question_answer

Discuss the principal documents used in exporting.

Answer:

Ans.     The following documents are required for an export transaction:

(a) Export Invoice: It is a seller's bill which contains information about the quantity of goods, total value of goods, number and marks of packaging, name of the ship, etc.

(b) Packing List: It includes information related to the goods that are packed, such as the number of items packed in one package, details of goods contained in one package, etc.

(c) Certificate of Origin: Certificate of Origin specifies the country in which the goods being exported were produced. It allows the importer to claim tariff concessions and other exemptions.

(d) Certificate of Inspection: Certificate of Inspection is proof that the goods being exported are of good quality. The exporter contacts the Export Inspection Agency (EIA) or another designated agency and obtains the certificate of inspection after getting the goods inspected.

(e) Mate’s Receipt: It is a receipt issued by the captain or commanding officer of a ship to an exporter as evidence that the exporter's cargo has been loaded on the ship. It contains information about the name of the vessel, berth, date of shipment, condition of the cargo when the goods were loaded, description of packages of the cargo, number of packages, marks on the packages, etc.

(f) Shipping Bill: It contains information regarding the specifications of the goods for export, such as the name of the vessel, port at which the goods are to be discharged, country of final destination and exporter's name and address. This document forms an essential part of an export transaction as it is on the basis of this document that customs grants clearance to the export.

(g) Bill of Lading: Bill of lading is an essential document required for an export transaction. It is issued by the shipping company concerned as a token of acceptance that the goods have been put on board in its vessel. A bill of lading is an undertaking signed by the shipping company to transfer the goods to the port of destination. Bills of Lading are freely transferable.

(h) Airway Bill: It is issued by an airline as a token of acceptance that the goods for export have been put on board its aircraft.

(i) Marine Insurance Policy: Marine Insurance Policy is an insurance contract under which the insurance company concerned, in return for a premium, agrees to pay an exporter a specified amount in case of loss of goods or damage caused during transport by sea.

(j) Cart Ticket: Also known as a cart chit or a gate pass is prepared by an exporter and includes information about the exporter's cargo.

(k) Letter of Credit: Letter of Credit is issued by the bank of an importer guaranteeing to honour a draft of a specified amount drawn on it by the exporter. A letter of credit enables the exporter to assess the creditworthiness of the importer and is the most appropriate and secure method of payment for settling international transactions.

(l) Bill of Exchange: Bill of Exchange indicates the amount that an importer must pay to the bearer of the bill. On receiving a bill of exchange, the importer instructs its bank to transfer the amount to the exporter's bank account.

(m) Bank Certificate of Payment: Bank Certificate of Payment indicates that the necessary documents, along with the bill of exchange, have been presented to the importer, and that payment from the importer has been received in accordance with the exchange control regulations.