An exporter and importer are not known to each other, and they are resided in different countries. Considering the different risk factors including the exchange rate risk, the commercial documents are considered as one of the most important documents. Without lapses of any documents, an exporter cannot ship his goods to the importer.
In this section, we have discussed regarding essential commercial documents needed to perform export activities. Export documents not only give the details about the product and its destination port but also used for the purpose of taxation and quality control inspection certificate.
However, the following documents to be maintained by an exporter:
Bill of Export
Shipping Bill/ Bill of Export is the main document required by the Customs Authority for allowing shipment. A shipping bill is issued by the shipping agent and represents some kind of certificate for all parties, included ship’s owner, seller, buyer and some other parties. For each one represents a kind of certificate document.
Potential buyer send enquiry to an exporter, requesting him to send information regarding price, quality, size, weight, grade, mode of delivery, payment terms, type of packing for export of goods. The exporter/seller sends a reply to the enquiry in the form of quotation known Pro-forma Invoice.
Bill of Lading
Bill of lading is the Acknowledgment of the master of the ship or a carrier. This is the legal document between the shipper and carrier. Bill of lading stats necessary information regarding the goods such as type, quantity and destination of the goods. The bill of lading serves as a recipient of shipment when the goods is delivered to the predetermined destination.
The commercial documents is the legal document between the supplier/seller and the customer (buyer) where the description of the goods clearly stated and the amount due on the customer. The Commercial documents is used by the customs authority for determining customs duties.
Certificate of origin
The certificate of origin is the proof documents which states that the goods are manufactured in the country from where export is taking place. Having received the excise clearance, the exporter may have to obtain a certificate of origin from the trade consulate/Chamber of commerce located in the exporter country.
Different authorized institutions such as Tedfo, SGS, Intersect, Bureau Varitus provides all necessary quality assurance certificate to ensure that only good quality products are exported from a country.
Dock receipt & warehouse receipt
These certificate is issued by the warehouse supervisor or port officer certifying that the goods have been received by the shipping company. Dock receipt are usually prepared by shippers or forwarders.
Destination control statement
The destination control statement is a legal statement that the goods you are exporting are destined to the country indicated in all the shipping documents.
After forwarding the goods, the exporting firm gets goods insured with an insurance company to protect against the risks of probable loss or damage of goods due to the perils of sea during transit.
Another important and mandatory document for the exporter. However, following documents are needed for obtaining Export License (ERC):
- Attested copy of valid trade license
- Attested copy of membership certificate from local chamber of commerce or trade association
- Attested photocopy of TIN
- Original copy of Treasury Challan
- Partnership deed (if Partnership business)
- Attested copy of certificate of incorporation, Articles of Association (AOA) & Memorandum of Association (MOA)
- Bank Certificate.
Export packing list
A packing list is prepared by the shipper & sent to consignee for accurate tallying of the delivered goods which included in each shipping package, giving the quantity, description & weights of the contents.