Page 217 - DMGT547_INTERNATIONAL_MARKETING

International Marketing

Notes 12.2.10 Shipment Advice to Buyer

Ratnesh must now send a shipment advice to his buyer giving him particulars of the
shipment – date, vessel name, ETA, etc. He must enclose a copy each of the commercial invoice,
packing list and bill of lading with this advice.

12.2.11 Presentation of Shipment Documents to the Negotiating Bank

Ratnesh now has to present the following documents to his bank:
Bill of Exchange/Draft (First and Second Original)

Complete set of Bill of lading (negotiable and non-negotiable)
Commercial Invoice copies in required number
Packing List copies in required number
SDF (duplicate copy)

Cargo Insurance Policy
Original LC
Export Order
Bank Certificate in prescribed format

Certificate of Origin/Consular Invoice/Customs Invoice, if required
Inspection Certificate by the buyer nominated agency, if applicable

12.2.12 Presentation of Documents for Payment to Foreign Bank by the
Negotiating Bank

Ratnesh’s bank will now thoroughly scrutinize these documents against the terms of the
LC and export contract.
Once satisfied, the bank will send this set of documents to the buyer’s bank.

The importer’s bank will release payment once it is satisfied that the documents are in
order.
The duplicate copy of the SDF will be directly sent by Ratnesh’s bank to the Exchange
Control Department of the RBI, on receipt of the payment from the buyer’s bank.

12.2.13 Export Incentives

Ratnesh will also file his claim for excise exemption and receive the due amount of duty drawback
as well.

Notes An export transaction is a series of many diverse yet inter-related activities.
The exporter has to not only work himself but also has to deal with various agencies like the
C&F agent, bank, shipping company/airlines, port authorities, customs, excise, sales tax,
transporters, inspection agencies, and so on. A brief visual of various activities is given below as
a one-glance shot:

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