EXPORT PROCEDURE
Download as PPTX, PDF5 likes6,266 views
The document discusses export procedures and incentives. It describes 6 key steps: 1) Initiations like obtaining codes and finding buyers. 2) Offer/acceptance involving quotes and orders. 3) Production and clearance involving licenses, inspections, and transport. 4) Shipping using customs, shipping documents, and port procedures. 5) Commercial documents like invoices and bills of lading. 6) Obtaining export incentives like financing. Maintaining proper documentation is essential for exports to follow regulations and receive benefits.
EXPORT PROCEDURE
- 2. EXPORTS Component of international trade Goods and services produced in one country & purchased another It can be shipped, sent by email, or carried in personal luggage Most countries want to increase their exports.
- 3. Exports Affect Economy _How ? The more they export, the greater their competitive advantage (expertise in making the goods and services & knowledge about how to sell in foreign market) Governments encourage exports. Exports increase jobs, bring in higher wages, and raise the standard of living for residents. Exports also increase the foreign exchange reserves held in the nation's central bank. A country with large reserves can use it to manage their own currency's value.
- 4. Countries also use currency reserves to manage liquidity. That means they can better control inflation, which is too much money chasing too few goods. To control inflation, they use the foreign currency to purchase their own currency. That decreases the money supply, making the local currency worth more. That lowers the cost of their exports in other countries.
- 6. Export procedure 1. Initiations before exports 2. Offer and acceptance 3. Production and clearance for exports 4. Shipment of goods 5. Commercial documents 6. Export incentives
- 7. 1. Initiations before exports Initiations before exports Obtaining code number Membership in various organisations Registration Locating the foreign buyers
- 8. a) Obtaining code number § Obligatory for every exporter to obtain Exporter's Code Number (CNX) number from RBI. (Exchange control department) § CNX number has been replaced by Importer Exporter Code (IEC) number issued by the Direct General for Foreign Trade (DGFT) (fee of Rs. 1000.)
- 9. b) Membership in various organisation - Not mandatory - Exporters should become member of any recognized ministry of commerce and trade c)Registration – It is vital for every exporter to register with appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate' (RCMC) – Only registered exporters can avail the benefits d) Identifying foreign buyers
- 10. 2. Offer and acceptance - Offer and acceptance Enquiry from buyers Sending quotations Order and confirmation
- 11. a)Enquiry from buyers - Enquiry is the first step to exports. - Either directly or through agents (Marketing) b) Sending quotations FOB price Period of delivery Mode of payment Packing Discounts Clauses c)Receipts and order confirmation
- 12. 3. Production and clearance for exports Production and clearance Export license Production of goods Pre- shipment inspection Packing and marking Movement of goods
- 13. a) Obtaining export license - From licensing authority. - With reference to quantity, value and description of goods - Only satisfied documents gets license for exports from JCCI & E b) Production of goods c) Pre-shipment inspections – ensures quality of export goods. Inspections certificate is issued
- 15. d) Packing and marking - once goods are ready, they should be properly packed and marked -marking: the shipping marks of the consignee, the port of destination, etc. e) Movement by rail in the port
- 16. 4. Shipping of goods 6 Custom rules Carting order Custom examination of cargo at docks Let ship order Mate receipts Payment of port trust dues
- 17. a)Custom rules • Goods can be shipped out of India only after obtaining custom clearance. • For which he should submit shipping bill Contract with overseas buyers in original Invoice Packing list GR form (Guaranteed remittance) Copy of letter of credit
- 18. b)Carting order: - It is a permission to bring the goods inside the docks. - The carting order is issued by the superintendent of port trust. - It is issued only after verifying the endorsement on the duplicate copy of shipping bill c)Custom examination of cargo at docks - To verify whether the goods are packed and kept ready for shipment as mentioned in the shipping bill - “Out of charge” of customs
- 19. d) Let ship order: - Endorsement on duplicate copy of shipping bill. - Authentication given by the customer department to shipping co. to accept the cargo on board. e) Mate receipt: Caption of the ship issued to port trust authorities f) Payment of port trust dues: - Exporter can get the mate receipt only after making payment of port dues.
- 21. Commercial documents • Commercial invoice • Bill of lading • Airway bill • Post parcel receipts • Insurance policy certificate • Bill of exchange Cost- Insurance- Fright (CIF) contract
- 22. Commercial invoice: The first basic and the only complete document among all commercial documents for the shipment Fulfills the obligation under the export contract Obtaining export inspection certificate Getting excise & customs clearance Securing incentives
- 24. Bill of lading Issued by shipping company Confirms that goods are either being shipped or have shipped Only document to file a claim in case of non-delivery Evidence the contract of transport between the shipping company and the exporter B/L must contain leading identification marks, number of products, quantity etc.
- 26. Airway bill Transport document of air carriage • Contract for transport • Receipt of goods • Conditions of carriage AWB is not a document of title to goods AWB can be made into transferable documents
- 28. Post parcel receipts • Evidence merely the receipt of the goods exported through postal channels to the buyers. • It does not evidence the title to goods
- 30. Insurance certificate: Cargo insurance policy protects the cargo owners in the event of loss or damage to cargo in transit
- 31. Bill of exchange BE is an instrument in writing containing an unconditional order, directing a certain person to pay a certain sum of money Bridges the gap between the shipment of goods and receipt of sale amount
- 33. Additional commercial documents such as packing list, certificate of inspection, certificate of quality etc.
- 36. 6.Obtaining export incentives Export finance • Short term Pre-shipment and post-shipment finance • Medium term and long term Suppliers credit and buyers credit