IT IS ESSENTIAL TO UNDERSTAND THE VARIOUS PROCEDURE INVOLVED WHILE EXPORTING APPAREL.

Pre-Shipment Procedure
O On receiving the requisition & purchase

order from merchant, documentation department issue an invoice O Two invoice are prepared 1. Commercial invoice 2. Custom invoice

Invoice
O Commercial invoice:

contains all the information required for th e preparation of other documents. It is actually a sellers bill of merchandise, giving details about the goods shipped. O Customs invoice: It is an invoice made on specified format for the Custom official to determine the value etc as prescribed by the authorities of the importing country

Cont
O Packing list is prepared
O GSP certificate is prepared if exported to

EU or countries mentioned in the GSP list O Inspection certificate is issued O Certificate of origin is also issued if required

Documents given to customs for reference

1. Custom invoice
2. Packing list 3. IEC certificate 4. Purchase order or L/C ,if required 5. Custom annexure O On receipt of above document, customs

will issue clearance certificate.

Following documents sent to buying house

O Invoice
O Packing list O GSP O Certificate or origin O Wearing apparel sheet O A copy of FCR/airway bill/ Bill of lading

Cont..
O Buyer collects the consignment from

destination port by showing the following documents 1. Invoice 2. Packing List 3. Bill of Lading/FCR/Airway Bill O On shipment of goods, exporter will send the documents to the importers bank

Post-Shipment Procedure
O A foreign buyer will make payment in two

ways: 1. TT 2. Letter of credit O If the payment term are confirmed L/C then the payment will be made by the foreign bank on receiving the following documents 1. Invoice 2. Packing list 3. B/L 4. Any other required by the buyer or the country of import

Payment term
O The payment term can be :
1. 2.

3.
4. 5.

At sight Within 15 days from Bill of Lading or Airway Bill date. Within 30 days from Bill of Lading or Airway Bill date. Within 60 days from Bill of Lading or Airway Bill date. Within 90 days from Bill of Lading or Airway Bill date.

Payment term cont

O After shipment, exporter sends the

documents to the buyers bank for payment O On confirmation, the buyer bank will make payment in the foreign currency O Transaction will be bank to bank

Cont.
O The domestic branch will credit the

exporters account, in Indian rupees. O If payment is through wire transfer, the payment will be made as per terms agreed by the exporter (i.e. 50% advance & remaining 50% on shipment)