Page 232 - DMGT547_INTERNATIONAL_MARKETING

Unit 13: Export Documentation

Notes
Did u know? Depending upon the export contract, if it is on a Cost Insurance and Freight
(CIF), the importer makes the payment of freight and gets the “freight collect” bill of
lading. If, on the other hand, the contract is Free on Broad (FOB), the freight has to be paid
by the exporter and gets a “freight paid” bill of lading.
The bill of lading should contain the following conditions:
1. Name of the ship

2. Place of loading
3. Date of loading
4. Port of loading
5. Description of goods and marks of identification

6. Freight paid or to pay
7. Name and address of consignee
8. Post of destination

Notes A bill of lading may be clean or foul/clause.

A clean bill of lading is one in which there is no superimposed clause or statement declaring
defective condition goods or of the packaging or some other aspect of consignment. On the
other hand, a foul/clause bill of lading is one on which the captain of the ship marks some foul
remarks such as goods damaged, leaking, package broken, etc.

Mate receipt: It is issued by the chief of vessel after cargo is loaded and it contains the name
of shipper, place of receipt and voyage number, port of loading, port of discharge, place of
delivery, marks and numbers, container number, description of goods, gross weight and
other details as per the standardised aligned document format. The receipt is of a transferable
nature and must be presented at the shipping company’s office to be exchanged into bill of
lading.

Combined transport document: Inland Container Depots (ICD) has been set-up at various
centres in the country. These dry ports have made it possible to cover the entire movement
of goods from ICD to destination under the transport document called Combined Transport
Document.

13.3.2 Document for Customs Clearance of Goods

Shipping bill is the main document required by the customs authorities for allowing shipment.

Shipping Bill: Basically, shipping bills are of four types. The major distinction between them
lies with regard to the goods being subject to (a) export duty/cess (b) free of duty/cess (c)
entitlement to duty drawback (d) entitlement of credit of duty under DEPB scheme and re-export
of imported goods. The shipping bill is used for export of goods which neither attract any duty/
cess nor are entitled to duty drawback on their exportation. Dutiable shipping bill is used in case
of goods subject to export duty/cess but may or may not be entitled to duty drawback. Drawback
shipping bill or bill of exports is the document to be filed with the land customs authorities for
export of goods, which are entitled to drawback. DEPB shipping bill is used when the goods are

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