An essential export document list forms the bedrock of any international trade conducted business. Official export documents provide authentic records in liquid transport while keeping up the right legal, financial, and customs requirements while shipping across borders. They check shipments for legitimacy, determine tax and duty collections, and also guarantee safe remittance.Without the proper documentation, businesses will be affected by shipment delays, penalties, or issues with the law. This article provides a comprehensive list of all the export documents, showing why each is important during the export process.
Export Documents List
Exporting goods involves several documents to comply with the government’s laws, smooth customs clearance, and security financial transactions. Listed below are detailed export documents that every exporter should prepare before shipping goods across borders.
Proforma Invoice
The first export document used is a proforma invoice. It is one of the preliminary bills the exporter sends to the buyer before he ships off the goods. It may include product details, price, terms of sale, and payment conditions that convey the entire cost and other terms to the buyer before making a final order.
This is not the final bill; it is a quotation that cites all the agreement terms to ensure that the buyer and seller mutually agree before shipping. The quotation includes the name and address of the parties involved, describing the goods, payment terms, and expected shipping and delivery dates.
Commercial Invoice
A commercial invoice is the last bill an exporter sends to an importer once an order has been confirmed. This is a legal document and also aids in clearing customs as well as making payments. Some information includes the invoice number, details about the exporter and importer, a description of the product, the HS code, andthe total value.
Customs authorities rely on this invoice to pay import duties and taxes. The details it would carry for the mode of transport, the loading and discharging ports, and payment terms sought also mean it will not miss what is required by banks and other trade authority heads in charge.
Packing List
A Packing List is an inventory of the goods carried. It describes how the products are packed for transport and is used to ascertain the shipment by customs and transport authorities and for handling. This includes packaging type, total weight, dimensions, and number of packages.
The shipping firm and customs authorities use the list to authenticate the shipment’s contents, including specific handling instructions to ensure safe transportation.
Bill of Lading (B/L) or Airway Bill (AWB)
A bill of lading is an important document issued by a shipping company when goods are loaded onto the ship. It acts as a receipt of goods, a contract between the exporter and the carrier, and an essential document of title by which the buyer can claim the shipment.
In the case of air shipments, an Airway Bill (AWB) can be considered a replacement for the Bill of Lading. The two types of B/Ls are: A Straight B/L is non-negotiable and is used where the payment has been made in advance, while an Order B/L is negotiable and most commonly used when there is a Letter of Credit.
Certificate of Origin (COO)
A Certificate of Origin asserts that goods originated from a given country. The customs departments use these to consider tariff concessions under particular trade agreements. Most countries require a certificate of origin for release of clearance.
COO can be in two forms: Preferential COO, in which the export goods qualify to pay less or no import charges, and a Non-Preferential COO, used when there are no special trading agreements. The Chamber of Commerce and government authorities give a document to an exporter.
Shipping Bill or Bill of Export
A Shipping Bill is a document required for the customs clearance process in India. Exporters must file this bill with the customs for permission to ship goods abroad. It contains exporter and importer information, shipping method, port details, and the HS code of goods.
The Indian government requires the submission of this document, preferably through ICEGATE, which happens to be India’s online customs portal. This approach ensures smooth export transactions and regulatory compliance.
Import Export License Documents List
A business must acquire an Import Export Code from India’s Directorate General of Foreign Trade (DGFT) before exporting products. The Import Export Code is mandatory for customs clearance and international trade transactions.
The registration process for an IEC requires a PAN card, Aadhaar card or passport, business registration certificate, and bank details. The IEC is lifetime valid and aids businesses in expanding their global trade operations.
Letter of Credit (L/C)
A Letter of Credit is an assurance from a bank in the form of a document that will ensure the exporter gets paid. It ensures that the buyer makes the payment once some shipment conditions are met. International trade advantages this documents ease the risk of non-payment.
There are various types of L/Cs. A Revocable L/C can be amended without consent, whereas an Irrevocable L/C cannot be cancelled without mutual consent. A Confirmed L/C ensures payment even if the buyer defaults, providing additional security for exporters.
Insurance Certificate
An Insurance Certificate safeguards the exporter and importer from loss or damage in transit. It ensures financial security if goods are damaged or lost due to unforeseen events. Most importers require insurance to safeguard their shipments.
The standard varieties of export insurance include Marine for sea transport, Air Cargo covers the risks over air shipment, and Inland transit insurance, which covers the risks involving domestic transportation.
Inspection Certificate
Some countries require an Inspection Certificate to ascertain that the exported product has met the standards regarding quality and safety. Government agencies may issue them, as well as third-party inspection firms such as SGS and Bureau Veritas and export councils.
This document is usually required by food, chemical, and machinery industries. It ensures that the exporter complies with international quality regulations, avoiding shipment delays or rejections at customs.
Export Declaration Form (EDF)
The RBI requires an Export Declaration Form, popularly known as an EDF. It confirms that the exporter will bring earnings in foreign exchange into India. It is a document that is very much required for considerations that fall under both regulations and banking.
The EDF will ensure compliance with foreign exchange regulations. Exporters should submit it to their bank to ensure a smooth international transaction and financial reporting.
Bank Realization Certificate (BRC)
A bank realization certificate is a proof that the exporter has received payment in foreign currency. Thus, a claim needs to be made under different government schemes regarding export incentives.
The issuance of a certificate by a bank after validating the export payment is thus essential. Export transactions are financial proof as they qualify businessmen for duty drawback and tax-free exemptions.
Export Documents List FAQs
1. What is an export documents list?
An export documents list is a comprehensive list of all the documents required for customs clearance, shipping, and payments when exporting goods overseas.
2. Why is Bill of Lading important in exports?
A Bill of Lading is a document that acts as proof of shipment, a contract between exporter and carrier, and a document of title to claim the goods.
3. What are the list of requirements for import and export license documents?
An IEC number in India requires a business PAN Card, Aadhaar card, registration, and bank information to get issued.
4. What is the difference between commercial and proforma invoices?
A commercial invoice differs from a proforma invoice in terms that proforma is a pre-shipment quotation while a commercial invoice is the actual bill issued post-shipment.
5. Where can exporters get a Certificate of Origin?
Exporters can get a Certificate of Origin from the Chamber of Commerce or any other government-authorized office.
