Procedure for export of goods
When we decide to enter the export market we will have to do the following so that we are in a position to export products without much difficulty.
1. We must open a current account in any one of the scheduled banks which deals in foreign exchange.
2. We must obtain an Importer-Exporter code number from the Regional Licensing Authority(office of the Joint Director /Deputy Director General of Foreign Trade, Department of Commerce) concerned. Customs authorities shall not allow clearance Of goods to an importer or exporter who does not possess a valid Importer- Exporter Code number. It is mandatory for the exporter to quote his code number in the Relevant GR form, Shipping Bill,etc..
3. An exporter should get himself registered with the concerned Export Promotion Council/Commodity Board/Export Development Authority/ other concerned Authorities by making an application on the prescribed form. The concerned Authorities will issue a Registration cum-Membership Certificate(RCMC) which May be quoted in any application made to the Government for any assistance Available to exporters.
4. We must then get the names of importers and correspond with them giving all detailsof your products.
5. The following agencies/offices will be able to furnish names importers.
a. EP Council/ Commodity Board/ Export Development Authority.
b. Director General of Commercial Intelligence and Statistics.
d. High Commissions/Embassies in India and abroad.
e. Commercial Banks / Exim Bank
f. Chambers of Commerce/ Trade Associations
g. Import Promotion Centres abroad set up by importing countries.
h. International Chamber of Commerce and other organizations through their directories, etc.
If you receive a reply to your letter or receive an enquiry from an importer send a polite and courteous reply giving quotation preferably in dollar. When you give the Price never show discount in the price list. The quotation should 6. Include the following
a. FOB/CIF/C&F/FAS Prices
b. Period of delivery(3 or 4 months, etc.)
c. Mode of Payment(L/C,DP or DA bills)
d. Packing and Specifications
e. Commission or discount, if any
f. Arbitration clause
g. Any other important clause
7. We must know the trade terms such as FOB/CIF/C&F/FAS. In the case of free on board(FOB)an exporter should take the goods and load on the board of the ship. It is for the importer to take marine insurance policy and pay the freight. In case of cost,
Insurance and Freight(CIF) we must take the marine insurance policy and pay the freight. In case of C&F(Cost and Freight) we must pay on the freight and the importer
Will make arrangement for the insurance policy. In case of free along side(FAS)Our responsibility is over till you put the goods by the side of the ship. It is the Importer who has to load the goods on the board of the ship and take insurance policy And pay the freight.
8. If the above quotation is acceptable to the importer (buyer) he will place an order withus. And if we communicate our acceptance of the order it becomes a contract.
9. Four rules of Export correspondence namely to be polite, be precise, to be prompt and to be persistent. This will enable any exporter to get proper response from the importers.
10. After accepting the order we must prepare goods for export. If we do not have money to purchase raw materials, etc we must approach our bank for packing for preshipment credit.
11. Keep the goods ready for dispatch.
12. Then get the goods inspected by the inspecting authorities under the compulsory quality control and pre-shipment inspection. They are as follows
a. Export Inspection Agency(EIA).
b. "AGMARK" authorities for onions,etc
c. "Textile committee"-for textile goods
d. Any other authorities for this purpose.
13. Send the goods to the port and ask the Clearing and Forwarding Agents to get the goods cleared by the Customs.
14. You or the C& F agent must file Shipping Bill, GR form, etc, with the Customs.
15. The Customs officials will inspect the goods for appraising the value of the goods and verify the goods whether they are in accordance with the details given in the invoice.
16. After the "Let Ship" or "Let Export" order is given by the Customs officials the goods have to be loaded on board the ship.
17. After accepting the goods on board the ship the captain or the first officer of the ship will issue a receipt called "mate Receipt".
18. Thereafter, we must pay port charges.
19. We must present the Mate Receipt to the Shipping Company or its agents and get the Bill of Lading.
20. We must prepare/obtain the following export documents.
a. Commercial invoice(Consumer/Customers invoice etc.)
b. GR Form/PP/EP/VP/COD forms.
c. Certificate of Origin
d. Certificate of Origin under GSP
e. Marine Insurance Policy.
f. ECGC Policy
g. Mate Receipt/Bill of Lading
h. Letter of Credit/DA/DP Bill of Exchange.
i. Certificate from Quality control authorities
j. Shipping Bill
k. Any other documents necessary.
21. Send the shipping advice to the importer.
22. Get our export proceeds from the bank.
23. Get the Duty Drawback from Customs and other assistance if any, from the Government.
24. We must also know how to calculate export price especially based on Marginal cost.
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