Aligned Documentation System & Export Documents

Submitted By:Aarushi Singh(1101) Abhinav Chauhan(1102)

1

Index
Aligned Documentation System
Classification of Documents

What is Aligned Documentation System?

The standardization of the pre-shipment export documents is done on the basis of the system, popularly known as Aligned Documentation System (ADS)

Objectives
To simplify trade documentation on an international scale ,bringing benefit to traders.
To enter information on an easy basis and access the information with greater convenience.

Entire Information

Master Document 1

Master Document 2

Commercial Documents (14/16)

Regulatory Documents (4/9)

Advantages
Dispenses conventional documentation

preparation: The documents are aligned to one another. The common items of information occupy the same relative position on each form.
Easier to complete and access: Common

positions are used for data items, thus its possible to use a Master Document which helps to produce a range of documents using a photocopier.

 Benefit to all parties: It speeds up

form preparation, cuts cost and reduces errors.

Better image: Simplifies document

checking and training new staff. It enhances an organization's professional image.

Paper Size and Specification

Paper Size A4 Length Width Margins Top Left Right Bottom 297 mm 210 mm 10 mm 20 mm 6 mm 7mm

Classification of ADS
Documents Aligned System

Commercial Documents

Regulatory Documents

Commercia l Documents
10

Objectives
To effect physical transfer of goods

from exporters place to the importers place.

To transfer property and title of

goods from exporter to importer.

Realization of export proceeds from

the exporter to importer.

Classification
Commercial Documents

Principal Export Documents

Auxiliary Export Documents

Principal Export Documents

Commercial Invoice Packing List Certificate of Inspection Bill of Lading/Combined transportation Documentation Shipping Advice Certificate of Origin Insurance Certificate/Policy

Bill of Exchange

Auxiliary Export Documents

Proforma Invoice Intimation for Inspection Shipping Instructions Insurance Declaration Shipping Orders Mates Receipt Application for Certificate of Origin Letter to the Bank for Collection/Negotiation of Documents

Regulatory Documents
15

They have been prescribed by different government departments and bodies in the context of export trade. These documents are meant to comply with the various rules and regulations under relevant laws governing the export trade.
There are 9 regulatory documents associated with the pre-shipment stage of an export transaction.

Regulatory Documents
Gate Pass-I/Gate Pass-II ARE-I Shipping Bill/Bill of Export

Export Application/Dock Challan

Receipt for Payment of Port Charges Vehicle Ticket Exchange Control Declaration Forms Freight Payment Certificate Insurance Premium Payment Certificate

of Commercial
and Regulatory

Documents
18

Goods Foreign Exchang e Regulatio n Document s Related To Excisable Goods

Shipment

Payment

Inspectio n

Documents Related to Goods

20

Proforma Invoice Legalized Invoice

Commercial Invoice Customs Invoice

Consular Invoice Packing Note and Packing List

Certificate of Origin

Proforma Invoice
It is the starting point of an export contract.
It sent by the exporter to the importer on receiving the trade inquiry.

Details:1) Name and address of exporter 2) Name and address of intending importer

3) Nature of goods
4) Mode of transportation 5) Unit price in terms of internationally accepted

quotation
6) Name of country of origin of goods 7) Name of country of final destination 8) Signature of exporter 9) Period required for executing contract after

receipt of confirmed order

Importance:1) Forms a basis of all trade

transactions and further negotiation or contract is made on this basis.

2) Helps the importer to obtain the

import license.
3) Helps to obtain foreign

exchange for completion of contract

Commercial Invoice
It is the sellers bill for merchandise or goods sold him. It is also known as DOCUMENTS OF CONTENTS as it is contains all the important information necessary for the preparation of other export documents Information about special invoice forms can be gathered from their respective Export Promotion Council and any recognized Chamber of Commerce.

Details:1) Name and address of exporter 2) Name and address of importer

3) Date
4) Exporters reference number 5) Importers reference number 6) Description of goods 7) Terms of sale 8) Identification marks of the package 9) Total number of packages

Significance:
1) It is prima facie evidence of the

contract of sale and purchase of goods

2) It is useful for accounting purposes 3) It is required for claiming incentives 4) It is required in collecting/negotiation

of documents through the bank.

Consular Invoice
Some of the importing countries insist that the invoice is to be signed by the importing countrys consular located in exporters country. It is called as the CONSULAR INVOICE.

Purpose : To secure authentication of information contained in the invoice.

Importance To
Exporter
Enables prompt clearance Assurance that there will be no import restrictions

Importer
Speedy delivery of goods Avoid unnecessary hardship

Customs
Exporting can easily clear goods Importing need not check packages.

Legalized Invoice
Required by certain Latin American countries like Mexico Similar to consular invoice. Requires certification from consulate or authorized mission, stationed in the exporters country

Customs Invoice
When the commercial invoice is prepared on the format prescribed by the customs authority of the importing country, it is called Customs Invoice

It is requirement of USA, Canada and Australia.

Packing Note and Packing List

Packing Note: Particulars of contents of an individual pack Packing List : Consolidated statement of the contents of the total number of the cases or packs.

Packing note is kept in each concerned case.

Ten copies are prepared Details of the quantity in Packing List should conform with the quantity as stated in Bill of Lading

Details:
1) Date of packing 2) Number of packing note

3) Number of case to which it relates to

4) Contents of case in terms of quantity and weight 5) Marking numbers 6) Name of exporter 7) Name of importer

8) Name of vessel
9) Importers order number

Certificate of Origin
It specifies the name of country where the goods are produced. It can be obtained from Chamber of Commerce, Export Promotion Council and various trade associations authorized by Government of India.

Significance:
1) Facilitates the importer to adhere to rules

and regulations of his country

2) To obtain concessional tariff. 3) To ensure the goods are not from banned

countries
4) To ensure that the goods imported are not

reshipped again

Documents Related to Shipment

Shipping Bill

Mates Receipt

Cart Ticket

Certificate of measurement

Bill of Lading

Airway Bill

Bill of Entry

Shipping Bill
It is the main document for achieving customs permission

Manual Processing: Exporter required to file appropriate type of shipping bill to seek order for customs clearance.
Computerized Processing: Exporter does prepare shipping bill; computer generated not

The customs authority endorses duplicate copy of shipping bill wit Let Export Order and Let Ship Order Endorsed shipping bill facilitates exporter to claim incentives such as excise duty refund and duty

Shipping Bill
Particulars:
Nature of goods exported Name of Vessel, master or agents Flag Country of destination, destination port Exporters address Importers address Details of packages such as numbers and marks Quantity details of each case, total number of cases and aggregate weight F.O.B. prices and real value as defined in Sea Customs Act Whether the merchandise is Indian or foreign origin which is re-exported.

Shipping Bill
It is prepared in five copies
Customs Copy Drawback Copy Export Promotion Copy Port Trust Copy Exporters Copy

Types of Shipping Bills

Free Shipping Bill Dutiable Shipping Bill Yellow Paper Drawback Shipping Bill Green Paper/Yellow(Bank) Shipping Bill for shipping Ex-bond Yellow Paper Coastal Shipping Bill

Mates Receipt
Issued by mate (assistant to the captain of ship) Acknowledgement that good have been received on board the ship Types :
Clean Mates Receipt Qualified Mates Receipt

Bill of Lading is prepared based on Mates Receipt

Mates Receipt
Particulars:
Name of Vessel Date of Shipment Berth Marks Numbers Description and condition of goods at the time they are shipped Name and address of the shipper Name and address of the importer Other required details

Cart Ticket
It is prepared by the exporter The driver of vehicle carries cart ticket Entry into port is based on verification of cart ticket with the contents of vehicle by Port authorities Particulars
Vehicle number Description of goods Quantity Name of shipper Shipping bill number Port of destination

Certificate of Measurement
Basis of charging freight
Weight Measurement

When Measurement basis shipping company insists on certificate of measurement issued by chambers of commerce or other approved organizations

Bill Of Lading
Document issued by shipping company or his agenct Acknowledges receipt of cargo on board An undertaking to deliver the good in the same order and condition as received to the consignee or his agent Not standardized(Varies across shipping companies) Signed set of 2 originals are produced(any of which can be used to transfer title of goods) Non negotiable(Unsigned) copies are also issued for record-keeping B/L should be clean

Bill of Lading
Types:
Received for shipment B/L On Board shipped B/L Clean B/L Claused or Dirty B/L Transshipment or through B/L Stale B/L To Order B/L Charter party B/L Freight paid B/L Freight collect B/L

Bill Of Lading
Contents
Name and address of the shipper Name and address of the vessel Name of port of loading Date of loading of goods Name of port of discharge and place of delivery Quantity, quality, marks and other description Number of packages Freight paid or payable Number of originals issued Name of the shipping company Voyage number and date Signature of the issuing authority

Bill Of Lading
Importance
Exporter
Acknowledgement from shipping company Helps him send shipping advice to importer He can hold shipping company liable in case of damages Claim of incentives

Importer
Document of title to the goods Payment of freight amount

Shipping Company
Collection of freight amount Protection against wrongful claims

Airway Bill
Also called air consignment note Receipt issued by airlines for carriage of goods Not treated as document of title to goods Acts as a customs declaration form

Acts as a freight bill

Bill Of Entry
Importer prepares bill of entry Prime purpose of paying customs duty Prepared in triplicate Classification of goods:
Free Goods Goods for home consumption Bonded Goods

Bill Of Entry
Name and Address of Importer Name and Address of Exporter Import license number Name of port where goods are to be cleared

Description of goods
Value of goods Rate and value of import duty payable

Documents Related to Payment

Letter of Credit
Bill Of Exchange

Letter of Credit
Any arrangement whereby a bank acting at the request and in accordance with the instructions of a customer (the importer) undertakes to make a payment to or to the order of a third party (the exporter) against stipulated documents and compliance with stipulated terms and conditions

Parties to Letter of Credit

Importer (Applicant) Issuing Bank Advising Bank Confirming Bank Negotiating Bank Paying Bank Beneficiary (Exporter)

Letter of Credit
Types:
Documentary Revocable and Irrevocable With Recourse or without recourse Confirmed and Unconfirmed Transferable and Non-Transferable Fixed and Revolving Freely negotiable and Restricted Red clause and Green Clause Back to Back Assignable and Non assignable Stand By

Bill Of Exchange
According to negotiable instruments act, 1881, Bill of Exchange is an instrument in writing containing an unconditional undertaking, signed by the maker, directing a certain person to pay a certain sum of money only to or to the order of, a certain person or to the bearer of the instrument

Bill Of Exchange
Types
Sight BOE Usance BOE Clean BOE Documentary BOE

Documents Related to
Inspection

Certificate of Inspection

Certificate of Inspection
Issued by Export Inspection Agency Certifies that the consignment has been inspected under Export(Quality Control and Inspection) Act, 1963 Certifies that the quality control and inspection requirements are complied with

Documents Related to Excisable goods

GP Forms

Form C

Forms AR4/AR4A

GP Forms
GP stands for gate pass It is issued for the removal of excisable goods from the factory/warehouse GP1 form Removal of excisable goods on payment of duty GP2 form Removal of excisable goods without payment of duty

Form C
Used for applying for rebate of duty on excisable goods (other than vegetable, non essential oils and tea) exported by sea

It is to be submitted in triplicate to the collector of central excise

Forms AR4/AR4A
These forms are for removal of excisable goods for export by sea/post

ARE-1 forms are now used

Documents Related to Foreign Exchange Regulatio ns

GR Form VP/COD Form

PP Form SOFTEX Form

GR Form
An exchange control document required by RBI Required to be filled in duplicate, for all exports in physical form other than by post An exporter has to realize the export proceeds within a period of 180 days from the date of shipment, in India. To ensure control on realization, RBI introduced this procedure

PP Form
It is required to be filled in for all export transactions for all countries to be made by post parcel Except when made on value payable or cash on delivery basis

Filled in duplicate

VP/COD Form
It is required to be filled for all export transactions to all countries by post where the export proceeds are realized on
Value payable Cash on delivery basis

SOFTEX Form
For export of computer software in non-physical form

To be prepared in triplicate

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