Page 224 - DMGT547_INTERNATIONAL_MARKETING

Unit 12: Export Procedures and Policies

12.3 Summary Notes

This unit attempts to give an overview of the functions in as simple manner as possible.
A step-by-step description of various activities involved in an export transaction from
India was carried out with the help of an example.
An exporter first receives an enquiry with relevant details like description of item, detailed
specifications, quantity required, packing requirements, mode of dispatch, inspection
requirements, etc.
The exporter then has to quote his price by way of a proforma invoice, which once approved,
becomes the basis of the export contract. On receipt of the order, the exporter must convey
its acceptance to his buyer. Now the exporter has to arrange for finance, start production
to meet the desired delivery schedule and appoint C&F agent.
The exporter has to arrange for the insurance of the export cargo. The C&F agent takes care
of a lot of activities after receipt of the basic shipment documents, Invoice and Packing
List, from the exporter.
He prepares the Shipping Bill and submits it with the customs authorities together with
other shipment papers. He also receives the export cargo from the exporter and presents
it to the customs for physical examination.

Once both the documentary and physical checks are over, the approved for shipment
cargo is loaded on to the vessel. The C&F agent takes delivery of the Mate’s Receipt from
the port authorities after paying their charges. He then receives the full set of clean on
board bill of lading from the shipping company in exchange for the Mate’s Receipt.
The C&F agent then delivers the shipment documents to the exporter. The exporter then
submits the documents to his bank, which after thorough scrutiny of the same sends these
to the importer’s bank abroad for payment.

On receipt of the payment, the duplicate copy of the SDF will be directly sent by the bank
to the Exchange Control Department of RBI. The exporter will then file his claim for excise
exemption and will also receive duty drawback amount due to him.

The last part of the lesson highlighted the role and responsibilities undertaken by C&F
agents. A live example of the services offered by a freight forwarding company was also
given.

12.4 Keywords

Custom Clearance: It is the custom formalities for the freight subjected to the procedure for
authorization of free circulation of the freight when it is released from the custom control and
enters in full disposal of the importer provided all required charges, tariffs and other duties
paid.

Excise: Excise is a kind of indirect tax widely used by state institutions for collecting additional
income to the budget.
Export Incentives: A government program that makes it more attractive for a firm, industry, or
country to export.
Export: A function of international trade whereby goods produced in one country are shipped to
another country for future sale or trade.
Imports: A good or service brought into one country from another.

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