Step By Step Procedures Of Export & Documents Used In Exporting

Long Question: Step By Step Procedures Of Export & Documents Used In Exporting

Every country has a different policy about export the goods but adopts a similar procedure for with minor differences. Accordance with the rules laid down by the government of Pakistan the procedure followed in exporting goods is as under.

1. Receiving inquiry First of all the exporter receives trade inquires about the goods that the importer wants to buy. Such inquiries are made about type of product, size, quality, grade, brand, price, delivery mode, schedule, mode or types of packing, method of payment, port of delivery. The export will up a perform (an invoice) giving all above details.

2. Receiving indent (order) Having agreed to the price, quality, amount, and mode of delivery the exporter will receive the indent from the importer. The order contains the details as the name of the product, brands, quality, price, size, grade, packing, port of delivery, mode of payment, and other instruction.

3. Obtaining Letter Of Credit (L/C) The bank in favor of the exporter issues letter of credit. An L/C is an undertaking or a guarantee by the importer’s bank that the bill of exchange drawn by the exporter will be accepted on presentation. The letter of credits so issued is usually irrevocable making the position of the exporter safer and bringing the risk of nonpayment to zero.

4. Determine Of Export Quota When the goods being exported are short the government fixes export quota for such items. Therefore, for such products, the export quota fixed and sectioned. 

5. Obtaining Export License Export license must be obtained before exporting goods especially raw materials and agriculture produces. The export license may be of the following categories. Quota license, open general license, limited free license, free license newcomer’s license. 

6. Compliance Of Foreign Exchange Rules The exporter will have to file a declaration under the foreign exchange regulation act’s that he will surrender to the state bank of Pakistan all the foreign exchange earned through the transaction in question. 

7. Fixation Of Foreign Exchange Rate The exchange rate in the open market continues changing day to day. Therefore the moment the export transaction made prevailing rate at that time will be determined for the purpose of payment by the importer. 

8. Arranging For Goods If the exporter himself a producer he will start producer production, otherwise he will buy all the goods from the open market according to the sample agreed upon. 

9. Packing and Marketing The mode of packing is according with the agreement with the importer. After packing, marketing comes. The container of package bears certain marks so that it can be identified from other goods such as the name of the product and brand, quality or number, or weight & any particular number. 

10. Appointment of Forwarding Agent In case of export forwarding agent is appointed. The forwarding agents perform all functions starting from marketing the container to loading abroad the ship. 

11. Obtaining Shipping Order The exporter has to hire the services of a shipping company for getting a space in the ship. Freight charged is on the bases of volume and not to weight if the consignment is big the entire ship is chartered. Such an agreement is known as chartered party agreement 

12. Preparing Invoice After receiving the shipping order the exporter prepares the invoice stating price, quantity, quality, mode of packing, port of destination, name of the ship, etc. 

13. Obtaining Custom Permit Custom permit is issued by the customs authorities to the exporter after determining whether or not the goods are dutiable and if they are, whether the duty has been paid. 

14. Insurance Of Goods Goods being exported must be insured by an insurance company, the process insures that the goods will reach their destiny safely. 

15. Obtaining Certificate Of Origin If the goods being exported are locally produced or originated the exporter must prove it. The certificate of origin fulfills this objective. 

16. Loading The Goods On Board The Ship At this stage consignment is sent or board the ship of the shipping company with which the exporter entered into the agreement. The mate service receives the consignment and compares it with the documents handed over to him. 

17. Issuance Of Bill Lading Bill of lading is issued by the shipping company and is signed by the captain and masters of the mercantile ship. It contains name of the ship, port of export, port of import, date of dispatch, importer’s name and address & name and Address of the shipping company.

18. Drawing Accepting And Discounting Bill Of Exchange Exporter’s draw’s a bill of exchange on the importer. It is an unconditional order in writing drawn on the debtor asking him to make the payment in a specified period of time to the person mentioned therein or his order.

DOCUMENTS USED IN EXPORTING THE GOODS
1. Indent 
2. Letter of credit (L/C) 
3. Bill of exchange (B/E) 
4. Bill of lading 5. Shipping order 
6. Performa invoice 
7. Insurance receipt 
8. Dock receipt 
9. Mate receipt 
10. Export invoice 
11. Consular invoice 
12. Certificate of origin 
13. Shipping bill

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