SMALL INDUSTRIES Advisory Bodies Development Commissioner, SSI State Small Industries Board Directorate of Industries Export Promotion Council Government Institutions Commodity Boards National small Industries Corporation Small Industries Service Institutes Corporate Institutions State Trading Corporation Central institute of Tool and design Industrial Development Bank of India

OBJECTIVES OF DIC Accelerate the Industrialization Process Decentralize the industrialization Support schemes of Government Encourage Industries to Rural areas Minimize time required to obtain licenses, registrations, subsidies etc.

EXPORT DOCUMENTATION

There are a number of documents, which have to be prepared by the exporter in order to arrange export of his consignments. Export Documents can be classified into following four categories: (1) Commercial Documents (2) Regulatory Documents (3) Export Assistance Documents (4) Documents Required by Importing Countries

Export Documents Commercial DocumentsRegulatory Documents PrincipalAuxiliary EXPORT DOCUMENTATION

These documents are used by exporters or importers to discharge their respective legal and other incidental responsibilities Commercial documents can be further sub- divided into: (i) Principal Commercial Documents (ii) Auxiliary Commercial Documents 1. COMMERCIAL DOCUMENTS

These documents serves the following purposes: (a) To effect physical transfer of goods and title of the goods from exporter to the buyer. (b) To realize export sales proceeds. Principal Documents include: 1.Commercial Invoice (and the invoice prescribed by the importer) 2.Packing list 3.Certificate of Inspection 4.Certificate of Insurance/Insurance Policy 5.Bill of Lading/Airway bill/Combined Transport Documents 6.Certificate of Origin 7.Bill of Exchange 8.Shipment Advice (i) PRINCIPAL COMMERCIAL DOCUMENTS

(1) Commercial Invoice: It is the basic and most important document in an export transaction and extreme care has to be taken by the exporter to prepare this document. This document requires the exporter to submit details such as his own details, Invoice number with date, details of the consignee and buyer (if the buyer is other than consignee), buyer’s order number with date, country of origin of the goods, country of final destination, terms of payment and delivery, pre-carriage details (Road/Rail), vessel/flight number, port of loading, port of discharge, final destination, container number, number and kind of packaging, detailed description Commercial Documents (2) Packing List: This document provides the details of number of packages; quantity packed in each of them; the weight and measurement of each of the package and the net and gross weight of the total consignment. (3) Certificate of Inspection: This is the Certificate issued by the Export Inspection Agency after it has conducted the pre-shipment inspection of goods for export provided the goods fall under the notified category of goods requiring compulsory shipment of Commercial Documents

(4) Certificate of Insurance/Insurance Policy: Insurance is an important area in the export business as the stakes are usually very high. Protection needs to be taken in the form of insurance cover for the duration of transit of goods from the exporter to the importer. (5) Bill of Lading: This is issued when the goods are shipped using ocean (marine) transport. When the exporter finally hands over the goods to the shipping company for loading on board the ship for transport to their final destination, the shipping company issues a set of Bills of Lading. (6) Airway Bill: Airway Bill is a bill of lading when the goods are shipped using air transport. It is also known as air consignment note or airway bill of lading. (7) Combined Transport Document: This is also known as Multi- modal Transport Document. Ever since containers have become popular, the concept of Combined Transport Document has gained solid ground.

(8) Certificate of Origin: This document serves as a proof of the country of origin of goods for the importer in his country. Imported countries usually require this to be produced at the time customs clearance of import cargo. (9) Bill of Exchange: Also known as Draft, this is an instruments for payment realization. It is a written unconditional order for payment from a drawer to a drawee, directing the drawee to pay a specified amount of money in a given currency to the drawer or a named payee at a fixed or determinable future date. The exporter is the drawer and he draws (prepares and signs) this unconditional order in writing upon the importer (drawee) asking him to pay a certain sum of money either to himself or his nominee (10) Shipping Advice: The exporter sends this document called shipping advice, to the buyer soon after the shipment is made to provide him all the shipment details. This serves as an advance intimation of the shipment and allows the importer to arrange for delivery of the same.

These Documents are required to prepare /procure the principal commercial documents and include: 1. Proforma Invoice ( A preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods) 2.Shipping Instructions 3.Insurance Declaration 4.Intimation for Inspection 5.Shipping Order 6.Mates Receipt 7.Application for Certificate of Origin 8.Letter to bank for negotiation /collection of documents (ii) AUXILIARY COMMERCIAL DOCUMENTS

These are prescribed by various Government Departments/Bodies for compliance of formalities under relevant laws governing export transactions. These include: 1.Exchange Control Declaration Form-GR Form 2.Freight Payment Certificate 3.Insurance Premium Payment Certificate 4.ARE I/ARE II Forms 5.Shipping Bill/Bill of Export 6.Port Trust Copy of Shipping Bill/Export Application/Dock challan 7.Receipt of Payment of Port Charges 2. REGULATORY DOCUMENTS

3. EXPORT ASSISTANCE DOCUMENTS: These are the documents which are required for claiming assistance under the various export assistance measures as may be in operation from to time. Currently, these refer to drawbacks of central excise and customs duties, packing credit facilities etc 4. DOCUMENTATION REQUIRED BY IMPORTING COUNTRIES: These are the documents which are required by the importer in order to satisfy the requirements of his Government. These include: certificates of origin, consular invoice, quality control certificate etc.