sales contract Auxillary documents

             Auxiliary Documents

´Proforma Invoice

´Intimation for inspection

´Shipping Instructions

´Insurance Declaration

´Shipping Orders

´Mate’s Receipt

´Application for Certificate of Origin (Form B)

´Letter to the Bank for Collection/Negotiation of Documents

´Proforma Invoice:

   A preliminary estimated invoice sent by a seller to a buyer in advance of a shipment. It records the kind and quantity of goods, their value, and other important information such as weight and transportation charges.

´Intimation for Inspection:

   A report issued by an independent surveyor (Inspection Company) for the specific shipment, including quality, quantity; required by certain buyer and countries. Inspection is usually performed by the third party, often an independent testing organization. 

´´Shipping Instructions:  A document sent by an exporter giving details of how goods are to be shipped and delivered

  This form gives details of the consignment such as its size, weight and volume of each package, number of packages, date of shipment, name of the vessel, name of the liner, port of entry, date of arrival at the destination and trans-shipment details, if any.

´Insurance Declaration (insurance policy cover note) : It assures the consignee that the loss, if any, to the cargo will be covered by the mentioned insurance company.

Shipping order : It is typically  sent along with a shipment of goods so that the person receiving them can verify that the document correctly reflects the items that they actually received.

´Mate Receipt : Document signed by an officer of a vessel evidencing receipt of a shipment onboard the vessel. It is not a document of title and is issued as an interim measure until a proper bill of lading can be issued.

´Letter to the Bank for Negotiation of Documents : It is obligatory for the exporter that after shipping the goods, exporter must hand over the relative documents within 21 days of shipment to your bank for onward dispatch to the overseas correspondent bank who will arrange payment of the same to your hanker.

´Thus, the legal requirement is that the payment against exports should be realized  within six months of date of shipment. 

It is, therefore, essential that once the goods are dispatched to foreign destination whether by land, sea or post, the exporter should approach his hank (authorized dealer in foreign exchange) with a formal letter requesting the bank to realize the Export Bills from the overseas buyer.

           Shipping  Documents

1. Shipping Bill: A form used by Customs and Excise before goods can be exported from the country or removed from a bonded warehouse.

It is prepared by the exporter and it contains

´The name of the vessel,

´Name of the port of discharge,

´Country of final destination,

´Exporter's name and address,

´Details about packages,

´Numbers, quantity and details about each case,

´FOB price

´Total number of packages with the weight and value and the name and address of the importer.

Shipping Bill: Types

  Usually the Shipping Bill is of four types which are:

´Export duty/ Cess (Yellow  in triplicate)

´Free of duty/ Cess (White in triplicate)

´Entitlement of Duty drawback; (Green in quadruplicate)

´Entitlement of credit of duty under Duty Entitlement Pass Book(DEPB) (Blue in 7 copies)

  Documents required for the processing of the Shipping Bill:

1.GR forms (in duplicate) : to customs for shipment to all the countries. It is a declaration that exporter gives against each shipment that he will realize the full export proceeds. After allowing exports , the Customs send the original to RBI and return the duplicate duly endorsed to the exporter. 

´Packing List(4 copies):mentioning the contents, quantity, gross and net weight of each package.

´A packing list accompanies the international shipment and is used to inform transportation companies about what they are moving as well as to allow the customer and other involved in the transaction to check what has been shipped against the  invoice. It is a goods safeguard against shipping incorrect cargo.

´Contract, Letter Of Credit , Purchase Order of the overseas buyer.

´AR4 & Invoice Inspection/ Examination Certificate.

´Every manufacturer for clearance of excisable goods files an application from his factory of export. The goods can be examined and sealed at the factory by a central excise officer having jurisdiction over the factory. After  shipment of goods, the customs officer endorses  Form which is taken as evidence by excise authorities for  considering rebate in duty.

´AR4 forms   to the Superintendent of Central Excise having jurisdiction over the premise of the exporter. After Superintendent signs with sealing , he allows the clearance of goods.

´2.Mate Receipt

´A document issued by the carrier to the shipper, indicating receipt of the goods, but not loading on board.

´Like a Bill of Lading B/L, a mate´s receipt can be either clean or claused/dirt/foul, depending on whether or not the goods have been received in apparent good condition

´ The mate´s receipt can later be exchanged for the bill of lading. Mate´s receipts are used only for charter shipments.

´3.Cart Ticket: A cart ticket is also known as Cart Chit. This is prepared by the exporter, which contains the details of:

´Vehicle number.

´Description of goods, quantity.

´Name of the shipper.

´Shipping Bill No. and port of destination.

´The driver of the vehicle carries the cart ticket. At the time of entry into Port the cart ticket is 'verified by the Port Authorities to satisfy that the vehicle is aiming only those goods which are mentioned in the cart ticket.

´After being satisfied the gatekeeper/warden/inspector issues the gate pass to the driver and of vehicle into the premises of the port.

4.Certificate of measurement :

´Freight can be charged either on the basis of weight or measurement. When it is charged on weight basis, the weight declared by exporter is accepted.

´However, certificate of measurement from the approved organization may be obtained by the exporter and given to the shipping company for calculation of necessary freight.

´This certificate contains the name of vessel, the port of destination, description of goods, quantity, length, breadth, depth etc. of packages. 

However, when measurement is the basis for calculation of freight, the shipping company may insist on a certificate issued by Chamber of Commerce or other approved organization in respect of goods.

´5.Bill of entry : A Bill of Entry is normally filed by an importer or a Custom House Agent. It is filed to undergo necessary import customs clearance formalities to take the goods out customs.

´As per the customs procedure all materials moved in to a country need to be approved by customs officials of each country to move to importer’s location.

´If the goods are cleared through the  EDI system no formal Bill of Entry is filed as it is generated in the computer system.

´Bill of Entry are of three types :-

´Bill of Entry for home consumption: is to be submitted when the imported goods are to be cleared on payment of full duty for consumption of the goods in India. It is white colored.

´Bill of Entry for Warehouses : is to be submitted when the imported goods are not required immediately by the importer but here they are to be stored in a warehouse without payment of duty

´Ex bond :The ex-bond bill of entry is filed to take the goods for home consumption by importer as and when he requires from the bonded warehouse explained above. The ex-bond bill of entry is in green color before if filed manually where in no EDI facility is available. The details of this types of procedures are mentioned in section 68 of Indian Customs Act.