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Purchase Order

A form used by the buyer to make a purchase. The forms are called Purchase Order forms or PO’s. A PO, once sent, is a legal contract between the buyer and the supplier. Since it is a legal contract, the order can be purchased on credit and your company will be billed later.

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Parts of purchase order

PO Number
Style/Lot Number
Order Quantity
Shipment Date
Unit Cost
Total Cost of that PO
Factory Name
Vendor Name
Shipping Address

Overseas Port reach Date

Sourcing Agent

Shipment Terms

LC Number

Fabric Supplier Name and Code

Fabric Content

EXIT COUNTRY PORT

Trims and Accessories cost

Product Category

Season

Description

Goods Description

Size wise Order Quantity

Transaction Policy

Payment Terms

Necessary Instruction

Terms and Conditions

Overship Tolerance

Undership Tolerance

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Invoice

When used in foreign trade, a commercial invoice is a customs document. It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders.

Although there is no standard format, the document must include a few specific pieces of information such as the parties involved in the shipping transaction, the goods being transported, the country of manufacture, and the Harmonized System codes for those goods. A commercial invoice must often include a statement certifying that the invoice is true, and a signature.

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Parts of invoice

Invoice number and date
Buyers order number
Exporter
Consigning
Country of origin of goods
Country of final destination
Vessels /flight number
Port of discharge

Port of loading

Final destination

Description of goods

Quantity

Rates

Amount

Number and kinds of package

Total quantity

L.C. terms

Currency

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Consular Invoice

Document which is submitted to the embassy of a country or consul to be specific to which goods are to be exported before the goods are sent abroad. It can be obtained through the consular representative of the country to which the goods are being shipped. It is a document certifying the genuineness of a shipment of goods and shows information such as the consignee, consignor and value of the shipment, among others.

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Packing list

An export packing list is a detailed document that states all of the product and packaging details contained in each shipment. Shippers must create a compliant packing list document to be used by parties along the supply chain. Therefore, packing list documents are required for all seafreight and airfreight shipments.

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Parts of packing list

Garments maker, Specific style and buyer name
Total and size wise order quantity
Style description and color
Size-wise Cut vs. Order vs. pack quantity, carton quantity
Carton wise case number
Size-wise carton net and gross weight
Carton measurements and Total carton CBM
Total over or short pack quantity

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Sample packing list

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GR form Guaranteed Remittance

GR form is a declaration that exporter gives against each shipment that he will realize the full export proceeds. He submits the declaration in duplicate to the Customs at the time of shipment. After allowing exports, the Customs send the original to RBI and return the duplicate duly endorsed to the exporter.

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Features of GR Form.

Exporter gives to guarantee to Reserve bank that payment of sold goods under export will be bring with in specified days .
This is the pre shipment document
one copy for Reserve bank one for Exporter commercial bank ,after receiving payment from the buyer commercial bank submit the copy to reserve bank ,
when both copies are received by Reserve bank then payment said to be clear
Payments has to be received in 180 days exceptions for SEZ.

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AR- 4 Form

The Central Excise and Salt Act of India and the related rules provide the refund of excise duty paid. This also provides exemption from the payment of excise duty both on the final export production and inputs used in the manufacture of export products, popularly known as rebate in excise duty. The documents used are Invoice and AR4/ AR5 forms. As soon as goods are ready for dispatch to the port for shipment, the production department of export firm is to apply to the central excise authority for excise clearance of the goods.
The exporters prepare six copies of AR4/AR5 forms.

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Original and Sixtuplicate : To be handed over to the Exporter. Original shall be used for filling rebate claim.
Duplicate: Customs sends this copy to Rebate Sanctioning Authority, declared on ARE-1. This copy on a request of exporter may be sealed and handed over to the exporter/his authorized agent for presenting to the rebate sanctioning authority.
Sixtuplicate copy: Used for claiming incentives (duty drawback).

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EXIM License

This code is better known in India simply as an export license, and is easy to apply for and get from the zonal or regional office of DGFT which has jurisdiction over your location of business.

IEC is a 10-digit number granted by the Directorate General of Foreign Trade (DGFT) to any Indian entity seeking to do international trade.

. You can now also submit an online IEC application at dgft.gov.in with the required documents and fee of Rs. 250.
Source - https://evoma.com/business-centre/guide-for-online-iec-application-form-for-import-export-license-in-india/

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Choose your products. The IEC will be granted only for the product category you apply for. You can seek IEC for additional categories, but you will have to pay an additional fee for each category.
Decide your company name, if you have not registered a firm as yet. New firms that are planning to do export-import business should consider names ending with Exports (eg: Ramsay Exports).
Register your firm, if it’s not already registered.
Apply online for IEC – Importer Exporter Code with DGFT, and pay fee of Rs. 250 through electronic money transfer.
EDC Registration – Register your export company with nearest port ( Airport and/or Seaport)

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Indent and acceptance of order

An indent is an order placed by an importer with the exporter for the supply of certain goods. It is usually prepared in duplicate or triplicate. The indent may be of several types like open indent, closed indent and confirmatory indent. An indent contains the following information:

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An indent contains the following information:

(a) Quantity of goods to be imported
(b) Quality of goods
(c) Method of forwarding the goods
(d) Nature of packing
(e) Mode of setting payment
(f) Price to be charged
(g) Sale of delivery

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Bank realization certificate of credit

Bank Realisation Certificate (BRC) is issued by Banks based on realisation of payment against export by an Exporter.

Any firm applying for benefits under Foreign Trade Policy is required to furnish valid BRC as a proof of realisation of payment against exports made.

Source - http://dgftebrc.nic.in/ebrc/downloads/e-brc_doc_1_2.pdf

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Documents against acceptance (D/A)

As per D.A terms, once the shipping documents along with bills of exchange received by the buyer’s bank, the buyer is informed to accept documents by buyer’s bank. The buyer accepts documents by signing bills of exchange sent by the exporter, agreeing to pay the value of goods shipped as per agreed period of time. (say, 30 days from the date of bill of lading, 60 days from the date of bill of lading or 90 days from the date of bill of lading).

Source - https://howtoexportimport.com/Documents-against-Acceptance-How-reliable-the-term-38.aspx

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QC certificate

Inspection can be defined, in the apparel industry, as the visual examination or review of raw materials (such as fabric, Buttons, Zippers, Sewing threads, Trims, etc), partially finished components of the garments and completely finished garments in relation to some standards, specifications or requirements, as well as measuring the garments if they meet the required measurements.

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Port trust Date

Port Trust Board is the statutory authority responsible for managing shipping and trade through a commercial seaport. India's first Port Trust Board was established for Bombay Port in 1873, following passage of the Bombay Port Trust Act in 1879.
Mumbai
Kolkata
Chennai
Kandla
Jawaharlal Nehru Port (near Mumbai)
Mormugao
New Mangalore
Cochin
V.O. Chidambaranar Port
Port Blair (Andaman and Nicobar islands)
Visakhapatnam
Paradip

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Bill of exchange

A bill of exchange is a written order once used primarily in international trade that binds one party to pay a fixed sum of money to another party on demand or at a predetermined date.

Further read - https://www.youtube.com/watch?v=Vrs80NHtYnk

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Customs clearence

Customs clearance work involves preparation and submission of documentations required to facilitate export or imports into the country, representing client during customs examination, assessment, payment of duty and co taking delivery of cargo from customs after clearance along with documents.

1. Exports Documentation: Purchase order from Buyer, Sales Invoice, Packing List, Shipping bill, Bill of Lading or air way bill, Certificate of Origin and any other specific documentation as specified by the buyer, or as required by financial institutions or LC terms or as per importing country regulations.
2. Imports Documentation: Purchase Order from Buyer, Sales Invoice of supplier, Bill of Entry, Bill of Lading or Air way bill, Packing List, Certificate of Origin, and any other specific documentation required by the buyer, or financial institution or the importing country regulation.

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Certificate of origin

A Certificate of Origin Declaration of Origin (often abbreviated to C/O or CO or DOO) is a document widely used in international trade transactions which attests that the product listed therein has met certain criteria to be considered as originating in a particular country. A certificate of origin / declaration of origin is generally prepared and completed by the exporter or the manufacturer, and may be subject to official certification by an authorized third party.

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CPSC

The United States Consumer Product Safety Commission is an independent agency of the United States government. The CPSC seeks to promote the safety of consumer products by addressing “unreasonable risks” of injury; developing uniform safety standards; and conducting research into product-related illness and injury.

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CPSC regulations

�• Children’s Apparel – Lead Content Limits, Flammability standard�• Children’s Metal Jewelry – Lead Content Limits�• Children’s Outerwear – Drawstring Standard�• Children’s Products – Requirements for Lead Paint�• Children’s Sleepwear – Tight-fitting standard�• General Wearing Apparel – Flammability standard�Most textiles are exempt from testing. Textiles consisting of the following fibers meet the CPSIA lead content limits and do not require lead testing and certification:��• natural fibers (dyed or undyed), including, but not limited to, cotton, kapok, flax, linen, jute, ramie, hemp, kenaf, bamboo, coir, sisal, silk, wool (sheep), alpaca, llama, goat (mohair, cashmere), rabbit (angora), camel, horse, yak, vicuna, qiviut, guanaco;��• manufactured fibers (dyed or undyed) including, but not limited to, rayon, azlon, lyocell, acetate, triacetate, rubber, polyester, olefin, nylon, acrylic, modacrylic, aramid, and spandex.��

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ECGC

The ECGC Limited (Formerly Export Credit Guarantee Corporation of India Ltd) is a company wholly owned by the Government of India based in Mumbai, Maharashtra.[1] It provides export credit insurance support to Indian exporters and is controlled by the Ministry of Commerce. Government of India had initially set up Export Risks Insurance Corporation (ERIC) in July 1957. It was transformed into Export Credit and Guarantee Corporation Limited (ECGC) in 1964 and to Export Credit Guarantee Corporation of India in 1983.

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Dock Challan:
It is a form to be filled by the importer or his clearing agent in the dock for payment of dock charges. Dock charges are paid when all the formalities of the customs are completed. The goods imported will be delivered only when dock charges are paid.
Dock Warrant:
This is document issued by Warehouse keepers to the persons who have deposited the goods with them.

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Registration of Export unit

Registration with Reserve Bank of India (RBI)
Registration with Director General of Foreign Trade (DGFT)
Registration with Export Promotion Council
Registration with Commodity Boards
Registration with Income Tax Authorities

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Export schemes

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Advance Authorization Scheme

Businesses are allowed to import input in the country without having to pay duty payment, if this input is for the production of an export item. Moreover, the licensing authority has fixed the value of the additional export products to not below than 15%. The scheme has the validity period of 12 months for imports and 18 months for carrying out the Export Obligation (EO) from the date of issue typically.
Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping duty, Safeguard Duty and Transition Product-Specific Safeguard duty, Integrated tax, and Compensation Cess, wherever applicable, subject to certain conditions.

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