DOCUMENTS RELATED TO GOODS
INVOICE:
An invoice is the seller's bill for merchandise and contains particulars of goods, such as the price per unit at a particular location, quantity, total value, packing specifications, terms of sale, identification marks of the package , bill of lading number, name and address of the importer, destination, name of the ship etc.
Some importing countries insist that the importing country's consul located in the exporter's country should sign the invoice. Such invoices are known as consular invoice. The main purpose of a consular invoice is to enable the authorities of the importing country to collect accurate information about the volume, value, quality, grade, sources etc. of its imports for purpose of assessing importing duties and also for statistical purposes.
PACKING NOTE AND LIST:
The difference between packing note and a packing list is that the packing note refers to the particular of the contents of an individual pack, while the packing list is a consolidated statement of the contents of a number of cases or packs.
A packing note should include the packing note number, the date of packing, the name and address of the exporter, the name and address of the importer, the order number, date, shipment per bi, bill of lading number and date, marking numbers, case number to which the note relates, and
the contents of the goods is in terms of quantity and weight. Apart from the details in the packing note, a packing list should also include item wise details.
CERTIFICATE OF ORGIN:
A certificate of orgin, as the name indicates, is a certificate, which specifies the country of the production of the goods. This certificate has also to be produced before clearance of goods and assessment of duty, for the customs law of the country may require this procedure. This certificate is a necessity where a country offers a preferential tariff to India and the former is to ensure that only goods of Indian Orgin benefit from such concession, A certificate of orgin may be required when goods of a particular type from certain countries are banned. A certificate of orgin from may be obtained from chambers of commerce, export promotion councils, and various trade associations that have been authorized by the government.
DOCUMENTS RELATED TO SHIPMENT
MATE RECEIPT
A mate receipt is a receipt issued by the commanding office of the ship when the cargo is loaded on the ship, and contains information about the vessel, berth, date of shipment, description of packages, marks and numbers, condition of the cargo at that time of receipt on board the ship, etc. The mate receipt is first handed over to the Port Trust authorities so that all the port dues may be paid by the exporter,. After paying all the port dues, the merchant or the gent may collect the mate receipt from the Port Trust authorities. The bill of lading prepared by the shipping agent after the mate receipt has been obtained.
SHIPPING BILL
The shipping bill is the main document on the basis of which the customs' permission for export is given. The shipping bill contains particulars of the goods exported, the name of the vessel, master or agents, flag, the port at which goods are to be discharges, the country of final destination, the exporter's name and address, etc. It also contains details of the packages and the goods, such as
number and description, marks and numbers, quantity details about each case, real value as defined in the sea customs act, whether Indian or foreign merchandise to be re-exported, total number of packages, their total weight and value etc.
CART TICKET
A cart ticket also known as a cart chit, vehicle and gate pass, is prepared by the exporter and includes details of the export in terms of the shipper's name, the number of packages, the shipping bill number, the port of destination and the number of the vehicle carrying the cargo. The driver of the vehicle carrying cargo should posses the ticket, and when the vehicle is brought at the port gate, it should be presented to the gate warden/inspector along with other shipping and port documents.
The inspector, after satisfying himself that the vehicle is carrying the cargo as mentioned in the document, allows it to pass the gate.
CERTIFICATE OF MEASUREMENT
Freight is charged either on the basis of weight or measurement. When it is charged on the basis of weight, the weight declared by the shipper may be accepted. However, a certificate of measurement from the Indian chamber of commerce or other approved organization may be obtained by the shipper and given to the shipping company for calculation of the necessary freight.
BILL OF LADING
The Bill of lading is a document where in the shipping company gives its official receipts of the goods shipped in its vessel and at the same time contracts to carry them to the port of destination. It is also an document of title to the goods, and, as such, is freely transferable by endorsement and delivery.
A Bill of lading serves three main purposes: I) As a document of title to the goods' (ii) as a receipt from the shipping company'; and (iii) as a contract for the transportation of goods.
Each shipping company has its own Bill of lading. The exporter prepares the Bill of lading in the forms obtained from the shipping company or from the agents of the shipping company. The information contained in the Bill of lading includes the date and place of shipment; the name of the consignor; the name and destination of the vessel; the description, quality and destination of the goods; the marks and numbers; the invoice number and the date of export; the gross eight and net weight; the number of packages; the amount of freight etc.
A Bill of lading acknowledging receipt of the goods apparently in good order and condition and without any qualification is termed as a clean bill of lading; if a Bill of lading is qualified with certain adverse remarks such as 'goods insufficiency packed in accordance with carriage of goods by Sea Act", "one box damaged" etc., it is termed as a claused bill of lading.
AIRWAY BILL
An airway bill, also called an air consignment note, is a receipt issued by an airline for the carriage of goods. As each shipping company has its own bill of lading, each has its own airway bill.
QUALITY CONTROL AND PRESHIPMENT INSPECTION
The Export Inspection council of India was set up by the Government f India in 1963 to provide for sound development of export trade through quality control and pre-shipment inspection. The Export Inspection Council (EIC) consists of a Chairman appointed by the Central Government, 4 ex-officio members and 15 members nominated by the central government. The main functions of EIC as assigned are:
To advise the central government regarding measures for enforcement of quality control and inspection in relation to commodities intended for export and to draw up programmes therefore; and
To arrange pre-shipment inspection of notified commodities for export.
About 1000items under produce group heads of engineering, chemicals and allied products, food and agricultural products, jute and jute products, footwear and footwear components, cashew, fish and fishery products etc., are under the compulsory quality control inspection system.
MACHINERY FOR QUALITY CONTROL AND INSPECTION:
(i) EXPORT INSPECTION AGENCIES:
For carrying out pre-shipment inspection of export of goods, the Government of India has established five export inspection agencies one each at Calcutta, chennai, cochin, Delhi and Mumbai under the technical and administrative control of the EIC. The Export inspection agencies have also
been authorized by the Government of India to issue certificates of orgin under the Generalised system of preferences for export to Japan, EEC, USA and East European countries.
(ii) OTHER AGENCIES:
Government has also recognized 21 private inspection agencies and 7 government inspection agencies to supplement the work of quality certification.
SYSTEM OF INSPECTION
Three Systems of inspection are in operation at present. They are:
1. Consignment-Wise Inspection 2. In-Process Quality Control 3. Self-certification
CONSIGNMENT-WISE INSPECTION:
Under consignment-wise inspection, each export consignment is inspected and tested by the recognized inspection agencies by selecting consignments on the basis of statistical sampling plan to satisfy conformity of the products with the prescribed standards.
IN-PROCESS QUALITY CONTROL:
This system lays emphasis on the responsibility of the manufacturers and processors in ensuring consistent quality during each stage of production by exercising checks on materials, components through inspecting process centers. The certifications of inspection in favour of units approved under the scheme are issued by the Export Inspecting Agencies. These units are under the supervision by the Export Inspection Agencies through random spot checks.
SELF-CERTIFICATION:
Under this system the manufacturing units fulfilling the norms prescribed are authorized by the central government to issue certificates of inspection under the Act by themselves for their products.
DOCEMENTS RELATED TO PAYMENTS
LETTER OF CREDIT
A letter of credit is a document containing the guarantee of a bank to honour drafts drawn on it by an exporter, under certain conditions and up to certain amounts , provided that the beneficiary fulfils the stipulated conditions
BILL OF EXCHANGE
The Negotiable Instruments Act, 1881, defines the bill of exchange as " an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or t the order of, a certain person or the bearer of the instrument.
There are five important parties to a bill of exchange:
The Drawer The Drawee The Payee The Endorser
The Endorsee TRUST RECEIPT
If the importer is unable to take possession of the documents by making the payment on the D/P bill following the arrival of the goods, the merchandise may be made available to the importer by his bank under an arrangement whereby the importer signs a trust receipt. Under this arrangement, the importer is allowed to sell the imported goods by acting as an agent of the bank;
but the retains ownership of the merchandise until the importer has made full settlement; all sums received from the sale of goods must be credited to the bank until such settlement is made.
LETTER OF HYPOTHECATION
A letter of hypothecation is a document signed by the customer conveying to a banker the full ownership of goods at the port of destination in respect of which he has made advances either by loan or by acceptance or negotiation of bills of exchange. This is a sort of blanket document which shipping documents, demands from a customer to give him recourse son the bills and control of the documents.
BANK CERTIFICATE OF PAYMENT
It is a certificate issued by the negotiating bank of the exporter certifying that the bill covering particular consignments has been negotiated and that the proceeds received in accordance with exchange control regulation in the approved manner.