EXIM POLICY

 Introduction 

                             Any commercial cargo, whether it is for import or export, requires customer clearance. Simply put this means that businesses engaged in exporting and importing goods to and from the country need to clear specific customs barriers as outlined by government. The customs clearance process typically involves preparing documents that may be submitted electronically or physically with the consignment. This helps concerned authorities to calculate taxes and duties that will be levied on the cargo. 

                           The type of documents required for customs clearance usually depends on the type of goods being shipped. It may also vary depending on the country of origin and the destination of the cargo. List of documents:- 

1) Proforma Invoice 

                                The proforma invoice documents the intention of the exporter to sell a predetermined quantity of goods or products. This invoice is generated as per the outlined terms and conditions agreed upon between the exporter and the importer, through a recognized medium of communication such as email, fax, telephone or in person. It is similar to a purchase order, which is issued prior to completing the sales transaction. 

2) Customs Packing List

                                The customs packing list states the list of items included in the shipment that can be matched against the proforma invoice by any concerned party involved in the transaction. This list is sent along with the international shipment and is especially convenient for transportation companies as they know exactly what is being shipped. 

3) Country Of Origin Or COO Certificate 

                               The country of origin certificate is a declaration issued by the exporter that certifies that the goods being shipped have been completely acquired, produced, manufactured or processed in a particular country. 

4) Customs Invoice

                               A customs invoice is a mandatory document for any export trade. The customs clearance department will ask for this document first as it contains information about the order, including details such as description, selling price, quantity, packaging cost, weight or volume of the goods to determine customs import value at the destination port, freight insurance, terms of delivery and payment, etc. A customs representative will match this information with the order and decide whether to clear this for forwarding or not. 

5) Shipping Bill

                               A shipping bill is a traditional report where the downside is asserted and primarily serves as a measurable record. This can be submitted through a custom online software system (ICEGATE). To obtain the shipping bill, the exporter will need the following documents; 

  (a) GR forms for shipment to all the countries.  

  (b) Packing list (With various details such as information about the content, quantity, the gross and net weight of each package).  

  (c) Export License.    (d) Indent.  (e) Acceptance Of Contract.   (f) Invoice (With all relevant information such as the number of packages, quantity, price, correct specification of goods, etc.)

(g) Purchase Order.  (h) Letter Of Credit.  (i) AR4 And Invoice. (j) Examination Or QC Certificate.

(k) Port Trust Document.

6) Bill Of Lading

                             Bill of lading is a legal document issued by the carrier to the shipper. It acts as evidence of the contact for transport for goods and products, mentioned in the bill provided by the carrier. It also includes product information such as type, quantity, and destination that the goods are being carried to. This bill can also be treated as a shipment receipt at the port of destination where it must be produced to the customs official for clearance by the exporter. Regardless of the form of transportation, this is a must have document that should accompany the goods and must be duly signed by the authorized representative from the carrier, shipper and receiver. 

7) Bill Of Sight

                           Bill of sight is a declaration from the exporter made to the customs department in case the receiver is unsure of the nature of goods being shipped. The bill of sight permits the receiver of goods to inspect them before making payments towards applicable duties. Applying for a bill of sight becomes necessary as it acts as a substitute document if the exporter does not have all the must have information and documents needed for the bill of entry. Along with the bill of sight, the exporter also needs to submit a letter that allows for the clearance of goods by customs. 

8) Letter Of Credit

                             Letter of credit is shared by the importer's bank, stating that the importer will honor payment to the exporter of the sum specified to complete the transaction. Depending on the terms of payment between the exporter and the importer, the order is dispatched only after the exporter has this letter of credit. 

9) Bill Of Exchange

                              Bill of exchange is an alternative payment option where the importer is to clear payments for goods received from the exporter either non-demand or at a fixed or determinable future. It is similar to promissory notes that can be drawn by banks or individuals. You can even transfer a bill of exchange by endorsement. 

10) Export License

                             Business must have an export license that they can provide to customs in order to export or forward any products. This only needs to be produced when the shipper is exporting goods to an international destination for the very first time. This type of license may vary depending on the type of export you intend to make. This can be done by applying with licensing authority, and the permit is eventually issued by the chief controller of Exports and Imports. 

11) Warehouse Receipt

                             Warehouse receipt is generated once the exporter has cleared all relevant export duties and freight charges post customs clearance. This is needed only when an ICD (Inland Container Depot) in involved. 

12) Health Certificate

                             Health certificate is applicable only when there are food products are of animal or non-animal origin involved in international trade. The document certifies that the food contained in the shipment is fit for consumption by humans and has been vetted to meet all standards of safety, rules and regulations prior to exporting. This certificate is issued by authorized governmental organizations from where the shipment originates. 

Conclusion 

                       In above points we get the detailed information of export documents, which is mandatory for international business doing for customs clearance. For doing international business every traders or organizations need to submit above documents along with shipment and or before shipment.