A

Summer Training Report

On
"A STUDY ON FOREIGN TRADE "
BANARAS BEADS LIMITED

SESSION – (2018-2020)
In partial fulfillment of requirement for Degree of
MASTER OF BUSINESS ADMINISTRATION

Under The Guidance Of:- Submitted By

Anish Mishra Abhishek Dubey

Assistant Professor Roll No.- 1842870002

Kashi Institute of Technology MBA 3rd Semester
Varanasi

KASHI INSTITUTE OF TECHNOLOGY

( Affiliated to AKTU, Lucknow)
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 KASHI INSTITUTE OF TECHNOLOGY
Manage by: Jain Education Society
23 km Milestone, Varanasi- Allahabad Road, Mirzamurad, Varanasi (U. P.)
E-mail: kashi.inst.tech@gmail.com Website: www.kitvrns.com
Ph.- 0542- 2637777, 78 Fax- 0542-2637681

Date………………………

CERTIFICATE

This is to certify that Ms./Mr. ………………..…………………….of Master of

Business administration (MBA) session 2018-2019 has completed Summer
Training On the Topic
………………..……………………………………………………………………
………………………………………………From
………………………………………………
………………………………………………………………………………………
….. as Partial fulfillment for award of Master of Business Administration The
Summer Training Report submitted by him/her is a genuine work done by him/her
and the same is being submitted for evaluation.

Place: Varanasi (Name & Signature of internal Guide)

Date :……………

(Vishal Rai)

Head of Department

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3
 PREFACE

The Summer Training project work has an objective to make management student
familiar with real life business situation and give an opportunity to the student to
understand the theoretical concept of International Markeing in practical way.

I am extremely happy to present the report before my respected teacher. The

project report entitled me as “A STUDY ON FORGIEN TRADE , VARANASI
(BANARAS BEADS LIMITED)” .

The project work was a great challenge for me. It gave me an opportunity to collect
and analyze the entire situation .

ABHISHEK DUBEY

MBA 3rd Semester

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 ACKNOWLEDGEMENT

Expressing gratitude in words, is one thing which never can be done

adequately: "As such writing this, I find myself utterly at sea & we are afraid,
however we may try, we may fail to express out abounding gratitude in volumes or
tons, let along this few lines."

I am greatly indebted and express my profound gratitude towards honorable

guide Anish Mishra (Assistant Professor ), who suggested the problem and has
been closed and valued guide throughout the work at several occasion his
magnanimous, affectionate attitude helped me in rectifying my mistakes and
proved to be sources of unending inspiration for which I am extremely grateful to
them.

Last but not the least: I would like to thank my parents, brothe, my friends
and all other members of sheat and all those unknown whose blessings made
possible to complete my project.

Abhishek Dubey

MBA 3rd Sem.

Roll No.-1842870002

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 DECLARATION

I, Abhishek Dubey Student of MBA (3rd Sem.) at Kashi Institute of

Technology Varanasi hereby declare that the Summer Trainig Report
entitled "A STUDY ON FOREIGN TRADE DOCUMENTATION" It is the
result of my own effort and is raised on information collected and
guidance given by mentor and faculty member.

The summer training report is corrected to the best of my knowledge this

report fo been far has not been published anywhere else.

Abhishek Dubey

MBA 3rd Sem.

Roll No.-1842870002

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 EXECUTIVE SUMMARY

I have got this opportunity to write the project on summer training learning on the
topic “A STUDY ON FORGIEN TRADE, VARANASI (BANARAS BEADS
LIMITED)”.

Communication and knowledge about the customer satisfaction practical problem

and challenges are the most important aspects when it comes day–to–day life in
business working area.
During the period of studied and learned in details about customer satisfaction in
Marketing Department. This study covers the various activity performed in work
section of Marketing department i.e. to fully satisfy the customer.

International Marketing is an important aspect of the overall process to satisfy the

customer This is particularly true for the Banaras Beads Ltd, which helps in
recruitment and selection process.

I wish my work will help the reader to know about the future growth opportunity
and expansion plans of the study.

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 TABLE OF CONTENTS

1. Company’s Certificate
2. Company Certificate
3. Preface
4. Declaration
5. Executive Summary

CHAPTER - 1

 Company Information
 Study On Foreign Trade About us History
 Organizational Objective
 Award and distinctions
 Departement in Banaras Beads LTD
 Product Profile
 Types of Beads Used in Beading
 Future Innovations
 BBL Policy
 Opportunities and Threats
CHAPTER - 2

 Definition Of Export
 Types of the certificate of origin
 Single country declaration
 Bank certificate of export and realisation
 Mode of payment
 Mode of shipment
 Types of invoice

CHAPTER - 3

 Organisation Related To Export

CONCLUSION
REFERENCES AND BIBLIOGRAPHY
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 A STUDY ON FOREIGN TRADE

(BANARAS BEADS PVT. LTD)

ABOUT US

Banaras Beads Limited is an Export house recognized by Government of India, established in the
year 1940. We have approximately 500 employees & it is a Public Limited company having
more than 6000 shareholders. We are listed in leading stock exchange of India BSE & NSE.

Our Glass Beads are Handmade (Lamp Work) as well Machine made (Pressed Beads and Tube
cutting Machine). We have latest machines used for producing beads from India, Japan, China,
Isarel, Chez republic & Germany In last many decades, the company has grown every year &
today is one of the biggest in the trade. The young work force with its creative input & focused
work is a great asset and is a prime reason for consistent growth of company.

Our Company serves customers in four Business models-

1. Supplying our Products to wholesalers & Retailers

2. Supplying to companies dealing in Craft business who eventually sells to their own stores or
to Craft stores / Retail stores
3. Supplying directly to Craft stores / Large retail chain stores
4. Online Business Companies

We also do customized packaging of our products for our customers including labeling,
Barcodes etc as per the requirement of our customers. We understand the requirements of
compliance & we have fully audited compliance from SEDEX SMETA and we meet all
standards required for Social, Ethical & Security Audit. Any member company can view it on
www.sedex.com

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Our Company is authorized vendor for leading stores in USA like Wal-Mart, Michaels, A.C
Moore, Jo-Ann, Hobby Lobby Etc. Our Presence is around the Globe and we are selling our
products to more than 80 countries.

HISTORY

Banaras Beads Limited was founded in the year 1940 by Late Mr. Kanhaiya Lal Gupta, the
father of Mr. Ashok Kumar Gupta. Ashok Kumar Gupta currently acts as Chairman and
Managing Director, handling special aspects of the business including property and building
expansion, construction, government relations, and other high level projects.
Mr. Ashok Gupta's son Mr. Siddharth Gupta, schooled abroad in London where he earned a
Bachelor‟s in Glass Technology, has now taken over as Executive Director, assuming the
leadership of all divisions including sales, creative marketing, product development, customer
relations, and other company teams that focus primarily on maintaining mutually beneficial
partnerships with retail accounts and supplier partners.

Banaras Beads has grown over the last 70 years to become by far THE largest and most
productive jewelry and bead company in India– they export 75% of all the beads exported from
the country. They can now be counted among a small group of leading international
manufacturers that can meet the production capacity needs of large multi store chains such as
Michaels and Wal-Mart, with a wide variety of beautiful, high quality jewelry products at
extremely competitive prices.

The company supplies fashionable jewelry making supplies and finished jewelry to over 70
countries around the world, with the majority of focus on the U.S. and Europe.

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 ORGANIZATIONAL OBJECTIVES

The main objective of the company as set out in the memorandum of association is as follows-

 To promote ,manufacture, assemble, import, process ,develop, design ,but sale, exchange
export or otherwise deal in all kind of handicraft inclusive of beads made of glass ,wood
,brass lactic ivory and black grass ,glass rod. Glass wares or such other kind as may be
deemed necessary or expedient the company to undertake and develop.
 To manufacture, design, develop, process, engineer, sell, exchange, alter, improve,
manipulate, prepare, import or otherwise deal in any or all kinds of silicate sodium and
chemical product or their component.
 To establish, carry on, extend, alter, or develop the business of manufacturing, buying,
selling, distributing, importing, exporting, exchanging, altering, converting or otherwise
deal in material goods, plastic works, brass work, silk clothes or caring on forwarding
and ready business for further order.

Quality means fitness for the intended purpose in all aspect of the company activities .it is the
company need and designer specifications. The company with strive to meet the need of its
customer through a continuous process of quality improvement.

The quality system is design to ensure the maintenance of the product quality standard
through evaluation, standards, through the evaluation, inspection and verifying process at
the stage of manufacturing.
“Compliance with the provision and objective of the manual are mandatory for all
employees of the company. All employees are responsible for quality improvement
.education and training are vital to other quality improvement process.”
Banaras beads limited core competence; concentration and center of attraction are only
customer. They believe in entire satisfaction of the customer rather than pushing their
product, sale or idea. Company approach is customer centric and is flexible enough to
work according to the customer need.
The company looks forward to cherish a long lasting relationship with the customer their
aim is –

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1. Customer delight
2. Customer desire
3. Customer service

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 CHAPTER-I
COMPANY INFORMATION:

Head Office: A-1, Industrial Estate, Varanasi - 221106

Showroom: A-1, Industrial Estate, Varanasi - 221106
Year Established: 1940
Nature of Business: Manufacturer & Exporter of Glass beads Imitation
Jewellary, Rosaries & Tasbee, All Types of Handicrafts, Carpets &
Druggets etc.
Name of Holding Co.: Banaras Beads Limited
Head Office: 18,000 sq. ft.
Ware House: 18,000 sq. ft.
Employment: 400 ~ 500
Email : info@banarasbead.com

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Website : www.banarasbead.com
Registrars
Mas Services Ltd. T-34, 2nd Floor,
Oklha Industrial Area,
Phase - II New Delhi - 110020
Delhi
Tel: 011-26387281, 26387282, 26387283
Fax-011-26387384
Email:info@masserv.com
Website: http://www.masserv.com

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 HISTORY OF BANARAS BEADS
LIMITED

It was promoted by Ajit Kumar Gupta & Ray Kumar Gupta. In 1994,
The company undertook to expand cum modernize its existing facilities
for manufacture of glass beads, imitation jewellery,handicrafts and

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woolen products. It was proposed to automate the existing designs
department with state of the art computer aided design systems including
multi color plotters and scanners related software.
It was proposed to install an on-line computer system and state-of-the-
art communication network for effectively monitoring of the company's
various units and products. The company undertook to set up a project
at NOIDA in UP for gold and jewellery.
On 1995, 61,15,440 No. of equity shares issued to promoters. Another
5,31,000 No. of equity shares issued. 22,16,000 No. of equity shares of
Rs 10 each were issued at a premium of Rs 75 per Share to the public
through a prospectus in February. Additional7,900 shares were allotted.
In 2000, Mr. Tanmani Deva as appointed as Director of the company.
In2003, The Hon'ble Company Law Board issued Orderand appointed
M/s R.S.Ahuja & Co. Chartered Accountants, New Delhi as Valuer for
division of the company.

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 ABOUT BANARAS BEADS

Banaras Beads Limited is a publicly owned company involved in

manufacturing & marketing of glass beads. In last ten years, the
company has grown every year & today is one of the biggest in the
trade. The young work force with its creative input & focused work is a
great asset and is a prime reason for consistent growth of company. By
nature, Banaras Beads Limited is born leader.

The company's head office is located at Varanasi, India headed by Mr.

Ashok Kumar Gupta, Chairman & Managing Director. The promoter of
company well versed in business intricacies of beads industry.

Actively engaged right from order procurement to quality of production

and dispatch the company has in bred system and competence to handle
challenging assignments. The company is located in holy environs of
Varanasi city, India. The company is well-equipped with state of the art
automatic machines. Banaras beads Limited had recently installed
quality software, which links all their departments & helps in working
on critical dates and follow ups.The company's manufacturing process &

17
its qualitycontrol measures are in full compliance of society norms &
standards.

We are specialize in manufacturing fashion Jewellery, metal &

bonependants, all types of Jeweler and its related accessories, leather &
cotton cords, metal chains etc.

Why BBL:
PRODUCT:

Banaras Beads carries large variety and specialized product range. We

have the best collection of beads, where we carry more than 3000
shapes, 100 colours and 2000 different varieties and designs made by
different methods and artifacts which make up our entire product range.

QUALITY:

Our main emphasis is on the quality of the product rather than quantity
product which makes us different from our competitors.
PROFESSIONAL APPROACH as our company deals in handicraft
items which is mainly an unorganised sector but our company's
professional approach towards its customers as well as production &
quality inspection makes our strength in our field.

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RE-ENGINEERING PRODUCT:

We believe in changing, in creating, in innovating and dynamism our

product which makes our company's strength to reinstate us with the
fashion industry and customer's demand and to fulfill the desire up to
their entire satisfaction.

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 DIRECTORS

SHRI ASHOK KUMAR GUPTA

(Chairman & Managing Director)

SHRI SIDDHARTH GUPTA

(CEO & Managing Director)

SHALINI CHANDRA
(Executive Director)

SHRI ASHOK KUMAR KAPOOR

(Independent and Non Executive Director)

SHRI PRAVEEN SINGH

(Independent and Non Executive Director)

SHRI TANMAY DEVA

(Independent and Non Executive Director)

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KEY MANAGERIAL PERSON

Mr. R.K. Singh

(Company Secretary)
Mr.Vinay Ku. Piyush
(Chief Financial Officer)
Mr. Shadab Ahmad
(Graphics & Web Designer)
Mr. Raj Kumar Srivastava
(Dy. Manager Marketing)
Mr. H.S. Saha
Mr. Rajesh Chaubey
(Manager Export)
Mr. Umesh Mishra
(E.D.P. Manager)
Mr. Ateek Agrawal
(Dy. Manager Commercial)
Mr. Adarsh Mullick
(Dy. Manager)

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 AWARDS

Since its inception, the Banaras Beads Limited has won many
prestigious awards and distinctions for its high achievements in the field
of exports. It has been recognized by the government of India as a
“trading house of the country” in the true sense. Some of the main
awards & distinctions received by the BBL are-

 President of India award for excellence in exports in July 1977.

 Chemical & Allied for export promotion council award-19

occasions.

 CAPEXIL top export award in SSI section – 2 occasions.

 U.P. government‟s awards for excellence in exports -5 occasions.

 IMM-Data Marketing Man Award-1980.

 Federation of Small Scale Industries Award.

 Indian Silk Export Promotion Council Award.

 Top Export Award Trophy 1993-1994 from CAPEXIL.

 Export certificate from handicrafts export promotion council.

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 SOCIAL ACTIVITIES

BBL is also discharging several responsibilities, the two important social

contributions are-
Through Ram Gulam Kanhaiya Lal Charitable Trust, the group
is contributing in a small way to the welfare of the community. The trust
is engaged in a number of social activities for the upliftment of the
needy. A vocational training center for women is being run by the trust
at Arya Mahila College at Varanasi, for imparting technical and
vocational training.

 The trust is also running a hospital on Naturopathy in the holy

town of Rishikesh on the banks of river Ganges. This hospital has
proved to be a boon for the people of Rishikesh and those of
adjourning areas. Many pilgrims enjoy benefits from this hospital.

From the above factual information, it is clear that BBL is the pride of
Varanasi. In fact, it the only industry in the private section in Varanasi
which has earned so much distinction on account of great
entrepreneurial spirit demonstrated by Late Kanhaiya Lal Gupta and his
son Shri Ashok Kumar Gupta who is presently the main force behind all
development activity.
Banaras Beads Limited had recently installed quality software, which
links all their departments & helps in working on critical dates and
follow ups. The company's manufacturing process & its quality control
measures are in full compliance of society.

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 Different product of BBL

2.1 Product Profile

2.2 Types of Beads Used in Beading

2.3 Future Innovations

2.4 BBL Policy

2.5 Opportunities and Threats

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PRODUCT PROFILE

25
26
TYPES OF BEADS

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 FUTURE INNOVATIONS

Since China has picked up much share in the market due to their
unbelievable low pricing patterns. Thus not only competition has
increased but also the Company is forced to reduce the price under
pressure. The fluctuation in rate of foreign currency will also affect our
business and profit. The management is aware about this situation and
has taken appropriate steps to meet the threats and making extensive
efforts on quality control, cost reducing and widen its marketing
network.

Soon BBL will be conducting jewelry making competitions amongst

school children in the Delhi NCR region. They will all be given a bead
kit and the ones that come up with the most creative designs will be
given prizes.” They will also be using their enormous collection of
colored beads to teach nursery children about colors.

Their future plans also include using beads to make colorful corporate
gifts such as paper weights.

The latest styles and colors were not the only focus for the creation of
this new category But BBL believes in doing small things in order to
stand apart.

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 BBL POLICY

"Quality means fitness for the intended purpose in all aspects of the
company's activities. It is the company's policy to manufacture and
export goods which comply with the customer's needs and the designer's
specifications. The company will strive to meet the needs of its
customers through a continuous process of quality improvement."

"The quality system is designed to ensure the maintenance of the

product quality standards through the evaluation, inspection and
verification of processes at all stages of manufacturing."

Some of the process which are called as Luster Polishing, Drum

Polishing, Cleaning of Beads mechanically, making of Press Beads,
Chatom‟s, Faceted Beads, Table Cut Beads etc. has been innovated by
BBL.

"Compliance with the provisions and objectives of the manual are

mandatory for all employee of the company. All employees are
responsible for quality improvement. Education and training are vital to
the quality improvement process."

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 OPPORTUNITIES AND THREATS

The company is an export house recognized by Government of India,

Ministry of Commerce & Industries and main business of handicrafts
like Glass Beads, Necklaces, Imitation Jewellary in indigenous and
export market. The company has built it‟s credibility and reputationin
international market by providing better quality‟s Glass beads and
fashion jewelry on competitive price and within committed period.

In Indigenous market company is doing business under the Trade name

and style De-Lemon unit of Banaras Beads Ltd. Through retail counters,
shop, stores, Franchise and under arrangement/agreement with various
parties. But expected results not received from indigenous market. The
company forced to close various counters/stores due to ongoing losses.

There are opportunities for doing more business in this line. But the
china has picked up much share in the market due to their unbelievable
low pricing patterns. Thus not only competition has increased but also
the company is forced to reduce the price under pressure and to offers to
sell its products at unremunerated prices. The fluctuation in rate of
foreign currency will also affect our business and profit.

The management has taken appropriate steps to meet the threats and
making extensive efforts on control, cost reducing and widen its
marketing network.

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 AWARDS AND DISTINCTIONS

Since its inception the banaras beads ltd. Has wan many prestigious awards and distinction in the
field of export .it has been recognize by the government of the India as the “trade house of the
country” in the true sense.

Some of the awards and distinctions received but the company is as follows:

 President of India award for excellence in export in July 1997.

 Chemical and allied for export promoting council award at 18 occasions
 CAEXIL top export award in SSI sector 30 occasion
 IMM data marketing man award, 1980.
 Federation of small scale industry awards 1978-79
 India silk export promotion council award
 Top export award1993-94 from CAPEXIL
 Export certificate from handicraft export promotion council.
 National award from ministry of commerce , government of India 1975-76
 Meritorious performance certificate from the India, silk export promotion council
1987-88

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 DEPARTMENTS IN BANARAS BEADS LIMITED

COMMERCIAL DEPARTMENT

PRODUCTION DEPARTMENT DEPARTMENT FINANCE DEPARTMENT

MAREKTING DEPARTMENT

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 PRODUCT PROFILE

BEADS

A bead is a small, decorative object that is formed in a variety of shapes and sizes of a material
such as stone, bone, and shell, glass, plastic, wood or pearl and with a small hole for threading or
stringing. Beads range in size from under 1 millimeter (0.039 in) to over 1 centimeter (0.39 in) in
diameter. A pair of beads made from nassarius sea snail shells, approximately 100,000 years old,
is thought to be the earliest known examples of jewelry. Beadwork is the art or craft of making
things with beads. Beads can be woven together with specialized thread, strung onto thread or
soft, flexible wire, or adhered to a surface (e.g. fabric, clay).

Beads are still made from many naturally occurring materials, both organic (i.e., of animal
or plant based origin) and inorganic (purely mineral origin). However, some of these materials
now routinely undergo some extra processing beyond mere shaping and drilling such as color
enhancement via dyes or irradiation.

The natural organics include bone, coral, horn, ivory, seeds (such as Tagus nuts), animal shell,
and wood. For most of human history pearls were the ultimate precious beads of natural origin
because of their rarity; the modern pearl-culturing process has made them far more
common. Amber and jet are also of natural organic origin although both are the result of
partial fossilization.

The natural inorganic include various types of stones, ranging from gemstones to
common minerals, and metals. Of the latter, only a few precious metals occur in pure forms, but
other purified base metals may as well be placed in this category along with certain naturally
occurring alloys such as electrum. There are also paper beads.

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TYPES OF BEADS

HAND PAINTED BEADS

34
WOODEN BEAD

35
36
37
CHAPTER- 2

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 DEFINITION OF EXPORT

An export of good occurs when there is a change of ownership from a resident to a non-
resident; this does not necessarily imply that the good in question physically crosses the
frontier. However in specific cases national accounts impute change of ownership even
though in legal terms no change of ownership take place (e.g. cross border financial
leasing, cross border deliveries between affiliates of the same enterprise , goods crossing
the border for significant processing to order or repair). Also smuggled goods must also
be included in the export measurement.

Why export is important?

Export presents many advantages for firm as follows:

1. Increase their sale and profit,

2. Reduce the risk of market fluctuation by depending on many markets,
3. Diminishes units cost by adopting mass production strategy
4. Support countries balance of trade.
5. Enhance firm and countries competitive advantage by gaining new technologies .
6. Enable firm to benchmark with their competitors and know their strategies and what
they have donor to increase their market share globally.

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Export procedure

Step 1 – obtaining number –

In case of first time export – import, they need apply to the directorate general of foreign trade
(DGFT) REGION OFFICE for getting import export code (IEC) NUMBER. One must have –
1. a pan card number(IEC code on one pan card no.)
2. One bank account in bank affiliated to RBI
The exporter has to register with concerned export promotion council in order to obtain benefit
given by the government.

Step 2 - receipt of enquiry and sending quotation-

The starting point for any export transaction is an enquiry. Import sent enquiry to the exporter to
know about the good as his demand. After knowing the demanding of customer, an exporter
prepares a quotation in which he specifies the rate unit and payment terms of their company and
sent it to the importer.

Step 3 – Performa generation –

After sending the quotation, if importer likes it; he sends the acceptance to the export .after that
exporters prepare a pro- forma invoice and sent it to the final confirmation so that production can
be carried down.

Step 4 – preparation of sales contract-

After receiving the confirmation from the importer, exporter prepares a sales contract and sent it
to the production department for the production of goods as per specification of the importer.

Step 5 – production of goods –

Production process involves three steps-

 Checking the stock which is already available (worksheet)
 Production of goods which are not available (mfg. order)
 Purchase of goods which are not available nor producer( purchase order)

40
 Step 6 – pre-shipment inspection –
After production process is completed an agent is sent by the importer to check and
inspect the goods produced by the exporter are as per his specification and demand or
not. Agent inspects the goods and report to the exporter.
Step 7 – packing and marking-
After the production process is over good are sent to packing department for packaging
process a manual packing list is prepared and sent to commercial department for farther
processing .
Step8 – preparation of commercial invoice-
Manual packing list is received by the commercial department and preparation of
documents are done by them –
 Commercial invoice
 Packing list

Step 9 – preparation of pre-shipment documents-

After goods are produced and commercial documents are ready now goods are sent to the custom
house agent with the pre shipment documents which are –

 Commercial invoice
 Packing list
 Statutory declaration form
 Payment copy
 Sales copy(1)
 Drawback declaration(1)
 Shipping instructions (1)
 Export value declaration(1)

After sending these documents to the CHA ,CHA clear the good from customs with the
verification of the documents. Next step to load the goods on the ship or airplane and sent the
documents to the exporter for the farther processing –

 Commercial invoice (1)

 Packing list (1)

41
  Bills of lading / airway bill(6)
 Shipping bill(1)
 Freight certificate(1)
 Drawback form(1)
 Statutory bill

Step 10 –preparation of post – shipment document –

After exporter receive the document from the custom through CHA, now exporter sent some post
–shipment documents to –

 Importer
 Bank
 Account department of the company

Exporter sent document to importer are-

 commercial invoice (2)

 packing list (1)
 shipping advice(1)
 WLRO(1)
 Single custom invoice(1)
 Bills of landing (3)
 Insurance certificate(1)
 Freight certificate(1)

Some document are sent to bank are-

 Commercial invoice (1)

 Packing list (1)
 Shipping bill(1)
 Bill of lading / airway bill(2)
 Payment copy(1)
 Remittance transaction advice (1)
 Cover letter (2)

42
 Document to the account department –

 Commercial invoice
 Airway bill/lading bill
 Cover letter

Step 11 –bank realization copy from bank –

After sending the document to the importer, bank and accounts department, and bank sent a BRC
to the exporter country which specifies the whole of the payment amount is received from the
importer. Receiving BRC is the last step of the export procedure.

EXPORT DOCUMENTS

1. SALES CONTRACT
An agreement between the buyers and the seller stipulating every details of the
transaction. It is a legally binding document .it is therefore advisable to seek legal advice
before signing the contract.

Contents:
 Contract number
 Consignor`s number an address
 Consignee`s number and address
 Invoice number
 Delivery date
 Buyer order date
 By agent
 Port of discharge
 Port of delivery
 Mode of shipment
 Rates of item
 Medium of exchange

43
  Packing desire
 Insurance to be covered
 Freight charges
 Consignor`s and consignee`s banker
2. WORKING SHEET
Once order has been placed ,the next step is to check whether goods are available in the
stocks .
It helps to know which goods are to be produce, purchased from local supplier.
CONTENTS:
 GROUP
 ITEM
 Description
 Quantity
 Stock
 Purchase order
 Production quantity

3. MANUFACTURING ORDER

Once the order is been placed the next step is to finalize the detail as to how the product
are to be manufactured.

CONTENTS:
 Manufacturing order number
 Due date
 Order status
 Shipment date
 Shipment port
 Destination port
 Buyers order no.

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  Shipment mode(air/sea)

4. EXPORT ORDER MONITORING FORMAT

It is the review of the export order prepared by the exporter so as to keep a track record of
the status of the order at various stages such as when is finalization the sales contact,
confirmation for production, stop checking, good s given for processing goods dispatched
etc.- in different department like marketing , production , packaging, commercial, etc. so
as to ensure timely completion.

CONTENTS –
 ORDER NO.
 Due date delivery
 Dispatch (partial or full)
 Expected date of delivery
 Date of receiving the order in a department
 Date of clearance from a department
 No. of days taken by a department
 Remark(if any)

5. PURCHASE ORDER

It is a commercial document issues by the buyer to the supplier, indicating the type, quantity and
agreed prices for the product or services the supplier would provide to the buyer.senting a PO to
the supplier constitutes an offer to buy their product and service and acceptance of buyer from a
contract between both the parties.

CONTENTS-

 Name and address of the supplier

 Order no. and date
 Due date

45
 Shape/color of the date
 Item description
 Order quantity
 Unit
 Rate per kg.
 Remarks(if any)
 Terms and conditions of the purchase order

6. Commercial invoice
It is a formal demand note for payment issued by the export to the import for goods sold
under a sales contract. It should give detail of the goods sold, payment term and trade
terms. It is also used for the customers clearance of goods and something‟s for foreign
exchange purpose by the importer.
Commercial invoice is an important and basic export document .it is also known as a
„document of content” as it content`s all the information required for the preparation of
other documents. Its is essential that the invoice is prepared in the name of the buyers or
the consignee mentioned in the letter of credit. It is a prime facie evidence of the contract
of the sale or purchase and therefore, must be prepared strictly in accordance with the
contract of sales.
1. First and the only complete document for a shipment form among the set of
commercial documents.
2. Serves as a basis for preparation of all other documents
3. CI is needed at both pre-shipment and post shipment stage for-
 Obtaining export inspection certificate,
 Clearance from excise and custom
 Negotiating document with the bank

CONTENTS OF COMMERCIAL INVOICE –

 Name and address of the exporter
 Name and address of the consignee
 Name and the number of vessel or flight.
46
  Name of the port of loading.
 Name of the discharge and final destination
 Invoice number and date.
 Export`s reference number.
 Buyer‟s reference number and date
 Name of the country of the origin of goods
 Name of the country of final destination
 Terms of delivery and payment.
 Marks and container number.
 Number and packing description.
 Description of goods giving details of quantity, rate and total amount in terms of
internationally accepted price quotation.
 Signature of the exporter with date

Significant of commercial invoice

It is the base document use full in preparation of various other shipping documents. It is a formal
demand note for payment issued by the exporter to the importer for goods sold under a sell
contract. It should give details of the goods sold, payment terms and trade terms. It is also used
for custom clearance of goods and sometime for foreign exchange purpose by the importer.

7. PACKING LIST –

A list with details packing information of the goods shipped. Its is an extension of the
commercial invoice; as such it apparently like a commercial invoice. It is a form which
accompanies any shipment of goods provides a detailed itemized description of the goods in each
individual package, including the quantity of items, weight and measurement.

CONTENTS:

 Package number
 Item no. description of goods
 Quantity

47
  Weight
 Measurement
 Signature
 Marks and no.
 Exporter`s name and address
 Invoice no. and date
 Consignee`s name and address
 Buyer`s name and address(if other than the consignee )
 Country of origin of goods
 Country of final destination
 Pre-carriage by
 Place of receipt of pre-carriage
 Vessel /flight no.
 Port of discharge
 Final description
 Terms of delivery
 Description of goods
 Net weight and gross weight
 Dimension of cartoon package
 Documentary credit no. and date
 Quantity
 Rate per unit
 Total amount
 Declaration(if any)

8. SHIPMENT ADVICE

After the shipment of goods , the exporter intimates the importer about the shipment of goods
giving him details about the date of shipment, the name of vessel , the destination etc. he
should also sent one copy of non negotiable bills of lading to the importer.

48
9. STATUTORY DECLERATION FORM

According to foreign exchange management act 19, every exporter company has to fill the
SDF form (statutory deceleration form).

It is preferred by the exporter which is letter sent to the RBI. In this firm the exporter
declares of begin the seller/consigner of the merchandise. He /she also declare the value of
the merchandise.

The exporter has to declare that he`s a president of India and that he /she is not in the caution
list of the RBI. Later the form is sent to RBI:

10. MATE`S RECIEPT

A receipt to confirm the receipt of cargo on quay/warehouse pending shipment. The dock
receipt is used as documentation to prepare a bill of lading. it has no legal role regarding
processing financially settlement.

Mate`s receipt is a receipt issued but the commanding officer of the ship when cargo is
loaded on the ship. the mate`s receipts is a prima facie evidence that goods are loaded in the
vessel. The mate`s receipts is first handed over to the port trust authorities. After making
payment of all port dues, the exporter or his agent collects the mates receipts is first handed
over to the port trust authorities. After making payment of all port dues, the exporter are
hides agent collects the mates receipt from the port trust authorities‟ .The mates‟ receipt is
freely transferable.

Types of mate`s receipts

Clean mate`s receipts:-

The commending office of the ship issues a clean mate`s receipt, if he is satisfied that the
goods are packed properly and there is no defect in the cargo or package.

QUALIFIED MATES RECEIPT:-

The commanding officer of the ship issues qualified mates receipt, when the goods are not
packed properly and the shipping company does not take responsibility of damage. To the
goods during transit.

49
 CONTENTS OF MATE RECEIPT

 Name and logo of the shipping line.

 Name and address of the shipper.
 Name and the number of vessel.
 Name of port of loading.
 Name of the port of discharge and place of delivery.
 Marks and container number.
 Name of the port of discharge and place of delivery.
 Marks and container number.
 Total number of containers and packages.
 Description of goods in term of quantity.
 Container status and seal number.
 Gross weight in kg and volume in terms of cubic meters.
 Shipping bill number and date.
 Signature and initials of chief officer.

Significance of mates receipt

 It is an acknowledgement of goods received for export on board the ship.

 It is a transferable document. It must be handled over to the shipping company in
order to get the bill of lading.
 Bill of lading, which is the title of goods , is prepared on the basis of the mate receipt.
 It enables the exporter o clean to port trust to the port trust authorities.

OBTAINING MATE RECEIPT

SIGNIFICANCE OF MATE`S RECEIPT

The goods are then loaded on board the ship for which the mates or the captain of the ship issues
mate receipt to the port superintendent.

OBTAINING MATE RECEIPT

11. SHIPPING INSTRUCTIONS

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At the pre-shipment stage , when the document are to sent to the cha for customs , necessary
instruction is to be given with relevance to

 The export promotion scheme under which goods are to be exported.

 Name of the specific vessel on which goods are to be loaded.
 If goods are to be FCL or LCL. If freight amount are to be paid / collected.
 If shipment are covered under A.R.E.-1 procedure.
 Instruction for obtaining bill of lading etc.

12.INSURANCE CERTIFICATE

An insurance certificate is a representative of the insurance policy taken out by the buyer or the
seller ( depending upon the agreement ) for a shipment . blank insurance certificate is supplied
by the insurer pre-signed and bearing the open policy number of the exporter. For a sea shipment
, an airway bill serves as an insurance certificate. For a sea shipment , an insurer is issuded
known as marine insurance certificate . It covers the risk of any damage to the cargo while the
cargo is in the vessel.

CONTENT

Certificate no.

Shipment no.

Assured

Insurer

Shipping details

Place of origin

Insurance value

Final destination

Description of goods

Terms and condition

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14. SHIPPING BILL

SHIPPING BILL IS THE MAIN CUSTOMS document, requirement by the customs authorities
for granting permission for the shipment of goods . the cargo is moved inside the dock area the
shipping bill is duly stamped, i.e. certified by the customs . shipping bill is normally prepared in
find copies:-

Customs copy

Drawback copy.

Export promotion copy

Port trust copy.

Exporter`s copy

TYPES OF SHIPPING BILL

Based on the incentive offered by the government, customs authorities have introduced three
types of shipping bills:-

Drawback shipping bill:- drawback shipping bill is used for claiming the custome drawback
against goods exported.

Dutiable shipping bill:- dutiable shipping bill is required for goods which are subject to export
duty.

Duty-free shipping bill:- duty free shipping bill is usedful for exporting goods on which there is
no export duty

CONTENTS OF SHIPPING BILL

Name and address of the exporter.

Name and address of the importer.

Name of the vessel, master or agent and flag.

Name of the port at which goods are to be discharged.

52
Country of final destination.

Details about packages, description of goods, marks and numbers, quantity and details of each
case.

FOB price and real value of goods as defined in the sea customs act.

Whether Indian or foreign merchandise to be re-exported

Total number of packages with total weight and value.

SIGNIFICANCE OF SHIPPING BILL

A) Shipping bill is the main customs document, requirement by the customs authorities for
granting permission for the shipping goods.
B) The cargo is moved inside the dock area only after the shipping bills is duly stamped i.e.
certified by the customs.
C) Duly endorsed shipping bill is also necessary for the collection of the export incentives
offered by the government.
D) It is useful to the customs appraiser while determining the actual value of the goods
exported.

15. BILLS OF LADING

An evidence of contract between the shipper of the goods and the carrier. The customer usually
needs the original as proof of ownership to take possession of the goods.

As a document of the tittle, it is a certificate of ownership that allow a holder or consignee to

claim the merchandise described.

As a receipt of goods, it is issued by the carrier to the shipper for goods entrusted to the carrier`s
care for transportation.

As a contract of carriage, the bill of larding defines the contracts terms between the shipper and
his carrier.

 Equivalent to multimodal document/airways bill/railway/lorry/post parcel/courier

receipts

53
  These document state and evidence the mode, manner, and date of shipment
 These docs define the contractual right and obligation of the parties

TYPES OF BILL OF LADING

Clear bill of lading :- a bill of lading acknowledging receipts of the goods apparently in good
order and conditions and without any qualification is termed as a clean of lading.

Clause bill of lading:- a bill of lading qualified with certain adverse marks such as “goods
insufficiently packed in accordance with the carriage of goods by sea act,” is termed as a claused
bill of lading.

Transshipment or through bill of lading:- when the carrier uses other transport facilities , such as
rail , road or another streamship company in addition to his own , the carrier issues a thought or
transshipment bill of lading.

Stale of bill of lading:- a bill of lading that has been held too long before it is passed on to a bank
for negotiation or to the consignee is called a stale bill of lading.

Freight paid bills of lading :- when freight is not paid and is to be collected from the consignee
on the arrival of the goods , the bill of lading is marked, freight collect and is known as freight
collect bill of lading.

CONTENTS OF BILL OF LADING

Name and logo of the shipping line .

Name and address of the shipper .

Name and the number of the vessel .

Name of port of loading .

Name of port of discharge and place of delivery.

Marks and container description .

Total number of container and package

Description of goods in terms of quality

54
Container status and seal number.

Gross weight in kg and volume in terms of cubic meters

Amount of freight paid or payable

Shipping bill number and date

Signature and initials of the chief officer

SIGNIFICANT OF BILL OF LADING FOR SHIPPING COMPANY

(a) It is a contract between the shipper and the shipping company for the carriage of goods to the
port of destination

(b) It is an acknowledgement indicating that the goods mentioned in the document have been
received on board for the purpose of shipment.

(c) A clean bill of lading certifies that the goods received on board the ship are in order and good
condition.

(d) It is also useful for claiming incentives and assistances offered by the government to
exporters.

(e) The exporter can claim damages from the shipping company if goods are lost or damaged
after the issue of a clean bill of lading.

16. AIRWAY BILL

An air waybill (AWB) is a document that accompanies goods shipped by an international air
courier to provide detailed information about the shipment and allow it to be tracked. The bill
has multiple copies so that each party involved in the shipment can document it. An air waybill
(AWB), also known as an air consignment note, is a type of bills of lading.

How an Air Waybill Works

An air waybill (AWB) serves as a receipt of goods by an airline (the carrier), as well as a
contract of carriage between the shipper and the carrier. It‟s a legal agreement that‟s enforceable
by law. It becomes an enforceable contract when the shipper (or shipper's agent) and carrier (or
carrier's agent) both sign the document.
55
The AWB will also contain the shipper's name and address, consignee's name and address, three
letter origin airport code, three letter destination airport code, declared shipment value for
customs, number of pieces, gross weight, a description of the goods and any special instructions
(e.g., "perishable").

It also contains the conditions of the contract that describe the carrier's terms and conditions,
such as its liability limits and claims procedures, a description of the goods, and applicable
charges.

Contents of airway bill

The Airway Bill contains the following information:

Name of the airport of departure and destination,

Name and address of the shipper

Name and address of the consignee,

Port of departure and destination,

Particular marks necessary for identification of goods,

Description of goods (General description),

Packing and Container description,

Indication of Full Container Load (FCL) or Less C

Transit places (where applicable),

Pre- paid freight or freight collect clauses,

Date and signature of the issuing carrier or his agent

Importance of airway bill:

The AWB combines several purposes:

 Documentary evidence of the conclusion of the Contract of Carriage

 Proof of receipt of the goods for shipment

56
  Freight bill
 Guide for handling, dispatching and delivering the consignment

It‟s important that the Air Waybill be completed correctly

17. A.R.E. 1 FORMS (CENTRAL EXCISE) :

This form ARE-1 is prescribed under central excise rules for export of goods . in case goods
meant for export are cleared directly from the premises of a manufacturer , the exporter can avail
the facility of exemption from payment of terminal excise duty. The goods may be cleared from
export either under claim for rebath of duty paid or under bond without payment of duty. In duty
the events the goods are to be cleared under form A.R.E-1 which will show the details of the
goods being cleared under bong, details of goods being sealed either by the exporter or central
excise officials etc.

18. CERTIFICATE OF ORIGINAL

The important in several countries require a certificate of original without which clearance to
import is refused. The certificate of original states that the goods exported are originally
manufactured in the country whose name is mentioned in the certificate.

57
 TYPES OF THE CERTIFICATE OF ORIGIN
Non-preferential certificate of origin

Certificate of Origin form B issued by VCCI, Vietnam

Non-preferential certificate of origin is the form of certificate issued for the purpose of
complying with non-preferential rules of origin. This type of certificate basically certifies the
country of origin of the product without allowing it to be entitled to preferential tariffs under
preferential trade regimes. To be specific, non-preferential certificate of origin is used within the
WTO framework for most-favored-nation treatment as provided for in Article 1.2 of the
Agreement on Rules of Origin.

The words "preferential" and "non-preferential" in the Agreement does cause certain confusion.
In the WTO context, preferential trade regimes cover free trade agreements and other
autonomous preferential regimes, such as Generalized System of Preference. Therefore, although
MFN tariffs can actually be more favorable as compared to those applied to goods originating in

58
non-WTO countries, they are considered "non-preferential" because they are applied to all
members in the same manner without discrimination. Moreover, as trade within the WTO now
accounts for roughly all world trade, transactions with countries outside the WTO are negligible
in value. This is the reason why these days very few WTO members still require the submission
of a non-preferential certificate of origin to apply MFN tariffs, but will apply them automatically.

However, non-preferential certificate of origin remains important in several cases. Non-

preferential rules of origin shall apply to products originating in countries subject to trade
remedies, so this form may be requisite in such instances. In the time of trade wars, a certificate
of origin showing that the product is not originating in a sanctioned country may also be required
for the goods to enter the sanctioning country. Moreover, sometimes the origin of the good itself
is an evidence of quality and prestige, so it may be beneficial to obtain one, although it does not
help traders gain preferential tariff treatment.

Preferential certificate of origin

A preferential certificate of origin is a document attesting that goods in a particular shipment are
of a certain origin under the definitions of a particular bilateral or multilateral free trade
agreement. This certificate is usually required by the importing country's customs authority in
deciding whether the imports should benefit from preferential treatment allowed under the
applicable agreement. Unlike non-preferential certificate of origin which often indicates only the
country of origin in its title, a preferential certificate will indicate at the top of the document
under which trade agreement it is issued.

As compared to non-preferential certificate of origin, preferential certificate of origin has more

practical use because it enables the claim of benefit beyond the MFN treatment. Therefore, most
of the discussion on certificate of origin normally focuses on preferential one. The following
parts on forms and formats will add clarification to the diversity of this type of certificate of
origin.

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Certificate for availing Concessions under Commonwealth Preferences (CWP) :

Certificate of origin for the purpose of Commonwealth Preference is also known as 'Combined
Certificate of Origin and Value'. Two member countries, Le, require it. Canada and New Zealand
of the Commonwealth. For concession under Commonwealth preferences, the certificates or
origin have to be submitted in special forms obtainable from the High Commission of the
country concerned.

Certificate for availing Concessions under other Systems of. Preference :

Certificate of origin is also required for tariff concessions under the Global System of Trade
Preferences (GSTP), Bangkok Agreement (BA) and SAARC Preferential Trading Arrangement
(SAPTA) under which India grants and receives tariff concessions on imports and exports.
Export Inspection Council (EIC) is the sole authority to print blank Certificates of . Origin under
BA, SAARC and SAPTA which can be issued by such agencies as EPCs, DCs of EPZs, EIC,
APEDA, MPEDA, FIEO, etc.

Contents Of Certificate Of Origin :

Name and logo of chamber of commerce.

Name and address of the exporter.

Name and address of the consignee.

Name and the number of Vessel of Flight.

Name of the port of loading.

Name of the port of discharge and place of delivery.

Marks and container number.

Packing and container description.

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Total number of containers and packages.

Description of goods in terms of quantity.

Signature and initials of the concerned officer of the issuing authority.

Seal of the issuing authority.

19. CHECK LIST EXPORT DOCUMENTATION

Common Export Documents

This section covers documents that are commonly used in exporting, but specific requirements
vary by destination and product. It is divided into the following subsections: common export
documents, transportation documents, export compliance documents, certificates of origin, other
certificates for shipments of specific goods, other export-related documents, and temporary
shipment documents.

COMMON EXPORT DOCUMENTS

Commercial Invoice

A commercial invoice is a bill for the goods from the seller to the buyer. These invoices are often
used by governments to determine the true value of goods when assessing customs duties.
Governments that use the commercial invoice to control imports will often specify its form,
content, number of copies, language to be used, and other characteristics.

Export Packing List

Considerably more detailed and informative than a standard domestic packing list, an export
packing list lists seller, buyer, shipper, invoice number, date of shipment, mode of transport,
carrier, and itemizes quantity, description, the type of package, such as a box, crate, drum, or
carton, the quantity of packages, total net and gross weight (in kilograms), package marks, and
dimensions, if appropriate. Both commercial stationers and freight forwarders carry packing list
forms. A packing list may serve as conforming document. It is not a substitute for a commercial

61
invoice. In addition, U.S. and foreign customs officials may use the export packing list to check
the cargo.

Pro Forma Invoice

A pro forma invoice is an invoice prepared by the exporter before shipping the goods, informing
the buyer of the goods to be sent, their value, and other key specifications. It also can be used as
an offering of sale or price quotation.

TRANSPORTATION DOCUMENTS

Airway Bill

Air freight shipments require airway bills. Airway bills are shipper-specific (i.e., USPS, Fed-Ex,
UPS, DHL, etc.).

Bill of Lading

A bill of lading is a contract between the owner of the goods and the carrier (as with domestic
shipments). For vessels, there are two types: a straight bill of lading, which is non-negotiable,
and a negotiable or shipper's order bill of lading. The latter can be bought, sold, or traded while
the goods are in transit. The customer usually needs an original as proof of ownership to take
possession of the goods.

20. INSPECTION CERTIFICATE

A document certifying that merchandise (such as perishable goods) was in good condition at the
time of inspection, usually immediately prior to shipment. Pre-shipment inspection is
requirement for importation of goods into many developing countries. When used as a required
document under letter of credit terms, the details and identity of the party providing the
inspection should be mentioned. If this not done, banks will accept any document appearing on
its face to be an inspection certificate issued by any party other than the beneficiary. Companies
specializing in the inspection of goods at ports such as the Swiss SGS or the French Bureau
Veritas have offices in the main exporting countries. There are also companies that specialize in
inspections in certain countries such as Asia Inspection in China and other Asian countries. See
pre-shipment inspection

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MARINE INSURANCE POLICY

Marine insurance covers the loss or damage of ships, cargo, terminals, and any transport by
which the property is transferred, acquired, or held between the points of origin and the final
destination. Cargo insurance is the sub-branch of marine insurance, though Marine insurance
also includes Onshore and Offshore exposed property, (container terminals, ports, oil platforms,
pipelines), Hull, Marine Casualty, and Marine Liability. When goods are transported by mail or
courier, shipping insurance is used instead.

22.SINGLE COUNTRY DECLARATION

The single country declaration form is required for all textiles and textile product in a single
country and imported into the US , if textile or product are valued at US$5.00(APPROX CAN
$7.50) OR OVER. This is usually required for export in countries other than those where GSP
certificate is required.

CONTENTS:

Mark of identification or art no.

Description of article and quantity

Invoice no. and date

Country of origin

Date of export

63
 SINGLE COUNTRY DECLARATION

I , ___________________________________(name), declare that the articles listed below and covered by the
invoice or entry
to which this declaration relates are wholly the growth, product, or manufacture of a single foreign territory or
country, or
insular possession of the U.S. , or were assembled in the single foreign territory or country, or insular
possession of the
U.S. of fabricated components which are in whole the product of the U.S. and/or the single foreign territory or
country, or
insular possession of the U.S. as identified below. I declare, that the information set forth in this declaration is
correct and
true to the best of my information, knowledge, and belief.
A)______________________ (country*) B)______________________ (country*)
C)______________________ (country*) D)______________________ (country*)

Marks of Identification Description of article Country* Date of

Numbers and quantity of Origin Exportation

Date_____________ Name_______________________________________________
Signature________________________________ Title_________________________________
Company_______________________________
Address________________________________________________________________
________________________________

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* Country when used in this declaration includes territories and U.S. insular possessions. If the entry or invoice to which the
declaration
relates covers merchandise from more than one country each country will be identified in the declaration by the alphabetical
designation
appearing next to the named country. In the case of an assembly operation of U.S. components, both the country of assembly and
the
U.S. shall be reported (e.g. Haiti/U.S.) along with the date of exportation from the country of assembly.
(2) More than one foreign territory or country, or U.S. insular possession. Textiles and textiles products which were subjected to
manufacturing or processing operations in , a nd/or incorporate materials originating in more than one foreign territory or
country, or
insular possession of the U.S. or were assembled in, and/or incorporate fabricated components which are the product of the U.S.
and
more than one foreign territory, country or insular possession of the U.S. ,shall be identified in a declaration which is
substantially in the following form:

65
23 SUMMARY STATEMENTS FOR ORDER

As the name suggest this is a summary statement of the order prepared for quick assessment of
order details.
CONTENTS:
Sales contract no.
Name of the customer
Country
Order value
Port of delivery
Mode of dispatch (air/sea/courier)
Payment terms
Packaging instructions
Last date of shipment
Nominations(if any)
Advanced received
Any specific instructions

24: REMITTANCE TRANSACTION COPY

A remittance is a payment that gets sent somewhere else. If you get a bill in the mail, you will
usually have at least a week to send your remittance. To "remit" is to send money or make
a payment and what you send is called remittance.
At the post shipping stage the exporter has to submit the document to a bank for negotiation or
discounting or collection for forwarding the same to the customer and also realization of export
proceeds. The bank letter by them and by the bank at the buyers‟s country which may include-
Name and address of the buyers
Details of various documents being sent and the number of the copies thereof
Name and address of the buyers‟s bank if available
If the document are sent L/C or on open terms
If the process are too adjusted against any pre-shipment packing credit loan
If the bill amount is to be adjusted against any forward exchange cover

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25.BANK REALISATION CERTIFICATE
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
APPENDIX 22 A

67
 BANK CERTIFICATE OF EXPORT AND REALISATION

FORM NO. 1

To ______________________________________( Name and address of Regional Authority ) We

_____________________________________ (Name and address of the Exporter ) hereby declare that
we have forwarded a documentary export Bill to _____________________________ ( Name and address
of the Bank i.e., Branch and City) for collection / negotiation / purchase as per particulars given hereunder.

Invoice Export promotion Description of Bill of Lading / PP Destination of Bill amount CIF
copy of Shipping goods as given Receipt / Airways goods / C&F / FOB
Bill duly in the customs Bill (In foreign
authenticated by authenticated Exchange
the Customs Shipping Bill
No. Date No. Date and the No. Date Country name
Commercial
Invoice /
Packaging List
[1] [2] [3] [4] [5] [6] [7] [8] [9]

Freight Insurance Commission Whether the FOB value/ Date of GRI/PP/ No. date &
amount amount as / Discount export is in FOB value realisation SDF form category of
as per Per paid/ freely actually of export No. Applicable
Bill of Insurance payable convertible realised in proceeds Authorization
lading/ Company's currency or in free
Freight bill/ Receipt Indian Rupees Foreign
memo Exchange /
Rupees
[10] [11] [12] [13] [14] [15] [16] [17]

We further declare that the aforesaid particulars are correct. (Copies of invoices relevant to these exports and Customs attested
EP, Copy of relevant Shipping Bill is attached for verification by the bank).

Signature of the exporter : ...........................................

Name in block letters : ...........................................

Place: : ...........................................
Date: Designation : ...........................................
Full official address : ...........................................
Official Full Residential address : ...........................................
Seal/stamp

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 195

BANK's CERTIFICATE

Authorised Foreign Exchange Dealer

Code No. allotted to the Bank by RBI ______________________________
Ref.No. ___________________________
Date _____________________________
Place ____________________________

1.This is to certify that we have verified the relevant Export Invoices, Customs attested E.P. Copy of the Shipping Bill and other relevant
documents of M/s.___________________________. We further certify that the particulars given in Co.1 to 17 have been verified
and found to be correct. We have also verified the F.O.B. value mentioned in Col.14 above with reference to following
documents:-

(i)Bill of Lading / PP receipt / Airways Bill

(ii)Insurance policy / Cover / Insurance Receipt.

2.FOB actually realized and date of realization of export proceeds are to be given in all cases except where consignment has been sent
against confirmed irrevocable letter of credit or exports made against the Government of India/EXIM Bank Line of Credit or
exports made under Deferred Payment/Suppliers Line of Credit Contract backed by ECGC Cover. An endorsement to that effect
needs to be endorsed in BRC.
3.We have also verified that the date of Export is _________. ( Applicable only in respect of Exports by air.)

4.This is to certify that we have certified the amount of the Commission paid/payable, as declared above, by the exporter i.e.
____________________________________________(in figures and words) with G.R. Forms and found to be correct.

(Signature of the Bankers)

Full address of the Bankers

Branch and City
Official Stamp

Note: 1.Bank can issue a consolidated certificate (consignment-wise) for more than one
consignment.

2.FOB actually realised and date of realisation of export proceeds are to be given in all
cases except where consignment has been sent against confirmed irrevocable letter of
credit. However for status holders, irrevocable letter of credit would suffice.

3.This shall be required wherever specifically prescribed in the Policy / procedure.

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This bank realization certificate should be signed by the authorized signatory of the
firm/company with the full name in capital letter and official and residential address. The place
and date of the bank certificate should be mentioned. Official seal stamp should be affixed.

26. GENERALISED SYSTEM OF PREFERENCE CERTIFICATE OF ORGIN (GSP)

GSP is the short form of Generalized System of Preferences also known

as GSP schemes. Generalized System of Preferences is a preferential tariff system granted by
bunch of developed countries to developing or least developed countries.

The claim for GSP treatment must be supported with the appropriate documentary evidence.
The GSP Certificate of Origin Form A is used for this purpose.

The Form A was adopted in 1970 by the UNCTAD´s Working Group on Rules of Origin as a
common certificate of origin for the purposes of the GSP (TD/B/AC.5/38).

Most recently, changes to the Form A were made:

In September 2013 to take into account the accession of Croatia to the European Union as well
as the introduction by Iceland of unilateral duty-free and quota-free market access for imports of
certain products originating in least developed countries (Notes 2013)(TD/B/GSP/FORM/4)

In July 2007 to take into account the European Union´s enlargement and to include the
Principality of Liechtenstein, leading to a revision of the note on the Back of the form (Notes
2007) (TD/B/GSP/FORM/3)

In July 2005 to take into account the new GSP scheme of Turkey, leading to a revision of the
note on the back of the form (Notes 2005) (TD/B/GSP/FORM/2/Rev.1)

In April 2004 to take into account the European Union´s enlargement, leading to a revision of the
note on the back of the form (Notes 2004) (TD/B/GSP/FORM/1)

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The Trade and Development Board, at its forty-first session of the Trade and Development
Board, held from 18 to 20 April 2007, agreed that the old Form A with notes dated 1996, 2004
and 2005 will remain valid until existing stocks are exhausted.

Certifying Authorities

The beneficiary countries should inform the preference-giving countries, either directly or
through the UNCTAD secretariat, the names and addresses of the governmental authorities
issuing the GSP Certificate of Origin Form A together with specimens of stamps used by these
authorities.

However, it is not required to notify the specimen of signatures or the names of persons
authorized to issue Form A.

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FORM A - Generalized System of Preferences - Certificate of Origin

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 MODE OF PAYMENT

Here are 3 standard ways of payment methods in the export import trade international trade
market:

Clean Payment

Collection of Bills

Letters of Credit L/c

1. Clean Payments

In clean payment method, all shipping documents, including title documents are handled directly
between the trading partners. The role of banks is limited to clearing amounts as required. Clean
payment method offers a relatively cheap and uncomplicated method of payment for both
importers and exporters.

There are basically two type of clean payments:

Advance Payment

In advance payment method the exporter is trusted to ship the goods after receiving payment
from the importer.

Open Account

In open account method the importer is trusted to pay the exporter after receipt of goods.

The main drawback of open account method is that exporter assumes all the risks while the
importer get the advantage over the delay use of company's cash resources and is also not
responsible for the risk associated with goods.

2. Payment Collection of Bills in International Trade

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The Payment Collection of Bills also called “Uniform Rules for Collections” is published by
International Chamber of Commerce (ICC) under the document number 522 (URC522) and is
followed by more than 90% of the world's banks.

In this method of payment in international trade the exporter entrusts the handling of commercial
and often financial documents to banks and gives the banks necessary instructions concerning
the release of these documents to the Importer. It is considered to be one of the cost effective
methods of evidencing a transaction for buyers, where documents are manipulated via the
banking system.

There are two methods of collections of bill :

Documents Against Payment D/P

In this case documents are released to the importer only when the payment has been done.

Documents Against Acceptance D/A

In this case documents are released to the importer only against acceptance of a draft.

3. Letter of Credit L/c

Letter of Credit also known as Documentary Credit is a written undertaking by the importers
bank known as the issuing bank on behalf of its customer, the importer (applicant), promising to
effect payment in favor of the exporter (beneficiary) up to a stated sum of money, within a
prescribed time limit and against stipulated documents. It is published by the International
Chamber of Commerce under the provision of Uniform Custom and Practices (UCP) brochure
number 500.

Various types of L/Cs are :

Revocable & Irrevocable Letter of Credit (L/c)

A Revocable Letter of Credit can be cancelled without the consent of the exporter. An
Irrevocable Letter of Credit cannot be cancelled or amended without the consent of all parties
including the exporter.

Sight & Time Letter of Credit

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If payment is to be made at the time of presenting the document then it is referred as the Sight
Letter of Credit. In this case banks are allowed to take the necessary time required to check the
documents.
If payment is to be made after the lapse of a particular time period as stated in the draft then it is
referred as the Term Letter of Credit.

Confirmed Letter of Credit (L/c)

Under a Confirmed Letter of Credit, a bank, called the Confirming Bank, adds its commitment to
that of the issuing bank. By adding its commitment, the Confirming Bank takes the responsibility
of claim under the letter of credit, assuming all terms and conditions of the letter of credit are
met.

MODE OF SHIPMENT

The term shipping can be used to refer to various modes of transporting cargo and other goods
through land, sea or air. Although it is most commonly used to refer to the transportation of
objects and cargo by sea, it can also refer to air and land transportation of goods. All three
different modes of shipping take the cargo and deliver it to its destination. A supplier or
transporter may choose any of the three different modes of transport to deliver goods and cargo
depending on several factors such as budget, time and types of goods being transported. If it is
within the same country itself, land transportation is normally used as it is typically cheaper than
air shipment. Shipment from the shipper‟s place directly to the destination is known as door to
door shipment.

Sea Transport

Shipping by sea can be for various reasons such as commercial, recreational or military. Almost
anything can be transported by sea, but it is not practical to ship cargo when time is a key issue
in delivery. The goods or cargo that gets transported by sea can be packaged into boxes, cases,
pallets and barrels. Containerization, which greatly reduced transportation costs after its
development following World War 2, allows transporters to „rent‟ space inside containers that
are built to specific dimensions and can store goods that are to be transported over long
distances, by ground or sea. Much of the shipping that is done in the world actually is done
aboard ships. The crew that tends to this form of shipping is called the merchant navy or

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merchant marine. Most of the trade that happens in the world is done through merchant shipping
that carries 90% of the international trade that happens in the world, making it the lifeblood of
the world economy. Ships can transport anything from clothing, technological gadgets and shoes
to cars, raw materials such as iron or coal and even oils and chemicals.

Land Shipping

Probably one of the earliest form of transporting cargo and good, land shipping is very useful in
transporting goods within a country or across borders which are not very far away. Just like sea
cargo transportation, land shipment can transport goods of almost any size. Groceries or any
items that one may buy off internet are usually transported through land shipping, unless the
origin of the product being bought is at a country which is across the ocean from the destination
country. Even still, land shipment would still be used to bring the goods to the persons‟ house.
Land shipment is involved in both sea and air shipment to bring the goods to the destination.
Using trucks to transport goods via land is the most common mean of transportation. Trucks
allow bulky and big items to be transported over long distances such as construction material and
even cranes. The advantage of land shipment is that it is cheaper than air freight; however it
takes longer for the goods to reach the final destination. Some machinery that cannot be
transported by air transport; such as cranes, require land shipment to be delivered to the
destination. Another mode of land transportation beside trucks to deliver cargo can be trains.
These deliver cargo over long distances and are a faster medium of shipment than trucks.

Air Freight

As for air cargo shipment, it makes use of aircrafts to transport goods. Items that are required to
be delivered quickly can be transported via air cargo. These freight services can also deliver
almost anything beside extremely big items that may not fit in the plane. Special aircraft have
been developed to support air cargo transportation. Most food items and postcards/ letters are
transported through air fright as they are time sensitive and require quick delivery. This form of
transportation is usually the most expensive as compared to the other two methods.

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 TYPES OF INVOICE

Free On Board (FOB)

Free On Board (FOB) is a shipment term used to indicate whether the seller or the buyer is liable
for goods that are damaged or destroyed during shipping. "FOB shipping point" or "FOB origin"
means the buyer is at risk and takes ownership of goods once the seller ships the goods. For
accounting purposes, the supplier should record a sale at the point of departure from its shipping
dock. "FOB origin" means the purchaser pays the shipping cost from the factory or warehouse
and gains ownership of the goods as soon as it leaves its point of origin. "FOB destination"
means the seller retains the risk of loss until the goods reach the buyer.

Free On Board is a term used to indicate who is liable for goods damaged or destroyed during
shipping.

The terms of FOB affect the buyer's inventory cost; adding liability for shipped goods increases
inventory costs and reduces net income.

FOB contracts have become more sophisticated in response to the increasing complexities of
international shipping.

Cost and Freight – CFR

Cost and freight is a legal term in international trade. In a contract specifying that a sale is CFR,
the seller is required to arrange for the carriage of goods by sea to a port of destination and
provide the buyer with the documents necessary to obtain them from the carrier. Under CFR, the
seller does not have to procure marine insurance against the risk of loss or damage to the cargo
during transit.

CFR is a legal term in international trade that specifies the seller is required to arrange for the
carriage of goods by sea to a port of destination and provide the buyer with the documents
necessary to obtain the items from the carrier.

CFR is a commonly used International Commercial Term.

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For the seller, a CFR means they are not responsible for buying insurance for the loss or damage
of product during transportation.

Cost, Insurance, and Freight (CIF)

Cost, Insurance, and Freight (CIF) is an expense paid by a seller to cover the costs, insurance,
and freight against the possibility of loss or damage to a buyer's order while it is in transit to
an export port named in the sales contract. Until the loading of the goods onto a transport ship is
complete, the seller bears the costs of any loss or damage to the product. Further, if the product
requires additional customs or export paperwork or requires inspections or rerouting, the seller
must cover these expenses. Once the freight loads, the buyer becomes responsible for all other
costs. It is similar, but different to Carriage and Insurance Paid To (CIP).

 Purchasing export licenses as needed for the product

 Covering the cost and contracts of moving or carrying the goods
 Insurance to protect the value of the order
 Providing for inspections as required for the products
 Paying for the price of damage or destruction of all goods ordered

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CHAPTER - 3

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 ORGANISATION RELATED TO EXPORT
1. Directorate general of foreign trade (DGFT)-

The Central Government appoints any person to be the Directorate General of Foreign Trade.
Normally a member of the Indian Administrative Service having rendered 30 or more years is
appointed to the post of the Director-General of Foreign Trade. The Director-General heads an
attached office under the administrative control of the Ministry of Commerce and Industry of the
Government of India. The Director-General is an Ex-Officio Additional Secretary to the
Government of India. The Director-General advises the central Government in the formulation of
Foreign Trade Policy and is responsible for carrying out that Policy. At present, the Director-
General formulates Foreign Trade Policy and Hand Book of Procedures of Foreign Trade Policy
and ITC (HS) Classifications of Import and Export Items. The Director-General heads an
organization known as the Directorate General of Foreign Trade. The organization has its offices
known as Regional Authority (RA) and Zonal Office. These offices administer the Foreign Trade
Policy and Procedures. While the Regional Offices at Kolkatta, Delhi, Chennai and Mumbai are
Zonal Offices which are headed by Additional Director General of Foreign Trade, the remaining
Regional Offices are headed by Joint Director General, Deputy Director General and Assistant
Director-General.

Important Roles and Functions of DGFT

 Implement EXIM Policy/Foreign Trade Policy

 Implement Foreign Trade Procedures
 Issue IEC Code to Exporters and Importers
 Document and Mantain Classifications of ITC-HS Codes
 Platform for updating eBRC
 Inform about Goods which can or cannot be exported freely under Export Policy Schedule 2
 Grant Export Licenses for Restricted Items
 Promote Trade
 Control DEPB Rates
 Regulate Transit of Goods

Implement EXIM Policy/Foreign Trade Policy

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Exim Policy or Foreign Trade Policy is a set of guidelines and instructions related to import and export of
goods developed by the Directorate General of Foreign Trade. The Government of India announces the
EXIM Policy which is applicable for a period of 5 years under Section 5 of the Foreign Trade Act 1992.
The objective of the policy is to encourage exporters in the country, thereby increasing exports and
maintaining favourable balance of payments position. Currently Foreign Trade Policy 2015-2020 is in
effect and will remain applicable till 31st March 2020.

Implement Foreign Trade Procedures

DGFT formulates and announces Foreign Trade Procedures which are to be followed by an exporter or
importer for the purpose of implementing provisions of Foreign Trade Act and Foreign Trade Policy. The
objective is to lay down simple EDI compatible procedures which are easy to understand and user
friendly for efficient execution of foreign trade in the country. Parallel to the current Foreign Trade
Policy, the Handbook of Foreign Trade Procedure 2015-2020 is in effect at present.

Issue IEC Code to Exporters and Importers

IEC Code is a must for all import and export businesses in India. It is a unique 10 digit registration code
issued by DGFT. This code helps in tracking and managing shipments of an exporter or importer. The
IEC Code is now integrated with PAN, and only one IEC can be issued against one PAN. An exporter or
importer can apply for IEC Code or e-IEC online on DGFT‟s website.

Document and Maintain Classifications of ITC HS Codes

ITC HS Codes are based on International Harmonized System of Coding and were adopted in India for
facilitating foreign trade. The Indian customs uses 8 digit ITC HS Code in trading activities. The ITC HS
Codes are divided into two schedules wherein, Schedule 1 is for Import Activities and Schedule 2 is for
export activities. Any changes, or addition such as changes in description of commodities, removing
defunct codes, adding new codes etc. are carried out by DGFT.

Platform for updating and viewing eBRC

eBRC or Bank Realization Certificate is issued by Banks to exporters so that they may claim benefits
under various export promotion schemes under the Foreign Trade Policy. To promote paperless trade

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DGFT introduced eBRC feature for Banks to electronically transmit Foreign exchange realization directly
to the exporter's account.

An exporter can follow the following steps for viewing his eBRC:-

 Go to DGFT's website and select "View and Print your eBRC"

 To access the eBRC details you have to enter your IEC Code and IFSC Code of the bank whose
eBRC you want to view or where your drawback amount or forex has been realised. Once you
have filled these details click on "Show Details".
 A list of all eBRCs uploaded by that bank will be shown
 You can download each eBRC by clicking on print.

It is advisable to print 4 copies of each eBRCs as they might not be available later on due to constant
server updations.

*This is what an eBRC looks like. *

2. EXPORT CREDIT GUARANTEE CORPORATION –

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What is Export Credit Guarantee Corporation?

Export Credit Guarantee Corporation of India is fundamentally an export promotion

organization, which seeks to enhance the competitiveness of Indian exports by offering them
credit insurance covers. Over the years ECGC has considered various export credit risk insurance
products suiting the needs of Indian exporters.

This corporation was set up for ensuring smooth functioning of Indian exporters by minimizing
the risks associated with the payments emanating from other nations. This insurance cover which
is provided by ECGC also assists the Indian exporters with better access to the credit facilities
from banks and other financial institutions. ECGC is the 5th largest credit insurance company
dealing with the exports of any country.

Export Credit Guarantee Corporation of India offers protection against the non-payment by an
importer. Due to this insurance cover, the financial institutions are better placed for lending and
providing larger credit to exporters. ECGC also offers credit ratings as well as shares the
information on various countries and risks associated with doing business with/in those
countries.

What does an ECGC do?

1. It offers an array of credit risk insurance covers to the Indian exporters against the loss with
respect to the export of their goods and services

2. It provides Export Credit Insurance covers to the banks and other financial institutions for
enabling exporters to find better services from them

3. It offers Overseas Investment Insurance to the Indian companies investing in Joint Ventures
(JVs) abroad in the form of loan or equity

How does ECGC help the exporters?

ECGC provides the insurance protection to Indian exporters against the payment risks. It helps
the exporters in a number of ways which include:

1. Guiding export-related activities

2. Making information available with respect to various countries with its credit ratings

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3. Making it easy to get export finance from the banks and other financial institutions

4. Helping Indian exporters recover bad debts

5. Providing information on the credit-worthiness of foreign buyers

ECGC further insures exporter‟s credit risks against both political as well as commercial
conditions and guarantees the payment to exporters. ECGC offers several types of insurance
covers and these could be classified into the following groups:

a. Standard policies that protect Indian exporters against overseas credit risks

b. Construction works and services policies

c. Financial Guarantees

d. Special policies

ECGC offers following types of guarantees to the exporters:

i. Export finance guarantee

ii. Packing credit guarantee

iii. Post-shipment export credit guarantee

iv. Export production finance guarantee

v. Transfer guarantee

vi. Export performance guarantee

Over the years the Export Credit Guarantee Corporation of India has proved to be useful to
Indian exporters. It pays 80 to 90 per cent of loss incurred by Indian exporters. The remaining 10
to 20 per cent of the loss alone has to be borne by the exporters.

However, it doesn‟t cover the risks mentioned below:

i. Exchange loss due to fluctuations in exchange rates

ii. Failure on the part of the buyer abroad to obtain the import authorization or exchange

iii. A default of the exporter or his agent

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iv. Any loss which arises due to dispute in quality

v. Risk which is inherent in the nature of goods

3. CHEMICAL AND ALLIED PRODUCTS EXPORT PROMOTION COUNCIL

(CAPEXIL)

CAPEXIL, a non-profit making organization, was setup in March 1958 by the Ministry of
Commerce, Government of India to promote export of Chemical and Allied Products from India.
And since then has been the voice of Indian business community. With the headquarter at
Kolkata, and regional offices at New Delhi, Mumbai, Kolkata and Chennai, CAPEXIL has more
than 3500 members across the country. One of the fascinating aspects of CAPEXIL is the
overwhelming variety of products it deals with.
CAPEXIL is an ardent advocate of exporters to the Government and the primary focus is to
provide export assistance to its member exporters.
CAPEXIL sends trade delegation to all major and developing markets around the world,
showcases Indian exports all over the world through exhibitions, fairs.
Capexil can help the sourcing needs of an importer anywhere in the world, and also the selling
needs of Indian exporters.

CAPEXIL is an ISO 9001 : 2000 certified organization.

4. WHAT IS A RATING AGENCY?

A rating agency is a company that assesses the financial strength of companies and government
entities, especially their ability to meet principal and interest payments on their debts. The rating
assigned to a given debt shows an agency‟s level of confidence that the borrower will honor its
debt obligations as agreed. Each agency uses unique letter-based scores to indicate if a debt has a
low or high default risk and the financial stability of its issuer. The debt issuers may be sovereign
nations, local and state governments, special purpose institutions, companies, or non-profit
organizations.

Following the financial crisis of 2008, credit agencies drew criticisms for giving high credit
rating to debts that later turned out to be high-risk investments. They failed to identify risks that

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would have warned investors against investing in certain types of debts such as mortgage-backed
securities.

Rating agencies were also criticized for possible conflict of interest between them and issuers of
securities. Issuers of securities pay the rating agencies for providing rating services, and
therefore, the agencies may be reluctant to give very low ratings to securities issued by the
people who pay their salaries.

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 OBJECTIVE
A summer internship program is an ideal way to learn about an industry and to to simply gram
the skill working under guidance and supervision of experienced employees. As a first year
student of master of business administration, we get exposure to the real business world between
the first and the sound academics years, this is a valuable source of learning.

The objective of this summer training at banaras beads limited are:

 Understanding there basic export procedure.

 Learning the documentation requirement in export .
 Understanding the working of an export house.
 Getting acquired with the various method of delivery and modes of payment.
 The pre-shipment and post shipment requirement of the documentation.
 Learning the valuable new skills, getting practical experience and developing to reach our
career goals.

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 CONCLUSION

LEARNING THROUGH THIS PROJECT –

 Export documentation is an important branch to study overall procedure in the

international market.
 The document required in each and every country for the export and import are to be
studied before forwarding of the documents to the buyer.
 The government should simply the documentation and export procedure.
 Availability of favorable export finance schemes directly impact the local trade , enlarges
market abroad ,improves quality of domestic goods and overall helps the nation to boost
its exchange earning.
 Any of the three forms of shipping is very important in today‟s economy and society.
They each offer benefits that the other might not offer that support different purposes and
applications. Most shipping providers in today‟s time also provide services such as
tracking of the shipping item being delivered which allows the customer to know exactly
where his or her items are. Shipping was, is and would always play a crucial role in the
trading and other industries.

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 REFERENCES AND BIBLIOGRAPHY

 Mr. Vinay Kumar Piyush ; Chief Financial Officer

 Shri Siddharth Gupta CEO & Managing Director

 Shri Ashok Kumar Gupta Chairman & Managing Director

 Annual Reports of Banaras Beads LTD..

 Www. Google.com, www. Wikepidia.com

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