Page 16 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

Unit 1: Export Procedure and Documentation

3. Combined Transport Document: This is also known as Multi-modal transport document. Notes
Ever since containers have become popular, the concept of combined transport has gained
solid ground.
Containerization has made it possible to move the goods from the place of origin, i.e. the
factory or warehouse, to its final destination, that is the buyer’s premises in the foreign country.
Containers, in fact are also used in domestic transportation in India. Indian Railways have their
door-to-door delivery service. The goods are transported in containers from one country to the
other using different modes of transport. From the exporter’s premises, the containers are
loaded on trailers (road transport), which then use rail transport for carriage up to the port of
loading and finally these are put on board the vessel. Likewise, in the foreign country too, the
containers travel up to the importers premises using multiple or combined modes of transport.
The combined transport document is used to cover this total journey of cargo using the various
transport modes.

Certificate of Origin: This document serves as a proof of the country of origin of goods for the
importer in his country. Importing countries usually require this to be produced at the time of
customs clearance of import cargo. It also plays an important part in computing the liability and
rate of import duty in the country of import. This certificate declares the details of goods to be
shipped and the country where these goods are grown, manufactured or produced. Such goods
need to have substantial value-addition in the country of export so as to become eligible to
certification of this nature. Certificate of origin also has the dimension of preferential duty
treatment attached to it provided it falls under the GSP category. Accordingly, the Certificate of
Origin can be classified in the following two categories:

(a) Non-Preferential: The local chamber of commerce in the country of export normally
issues such a certificate of origin. It serves only as a proof of country of origin and does not
offer any duty benefits to the importing countries. The exporter is required to make an
application to the local chamber of commerce in a prescribed format and the chamber
upon scrutiny of this application will issue the certificate of origin. The formats of both the
application and the certificate of origin are given in the enclosed CD.
(b) Preferential: These are required by importing countries offering concessional (preferential)
import duties to import from certain countries under certain trade agreements. The
following preferential certificates of origin currently are applicable for exports from
India:
Generalised System of Preferences (GSP): Under this system many developed countries
like the US, Japan, Switzerland, Canada, Hungary, EU, Norway and New Zealand
offer concessional tariffs to developing nations. This instrument is non-contractual
in nature and the offer is made on a unilateral and non-reciprocal basis. These
countries have their GSP schemes reviewed and updated on a timely basis to give
details of specific benefits available under particular product categories. Usually,
these benefits are made available to exporters on providing relevant information in
a prescribed GSP form.

Global System of Trade Preferences (GSTP): This is an arrangement between developing
nations under which concessional tariffs are provided on a reciprocal basis. India
has such arrangements with many other developing countries. For availing of these
preferences, exporters in India can obtain certificate of origin under GSTP from EIA
(Export Inspection Agency), which is the sole agency authorized to issue these
certificates.

LOVELY PROFESSIONAL UNIVERSITY 11