Export documentation

Unit-3
Dr. Nancy Singh
Ph.D. NET
Documentation

• Documentation requirements vary considerably by country, commodity, and situations.

• Documents outline the sale, shipment, and responsibilities of each party so that the full
transaction is understood and complete without delay or additional costs.
Factors to consider

• Country of origin and destination

• Mode of transportation - truck, rail, ocean, air, pipeline
• Commodity - agriculture, livestock, safety/security
• Size-value, volume, weight, dimensions
• Parties to the transaction-shipper, agents, brokers, banks
Export documentation
Export documentation

• Principal documents are

• The Commercial Invoice,
• Packing List
• Bill of Lading/Air Waybill
• Certificate of Inspection/Quality control
• Certificate of origin
• Bill of Exchange and
• Shipment Advice
• Insurance Certificate
EXPORT DOCUMENTATION
• The auxiliary documents are
• Proforma Invoice
• Intimation for inspection
• Shipping instructions
• Insurance Declaration
• Application for certificate of origin.
• Letter to bank of collection/negotiation of documents
Documents are prepared by the exporter

• Invoices - Commercial,
• Pro –forma
• Packing Lists - Dock, or Warehouse, Receipt
• Certificates of Origin (C/O
• Declaration of Dangerous Goods (DGD)
• Certificates - Insurance, Inspection
• Miscellaneous: Letters of Credit
• Pro-forma invoice -It is an invoice sent to the buyer before the shipment, giving the buyer a
chance to review the sale terms (quantity of goods, value, specifications) .
• It also allows the buyer to work with their bank to arrange any financial process for payment. For
example, to open a Documentary Credit (Letter of Credit), the buyer’s bank will use the pro-forma
invoice as a source of information.
• Commercial Invoice- It is prepared by the exporter and addressed to the importer, and is one of
the first documents prepared when a transaction has been agreed upon. The invoice identifies
the buyer and seller, describes the goods sold and all terms of sale, including Inco Terms, payment
terms, relevant bank information, shipping details, etc. An invoice may be itemized to show cost
of goods, freight, and insurance, or other special handling.
Commercial documents
Commercial documents
Commercial documents
Commercial documents
Transport documents
Financial documents
Incoterms

• The terms of shipment and delivery, as well as the transfer of risk, between the buyer and seller.
• Incoterms were created by the International Chamber of Commerce (ICC) and are a registered
trademark of the ICC.
• Incoterms are reviewed every 10 years to keep pace with the ever-changing world of international
trade.
• The latest edition is the Incoterms 2010 which are effective January 1, 2011
• These Consists of following terms
• CIP - CARRIAGE AND INSURANCE PAID TO
• CPT - CARRIAGE PAID TO
• DAT - DELIVERED AT TERMINAL
• FCA - FREE CARRIER
• EXW - EX WORKS
• All of these terms need to specify the port or destination
Import documentation
• Invoice
• Packing list
• Bill of Lading
• License/Authorizations in original
• Letter of Credit/Bank Draft/wherever necessary
• Insurance document
• Import license
• Industrial License
• Test report in case of chemicals
• Catalogue, Technical write up, Literature in case of machineries, spares or chemicals as may be applicable
• Certificate of Origin
• No Commission declaration
Significance of Documentation

• Documents are important for the following reasons—

• (a) as an evidence of shipment and title of goods
• (b) for obtaining payment
• (c) to provide a specific and complete description of the goods
• (d) for assessment of correct Duty for clearance purpose
• (e) for obtaining Export Licenses
• (f) for obtaining export finance
• (g) for completing Pre-shipment Inspection
Commercial / Regulatory Documents

• Commercial set of documents are mainly used for Commerce. In other words these are
documents normally exchanged between buyer and seller.
• Regulatory documents are required in dealing with various regulatory authorities such as
customs, RBI, Excise, Licensing authorities Inspection and other Export Promotion bodies for
availing incentives etc.
Commercial / Regulatory Documents