Export procedures and documentation in India

Type :

Research papers

Pages :

74 pages

Format :

.doc

Published date :

05/13/2009

Category :

Economics & finance

Sub category :

Government finance

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Summary :

Introduction
Two classes of exports
Types of exporters
1. Manufacturer exporter
2. Merchant exporter
How to set up an export organisation
1. Choosing appropriate mode of operations
2. Naming the business
3. Structure of an export organisation
4. IEC exempt categories
5. Application for obtaining an IEC number
How one begins to export
1. Finding a customer
2. Negotiating the contract
3. Export of samplesgifts
4. Standard contract foms
Terms of shipments: Incoterms
Processing an export order
Financial risks involved in foreign trade
Export documents
1. Contents of commercial invoice
2. Significance of commercial invoice
3. Significance of consular invoice for the exporter
4. Significance of consular invoice for the customs office
5. Types of the certificate of origin
6. Contents of shipping bill
Marine insurance policy
Quality control and pre-shipment inspection
Shipping and customs formalities
Factory stuffing of cargo
Methods of receiving payment against exports
The letter of creidt
1. Contents of a letter of credit
2. Procedure involved in the letter of credit
3. Amendments to the credit
4. Documentary credit in general
5. Total operation under the letter of credit
Shipment through couriers
Customs examination of export cargo
Generation of shipping bills
Export of goods under DEPB
Export of goods under 100% EOU scheme
The ECGC cover
How to get ECGC cover
Exports turnover policy
Multi buyer exposure policy
Consignment exports policy (stockholding agent)
Services policies

Abstract

india has a mission to capture 2% of the global share of trade by 2010, as compared to the present level of less than 1%. export is one of the lucrative business activities in india. The government also provides various promotional schemes to the exporters for earning valuable foreign exchange for the country and for meeting their requirements for importing modern technology and essential inputs. Besides, the income from export business is also exempted to the specified extent under the Income Tax Act, 1961, Refund of Central Excise and Custom Duty on export is also made under the Duty Drawback Scheme of the Government. There is no Sales Tax on products meant for exports.

Exports can be of goods which can be moved physically from one country to another or can be of service rendered. Detailed list of services are given in the Foreign Trade Policy covering more than 160 items e.g. Insurance, Hospital, Postal and Telecommunication etc.

Physical Exports: If the goods physically go out of the country or services are rendered outside the country then it is called as physical export. Deemed Exports: Where the goods do not go out of the country physically they can be termed as deemed exports. This will be subject to certain conditions as prescribed by the DGFT. Under Deemed Exports, the goods may be supplied to the manufacturer exporter who ultimately export a finished product of which this supply forms a part and ultimately go out of the country. E.g. Supply of fabrics to the garment exporter who exports the garments made out of the said fabric

The government may announce from time to time the types of supplies that may be considered as deemed export. The Foreign Trade Policy gives the list of supplies considered under the Deemed export Category. The policies and procedures are different for Physical Exports and Deemed Exports as also the benefits available. In a nutshell, Deemed Exports do not enjoy all the benefits that are available under Physical export. The Foreign Trade defines exports as taking out of india any goods by land, sea, air. Although the act does not term them as "Physical Exports", we have to put phrase to distinguish it from "Deemed Exports" which is sales in india but considered as exports for limited purpose.