the

product he intends to export and hence he exports the products manufactured by
him.
•

Merchant Exporter: An exporter who does not have the facility to manufacture
an item. But, he procures the same from other manufacturers or from the market
and exports the same.

An exporter can be both a manufacturer exporter as well as a merchant exporter, he

can export product manufactured by him or he can export items bought from the market.

Once it is decided to export, it is mandatory on your part to follow certain

procedures, rules and regulations as prescribed by various regulatory authorities such as DGFT,

RBI, and Customs. These procedures, rules and regulations are laid down in the Exim Policy 2004-

09, Exchange Control Manual, Customs Act etc. Accordingly Export documents are required to be

prepared keeping in view of the requirement of the foreign buyers and our regulatory authorities.
HOW TO SET UP AN EXPORT ORGANISATION
The proper selection of organization depends upon
•

Ability to raise finance.

•

Capacity to bear the risk.

7
EXPORT PROCEDURE AND DOCUMENTATION
•

Desire to exercise control over the business.

•

Nature of regulatory framework applicable to anyone

If the size of the business is small, it would be advantageous to form a sole

proprietary business organization. It can be set up easily without much expenses and legal

formalities. It is subjected to only few governmental regulations. However, the biggest disadvantage

of sole proprietorship business is limited ability to raise funds which restricts the growth. Besides the

owner has unlimited personal liabilities. In order to avoid this disadvantage, it is advisable to form a

partnership firm.

The partnership firm can also be set up with ease and economy. Business can take

benefit of the varied experiences and expertise of the partners. The liability of the partners though

joint and several, is practically distributed amongst the various partners, despite the fact that the

personal liability of the partner is unlimited. The major disadvantage of partnership firm of business

organization is that conflict amongst the partners is a potential threat to the business. It will not be

out of place to mention here that partnership firms are governed by the Indian Partnership Act, 1932

and, therefore they should be formed within the parameters laid down by the Act. Company is

another form of business organization, which has the advantage of distinct legal identity and limited

liability to the share holders.

It can be a private limited company or a public limited company. A private limited

can be formed by just two persons subscribing to its share capital. However, the number of its

shareholders cannot exceed 50, public cannot be invited to subscribe to its capital and the members

right to transfer their share is restricted. On the other hand, a pubic limited company has a minimum

of seven members. There is no limit on the maximum number of its members. It can invite the public

to subscribe to its capital and permit the transfer of share. A public limited company offers enormous

potential for growth because of access to substantial funds. The liquidity of investment is high

because of easiness of transfer of shares. However its formation can be recommended only when

the size of the business is large. For small business, a sole proprietary concern or a partnership firm

will be the most suitable form of business organization. In case it is

8

EXPORT PROCEDURE AND DOCUMENTATION

decided to incorporate a private limited company, the same is to be registered with the
Registrar of Companies.
CHOOSING APPROPRIATE MODE OF OPERATIONS:
You can choose any of the following modes of operations
•

Merchant Exporter i.e. buying the goods from the market or from the
manufacturer and then selling it to foreign buyers.
•

Manufacturer Exporter i.e. manufacturing the goods yourself for export.

•

Sales Agent / Commission Agent / Indenting Agent i.e. acting on behalf of the
seller and charging the Commission.
•

Buying Agent i.e. acting on behalf of the buyer and charging Commission.
•

Service provider i.e. providing service from India to another country.

NAMING THE BUSINESS

Whatever form of business organization has been finally decided, naming the

business is an essential task for every exporter. The name and style should be soft, attractive, short

and meaningful. Open a current account in the name of the organisation in whose name you intend

to export. It is advisable to open the account with a bank which is authorised to deal in Foreign

Exchange.
STRUCTURE OF AN EXPORT ORGANISATION
•

marketing manager for generating sales

•

Commercial manager for looking activities of the execution of the orders.

•

staff personnel for carrying out the day-to-day activities namely

9

EXPORT PROCEDURE AND DOCUMENTATION

o

Preparation of pre - shipment documents.

o

Co-ordinating with clearing agents on the progress of the shipment to be

made.
o

Co-ordinating with the ware house\C. excise department regarding

packing and clearance of the goods for export.
o

Preparation of post shipment documents foe banks.

o

Follow-up with the bank on dispatch of documents, receipt of payment,

availment of bank loans etc.
•

To look into the requirement of licenses, claiming of export benefits fiiling of documents with the

Government Authorities in Discharge of Export Obligations, if any, filing of returns to the various

Government Agencies which are mandatory, prepare and keep an information bank of various

transaction of the company, their domestic as well as international competitors.

•

An office boy for doing leg work.

•
A clearing and forwarding agent to handle the documents and the goods in the
customs premises\ in the ports of lading.

Depending upon the size of the business the numbers of personnel under each

category may increase. For example if a company is transacting substantial volume of business in

more than one product. Then it is necessary to have marketing manager for each product so that the

person can concentrate on a particular trade to enhance the business.

REGISTRATION WITH REGIONAL LICENCING AUTHORITIES OBTAINING
IMPORTER EXPORTER CODE (IEC) NUMBER.
The Customs Authorities will now allow the exporter to export or import goods into or
from India unless he holds a valid IEC number. Before applying for IEC number it is
10

EXPORT PROCEDURE AND DOCUMENTATION

In the export quotation, indicate the Port of destination (discharge) after the acronym
DES, for example DES Helsinki and DES Stockholm.
DEQ {+ the named port of destination
Delivered Ex Quay: The delivery of goods to the Quay (the port) at the destination at

buyers expense. Seller is responsible for the importer customs clearance, payment of customs

duties and taxes, at the buyers end. Buyer assumes the cargo insurance and other costs and risks.

In the export quotation, indicate the Port of destination (discharge) after the acronym DEQ, for

example DEQ Libreville and DEQ Maputo.

DDU {+ the named point of destination}
Delivered Duty Unpaid: The delivery of goods and the cargo insurance to the final point

at destination, which is often the project site or buyers premises at sellers expense. Buyer assumes

the import customs clearance, payment of customs duties and taxes. The seller may opt not to

insure the goods at his/her own risks.

In the export quotation, indicate the point of destination (discharge) after the acronym
DDU for example DDU La Paz and DDU N’djamena.
DDP {+ the named point of destination)
Delivered Duty Paid: The seller is responsible for most of the expenses which include

the cargo insurance, import custom clearance, and payment of custom duties, and taxes at the

buyers end, and the delivery of goods to the final point of destination, which is often the project site

or buyers premise. The seller may opt not to insure the goods at his/her own risk. In the export

quotation, indicate the point of destination (discharge) after the acronym DDP, for example DDP

Bujumbura and DDP Mbabane.

25

EXPORT PROCEDURE AND DOCUMENTATION

“E”-term,”F”-term, “C”-term &”D”-term: Incoterms 2000, like its immediate
predecessor, groups the term in four categories denoted by the first letter in the three-
letter abbreviation.
•

Under the “E”-TERM (EXW), the seller only makes the goods available to the
buyer at the seller’s own premises. It is the only one of that category.
•

Under the“F”- TERM (FCA, FAS, &FOB), the seller is called upon to deliver
the goods to a carrier appointed by the buyer.
•

Under the“C”-TERM (CFR, CIF, CPT, & CIP), the seller has to contract for carriage, but without

assuming the risk of loss or damage to the goods or additional cost due to events occurring after

shipment or discharge.
•

Under the“D ”-TER M (DAF, DEQ, DES, DDU & DDP), the seller has to bear
all costs and risks needed to bring the goods to the place of destination.

All terms list the seller’s and buyer’s obligations. The respective obligations of both parties have

been grouped under up to 10 headings where each heading on the seller’s side “mirrors” the

equivalent position of the buyer. Examples are Delivery, Transfer of risks, and Division of costs. This

layout helps the user to compare the parties respective obligations under each Incoterms.
26

EXPORT PROCEDURE AND DOCUMENTATION

PROCESSING AN EXPORT ORDER
You should not be happy merely on receiving an export order. You should first
acknowledge the export order, and then proceed to examine carefully in respect of
•

Items
•

Specification
•

Pre-shipment inspection
•

Payment conditions
•
Special packaging
•

Labeling and marketing requirements

•

Shipment and delivery date

•

Marine insurance
•

Documentation requirement etc.

If you are satisfied on these aspects, a formal confirmation should be sent to the buyer, otherwise

clarification should be sought from the buyer before confirming the order. After confirmation of the

export order immediate steps should be taken for procurement/manufacture of the export goods. In

the meanwhile, you should proceed to enter into a formal export contract with the overseas buyer.
Before accepting any order necessary homework should have been done as to availability of the

production capacity, raw material e.t.c. It would be in the interest of the exporter to look into entering

into forward contract to safeguard against exchange rate fluctuations. Ensure that the mode of

payment is also agreed upon. In case of shipment against letter of credit, the buyer should be

advised to open the credit well in advance before effecting the shipment.
27

EXPORT PROCEDURE AND DOCUMENTATION

FINANCIAL RISKS INVOLVED IN FOREIGN TRADE
As an exporter while selling goods abroad, you encounter various types of risks. The
major risks which you have to undergo are as follows:
•

Credit Risk
•

Currency Risk
•

Carriage Risk
•

Country Risk
You can protect yourself against the above risks by initiating appropriate steps.
Credit Risks :

You can cover your credit risk against the foreign buyer by insisting upon opening a letter of credit in

your favour. Alternatively one can avail of the facility offered by various credit risk agencies. A

specific insurance cover can also be obtained from ECGC (Exports Credit & Guarantee Corporation)

to cover your country risk besides covering credit risk.

Currency Risks:
As regards covering the currency risk, due to the exchange rate fluctuations, you can
request your banker to book a forward contract.
Carriage Risk:
The carriage risk can be covered by taking an appropriate general insurance policy.
Country Risk:
28

EXPORT PROCEDURE AND DOCUMENTATION

ECGC provides cover to protect the exporter from country risks. A detailed procedure how an

exporter can get himself protected against the above risks are given in separate chapters later.
EXPORT DOCUMENTS
Any export shipment involved various documents required by various authorities such as customs,

excise, RBI, Inspection and according depending upon the requirements, there are categorized into

2 categories, namely commercial documents and regulatory documents.

A. Commercial Documents. : - Commercial documents are required for effecting
physical transfer of goods and their title from the exporter to the importer and the realisation of

export sale proceeds. Out of the 16 commercial documents in the export documentation framework

as many as 14 have been standardised and aligned to one another. These are proforma invoice,

commercial invoice, packing list, shipping instructions, intimation for inspection, certificate, of

inspection of quality control, insurance declaration, certificate' of insurance, mate's receipt, bill of

lading or combined transport document, application for certificate origin, certificate of origin,

shipment advice and letter to the bank for collection or negotiation of documents. However, shipping

order and bill of exchange could not be brought within the fold of the Aligned Documentation

System,
1.
Commercial Invoice:Commercial invoice is an important and basic export
document. It is also known as a 'Document of Contents' as it contains all the information required for

the preparation of other documents. It is actually a seller's bill of merchandise. It is prepared by the

exporter after the execution of export order giving details about the goods shipped. It is essential that

the invoice is prepared in the name of the buyer or the consignee mentioned in the letter of credit. It

is a prima facie evidence of the contract of sale or purchase and therefore, must be prepared strictly

in accordance with the contract of sale.

29

EXPORT PROCEDURE AND DOCUMENTATION

Contents of Commercial Invoice
•

Name and address of the exporter.

•

Name and address of the consignee.

•

Name and the number of Vessel or Flight.

•

Name of the port of loading.

•

Name of the port of discharge and final destination.

•

Invoice number and date.

•

Exporter's reference number.

•

Buyer's reference number and date.

•

Name of the country of origin of goods.

•

Name of the country of final destination.

•

Terms of delivery and payment.

•

Marks and container number.

•

Number and packing description.

•

Description of goods giving details of quantity, rate and total amount in terms of
internationally accepted price quotation.
•

Signature of the exporter with date.

Significance of Commercial Invoice
•

It is the basic document useful in preparation of various other shipping

documents.
•

It is used in various export formalities such as quality and pre-Shipment

inspection excise and customs procedures etc.
•

It is also useful in negotiation of documents for collection and claim of incentives.

•

It is useful for accounting purposes to both exporters as well as importers.

2
Inspection Certificate: The certificate is issued by the inspection authority such as
the export inspection agency. This certificate states that the goods have been
inspected before shipment, and that they confirm to accepted quality standards.
30

EXPORT PROCEDURE AND DOCUMENTATION

OCTROI
•

Octroi is the local tax levied by the civic body on goods entering into
the city.
•

There are three procedures for clearing goods which are meant for
export.
Procedure – 1, Export on payment of octroi duty and refund thereof after export.
Pay the Octroi Duty and apply for refund of payment made.
•

At Octroi Naka form B is issued with cash receipt for the payment of
Octroi Duty.
•

Cargo is moved to the docks.

•

At Docks Octroi officer prepares form”C” & endorses Shipping Bill

Number & Steamers Name.
53

EXPORT PROCEDURE AND DOCUMENTATION

•

After shipment exporter prepares claim for refund by submitting

following documents:
•

Covering Letter for refund of Octroi Duty.

•

Original receipt of Octroi paid.

•

Original Form B.
•

Original Form C.
•

Invoice under which material was bought to the city.

•

Export invoice issued by the Exporter to the importer.

•
Export Promotion Copy of Shipping Bill – Photo Copy.
•

Bill of Lading or Airway Bill Copy.

Procedure – 2, Export without payment of Octroi Duty.
N Form Procedure.
•

Prepares form N in 3 copies.

•

Checking of documents Shipping Bill, Carting order, Export Invoice by Octroi

officer.
•

Under taking that the goods will be cleared for export within 7 days of clearance
through the octroi post.
•

Octroi officer at Docks will endorse the Shipping Bill number & shipment details
on N form.
•

Proof of export... N form with above endorsement to be submitted to the Head

Office along with copies of Shipping Bill, Bill of Lading, Export Invoice etc.
Procedure – 3
54

EXPORT PROCEDURE AND DOCUMENTATION

E.P (Export Promotion) Form.
•

Registration form + IEC / RCMC + CA Certificate.

•

Number will be allotted.

•

Fees Rs. 500/-

Documents Checked
•

Factory Challan cum Invoice.

•

ARE –1.
•

EP forms 3 copies.
•

Export order.
•

Shipping Bill.
Consignment Removed to Docks and Proof of Export to be given to Octroi authorities.
•
Company’s Letter.
•

EP form.
•

EPC.
•

Bill of Lading.
•

Shipping Bill – 6.25% Service charge.

Bar Coding
•

It is the endeavor of the Central Government to enhance export competitiveness

of the Indian products and to promote substantially.
•

Compliance with prevalent international best practices.

•

National task force has recommended adoption of Bar-coding for all Indian
products within five years.
55

EXPORT PROCEDURE AND DOCUMENTATION

•

Bar coding, using International Symbologies / Numbering, systems would enable timely and

accurate capture of product information and its communication across the supply chain ahead of

physical product flow.

•

With the ultimate objective of facilitating adoption of Bar-coding for all products using international

Symbologies numbering systems all exports of finished and packaged items meant for retail sale

shall incorporate barcodes from a date to be notified by DGFT.

MARINE INSURANCE POLICY

Goods in transit are subject to risks of loss of goods arising due to fire on the ship, perils of sea,

thefts etc. Marine insurance protects losses incidental to voyages and in land transportation.

Marine Insurance Policy is one of the most important document used as collateral security because

it protects the interest of all those who have insurable interest at the time of loss. The exporter is

bound to insure the goods in case of CIF quotation, but he can also insure the goods in case of FOB

contract, at the request of the importer, but the premium payment will be made by the exporter.
There are different types of policies such as
Specific Policy:This policy is taken to cover different risks for a single shipment. For a
regular exporter, this policy is not advisable as he will have to take a separate policy
every time the shipment is made, so this policy is taken when exports are infrequent.
Floating Policy: This policy is taken to cover all shipments for same months. There is no
time limit, but there is a limit on the value of goods and once this value is crossed by
several shipments, then it has to be renewed.
Open Policy: This policy remains in force until cancelled by either party, i.e. insurance
company or the exporter.
56

EXPORT PROCEDURE AND DOCUMENTATION

Open Cover Policy: This policy is generally issued for 12 months period, for all

shipments to one or all destinations. The open cover may specify the maximum value of

consignment that may be sent pre ship and if the value exceeded, the insurance company must be

informed by the exporter.

Insurance Premium: Differs upon from product to product and a number of other such
factors, such as, distance of voyage, type and condition of packing etc. Premium for air
consignments are lower as compared to consignments by sea.
The Insurance Policy Normally Contains:
•

The name and address of the insurance company.

•

The name of the assured & description of the risk covered.

•

A description of the consignment.

•
The sum insured & the date of issue.
•

The place where claims are payable together with details of the agent to whom
claims may be directed & Any other details, as applicable.
QUALITY CONTROL AND PRE-SHIPMENT INSPECTION
Realizing the importance of the need for supplying quality goods as per international standards, the

Government of India has introduced Compulsory Quality Control and Pre- Shipment Inspection of

over 1050 items of export under Export (Quality Control and Pre- Shipment Inspection) Act 1963.
At present, the export items that are subjected to compulsory inspection includes food
and agricultural products, chemicals, engineering, coir, jute and footwear.
Compulsory Pre-shipment Inspection:
•

Foods and Agriculture & Fishery

•

Mineral & Ore

•

Organic & Inorganic Chemicals

57

EXPORT PROCEDURE AND DOCUMENTATION

•

Refectories & Rubber Products

•

Foot wear & Foot wear components

•

Ceramic Products & Pesticides

•

Light Eng. Products

•

Steel ;Products
•

Jute Products
•

Coir & Coir Products

Exemption from compulsory Pre-shipment Inspection:
•

Status Houses
•

Certification by Units IPQC – approved by EIA

•

EUO/EPZ/SEZ
•

Firm Letter from the overseas buyer

•

Specified products such as Eng/Fishery average level of Rs.1.5 Cr.for the last
three years no compliant.

For monitoring pre-shipment inspection, Govt. of India has set up Export Inspection Council (EIO)

The EIC has set up 5 Export Inspection Agencies (EIA). The EIAs are located one each at Mumbai,

Calcutta, Cochin, Delhi and Chennai. The EIAs has a network of nearly 60 offices throughout India.

Each EIA is given certain jurisdiction for inspection purpose. For instance, EIA of Mumbai has

jurisdiction over Maharashtra, Gujarat and Goa.

Systems of Quality Control:
For the purpose of pre-shipment inspection, EIC has recognized three systems of
inspection namely:
•

Self-Certification
•

In-Process Quality Control

•

Consignment Wise Inspection

58

EXPORT PROCEDURE AND DOCUMENTATION

Self-Certification:

Under this system, complete authority is given to the manufacturing units to certify their own

products and issue certificates for export. The manufacturing units which have been recognized

under this scheme have to pay a nominal yearly fee at the rate of 0.1% of FOB price subject to

minimum of Rs.2,500/- and maximum of Rs.1 lakh in a year to the concerned EIA
In-Process Quality Control (IPQC):

In this system, companies/units adjusted as having adequate level of quality control right from raw

material stage to the finished product stage including packaging are eligible to get the inspection

certificate on a formal request by the exporter. Over 800 units all over India are operating under this

system.

Constant vigil and surveillance are kept on units approved under IPQC and self- certification system.

Units approved under the above two systems are often known as “Export worth Units”, because of

their consistent standards of quality.

Consignment wise Inspection:
Under this system, each and every consignment is subject to compulsory inspection.
The
exporter has to follow a certain procedure such as:
•

He has to make an application to Export Inspection Agency with certain

documents.
•

The EIA deputes inspector to inspect the goods

•

After the inspection, the goods are repacked with EIA seal
•

The inspector then makes a report to Deputy Director of EIA

•

The Dy. Director of EIA then issues Inspection Certificate in triplicate if the
inspection report is favorable
•

If the inspection report is not favorable, a rejection note is issued.

59

100 Marks Project on Export Procedure and

Documentation Finally Completed(2)
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jshripatileft a comment
<a title="View 100 Marks Project on Export Procedure and Documentation Finally
Completed(2) on Scribd" href="100 Marks Project on Export Procedure and Documentation
Finally Completed(2)" style="margin: 12px auto 6px auto; font-family: Helvetica,Arial,Sans-
serif; font-style: normal; font-variant: normal; font-weight: normal; font-size: 14px; line-height:
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08 / 20 / 2010
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shivamdevalleft a comment
excellent project report on export documentation
02 / 04 / 2010
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This document has made it onto the Rising list!
01 / 24 / 2010

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