Export Procedure

There are 4 stages of Export Procedure: I. II. III. IV. Registration Stage Pre-shipment Stage Shipping Stage Post-shipment Stage

I. REGISTRATION STAGE
1) Registration of Organisation
Joint Stock Company Companies Act, 1956 Partnership Firm Partnership Act, 1932

Trader Local Authorities

2) Open a bank account Current account in any Indian bank that is authorised by RBI to deal in Foreign Exchange. 3) IEC Number(Importer-Exporter Code Number) A license given by DGFT (Director General for Foreign Trade) of the respective state.

4) PAN (Permanent Account Number) Provided by the Income Tax Department. 5) Register at Sales Tax office For exemption from sales tax.

6) EPC (Export Promotion Council) EPC will provide RCMC (Registration cum membership certificate). 7) ECGC (Export Credit & Guarantee Corporation) For assurance to exporter against payment risk.

8) Other Authorities: IIP (Indian Institute of Packaging) FIEO (Federation of Indian Export Organisation) IIFT (Indian Institute of Foreign Trade)

NPC (National Productivity Council)

II. PRE-SHIPMENT STAGE

1) Approach buyers Carry out promotional activities for product. 2) Inquiry & Offer Potential buyer will make inquiry & we will provide necessary information (quotation),which is known as Proforma Invoice.

3) Export Order confirmed Potential buyer will return two copies of the Proforma Invoice, & keep one copy with himself to confirm the order.

4) Issue of Letter of Credit (L/C) Importers bank will issue Letter of Credit.

5) Procuring Pre-shipment Finance Finance required to produce the goods will be procured. 6) Production/Procurement In case of manufacturer exporter, goods will be produced, whereas a merchant exporter will procure the goods to be exported.

7) EIA (Export Inspection Agency) An inspector from the agency will inspect the goods & give a Pre-shipment Inspection Certificate, if the goods are ok.
8) Packing/Marking Suitable & appropriate packing & marking of the goods.

9) Excise Duty Excise Duty is to be paid, which will be reimbursed after the export of the goods is confirmed - rebate - bond
10) Insurance
ECGC - credit risk Marine Insurance goods transit risk

11) C&F Agent (Clearing & Forwarding Agent) The goods will be sent to the C&F agent in the port city.

III. SHIPMENT STAGE

Shipping Company Port Trust Authorities Port City 2

5
5

Dock Port Superintendent

Exporter

Ship

4 3 6

Customs Appraiser
Customs Examiner Customs Preventive Officer

C&F Agent 7

1) Reservation of Shipping space The exporter will contact the shipping company, & the shipping company will issue a Shipping Bill/Order to the exporter & a copy will be sent to the ships captain.

2) Internal transportation The goods will be transported to the port city & the exporter will receive a Rail Reciept. 3) Preparing documents The exporter will prepare all necessary documents & send it to the C&F agent.

4) Customs Clearance C&F agent will get customs clearance from Customs Appraiser. 5) Carting Order C&F agent will get carting order from Port Superintendent which is a permission to load the goods on the dock.

6) Let Export Order Customs Examiner will check the goods & give the Let Export order if goods are ok. 7) Let Ship Order Customs Preventive Officer will give the Let Ship order after checking with Customs Appraiser & Customs Examiner.

8) Mates Reciept After the goods are loaded on the ship, the captain will issue a Mates reciept to the Port Superintendent. The C&F agent will collect it when he pays all outstanding dues. 9) Bill of Lading The shipping company will issue Bill of Lading after it gets confirmation from the ships captain that goods have been exported.

IV. POST-SHIPMENT STAGE

1) C&F agent sends documents to exporter. 2) Exporter sends Shipment Advice to Importer. 3) Documents are submitted to Exporters bank. 4) Despatch of documents to Importers bank.

5) Bill of Exchange (B/E) is sent by exporters bank to importers bank. 6) Letter of Indemnity between exporter & his bank. 7) Importers bank sends documents to importer & receives payment. This payment is sent to exporters bank & credited in his account. 8)Duplicate GR Form is sent to RBI. 9) RBI verifies the order sent with the information on the GR Form.