Question

What are the procedures relating to Export trade?

Answer 1

1. Receiving Trade Enquiry: Exporter receives trade enquiry (written request) from the importer / his agent who intends fir buy the product.

2. Receiving Indent and Sending Confirmation: After the scrutiny of quotation / proforma invoice, the buyer who intends to buy the goods sends an indent to exporter. The latter may either receive the order directly from the importer or through an agent who acts as an intermediary between the exporter and the importer.

3. Arranging Letter of Credit: Under this stage exporter intends to satisfy himself/herself about the trust worthiness of the importer. In this case the exporter is requested to arrange a letter of credit in his favour.

4. Obtaining Importer Exporter Code (IEC) and RBI Code Number: Exporter has to apply in Ayaat Niryatt Form 2 A (ANF2A) to the Regional Authority of the Director General of Foreign Trade (DGFT) in the region where the registered office of the company is located. Exporter has to mention the number in all the shipping documents.

5. Obtaining Registration cum Membership Certificate (RCMC) from Export Promotion Council/Commodity Board: An Exporter is required to obtain RCMC from Export Promotion Councils/Commodity Board/Development Authority in order to avail himself/herself of export incentives, concessions, and other facilities offered by Government.

6. Manufacturing/Procuring Goods and Packing items: Exporters steps into manufacturing and procuring of goods required by the importer.

7. Export Inspection Certificate: After the goods have been packed as per the specifications of importer, the exporter has to apply to the Export Inspection Agency (EIA).

8. Insurance of Goods: Exporter has to arrange for getting the goods insured to protect them against the various risks like deterioration.

9. Certificate of Origin: Import regulation of foreign countries may require that all this import consignments must accompany a certificate of origin.

10. Consular Invoice: Where the customs duties are charged on the basis of value of goods at import’s port (ad – valorem basis), the customs officers are empowered to open the consignment to calculate duties.