Page 11 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

International Trade Procedures and Documentation

Notes Insurance declaration

Intimation for inspection
Shipping order

Mate’s receipt
Application for certificate of origin
Letter to bank for negotiation/collection of documents

1.2.2 Regulatory Documents

These are prescribed by various government departments/bodies for compliance of formalities
under relevant laws governing export transactions. These include:

Exchange Control Declaration Form-GR Form
Freight Payment Certificate
Insurance Premium Payment Certificate
ARE I/ARE II Forms
Shipping Bill/Bill of Export
Port Trust Copy of Shipping Bill/Export Application/Dock Challan
Receipt of Payment of Port Charges
Vehicle Ticket
A detailed description of all the commercial documents is given below:
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. A commercial invoice
must provide complete and accurate information as is expected. A slight mistake on the part of
the exporter may cost him dearly. This document requires the exporter to submit details such as
his own (exporter) details, invoice number with date, details of the consignee and buyer (if the
buyer is other than the 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), place of receipt by pre-carrier, vessel/flight number, port of loading, port of discharge,
final destination, marks and numbers, container number, number and kind of packaging, detailed
description of goods, quantity, rate and total amount chargeable.
As can be seen, a commercial invoice contains the complete details of the export order right
from order number to quantity, rate, packaging, mode of dispatch and shipping particulars.
Normally, the trade practice is to raise and send a proforma invoice to the buyer for his approval,
once the order has been finalised. On receipt of the approved proforma invoice, the exporter can
use it as part of the export contract.
The commercial invoice serves the following objectives:

It serves as the exporter’s bill as it indicates the total chargeable amount.
It provides both the consignor’s and consignee’s (buyer’s details if the buyer and the
consignee are different) details and the order number.
It gives the complete details of goods being shipped, corresponding to the export order
and letter of credit.

As per the export order, the exporter is required to ship the exact quantity in the required
packing. The invoice depicts both the quantity and packing, which must strictly be in
accordance with the specifications of the export contract.

6 LOVELY PROFESSIONAL UNIVERSITY