Export and inport
This query is : Resolved
12 October 2015
export process and documents
13 October 2015
Step 1. Receipt of an order
The exporter has to get himself registered with various authorities like RBI, income tax authorities, etc. In addition, he has to appoint agents or distributors for collection of orders from foreign countries. Exporter receives an order from importer directly or through Indent House.
Step 2. Obtaining License and Quota
After obtaining order, exporter has to secure export license from the government. For this, he has to apply to the Export Trade Control Authority and obtain the valid license. Quota is the total quantity of goods that is permitted for exports.
Step 3. Letter of Credit
Exporter demands letter of credit from importer or sometimes importer may send it himself along with the order.
Preparation for executing the order
The exporter makes necessary arrangements for executing the order.
In this respect he performs the following activities :-
Packing and marking of the goods as per the specifications of the importer.
Arranging the pre-shipment inspection by the Export Inspection Agency and getting the inspection certificate from it.
Securing insurance policy from the Export Credit Guarantee Corporation (ECGC) to get protection against the credit risks.
Obtaining a suitable marine insurance policy, consular invoice and certificate of origin, if required.
Appointing a forwarding agent for handling the customs and forwarding activities.
Formalities done by forwarding agent
The Forwarding Agent completes the following formalities :-
He obtains the Customs' Permit from the Customs Department for exporting goods.
The Forwarding Agent discloses the details of the goods such as their nature, size, quantity, weight, etc. to the shipping company.
The Forwarding Agent prepares a Shipping Bill.
The Forwarding Agent prepares two copies of the dock challans and pays the dock dues.
The Captain of the ship gets the goods loaded on the ship on the basis of the Shipping Order in the presence of customer officers.
When the goods are loaded on the ship, the Mate (Vice Captain or the Captain) issues a receipt, called Mate's or Captain's Receipt.
Next Step . Bill of Lading
**************************
The exporter approaches the shipping company, presents the Mate's Receipt and in exchange receives a document called Bill of Lading. It is an official receipt given by the shipping company as an acknowledgement of the receipt of goods to be transported to the port of destination. It is also a contract for the carriage of goods. It gives full description of goods loaded on the ship, name of the port of destination, etc.
Next Step . Shipment advice to importer
***************************************
The exporter sends Shipment Advice to the importer informing him about the dispatch of the goods. He sends a copy of packing list, commercial invoice and a non-negotiable copy of the Bill of Lading, along with the Advice Note
Next Step: Presentation of documents to the bank
************************************************
The exporter confirms that he has secured a complete set of the shipping documents namely, the Bill of Lading, Marine Insurance Policy, Certificate of Origin, the Consular Invoice and the Commercial Invoice. He then draws a Bill of Exchange on the basis of the commercial invoice. The Bill of Exchange accompanied by these documents is called Documentary Bill of Exchange. Such a bill may be a D/P (Documents against payment) bill or D/A (Documents against Acceptance) bill. The exporter hands over the documnetary bill to his bank.
Next Step. Realisation of export proceeds
*****************************************
For realisation of export proceeds, the exporter has to undergo certain banking formalities. Generally he receives payment in foreign currency by bill of exchange or by bank draft.
MORE INFORMATION LINK IS:
http://agriexchange.apeda.gov.in/Ready%20Reckoner/EXPORT_DOCUMENTATION.aspx
The exporter has to get himself registered with various authorities like RBI, income tax authorities, etc. In addition, he has to appoint agents or distributors for collection of orders from foreign countries. Exporter receives an order from importer directly or through Indent House.
Step 2. Obtaining License and Quota
After obtaining order, exporter has to secure export license from the government. For this, he has to apply to the Export Trade Control Authority and obtain the valid license. Quota is the total quantity of goods that is permitted for exports.
Step 3. Letter of Credit
Exporter demands letter of credit from importer or sometimes importer may send it himself along with the order.
Preparation for executing the order
The exporter makes necessary arrangements for executing the order.
In this respect he performs the following activities :-
Packing and marking of the goods as per the specifications of the importer.
Arranging the pre-shipment inspection by the Export Inspection Agency and getting the inspection certificate from it.
Securing insurance policy from the Export Credit Guarantee Corporation (ECGC) to get protection against the credit risks.
Obtaining a suitable marine insurance policy, consular invoice and certificate of origin, if required.
Appointing a forwarding agent for handling the customs and forwarding activities.
Formalities done by forwarding agent
The Forwarding Agent completes the following formalities :-
He obtains the Customs' Permit from the Customs Department for exporting goods.
The Forwarding Agent discloses the details of the goods such as their nature, size, quantity, weight, etc. to the shipping company.
The Forwarding Agent prepares a Shipping Bill.
The Forwarding Agent prepares two copies of the dock challans and pays the dock dues.
The Captain of the ship gets the goods loaded on the ship on the basis of the Shipping Order in the presence of customer officers.
When the goods are loaded on the ship, the Mate (Vice Captain or the Captain) issues a receipt, called Mate's or Captain's Receipt.
Next Step . Bill of Lading
**************************
The exporter approaches the shipping company, presents the Mate's Receipt and in exchange receives a document called Bill of Lading. It is an official receipt given by the shipping company as an acknowledgement of the receipt of goods to be transported to the port of destination. It is also a contract for the carriage of goods. It gives full description of goods loaded on the ship, name of the port of destination, etc.
Next Step . Shipment advice to importer
***************************************
The exporter sends Shipment Advice to the importer informing him about the dispatch of the goods. He sends a copy of packing list, commercial invoice and a non-negotiable copy of the Bill of Lading, along with the Advice Note
Next Step: Presentation of documents to the bank
************************************************
The exporter confirms that he has secured a complete set of the shipping documents namely, the Bill of Lading, Marine Insurance Policy, Certificate of Origin, the Consular Invoice and the Commercial Invoice. He then draws a Bill of Exchange on the basis of the commercial invoice. The Bill of Exchange accompanied by these documents is called Documentary Bill of Exchange. Such a bill may be a D/P (Documents against payment) bill or D/A (Documents against Acceptance) bill. The exporter hands over the documnetary bill to his bank.
Next Step. Realisation of export proceeds
*****************************************
For realisation of export proceeds, the exporter has to undergo certain banking formalities. Generally he receives payment in foreign currency by bill of exchange or by bank draft.
MORE INFORMATION LINK IS:
http://agriexchange.apeda.gov.in/Ready%20Reckoner/EXPORT_DOCUMENTATION.aspx
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
