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International Marketing

Notes document of which can be produced in a court of law in case of any claim. The policy is
generally taken at a time when the goods are ready for shipment unless otherwise advised
by the importer. The exporter can use the policy as a co-lateral security when he wants an
advance against his bank credit.

Export licence: For controlled commodities and also for restricted and negative list terms,
an export licence has to be obtained from Directorate General of Foreign Trade (DGFT).
Certificate of inspection: In order to build up an image of Indian goods abroad, the
Government of India has ensued pre-shipment and quality control inspection of the goods.
Therefore, the exporter has to obtain an inspection certificate from DGFT.

Certificate of origin: The Government of India has authorised the Export Council of India
and its various agencies to issue the certificate of origin. The export promotion offices at
Mumbai, Kolkata, Chennai, and Cochin, FIEO, Chambers of Commerce and the heads of
the licensing offices have also been authorised to issue the certificate of origin.
Generalised System of Preferences (GSP): Some countries, especially, the Commonwealth
countries, and advanced countries of the world, which have given concession to developing
countries under generalised system of preferences, require that the exporter must submit
a certificate of origin. Thus, the exporter has to submit GR-I form, export licence, inspection
certificate, consular invoice and certificate of origin. All these forms are known as
regulatory documents.
Certificate of chemical analysis: To ensure that the quality and grade of items like metallic
ores, pigments and so on is the same as specified in the sale contract, importers may
require exporters to send a certificate of chemical analysis from a recognised analyst.

13.3.4 Export Assistance Documents

A number of documents are needed to claim the various assistances under the export assistance
schemes as may be in operation from time to time. Presently, these schemes are duty drawback
scheme and packing credit facilities.

Duty drawback scheme: An exporter is entitled certain duties free of cost, which are prevalent
in the country. Under the duty drawback scheme, an exporter is reimbursed customs duty,
octroi duty, sales tax, excise and so on in case he has paid it. As an incentive, the government
gives duty drawback to various commodities/products, which are exported. The rates of
duty drawback are given separately on a per cent basis of the goods exported. These rates
change from time to time and are notified by the commerce ministry. The duty drawback
is claimed after the goods have been exported.
Packing credit facilities: The government has given packing credit facilities to exporters
in terms of pre-shipment credit and post shipment credit. In the case of pre-shipment
credit, an exporter is entitled to credit from his commercial bank for the manufacture and
the packaging of his goods. This credit is given to him on a reduced rate of interest. Beside
this, he can claim duty drawback credit also in the pre shipment credit. In the post shipment
credit, an exporter is entitled to credit from his commercial bank after the goods have
been shipped and document negotiated with the bank. In the post shipment credit, he gets
the balance of pre-shipment credit and the duty drawback if not already claimed.

Foreign documentation: Certain documents are required by the importer to satisfy his
government’s requirements. These are obtained by the export in his country and submitted
to the importer for the purpose. These include certificate of origin, consular invoice,
quality control certificate and so on.

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