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CASE STUDY I

Subject: Business Environment

MBA SY Sem III

PANKAJ KAPSE

Roll No: 18

MBA SY Sem III

SRTMUN

Sub Centre LATUR

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EXPORT PROCEDURES |HEWLLEET

PACKARD}

Certain documentation takes place whileexporting from India. Special documents maybe required depending on the type of productor destination. Certain export products mayrequire a quality control inspection certificatefrom the Export Inspection Agency. Some foodand pharmaceutical product may require ahealth or sanitary certificate for export.

Shipping Bill/ Bill of Export is the maindocument required by the Customs Authorityfor allowing shipment. Usually the ShippingBill is of four types and the major distinctionlies with regard to the goods being subject tocertain conditions which are mentionedbelow:

y Export duty/ cessy Free of duty/ cessy Entitlement of duty drawbacky Entitlement of credit of duty under

DEPB Schemey Re-export of imported goods

The following are the documents required for the processing of theShipping Bill:

y GRforms (in duplicate) for shipment to all the countries.

y 4 copies of the packing list mentioning the contents, quantity,gross and net weight of each package.

y 4 copies of invoices which contains all relevant particulars likenumber of packages, quantity, unit rate, total f.o.b./ c.i.f.value, correct & full description of goods etc.

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

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y AR4 (both original and duplicate) and invoice.y Inspection/ Examination Certificate.y The formats presented for the Shipping Bill are as given below:y White Shipping Bill in triplicate for export of duty free of goods.y Green Shipping Bill in quadruplicate for the export of goods

which are under claim for duty drawback.y Yellow Shipping Bill in triplicate for the export of dutiable

goods.y Blue Shipping Bill in 7 copies for exports under the DEPB

scheme.

Note :-For the goods which are cleared by Land Customs, Bill ofExport (also of4 types - white, green, yellow & pink) is required

instead of Shipping Bill.Documents Required for Post Parcel Customs Clearance

In case of Post Parcel, no Shipping Bill is required. The relevantdocuments are mentioned below:

y Customs Declaration Form - It is prescribed by the UniversalPostal Union (UPU) and international apex body coordinatingactivities of national postal administration. It is known by the

code number CP2/ CP3 and to be prepared in quadruplicate,signed by the sender.y Despatch Note, also known as CP2. It is filled by the sender to

specify the action to be taken by the postal department at thedestination in case the address is non-traceable or the parcel isrefused to be accepted.

y Prescriptions regarding the minimum and maximum sizesof the parcel with its maximum weight :Minimum size: Total surface area not less than 140 mm X 90mm.

Maximum size: Lengthwise not over 1.05 m. Measurement ofany other side of circumference 0.9 m./ 2.00 m.Maximum weight: 10 kg usually, 20 kg for some destinations.

y Commercial invoice - Issued by the seller for the fullrealisable amount of goods as per trade term.

y Consular Invoice - Mainly needed for the countries like Kenya,

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Uganda, Tanzania, Mauritius, New Zealand, Burma, Iraq,Ausatralia, Fiji, Cyprus, Nigeria, Ghana, Zanzibar etc. It isprepared in the prescribed format and is signed/ certified bythe counsel of the importing country located in the country of

export.y Customs Invoice - Mainly needed for the countries like USA,

Canada, etc. It is prepared on a special form being presentedby the Customs authorities of the importing country. Itfacilitates entry of goods in the importing country atpreferential tariff rate.

y Legalised/ Visaed Invoice - This shows the seller'sgenuineness before the appropriate consulate/ chamber ofcommerce/ embassy. It do not have any prescribed form.

y Certified Invoice - It is required when the exporter needs tocertify on the invoice that the goods are of a particular origin ormanufactured/ packed at a particular place and in accordancewith specific contract. Sight Draft and Usance Draft areavailable for this. Sight Draft is required when the exporterexpects immediate payment and Usance Draft is required forcredit delivery.

y Packing List - It shows the details of goods contained in eachparcel/ shipment.

y Certificate of Inspection - It shows that goods have beeninspected before shipment.

y Black List Certificate - It is required for countries which havestrained political relation. It certifies that the ship or theaircraft carrying the goods has not touched those country(s).

y Weight Note -Required to confirm the packets or bales orother form are of a stipulated weight.

y Manufacturer's/ Supplier's Quality/ Inspection Certificate.y 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 are available.y Certificate of Chemical Analysis - It is required to ensure the

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

y Certificate of Shipment - It signifies that a certain lot of goodshave been shipped.

y Health/ Veterinary/ Sanitary Certification -Required for

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export of foodstuffs, marine products, hides, livestock etc.y Certificate of Conditioning - It is issued by the competent

office to certify compliance of humidity factor, dry weight, etc.y Antiquity Measurement - Issued by Archaeological Survey of

India in case of antiques.y Transhipment Bill - It is used for goods imported into a

customs port/ airport intended for transhipment.y Shipping Order - Issued by the Shipping (Conference) Line

which intimates the exporter about the reservation of space ofshipment of cargo through the specific vessel from a specifiedport and on a specified date.

y Cart/ Lorry Ticket - It is prepared for admittance of the cargothrough the port gate and includes the shipper's name, cart/lorry No., marks on packages, quantity, etc.

y Shut Out Advice - It is a statement of packages which areshut out by a ship and is prepared by the concerned shed andis sent to the exporter.

y Short Shipment Form - It is an application to the customsauthorities at port which advises short shipment of goods andrequired for claiming the return.

y Shipping Advice - It is prepared in aligned document to beused to inform the overseas customer about the shipment ofgoods.