EXPORT PROCEDURE

Explains the procedure for exports in international trade

1. EXPORTS

2. Exports Affect Economy _How ?

3. EXPORT PROCEDURE

4. Export procedure

5. 1 . Initiations before exports before tasking authentic exports, the exporters should study important aspects into accounts

6. 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 (Exchange control department) CNX number has been replaced by Importer Exporter Code (IEC) number issued by the Direct General for Foreign Trade ( DGFT) (fee of Rs. 1000 .)

7. 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

8. 2 . Offer and acceptance - Common to sales

9. 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

10. 3. Production and clearance for exports P rocessing of export order

11. 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) P re-shipment inspections – ensures quality of export goods. Inspections certificate is issued

12. 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

13. 4. Shipping of goods 6

14. a)Custom rules Goods can be shipped out of I ndia only after obtaining custom clearance. For which he should submit shipping bill

15. 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

16. 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.

17. 5. Commercial documents Shipping documents Enables the exporters to discharge their obligations under an export contract.

18. Commercial documents

19. Commercial invoice : The first basic and the only complete document among all commercial documents for the shipment

20. Bill of lading

21. Airway bill

22. 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

23. Insurance certificate: Cargo insurance policy protects the cargo owners in the event of loss or damage to cargo in transit

24. Additional commercial documents such as packing list, certificate of inspection, certificate of quality etc.

25. 6.Obtaining export incentives Export finance Short term Pre-shipment and post-shipment finance Medium term and long term Suppliers credit and buyers credit