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1. EOU/ SEZ Units 5.4 An EOU/ SEZ unit may apply for an EPCG Authorisation in<br />under EPCG Scheme terms of paragraph 6.18(d) of the Policy. Such application shall<br />be made in the form given in ‘Aayaat Niryaat Form’ alongwith<br />the documents prescribed therein. In addition, the applicant<br />shall also furnish a copy of the `No Objection Certificate’ from<br />the Development Commissioner showing the details of the<br />capital goods imported/indigenously procured by the applicant,<br />its value at the time of import/sourcing and the depreciated<br />value for the purpose of assessment of duty under the scheme.<br />Such cases shall not be required to be forwarded to<br />Headquarters EPCG Committee. The concerned Regional<br />authority shall issue EPCG Authorisations based on the “No<br />Objection Certificate” produced from the concerned<br />Development Commissioner.<br />Leasing of Capital Goods 5.6 An EPCG Authorisation holder may, on the basis of firm<br />contract between the parties, source the capital goods from a<br />domestic leasing company in accordance with paragraph 2.25<br />of the Policy. In such cases, the Bill of Entry of imported capital<br />goods or the commercial invoice of indigenously procured<br />capital goods, as the case may be, shall be signed jointly by<br />the EPCG Authorisation holder and the leasing company at<br />the time of import/local supply respectively. However, the<br />EPCG Authorisation holder shall alone be fully responsible<br />for fulfillment of export obligation.<br />Condition for Fulfilment 5.7 In addition to the conditions mentioned in paragraph 5.4 of the<br />of Export Obligation Policy, the following conditions shall also be applicable for<br />fulfilment of export obligation under the scheme:-<br />5.7.1 The exports shall be direct exports in the name of the EPCG<br />Authorisation holder. However, the export through third<br />party(s) as defined in Chapter 9 of the Policy is also permitted<br />under the EPCG scheme. If a merchant exporter is the importer,<br />the name of the supporting manufacturer shall also be indicated<br />on the shipping bills. At the time of export, the EPCG<br />Authorisation No<br />5.7.3 Exports made aga Generalised System (a) GSP is a non contractual instrument by which<br />of Preferences (GSP) industrialized (developed) countries unilaterally and on<br />the basis of non reciprocity extend tariff concessions to<br />developing countries. The following countries extend<br />tariff preferences under their GSP Scheme.<br />(i) United States (ii) New Zealand (iii) Belarus<br />(iv) European Union (v) Japan (vi) Russia<br />(vii) Canada (viii) Norway<br />(ix) Australia (only to LDCs)<br />(x) Switzerland (xi) Bulgaria<br />GSP schemes of these countries details the sectors/<br />products and tariff lines under which these benefits are<br />available, besides the conditions and the procedures<br />governing the benefits. These schemes are renewed and<br />modified from time to time. Normally the Customs of<br />GSP offering countries require information in Form ‘A’<br />(prescribed for GSP Rules Of Origin) duly filled by the<br />exporters of the beneficiary countries and certified by<br />authorised agencies. List of agencies authorised to issue<br />GSP Certificate of Origin is given in Appendix-4A.<br />Global System of Trade (b) Under the agreement establishing Global System of<br />Preference (GSTP) Trade Preference (GSTP), tariff concessions are<br />exchanged among developing countries, who have<br />signed the agreement. Presently, there are 46 member<br />countries of GSTP and India has exchanged tariff<br />concessions with 12 countries on a limited number of<br />products. Export Inspection Council (EIC) is the sole<br />agency authorised to issue Certificate of Origin under<br />GSTP.```````++inst the Government of India/EXIM Bank<br />EXPORT DOCUMENTATION <br />Export documentation is a tedious but necessary process that all exporters must pay close attention to, as documentation requirements vary considerably by country, commodity, and situation. Although exporters must fill out and submit many different forms for each international shipment, most require similar data elements and can (and should!) be duplicated precisely from one document to the next. Shipping documents are the key to international trade, and have been used for thousands of years. Documents outline the sale, shipment, and responsibilities of each party so that the full transaction is understood and complete without delay or additional costs. Documents also ensure compliance with applicable regulations. <br />Using an experienced Freight Forwarder will help you to avoid problems and secure your relationship with your customers. Consider providing your Forwarder with a suitable “letter of authorization” to act as your agent on overseas documentation matters. Below are some factors to consider when determining which documents are needed for a particular shipment. <br />Country of origin and destination, as well as transshipment <br />Mode of transportation — truck, rail, ocean, air, pipeline <br />Commodity — agriculture, livestock, safety/security, end-use, intangible- software, service <br />Size — value, volume, weight, dimensions <br />Parties to the transaction — shipper, consignee, agents, brokers, banks <br />Based on these factors, many of the following documents (described in more detail on pages 2-5) may be required for an international shipment. These documents can be prepared by the exporter and then processed or forwarded by a Freight Forwarder. <br />Invoices — Commercial, Pro-forma, Consular <br />Packing Lists — Dock, or Warehouse, Receipt <br />Bills of Lading (B/L) — Ocean B/L, or Motor/Truck or Air Bill, or Way Bill <br />Electronic Export Information (formerly the Shipper’s Export Declaration, or SED) is not an actual document but still a very important part of the export process <br />Certificates of Origin (C/O), sometimes country-specific — NAFTA C/O, Israel C/O <br />Declaration of Dangerous Goods (DGD) — Hazmat, placards <br />Certificates — Insurance, Free Sale, Inspection, Phytosanitary, Authentication (Apostille) <br />Miscellaneous: Letters of Credit, ATA Carnet, Duty Drawback <br />OVERVIEW <br />EXPORT DOCUMENTATION—THE FORMS AND PROCESS 2 <br />Essential Documentation <br />The invoice and bill of lading are the two documents required for every export shipment. As such, you should ensure that all other documents associated with the shipment match the information on these documents. <br />Invoices <br />Pro-forma Invoice: A pro-forma invoice is an invoice sent to the buyer before the shipment, giving the buyer a chance to review the sale terms (quantity of goods, value, specifications) and get an import license, if required in their country. It also allows the buyer to work with their bank to arrange any financial process for payment. For example, to open a Documentary Credit (Letter of Credit), the buyer’s bank will use the pro-forma invoice as a source of information. The exporter/seller should not send their customer a pro-forma invoice unless they fully understand what they are offering to the buyer. If no changes are required on the pro-forma invoice after the buyer reviews it, the exporter can simply change its date and title and turn it into a commercial invoice. <br />Commercial Invoice: A commercial invoice is prepared by the seller/exporter and addressed to the buyer/importer, and is one of the first documents prepared when a transaction has been agreed upon. The invoice identifies the buyer and seller, describes the goods sold and all terms of sale, including Inco Terms, payment terms, relevant bank information, shipping details, etc. An invoice may be itemized to show cost of goods, freight, and insurance, or other special handling. The invoice may be numbered and have multiple “purchase order” numbers. U.S. Customs does not actually need a copy of the invoice, unless requested, but the information included is used to prepare other documents. <br />Consular invoice: A consular invoice is the commercial invoice stamped or notarized by the consulate or embassy of your customer’s country, if required. For example, if you are exporting to Egypt and your buyer requires a consular invoice, the Egyptian embassy in Washington, D.C. will do this for a small fee. Usually a freight forwarder will offer this service, but an exporter can send the original invoice to the consulate, have it notarized/legalized as required, pay the fee, and have the documents returned or forwarded on. It is important to understand that consular invoices are required in the buyer’s country, so you need to add the time/costs associated with obtaining one to the price of the goods you are shipping. <br />The invoice should include a [non]-diversion statement, as provided below. As the U.S. Principal Party of Interest (or exporter of record), this statements attests to and informs your customers that you are using due diligence to control the shipment and abide by regulations, particularly shipments to embargoed/sanctioned countries.<br /> <br />Essential data elements must be uniform on all documents: <br /> Name & Address of Seller / Shipper <br /> Name & Address of Buyer / Consignee <br /> Origin Point & Destination Point <br /> Port of Load / Unload <br /> Description of the Goods <br /> Number of Pieces, Cartons, Crates <br /> Net weight, Gross Weight, Volume <br /> Invoice & Purchase Order Numbers <br />Material Handling <br />Packing List: A packing list is prepared by the shipper and is a detailed break down of the items within a shipment. It may also include any “special marks” for identification. For example, the customer may want “ABC XX” in blue letters on the side of the packaging. For insurance claims and tracking purposes, it helps to describe what is in each “package”. The packing list should also reference the customer’s purchase order number and destination. Often, a packing list is taped to palletized cargo or on the main carton/box of a shipment so that the importer’s customs agency or any transportation handlers can have easy access to it to know what the goods are and their destination. The quantity and items listed on the commercial invoice must match with the packing list, but not necessarily match the pro-forma invoice. Some companies prepare a packing list that is identical to the commercial invoice, minus the prices and other monetary details. <br />Dock (or Warehouse) Receipt: The dock or warehouse receipt is issued by a warehouse supervisor or port officer and certifies that the shipping company has received the goods. This document is used to transfer accountability when goods are moved by the domestic carrier to the port of embarkation and left with the international carrier. At this time, the carrier’s Bill of Lading is also signed by both parties and copies are issued accordingly. <br />Bills of Lading (B/L) <br />A Bill of Lading is issued by the carrier to the shipper for receipt of the goods, and is a contract between the owner of the goods and the carrier to deliver the goods. Sometimes the B/L acts as title to the goods so an “Original” B/L is issued- usually a set of three. Whoever presents one of those Original, Negotiable B/L can take possession of the goods.. <br />Types of bill of lading<br />Non-negotiable (or “straight”) B/L: Indicates that the shipper will deliver the goods to the buyer and that title of the goods has not been transferred to the shipper (i.e., the buyer or seller “owns” the goods while they are being shipped). This type of B/L is often used when payment for the goods has already been made in advance.<br /> <br />Negotiable (or “shipper’s order” ) B/L: Serves as a title document to the goods, issued “to the order of” a party, usually the shipper, whose endorsement is required to effect its negotiation. It can also be issued “to the order of” the buyer’s bank as part of a documentary credit/letter of credit stipulation so that when the buyer’s bank receives the Original B/L, they can endorse it over to the buyer at the time of payment for the buyer to clear the goods at customs. Sometimes the negotiable B/L may be consigned “To Order” without reference to a company. A negotiable B/L can be bought or traded while the goods are in transit, whereas a “Straight” B/L is non-negotiable and is consigned to the buyer. <br />The B/L is frequently electronically manifested by the shipping line company using the data sent by the shipper or its agent. Bills of Lading also include a “notify party” (usually the buyer or their agent) so that when the vessel arrives at the port of destination, the carrier can notify the party that the goods are available, are in need of customs clearing, or are ready for pick up. Usually the importer can pick up the goods after customs clearance and duties are paid. “Freight Collect” means the consignee pays the freight charges as well. “Freight Prepaid” means the shipper pays the freight charges, but not customs clearance unless the terms are “delivered duty paid”. <br />4 <br />Payment is due to the exporter before the importer receives the goods; “advance charges” can be added to the bill so the importer pays for the goods along with the other charges. Two checks should be received so the carrier can forward one check to the exporter for the cost of goods. <br />Inland Bill of Lading: Issued by the trucking company and/or the railroad line for taking the goods from the exporter’s facility to the port of embarkation or consolidation facility. <br />Ocean Bill of Lading (OBL): The Ocean B/L is an invoice, and may be issued as a “clean” bill of lading, meaning the carrier certifies that the goods have been received without visible damage. An “On-Board” B/L may be issued when the goods are received into the carrier’s port facility, basically confirming the cargo will be sailing. <br />Air Way Bill (AWB): The Air Way Bill is a form of bill of lading used for the air transport of goods. AWBs are non-negotiable, mainly because of the short amount of time that the goods are in transit. The original AWB is rarely needed by the importer at the other end of the shipment to prove ownership of goods. A “house airway bill” is issued by a freight forwarder on behalf of the actual carrier, which is the case when a freight forwarder has a contract rate with an air cargo service to expedite the documentation. <br />Export and License Declaration <br />Electronic Export Information (EEI): “EEI” is the acronym for the new process of filing what was the Shipper’s Export Declaration (SED) form 7525V. Census uses the EEI to collect trade data on the products, quantities, dollar value, volume and destinations of U.S. exports. To properly complete an EEI, the exporter is responsible for classifying their product under the appropriate Schedule B Number, or HS Code. An EEI is filed online and the Internal Transaction Number (Sample: ITN X20091110000001) is applied to key shipping documents, i.e., Invoice, B/L, verifying the actual filing <br />Certificates <br />Certificate of Origin (C/O): A document prepared by the original manufacturer and certified by a quasi-official authority - such as a Chamber of Commerce - stating the items’ country of origin. Most countries that require a C/O will accept a generic C/O as long as all of the required data elements are given. However, some countries, like Israel, have a special green C/O form that must be used. To take advantage of duty free provisions in a U.S. Free Trade Agreement, be sure to use the particular C/O that addresses the “rules of origin” criteria for each country. <br />Certificate of Insurance: This document indicates the type and amount of insurance in force on a particular shipment for loss or damage while in transit. It is sometimes referred to as Marine insurance, but may cover the entire voyage<br />Certificate of Inspection: Some customers will require a “pre-shipment inspection” to satisfy their own requirements or local regulations, according to an industry, government, or carrier specification. Neutral organizations specialize in these types of certifications, whereby an inspector checks the goods in question prior to shipment. Sometimes an inspector can look at a sample, but other times inspection must occur when the goods are packaged to issue a certificate. <br />Certificate of Free Sale: This form may be required by the importing country to ensure that the goods offered for entry comply with domestic requirements for sale in the U.S. It is often required for agricultural, medicinal, or cosmetic products and can be issued by the VEDP or U.S. FDA. <br />Special Documents <br />Declaration of Dangerous Goods (DGD): A DGD declares the nature, quantity, and quantity of hazardous materials and reports the proper classification for each item. <br />ATA Carnet: A Carnet, sometimes referred to as a “merchandise passport”, is used for shipping goods to countries on a temporary, duty-free basis only. For a fee, this passport allows a company to ship needed materials to foreign trade shows or conduct repairs overseas. Within a year, the materials must return to the U.S. in order to avoid a hefty fine. <br />Documentary Letters of Credit (L/C): A letter of credit is a document issued by a bank committing to pay the seller/exporter a stated amount of money on behalf of the buyer/importer as long as the specific terms and conditions are met. Of all shipping documents, errors or making changes to the L/C are the most costly and time consuming because of the risk of payment in error. <br /> <br /> Inspection Certificate or Inspection Report The inspection certificate---inspection report or report of findings---is required by some importers and/or importing countries. Please see the sample Inspection Report. The export-trader uses such a report in the inspection of goods purchased from a manufacturer. The export-manufacturer also uses such a report in the inspection of its own productions.In case an inspection certificate is required, the importer may stipulate in the letter of credit (L/C) to use a specific independent surveyor.In the case of a foreign government required pre-shipment inspection, which is stipulated in the L/C, the report of findings can be in the form of a security label attached on the invoice. The label bears the number and date of the corresponding report of findings issued by the foreign government engaged surveyor.Certificates of Origin The certificate of origin is a document certifying the country in which the product was manufactured, and in certain cases may include such information as the local material and labor contents of the product.Some importing countries require a certificate of origin to establish whether or not a preferential duty rate is applicable. A popular example of the certificate of origin is the Form A, which is often called the GSP Form A.The certificate of origin (C/O)is an alternative to the declaration or the certification and/or legalization of the commercial invoice. The C/O is based on the rules of the country of origin.The country of origin is the country where the goods are grown, produced or manufactured. The manufactured goods must have been substantially transformed in the exporting country as the country of origin, to their present form ready for export. Certain operations such as packaging, splitting and sorting may not be considered as sufficient operations to confer origin.The certificate of origin includes the Form A, Chamber of Commerce Certificate of Origin, Exporter's Certificate of Origin, and Free Trade Market Certificate of Origin. The trade agreement, import practice, and letter of credit (L/C) stipulation determine the type of C/O needed.Form APlease see the sample Form A and the explanations.Chamber of Commerce Certificate of OriginThe importer or the importing country may require a specific certificate of origin (C/O) form issued by a Chamber of Commerce in the exporting country. Some countries may further require the consular legalization of the C/O after the Chamber of Commerce certification. The certification and legalization normally require payment of a fee.Exporter's Certificate of OriginUnless the letter of credit (L/C) stipulates a specific certificate of origin (C/O) form and/or the issuer and/or the wording (data content), the exporter may issue his/her own C/O using the company letterhead. The C/O contents may include the same data as in the commercial invoice and packing list, adding a declaration that the goods in question are manufactured in the exporting country, and that the amount shown on invoice is the true and correct value.Depending on the L/C stipulation, the certificate of origin issued by the exporter may be self-certified and/or require certification by a Chamber of Commerce or the government foreign trade office. The certification normally requires payment of a fee, unless self-certified.Free Trade Market Certificates of Origin NAFTA Certificate of OriginThe North American Free Tree Agreement (NAFTA) Certificate of Origin is used within the NAFTA countries (i.e., Canada, USA and Mexico). The form is available at the customs office. It is self-certified by the exporter. EC Certificate of OriginThe European Community (EC) Certificate of Origin, as its name implies, is used in the European Community. It is issued by the Chamber of Commerce of the exporting country, usually with payment of a fee.EC countries consist of Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, and United Kingdom. Movement CertificatesDifferent Movement Certificates are being used in the European Union (EU)---EC (European Community) and EFTA (European Free Trade Association) countries. The certificates require endorsement by the customs of the exporting country.EFTA countries consist of Austria, Finland, Iceland, Norway, Sweden, Switzerland, and Liechtenstein.Customs Invoice The customs invoice is used in lieu of the commercial invoice in a few importing countries for customs purposes, but the importer often needs a commercial invoice too. The customs invoice can be in a form called the certificate of value. The invoices vary in format but they contain essentially the same data as in the commercial invoice and packing list.The invoice is self-certified by the exporter. The blank customs invoice is available from the customs broker or forwarder and specialized printer.Certain importing countries may require their importers, not the exporters in the exporting country, to provide the completed customs invoice for customs clearance.Consular Invoice As the name implies, the consular invoice is a specific invoice issued by the Consul of the importing country. Many importing countries, mainly less developed countries, have already phased out this invoice. It is used for customs clearance and other purposes, as such any errors or omissions on the invoice may cause problems and fines at the customs in the importing country. The consular invoice is a form of non-tariff barrier.The format of the consular invoice form varies greatly, but it contains essentially the same data as in the commercial invoice and packing list. The invoice form is either in the language of the importing country (Spanish usually) or bilingual, that is, a combination of English and Spanish usually.The exporter's declaration normally is included in a consular invoice. The consular legalization and payment of a consular fee is required. The consular fee can be a percentage of the FOB invoice value.<br />