Insights & Research
CA Ajmal Muhajir
Head Consultant : Taxation & Audit
The International business is the purchasing and selling of the goods, commodities and services outside its national borders. Exporting refers to the selling of goods and services from the home country to a foreign nation. India is amongst the world’s top 20 nations with respect to the export of merchandise. For undertaking an export business, an entrepreneur should have a clear understanding of the rules and regulations along with the documentation pertaining to these export transactions.
2. Governing Authorities
3. Export Procedure
In general, an export procedure flows as stated below:
4. Preparation for Executing the Order
The exporter should make required arrangements for executing the order:
5. Formalities by a Forwarding Agent
The formalities to be performed by the agent include –
6. Bill of Lading
The Indian exporter of the goods approaches the shipping company and presents the receipt copy issued by the master of the ship and in return gets the Bill of Lading. Bill of lading is an official receipt which provides the full description of the goods loaded on the ship and the name of the port of destination.
7. Shipment Advise to the Importer
The Indian exporter sends shipment advice to the importer of the goods so that the importer gets informed about the dispatch of the goods. The exporter sends a copy of the packing list, a non-negotiable copy of the Bill of Lading, and commercial invoice along with the advice note.
8. Presentation of Documents to the Bank
The Indian exporter confirms that he possesses all necessary shipping documents namely;
Then the exporter draws a Bill of Exchange on the basis of the commercial invoice. The Bill of Exchange along with these documents is called Documentary Bill of Exchange. The exporter then hands over the same to his bank.
9. The Realization of Export Proceeds
In order to realize the proceeds of the export, the exporter of the goods has to undergo specific banking formalities. On submission of the bill of exchange, these formalities are initiated. Generally, the exporter receives payment in foreign exchange
© 2023 Business Consultant & Law Firm - Legacy Partners. All Rights Reserved.
Designed by Nuewelle Digital Solutions LLP
We typically reply in a few minutes