In India, export is treated as a highly respected activity and is considered to be a well organized sector. Exporting goods from India to any other country is a long procedure and involves registration with various authorities, getting quality certification, obtaining finance, appointment of customs house agents, negotiation with bank, compliance with tax authorities and documentation. In this module, we will understand the procedure for exporting goods from India including the need and importance of trade documents involved in export business.
First and foremost, a potential exporter should get his organization registered with various authorities as a member / contributor so as to fulfill Government orders satisfactorily. An exporter can register with the following organizations:
Registration of the organization: Registration of an organization with respective authority is required for to earn the title of firm / private / public company limited. It facilitates legal identification for the organization which helps in obtaining trade contracts and several statutory registrations. In India, a company shall get itself registered under Companies Act, 2013, a partnership firm under Indian Partnership Act, 1932, a cooperative society under Cooperative Societies Act and a sole proprietor might have to obtain Gumasta / Shop Establishment.
Opening a Bank Account: A potential exporter should open a current account with a Bank authorized to deal in Foreign Exchange.
Obtaining Permanent Account Number (PAN): An exporter as well as an importer should apply for PAN and obtain it from the Income Tax Department. This PAN is useful for further registrations and other income tax purpose.
Registration with the DGFT for IEC: An exporter should first apply and obtain Importer Exporter Code from the Directorate General of Foreign Trade. This IEC is a 10 digit unique code issued by the DGFT which is mandatory for every exports and imports. Such IEC is not required for service exporters. One should possess PAN Card, Bank Details and address proof of business documents while applying for IEC following an application fee of Rs. 500/-. Click here to explore step by step guidance of obtaining IEC.
GST Registration: An international should get his business registered under the Indian GST provisions. Such a registration allows the exporter to claim input tax credit on his purchases. An exporter / importer may be required to pay GST to the Government, which can happen only by way of registration and obtaining GSTIN. Click here to explore GST registration portal.
Registration Cum Membership Certificate (RCMC): Exporters are required to get themselves registered with specific export promotion authorities like Export Promotion Council or Federation of Indian Export Organization (FIEO) or Commodity Boards and obtain RCMC so as to claim several benefits and concessions under India's Foreign Trade Policy. Registration is subject to fees ranging from INR 6,250/- to INR 93,750/- depending on the export category type. Click here to understand more about obtaining RCMC from FIEO website.
Other Registrations: An exporter may get his business registered with several other export and product promotion organizations like Chambers of Commerce, Indian Institute of Foreign Trade, Export credit Guarantee Corporation, Indian Institute of Packing, Quality Council of India, ITPO, etc.
Every export activity involves a set of activities to be performed by the exporter. This includes right from the phase of registration to preparation and submission of export documents to Banks and Government authorities. Here, we will understand the complete procedure before shipping the goods to the destination.
Necessary Registration: An exporter should first get necessary registrations including Importer-Exporter Code, GST, Export Promotion Council (for availing trade benefits under Schemes of Government of India), Trade Map (for market understanding and analysis), India Trade Portal (for trade data), Cybex (for international trade data), etc.
Order Confirmation: Through various marketing approach, an exporter receives orders fro overseas buyers and examines it carefully considering the product, quantity, specification, type, payment conditions, packaging, delivery schedule, etc. and confirm the order by communicating with the overseas buyer. Accordingly, the exporter can enter into a formal contract with the overseas buyer.
Obtaining Letter of Credit: Letter of Credit is a guarantee given by the importer's bank to the exporter for payment on behalf of the importer. Letter of credit is required to be obtained by the exporter during high value sales as a matter of safety and guarantee. Obtaining Letter of Credit involves a process which is discussed later in this module.
Obtaining Packing Credit: An exporter can obtain working capital finance from his banker or an export promotion agency for making his goods ready for dispatch at concessional rates. Such packing credit can be used for purchase of raw materials, finished goods, labor charges, packing, inspection, transportation, etc. The exporter is required to file an application with the concerned bank / financial institution along with a copy of Letter of Credit, Export Contract and document of collateral security.
Procurement of materials / goods: Depending on the order, the exporter will have to make arrangements to procuring the materials (in case of a manufacturer) or goods (in case of a trader) so as to apply necessary inspection and get it ready for dispatch. An exporter is also supposed to send samples to the overseas buyer in case of essential and huge orders. The exporter should make sure that the materials / goods are as per the buyer's requirement.
Product Packaging, Labeling, Packing and Marking: The exportable goods should be well packaged with quality material as specified by the buyer. Such packaging should have contain required labeling as per importing country norms. The goods should be well packed in cartons or wooden box and should be appropriately marked with vital details like country of origin, package number, port of shipment, place of destination, net weight, content, handling instructions, etc.
Quality Approval: Maintaining quality at international is a key area where every has to focus. In India, Export (Quality Control and Inspection) Act was passed in 1963 with a view to not allow exports unless certificate of export worthiness is obtained from the Export Inspection Council or any authority.
Inspection of goods can be conducted as follows:
(a) Consignment wise Inspection: Under this method, inspection process should be completed before sealing the parcels by the customs authorities. The production department of the exporting company has to submit an application to the concerned Export Inspection Agency on a prescribed form called 'Notice of Inspection' along with a copy of Commercial Invoice, Export Contract, Buyer's Specifications, Payment voucher for the inspection fee. The exporter receives the health / authenticity / laboratory testing certificate in three copies where one is retained by the exporter, one is sent to the importer and other copy is submitted to customs authority for allowing shipment of goods.
(b) In Process Quality Control: Organizations having various process along with established in process quality controls and checks need to submit application to the Export Inspection Agency for getting 'export worthy' recognition. The Export Inspection Agency carry out thorough inspection of all the in house process and gives an approval for further proceeds, if satisfied. Meanwhile, the exporter shall complete his production and shall declare about quality control based on his own inspection. Based on this declaration, the Export Inspection Agency issues Quality Inspection Certificate.
(c) Self Certification: Self certification is allowed to certain exporters who have proven quality reputation. This can be availed by manufacturers of engineering goods, chemicals and other allied products and the same is valid for one year. This allows exporters to issue pre shipment inspection certificate for the exportable goods. In India, Star Export House are eligible for self certification for authorization and customs clearance.
Booking of Shipping Space: Once contractual terms are agreed upon, the exporter heads up with booking shipping space as per specification and dimension of the goods. This is applicable for the exporter when he comes into CFR or CIF contract which makes the exporter to arrange for shipping. The exporter need to furnish details related to the goods to the shipping company including several documents like export contract, place of loading and discharge, invoice, etc. Generally, space booking is undertaken by a Customs Agent appointed by the exporter.
Custom Clearance: Custom clearance is the process of getting a green signal for loading the goods in to the vessel. It includes several operating documental procedures which has to be followed by the exporter or the Custom House Agent appointed by him. Customs procedure allows an exporter to represent themselves and their goods to the customs authorities including document assessment and payment of certain charges for releasing the cargo. For successful customs clearance, an exporter should be registered, should have export contract, shipping bill and examination of goods by the customs authority at the port premises.
Marine Insurance: An exporter has to arrange for marine insurance in case of CIF contract. As per CIF contract, it's the exporter who arranges for insurance and freight. Marine freight is a risk management technique against odds such as sinking, stranding, fire, leakage, theft, natural perils, wars, strikes, explosion, etc. including cargo loading and unloading damages. Such insurance policies are not only limited to the extent of sea transit but can also covers rail, road and air transportation. Some of the companies marine insurance in India are HDFC Ergo, TATA AIG, Royal Sundaram, Bharti AXA, New India Assurance Com. Ltd., etc.
Appointment of Customs House Agents: Customs house agents are specialized professionals having expertise and knowledge about export process and documentation. They help exporters to arrange for customs clearance, payment of port trust dues, storing of goods, obtaining vital clearance documents and even booking space on the ship.
For loading the goods into the ship, it is necessary to obtain clearance from custom authorities. Prior 1992, exporting goods from India to any other nation was an intricate task. Today, India has a liberalized system for import and export of goods with an inclusion of technology and software matching needs of the stakeholders. Let's understand the steps involved in export clearance:
Generation of Shipping Bill: The ICEGATE platform provides EDI-based e-filing services, including electronic filing of Shipping Bills. Here is the process:
Registration of the exporter/Customs House Agents (CHA) with the EDI system using the IE code, AD code, and/or CHA License number.
Online submission of the Shipping Bill in the prescribed format at the Customs service centers, along with copies of required documents, including the invoice and packing list.
Verification of the checklist that is generated upon submission, by the exporter or the CHA.
Submission of the verified checklist into the EDI by the service center operator. The exporter or the CHA retain a printed copy of the checklist with the Shipping Bill number endorsed on it.
Status of the Shipping Bill and any queries related to it can be resolved at the service center.
Obtaining Carting Order: Carting Order enables the exporter to bring the goods inside the dock premises. It is issued by the Superintendent of the Port Trust only after verifying the Shipping Bill. Once the goods are brought inside the port, they can be sorted and stored appropriately.
Custom Warehousing and Examination: Goods are stored in the port warehouse till the ship arrive. At the same time, examination of goods take place which gives an approval whether goods cane be headed further. At this stage, goods undergo an examination by the Customs Examiner who issues 'Let Export Order' in case of satisfactory remarks. This 'Let Export Order' is verified by the Customs Preventive Officer who then issues 'Let Ship Order' which allows the exporter to load the goods in to the ship.
Loading of Goods: Goods are loaded into the vessel as per terms using labor and cranes only after verification of 'Let Ship Order'. For every successful load, the Cargo officer issues Mate's Receipt. Mate's Receipt is an acknowledgement given by the shipping company about the number of packages of goods loaded into the ship in a particular condition.
Obtaining Bill of Lading: Bill of Lading is the filing version of Mate's Receipt which acts as a proof that goods have been loaded into the vessel and are in transit. The exporter exchanges Mate's Receipt with the shipping company for Bill of Lading which comes in negotiable / non-negotiable copies.
Payment to PTA and CHA: The exporter has to may payment to the Port Trust for making use of the port space and also the Customs House Agents for several services provided by them.
An export transaction is backed by several documents acting as evidence for every task and activity involved in export. Documentation starts right from creating an export contract, terms of payment, export order, Shipping Bill, Commercial Invoice, Consular Invoice, Customs Invoice, Certificate of Origin, Packing List, Certificate of Quality and Inspection, Airway Bill / Bill of Lading, Guaranteed Remittance and many more. Let's go some of these documents and understand it's importance in international trade.
Shipping Bill is a vital document required by the Customs Authority for permitting shipment of goods. Hence, it is a very important document when it comes to clearance. In India, goods cannot be brought into the dock area / airport without having a proper shipping bill. It is issued by the shipping agent on behalf of the parties, including the buyer, seller, C&F agent / Freight Forwarder / Customs Broker, etc. It is generated in 5 copies and contains information like name and address f the exporter, number and description of packages, quantity and value of goods send, name of registered vessel on which goods are to be transported, country of origin and destination, port of discharge and any other details.
Benefits for Exporters:
Export Clearance: The shipping bill acts as the primary document authorizing the physical export of goods from the country. Once approved by customs authorities, it allows the goods to be loaded onto the ship or aircraft for transportation.
Documentation Efficiency: The shipping bill electronically collates information from various export documents, simplifying the process and reducing the need for multiple submissions.
Export Incentives: Certain government export incentive schemes like duty drawbacks or export promotion schemes may require the submission of a shipping bill as proof of export.
Trade Statistics: The shipping bill contributes to the compilation of trade statistics by providing detailed information about exported goods, which can be valuable for market research and policy development.
Benefits for Importers:
Advance Planning: While not directly applicable to importers, the information provided in the shipping bill allows them to anticipate the arrival of their goods and make necessary arrangements for receiving and clearing them through customs.
Verification: In some cases, importers might request a copy of the shipping bill from the exporter to verify details like the quantity, description, and value of the goods being shipped.
Benefits for the Government:
Trade Monitoring: The shipping bill system allows governments to monitor and track the flow of goods leaving the country, providing valuable data for trade analysis, policy development, and identification of potential trade imbalances.
Revenue Protection: By verifying the details of the exported goods, the shipping bill helps customs authorities ensure proper duty collection and prevent under-invoicing practices that could lead to revenue loss.
Security & Compliance: The electronic filing system associated with shipping bills enhances transparency and streamlines the process, facilitating better control over exports and aiding in security measures.
Data for Policymaking: Information collected from shipping bills can inform policies related to export promotion, trade facilitation, and trade agreements.
When goods are imported, it is important to know where they are coming from and where are they manufactured. The answer to this is Certificate of Origin. This document certifies the origin of the exportable goods so as to make the import clearance easy for the importer. This document shines when importers head to claim extra duty drawback due to the preferential trade agreement with the exporting country. In India, CoO is issued by the FIEO and Indian Chambers of Commerce. There are two types of CoO namely (a) Preferential CoO - for goods subject to preferential trade agreements where there is a slash in duties and (b) Non-preferential CoO - for goods not given any preferential tariff treatment and duties shall by levied as per the existing rates.
Benefits for Exporters:
Tariff Preferences: Under Free Trade Agreements (FTAs) and other trade agreements, a CO can qualify exporters for reduced import duties or even duty-free entry for their goods in the importing country. This translates to significant cost savings and increased competitiveness in the target market.
Market Access: Some countries might restrict imports of certain goods unless they originate from specific countries. A valid CO can facilitate smoother market access for exporters by fulfilling such requirements.
Credibility and Trust: A CO acts as official confirmation of the origin of the goods, enhancing the credibility and trustworthiness of the exporter among potential buyers in the importing country.
Anti-Dumping Measures: In cases where anti-dumping duties are imposed on specific products from certain countries, a CO can help exporters demonstrate their product's origin and potentially avoid such penalties.
Benefits for Importers:
Compliance with Regulations: Importers can ensure compliance with their country's import regulations by verifying the origin of the goods through a CO. This is especially crucial for products subject to quotas, specific licensing requirements, or anti-dumping measures.
Product Quality and Standards: Depending on the issuing authority and the specific trade agreement, a CO might indirectly provide some assurance regarding the quality and standards of the imported goods, facilitating informed purchasing decisions.
Customs Clearance: In certain scenarios, a CO can expedite customs clearance by providing necessary information to customs authorities, potentially reducing delays and simplifying the process.
Benefits for the Government:
Trade Policy Implementation: The information provided in COs assists governments in monitoring and enforcing trade agreements and ensuring their intended benefits are realized.
Data Collection and Analysis: CO data contributes to the compilation of valuable trade statistics, aiding governments in analyzing trade patterns, identifying potential trade violations, and formulating effective trade policies.
Consumer Protection: In some cases, COs might indirectly contribute to consumer protection by ensuring that imported goods meet specific quality or safety standards established by the government.
Negotiation and Monitoring: CO data can be used by governments during negotiations of trade agreements and for monitoring compliance with existing agreements.
A certification of the goods by the Embassy of the importing country located in the exporting country is called Consular Invoice. Many countries like Kenya, Tanzania, Uganda, New Zealand, Myanmar, Philippines, Iraq, Australia, Nigeria, Ghana, Cyprus, Nigeria, etc. require Consular Invoice from their embassies located in the exporting country so as to vouch and obtain accurate information regarding volume, quality, grade, source, etc. of the importing goods. An exporter can obtain Consular Invoice by approaching the Consulate with required trade documents along with certain fees.
Benefits for Exporters:
Compliance with Import Requirements: In countries mandating consular invoices, having a valid document allows for smoother clearance of goods through customs, avoiding delays and potential issues.
Verification of Documents: Consular officials review the invoice, which can act as a preliminary check for accuracy and completeness of the information provided, potentially reducing the risk of discrepancies later in the process.
Benefits for Importers:
Limited Assurance: While not a guarantee of quality or compliance, the consular review might offer some limited assurance to importers that the information on the invoice has been verified by a neutral party.
Benefits for Governments:
Limited Scope: While the benefits for governments are limited compared to other documents, consular invoices can provide some additional information and contribute to trade data collection in countries that require them. However, this benefit exists to a lesser extent compared to documents like the shipping bill or certificate of origin.
Important Considerations:
Limited Use: It's crucial to remember that not all countries require consular invoices. They are only mandatory in specific countries and for certain types of goods. It's essential to check the specific requirements of the destination country before proceeding with the process.
Alternative Documents: In many cases, documents like the commercial invoice and other required export documents might be sufficient for customs clearance in countries that don't mandate consular invoices.
Commercial Invoice is the most basic document in export which becomes a foundation for creation of other documents. It is a legal document which describes the goods and quotes the amount which is charged by the exporter. Commercial Invoice is issued by the exporter and acts as an evidence of sale / contract. Companies have their own style of preparing Commercial Invoice based on the kind of ERP they use. A Commercial invoice contains name and address of the shipper / exporter, name and address of the buyer / importer, description of goods, value of goods, terms and conditions, shipment details such as name of the vessel, Letter of Credit No., Bill of Lading No., IEC of the exporter, packing specifications, freight terms, marine insurance, shipping bill details, etc.
Benefits for Exporters:
Proof of Sale: The invoice serves as legal documentation of the sales transaction, protecting the exporter's rights in case of disputes with the importer.
Customs Clearance: It facilitates the smooth clearance of goods through customs by providing essential information for valuation and duty assessment.
Payment Facilitation: Banks and financial institutions rely on the invoice for processing payments, especially when Letters of Credit (LC) are used.
Record Keeping: The invoice is an essential record for the exporter, enabling them to track sales, maintain accurate financial records, and claim any applicable export incentives.
Benefits for Importers:
Import Clearance: The invoice plays a crucial role in import clearance by providing information required by customs authorities to assess duties and taxes.
Verification of Purchase: The importer can verify the details and accuracy of the purchased goods against the agreed-upon specifications and pricing.
Payment Reference: The invoice serves as a reference document for the importer when making payments to the exporter as per the agreed terms.
Record Keeping: Similar to exporters, importers can maintain accurate records of their purchases and payments for accounting and tax purposes.
Benefits for the Government:
Trade Monitoring: Commercial invoices allow governments to monitor and track the flow of goods across their borders, aiding in developing trade statistics and formulating trade policies.
Revenue Collection: The information on the invoice helps customs authorities determine the correct import duties and taxes, allowing the government to collect revenue efficiently.
Fraud Prevention: Accurate invoices can help identify and prevent potential undervaluation of goods, thereby ensuring fair trade practices and preventing loss of revenue.
Policy Development: Data gathered from commercial invoices can inform the development of trade policies and initiatives aimed at promoting specific industries or fostering international trade.
This document is issued by the shipping company to the exporter on shipment of goods. It acts as a contract between the shipping company and the exporter to carry the acknowledged goods from the port of loading to the port of discharge. There are various types of Bill of Lading such as Clean BL, Claused BL, Stale BL, Container BL, Straight B, Freight Paid BL, To Order BL, etc. It contains information such as name of the shipping company, name and address of the exporter, name and address of the buyer, name of the ship, date of voyage, description of goods, number of packages, condition of goods, freight payment status, etc.
The Bill of Lading (BOL) plays a crucial role in international trade by serving as a document of title, contract of carriage, and receipt for the goods being shipped. It offers distinct benefits to various stakeholders:
Benefits for Exporters:
Proof of Shipment: The BOL serves as irrefutable evidence that the goods have been delivered to the carrier in good condition, protecting the exporter's rights in case of disputes with the carrier or importer.
Payment Security: For certain payment terms like Letters of Credit (LC), the BOL is essential for claiming payment from the importer. The bank holding the Letter of Credit typically releases payment to the exporter only upon presentation of the original BOL.
Financing: The BOL can be used as collateral to secure financing from banks for pre-shipment or post-shipment loans, facilitating improved cash flow for exporters.
Track and Trace: Modern BOLs often offer online tracking features, allowing exporters to monitor the real-time location and status of their shipment throughout the journey.
Benefits for Importers:
Proof of Ownership: Upon receiving the original BOL and paying the freight charges, the importer gains legal ownership of the goods and can take possession from the carrier at the destination port.
Clearance of Goods: The BOL is a crucial document required for customs clearance at the destination country.
Claims Against Carrier: In case of damage or loss of goods during transportation, the importer can use the BOL to file claims against the carrier.
Benefits for Governments:
Trade Monitoring: The information within BOLs, such as the nature and value of goods, contributes to compiling trade statistics, providing valuable data for analysis and policy formulation.
Cargo Security: Certain types of BOLs, like "received for shipment" bills, can act as a basic control mechanism for governments, offering a record of goods leaving the country.
1. Preliminary Setup:
a. Obtain IEC (Import Export Code):
Apply online through the DGFT website (https://www.dgft.gov.in/) or designated facilitation centers.
Submit required documents like PAN card, company registration documents, etc.
Processing time typically takes 3-5 working days.
b. Register with EPC (Export Promotion Council):
Identify the relevant EPC for your industry (e.g., Engineering Export Promotion Council, Apparel Export Promotion Council etc.).
Membership entails benefits like participation in trade fairs, market information, and access to training programs.
Application process and fees vary among different EPCs.
c. Open a Bank Account:
Choose a bank offering services like export finance, foreign currency accounts, and online trade transaction capabilities.
Required documents typically include IEC certificate, company registration papers, and KYC documents.
2. Receive an Order & Assess Feasibility:
a. Inquiry and Order:
Respond to inquiries from potential buyers with detailed product information, pricing, and payment terms.
Negotiate and finalize the order, clearly outlining specifications, delivery schedule, incoterms (international trade terms), payment methods, and dispute resolution mechanisms.
b. Check Restrictions:
Consult the DGFT's website (https://www.dgft.gov.in/) to verify if your intended goods require an export license or are subject to any restrictions based on quantity, value, or destination country.
c. Calculate Profitability:
Factor in:
Production cost of goods
Packaging and labeling expenses
Inland transportation costs
Export duty (if applicable)
Freight forwarding and shipping charges
Marine insurance premium
Bank charges for handling export transactions
3. Obtain Licenses & Clearances (If needed):
a. Special Licenses:
Certain goods require specific licenses or permits beyond the IEC, such as:
Drug licenses for pharmaceutical products
Food safety and quality certificates for food items
Bureau of Indian Standards (BIS) certifications for specific products
b. Quality Clearances:
Some products require pre-shipment inspections by government-authorized agencies to ensure they meet quality standards:
Export Inspection Council (EIC) for various manufactured goods
Agricultural and Processed Food Products Export Development Authority (APEDA) for agricultural and food products
4. Production / Procurement of Goods:
a. Production:
Ensure production adheres to the agreed specifications and quality standards.
Maintain proper documentation of production costs and materials used.
b. Procurement:
For a merchant exporter, source the goods from reliable suppliers and negotiate favorable terms.
Ensure product quality and timely delivery as per the export order.
5. Secure Freight Forwarder & Insurance:
a. Appoint a Forwarder:
The exporter must choose a reputable freight forwarder or Customs House Agent (CHA) with expertise in your product category and destination country.
The CHA will handle various logistics tasks, including:
Packing and labeling as per international regulations
Documentation (shipping bill, commercial invoice, etc.)
Customs clearance
Freight booking and transportation
b. Obtain Marine Insurance:
Purchase marine insurance to protect your goods against loss or damage during transportation.
Coverage options and premiums vary depending on the value of the goods, route, and specified risks.
6. Prepare & Submit Shipping Documents:
a. Commercial Invoice:
This document serves as a detailed bill of sale containing information like:
Seller and buyer information
Product description (quantity, weight, unit price, total value)
Incoterms (specifying responsibility and risk transfer points)
Payment terms
b. Packing List:
This document provides a detailed breakdown of the contents in each package within the entire consignment, including:
Package number, weight, and dimensions
Description of items in each package
Harmonized System (HS) code of the goods
c. Other Documents:
Additional documents might be required depending on the nature of the goods and destination country, such as:
Certificate of origin (to confirm the country of origin of the goods)
Bill of lading (issued by the shipping company as a receipt for the goods)
Phytosanitary certificate (for plant and plant products)
7. Customs Clearance & Shipping:
a. Shipping Bill:
The CHA electronically files the shipping bill on the ICEGATE portal (https://icegate.gov.in/), which is the Indian Customs Electronic Gateway.
This document provides details about the shipment, including:
Description of goods
Value of the shipment
Port of loading and destination
Export duty (if applicable)
b. Inspection:
Customs officials may randomly select shipments for physical inspection or request specific documentation based on risk assessment.
Cooperate with customs officials and provide any requested information or documentation promptly.
c. Payment of Duty:
If your goods are subject to export duty, you'll need to pay the applicable amount before customs clearance is granted.
Duty rates vary depending on the product category and are listed in the Schedule of Customs Tariff (SCT).
d. Let Export Order:
Once the shipment has undergone scrutiny and all requirements are met, customs issues a "Let Export" order, authorizing the physical export of the goods.
e. Loading and Shipping:
The goods are loaded onto the chosen mode of transport (ship, airplane) under the supervision of customs officials.
The shipping company issues a Bill of Lading (BL) as a receipt for the goods and a contract of carriage.
8. Realization of Export Proceeds & Incentives:
a. Send Documents to Buyer:
Forward the necessary documents (commercial invoice, packing list, BL, etc.) to the buyer through your bank for collection and payment.
The specific documents required may vary depending on the agreed payment terms (e.g., Letter of Credit).
b. Payment Receipt:
Once the buyer receives the documents and fulfills the payment terms, the funds are transferred to your bank account.
Ensure you receive the full payment as per the agreed terms.
c. Availing Incentives:
The Indian government offers various export incentives to promote exports.
These may include:
Duty drawbacks (refunds of customs duties paid on imported inputs used in export products)
Merchandise Exports from India Scheme (MEIS) - providing duty credit scrip based on the value of exports
Market Development Assistance (MDA) - financial assistance for participating in international trade fairs and marketing activities
Explore relevant schemes and consult your bank or the DGFT website (https://www.dgft.gov.in/) for more information and application procedures.