Documents in import trade :-

Bill of entry is the only document which an importer has to prepare and submit to the custom authorities. It contains a complete declaration of the required particulars of importers like quantity, description and CIF value of the goods. Along with the bill of entry, a number of documents such as supplier's invoice, packing list, bill of lading, import license/costumes clearance permit, purchase order and indent acceptance etc. are submitted. Bill of entry is noted and a serial number given by the customs along with the date. The scrutiny of documents including scrutiny of import License, classification of goods and the assessment, calculation and collection of duty is completed on the strength of the declaration made in the Bill of Entry supported by documents mentioned above. In case physical examination does not disclose any discrepancy, the goods can be straightaway cleared.

Kinds of documents for export: - These documents can be broadly classified into the following six categories: -

1. Documentation as per the requirements of the contracts:

1. Commercial invoice
2. Packing list
3. Insurance certificate/policy
4. Bill of exchange
5. Shipment advice
6. Certificate of origin
7. Inspection certificate
8. Transportation documents:

These documents may be required for the preparation or procurement of some of the principle documents or for arranging some of the preliminaries in effecting shipment of goods, such as giving shipping instructions to freight forwarders, arranging pre shipment inspections, marine insurance cover, shipping space, procurement of bills of loading etc. Documents normally required are:

0. Shipping instructions form
1. Application for export inspection agency
2. Shipping order
3. Mate receipt
4. Dock challan

A common complaint by the bankers is documents submitted by exporters are often either incomplete or incorrect. This leads to delays, or refusal of payment.

To avoid, these delays, it is necessary to be very careful about documentation, particularly in case of latter of credit. While exporting under latter of credit arrangements, immediately on receipt, read and the latter of credit very carefully and check the terms against contract of sale. It is necessary to check that the latter of credit -

Is of the type agreed e.g. irrevocable and confirmed or just irrevocable

Has an expiry date that is sufficiently far ahead for goods to be shipped and the required documents obtained and presented in time.

Has terms and conditions that can be met and that the required documents can be obtained exactly as called for.

If any amendment or extension is necessary the buyer should be asked immediately to instruct the issuing bank accordingly. A watch should be kept to see that the advice of amendment of the credit is received without delay.

In regard to documentation under latter of credit it is necessary that all the documents are prepared with great care. It should be remembered the latter have approve errors and/or inconsistencies of whatever nature and however small is documents presented to it and will not pay in such circumstances.

Even where the goods are exported on D/P or D/A terms, documentation should be correct and every care should be taken ensure that there are mistakes. The following points should be in view.

In regard to Bill of lading, the exporters should ensure that it is a clean, on board bill of lading and should clearly evidence whether freight has been paid or not. Unless agreed clearly in advance, it should not be a charter party but on board on bill of lading.

In regard to insurance documents, exporters should ensure that the policy/certificate should clearly indicate the type and extent of coverage or risks per contract. In case the contract is silent, exporters should ensure that coverage is quite comprehensive to cover all types of risks and is effective from the data of shipment/ dispatch.

In regard to other documents inspection certificate, certificate of origin etc. exporters should ensure that they are in conformity with the laws in the importing countries.

In documentation relating government rules and regulations pertaining to exports, i.e. GR/PP form, 4/R4A Shipping Bill etc. exporters should ensure that all information should be shipment or even penal action against the exporter.