Documents for export from India
The process of exporting goods from India to overseas requires some documentation to be done.
You as an exporter must understand well about the required documentation and its procedures.
Documentation is a key part of doing export business and small mistakes in the document will get you in huge trouble and your shipments may be stuck in customs and you may face financial loss as well as it may attract legal issues.
While preparing the export documents and filling in customs, you need to be well aware of it and do the things with utmost care as to avoid any possible problems.
The proper export documentation will ease your export process and your cargo will be shipped hassle free
What are the required documents for Export from India
Document for export from India is a set of docs prepared for the export process for the goods to be shipped.
We will discuss here only for the documents you need for export and we will not discuss documents required for Import.
You need to prepare a list of documents for export from india and we can divide the documentation in three stages;
1- Pre Shipment Documents
2- custom documents for export
3- Post Shipment Documents
1.a – Pre Shipment documents consist of Proforma Invoice, Commercial Invoice and Packing Lists.
Proforma Invoice is the first document that is created to receive advance payment for export or for opening the Letter of Credit by the Buyer`s Bank.
Proforma Invoice contains the specs of the goods, Pricing, Payment terms, Delivery terms and other details such as origin and Loading Port and Destination Port etc.
Commercial Invoice is a sale document issued by the exporter to the buyer and that is also used in custom for clearance.
1.b- Packing List contains the information of boxes and their weight being exported. Packing list is also needed in custom for clearance purposes.
These two documents are also known as commercial documents for export
2.a- Custom documents come into picture when you start filling the shipping Bill for export. You or your agent need to file a shipping Bill. Once the shipping Bill is filed, you will receive a check list and you have to confirm on your own and you need to confirm the checklist with the help of your buyer.
Once the check list is submitted, you will receive an ASSESSED COPY which is also known as Electronic First Copy of SB for Shipping Bill.
2.b The export cargo is examined by the customs officer and then LEO – Let Export Order Copy is issued and then you are good to go ahead and ship your products.
3.a – Now your cargo will be loaded on a vessel and you will get the Bill of Lading.
These docs are mandatory for each and every shipments that comes under post shipment documents for export
If we rearrange the pre shipment and post shipment documents for export, they are following;
1- Proforma Invoice
2- Commercial Invoice
3- Packing List
4- Shipping Bill for export
5- Bill of Lading in India
The extra documentation might be needed but it depends on importing countries. Many buyers demand for Certificate of Origin, Inspection Certificate, Quality Certificate as well as Warranty Certificate which are primarily required by the customs of the importers for the custom clearance purpose at the destination.
Certificate of origin for export
The certificate of origin is issued by the Chamber of Commerce or FEO on request of the shipper.
This certificate proves that the products exported from India are made in India and the buyers may get relaxation for the import duties if there would be any agreement for trade signed between India and the importing countries.
If the agreement between the exporter and importer countries is a free trade agreement then the import duties will be fully exempted and to avail this benefit , the shipper needs to provide A. I. form within 48 hours after the shipment is done to the importer to avail the tax exemption.
Inspection Certificate for Export
An external company provides the certificate after the inspection of the export cargo and inspection differs based on the requirement of the buyer.
Few countries need an Inspection certificate done by the SGS which is a renowned company in the field. Few countries require BVIQ certification and all depend on the requirement of the customs in the importing countries
The Letter of credit as payment terms requires a Certificate of Infection. The Inspection certificate can also be done in the organization internally and it is called a self tested certificate of inspections. It again depends on the requirement of the buyer.
Other certification such Quality control that gives assurance of the quality. Warranty certificate extends its assistance to buyers for the product under warranty period.
Fumigation Certificate for Export
You need to get the fumigation on the cargo packed in a wooden box done and get the fumigation certificate to avoid any hassle at the destination port.
Fumigation Certificate makes sure that all the boxes packed in wooden boxes and the whole cargo are free from infection and pesticide that is treated chemically before loading the cargo into containers.
EBRC
Once the cargo is exported and you have received the payment whether in advance or in the form of LC or any mode of payment terms that I will discuss in a separate blog, you need to submit all the docs to your bank for eBRC.
Electronic Bank Relation Certificate is issued by the bank that confirms the payment for the export done by the export is received.
You have to be very careful and you need to make sure that you have received EBRC for your exports done otherwise you will be in big trouble.
You keep checking from your bank where foreign remittances are received whether all the EBRC are done
You can also read my previous blog that explains in detail how to start export business from India
Conclusion.
Export Documents are a very vital part of the Export process and you need to create a checklist and make sure that all the documents required are properly done and completed.
You need to check Commercial Invoice, Packing List, Shipping Bill, Bill of Lading, Certificate of Origin, Fumigation certificate and Certificate of Inspection if required and finally the EBRC as to run your export business smoothly and hassle free.
You can hire a person to take care of all the documentation if your export business is big. If you are just starting an export business, then you should manage these documentation activities and you can take assistance from someone in the industry and You re good to go.
Keep exploring new topics on export at my blog to keep you updated and confident.