Export Communication

(1)

Export co-ordination,

communication and

documentation

Presented by:

As

Ashi

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Om

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Kr

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Bo

Bose

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Pr

Pram

amod

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Ku

Kuma

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Ni

Niti

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(2)

  11   PREPARE A PREPARE A BUSINESS PLAN BUSINESS PLAN LEGAL LEGAL REGISTRATION REGISTRATION MARKET MARKET IDENTIFICATION

IDENTIFICATION NEED ANALYSISNEED ANALYSIS

CHANNEL CHANNEL SELECTION SELECTION AGENTS, DSTBTR, AGENTS, DSTBTR, WHLSLRS, SALES REP., WHLSLRS, SALES REP., END USERS END USERS IDENTIFYING THE IDENTIFYING THE POTENTIAL POTENTIAL BUYERS/ BUYERS/ CUSTOMERS CUSTOMERS TRADE FAIRS/ TRADE FAIRS/ INTERNET/ INTERNET/ PERSONAL PERSONAL VISITS/ VISITS/ Going for Going for procuring procuring orders orders

(3)

1

1 AGREEING UPONAGREEING UPON PRICING, FRIEGHT PRICING, FRIEGHT CHARGES,DOCUMENT, CHARGES,DOCUMENT, CURRENCY, DELIVERY CURRENCY, DELIVERY ETC. ETC. SIGNING OF SIGNING OF CONTRACT CONTRACT DETERMINING THE DETERMINING THE PAYMENT TERMS PAYMENT TERMS ADVANCE ADVANCE PAYMENT/ LETTER PAYMENT/ LETTER OF CREDIT/ OPEN OF CREDIT/ OPEN ACCOUNT ACCOUNT IMPORTER IMPORTER SENDS SENDS PURCHASE PURCHASE ORDER ORDER PRODUCTION

PRODUCTION PACKAGINGPACKAGING_WAREHOUSE_WAREHOUSE

CERTIFICATE OF CERTIFICATE OF QUALITY QUALITY CONTROL CONTROL

(4)

PREPARE PREPARE MARINE, AIR, MARINE, AIR, AND DOCS AND DOCS INSURANCE INSURANCE CERTIFICATE, CERTIFICATE, SHIPPING BILL, SHIPPING BILL, MATE·S RECEIPT, MATE·S RECEIPT, BILLS BILLS TRANSPORTATION TRANSPORTATION MARITIME/ AIR/ MARITIME/ AIR/ ROAD ROAD SUBMISSION OF SUBMISSION OF DOCS

DOCS TO TO BANKSBANKS

BANK SENDS DOCS TO BANK SENDS DOCS TO IMPORTER·S BANK IMPORTER·S BANK .PAYMENT IS DONE .PAYMENT IS DONE

(5)

Affecting factors:



Political

barriers

barriers to

to trade

trade



Scope of exporter's selected product



Demand stability



Preferential treatment to products from

developing countries

(6)



Market penetration by competitive countries .



Distance of potential market



Transportation



(7)



Tariff and non-tariff barriers



Distribution infrastructure

and size

and size of demand

of demand



Life span of market and product requirements



(8)

S

S_ources_ources _from_from_where_where_we_we _can_can_collect_collect information:

information:



Export Promotion Council,



Federation of Indian export

Federation of Indian export Organization (FIEO)

Organization (FIEO)



IIFT



Indian Trade Promotion Organization (ITPO)



Indian Embassies



Abroad & Foreign Embassies in India



Import Promotion Institutions Abroad



Overseas Chambers of Commerce and Industries



Various Directories, Journals, Market Survey

Reports

(9)



Primary research



(10)

S

S_tep1:-_tep1:-

_{Gather information on a broad}

_{Gather information on a broad range of}

_{range of}

markets.

It includes:



The demand for

The demand for product/servi

product/servi

ce.



The size of the potential

The size of the potential audience.

audience.



Whether the target audience can afford product.



What the regulatory issues are that impact on

exports of product.



Ease of acce

Ease of access to this marke

ss to this market ²

t ²

proxi

proximity

mity

/frei

ght.



Are there appropriate distribution channels for

product/ service

(11)

S

_tep2:-

_R

_{esearch a selection of markets}

in depth.

Questions to be answered in

Questions to be answered in relation to

relation to

the product



 Similar productsSimilar products



 UniquenessUniqueness



 Way Way of of obtaining obtaining and and useuse



(12)



Other source of import ,if any



Local availability



Competitor



Market size



(13)



Existing prices



Mark-ups at different

Mark-ups at different distribution levels

distribution levels



Import regulations, duties or taxes, including

compliance and professional registrations



Translation of promotional material and

packaging.

(14)

Addresses

Addresses sources

sources

:-

:-



Friends and relatives



International Trade Fairs and Exhibitions



International Yellow Pages



Private Indian Publications Directories



International Trade Directories/

Journals/periodicals

(15)



Monthly bulletins e.g. Indian Trade Journal.



Embassies, Consultants



ITPO, IIFT



Contacting authorized dealers in foreign exchange

with whom exporter is maintaining bank account.



Advertising in newspapers having overseas

editions and other foreign newspapers and

magazines etc.

(16)



Corresponding and sending brochures and

product literature .



Foreign markets and establishing personal rapport

.



Buyer-seller

Buyer-seller meets

meets

and

and meeting

meeting the m

the m

embers

of foreign delegation.



International trade fairs and seminars.



(17)



Exports through Export Consortia



Export through Canalizing Agencies



Export through Other Established Merchant



Exporters or Export Houses, or Trading Houses



Direct Exports



(18)



Necessary to get the best business deal

F

_{or successful negotiation:}



Avoid conflict



controversy and criticism



(19)



Coherence, creativity, compromise,



concessions, commonality, consensus,



commitment and compensation in business

negotiations.



(20)

Acknowledg

Acknowledgement of ement of orderorder Ex

Examamininatatioionn :- :-Items,

Items, specificaspecification,pre-shipmtion,pre-shipment ent inspection,pinspection,paymentayment conditions, special packaging, labeling and marketing conditions, special packaging, labeling and marketing requirements,shi

requirements,shipment and pment and delivery date, marinedelivery date, marine insurance, documentation requirement etc.

insurance, documentation requirement etc.



(21)

3)

Entering into an Export contract

To avoid disputes, it is necessary to enter into an

To avoid disputes, it is necessary to enter into an exportexport contract with the overseas buyer. For this purpose,

contract with the overseas buyer. For this purpose, export

export

contract should be carefully drafted incorporating contract should be carefully drafted incorporating comprehensive but in precise terms

(22)



 Product, Standards and SpecificationsProduct, Standards and Specifications



 QuantityQuantity



 InspectionInspection



 Total Value of ContractTotal Value of Contract



 Terms of DeliveryTerms of Delivery



 Taxes, Duties and ChargesTaxes, Duties and Charges



 Period of Delivery/ShipmentPeriod of Delivery/Shipment



 Packing, Labeling and MarkingPacking, Labeling and Marking



 Terms of PaymenTerms of Payment--t-- AmouAmount/Mnt/Mode & ode & CurreCurrencyncy



 Discounts and CommissionsDiscounts and Commissions



 Licenses and PermitsLicenses and Permits



 InsuranceInsurance



 Documentary RequirementsDocumentary Requirements



 GuaranteeGuarantee



 Excuse for Non-performance of contractExcuse for Non-performance of contract



 RemediesRemedies



(23)



Important tool for promoting sales and facing

international competition should be realistically



Determining factors



 Range offeredRange offered 

 deliveries and continuity in supplydeliveries and continuity in supply 

 after-sales serviceafter-sales service 

 Product differentiationProduct differentiation 

 brand imagebrand image 

(24)



Ex-Works:

'Ex-works' means that your

responsibility

is to make goo

is to make goods available to the

ds available to the

buyer at works or factory. The full cost and risk

involved in bringing the goods from this place

to the desired destination will be borne by the

buyer. This term thus represents the

buyer. This term thus represents the minimum

minimum

obligation for you.



 FFree onree on RRail (ail (FOFOR)R) && FFree on Truck (ree on Truck (FOFOTT))::

These terms

are used when the goods are to be carried by

rail, but they are also used for road transport.

Your obligations are fulfilled when the goo

ds

are delivered to the carrier.

(25)



 FF

ree Alongside Ship (

FF

AS

)

:

Once the goods

have been placed alongside the ship, your

obligations are fulfilled and the buyer no

tified.



 FF

ree on Board (

FOFO

B

)

:

responsibility ends the

moment the contracted goods are placed on

board the ship, free of cost to the buyer at a

port of shipment named in the s

ales contract.



 CC

ost and

FF

reight (

CC

&

FF

)

:

You must on your

own risk and not as an agent of

own risk and not as an agent of the buyer,

the buyer,

contract for the carriage of the goods to the port

of destination named in the sale contract a

nd

pay the freight.

(26)



 FF

reight or

CC

arriage Paid (D

CC

P

))

:

While C&F is

used for goods which are to be carried by sea, the

term "DCP" is used for land transport only,

including national and international transport by

road, rail and inland waterways.



EXS/EX-Ship:

This is an arrival contract and

means that you make the goods available to the

buyer in the ship at the named port

of destination

as per sales contract.



Delivered at

FF

rontier (DA

FF)) 

(27)

(28)



 PP

rocuring / Manufacturing Goods



Compulsory Quality Control &

PP

re

shipment Inspection

:-shipment Inspection :-

Under the Export(QualityUnder the Export(Quality Control and Inspection) Act,

Control and Inspection) Act, 19631963_{, about}_{, about} 10001000

commodities commodities



 Foreign buyers lay down their own standards /Foreign buyers lay down their own standards /

specificati

specificationsons and maand may insiy insist upon st upon inspection inspection by theiby theirr own nominated agencies

(29)

Communic

a

tio

n w

ith

vendors

(30)

exporter

Obtains sample as per buyer Obtains sample as per buyer

specifica

specification from tion from vendorvendor Sends

Sends sample sample for for approval approval of buof buyeryer After approval puts order in bulk After approval puts order in bulk

with vendor with vendor

Obtains material in bulk from vendor Obtains material in bulk from vendor

shipment shipment

(31)



Inspection as per sta

ndardized pre-shipme

ndardized pre-shipment

nt

export documents ,inspection fee and

following documents should sent be the

nearest office of

nearest office of the respective Export

the respective Export

Inspection Agency

:-Inspection Agency :-

_{Copy of the Commercial}_{Copy of the Commercial} Invoice, Copy of letter of

Invoice, Copy of letter of credit, Details of packingcredit, Details of packing specifica

(32)



If all criteria are satisfied the inspection

agency issues, generally within four days of

receipt of intimation for inspection, the

necessary certificate of inspection to the

exporter in the prescribed Performa in five

copies

.. (

(11stst _{original for custom, 2}_{original for custom, 2}ndnd _{copy for foreign buyer,}_{copy for foreign buyer,} ₃₃rdrd

copy for exporter's use , 4

copy for exporter's use , 4thth _{copy for data bank and}_{copy for data bank and fifth}_fifth

copy is retained with agency) copy is retained with agency)

(33)



In proc

In process quali

ess quali

ty contr

ty control(IPQ

ol(IPQC):-

C):-

e.g.

engineering goods chemicals etc.



ISO

90009000

:-

TQ

TQM

M

co

conc

ncep

ept

t



 a)series of standardsa)series of standards

b) quality assurance :-how a company can establish b) quality assurance :-how a company can establish document and maintain an effective and economic document and maintain an effective and economic quality control system

(34)



Labeling:-

Differ country to country, indicate Differ country to country, indicate quality,quality, quantity and method of use .

quantity and method of use .



Packaging:-

Vital Vital role role in in getting getting product product in in toptop condition in market and representation of product condition in market and representation of product .I.I should

should have have conformity conformity with the with the instructions iinstructions issuedssued by the importer.

(35)

Export documentation

(36)



Commercial documents



Auxiliary documents



Regulatory documents



(37)

A

)

C

ommercial Documents



 For effecting physical transfer of goods and their For effecting physical transfer of goods and their titletitle

from the exporter to the importer. from the exporter to the importer.



 Example Example :-:- Performa Performa invoice, invoice, commercial commercial invoice,invoice,

packing list, shipping instructions, intimation for packing list, shipping instructions, intimation for inspection, certifica

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

receipt, bill of lading or combined transport document,combined transport document, applicati

application for certificate origin, on for certificate origin, certificate of origin,certificate of origin, shipment advice and letter to the bank for collection or shipment advice and letter to the bank for collection or negotiation of documents

(38)

1

₎

CC

_{ommercial invo}

_{ice or}

_{Document of content}

Information

related with

with

exporter

exporter ,consignee,

,consignee,

vessel,

port of

port of loading

loading and discharge,

and discharge, origin of

origin of

goods, Terms of delivery and payment, Marks

and

and container

container number,

number,

Signature

Signature of the

of the

exporter with date etc.

2

2 )

)

Inspection

CC

_{ertificate :}

_{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.

(39)

3)

Marine insurance policies: -

There are

different types of policies such as Specific

Policy, Floating Policy, Open Policy, Open

Cover Policy.

4)

Consular invoice:

Consular invoice is a

document required m

ainly by the

ainly by the Latin

Latin

American countries like Kenya, Uganda etc«..

5) Certificate of Origin

:-5) Certificate of Origin :-

chamber of commerce

logo, exporter and co

logo, exporter and consignee address, number

nsignee address, number

of Vessel of Flight, number of

of Vessel of Flight, number of containers and

containers and

packages etc.

(40)



 Name and logo of chamber of commerce.Name and logo of chamber of commerce. 

 Name and address of the exporter.Name and address of the exporter. 

 Name and address of the Name and address of the consignee.consignee. 

 Name and the number of Vessel of FlightName and the number of Vessel of Flight 

 Name of the port of loading.Name of the port of loading. 

 Name of the port of discharge and place of delivery.Name of the port of discharge and place of delivery. 

 Marks and container number.Marks and container number. 

 Packing and container Packing and container description.description. 

 Total number of containers and Total number of containers and packages.packages. 

 Description of goods in terms of Description of goods in terms of quantity.quantity. 

 Signature and initials of the concerned officer of theSignature and initials of the concerned officer of the

issuing authority. issuing authority.



(41)

6

6₎₎

Bill of Lading: :

The bill of lading is a document

issued by the shipping company or its agent

acknowledging the receipt of goods on board

the vessel, and undertaking to deliver the

goods in the like order and condition as

received, to the consignee or his order,

provided the freight and other charges as

specified in the bill have been duly paid.

7) Airway Bill

:-7) Airway Bill :-

An airway bill, also called an air

consignment note, is a receipt issued by an

airline for the carriage of goods.

(42)

B

BIILLL L OOF F LLAADDIINNGG AAIIRRWWAAY Y BBIILLLL



 Name and logo of theName and logo of the

shipping line.



 Name and address of theName and address of the

shipper.



 Name and the number ofName and the number of

vessel.



 Name of the port of loading.Name of the port of loading.



 Name of the port Name of the port of dischargeof discharge

and place of

and place of delivery.delivery.



 Marks and container number.Marks and container number.



 Packing and containerPacking and container

description.



 Total number of containersTotal number of containers

and package



 Name of the airport ofName of the airport of

departure and destination.



 The names and addresses ofThe names and addresses of

the consignor, consignee and

the first carrier.



 Marks and container number.Marks and container number.



 Packing and containerPacking and container

description.



 Total number of containersTotal number of containers

and packages.



 Description of goods in termsDescription of goods in terms

of quantity

(43)

8

₎

_{Shipment Advice to Importer}

9

9 )

)

P P

_{acking List}

10)

Bill

Bill of

of Exchange:

Exchange:

The instrument is used in

receiving payment from the importer. The

importer may prefer Bill of Exchange to LC a

s

it does not involve blocking of funds. A

bill of

exchange is drawn by the exporter on the

importer, to make payment on demand at sight

or after a certain period of

(44)

P

_erf

_erform

_orm

_{a Inv}

_{a Invoi}

_oice

_ce

_:-

_{Name and address of}

exporter and importer, mode of

transportation,

transportation, port

port of

of

discharge

discharge and

and final

final

destination,

destination, port

port of di

of discharge

scharge and

and

final

destination, Buyer's and exporter·s reference

number, packing description etc

(45)

 

Intimation for Inspection

Intimation for Inspection:: FoFor r _{the pre shipment inspection, necessary}_{the pre shipment inspection, necessary}

application is given to the concerned inspection agency for conducting the application is given to the concerned inspection agency for conducting the inspection

inspection

and issue of certificate thereof and issue of certificate thereof..

 

Declaration of Insurance:

Declaration of Insurance: Where the insurance is to be covered by theWhere the insurance is to be covered by the exporter, the shipper has to give details of the shipment to the insurance exporter, the shipper has to give details of the shipment to the insurance company for necessary insurance cover.

company for necessary insurance cover. The detailed declaration will cover:The detailed declaration will cover:



Name Name of the shof the shippeipper \r \ expoexporter.rter.



Name & address of buyer.Name & address of buyer.



Details of goods such as packages, quantity, value in currencyDetails of goods such as packages, quantity, value in currency



 Name Name of the of the VesseVessel \l \ AircrAircraft.aft.



(46)



 Application of theApplication of the CCertificateertificate OOriginrigin: An application: An application

has to be made to the

has to be made to the concerned authority withconcerned authority with required documents.

required documents.



 Mate'sMate's RRececeieipptt : A: A receipt issued by the Commandingreceipt issued by the Commanding

officer of the ship when the cargo is

officer of the ship when the cargo is loaded, anloaded, an evidence that goods are loaded in

evidence that goods are loaded in the vessel.the vessel.



 Shipping order:Shipping order: Issued by Issued by the Shipping/Conferencethe Shipping/Conference

Line intimating the exporter about the

Line intimating the exporter about the reservation ofreservation of space for shipment of cargo.

(47)



 Shipping Instructions:Shipping Instructions: when the documents are towhen the documents are to

sent for customs clearance, necessary instructions are sent for customs clearance, necessary instructions are to be given. It includes name of vessel, goods carried, to be given. It includes name of vessel, goods carried, freight amount, instructions for obtaining bill of

freight amount, instructions for obtaining bill of landing.

landing.



 Bank letter for negotiation of documents:Bank letter for negotiation of documents: AA sseet t ooff

instruction for the bank as to how to negotiate or instruction for the bank as to how to negotiate or

discount or collection for forwarding the same to the discount or collection for forwarding the same to the customer and also for realization of

(48)



 Name and address of the buyer. Name and address of the buyer. 

 Details of various documents being sent and the number of Details of various documents being sent and the number of

the copies thereof. the copies thereof.



 Name and address of the buyer¶s bank if available. Name and address of the buyer¶s bank if available. 

 If the bill amount is to be adjusted against any forwardIf the bill amount is to be adjusted against any forward

exchange

exchange covercover..



 In case of credit bill who has to In case of credit bill who has to bear the interest, either bear the interest, either

exporter or if the same is to be collected from the buyer. exporter or if the same is to be collected from the buyer.



 Instructions in case non-acceptance/non-payment by theInstructions in case non-acceptance/non-payment by the

buyer. buyer.

(49)

(50)



 Pre-shipment export documentsPre-shipment export documents 

 Prescribed by the different government departments andPrescribed by the different government departments and

bodies . bodies .



 export inspection, foreign exchange regulation, export tradeexport inspection, foreign exchange regulation, export trade

control, customs, etc. control, customs, etc.



 Shipping Bill:Shipping Bill: The main customs document grantsThe main customs document grants

permission for the shipment of goods. permission for the shipment of goods.



 A.A.RR.E..E. 11 form (form (CCentral exciseentral excise)):: In case goods meant forIn case goods meant for

export are cleared directly from the premises of a export are cleared directly from the premises of a manufacturer, the exporter can avail the

manufacturer, the exporter can avail the facility offacility of exemption from payment of terminal excise duty exemption from payment of terminal excise duty

(51)



 ExchangeExchange CConontrtrolol ddececlalararatitionon FFormorm :: AAllll eexxppoorrtteerrss

m

muusstt ddeeccllaarree ththee ddeettaaiillss ooff sshhiippmmeenntt ffoorr momonniittoorriinngg bbyy th

thee RReesseervrvee BBaannkk ooff IInnddiiaa..



 ExpExportort AppAppliclicatioation:n: TThhee aapppplliiccaattiioonn ttoo bbee mmaaddee ttoo tthhee

cu

custstomomss ofoffificicialalss bebefoforere shshipipmementnt ofof gogoodods.s.



 VVehehiciclele TiTickcketet/ / CCaarrtt TTiicckkeett//GGaattee PPaassss eettcc :: BBeeffoorree tthhee

g

gooooddss aarree bbeeiinngg ttaakkeenn iinnssiiddee tthhee ppoorrtt foforr llooaaddiinngg,, n

neecceessssaaryry ppeermrmiissssiioonn hhaass toto bebe oobbttaaiinneedd ffoorr mmoovviinngg tthhee ve

(52)



 BankBank CCerertitifificacatete ofof RRealization:ealization: ThThee nenegogotitiatatiningg babanknk

d

deeccllaarreess tthhee ffoobb vvaalluuee ooff exexppoorrttss aanndd ffoorr tthhee ddaattee ooff re

(53)



 BBllaacckk LLiisstt CCertificate:ertificate: TThhiiss iiss rreeqquuiirreedd bbyy cceerrttaaiinn

n

naattiioonnss wwhhoo hahavvee ssttrraaiinneedd ppoolliittiiccaall aanndd eeccoonnoommiiccaall re

relalatitiononss wwitithh thethe ssoo ccaalllleedd ´B´Blalacckk LLisistetedd CoCouunntrtriiesesµ.µ.



 LanguageLanguage CCertificate:ertificate: IImmppoorrtteerrss iinn tthhee EEuurrooppeeaann

C Coommmmuunniittyy rreeqquuiirree aa llaanngguuaaggee cceerrttiiffiiccaattee aalloonngg wwiitthh t thhee GGSSPP cceerrttiiffiiccaattee iinn rreessppeecctt ooff hhaannddlloooomm ccoottttoonn fabrics. fabrics. 

 FFrereigightht PaPaymymenentt CCerertitifificcatatee :: ThThee shshiippppiningg ccomomppananyy

m

maayy iissssuuee aa seseppaarraattee cceerrttiiffiiccaattee ffoorr ppaayymmeenntt ooff tthhee f

frreeiigghhtt cchhaarrggeess iinnsstteeaadd ofof ddeeccllaarriinngg oonn tthhee mmaaiinn trans

(54)



 Insurance PremiumInsurance Premium CCertificate:ertificate: This is the certificateThis is the certificate

issued by the Insurance Company as issued by the Insurance Company as

acknowledgement of the amount of premium paid for acknowledgement of the amount of premium paid for the insurance cover.

the insurance cover.



 CCombinedombined CCertificate ofertificate of OOrigin andrigin and VValue:alue: ThisThis

certificate should contain special details as to the

certificate should contain special details as to the originorigin and value of goods, which are

and value of goods, which are useful for determininguseful for determining import duty.

import duty.



 CCustoms Invoice:ustoms Invoice: This is required by the countries likeThis is required by the countries like

Canada, USA for imposing preferential tariff rates. Canada, USA for imposing preferential tariff rates.

(55)



 Legalized Invoice:Legalized Invoice: It is just like It is just like consular invoice,consular invoice,

which requires certification from Consulate or which requires certification from Consulate or authorized mission, stationed in the

(56)



 OOccttrrooii iiss tthhee llooccaall ttaaxx lleevviieedd bbyy tthhee cciivviicc bbooddyy oonn ggooooddss

e

(57)



Goods in transit are subject to risks of loss of

goods arising due to fire on

the ship, perils of

sea, thefts etc.

sea, thefts etc. Marine insurance protects losses

Marine insurance protects losses

incidental to voyages and in land

transportation.



Marine Insurance Policy i

Marine Insurance Policy is one of

s one of the most

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.

(58)



 Specific Policy:Specific Policy: This policy is taken to cover different risks This policy is taken to cover different risks for afor a

single shipment. single shipment.



 FFloating Policy:loating Policy: This policy is taken to cover all shThis policy is taken to cover all shipments foripments for

same months &there is no time limit. same months &there is no time limit.



 OOpen Policy :pen Policy : This policy remains in force until cancelled byThis policy remains in force until cancelled by

either party, i.e. insurance company or

either party, i.e. insurance company or the exporter.the exporter.



 OOpenpen CCover Policy :over Policy : This policy is generally issued forThis policy is generally issued for 1122

months period, for all shipments to one or all destin

(59)



 Insurance Premium:Insurance Premium: Differs upon from product toDiffers upon from product to

product and a number of other such factors, such as, product and a number of other such factors, such as, distance of voyage, type and condition of packing . distance of voyage, type and condition of packing .

Th

Th _{e Insurance Policy Normally Contains:}_{e Insurance Policy Normally Contains:}



 The name and address of the insurance company.The name and address of the insurance company. 

 The name of the assured & description of the riskThe name of the assured & description of the risk

covered. covered.



 A description of A description of the consignment.the consignment. 

 The sum insured & the date of issue.The sum insured & the date of issue. 

 The place where claims are payable together withThe place where claims are payable together with

details of the agent to whom claims may be directed & details of the agent to whom claims may be directed & any other details,

any other details, as applicable.as applicable.

 

(60)



 TThhee sshhiippmmeenntt ooff eexxppoorrtt ccaarrggoo hhaass ttoo bbee mmaaddee wwiitthh pprriioorr

p

peerrmmiissssiioonn ooff,, aanndd uunnddeerr tthhee cclloossee ssuuppeerrvviissiioonn ooff tthhee cu

custostomm autauthorhoritiities.es.



 GGooooddss ccaannnnoott bbee llooaaddeedd oonn bbooaarrdd tthhee sshhiipp uunnlleessss aa ffoorrmmaall

pe

permrmisissisionon isis obobtatainineded..



 PPeerrmmiissssiioonn iiss ggiivveenn wwhheenn ssaattiissffiieedd tthhaatt tthhee ggooooddss bbeeiinngg

e

exxppoorrtteedd aarree ofof tthhee ssaammee ttyyppee aanndd vvaalluuee aass hhaavvee bbeeeenn d

(61)

  SuSubmbmisissisionon ofof DoDocucumementnts:s: ThThee eexxppoorrtteerr oorr hhiiss aaggeenntt s suubbmmiittss tthhee nneecceessssaarryy ddooccuummeennttss aalloonngg wwiitthh tthhee s shhiippppiinngg bbiillll ttoo ththee CCuussttoomm HHoouussee..   VVeerriiffiiccaattiioonn ooff DDooccuummeennttss :: TThhee CCuussttoommss ApAppprraaiisseerr v veerriiffiieess tthhee ddooccuummeennttss aanndd aapppprraaiisseess ththee vvaalluuee ooff goods. goods. 

 CCarting arting OOrder:rder: CCaarrttiinngg OOrrddeerr iiss tthhee ppeerrmmiissssiioonn ttoo

b

(62)



 Storing the Goods in the Sheds :Storing the Goods in the Sheds : After securing theAfter securing the carting order, the goods are moved inside the docks & carting order, the goods are moved inside the docks & stored in the sheds at the docks.

stored in the sheds at the docks.



 Examination of Goods:Examination of Goods: The customs examinerThe customs examiner

examines the cargo and records his report on the examines the cargo and records his report on the duplicate copy of the shipping bill.

duplicate copy of the shipping bill.



 Loading Goods:Loading Goods: The goods are then loaded on theThe goods are then loaded on the

ship. ship.



 OObtaining Bill of Landing:btaining Bill of Landing: The shipping companyThe shipping company

issues bill of landing. issues bill of landing.

(63)



PaPaymymenentt inin adadvavancncee



DocDocumumententaryary BilBillsls



LeLetttterer ofof CrCreediditt



OpOpenen AcAccocoununtt



(64)



 DDooeessnn··tt ininvvoollvvee aannyy rriisskk ooff babadd ddeebbttss..



 PProrovvidideded enentitirere amamouounntt hhaass bbeeeenn rerecceieivevedd inin aaddvavanncce.e.



 AAtt ttiimmeess,, aa cecerrttaaiinn ppeerr cceenntt iiss ppaaiidd iinn aaddvvaannccee,, ssaayy 550%0%

a

(65)

  TThhee eexxppoorrtteerr aaggrreeeess ttoo ssuubbmmiitt tthhee ddooccuummeennttss ttoo hhiiss b baannkk aalloonngg wwiitthh tthhee bbiillll ooff eexxcchhaannggee

.

  TThheerere aarere ttwwoo mmaaiinn tytyppeess ooff ddooccuummeennttaarryy bbiillllss::  DoDocucumementntss agaagaininstst PaPaymymenentt  DoDocucumementntss agaagaininstst AcAcceceptptanancece

(66)



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(67)



 IItt iiss ´´aann uunnddeerrttaakkiinngg bbyy imimppoorrtteerr··ss bbaannkk ssttaattiinngg tthhaatt

p

paayymmeenntt wwiillll bebe mmaaddee ttoo tthhee eexxppoorrtteerr iiff tthhee rreeqquuiirreedd d

dococuummeentntss araree ppreresesentnteedd toto ththee bbanankk.µ.µ



(68)



 ApplicantApplicant:: TThhee bbuuyyeerr oorr iimmppoorrtteerr 

 IssIssuinuingg BanBank:k: ImpImportorter·er·ss bankbank 

 BeneficiaryBeneficiary:: TThhee ppaarrttyy ttoo wwhhoomm tthhee LL//CC iiss aaddddrreesssseedd 

 AdvAdvisinisingg BanBank:k: IssuIssuiningg babanknk·s·s brbrananchch inin ththee exexpoportrterer·s·s cocoununtrtryy 

 CCoonnffiirrmmiinngg BBaannkk:: BBaannkk iinn bbeenneeffiicciiaarryy··ss ccoouunnttrryy wwhhiicchh

gu

guararantanteeeess thethe crcrededitit



 NNegegototiaiatitionon BaBanknk:: TThhee bbaannkk ttoo wwhhoomm tthhee bbeenneeffiicciiaarryy pprreesseenntt

h

hiiss ddooccuummeennttss foforr PPaayymmeentnt



 RReeiimmbbuurrssiningg BBaannkk:: tthhee bbaannkk wwhhiicchh wwiillll rereiimmbbuurrssee tthhee

neg

(69)



Name and address of the bank

establishing the

letter of credit



Letter of credit number and date



The letter of credit is irrevocable



Date of expiry and place of

expiry



Value of the credit



Product details to be s

hipped



Port of loading and discharge



Mode of transport



(70)



Details of goods to be

Details of goods to be exported like description

exported like description

of the product, quantity, unit rate.



Type of packing



Documents to be submitted to the bank upon

shipment.



Tolerance level for both quantity and

Tolerance level for both quantity and value.

value.



(71)



 OO

pen a/c:

The money is transferred in account

provided by exporter to buyer.



 CC

ounter trade:

a system of providing goods in

lieu of goods. Instead of

lieu of goods. Instead of providing with money

providing with money

they would provide with some other

they would provide with some other material,

material,

product or services.

(72)

(73)

(74)

(75)

(76)

(77)

(78)

(79)

(80)

(81)

(82)

(83)



 Special thanks to: Mr. VishalSpecial thanks to: Mr. Vishal

Sn. Merch

Sn. Merchandiseandiser; Radhnikr; Radhnik ExpoExports , Gurgaorts , Gurgaonn



 A guide on export, policy, procedure and documentationA guide on export, policy, procedure and documentation

By: M.I. Mahajan By: M.I. Mahajan



 Export managementExport management

By: T.A.S. Balagopal By: T.A.S. Balagopal



 Export managementExport management

By:

By: N.KuN.Kumarmar and and R.MitR.Mittaltal



(84)

 

www.google.com

   

www.exportindia.com

   

www.exportpolicy.com

   

www.expoinfo.com

   

www.apparel.co.in

   

www.indiandata.com

(85)