Taxmann's Export-Import Management

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© All rights reserved Price : ` 425 First Published : July 2026 Published by : Taxmann Publications (P.) Ltd. Sales & Marketing : 59/32, New Rohtak Road, New Delhi-110 005 India Phone : +91-11-45562222 Website : www.taxmann.com E-mail : sales@taxmann.com Regd. Office : 21/35, West Punjabi Bagh, New Delhi-110 026 India Printed at : Tan Prints (India) Pvt. Ltd. 44 Km. Mile Stone, National Highway, Rohtak Road Village Rohad, Distt. Jhajjar (Haryana) India E-mail : sales@tanprints.com Disclaimer Every effort has been made to avoid errors or omissions in this publication. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. It is notified that neither the publisher nor the author or seller will be responsible for any damage or loss of action to any one, of any kind, in any manner, therefrom.

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About the Authors Preface Abbreviations used in the book

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UNIT 1 BASICS OF EXPORT-IMPORT MANAGEMENT

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Chapter 1: An Introduction to Export-Import Management System in India 1.1 Introduction 1.3 1.2 Meaning of Export and Import 1.4 1.3 Export-Import Management 1.5 1.4 Features of Export–Import Management 1.6 1.5 Objectives of Export–Import Management 1.7 1.6 Significance of Export–Import Management 1.8 1.7 India’s Export-Import Management System 1.9 1.8 Institutional Framework of Export-Import Management in India 1.10 1.9 Concept and Relevance of Deemed Exports 1.11 1.10 Key Features of Deemed Exports 1.11 1.11 Physical Exports vs Deemed Exports 1.12 1.12 Categories of Deemed Exports under FTP 2023 1.12 1.13 Relevance of Deemed Exports in India 1.13 1.14 Recent Policy Developments under FTP 2023 Relevant to Deemed Exports 1.13 1.15 Risks in Export–Import Business 1.14 1.16 Importance of Exports in Economic Growth 1.15 1.17 Understanding Export-Import Operations 1.16

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1.18 1.19 1.20 1.21

Key Stakeholders in Export–Import Operations Steps in Export Shipment from India Processing of an Export Order Summary Test Your Knowledge

Chapter 2: Legal Formalities in Foreign Trade 2.1 Introduction 2.2 Legal Formalities for Getting Started in Foreign Trade 2.3 International Commercial (INCO) Terms 2.4 Need and Purpose of Incoterms 2.5 Important Features of Incoterms 2020 2.6 Classification of Incoterms 2020 2.7 E-Group Term under Incoterms 2020 2.8 F-Group Terms under Incoterms 2020 2.9 Difference between FAS and FOB 2.10 C-Group Terms under Incoterms 2020 2.11 D-Group Terms under Incoterms 2020 2.12 Summary Table of Incoterms 2020 2.13 Rules of Origin and Certificates of Origin 2.13.1 Need and Importance of Rules of Origin 2.13.2 Types of Rules of Origin 2.14 Certificates of Origin 2.14.1 Types of Certificates of Origin 2.15 Difference between Preferential and Non-Preferential Certificate of Origin 2.16 Issuing Authorities for Certificate of Origin in India 2.17 Summary Test Your Knowledge Chapter 3: Foreign Trade Policy (FTP): An Overview 3.1 Introduction 3.2 Meaning of Foreign Trade Policy 3.3 Evolution of India’s Foreign Trade Policy 3.4 Legal Basis of Foreign Trade Policy in India 3.5 Role of the Central Government 3.6 Role of DGFT in Foreign Trade Policy

1.18 1.18 1.20 1.23 1.24

2.1 2.2 2.5 2.6 2.7 2.7 2.8 2.9 2.12 2.13 2.17 2.19 2.20 2.21 2.22 2.22 2.23 2.23 2.24 2.24 2.26

3.1 3.2 3.2 3.3 3.3 3.4

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3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14

Foreign Trade Policy as a Bridge Objectives of Foreign Trade Policy (FTP) Components of Foreign Trade Policy (FTP) 2023 Foreign Trade Policy (FTP) and Handbook of Procedures (HBP) ITC(HS) Classification and FTP Content of FTP Chapters Major Provisions of FTP 2023 Summary Test Your Knowledge

3.4 3.5 3.6 3.7 3.7 3.8 3.10 3.12 3.13

UNIT 2 EXPORT-IMPORT PROCEDURE AND DOCUMENTATION

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Chapter 4: Export-Import Procedure 4.1 Introduction 4.3 4.2 Export-Import (EXIM) Procedure 4.4 4.3 Features of Export–Import (EXIM) Procedure 4.5 4.4 Difference between EXIM Transactions and Domestic Transactions 4.5 4.5 Main Parties Involved in EXIM Procedure 4.7 4.6 Export Procedure 4.7 4.6.1 Stage I: Finalisation of Commercial and Contractual Terms 4.8 4.6.2 Stage II: Pre-shipment Preparation and Compliance 4.10 4.6.3 Stage III: Customs Clearance and Shipment 4.13 4.6.4 Stage IV: Post-shipment Documentation, Payment Realisation and Record Maintenance 4.14 4.7 Import Procedure 4.15 4.7.1 Stage I: Import Planning and Compliance Check 4.16 4.7.2 Stage II: Commercial Finalisation and Pre-shipment Arrangements 4.18 4.7.3 Stage III: Arrival and Customs Clearance in India 4.20 4.7.4 Stage IV: Delivery and Post-clearance Record Maintenance 4.22 4.8 Export Procedure and Import Procedure: Basic Differences 4.23 4.24 4.9 Export and Import through Post 4.10 Export and Import through Courier 4.25 4.11 E-Commerce Export Hubs 4.26 4.12 Summary 4.27 Test Your Knowledge 4.28

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Chapter 5: Export-Import Documentation 5.1 Introduction 5.2 Meaning of Documentation in Foreign Trade 5.3 Importance of Documents in Foreign Trade 5.4 Essential Features of Good Documentation 5.5 Classification of Export Documents: An Overview 5.6 Documents Related to Goods 5.7 Documents Related to Shipment and Customs Movement 5.8 Documents Related to Payment 5.9 Import Documents: Common and Import-Specific Documents 5.9.1 Documents Common to Export and Import Transactions 5.9.2 Documents Mainly used in Import Procedure 5.10 Export Documents vs Import Documents 5.11 Digital Documentation and Document Consistency 5.12 Summary Test Your Knowledge Chapter 6: Export Financing 6.1 Introduction 6.2 Export Financing: Meaning & Definitions 6.3 Features of Export Financing 6.4 Need and Importance of Export Finance 6.5 Main Institutional Sources of Export Finance 6.6 Classification of Export Finance 6.7 Classification of Export Finance on the Basis of Time Period 6.8 Classification of Export Finance on the Basis of Stage of Export Cycle 6.9 Pre-shipment Finance 6.9.1 Need for Pre-shipment Finance 6.9.2 Purposes for which Pre-shipment Finance is used 6.9.3 Common Forms of Pre-shipment Finance 6.9.4 Documents Required for Pre-shipment Finance 6.9.5 Adjustment or Repayment of Pre-shipment Finance 6.9.6 Importance of Pre-shipment Finance 6.10 Post-shipment Finance 6.10.1 Need for Post-shipment Finance 6.10.2 Purposes for which Post-shipment Finance is used

5.1 5.2 5.2 5.3 5.3 5.4 5.6 5.9 5.12 5.13 5.13 5.15 5.15 5.16 5.17

6.1 6.2 6.2 6.3 6.4 6.5 6.5 6.6 6.7 6.8 6.8 6.8 6.9 6.9 6.10 6.10 6.11 6.11

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6.10.3 Common Forms of Post-shipment Finance 6.10.4 Documents Required for Post-shipment Finance 6.10.5 Adjustment or Repayment of Post-shipment Finance 6.10.6 Importance of Post-shipment Finance 6.11 Difference between Pre-shipment Finance and Post-shipment Finance 6.12 Summary Test Your Knowledge

6.11 6.12 6.12 6.13 6.13 6.14 6.15

UNIT 3 EXPORT PROMOTION SCHEMES AND ORGANISATIONAL SUPPORT

Chapter 8: Organisational Support for Export-Import 8.1 Introduction 8.2 Role of Organisational Support in International Trade 8.3 Organisational Support Framework for Export–Import Trade

7.3 7.4 7.4 7.5 7.6 7.7 7.9 7.11 7.14 7.16 7.19 7.23 7.24 7.27 7.28 7.28 7.29 7.30

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Chapter 7: Export Promotion - Incentive Schemes 7.1 Introduction 7.2 Framework of Export Promotion, Incentive and Compliance Measures 7.3 Export Promotion Schemes and Export Incentive Schemes 7.4 Meaning and Objectives of Export Promotion Schemes 7.5 List of Export Schemes covered in this chapter 7.6 Niryat Bandhu Scheme 7.7 Registered Exporter System (REX) 7.8 Duty Drawback Scheme 7.9 Remission of Duties and Taxes on Exported Products Scheme (RoDTEP) 7.10 Rebate of State and Central Taxes and Levies Scheme (RoSCTL) 7.11 Export Promotion Capital Goods Scheme (EPCG) 7.12 Legacy Export Incentive Schemes: MEIS and SEIS 7.13 SCOMET Guidelines 7.14 EPCG vs RoDTEP vs RoSCTL 7.15 EPCG, REX and SCOMET: Practical Comparison 7.16 Current and Legacy Scheme Position 7.17 Summary Test Your Knowledge

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Ministry of Commerce & Industry (MoCI) Department of Commerce Functions of the Department of Commerce Directorate General of Foreign Trade (DGFT) Directorate General of Trade Remedies (DGTR) Export promotion Councils (EPC’s) Commodity Boards 8.10.1 Commodity Boards and Commodity Markets: Difference 8.10.2 Classification of Commodity-related Boards 8.10.3 Common Features and Functions of Commodity Boards 8.10.4 Tea Board of India 8.10.5 Coffee Board of India 8.10.6 Rubber Board 8.10.7 Spices Board 8.10.8 Tobacco Board 8.10.9 Other Commodity-focused Boards under Different Ministries 8.10.10 Recent Commodity-specific Boards 8.11 Export Inspection Council (EIC) and Export Inspection Agencies (EIA) 8.11.1 Export Inspection Council (EIC) 8.11.2 Salient Features of EIC 8.11.3 Main Functions of EIC 8.11.4 When EIC Certification may be Required 8.11.5 Export Inspection Agencies (EIAs) 8.11.6 Operational Services for Exporters 8.11.7 Importance of EIC and EIAs in Export–Import Trade 8.12 Summary Test Your Knowledge

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8.4 8.5 8.6 8.7 8.8 8.9 8.10

8.4 8.5 8.7 8.10 8.12 8.15 8.19 8.19 8.20 8.21 8.21 8.22 8.23 8.24 8.24 8.25 8.28 8.28 8.29 8.29 8.29 8.30 8.30 8.31 8.32 8.32 8.34

UNIT 4 LEGAL FRAMEWORK OF CUSTOMS LAW Chapter 9: Legal Framework of Customs Law: Digital Systems and Clearance Procedures 9.1 Introduction 9.2 Legal Framework of Customs Law: An Overview 9.2.1 Main Sources of Customs Law in India 9.2.2 Institutional Support for Customs Administration

9.3 9.4 9.4 9.5

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9.5 9.5 9.6 9.6 9.7 9.7 9.7 9.7 9.8 9.8 9.9 9.9 9.10 9.10 9.10 9.10 9.11 9.11 9.11 9.12 9.12 9.12 9.13 9.14 9.14 9.14 9.15 9.15 9.19 9.22 9.24 9.25

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Digital Customs Administration in India 9.3.1 Meaning of Digital Customs 9.3.2 Need for Digital Customs Systems 9.3.3 Main Elements of Digital Customs Administration 9.3.4 Benefits of Digital Customs in Export-Import Trade 9.4 Indian Customs Electronic Gateway—ICEGATE 9.4.1 Introduction to ICEGATE 9.4.2 Evolution and Journey of ICEGATE 9.4.3 Main Services Provided through ICEGATE 9.4.4 Features of ICEGATE 9.4.5 Importance of ICEGATE for Exporters and Importers 9.5 Contactless Customs and e-Sanchit 9.5.1 Meaning of Contactless Customs 9.5.2 Need for Contactless Customs 9.5.3 Meaning of e-Sanchit 9.5.4 Working of e-Sanchit 9.5.5 Use of e-Sanchit in Export-Import Documentation 9.5.6 Benefits of Contactless Customs and e-Sanchit 9.6 Indian Customs EDI System—ICES 9.6.1 About ICES 9.6.2 Role of ICES in Customs Processing 9.6.3 Customs-related Functions Performed through ICES 9.6.4 Difference between ICEGATE and ICES 9.6.5 Importance of ICES in Export-Import Management 9.7 Customs Procedure: Meaning and Basic Framework 9.7.1 Main Parties Involved in Customs Clearance 9.7.2 Important Customs Permissions: Out of Charge and Let Export Order 9.8 Customs Procedure for Clearance of Imported Goods 9.9 Customs Procedure for Clearance of Exported Goods 9.10 Role of Electronic Systems in Customs Clearance 9.11 Summary Test Your Knowledge

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UNIT 5 MAKE IN INDIA AND EXPORT COMPETITIVENESS Chapter 10: Make in India and Export Competitiveness 10.1 Introduction 10.2 Make in India 10.3 Difference between “Made in India” and “Make in India” 10.4 Need for Make in India 10.5 Objectives of Make in India 10.6 Export Relevance of Make in India 10.7 Meaning of Export Competitiveness 10.8 Dimensions of Export Competitiveness 10.9 Linkage between Make in India and Export Competitiveness 10.10 Meaning of Export Preparedness 10.11 Export Preparedness Index 10.12 NITI Aayog Export Preparedness Index (EPI) 2020 10.13 Need for the Export Preparedness Index 10.14 Objectives of the Export Preparedness Index 10.15 Structure of Export Preparedness Index (EPI) 10.16 Pillar-1: “Policy” 10.17 Pillar-2: “Business Ecosystem” 10.18 Pillar-3: “Export Ecosystem “ 10.19 Pillar-4: “Export Performance” 10.20 Interrelationship among the Four Pillars 10.21 Rationale Behind the Selection of Four Pillars of EPI 10.22 Analysis of the Export Preparedness Index (EPI) 10.22.1 Country-Level Analysis 10.22.2 State-Level Analysis 10.22.3 Category-wise Rankings 10.22.4 Overall Rankings 10.22.5 Pillar-wise Performance Analysis 10.23 Sub-Pillar Analysis 10.23.1 Key Learnings from the Analysis 10.24 Key Learnings, Strategies and Way Forward 10.25 Strategies for Enhancing Export Competitiveness 10.26 Way Forward

10.3 10.4 10.4 10.5 10.5 10.6 10.7 10.8 10.8 10.9 10.10 10.10 10.11 10.12 10.12 10.14 10.14 10.15 10.16 10.17 10.17 10.18 10.18 10.19 10.19 10.20 10.21 10.22 10.22 10.23 10.24 10.25

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10.27 Latest Update on Export Preparedness Index 10.26 10.28 Emerging Export Entrepreneurs in India 10.27 10.29 Characteristics of Emerging Export Entrepreneurs 10.28 10.30 Importance of Emerging Export Entrepreneurs 10.28 10.31 Factors Contributing to the Growth of Export Entrepreneurship in India 10.29 10.32 Challenges Faced by Emerging Export Entrepreneurs 10.29 10.33 Government Initiatives Supporting Export Entrepreneurs 10.30 10.34 Role of Emerging Export Entrepreneurs in Strengthening Export Competitiveness 10.31 10.35 Policy Support for Micro Exporters 10.31 10.36 Need for Policy Support to Micro Exporters 10.32 10.37 Objectives of Policy Support for Micro Exporters 10.32 10.38 Key Features of Support for Micro Exporters 10.33 10.39 Benefits of Supporting Micro Exporters 10.33 10.40 Challenges Faced by Micro Exporters 10.34 10.41 Role of Micro Exporters in India’s Export Competitiveness 10.34 10.42 Summary 10.35 Test Your Knowledge 10.36

5

EXPORT-IMPORT DOCUMENTATION

CHAPTER

In international trade, documents speak for the goods. They prove sale, shipment, origin, insurance, customs compliance and payment, and even a small error in documentation may delay clearance or block payment.

Learning Objectives

5.1 INTRODUCTION In the previous chapter, we studied the export and import procedure in a stepby-step manner. In every stage of that procedure, documents play a central role.

Goods may physically move from one country to another, but the movement is legally recognised only when it is supported by proper documents. Documents prove the sale, packing, shipment, origin, insurance, customs clearance, payment and compliance of goods. In foreign trade, exporters, importers, customs authorities, banks, carriers, insurance companies, and government agencies all depend on documents to complete their work. A small error in a document may delay clearance, block payment, create disputes or affect export benefits. Therefore, documentation is not a mere formality; it is the backbone of export-import transactions. This chapter explains the meaning, importance, classification and major types of documents used in foreign trade, along with the growing role of digital documentation and document consistency.

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After studying this chapter, the learner should be able to: 1. Understand the meaning and importance of documentation in foreign trade; 2. Identify the essential features of good export-import documentation; 3. Classify export documents on the basis of their purpose and use; 4. Explain the documents related to goods, shipment, customs movement and payment; 5. Distinguish between documents common to export and import and documents mainly used in import procedure; 6. Understand the role of digital documentation and consistency of records in modern export-import trade.

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UNIT 2: EXPORT-IMPORT PROCEDURE AND DOCUMENTATION

5.2 MEANING OF DOCUMENTATION IN FOREIGN TRADE Documentation in foreign trade refers to the preparation, checking, submission, and preservation of documents required in the export-import business. These documents record the details of goods, parties, price, shipment, insurance, customs clearance, banking and payment.

In foreign trade, every document has a specific purpose. Some documents prove the sale of goods, some prove shipment, some are required by customs, some are needed by banks, and some support insurance claims or export benefits.

Thus, documentation in foreign trade refers to the complete set of commercial, transport, customs, banking, insurance and regulatory documents used to complete an export or import transaction in a lawful and organised manner.

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5.3 IMPORTANCE OF DOCUMENTS IN FOREIGN TRADE In foreign trade, documents play a very important role. A customs officer may not personally know the exporter or importer. A bank may not physically see the goods. A foreign buyer may not be present at the port. In such situations, documents become the main source of proof and communication.

The importance of documents in foreign trade may be explained as follows: 1. Legal Proof: Documents provide legal evidence that the export or import transaction has taken place. They show the details of goods, parties, value, shipment and compliance with law.

2. Customs Clearance: Customs authorities rely on documents for classification, valuation, assessment, examination and clearance of goods. Incorrect or incomplete documents may delay clearance or result in a penalty.

3. Payment: Banks and buyers depend on documents before making or releasing payment. This is especially important in letter of credit, documentary collection and other bank-based payment methods.

4. Ownership and Possession: Certain transport documents help establish the right to claim delivery of goods. They show who is entitled to receive the goods at the destination.

5. Insurance Claim: If goods are lost or damaged during transit, insurance documents help the exporter or importer file a claim. Without proper documents, the claim may be delayed or rejected.

6. Export Benefits: Export benefits such as duty drawback, RoDTEP, RoSCTL or other incentives may require proper documents and declarations. Correct records help the exporter claim these benefits smoothly, wherever applicable.

7. Buyer Confidence: Clear and accurate documents create confidence in the mind of the foreign buyer. They show that the exporter is professional, reliable and serious about compliance.

8. Audit and Record Keeping: Documents are needed for customs verification, GST refund, bank compliance, DGFT benefits, accounting and audit purposes. Proper record-keeping also helps answer future queries from authorities.

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5.3

5.4 ESSENTIAL FEATURES OF GOOD DOCUMENTATION A good export-import document should be: 1. Correct: It should contain accurate information.

2. Complete: It should include all required details.

3. Clear: It should be easy to read and understand.

4. Consistent: Details such as name, quantity, value, HS code, invoice number and shipment details should match across documents.

5. Timely: It should be prepared and submitted within the required time.

6. Legally Valid: It should comply with the applicable law, policy, contract and banking requirements.

7. Supported by Records: It should be backed by proper invoices, declarations, certificates and other supporting documents.

A document may look small, but even a small mistake in it can cause delays, penalties, document rejection, or difficulty receiving payment.

5.5 CLASSIFICATION OF EXPORT DOCUMENTS: AN OVERVIEW

Category Documents Related to Goods

Main Purpose Examples Describe the goods, quantity, Commercial invoice, packing value, packing and quality. list, certificate of origin, inspection certificate.

Documents Related Prove movement and carriage Bill of lading, airway bill, to Shipment of goods. courier receipt, postal receipt.

Documents Related Help in receiving payment Letter of credit, bill of exto Payment from the buyer or through change, bank covering schedthe bank. ule, e-BRC. Customs Documents Used for export clearance and Shipping bill, export licence, customs compliance.

SCOMET authorisation, wherever applicable.

Insurance Documents Cover the risk of loss or dam- Marine insurance policy, inage to cargo. surance certificate.

Certification DocuProve origin, quality, health, Certificate of origin, health ments safety, testing or compliance. certificate, test certificate, inspection certificate.

Scheme/Benefit Doc- Support export benefit claims, Drawback, RoDTEP, RoSCTL uments wherever applicable. declarations and related records.

Note: This classification gives a broad view of export documentation. The important documents are discussed in detail in the following sections.

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Export documentation includes different types of documents. Each document serves a different purpose in the export process. Some documents describe the goods, some prove shipment, some facilitate customs clearance, some support payment, and some are required for insurance, certification, or export benefits.

For a clear understanding, export documents may be broadly classified as follows:

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5.6 DOCUMENTS RELATED TO GOODS1 Documents related to goods describe the basic details of the goods being exported. They usually mention the nature, quantity, value, quality, packing and origin of the goods. These documents help the buyer, customs authorities, banks, transporters and other agencies understand what is being exported.

The main documents related to goods include: 1. Proforma invoice 2. Commercial invoice 3. Consular invoice 4. Packing note and packing list 5. Certificate of origin 6. Inspection certificate These documents are discussed below.

1. Proforma Invoice A pro forma invoice is a preliminary invoice issued by the exporter to the foreign buyer before the actual sale is completed. It is not the final sale invoice.

It is generally used to inform the buyer about the proposed price, quantity, description of goods, delivery and payment terms, shipment details, and the validity of the offer.

The buyer may use the proforma invoice to arrange an import licence, open a letter of credit, obtain foreign exchange approval, or confirm the order. Once the buyer accepts the terms, the export order or contract may be finalised.

In simple words, a proforma invoice is a formal offer or estimate issued before the actual export sale.

2. Commercial Invoice A commercial invoice is the final sale invoice issued by the exporter to the foreign buyer after the goods are sold. It is one of the most important documents in export trade because it shows the value and terms of the sale.

A commercial invoice generally contains the exporter’s name, buyer’s name, invoice number and date, description of goods, HS code, quantity, price, currency, delivery term, payment term, country of origin, port of loading, port of destination and bank details.

Customs authorities use it for valuation and assessment, banks for payment processing, and the buyer for import clearance and accounting purposes. Thus, it serves as the primary sales document in an export transaction.

3. Consular Invoice A consular invoice is a special invoice that may be required by the importing country. It is usually certified by the consulate or embassy of the importing country located in the exporter’s country.

1. Some of these documents were briefly referred to in the export-import procedure discussed in the previous chapter. In this chapter, they are explained separately from the documentation point of view, so that students can understand their purpose, contents and practical use.

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The purpose of a consular invoice is to help the importing country verify the details of goods, value, origin and shipment. It may be required for customs control, statistical records or prevention of under-valuation.

This document is not required in every export transaction. It is prepared only when the buyer or the importing country’s rules specifically require it.

4. Packing Note and Packing List A packing note or packing list gives package-wise details of the goods being exported. It explains how the goods are packed and what each package contains.

It generally includes details such as package number, marks and numbers, description of goods, quantity in each package, gross weight, net weight, dimensions and type of packing. This document helps customs authorities, transporters, warehouse operators, and the buyer identify and properly handle the goods.

The packing list is different from the commercial invoice. The commercial invoice focuses on value and sale details, while the packing list focuses on packing and package details.

Basis Main focus Shows price

Main question answered

Packing List Packing and package details.

Usually no detailed price.

Customs examination, logistics and warehouse handling.

What is the value of the goods?

How are the goods packed?

5. Certificate of Origin: A Certificate of Origin certifies the country in which the goods are produced, manufactured or sufficiently processed. It is used to prove the origin of the goods in international trade.

This certificate may be required by the buyer, the importing country’s customs authority, bank or trade agreement rules. It may also help the importer claim concessional customs duty under a trade agreement, wherever applicable.

Certificates of Origin are broadly of two types: Basis

Preferential Certificate of Origin Purpose Helps in claiming preferential duty benefit under a trade agreement.

Link Linked with FTA/PTA or other preference scheme.

Benefit May reduce customs duty for the importer.

Condition Goods must satisfy rules of origin under the relevant agreement.

Non-Preferential Certificate of Origin Certifies the origin of goods only.

Used for general origin proof.

Usually does not give duty preference.

Used as general proof of origin.

Note: DGFT’s Certificate of Origin system provides a digital platform for issuance of Certificates of Origin. Electronic filing of Non-Preferential Certificates of Origin became mandatory from 1 January 2025.

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Main use

Commercial Invoice Value and sale details.

Yes. Customs valuation, banking and buyer’s accounting.

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UNIT 2: EXPORT-IMPORT PROCEDURE AND DOCUMENTATION

6. Inspection and Quality Certificates Some goods require technical confirmation or quality assurance before export.

In such cases, inspection and quality certificates are issued by authorised agencies, laboratories, inspection bodies or competent authorities.

These certificates help prove that the goods meet the required quality, safety, health, technical or buyer-specified standards. They are especially important for food products, chemicals, pharmaceuticals, engineering goods, agricultural products and regulated items.

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Basis

Preferential CoO

Inspection Certificate

Confirms that goods have been inspected.

Quality Certificate

Confirms that goods meet the specified quality standard.

Test Certificate

Gives product testing results.

Certificate of Analysis

Shows composition, purity or analytical details.

Health Certificate

Used for certain food, animal-origin or health-sensitive products.

Phytosanitary Certificate

Used for plants and plant products.

Fumigation Certificate

Confirms fumigation or treatment of goods or packing material.

These certificates may be required by the buyer, the importing country, the customs authority, the bank, or product-specific regulations. If a required certificate is missing, the goods may face delays, rejection, or difficulty with clearance at the destination.

5.7 DOCUMENTS RELATED TO SHIPMENT AND CUSTOMS MOVEMENT Documents related to shipment and customs movement help prove that goods have been presented for export, handed over for transport, loaded for shipment, or brought into India for import clearance. These documents are important for customs authorities, exporters, importers, banks, carriers, freight forwarders and buyers.

Some of these documents are primarily used for customs clearance, while others serve as evidence of the carriage or movement of goods. The important documents covered under this category are: 1. Shipping Bill 2. Mate’s Receipt 3. Cart Ticket 4. Bill of Lading 5. Airway Bill 6. Bill of Entry Note: The Shipping Bill and the Bill of Entry are primarily customs documents.

A Shipping Bill is used for export clearance, while a Bill of Entry is used for

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5.7

import clearance. The remaining documents are more directly connected with shipment and transport of goods. The following table gives a brief overview: Document Shipping Bill

Used In Export clearance

Mate’s Receipt Sea shipment

Main Purpose Main customs document for export of goods from India.

Acknowledges that goods have been loaded on the vessel.

Cart Ticket

Movement of goods to Helps in identifying and allowing movement of goods for shipment. port/dock/CFS

Bill of Lading

Sea shipment

Evidence of receipt of goods, contract of carriage and, in some cases, document of title.

Airway Bill

Air shipment

Evidence that goods have been accepted for carriage by air.

Bill of Entry

Import clearance

Main customs document for clearance of imported goods into India.

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These documents are discussed below in detail.

1. Shipping Bill A Shipping Bill is the main customs document used for export clearance from India. It is filed by the exporter or customs broker via the electronic customs system before the goods are permitted for export.

The Shipping Bill contains important details such as exporter’s name, buyer’s name, IEC, GSTIN, description of goods, HS code, quantity, value, port of loading, destination, export scheme, duty drawback/RoDTEP details, invoice details and packing details.

Customs authorities use the Shipping Bill to check whether the goods are correctly classified, properly valued and legally exportable. After examination and completion of formalities, customs issues the Let Export Order (LEO). Only after this permission can the goods be loaded for export.

Thus, the Shipping Bill is the basic legal document for export clearance.

2. Mate’s Receipt A Mate’s Receipt is a document issued by the captain, chief mate, or an authorised officer of the ship after the goods are loaded on board the vessel. It confirms that the goods have been received on the ship for carriage.

It usually mentions details such as the name of the vessel, shipping marks, number of packages, description of goods, apparent condition of goods and date of loading.

Mate’s Receipt is important because it acts as the basis for issuing the Bill of Lading. If the goods or packages appear damaged, the Mate’s Receipt may contain remarks about their condition. Such remarks may later affect the nature of the Bill of Lading.

In simple words, the Mate’s Receipt is an acknowledgement that the goods have been loaded on the ship.

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UNIT 2: EXPORT-IMPORT PROCEDURE AND DOCUMENTATION

3. Cart Ticket A Cart Ticket is a document used to move export goods to the port, dock, warehouse, Inland Container Depot, or Container Freight Station, depending on port practice and the nature of the shipment.

It helps in identifying the goods brought for shipment. It may contain details such as exporter’s name, shipping bill number, package details, marks and numbers, vehicle details, destination and shipping instructions.

The purpose of a Cart Ticket is to facilitate the smooth entry and movement of goods within the port or cargo-handling area. In modern electronic systems, its form and use may differ from port to port, but the basic purpose remains the same: to connect the physical movement of goods with shipment and customs records.

4. Bill of Lading A Bill of Lading is an important transport document used in sea shipment. It is issued by the shipping line or its agent after the goods are received for shipment or loaded on board the vessel.

A Bill of Lading generally performs three important functions: 1. it is evidence that the carrier has received the goods; 2. it is evidence of the contract of carriage by sea; and 3. in some cases, it acts as a document of title to the goods.

It contains details such as the names of the shipper, consignee, and notify party; the vessel name; the port of loading and port of discharge; the description of goods; the number of packages; the marks and numbers; the freight details; and the date of issue.

The buyer usually needs the Bill of Lading to claim delivery of goods at the destination port. Banks also rely on it in letter-of-credit and documentary-collection transactions.

Thus, the Bill of Lading is one of the most important documents in sea exports.

5. Airway Bill An Airway Bill is a transport document used when goods are sent by air. It is issued by the airline or air cargo agent as evidence that the goods have been accepted for carriage by air.

It contains details such as the shipper’s name, the consignee’s name, the departure and destination airports, flight details, a description of the goods, the number of packages, the weight, the freight charges, and handling instructions.

An Airway Bill is generally not a document of title like a negotiable Bill of Lading.

It is mainly evidence of carriage and helps in tracking and delivery of air cargo.

Airway Bill is commonly used for high-value, urgent, lightweight, perishable or time-sensitive goods.

6. Bill of Entry A Bill of Entry is the main customs document used for import clearance in India.

It is filed by the importer or customs broker upon the goods’ arrival in India.

CH. 5: EXPORT-IMPORT DOCUMENTATION

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It contains details such as importer’s name, IEC, GSTIN, supplier details, invoice details, description of goods, HS code, quantity, value, country of origin, port of import, bill of lading or airway bill details, duty rate, exemption claim and assessment details.

Customs authorities use the Bill of Entry to assess customs duty, IGST and other applicable charges. After assessment, payment of duty and completion of examination or verification, customs issues the Out of Charge (OOC) order.

Only then can the importer take delivery of the goods.

Thus, while the Shipping Bill is used for export clearance, the Bill of Entry is used for import clearance.

5.8 DOCUMENTS RELATED TO PAYMENT

Document

Main Purpose

Letter of Credit

Gives bank-backed assurance of payment, subject to compliance with LC terms.

Bill of Exchange

Written order directing the buyer to pay a specified amount.

Bank Covering Schedule

Lists and instructs the bank regarding documents submitted for payment/collection.

Documents against Payment Documents are released to the buyer only after Instructions payment.

Documents against Acceptance Documents are released after the buyer accepts the Instructions bill for future payment.

Electronic Bank Realisation Electronic proof that export payment has been Certificate realised through banking channels.

Bank Advice

Shows credit of payment or other transaction details issued by the bank.

TAXMANN®

Documents related to payment help the exporter receive money from the foreign buyer through proper banking channels. These documents are important because export payments are generally linked to shipping documents, banking instructions, payment terms, and the realisation of foreign exchange.

The important documents covered under this category are: 1. Letter of Credit 2. Bill of Exchange 3. Bank Covering Schedule 4. Documents against Payment Instructions 5. Documents against Acceptance Instructions 6. Electronic Bank Realisation Certificate 7. Bank Advice The following table gives a brief overview:

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UNIT 2: EXPORT-IMPORT PROCEDURE AND DOCUMENTATION

1. Letter of Credit A Letter of Credit, commonly called an LC, is a banking arrangement in which the buyer’s bank provides assurance of payment to the exporter, provided the exporter submits documents that comply with the terms of the LC. LC is useful because it provides the exporter with greater payment security.

However, it does not mean automatic payment. The exporter must ensure that all documents strictly match the LC terms. Even a small mismatch in name, date, quantity, description, shipment period or document wording may create a discrepancy and delay payment.

Under an LC, the exporter should carefully check: 1. whether the invoice matches the LC; 2. whether the packing list matches the invoice; 3. whether the transport document is correct; 4. whether all required certificates are attached; 5. whether shipment is made within the permitted date; 6. whether documents are submitted before expiry; 7. whether names and addresses are consistent; and 8. whether value and quantity are within LC limits.

Thus, LC gives payment assurance, but only when the exporter submits correct and compliant documents.

2. Bill of Exchange A Bill of Exchange is a written payment order used in export trade. Through this document, the exporter directs the foreign buyer to pay a specified amount either immediately or at a future date.

It is commonly used along with shipping documents in documentary collection and letter of credit transactions. The exporter is called the drawer, the buyer is called the drawee, and the person entitled to receive payment is called the payee.

The main types of bills are: Type

Meaning

Sight Bill

Payable immediately when presented to the buyer.

Usance Bill

Payable after a fixed period, such as 30, 60 or 90 days.

Documents against Payment Documents are released to the buyer only after Bill payment.

Documents against Acceptance Documents are released after the buyer accepts the Bill bill for payment at a future date.

In simple terms, a Bill of Exchange is a payment instrument used to collect payment from a foreign buyer.

3. Bank Covering Schedule A Bank Covering Schedule is a document prepared by the exporter while submitting export documents to the bank. It contains a list of enclosed documents and provides instructions to the bank on their handling.

EXPORT-IMPORT MANAGEMENT AUTHOR : PUBLISHER : DATE OF PUBLICATION : EDITION : ISBN NO : NO. OF PAGES : BINDING TYPE :

Gajendra Singh, K.M. Bansal, Ekta Singh Taxmann July 2026 2026 Edition 9788167010186 312 Paperback

Rs. 425 DESCRIPTION Export-Import Management is a comprehensive, authentic and thoroughly up-to-date textbook that maps the whole canvas of India's foreign trade—from the meaning of exports and imports to Incoterms 2020, the Foreign Trade Policy 2023, export finance, export-promotion and remission schemes, the digital customs ecosystem and export competitiveness. Written for university students yet equally useful to practitioners, it explains the technical world of foreign trade in simple, systematic and student-friendly language without diluting academic rigour, and lays the subject out in the exact sequence a real export-import transaction unfolds. What sets it apart is how current it is: built on FTP 2023 and Incoterms 2020, it reaches into 2025–2026 developments—postal-mode Duty Drawback/RoDTEP/RoSCTL (Jan 2026), e-Commerce Export Hubs (2025), mandatory e-filing of non-preferential Certificates of Origin (Jan 2025) and NITI Aayog's Export Preparedness Index 2024—and engages Make in India, export competitiveness, emerging export entrepreneurs and micro exporters.

Specially written for undergraduate commerce and management students and strictly aligned to the University of Delhi DSE syllabus—DSE-5.6 for B.Com. (Hons.) and DSE-6.8 for B.Com. (Programme)—it is equally suitable for comparable courses across India. Its procedure-first treatment also makes it valuable to: • Postgraduate, MBA and Other Management/Commerce Learners • Aspiring and Practising Exporters and Importers • Start-ups, MSMEs, E-Commerce Exporters, Artisans and Micro Exporters • Teachers, Trainers and Professionals The Present Publication is the 1st Edition, authored by Prof. Gajendra Singh, Prof. K.M. Bansal & Dr Ekta Singh, with the following noteworthy features: • [Fully Syllabus-aligned] Based on the University of Delhi DSE-5.6 (B.Com. Hons.) and DSE-6.8 (B.Com.) syllabus, and adaptable to comparable courses elsewhere • [Simple, Systematic, Student-friendly] Plain-language explanations with definitions, worked examples and memory hooks (e.g., 'D/P = pay first, get documents; D/A = accept now, pay later') • [Truly End-to-end] One volume spanning FTP, legal formalities, Incoterms 2020, the full export and import procedures, documentation, export finance, promotion/remission schemes, organisational support, customs law and export competitiveness • [Current on Policy] Built on FTP 2023 and Incoterms 2020—deemed exports, Rules of Origin, the shift 'from incentives to remission,' Rupee trade settlement, Towns of Export Excellence and revised Status Holder thresholds • [Digital-first Customs] A dedicated treatment of ICEGATE, ICES, e-Sanchit, contactless/faceless customs, RMS and SWIFT, alongside the statutory backbone (Customs Act 1962; Customs Tariff Act 1975) • [Genuinely 2025–2026 Fresh] Postal Drawback/RoDTEP/RoSCTL (Jan 2026), e-Commerce Export Hubs (2025), non-preferential CoO e-filing (Jan 2025) and the Export Preparedness Index 2024 (four pillars, 13 sub-pillars, 70 indicators and latest state rankings) • [India-centric Worked Examples] Every Incoterm, scheme and finance concept illustrated with named Indian firms, real ports (Nhava Sheva, Mundra, Chennai) and trade lanes (Jeddah, Rotterdam, Hamburg, Jebel Ali) • [Exam-ready Pedagogy] Learning Objectives, a point-wise Summary and a 'Test Your Knowledge' block (long-answer questions, short notes and MCQs with a 'Correct Option and Hint' key—roughly 140 MCQs), plus dozens of comparison tables and diagrams

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