EXPORT PROCEDURE
The procedure generally adopted for exporting goods to a foreign country is as
follows:
1. Receipt of an enquiry:
This is the first step in which the importer wishes to import the goods,
generally by writing a letter of enquiry to the exporter, enquiring about the price of
goods and the terms on which the exporter will supply the goods.
2. Sending a quotation:
After receiving a letter of enquiry from the importer, exporter sends the
quotation which contains the full details of quality, quantity and price of the goods.
3. Receiving an indent:
If the importer is satisfied by the quotation, he accepts the quotation and
sends an indent to the exporter. The indent is the order for the supply of goods placed
by the importer to the exporter. The indent contains the details of the quantity, quality
and price of the goods ordered, instructions regarding packing, marking, shipping and
insurance, date of delivery of goods, method of payment adopted by the exporter.
4. Obtaining export license:
After receiving the indent from the importer, the exporter has to see whether
the goods exported are subject to export control.
If the goods are subjected to export control, then he has to obtain
export license from the export trade controller.
5. Collecting or assembling goods:
After obtaining export license, the exporter has to collect the goods which
are to be exported. The goods must be in correspondence to the instructions given in
the indent by the importer.
6. Packing and marking of goods:
After collecting the goods the exporter has to pack the goods. Packing
should be done according to the instruction given in the indent by the importer. If
packing is not done according to the instruction and any loss arises due to defective
packing, such losses should be borne by the exporter. Packing must give protection to
the goods and it should be in small sizes as possible because freight is charged
according to the weight and size of packages.
After packing, marking is done according to the instructions given
by the importer in the indent.
7. Appointment of a forwarding agent to attend to the shipping of goods:
After packing and marking, exporter should arrange for shipping of
goods. So he appoints a forwarding agent who is an expert in this regard. The
forwarding agent is an individual, a firm or a company. He performs all formalities in
connection with the shipment of goods on behalf of exporter.
8. Dispatch of goods to the port by road or rail:
After entering into an agreement with the forwarding agent for shipment of
goods, exporter has to dispatch the goods to the port either by road or rail.
9. Formalities to be performed by forwarding agent:
Forwarding agent takes delivery of goods at the port and secure shipping
space. He goes through certain custom formalities and makes arrangement for
payment of dock dues and obtains dock receipt. He loads the goods into the ship and
obtains bill of lading and finally sends advice to the exporter by giving all documents
of goods and asks for his remuneration.
10. Obtaining of other relevant documents:
The exporter should obtain certain documents such as certificate of origin
and consular invoice.
Certificate of origin is a certificate obtained from Chamber of Commerce
and Trade Association and Consular Invoice is obtained from a Consul.
11. Preparation of export invoice:
The exporter prepares an export invoice which contains details of goods
shipped, details regarding packing and marking etc.
12. Securing the payment:
Having prepared the export invoice the exporter will try to secure the
payment from the importer.
13. Sending advice to the importer:
After handing over the bill of exchange and necessary documents, the
exporter will write a letter to the importer informing about dispatch of goods, bill of
exchange and other shipping documents.
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