Aligned Documentation System

Under Aligned Documentation

System, different forms used in the
International trade transaction are
printed on the paper of the same size
and in such way that the common
items of information are given the
same relative slots in each of the
documents.
ADS has been classified as under:

Commercial Documents: Commercial documents are

required for effecting physical transfer of goods and their title
from the eporter to the importer and the realization of eport
sale proceeds.
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"ut of #$ commercial documents #% have &een standardized
and aligned to one another.
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'hey are (roforma Invoice, commercial invoice, pac)ing list,
shipping instructions, intimation for inspection, certificate of
inspection of quality control, insurance declaration, certificate
of insurance, mate*s receipt, &ill of lading or com&ined
transport document, application for certificate origin,
certificate of origin, shipment advice and letter to the &an) for
collection or negotiation of documents.
Regulatory Documents: +egulatory pre,shipment eports documents
are prescri&ed the different government departments and &odies in order to
comply with various rules and regulations under the relevant laws
governing eport trade.
Such as eport inspection, foreign echange regulation, eport trade
control, customs, etc.
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"ut of - regulatory documents % have &een standardized and aligned.
'hese are shipping &ills or &ill of eport, echange control declaration ./+
0orm1, eport application doc) challan or port trust copy of shipping &ill
and receipt for payment of port charges.
Proforma Invoice
!
'he starting point of the eport contract is in the form of offer
made &y the eporter to the foreign customer. 'he offer made &y
the eporter is in the form of proforma invoice. It is a quotation
given as a reply to an inquiry.
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Importance2
#. It forms the &asis of all trade transactions.
3. It may &e useful for the importer in o&taining import license or
foreign echange.
Commercial Invoice
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Commercial invoice is an important and &asic eport document. It is also
)nown as 4Documents of contents* as it contains all the information
required for the preparation of the other documents.
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It is prepare &y the eporter after the eecution of eport order giving
details a&out the goods shipped. It is essential that the invoice is prepared
in the name of the &uyer or the consignee mentioned in the letter of credit.
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It is a prima facie evidence of the contract of sale or purchase and
therefore, must &e prepared strictly in accordance with contract of sale.
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Importance2
#. It is the &asic document useful in preparation of various other shipping
documents.
3. It is used in various eport formalities such as quality and pre,shipment
inspection, ecise and customs procedure, etc.
5. It is also useful in negotiation of documents for collection and claim of
incentives.
%. It is useful for accounting purposes to &oth eporters as well as importers.
Packing List
!
'he eporter prepares the pac)ing list to facilitate the &uyer to chec) the
shipment. It contains the detailed description of the goods pac)ed in each
case, their gross and net weight, etc.
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'he difference &etween a pac)ing note and a pac)ing list is that the
pac)ing note contains the particulars of the contents of an individual pac),
while the pac)ing list is a consolidated statement of the contents of a
num&er of cases or pac)s.
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6ormally, #7 copies of the pac)ing note8list should &e prepared. 'he first is
to &e sent with the shipping documents, two copies in advance to the &uyer,
one to the shipping agent and remaining retained &y the eporter.
ate!s "ecei#t
9
:ate*s receipt is a receipt issued &y the commanding officer of the
ship when the cargo is loaded on the ship. 'he mate*s receipt is a
prima facie evidence that goods are loaded in the vessel. 'he mate*s
receipt is first handed over to the port trust authorities.
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After ma)ing payments of all dues, the eporter or his agent collects
the mate*s receipt from the port trust authorities.
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'he mate*s receipt is freely transfera&le.
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;ill of lading is prepared on the &asis of mate*s receipt.
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'ypes of :ate*s +eceipt2
#. Clean :ate*s +eceipt2 'he commanding officer of the ship issues the
clean mate*s receipt, if he is satisfied that the goods are pac)ed
properly and there is no defect in the pac)ing of the cargo or pac)age.
3. <ualified :ate*s +eceipt2 'he commanding officer of the ship issues a
qualified mate*s receipt, when the goods are not pac)ed properly and
the shipping company does not ta)e any responsi&ility of damage to
the goods during transit.

Im#ortance:
$. It is an ackno%ledgement of goods
received for e&#ort on board the shi#.
'. It is a transferable document. It must be
handed over to the shi##ing com#any in
order to get the bill of lading.
(. )ill of Lading* %hich is the title of goods*
is #re#ared on the basis of the mate!s
recei#t.
+. It enables the e&#orter to clear #ort trust
dues to the Port ,rust Authorities.
)ill of Lading

)ill of Lading is a document issued by the shi##ing

com#any or its agent ackno%ledging the recei#ts of
goods on board of vessel* and undertaking to deliver of
goods in the like order and condition as received* to the
consignee or his order* #rovided the freight and other
charges as s#ecified in the bill have been duly #aid.

It is freely transferable by endorsement and delivery.

A bill of lading serves three main #ur#oses:

$. As a document of title to the goods-
'. As a recei#t from the shi##ing com#any- and
(. As a contract for the trans#ortation of goods.
,y#es of )ill of Lading:
#. Clean ;ill of =ading2 A &ill of lading ac)nowledging receipt of the goods
apparently in good order and condition and without any qualification is termed
as clean &ill of lading.
3. Claused ;ill of =ading2 A &ill of lading qualified with certain adverse remar)s
such as, >goods insufficiently pac)ed in accordance with the carriage of goods
&y Sea Act,? is termed as a claused &ill of lading.
5. 'ranshipment or 'hrough ;ill of =ading2 @hen the carrier uses other transport
facilities, such as rail, road or another steamship company in addition to his
own, the carrier issues a through or transhipment &ill of lading.
%. Stale ;ill of =ading2 A &ill of lading that has &een held too long &efore it is
passed on to a &an) for negotiation or to the consignee is called a stale &ill of
lading.
A. 0reight paid ;ill of =ading2 @hen freight is paid at the time of shipment or in
advance, the &ill of lading is mar)ed, freight paid.
$. 0reight Collect ;ill of =ading2 @hen the freight is not paid and is to &e
collected from the consignee on the arrival of the goods, the &ill of lading is
mar)ed, freight collect and is )nown as freight collect &ill of lading.
Im#ortance .for e&#orters/
$. It is the contract bet%een the shi##er and the shi##ing
com#any for the carriage of goods to the #ort of
destination.
'. It is an ackno%ledgement indicating that the goods
mentioned in the document have been received on
board for the #ur#ose of shi#ment.
(. A clean bill of lading certifies that the goods received
on board the shi# are in order and good condition.
+. It is useful in claiming incentives offered by the
government to e&#orters.
0. ,he e&#orters can claim damages from the shi##ing
com#any if the goods are lost or damaged after the
issue of a clean bill of lading.
Im#ortance .Im#orters/
#. It acts as document of title to goods, which is transfera&le &y
endorsement and delivery.
3. 'he eporter sends the &ill of lading to the &an) of the importer so as
to ena&le him to ta)e the delivery of goods.
5. 'he eporter can give an advance intimation to the foreign &uyer
a&out the shipment of goods &y sending him a non,negotia&le copy
of &ill of lading.
Im#ortance .1or Shi##ing Com#any/
It is useful to the shipping company for collection of transport
charges from the importer, if not collected from the eporter.
Certificate of 2rigin

,he im#orters in several countries re3uires a

certificate of origin %ithout %hich clearance to
im#ort is refused. ,he certificate of origin states
that the goods e&#orted are originally
manufactured in the country %hose name is
mentioned in the certificate. Certificate of origin
is re3uired %hen:4
a. ,he goods #roduced in a #articular country are
sub5ect to #referential tariff rates in the foreign
market at the time of im#ortation.
b. ,he goods #roduced in a #articular country are
banned for the im#ort in the foreign market.
,y#es of Certificate of 2rigin
.a1 6on,(referential Certificate of "rigin2 6on,preferential certificate of origin is
required in general &y all countries for clearance of goods &y the importer, on
which no preferential tariff is given. It is issued &y2,

'he authorized Cham&er of Commerce of the eporting country.

'rade Association of the eporting country.

.&1 Certificate of origin for availing concessions under /S(2 Certificate of origin
required for availing of concessions under /eneralized System of (references
./S(1 etended &y certain countries such as 0rance, /ermany, Italy,
;B6B=UC countries, UD, Australia, Eapan, USA, etc. 'his certificate can &e
o&tained from specialised agencies, namely,

Bport Inspection agencies.

Et. Director /eneral of foreign trade.

Commodity &oards and their regional office.

Development Commissioner, Fandicrafts.

'etile committes for tetile products.

:arine (roduct Bport Development Authority for marine products.

Development Commissioner of B(Gs.

H Certificate for Availing concessions under Commonwealth
(references .C@(12 Certificate of origin for the purpose of
Commonwealth (reference is also )nown as 4com&ined
certificate of origin and value*. It is required &y two mem&er
countries, i.e., Canada and 6ew Gealand of the
commonwealth. 0or concession under commonwealth
preferences, the certificate of origin have to &e su&mitted in
special forms o&taina&le from the high commission of the
country concerned.
.d1 Certificate for availing concessions under other systems of
preference2 Certificate of origin is also required for tariff
concessions under the /lo&al System of 'rade (references
./S'(1, ;ang)o) Agreement .;A1 and SAA+C (referential
'rading Arrangement .SA('A1 under which India grants and
receive tariffs concessions on imports and eports. Bport
inspection council .BIC1 is the sole authority to print &lan)
certificates of origin under ;A, SAA+C and SA('A which
can &e issued &y such agencies as B(Cs, DCs, of B(Gs, BIC,
A(BDA, :(BDA, 0IB", etc.

Significance of the Certificate of
2rigin
$. Certificate of origin is re3uired for availing of
concessions under 6enerali7ed System of Preferences
.6SP/ as %ell as under Common%ealth Preferences
.C8P/.
'. It is to be submitted to the customs for the assessment
of duty and clearance of goods %ith concessional
duties.
(. It is re3uired %hen the goods #roduced in a #articular
country are banned for im#ort in the foreign market.
+. It hel#s the buyer in adhering to the im#ort regulations
of the country.
0. Sometimes* in order to ensure that!s good bought from
some other country have not been reshi##ed by a
seller* a certificate of origin is re3uired.
Shi##ing )ill
! Shipping ;ill is the main customs document, required &y the customs authorities
for granting permission for the shipment of goods. 'he cargo is moved inside the
doc) area only after the shipping &ill is duly stamped, i.e., certified &y the
customs. Shipping &ill is normally prepared in five copies2
#. Customs copy.
3. Draw&ac) copy.
5. Bport promotion copy.
%. (ort trust copy.
A. Bporter*s copy.
'ypes of Shipping ;ill2,
#. Draw&ac) Shipping &ill2 It is useful for claiming the customs draw&ac) against
goods eported.
3. Dutia&le Shipping ;ill2 'his &ill is required for goods which are su&Iect to
eport duty.
5. Duty,free Shipping ;ill2 It is useful for eporting the goods on which there is no
eport duty.
Im#ortance of Shi##ing )ill
$. Shi##ing bill is the main customs document*
re3uired by the customs authorities for
granting #ermission for the shi#ment of goods.
'. ,he cargo is moved inside the dock area only
after the shi##ing bill is duty stam#ed* i.e.*
certified by the customs.
(. Duly endorsed shi##ing bill is also necessary
for the collection of e&#ort incentives offered by
the government.
+. It is useful to the customs A##raiser %hile
determining the actual value of goods
e&#oerted.
Consular Invoice
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'his is invoice is the most important document, which needs
to &e su&mitted for certification to the em&assy of the
importing country concerned. 'he main purpose of the
consular invoice is to ena&le the authorities of the importing
country to collect accurate information a&out the volume,
value, quality, grade, source, etc., of the goods imported for
the purpose of assessing import duties and also for statistical
purposes.
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In order to o&tain consular invoice, the eporter is required to
su&mit three copies of invoice to the consulate of the
importing country concerned. 'he Consulate of the importing
country certifies them in return for fees. "ne copy of the
invoice is given to the eporter while the other two are
dispatched to the customs office of the importer*s country for
the calculation of the import duty. 'he eporter negotiates a
copy of the consular invoice to the importer alongwith other
shipping documents.
Im#ortance .9&#orters/
#. It facilitates quic) clearance of goods from the customs in eporter*s as
well as importer*s country.
3. Certification of goods &y the Consulate of the importing country indicates
that the importer has fulfilled all procedural and licensing formalities for
import of goods.
5. It also assures the eporter of the payment from the importing country.
Im#ortance .Im#orters/
#. It facilitates quic) clearance of goods from the customs at the port of
destination and therefore, the importer gets quic) delivery of goods.
3. 'he importer is assured that the goods imported are not &anned for import
in his country.
Im#ortance .Customs 2ffice/
#. It ma)es the tas) of the customs authorities easy.
3. It facilitates quic) calculation of duties as the value of goods as
determined &y the Consulate is considered for the purpose.
)ill of 9ntry
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;ill of entry is a document, which states that the goods of the stated values
and description in the specified quantity have entered into the country
from a&road. 'he &ill of entry is drawn in triplicate.
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'he customs authorities may as) the importer to supply other documents
li)e invoice, &ro)er*s note and insurance policy, etc. in order to verify the
correctness of the information supplied in the &ill of entry form.
#. 0ree goods2, where the goods imported are not su&Iect to any customs
duty.
3. /oods for Fome Consumption2, @here the goods imported for self
consumption.
5. ;onded /oods2, @here the goods imported are su&Iects to customs duty,
the goods are )ept in &ond till the duty is paid.
'he importer has to fill up a separate &ill of entry form for different form
for different classes of goods. In India, separate forms are not used &ut all
the entries are made in one form. 'he free goods are mar)ed as free in the
entry form itself. 'he importer has to pay the duty &efore securing the
possessions of the goods.
Air%ay )ill
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Airway &ill, also called as an air consignment note, is a receipt issued &y
an airline for the carriage of goods. As each shipping company has its
own &ill of lading, so each airline has its own airway &ill.
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Airway &ill or air consignment note is not treated as a document of title
and is not issued in negotia&le form.
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Importance2,
#. It is contract &etween the airlines or his agent to carry goods to the
destination.
3. It is the document of instructions for the airline handling staff.
5. It acts as a customs declaration form.
%. Since, it contains details a&out freight it also represents freight &ill.
6" 1orm
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/+ form is an echange control document required &y the reserve &an) of India.
As per the echange control regulations, an eporter has to realize the proceeds
of the goods he has eported within #J7 days of their shipment from India.
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/+ form is to &e su&mitted in duplicate to the Customs at the port of shipment
along with shipping &ill. Customs will give their running serial num&er on &oth
the copies after admitting the customs shipping &ill. Customs authorities will
certify the value declared &y the eporter on &oth the copies of the /+ form at
the space earmar)ed and will also record the assessed value. 'hey will then
return the duplicate copy of the form to the eporter and retain the original for
transmission to the +;I. @ithin 3# days from the shipments of goods, eporter
must lodge the duplicate of /+ together with relative shipping documents with
the authorized dealer named in the /+ form for negotiation of eport &ills.
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After the documents have &een negotiated, the authorized dealer will report the
transaction to the +;I. 'he duplicate copy of /+ form together with a copy of
invoice will &e retained &y the authorized dealer till full eports proceeds have
&een realized and thereafter su&mitted to the +;I.
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"n account of introduction of Blectronic Data Interchange .BDI1 system a
certain customs offices were shipping &ills are processed electronically, the
eisting declaration in /+ form has &een replaced &y a declaration in form SD0
.Statutory Declaration 0orm1.
ate!s recei#t v:s bill of lading
1. Meaning2, :ate*s receipt is a
receipt issued &y the
commanding officer of the ship
when the cargo is loaded on the
ship.
2. Purpose2, It is issued in order
to ena&le the eporter or his
agent to secure &ill of lading
from the shipping company.
3. Issuing Authority2, It is issued
&y the Commanding officer of
the ship or his mate.
4. Evidence2, It is an evidence of
goods having &een loaded on
&oard the ship.
1. Meaning2, ;ill of lading is the
official document issued &y the
shipping company ac)nowledging
the receipt of goods on &oard the
vessel.
2. Purpose2, It is issued in order to
ena&le the importer to ta)e the
delivery of goods at the port of
destination.
3. Issuing authority2, It is issued &y
the shipping company or its agent.
4. Evidence2, It is a contract
&etween the shipper and the
shipping company for the carriage
of goods to port of destination.
5. Types2, It is of two types,
.a1 Clean :ate*s +eceipt
.&1 <ualified :ate*s +eceipt.
$. Details o !reight2, It does
not specify whether the
freight is paid on goods or
not.
K. Title o goods2, It is not a
document of title of goods.
J. "egotia#ility2, It is not a
negotia&le document.
-. $e%uence2, It is prepared
&efore the &ill of lading.
5. Types2, Several types,
.a1 Clean and claused ;8=.
.&1 Stale ;8=.
$. Details o !reight2, It does
specify whether &ill of
lading is freight paid or not.
K. Title o goods2, It is a
document of title of goods.
J. "egotia#ility2, It is a
negotia&le instrument.
-.$e%uence2, It is prepared on
the &asis of the mate*s
receipt.
Certificate of 2rigin v:s Consular
Invoice
1. Meaning2, Certificate of origin
states that the goods eported are
originally manufactured in the
country whose name is mentioned
in the certificate.
2. Purpose2,
.a1 for claiming the &enefits of
preferential tariff rates.
.&1 in case goods produced in a
particular country are &anned for
import in the foreign mar)et.
3. &egislation2, It does not require
any legislation from the consulate
of the importing country situated in
the eporting country.
4. Issuing Authority2, It is issued &y
the Cham&er of Commerce, Bport
(romotion Councils or Authorized
'rade association.
#. It is a certificate issued &y the
consulate of importer*s country
situated in the eporter*s country
certifying the volume, value,
quality, etc., of the goods imported.
3. Consular invoice is required in
order to provide accurate
information a&out the volume,
value, quality, etc., of the goods
imported to the authorities of the
importing country for the purpose
of assessing import duties.
5. It does requires legislation from the
Consulate of the importing country
situated in the eporting country.
%. It is issued only &y the Consulate
of the importer*s country situated
in the eporter*s country.
Commercial Invoice v:s Consular
Invoice
1. Meaning2, Commercial Invoice
is the statement of account of
sale prepared &y the eporter
after the eecution of eport
order giving details a&out the
goods shipped.
2. Purpose2,

In preparation of various
shipping documents.

In (re,shipment inspection,
ecise and customs clearance.

In negotiation of documents for

collection and claim of
incentives.
#. Consular invoices is a certificate
issued &y the Consulate of the
importer*s country situated in the
eporter*s country certifying the
volume, value, quality, grade,
sources, etc., of the goods
imported.
3. It is required in order to provide
accurate information a&out the
volume, quality, grade, value,
source, etc., of the goods
imported to the authorities of the
importing country for the purpose
of assessing import duties.
5. $igniicance2, It is a
primary document and is
required for the preparation
of various other shipping
documents.
%. 'ontents2, It contains the
terms and conditions of sale
as well as detailed
description of the goods to
&e eported.
A. 'ost2, since, it is prepared
&y the eporter himself he
needs not to pay any
charges for the same.
(. It is a secondary
document and as such is
re3uired %hen desired by
the im#orter.
+. It contains accurate
information about the
volume* value* 3uality*
grade* source* etc.* of the
goods e&#orted.
0. It is issued by the
Consulate of the
im#orting country in
return for a nominal fees.