Export Diversification and Role of Export Processing Zones (EPZ) in ...
PROCESSING OF AN EXPORT ORDER1
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Transcript of PROCESSING OF AN EXPORT ORDER1
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Steps in the process of executingSteps in the process of executing
an export order.an export order.1.1. ScrutinisingScrutinising the export orderthe export order..
--shouldshould scrutinisescrutinise the export order in terms ofthe export order in terms ofterms and condition of the order of theterms and condition of the order of the
contract.contract.--export order must specify the mode ofexport order must specify the mode ofpaymentpayment
--the essential terms and conditions of exportthe essential terms and conditions of export
order such as deliveryorder such as deliveryscheduling,packaging,inspection,packingscheduling,packaging,inspection,packing etcetcmust tally with those of themust tally with those of the L/cL/c..
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2. Producing or collecting the2. Producing or collecting the
goods.goods.--Manufacturer exporterManufacturer exporter--makemake necessarynecessary
arrangement for manufacturing the goods as perarrangement for manufacturing the goods as per
the export order. An internal indent is raised onthe export order. An internal indent is raised on
the manufacturing unit indicating almost all thethe manufacturing unit indicating almost all theparticulars of the export order.particulars of the export order.
--Exporter non manufacturerExporter non manufacturer(merchant(merchant
exporter/export house)exporter/export house)--collect the requiredcollect the required
goods from the market or has to get themgoods from the market or has to get them
manufactured from other manufacturer.manufactured from other manufacturer.
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3.Clearance from Excise and3.Clearance from Excise and
Inspection authorities.Inspection authorities.i)i) Clearance from the excise authoritiesClearance from the excise authorities..two waystwo ways
a) make payment of the excise duty at the time ofa) make payment of the excise duty at the time of
removal of goods from factory for export and fileremoval of goods from factory for export and filea claim for rebate of duty after exportation ofa claim for rebate of duty after exportation ofgoods.goods.
b) to secure the clearance under bond. it involvesb) to secure the clearance under bond. it involvesentering into bond excise authorities at the time ofentering into bond excise authorities at the time of
removing the goods from factory. the exciseremoving the goods from factory. the exciseauthorities make debt entry in the bond account ofauthorities make debt entry in the bond account ofexporter. the obligation is discharged as soon asexporter. the obligation is discharged as soon asgoods are exported.goods are exported.
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2 importance documents are to be2 importance documents are to bePrepared by the exporterPrepared by the exporter--ARAR--4A or AR4A or AR--44form and create pass form GPform and create pass form GP--1 or1 or
GPGP--2.These are submitted to the Range2.These are submitted to the RangeSuperintendent, central excise who afterSuperintendent, central excise who afternecessary formalities sign all the copies.necessary formalities sign all the copies.
----the central excise office may make thethe central excise office may make thephysical verification of goods at thephysical verification of goods at thefactory and seal the package on thefactory and seal the package on therequest of the exporter .In this case formrequest of the exporter .In this case form
ARAR--4 will be used in place of AR4 will be used in place of AR--4A4A
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ii)ii) Clearance from Inspection AuthorityClearance from Inspection Authority..
--For conducting quality control and pre shipmentFor conducting quality control and pre shipment
Inspection. exporter enclosed followingInspection. exporter enclosed following
documents along with the application.documents along with the application.
a) copy of commercial invoice.a) copy of commercial invoice.b) A copy of export contractb) A copy of export contract
c) importers technical specification of quality and/orc) importers technical specification of quality and/or
sample approved by the importer.sample approved by the importer.
--An inspection certificate is issued to the exporter.An inspection certificate is issued to the exporter.
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4.Obtaining shipping bills.4.Obtaining shipping bills.
--after goods dispatch to port town, now apply forafter goods dispatch to port town, now apply forthe Marine insurance policy.the Marine insurance policy.
At this stage all formalities relating toAt this stage all formalities relating to canalisationcanalisation,,certificate of origin, ECGC cover and consularcertificate of origin, ECGC cover and consular
invoice are completed.invoice are completed.--The exporter sends the following documents toThe exporter sends the following documents toc/f agent along with detail instruction. _____a)c/f agent along with detail instruction. _____a)commercial invoice b) original export order c)commercial invoice b) original export order c)original L/C d) GR form showing codeoriginal L/C d) GR form showing code no.eno.e)AR)AR--
4A/AR4A/AR--4 form f) excise gate pass f) packing and4 form f) excise gate pass f) packing andweight lists g) certificate of inspection h)weight lists g) certificate of inspection h)consular invoice g) export licenseconsular invoice g) export license ii) railway) railwayreceipt R/R.receipt R/R.
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--the c/f agent takes delivery of the goodsthe c/f agent takes delivery of the goodsfrom the railway and warehouse them. hefrom the railway and warehouse them. heprepares shipping bills. It should beprepares shipping bills. It should be
submitted to the custom house along withsubmitted to the custom house along withnecessary documents.necessary documents.
--the shipping bill is then processed inthe shipping bill is then processed in
custom house and then passed.custom house and then passed.
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5.shipment5.shipment
--c/f agent presents shipping bills to port trust shedc/f agent presents shipping bills to port trust shedsuperintendentsuperintendent--prepares dockprepares dock challanchallan--and returned to c/fand returned to c/f
--shippingshipping bills+dockbills+dock challanchallan oRoR shippingshipping bills+dockbills+dockchallan+cartchallan+cart ticket/boat notesticket/boat notesauthorisedauthorised sircarsircar afterafter
finally being passed by port commissioner &custom andfinally being passed by port commissioner &custom andstaffstaff--hand over to super cargo.hand over to super cargo.
--ships export clerk prepares mates receipt after loadingships export clerk prepares mates receipt after loadingthe goods. It is signed by the captain of the ship andthe goods. It is signed by the captain of the ship anddelivers to port commissioner.delivers to port commissioner.
--c/f agent makes the payment of the port charge &collectc/f agent makes the payment of the port charge &collectthe mates receipt.the mates receipt.presented to preventive officer forpresented to preventive officer forcertifying the fact of shipment on all copies of thecertifying the fact of shipment on all copies of thedocument.document.------then c/f agent obtain the bill of lading fromthen c/f agent obtain the bill of lading fromthe shipping company against the mates receipt.the shipping company against the mates receipt.
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6.post6.post--shipment formalities.shipment formalities.
--the c/f sends the following documents to exporterthe c/f sends the following documents to exporter--a) fulla) fullset of bill of lading b) shipping bills c) copies of customset of bill of lading b) shipping bills c) copies of custominvoice c)ARinvoice c)AR--4A/AR4A/AR--4 forms d) commercial invoice e)4 forms d) commercial invoice e)original export order f) original letter of credit f) railwayoriginal export order f) original letter of credit f) railway
concession form.concession form.--exporter then complete the following formalities.exporter then complete the following formalities.--------
exporter files a claim with the maritime collector ofexporter files a claim with the maritime collector ofcentral excise in the port town for the refund of excisecentral excise in the port town for the refund of exciseduty or for getting credit in the bond, as the case mayduty or for getting credit in the bond, as the case may
be.be.--side by side exporter sends the following documents to theside by side exporter sends the following documents to the
importera) shipment advice b) a copy of bill of ladingimportera) shipment advice b) a copy of bill of ladingc) custom invoice d) commercial e) packing list.c) custom invoice d) commercial e) packing list.
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7.Formalities with negotiating bank.7.Formalities with negotiating bank.
--exporter submit the following documents for collectingexporter submit the following documents for collectingpayment from the importer.payment from the importer.--------a)GRa)GR--1 form b) bill of1 form b) bill ofexchange c) full set of clean on board bill of lading e)exchange c) full set of clean on board bill of lading e)original letter of credit f) commercial invoice g) customoriginal letter of credit f) commercial invoice g) custominvoice of origin h) maritime insurance policyinvoice of origin h) maritime insurance policy ii) bank) bankcertificate in the prescribed form.certificate in the prescribed form.
--the documents are processed with reference to terms andthe documents are processed with reference to terms andconditions of the original L/C.conditions of the original L/C.
--the negotiating bank sends the duplicate copy of the GRthe negotiating bank sends the duplicate copy of the GRform to the RBIform to the RBI
the original copy of the bank certificate and the attestedthe original copy of the bank certificate and the attestedcopies of the commercial invoice are returned to thecopies of the commercial invoice are returned to theexporter.exporter.
The duplicate copy of the bank certificate is forwarded toThe duplicate copy of the bank certificate is forwarded tothe joint chief controller of Importthe joint chief controller of Import--Export of the area.Export of the area.
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8.Claim for the export incentives8.Claim for the export incentives
--the prethe pre--shipment and postshipment and post--shipmentshipment
procedure adopted so far enables theprocedure adopted so far enables the thethe
exporter to claim the variousexporter to claim the various incentives,heincentives,he
is entitle to. The various incentives areis entitle to. The various incentives are
ii) import replenishment license) import replenishment license
ii) cash compensatory supportii) cash compensatory support
iii) duty drawback.iii) duty drawback.
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THANK YOU.THANK YOU.