THE SYDENHAM COLLEGE OF

COMMERCE

AND ECONOMICS
B , Road , Churchgate,
Mumbai-400020

PROJECT TOPIC

EXPORT DOCUMENTS

ACADEMIC YEAR 2009-2010

NAME : NILESH BAHETI

STANDARD : TYBCOM

DIVISION : B

ROLL NO : 159

1
 DECLARATION

I NILESH SHREEVALLABH BAHETI Roll No 159 of

Sydenham College studying in TYBCOM, hereby

declare that I have completed this project and the

work is done by me.

This information is true and original to the best of

my knowledge.

Signature of student
NILESH BAHETI

2
 CERTIFICATE

I, PROFESSOR_______________________CERTIFY

THAT__________________________________OF TYBCOM

ROLLNO._____ DIV ___ HAS COMPLETED HIS

PROJECT ON ____________________________

DATE :

SIGNATURE

OF PROF.

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INDEX

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

Sr No NAME OF THE TOPIC PAGE

NO.

1. INTRODUCTION AND OBJECTIVE OF 5-7

STUDY

2. DOCUMENTS REQUIRED FOR EXPORT 8-13

3. OTHER EXPORT DOCUMENTS 14-18

4. THE AIRWAY BILL 19-20

5. CERTIFICATES OF ORIGIN 21-25

6. THEORETICAL BACKGROUND 26

7. SHIP TRANSPORT DOCUMENTS 27-

29

8. PACKING FREIGHT FORWADERS AND 30-

LABELING 37

9. GLOSSARY INTERNATIONAL FREIGHT 38-

TERMS 41

10. Conclusion & Bibliography 42-

43

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

INTRODUCTION

Export from India requires special document depending upon

the type of product and destination to be exported. Export Documents

not only gives detail about the product and its destination port but

are also used for the purpose of taxation and quality control

inspection certification.

This project is all about to know about export import

procedure/ documentation of shipment. This project puts more focus on

to know custom clearness , to make export – import invoice , to get

shipping bill number from custom department etc.

When a firm sells its goods abroad, it must arrange for each

export shipment to be accompanied by various documents.

Depending on the country to which the goods are being sent, these

documents will include some or all of the following : consular invoice ,

commercial invoice , certificate of origin , bill of lading , packing list ,

health certificate , import license , and insurance certificate.

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 In general , their purpose is to provide the foreign Customs

authority with a complete, detailed description of the goods so that the

correct import duty can be levied.

Sometimes they are required for the administration of exchange

control regulations or import quotas and depending on the product , to

safeguard public and animal health and prevent the spread of plant

diseases.

Statistical information about a country's imports is also based

on these documents. Failure to complete the forms properly may lead to

a fine and/or unnecessary delay in clearing the goods through foreign

Customs.

If the information given is found false, heavier fines may be

imposed and/or the goods confiscated.

In addition to the documents required by the foreign country, the

exporter must also provide an export declaration.

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The main objectives of the project are:

➢ To understand briefly what Export Documents mean.

➢ To know about export import documents.

➢ To know what are the documents required before and after sailing the

cargo.

➢ To know different type of container used in shipment

➢ To know about export import process.

➢ To get an idea and a picture of Export Documents of Indian Economy.

➢ To understand the need and importance of Export Documents.

➢ To List the typical Export Documents used.

DOCUM ENTS REQUIRED FOR EXPORT

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1. Shipping Bill / Bill of Export

Shipping Bill / Bill of Export is the main document required by

the Customs Authority for allowing shipment. A shipping bill is issued

by the shipping agent and represents some kind of certificate for all

parties , included ship's owner , seller , buyer and some other parties.

For each one represents a kind of certificate document.

It is a requisite for seeking the permission of customs to export goods.

It contains a description of export goods by sea/air. It contains a

description of export goods , number and kind of packages , shipping

marks , and number numbers , value of goods , the name of the vessel , the

country of destination, etc. On the other hand , importers have to submit

copies of document called Bill of Entry for customs clearance. Later , a

copy has to be given to the bank for verification.

Usually the Shipping Bill is of four types and the major distinction

lies with regard to the goods being subject to certain conditions which are

mentioned below:

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 • Export duty/ cess

• Free of duty/ cess

• Entitlement of duty drawback

• Entitlement of credit of duty under DEPB Scheme

• Re-export of imported goods

The following are the documents required for the processing of the

Shipping Bill:

• GR forms (in duplicate) for shipment to all the countries.

• 4 copies of the packing list mentioning the contents, quantity, gross

and net weight of each package.

• 4 copies of invoices which contains all relevant particulars like

number of packages, quantity, unit rate, total f.o.b./ c.i.f. value,

correct & full description of goods etc.

• Contract, L/C, Purchase Order of the overseas buyer.

• AR4 (both original and duplicate) and invoice.

• Inspection/ Examination Certificate.

The formats presented for the Shipping Bill are as given below:

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 • White Shipping Bill in triplicate for export of duty free of goods.

• Green Shipping Bill in quadruplicate for the export of goods which

are under claim for duty drawback.

• Yellow Shipping Bill in triplicate for the export of dutiable goods.

• Blue Shipping Bill in 7 copies for exports under the DEPB scheme.

Note :- For the goods which are cleared by Land Customs, Bill of Export

(also of 4 types - white, green, yellow & pink) is required instead of

Shipping Bill.

2. The Bill of lading

The bill of lading performs the following functions:

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 • A contract of carriage between the shipper of the cargo and the

carrying shipping company.

• The name of the shipper and the receiver of the goods the consignee.

• The contents of the packages as declared by the shipper.

• Shipping details such as: port of loading and the port of discharge.

• The bill of lading is a freight invoice and indicates if the freight costs

have been prepaid by the exporter or will be paid by the importer,

"freight collect".

• The bill of lading states the number of packages, weight and

dimension of the shipment.

• It is a document of title to the goods stated thereon.

Every original bill of lading signed by or on behalf of the shipping

company is a document of title to the underlying goods. This special

function of a bill of lading is achieved by a form of words which

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state: "In witness whereof the undersigned on behalf of the shipping

company has signed three bills of lading all of this tenor and date, one of

which being accomplished the others to stand void". "Accomplishing" the

bill of lading requires the surrender to the shipping line or its agents in the

port or place of destination one of the signed original bills of lading duly

endorsed by the consignee/importer. Unless and until one of the original

bills of lading as described above is surrendered, the shipping line will not

release the cargo to the consignee/importer. Upon surrender of any one of

the originals the other originals bills of lading become void.

> Endorsed Bills of Lading

Bills of lading can only be issued with the words "shipped on board", if the

cargo has actually been loaded onto the named vessel at the port of loading.

By insisting that the exporter supplies the importer with a "shipped on

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board" bill of lading, the importer obtains conclusive evidence that the

goods have been loaded on board the intended vessel.

Some importers insist that the exporter presents "shipped on board" bills as

a condition for payment. "Received for shipment", bills of lading can be

issued as soon as the goods have been delivered into the custody of the

carrying shipping company or its agent either at the point of receipt or at the

port of loading. Thus, a 'received for shipment", bill of lading will only

indicate the ship in which the cargo is intended to be loaded on. The risk

remains that the loading may, for many reasons delayed or the cargo may

not be loaded at all.

Banks responsible for the payment of funds in payment for goods under

letters of credit will not release the funds if the bill of lading has been

endorsed "received for shipment".

Other Export Documents

Documents Required for Post Parcel Customs Clearance

In case of Post Parcel , no Shipping Bill is required. The relevant

documents are mentioned below:

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• Customs Declaration Form - It is prescribed by the Universal Postal

Union (UPU) and international apex body coordinating activities of

national postal administration. It is known by the code number CP2/

CP3 and to be prepared in quadruplicate, signed by the sender.

• Dispatch Note - It is filled by the exporter to specify the

action to be taken by the postal department at the destination in

case the address is non-traceable or the parcel is refused to be

accepted.

• Commercial Invoice – Issued by the exporter for the full

realizable amount of goods as per trade term.

• Legalised / Visaed Invoice - This shows the seller's genuineness

before the appropriate consulate or chamber or commerce/ embassy.

• Certificate of Inspection – It is a type of document describing the

condition of goods and confirming that they have been inspected.

• Customs Invoice - The customs invoice is used in lieu of the

commercial invoice in a few importing countries for customs

purposes, but the importer often needs a commercial invoice too. The

customs invoice can be in a form called the certificate of value. The

invoices vary in format but they contain essentially the same data as

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 in the commercial invoice and packing list. The invoice is self-

certified by the exporter. The blank customs invoice is available from

the customs broker or forwarder and specialized printer. Certain

importing countries may require their importers, not the exporters in

the exporting country, to provide the completed customs invoice for

customs clearance.

• Black List Certificate - It is required for countries which have

strained political relation. It certifies that the ship or the aircraft

carrying the goods has not touched those country(s).

• Certificate of Chemical Analysis - It is required to ensure the

quality and grade of certain items such as metallic ores, pigments, etc.

• Certificate of Shipment - It signifies that a certain lot of goods have

been shipped.

• Consular Invoice - As the name implies, the consular invoice is a

specific invoice issued by the Consul of the importing country. Many

importing countries, mainly less developed countries, have already

phased out this invoice. It is used for customs clearance and other

purposes , as such any errors or omissions on the invoice may cause

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 problems and fines at the customs in the importing country. The

consular invoice is a form of non-tariff barrier. The format of the

consular invoice form varies greatly, but it contains essentially the

same data as in the commercial invoice and packing list. The invoice

form is either in the language of the importing country (Spanish

usually) or bilingual, that is, a combination of English and Spanish

usually. The exporter's declaration normally is included in a consular

invoice. The consular legalization and payment of a consular fee is

required. The consular fee can be a percentage of the FOB invoice

value. Export from India required special document depending upon

the type of product and destination to be exported. Export Documents

not only gives detail about the product and its destination port but are

also used for the purpose of taxation and quality control inspection

certification.

• Certified Invoice - It is required when the exporter needs to certify

on the invoice that the goods are of a particular origin or

manufactured/ packed at a particular place and in accordance with

specific contract. Sight Draft and Usance Draft are available for this.

Sight Draft is required when the exporter expects immediate payment

and Usance Draft is required for credit delivery.

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• Packing List - It shows the details of goods contained in each parcel /

shipment.

• Manufacturer's Certificate - It is required in addition to the

Certificate of Origin for few countries to show that the goods shipped

have actually been manufactured and is available.

• Health/ Veterinary/ Sanitary Certification - Required for export of

foodstuffs, marine products, hides, livestock etc.

• Certificate of Conditioning - It is issued by the competent office to

certify compliance of humidity factor, dry weight, etc.

• Antiquity Measurement – It is issued by Archaeological Survey of

India in case of antiques.

• Certificate of Shipment - It signifies that a certain lot of goods have

been shipped.

• Shipping Order - Issued by the Shipping (Conference) Line which

intimates the exporter about the reservation of space of shipment of

cargo through the specific vessel from a specified port and on a

specified date.

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• Cart/ Lorry Ticket - It is prepared for admittance of the cargo

through the port gate and includes the shipper's name, cart/ lorry No.,

marks on packages, quantity, etc.

• Shut Out Advice - It is a statement of packages which are shut out by

a ship and is prepared by the concerned shed and is sent to the

exporter.

• Short Shipment Form - It is an application to the customs

authorities at port which advises short shipment of goods and required

for claiming the return.

• Shipping Advice - It is prepared in aligned document to be used to

inform the overseas customer about the shipment of goods.

• Transhipment Bill - It is used for goods imported into a customs

port/ airport intended for transhipment.

• Weight Note - Required to confirm the packets or bales or other form

are of a stipulated weight.

The Air Waybill

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The air waybill, unlike the ocean bill of lading is not a document of title to

the goods described therein, however it does perform several similar

functions these are:

• It is a receipt for the goods

• It is evidence of the contract of carriage between the exporter and the

carrier

• It incorporates full details of the consignor/shipper, the

consignee/receiver and the consignment/goods

• It is an invoice showing the full freight amount

• It must be produced, be it in an electronic format, at the airport of

discharge for clearing purposes

All copies of the air waybill, together with the commercial invoice, packing

list, certificate of origin and any other document which may be necessary

for clearing the goods through customs, these documents are carried in the

flight captain's bag.

Inspection Certificate or Inspection Report

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The inspection certificate---inspection report or report of findings---is

required by some importers and/or importing countries. Please see the

sample Inspection Report. The export-trader uses such a report in the

inspection of goods purchased from a manufacturer. The export-

manufacturer also uses such a report in the inspection of its own

productions.

In case an inspection certificate is required, the importer may stipulate in

the letter of credit (L/C) to use a specific independent surveyor.

In the case of a foreign government required pre-shipment inspection,

which is stipulated in the L/C, the report of findings can be in the form of

a security label attached on the invoice. The label bears the number and

date of the corresponding report of findings issued by the foreign

government engaged surveyor.

Certificates of Origin

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The certificate of origin is a document certifying the country in which the

product was manufactured, and in certain cases may include such

information as the local material and labor contents of the product.

Some importing countries require a certificate of origin to establish whether

or not a preferential duty rate is applicable. A popular example of the

certificate of origin is the Form A, which is often called the GSP Form A.

The certificate of origin (C/O)is an alternative to the declaration or the

certification and/or legalization of the commercial invoice. The C/O is

based on the rules of the country of origin. The country of origin is the

country where the goods are grown, produced or manufactured. The

manufactured goods must have been substantially transformed in the

exporting country as the country of origin, to their present form ready for

export. Certain operations such as packaging, splitting and sorting may not

be considered as sufficient operations to confer origin.

The certificate of origin includes the Form A, Chamber of Commerce

Certificate of Origin, Exporter's Certificate of Origin, and Free Trade

Market Certificate of Origin. The trade agreement, import practice, and

letter of credit (L/C) stipulation determine the type of C/O needed.

Chamber of Commerce Certificate of Origin

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The importer or the importing country may require a specific certificate of

origin (C/O) form issued by a Chamber of Commerce in the exporting

country. Some countries may further require the consular legalization of the

C/O after the Chamber of Commerce certification. The certification and

legalization normally require payment of a fee.

Exporter's Certificate of Origin

Unless the letter of credit (L/C) stipulates a specific certificate of origin

(C/O) form and/or the issuer and/or the wording (data content), the exporter

may issue his/her own C/O using the company letterhead. The C/O contents

may include the same data as in the commercial invoice and packing list,

adding a declaration that the goods in question are manufactured in the

exporting country, and that the amount shown on invoice is the true and

correct value. Depending on the L/C stipulation, the certificate of origin

issued by the exporter may be self-certified and/or require certification by a

Chamber of Commerce or the government foreign trade office. The

certification normally requires payment of a fee, unless self-certified.

NAFTA Certificate of Origin

The North American Free Tree Agreement (NAFTA) Certificate of Origin

23
is used within the NAFTA countries (i.e., Canada, USA and Mexico). The

form is available at the customs office. It is self-certified by the exporter.

EC Certificate of Origin

The European Community (EC) Certificate of Origin, as its name implies, is

used in the European Community. It is issued by the Chamber of Commerce

of the exporting country, usually with payment of a fee.

EC countries consist of Belgium, Denmark, France, Germany, Greece,

Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, and United

Kingdom.

Movement Certificates

Different Movement Certificates are being used in the European Union

(EU)---EC (European Community) and EFTA (European Free Trade

Association) countries. The certificates require endorsement by the customs

of the exporting country.

EFTA countries consist of Austria, Finland, Iceland, Norway, Sweden,

Switzerland, and Liechtenstein.

AR 4-FORM

Every manufacturer for clearance of excisable goods files an

application AR-4 from his factory for export. The clearances can be
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‘under claim for rebate of duty’ or ‘under bond.’ The goods can be

examined and sealed at the factory by a central excise officer having

jurisdiction over the factory. After shipment of goods, the customs officer

endorses AR-4 form , which is taken as evidence by excise authorities

for considering rebate in duty or cancellation of bond.

PROFORMA INVOICE

This is a provisional document drawn by the exporter giving details

of description , quantity , price and terms of supply of goods , which

enables him to go through exchange control formalities for opening an

L/C. The Proforma invoice duly accepted by the buyer is to be

submitted to customs authorities along with shipping bill.

BANK GUARANTEE / LEGAL UNDERTAKING

Wherever any duty free import is allowed , the importer has to

execute a Legal Undertaking (LUT) / Bank Guarantee (BG) / Bond with

the Customs Authority before clearance of goods through the

Customs. However , exporters with export turnover of Rupees 5 crore

or more in the current or preceding licencing year are exempted from

25
furnishing a BG for any of the Foreign Trade Policy schemes and

may furnish a LUT in lieu of BG.

GR FORM (EXCHANGE CONTROL DOCUMENT)

This is a declaration by the exporter in the format prescribed by

RBI to be submitted along with the shipping bill to customs. The

declaration must contain the information about sender, consignee ,

description of goods , full export value of goods in foreign currency ,

etc. The exporter submits a duplicate of GR form with its bank along

with shipping documents. The bank endorses the copy after realization

of sales proceeds and sends it to RBI. The original copy submitted at

customs is also directed to RBI by the customs. The RBI confirms the

realization of the proceeds as per full export value after comparing the two

copies.

THEORETICAL BACKGROUND

LOGISTICS SYSTEM

Logistics is defined by the council of Logistics, Ohio USA as the

process of planning, implementing and controlling the efficient, co-effective

26
flow and storage flow and storage of raw materials, in process inventory

finished goods and related information from point of origin to point

consumption. More simply, the objective of Logistics System is that the

right products reach the right place in the right quantity at the right time to

satisfy customer demand.

ELEMENTS OF LOGISTICS SYSTEM

➢ Nature of Product

➢ Location of Manufacturing Plant

➢ Availability of infrastructure such as Road

➢ Availability of different modes of transportation

➢ Dealer/Distributor Network

➢ Government Policy

SHIP TRANSPORT DOCUMENTS

In India, ships transport more than 90 per cent of the cargo. It is therefore

interesting to study the export processed by ship documentation related to it.

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Processing of an export order-----

i.
Exporter operation starts with the receipt of enquiry by the exporter

from importer. Bar on the enquiry exporter submits his offer giving

complete details of products technical specific price delivery payment

terms etc.

ii. After the process negotiations importer sends a purchase order follow

by letter of credit (if applicable).

iii. The exporter manufactures the goods according to the specification

given in purchase order.

iv.
As soon as the goods are ready the exporters invites the representative

of Export inspections agency (EIA) for pre shipment inspection and

obtain the certificate of inspection.

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v. After that, the exporter prepared following documents:----

✔ INVOICE

✔ PACKING LIST

✔
ARE1 FROM EXSICE DEPARTMENT

✔ MARINE INSURANCE POLICY

✔
COPY OF PURCHASE ORDER / L/C

vi.
Above those documentation sends to CHA by exporter.

vii.
Based on these documents CHA agent completes the octroi formalities,

obtain port permit and prepare shipping bill which is a customs

documents.

viii.
Custom department check the export cargo on the basis of information

provided on the shipping bill. If satisfy then cargo allow to loaded on

the board of ship.

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ix. The shipping line gives mate receipts to CHA agents after the payment

of ocean freights and port due obtains the bill of lading (B/L) from

shipping line .B/L is a proof of dispatch of cargo and also a negotiable

document.

x.
After that, CHA agent send various documents back to exporter

which is—

✔ Customs attested invoice

✔ Copy of shipping bill

✔ Full set of non board bill of lading.

✔ Copy of purchase order or L/C

✔
Copies of ARE1 Form

✔ SDF form

xi. After that the exporter submitted above these documents for

negotiation to the bank which include :----

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 ✔ Commercial invoice

✔ Packing list

✔ SDF form

✔ Original copy of purchases order

✔ Certificate of origin

✔ Bill of exchange

✔ Shipment advice

After that, bank scrutinizes these documents and if found correct make

payment to exporter against documentations.

PACKING FREIGHT FORWADERS AND LABELING

When preparing for Export Documentation and Export Shipping,

the exporter needs to be aware of packing, labeling, documentation, and

insurance requirements. Because the goods are being shipped by unknown

carriers to distant customers, the new exporter must be sure to follow all

shipping requirements to help ensure that the merchandise is

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 • packed correctly so that it arrives in good condition;

• labeled correctly to ensure that the goods are handled properly and

arrive on time and at the right place;

• documented correctly to meet local and foreign government

requirements as well as proper collection standards; and

• insured against damage, loss, and pilferage and, in some cases, delay.

Because of the variety of considerations involved in the physical Export

Documentation and Export Shipping process, most exporters, both new and

experienced, rely on an international freight forwarder to perform these

services.

FREIGHT FORWARDERS

The international freight forwarder acts as an agent for the exporter in

moving cargo to the overseas destination. These agents are familiar with the

import rules and regulations of foreign countries, methods of shipping,

government export regulations, and the documents connected with foreign

trade.

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Freight forwarders can assist with an order from the start by advising the

exporter of the freight costs, port charges, consular fees, cost of special

documentation, and insurance costs as well as their handling fees - all of

which help in preparing price quotations. Freight forwarders may also

recommend the type of packing for best protecting the merchandise in

transit; they can arrange to have the merchandise packed at the port or

containerized. The cost for their services is a legitimate export cost that

should be figured into the price charged to the customer.

When the order is ready to ship, freight forwarders should be able to review

the letter of credit, commercial invoices, packing list, and so on to ensure

that everything is in order. They can also reserve the necessary space on

board an ocean vessel, if the exporter desires.

If the cargo arrives at the port of export and the exporter has not already

done so, freight forwarders may make the necessary arrangements with

customs brokers to ensure that the goods comply with customs export

documentation regulations. In addition, they may have the goods delivered

to the carrier in time for loading. They may also prepare the bill of lading

and any special required documentation. After shipment, they forward all

documents directly to the customer or to the paying bank if desired.

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PACKING

In packing an item for export, the shipper should be aware of the demands

that exporting puts on a package. Four problems must be kept in mind when

an export shipping crate is being designed: breakage, weight, moisture, and

pilferage.

Most general cargo is carried in containers, but some is still shipped as

breakbulk cargo. Besides the normal handling encountered in domestic

transportation, a breakbulk shipment moving by ocean freight may be

loaded aboard vessels in a net or by a sling, conveyor, chute, or other

method, putting added strain on the package. In the ship's hold, goods may

be stacked on top of one another or come into violent contact with other

goods during the voyage. Overseas, handling facilities may be less

sophisticated than in your country and the cargo may be dragged, pushed,

rolled, or dropped during unloading, while moving through customs, or in

transit to the final destination.

Moisture is a constant problem because cargo is subject to condensation

even in the hold of a ship equipped with air conditioning and a

dehumidifier. The cargo may also be unloaded in the rain, and some foreign

34
ports do not have covered storage facilities. In addition, unless the cargo is

adequately protected, theft and pilferage are constant threats.

Since proper packing is essential in exporting, often the buyer specifies

packing requirements. If the buyer does not so specify, be sure the goods are

prepared with the following considerations in mind:

• Pack in strong containers, adequately sealed and filled when possible.

• To provide proper bracing in the container, regardless of size, make

sure the weight is evenly distributed.

• Goods should be packed in oceangoing containers, if possible, or on

pallets to ensure greater ease in handling. Packages and packing filler

should be made of moisture-resistant material.

• To avoid pilferage, avoid mentioning contents or brand names on

packages. In addition, strapping, seals, and shrink wrapping are

effective means of deterring theft.

One popular method of shipment is the use of containers obtained from

carriers or private leasing concerns. These containers vary in size, material,

and construction and can accommodate most cargo, but they are best suited

for standard package sizes and shapes. Some containers are no more than

semi-truck trailers lifted off their wheels and placed on a vessel at the port

35
of export. They are then transferred to another set of wheels at the port of

import for movement to an inland destination. Refrigerated and liquid bulk

containers are readily available.

Normally, air shipments require less heavy packing than ocean shipments,

but they must still be adequately protected, especially if highly pilferable

items are packed in domestic containers. In many instances, standard

domestic packing is acceptable, especially if the product is durable and there

is no concern for display packaging. In other instances, high-test (at least

250 pounds per square inch) cardboard or tri-wall construction boxes are

more than adequate.

For both ocean and air shipments, freight forwarders and carriers can advise

on the best packaging. Marine insurance companies are also available for

consultation. It is recommended that a professional firm be hired to package

for export if the exporter is not equipped for the task. This service is usually

provided at a moderate cost. Finally, because transportation costs are

determined by volume and weight, special reinforced and lightweight

packing materials have been devised for exporting. Care in packing goods to

minimize volume and weight while giving strength may well save money

while ensuring that goods are properly packed.

36
LABELING

Specific marking and labeling is used on export shipping cartons and

containers to

• meet shipping regulations,

• ensure proper handling,

• conceal the identity of the contents, and

• help receivers identify shipments.

The overseas buyer usually specifies export marks that should appear on the

cargo for easy identification by receivers. Many markings may be needed

for shipment. Exporters need to put the following markings on cartons to be

shipped:

• Shipper's mark.

• Country of origin (exporters’ country).

• Weight marking (in pounds and in kilograms).

• Number of packages and size of cases (in inches and centimeters).

• Handling marks (international pictorial symbols).

• Cautionary markings, such as "This Side Up" or "Use No Hooks" (in

English and in the language of the country of destination).

37
 • Port of entry.

• Labels for hazardous materials (universal symbols adapted by the

International Maritime Organization).

Legibility is extremely important to prevent misunderstandings and delays

in shipping. Letters are generally stenciled onto packages and containers in

waterproof ink. Markings should appear on three faces of the container,

preferably on the top and on the two ends or the two sides. Old markings

must be completely removed.

In addition to port marks, customer identification code, and indication of

origin, the marks should include the package number, gross and net weights,

and dimensions. If more than one package is being shipped, the total

number of packages in the shipment should be included in the markings.

The exporter should also include any special handling instructions on the

package. It is a good idea to repeat these instructions in the language of the

country of destination. Standard international shipping and handling

symbols should also be used.

Exporters may find that customs regulations regarding freight labeling are

strictly enforced; for example, most countries require that the country of

origin be clearly labeled on each imported package. Most freight forwarders

38
and export packing specialists can supply necessary information regarding

specific regulations.

GLOSSARY INTERNATIONAL FREIGHT TERMS

Ad Valorem ("according to the value") : A fixed percentage of the

value of goods that is used to calculate customs duties and taxes.

Advising Bank : A bank that receives a letter of credit from an

issuing bank , verifies its authenticity , and forwards the original letter

of credit to the exporter without obligation to pay.

Draft (or Bill of Exchange) : An unconditional order in writing from

one person (the drawer) to another (the drawee) , directing the Drawee

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to pay a specified amount to a named Drawer at a fixed or

determinable future date.

Export License : A document secured from a government, authorizing

an Exporter to export a specific quantity of a particular commodity to

a certain country. An export license is often required if a government

has place embargoes or other restrictions upon exports. See General

Export License.

FOB (free on board): Seller is responsible for inland freight and all

other costs until the cargo has been loaded on the vessel/aircraft.

Buyer is responsible for ocean/air freight and marine/air insurance.

GATT : General Agreement on Tariffs and Trade, a multilateral treaty

intended to help reduce trade barriers and promote tariff concessions.

ICC : International Chamber of Commerce

Import License : A certificate, issued by countries exercising import

controls, that permits importation of the articles stated in the license. The

issuance of such a permit frequently is connected with the release of foreign

exchange needed to pay for the shipment for which the import license has

been requested.

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Letter of Credit - payment by sight draft : The exporter receives

guaranteed payment from the confirming bank in the U.S. upon presentation

of the sight draft and documents required by the letter of credit.

Mate's Receipt : Receipt of cargo by the vessel , signed by the mate

(similar to dock receipt).

No Objection Certificate : Document provided by scheduled or national

airlines of many countries declaring no objection to a proposed

charter flight operated by another airline. Often demanded by

government authorities before they grant permission for a charter

flight to take place.

Ocean Bill of Lading : A receipt for cargo in transit , and a contract

between the exporter and an ocean carrier for transportation and delivery of

goods to a specified party at a specified foreign destination. Issued

after the vessel has sailed and the cargo has been entered in the ship's

manifest.

Perils of the Sea: Most losses covered by a marine insurance policy

come within the comprehensive expression "perils of the sea," which

refers to damage caused by heavy weather , strandings , strikings on

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rocks or on bottom , collision with other vessels , contacts with floating

objects, etc.

Royalty : A charge on charter flights levied by some governments

before traffic rights are granted. Sometimes called a "no objection fee."

Usually a fixed proportion of a total charter value.

Shipment : Freight tendered to a carrier by one consignor at one

piece at one time for delivery to one consignee at one place on one

bill of lading.

Trade: A term used to define a geographic area or specific route

served by carriers.

Tramp: A tramp is a vessel that does not operate along a definite

route on a fixed schedule , but calls at any port where cargo is

available.

Unclean Bill of Lading: A bill containing reservations as to the good

order and condition of the goods , or the packaging , or both.

Examples: "bags torn;" "drums leaking;" "one case damaged;" "rolls

chafed."

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VAT (Value-Added Tax) : A sales or consumption tax which the end

user pays. Typically , this is a "hidden" tax , added to the list price of

the goods in question.

Yield: Revenue , not necessarily profitable , per unit of traffic.

CONCLUSION

Export documentation is subject to frequent change and

amendment, and requirements vary from country to country.

For accurate, up to date information, contact the

➢ International Chamber of Commerce

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 ➢ International Trade Association

➢ Trade Information Center

➢ Export Assistance Centers

➢ An embassy

➢ Consulate of the country to which you’re exporting goods.

Freight forwarders usually offer assistance with packing and

documentation along with their services for physical transportation of

goods. You may also wish to consult a professional export counselor.

BIBLOGRAPHY

http://www.tradeindia.com/communities/2/218/International-Trade-

Basics-/Common-Export-Documents.html

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ELEMENT OF EXPORT INVOICE:-

➢ Exporter

➢ Consignee

➢ Invoice No. and Date

➢ Exporter Ref.

➢ Buyer order no and date

➢ Other reference

➢ Buyer (other than consignee)

➢ Country of origin of goods

➢ Country of final destination

➢ Terms of delivery and Payment

➢ Pre-carriage by

➢ Place of receipt by pre-carrier

➢ Vessel/ Flight no.

➢ Port of loading

➢ Port of discharge

➢ Final Destination

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➢ Marks and Nos. / No & Kind of pkgs.

➢ Item code

➢ Description of goods

➢ Net weight

➢ Gross weight

➢ Quantity

➢ Rate CIF EURO

➢ Amount CIF EURO

➢ Amount in words

➢ Declaration

➢ Authorised signature

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International Transaction

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