The consequences of an incorrectly organized or missing document can be far-reaching for all parties involved. Missing or incorrectly organized documents can cause untold problems for all stakeholders. A shipment cannot be surrendered or acquired if the office work is not completed. They may even face a penalty and lose their credibility.
Topics we'll discuss include:
How the authorities reduce documentation for export-import
In order to export products via sea, exporters need three key documents
In order to import products that are arriving via sea, importers need three key documents
Also check out our blog post on what shipping documentation is necessary for customs clearance.
Documentation for export and import operations and how to reduce it.
To begin with, a brief explanation of import-export documentation guidelines in India.
Up until 5 years ago, exporters and importers were required to prepare seven to eight mandatory documents - plus any extra documentation that may be needed depending on the shipment type and regulations and guidelines specific to each country. Therefore, the procedure was time-consuming and expensive. India also scored poorly on the World Bank's Ease of Doing Business Index due to this issue. In 2014, India ranked 142 out of 189 countries (it has since risen to 63 out of 189). Within the same year, the Department of Commerce formed an inter-ministerial committee to look for ways to reduce the amount of paperwork associated with imports and exports. The mission was to improve the export-import process and India's ranking in the Ease of Doing Business and double exports to $900 billion by 2020. It was recommended that import and export documents be whittled down to three each.
The suggestions have been approved. Modifications were made by the Directorate General of Foreign Trade (DGFT) - the department that formulates and implements India's Foreign Trade Policy. With the revised Foreign Trade Policy, which is effective from April 2015, here are the 3 key documents here for exports and imports.
Important shipping documents for exports
Bill of Lading
The most important document for exporters. An exporter, the shipping line, and the importer all have to sign the bill of lading (the act of loading a shipment on a ship). An exporter needs a complete set of bills of lading from the shipping line/freight forwarder and dispatch it to the importer/importer's bank for easy transportation.
This bill of lading contains the following information:
Description, amount, weight of products
Name and address of consignee
Terms of sale
2.Commercial Invoice cum Packing List
The exporter has issued an invoice of sale to the importer as part of a settlement agreement. Due to this, their responsibilities and taxes can be determined based on the purchase price.
The document includes information such as:
Name, address of seller (exporter)
Name, address of buyer (importer)
Value, amount of products
{An itemized packing list contains information about the products.|In a packing list, product information is listed item by item.|An itemized packing list contains information about the products.] At the point of clearance, it simplifies their exam and corrects tallying.
It contains:
Description of the products
Quantity and weight (gross and net) of the products
Number of packages
Type of packaging (PP,Jute, BOP , Laminated etc)
Marks and numbers (symbols/numbers positioned on every piece of shipment in a cargo to discover them)
Carrier’s (ship) name
Date of export
Export licence number
Letter of credit score number
There used to be separate files for the economic bill and packing listing.
3. Bill of Entry
Shipment bills or export bills are types of customs clearance applications. Using this information, customs determines whether an exporter has taken advantage of government incentives, such as:
Various tax exemptions, rebates, and refunds
Export benefits under various government programs
Documents required for imports
Bill of Lading
This is a must-have document for both exporters and importers. The exporter and importer must share the bill of lading. A bill of lading is required for importers to accept goods at their end.
2. Commercial Invoice cum Packing List
Importers also need this document. Customs clearance is most often determined by the commercial invoice and packing list.
3. Bill of Entry
The final requirement for importers is a bill of entry. A declaration made by the importer is examined by customs authorities. The information in this bill matches an insurance policy or sales invoice.
The information includes:
Type of cargo
Value of the goods
Quantity of the goods
The following is a brief description of the three documents importers and exporters must always have on hand. This does not mean that these are the only documents required. Shipping is all about paperwork. Customs may require importers and exporters to submit additional documentation for the processing of their goods, depending on various factors.