EXPORT PROCEDURE

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Readers are requested to obtain permission to share the content of

this book - the author will be very happy to permit it. The author
may be contacted at [email protected]

Author: Prof. Trilok Kumar Jain, Professor and Director, CDOE,

Suresh Gyan Vihar University, Jaipur

Price : Free, but please share this book widely - particularly among
young persons so that they can learn a lot from this book.

Publisher: M/s Knowledge Creators, Sivakamu Veterinary Hospital

Road, Bikaner, India
TABLE OF CONTENTS:
STAGE 2:
1. Bill of Exchange (B/E)
2. Commercial Invoice
3. Packing List
4. Bill of Lading (B/L)
5. Marine Insurance Policy
6. Certificate of Origin (COO)
7. Letter of Credit (L/C)
8. Documents Against Acceptance (D/A)
9. Documents Against Payment (D/P)
10. Import Duty
11. Importer Exporter Code (IEC)
STAGE 3:
STAGE 4:
STAGE 5 :
STAGE 6 :
STAGE 7:
Commercial Invoice
Original Export Order
Original Letter of Credit (LC)
ARE‑1 Form (Original & Duplicate Copies)
Excise Gate Pass
Packing List
Certificate of Inspection
Declaration Form in Triplicate
Consular Invoice
Export License
Railway Receipt (R/R)
How these papers connect (simple flow)
Quick checklists
Self‑test (short)
STAGE 8:
STAGE 9:
STAGE 10:
STAGE 11:
1) Full set of Bill of Lading (B/L)
What it is
Why it matters
Who issues it
When you get it
“Full set” means
Main contents (check these)
Types you will hear
How to check before printing
Common mistakes
2) Shipping Bill (Export Declaration)
What it is
Why it matters
Who issues it
When you file it
Key data inside
Variants you may hear
Common mistakes
3) Copies of Customs Invoice (often called “Customs Invoice”)
What it is
Why it matters
Who makes it
What it contains (simple but complete)
How many copies
Common mistakes
4) ARE‑1 form (Export under Bond/LUT/Excise)
What it is
Why it matters
Who prepares it
Main parts
Simple flow
Common mistakes
5) One copy of Commercial Invoice attested by Customs
What it is
Why it matters
Who stamps it
When to do it
 What to check
Common mistakes
6) Original Export Order (Purchase Order / Contract)
What it is
Why it matters
Who issues it
Key points inside
What you should do
Common mistakes
7) Original Letter of Credit (LC)
What it is
Main parties
Why it matters
Key LC terms to check
Simple workflow
Common discrepancies (avoid these)
8) Railway Concession Form attested by Customs
What it is
Why it matters
Who prepares and who signs
When to use
What it includes
Steps in simple words
Common mistakes
How these papers connect (easy map)
Quick checklists
Before cargo leaves your factory
Before customs filing
After loading / at shipping line
Banking
Rail concession (if used)
Simple examples (mini samples)
Example B/L line items
Example Commercial Invoice lines
Example Shipping Bill notes
Tips to avoid problems
One‑page recap
STAGE 12:
STAGE 13:
1. ARE 1 Form (Duplicate copy)
2. Bill of Exchange
3. Full set of Bill of Lading (All negotiating copies)
4. Letter of Credit (Original)
5. Commercial Invoice (Two copies)
6. Custom Invoice (2 copies)
7. Packing List (2 copies)
8. Certificate of Origin (2 copies)
9. Marine Insurance Certificate (2 copies)
10. Bank Realisation Certificate (2 copies)
Summary: Why the Negotiating Bank Needs All These
STAGE 14:
Introduction
Export procedure is a methodology by which export trade transaction is
completed. It involves the study of different steps that are to be taken by the
two parties, namely the exporter and the importer. The export procedure is
lengthy & time-consuming. It involves a number of steps right from the time
an export order is received and it is completed with the realization of export
proceeds.

In between, there are many formalities is required to

be completed. In the export procedure, various formalities need to be
completed & various documents are required to be prepared by the exporter.
Every exporter should have a thorough knowledge of the rules, regulations &
procedure required to be followed for exporting goods abroad.

The procedure of exporting involves the following stages:-

STAGE 1:

First of all, find some international buyer (through exhibitions,

online advertisements, references or direct contact). Usually Export House
gets order in three ways:-

●​ Through Internet.

●​ Through International Trade & Exhibition.and,

●​ Through Global Tender which is floated by the Importer.

STAGE 2:

The export order must specify the mode of payments such as:

●​ L/C (Letter of Credit)

●​ D/P (Document against Payment)

●​ D/A (Document against Acceptance)

At this stage, the company prepares all the necessary documents including
Sales Contract required by the buyer and submits to the negotiating bank in
exact specified manner. The most important documents demanded by the
importer are:-

●​ Bill of Exchange

●​ Commercial Invoice
 ●​ Packing List

●​ Bill of Lading

●​ Marine Insurance Policy

●​ Certificate of Origin

These are explained below:

1. Bill of Exchange (B/E)

Definition:​
A written, unconditional order from the exporter (drawer) to the importer
(drawee) to pay a specific sum either on demand or at a future date. It’s a
negotiable instrument used in international trade.

Contents:

1.​ Title: “Bill of Exchange”​

2.​ Date & place of issue​

3.​ Amount (in figures & words)​

4.​ Name of drawee (buyer/importer)​

5.​ Payment terms (at sight / after certain days)​

6.​ Name of payee (usually exporter or their bank)​

7.​ Signature of drawer (exporter)​

Procedure to prepare:

1.​ Exporter drafts B/E according to agreed payment terms.​

2.​ Ensures alignment with contract or L/C terms.​

3.​ Sends to importer (or via bank) for acceptance.​

4.​ Accepted bill is returned and used for payment or discounting.​

Necessity:
 1.​ Acts as a legal payment demand.​

2.​ Facilitates credit sales.​

3.​ Can be discounted with a bank for early payment.​

2. Commercial Invoice
Definition:​
Primary document issued by the exporter to the importer specifying goods
sold, prices, and payment details. Serves as the basis for customs valuation.

Contents:

1.​ Exporter & importer details​

2.​ Invoice number & date​

3.​ Description of goods (quantity, quality, HS code)​

4.​ Unit price & total value​

5.​ Currency of transaction​

6.​ Terms of delivery (Incoterms)​

7.​ Payment terms​

8.​ Signatures​

Procedure to prepare:

1.​ Gather shipment and contract details.​

2.​ Fill invoice in line with sales contract and L/C requirements.​

3.​ Include accurate HS codes and values for customs.​

4.​ Send copies to importer and other concerned parties.​

Necessity:
 1.​ Required by customs in both exporting & importing countries.​

2.​ Basis for payment and accounting.​

3.​ Proof of sale.​

3. Packing List
Definition:​
Detailed list showing the contents, packaging method, and
weight/measurements of each package in the shipment.

Contents:

1.​ Exporter & importer details​

2.​ Invoice reference​

3.​ Package numbers​

4.​ Description of contents per package​

5.​ Gross & net weight​

6.​ Dimensions & volume​

7.​ Marks & numbers on packages​

Procedure to prepare:

1.​ Match shipment with commercial invoice.​

2.​ List all packages systematically.​

3.​ Assign identification marks/numbers.​

4.​ Print & sign copies for customs and logistics parties.​

Necessity:

1.​ Helps customs inspect shipments.​

 2.​ Used by freight forwarders for loading plans.​

3.​ Assists importer in verifying receipt of goods.​

4. Bill of Lading (B/L)

Definition:​
A transport document issued by a carrier acknowledging receipt of goods and
promising delivery to the consignee at the destination.

Contents:

1.​ Shipper (exporter) & consignee (importer)​

2.​ Vessel name & voyage number​

3.​ Port of loading & discharge​

4.​ Description of goods​

5.​ Number of packages & weight​

6.​ Freight terms (prepaid/collect)​

7.​ Date & place of issue​

8.​ Signature of carrier/agent​

Procedure to prepare:

1.​ Exporter books shipment with carrier.​

2.​ Carrier collects goods and issues B/L.​

3.​ Exporter checks details and sends original(s) to importer/bank.​

Necessity:

1.​ Proof of shipment.​

2.​ Title document – can be used to claim goods.​

 3.​ Required for payment under L/C.​

5. Marine Insurance Policy

Definition:​
Insurance document covering loss or damage to goods during sea transit.

Contents:

1.​ Name of insured (exporter/importer)​

2.​ Policy number & date​

3.​ Description of goods and voyage​

4.​ Sum insured​

5.​ Coverage terms (e.g., ICC-A, ICC-B, ICC-C)​

6.​ Premium paid​

7.​ Claims procedure​

Procedure to prepare:

1.​ Contact insurance company/agent.​

2.​ Provide shipment details and value.​

3.​ Agree on coverage terms and pay premium.​

4.​ Receive policy document before shipment.​

Necessity:

1.​ Protects against transit risks.​

2.​ May be mandatory under contract or L/C.​

6. Certificate of Origin (COO)

Definition:​
Document certifying the country in which goods were manufactured.

Contents:

1.​ Exporter & consignee details​

2.​ Description of goods & HS codes​

3.​ Country of origin statement​

4.​ Issuing authority’s certification & seal​

5.​ Date and signature​

Procedure to prepare:

1.​ Fill application to Chamber of Commerce or relevant authority.​

2.​ Attach supporting documents (invoice, packing list).​

3.​ Authority verifies and issues COO.​

Necessity:

1.​ Required for customs clearance.​

2.​ Determines eligibility for preferential tariffs under trade agreements.​

7. Letter of Credit (L/C)

Definition:​
A written undertaking by a bank to pay the exporter if they present
compliant documents within a specified time.

Contents:

1.​ L/C number, date, expiry​

2.​ Amount & currency​

3.​ Applicant (importer) & beneficiary (exporter)​

 4.​ Terms of shipment​

5.​ List of required documents​

6.​ Incoterms​

7.​ Advising & issuing banks​

Procedure to prepare:

1.​ Importer applies to bank for L/C.​

2.​ Bank issues L/C to exporter’s bank.​

3.​ Exporter ships goods and submits required documents.​

4.​ Bank verifies documents and releases payment.​

Necessity:

1.​ Reduces payment risk in international trade.​

2.​ Ensures compliance with contract terms.​

8. Documents Against Acceptance (D/A)

Definition:​
A payment method where documents are released to the importer only after
they accept a Bill of Exchange promising future payment.

Contents:

1.​ Bill of Exchange with due date​

2.​ Shipping documents (invoice, B/L, etc.)​

3.​ Terms of acceptance​

Procedure to prepare:

1.​ Exporter ships goods.​

 2.​ Bank sends documents to importer’s bank.​

3.​ Importer accepts draft (promises to pay later).​

4.​ Documents handed over to importer.​

Necessity:

1.​ Allows importer credit period.​

2.​ Safer than open account but riskier than L/C.​

9. Documents Against Payment (D/P)

Definition:​
Payment method where shipping documents are released to the importer
only after they pay immediately.

Contents:

1.​ Invoice, B/L, packing list, etc.​

2.​ Collection instruction from exporter’s bank​

Procedure to prepare:

1.​ Exporter ships goods.​

2.​ Bank sends documents to importer’s bank with payment instruction.​

3.​ Importer pays to receive documents.​

Necessity:

1.​ Ensures exporter gets paid before importer gets goods.​

10. Import Duty

Definition:​
Tax levied by a country’s customs authority on imported goods.
Contents:

1.​ Tariff rate (percentage or fixed)​

2.​ HS code classification​

3.​ Customs valuation basis​

Procedure to prepare (for payment):

1.​ Determine HS code and duty rate.​

2.​ Declare value to customs.​

3.​ Pay duty before goods are released.​

Necessity:

1.​ Revenue source for governments.​

2.​ Protects domestic industries.​

11. Importer Exporter Code (IEC)

Definition:​
A unique business identification number issued by the DGFT (in India) for
anyone involved in import or export.

Contents:

1.​ IEC number​

2.​ Business details​

3.​ Issuing authority info​

Procedure to prepare:

1.​ Apply online to DGFT with business documents (PAN, bank details).​

2.​ Pay application fee.​

 3.​ Receive IEC electronically.​

Necessity:

1.​ Mandatory for customs clearance in India.​

2.​ Needed for sending/receiving remittances for trade.​

STAGE 3:

After getting export order from the desired country, Export House
enters into a contract with it. Once the order has been received, the export
order is scrutinized with reference to the terms & conditions of the export
contract. This is the most crucial stage. All subsequent actions and reactions
will depend on these terms & conditions.

It is ensured that contract has been entered into in accordance with the
prevalent export policies of the country and Foreign Exchange Regulations
like FERA and FEMA.
STAGE 4:

As soon as the export order has been confirmed, preparations for

the dispatch of Export Consignment (Goods for Exports) are started. After
Agreement, the manufacturing order is sent to the production manager by
the marketing department of Export House. This order contains the
description of Export Consignment (Goods for Exports) as has been given in
the export order, alongwith the copy of the instructions given by the
importer. The date by which the Export Consignment (Goods for Exports)
must ready is clearly intimated to the production manager and advice the
material procurement for assuring the availability of the items required for
the Export Consignment (Goods for Exports) on the basis of work order,
manufacturing starts.

STAGE 5 :

After manufacturing, inspection is carried out by the quality

assurance deptt. of CHMONG, as final inspection is done by the IMPORTER, if
the importer so desires.

STAGE 6 :
 As soon as the Export Consignment (Goods for Exports) are
manufactured, production manager informs the marketing department

that the goods are ready to dispatch. At this stage, two important documents
are to be prepared :-

●​ ARE 1 form

●​ CT 1 form

ARE 1 form is prepared in quantiplicate and CT 1 form is prepared in quadra

duplicate. CT forms are issued by the exise department. ARE1 forms are
presented to the Range Superintendent of Central Exise , who after necessary
formalities signs all the copies. The original & duplicate copies are given back
to the exporter. The triplicate copy is sent to the maritime collector, fourth
copy is sent to the Chief Accounts Officer & the remaining copy is kept by the
office of Range Superintendent.

The other authority which the export department approaches

immediately at this stage is the Export Inspection Agency for conducting
Quality & Pre-Shipment Inspection. An inspector is deputed by the Inspection
Agency to inspect the consignment. If the Export Consignment (Goods for
Exports) are confirmed to the prescribed specifications, an Inspection
Certificate is issued.

The Export Consignment (Goods for Exports) are then dispatched to the port
of shipment.

STAGE 7:
 After the Export Consignment (Goods for Exports) have been
dispatched to the port of loading, a dispatch advice is sent to the export
department. Soon after an application is sent to the Insurance Company for
Marine Insurance Cover. The

Insurance policy is obtained in duplicate.

At this stage all formalities in relation to ECGC cover, Certificate of Origin,

Consular Invoice etc. wherever necessary is completed.

Thereafter the export department sends the following documents to its

clearing & forwarding agent along with detailed instructions:-

●​ Commercial Invoice

●​ Original Export Order

●​ Original Letter Of Credit

●​ ARE1 form (original & duplicate copies)

●​ Excise Gate Pass

●​ Packing List

●​ Certificate of Inspections

●​ Declaration Form in Triplicate

●​ Consular Invoice

●​ Export License

●​ Railway Receipt

These concepts are explained below : -

Commercial Invoice
What it is​
It is a bill from the seller to the buyer.​
It shows what was sold.​
It shows the price.​
It shows payment terms.

Why it matters​
Customs uses it to check value.​
Banks use it to pay money.​
The buyer uses it to match the order.

Who makes it​

The exporter (the seller) makes it.

When to make it​

After packing the goods.​
Before shipping.​
Match it with the order and the Letter of Credit.

What it includes​
Exporter name and address.​
Buyer name and address.​
Invoice number and date.​
Order number or LC number.​
Goods description (plain and clear).​
Quantity and unit (like pieces, kg).​
Unit price and total price.​
Currency (USD, EUR, etc.).​
Incoterms and place (like FOB Mumbai).​
Delivery terms and shipment date.​
Country of origin of goods.​
HS code (customs code).​
Bank details for payment.​
Signature.

Tips​
Use simple names for goods.​
Avoid short codes that others will not know.​
Check math twice.​
Make sure currency is correct.​
Keep invoice numbers in order.

Mini example​
Invoice No: INV‑1045, Date: 02‑Aug‑2025​
Buyer: ABC Ltd., London​
Goods: Cotton T‑Shirts, 1000 pcs​
Price: USD 2.50 per piece​
Total: USD 2,500​
Terms: FOB Mumbai, Payment under LC No. 12345

Original Export Order

What it is​
It is the buyer’s written request to buy.​
It is also called a Purchase Order (PO).​
Sometimes it is a simple contract.

Why it matters​
It shows what the buyer wants.​
It fixes price, quality, and time.

Who issues it​

The foreign buyer issues it.

What it includes​
PO number and date.​
Buyer and seller details.​
Product specs.​
Quantity.​
Unit price and total price.​
Delivery date and place.​
Payment terms (like LC, advance).​
Packing and marking needs.​
Documents needed from seller.

How to use it​

Read every line.​
Clear any doubt in writing.​
Make all later papers match this order.

Original Letter of Credit (LC)

What it is​
It is a bank’s promise to pay the seller.​
The bank pays if papers match LC terms.​
It cuts the risk for both sides.
Who is involved​
Applicant: the buyer.​
Issuing bank: the buyer’s bank.​
Beneficiary: the seller (you).​
Advising bank: your bank.​
Confirming bank: a bank that adds its own guarantee (sometimes).

Main LC types​
Sight LC: bank pays after checking papers.​
Usance LC: bank pays after some days.​
Confirmed LC: a second bank also guarantees.​
Unconfirmed LC: only the buyer’s bank guarantees.

Key LC terms to read​

Last shipment date.​
Latest date to present documents.​
Port of loading and discharge.​
Allowed documents (invoice, packing list, etc.).​
Exact goods description.​
Bill of lading or airway bill needs.​
Insurance needs (if any).​
Tolerance on quantity or amount.

How to work with an LC​

Ask for LC terms that match your deal.​
When LC arrives, check every word.​
If any term is hard, request an LC amendment.​
Ship only after the LC is correct.​
Prepare papers exactly as the LC says.

Common mistakes​
Wrong dates.​
Spelling not the same as LC.​
Numbers do not match.​
Missing signature or stamp.

ARE‑1 Form (Original & Duplicate Copies)

What it is​
Full name: Application for Removal of Excisable goods for Export.​
It was used under the Central Excise system.​
It shows that goods left the factory for export.​
It helps claim duty rebate or export without duty.
When it is used​
For factory shipments meant for export.​
Used before GST in many places.​
Some legacy or special cases may still ask for it.

Copies​
Original copy: travels with the goods to Customs.​
Duplicate copy: kept by the exporter for proof.​
(Other copies existed in the old system.​
Here we focus on original and duplicate, as asked.)

What it includes​
Exporter and factory details.​
Description of goods.​
Quantity and number of packages.​
Marks and numbers on packages.​
Duty details (paid or bond).​
Vehicle or rail details.​
Shipping bill reference (when known).​
Signatures of factory and officers.

How to use​
Fill all boxes clearly.​
Make sure numbers match the packing list.​
Get the needed officer’s signature or seal.​
Send the original with the cargo.​
Keep the duplicate safe for records and claims.

Tip​
Write simple names for goods.​
Avoid short forms that officers may not know.

Excise Gate Pass

What it is​
It is a paper that showed excise duty status.​
It was made when goods left the factory gate.​
It linked the factory, tax office, and buyer.

When it is used​
It was used under the old Excise rules.​
Some old contracts or audits may ask to see it.

What it includes​
Factory details.​
Goods description and quantity.​
Duty paid or removed under bond.​
Date and time of removal.​
Vehicle or rail details.​
Signatures.

Note​
Under newer tax systems, other forms are used.​
But you should still understand this for history and checks.

Packing List
What it is​
It is a list of what is inside each package.​
It is not a price paper.​
It is a contents paper.

Why it matters​
Customs checks quantity with it.​
The buyer uses it to unpack.​
It helps find missing items.

Who makes it​

The exporter makes it.

What it includes​
Exporter and buyer details.​
Invoice number and date.​
Total packages.​
For each package: number, size, and weight.​
For each item: description and quantity.​
Gross weight and net weight.​
Marks and numbers on packages.

Tips​
Number boxes clearly.​
Use the same numbers on the boxes and on the list.​
Do not show prices here.

Mini example line​

Package No. 3: 200 T‑Shirts, Net 18 kg, Gross 21 kg.

Certificate of Inspection
What it is​
It is a paper from an inspection body.​
It says the goods meet set quality rules.​
It may also check quantity and packing.

Who issues it​

A government agency or a trusted company.​
It can be named by the buyer or by law.

When needed​
If the LC asks for it.​
If the buyer or government demands it.​
For sensitive goods, like food or safety items.

What it includes​
Who inspected.​
Date and place of inspection.​
Goods description and batch details.​
Standards used for checks.​
Result: passed or failed.​
Any remarks on defects.

Tip​
Plan inspection early.​
Share your specs in writing.​
Keep samples and photos as proof.

Declaration Form in Triplicate

What it is​
It is a statement made by the exporter.​
It is made in three copies.​
Triplicate means three sets.

Why it matters​
It declares that details are true.​
It declares that export rules are followed.​
It supports customs and bank records.

Who gets the copies​

One copy goes to Customs.​
One copy goes to the bank or office named.​
One copy stays with the exporter.
What it includes​
Exporter details.​
Invoice and shipment details.​
Description, quantity, and value of goods.​
Country of destination.​
Undertaking that the facts are true.​
Signature and date.

Tip​
All three copies must match exactly.​
Use carbon copies or print from one file.

Consular Invoice
What it is​
It is a special invoice.​
It is on a form from the Consulate of the importing country.​
The Consulate is the buyer’s country office in your country.​
They stamp or sign this invoice.

Why it matters​
Some countries ask for it to set customs duty.​
It fights under‑invoicing and fraud.

Who prepares it​

The exporter fills the form.​
The Consulate checks and certifies it.

What it includes​
Exporter and buyer details.​
Goods description, quantity, and value.​
Origin of goods.​
Shipping marks and packages.​
Any oath or declaration asked by that country.

Tips​
Ask the Consulate for the latest form.​
Book an appointment if needed.​
Carry your commercial invoice and ID.

Export License
What it is​
It is a permit to export certain goods.​
Some goods are free.​
Some goods are restricted.​
Restricted goods need a license.

Who gives it​

A government trade office or authority.​
The exact name differs by country.

When you need it​

If your product is on the restricted list.​
If your buyer’s country needs a license.​
If the LC or contract asks for it.

What it includes​
Exporter and product details.​
Allowed quantity and value.​
Validity dates.​
Destination country.​
Any special conditions.

Tips​
Apply early.​
Attach product specs and safety papers.​
Ship only within the valid dates.​
Keep a copy for audits.

Railway Receipt (R/R)

What it is​
It is a paper from the railway.​
It proves that the railway got your goods.​
It is like a title paper for rail cargo.

Why it matters​
You can use it to claim the goods at the port.​
Banks may ask for it under LC.​
It shows freight paid or to pay.

Who issues it​

The railway issues it at the time of booking.

What it includes​
Consignor (sender) name.​
Consignee (receiver) name.​
Station of origin and station of delivery.​
Number of packages.​
Weight.​
Description of goods.​
Marks and numbers.​
Freight paid or to pay.​
Date and R/R number.

Tips​
Check names and stations.​
Keep it safe.​
Endorse it correctly if the bank needs it.

How these papers connect (simple flow)

1.​ Buyer sends the Export Order.​

2.​ Buyer opens the Letter of Credit (if used).​

3.​ Exporter gets license (if needed).​

4.​ Exporter plans inspection (if needed).​

5.​ Exporter prepares goods and packs.​

6.​ Exporter makes the Packing List.​

7.​ Exporter makes the Commercial Invoice.​

8.​ For factory export, exporter prepares ARE‑1 and Excise Gate Pass
(legacy cases).​

9.​ Exporter books rail and gets Railway Receipt (if using rail).​

10.​ Exporter gets Consular Invoice (if the buyer’s country wants it).​

11.​ Exporter signs Declaration Form in triplicate.​

12.​ Exporter files at Customs and ships.​

Quick checklists
Commercial Invoice – must have​
Invoice no. and date.​
Buyer and seller.​
Goods, quantity, price, currency.​
Incoterms place.​
Country of origin.​
HS code.​
Signature.

Packing List – must have​

Package numbers.​
Item list per package.​
Net and gross weight.​
Marks and numbers.

LC – read these first​

Shipment last date.​
Presentation last date.​
Exact goods text.​
Required documents.​
Ports and places.

ARE‑1 and Excise Gate Pass​

Right product names.​
Right quantities.​
Right vehicle or rail details.​
Proper officer stamps (if needed).

Inspection / Consular / License​

Know if they are needed.​
Apply early.​
Carry base papers (invoice, order, IDs).

Railway Receipt​
Correct consignor and consignee.​
Right stations.​
Right number of packages.​
Freight noted.

Self‑test (short)
1.​ What is the main use of a Commercial Invoice?​
2.​ Name two dates in an LC you must check.​

3.​ What does a Packing List never show?​

4.​ What is the role of the Consular Invoice?​

5.​ Why are three copies made in a Declaration Form?

STAGE 8:

The Clearing & forwarding agent takes the delivery of the consignment
from the railways & arranges its storage & warehouse. Thereafter the agent
prepares the requisites copy of shipping bill.
STAGE 9:

After the shipping bill has been prepared & passed by the customs, the
Clearing & forwarding

agent presents the port trust copy of the shipping bill to the shed
superintendent of the port trust & obtain carting order for bringing the
export cargo in the transit shed for physical examination. Thereafter, in the
case of shed cargo, the dock challan is prepared. The following details are
given in the dock challan:-

●​ Consignee’s name & address

●​ Vessel name

●​ Port of destination

●​ Exporter’s name

●​ Mark & No. of packages

●​ Gross weight

●​ Port charges payable

●​ Other details as necessary

STAGE 10:

The ship clerk calls for cargo from shed & after loading prepares the
mate’s receipt. The mate’s receipt is signed by the captain of the ship. It is
then delivered to the port commissioner’s shed. The clearing & forwarding
agent pays the port charges & takes the delivery of the mate’s receipt. This
mat’s receipt is then presented to the shipping company along with the
requisite no. of Bill of Lading.
STAGE 11:

The clearing & forwarding agent forwards the following documents to

the exporter:-

●​ Full set of Bill of Lading

●​ Shipping Bill

●​ Copies of Custom Invoice

●​ ARE1 form

●​ One copy of commercial Invoice duly attested by the customs

●​ Original Export order

●​ Original Letter of Credit

●​ Railway concession form duly attested by the customs

These are explained below: -

1) Full set of Bill of Lading (B/L)

What it is
It is a paper from the shipping line.​
It is proof that they took your goods.​
It is a receipt.​
It is also a title paper.​
The person who holds the original B/L can claim the goods.

Why it matters
Banks need it to pay under LC.​
The buyer needs it to take delivery at the port.​
It shows terms of carriage.
Who issues it
The ocean carrier or its agent.​
Sometimes a freight forwarder issues a “House B/L”.

When you get it

After you load the container on the ship.​
First you get a draft B/L.​
You check it.​
Then the line prints the originals.

“Full set” means

Usually 3 original B/Ls.​
Plus a few non‑negotiable copies.​
Any 1 original can release the cargo.​
If 1 original is used, the others become void.

Main contents (check these)

1.​ Shipper (your firm)​

2.​ Consignee (buyer or “to order”)​

3.​ Notify party (who gets arrival info)​

4.​ Vessel name and voyage number​

5.​ Port of loading and port of discharge​

6.​ Final destination (if any)​

7.​ Marks and numbers on packages​

8.​ Number and type of packages​

9.​ Goods description (match invoice and packing list)​

10.​ HS code (if shown)​

11.​ Gross weight and volume​

12.​ Container and seal numbers​

13.​ Freight terms (Prepaid/Collect)​

 14.​ Incoterm (e.g., FOB, CIF)​

15.​ Place and date of issue​

16.​ Original count (e.g., “Three (3) originals issued”)​

Types you will hear

1.​ Straight B/L: Consignee is named. Not negotiable.​

2.​ Order B/L: “To order”. Negotiable. Needs endorsement.​

3.​ Sea Waybill: No originals. Not negotiable. Only proof of receipt.​

4.​ Telex release: Paperless release after surrender of originals at origin.​

How to check before printing

1.​ Names and addresses correct.​

2.​ Spelling of vessel and ports correct.​

3.​ Container numbers correct.​

4.​ Cargo details match the invoice and packing list.​

5.​ LC conditions (if any) match.​

6.​ If “to order”, endorsement rules are clear.​

Common mistakes
Wrong consignee name.​
Wrong container number.​
Wrong weight.​
Wrong freight term.​
Unclear marks.​
B/L printed before final check.

2) Shipping Bill (Export Declaration)

What it is
It is the main export paper for customs at the port.​
It is your legal declaration.​
It tells customs what you export and under which scheme.

Why it matters
Goods cannot legally leave without it.​
It links to taxes, incentives, and export data.​
It is needed for remittance proof later.

Who issues it
You file it in the Customs system (through your customs broker).​
Customs processes it.​
Customs gives you the Shipping Bill number and copies.

When you file it

Before export gate entry.​
Usually after packing and before cargo moves into port.

Key data inside

1.​ Exporter details and IEC (if in India)​

2.​ Buyer details​

3.​ Invoice number and date​

4.​ Item description and HS Code​

5.​ Quantity, unit, gross and net weight​

6.​ Value and currency​

7.​ Incoterms​

8.​ Port of loading and destination country​

9.​ Drawback/benefit scheme (if any)​

10.​ LUT/Bond reference (if applicable)​

11.​ GST/Tax details (where relevant)​

12.​ Supporting documents list​

Variants you may hear
1.​ Free Shipping Bill (no claim)​

2.​ Drawback/ROSCTL/other incentive Shipping Bill​

3.​ Bond/LUT Shipping Bill (no tax payment on export)​

4.​ SEZ/EOU types​

Your broker will select the right type.​

Common mistakes
Wrong HS code.​
Wrong incentive selection.​
Mismatch of value with invoice.​
Wrong net/gross weight.​
Invoice or packing list not attached.

3) Copies of Customs Invoice (often called

“Customs Invoice”)
What it is
It is an invoice format made for customs use.​
Some countries ask for this special invoice.​
It helps customs check value and duty in the buyer’s country.

Why it matters
It speeds clearance at destination.​
It avoids questions on value and origin.

Who makes it
You, the exporter.​
You prepare it in the format asked by the buyer or their customs.

What it contains (simple but complete)

1.​ Seller and buyer details​

2.​ Invoice number and date​

3.​ Purchase order or LC number (if any)​

 4.​ Goods description and HS code​

5.​ Quantity and unit price​

6.​ Total value and currency​

7.​ Incoterm and named place​

8.​ Country of origin of goods​

9.​ Packing details and weights​

10.​ Transport mode and shipment details​

11.​ Declaration statement and your signature​

How many copies

Send the number asked by the buyer or by LC.​
Keep a copy for your file.

Common mistakes
Values not matching the Commercial Invoice.​
Missing HS code or origin.​
Wrong Incoterm.​
No signature when required.

4) ARE‑1 form (Export under Bond/LUT/Excise)

What it is
It is a form used to remove goods for export without paying certain duties.​
It links the factory, customs, and the exporter.​
It proves that the goods left the country.

Why it matters
It helps you claim duty rebate or exemption as per rules.​
It is evidence that the export actually happened.

Who prepares it
The manufacturer or exporter.​
It is certified by the proper officer as per the rule in force.​
(Names of officers and systems can change over time.)
Main parts
1.​ Exporter/manufacturer details​

2.​ Description of goods​

3.​ Quantity and value​

4.​ Duty details or bond/LUT reference​

5.​ Vehicle/container details​

6.​ Port of export​

7.​ Certificate of examination and sealing (by officer)​

8.​ Certificate of export (after shipment)​

Simple flow
1.​ Prepare ARE‑1 with invoice and packing list.​

2.​ Get verification/sealing as per rule.​

3.​ Send cargo to port.​

4.​ After export, get proof of export noted on the form.​

5.​ Use it to support your rebate or compliance file.​

Common mistakes
Not linking ARE‑1 to the actual Shipping Bill.​
Mismatch in description or quantity.​
No officer endorsement where required.​
Late follow‑up for proof of export.

5) One copy of Commercial Invoice attested by

Customs
What it is
It is your normal sales invoice.​
But it carries a customs stamp and signature.​
This shows customs saw it during clearance.

Why it matters
Banks, buyers, or railway/other authorities may ask this as proof.​
It supports claims and transport concessions.

Who stamps it
A customs officer at the port or the export processing location.​
Ask your broker when and where to get it stamped.

When to do it
At the time of shipping bill processing or examination.​
Carry one extra original invoice for stamping.

What to check
Invoice number and date match the Shipping Bill.​
Values add up.​
Currency is correct.​
HS code and description match.​
Sign and stamp are clear and dated.

Common mistakes
Going to customs without spare invoice copy.​
Wrong invoice version.​
Illegible stamp.

6) Original Export Order (Purchase Order /

Contract)
What it is
It is the buyer’s written order.​
It is also called a Purchase Order (PO) or Sales Contract.​
It is the base promise to buy.

Why it matters
It shows what to supply.​
It shows price, quantity, quality, and timing.​
It links to payment terms.​
It supports bank and customs queries.
Who issues it
The foreign buyer.​
Sometimes both parties sign a contract.

Key points inside

1.​ Product name and clear specs​

2.​ Quantity and tolerances​

3.​ Price and currency​

4.​ Incoterm and named place (e.g., CIF Hamburg)​

5.​ Delivery schedule​

6.​ Packing and marking rules​

7.​ Quality standards and inspection terms​

8.​ Documents needed (B/L, CO, insurance, etc.)​

9.​ Payment terms (advance, LC, DA/DP)​

10.​ Warranty or claim rules​

11.​ Jurisdiction or dispute method (if any)​

What you should do

Read it slowly.​
Match it with your invoice.​
Match it with the LC (if there is one).​
Raise questions before shipment.

Common mistakes
Accepting unclear specs.​
Ignoring packing rules.​
Skipping inspection terms.​
PO and LC say different things.

7) Original Letter of Credit (LC)

What it is
It is a promise from a bank to pay you.​
The bank acts for the buyer.​
The bank pays if you present correct documents in time.

Main parties
1.​ Applicant: the buyer who asks for the LC.​

2.​ Issuing Bank: the buyer’s bank that issues the LC.​

3.​ Beneficiary: you, the exporter.​

4.​ Advising Bank: your bank that informs you of the LC.​

5.​ Confirming Bank (optional): a bank that adds its own guarantee.​

Why it matters
It reduces payment risk.​
It tells you which documents to prepare.​
It fixes last dates.

Key LC terms to check

1.​ LC number and date​

2.​ Amount and currency​

3.​ Latest shipment date​

4.​ Expiry date and place of expiry​

5.​ Port of loading and discharge​

6.​ Partial shipment allowed or not​

7.​ Transshipment allowed or not​

8.​ Required documents (B/L type, invoice copies, packing list, COO,
insurance, etc.)​

9.​ Document presentation period (e.g., within 21 days of shipment)​

10.​ Incoterms and insurance terms​

 11.​ Any special clause (e.g., third‑party inspection)​

Simple workflow
1.​ Read the LC fully.​

2.​ Ask for amendment if anything is impossible.​

3.​ Ship exactly as per LC.​

4.​ Get documents as per LC.​

5.​ Present documents to bank before expiry.​

6.​ Bank checks and sends to issuing bank.​

7.​ If all good, payment is made.​

Common discrepancies (avoid these)

Wrong consignee on B/L.​
Late shipment or late presentation.​
Amounts differ across documents.​
Spelling mistakes in names.​
Missing required certificate.​
Dates not matching.​
Unsigned documents when signature is required.

8) Railway Concession Form attested by Customs

What it is
It is a form to get freight concession for export cargo moved by rail.​
Railway may give lower freight if cargo is for export.​
Customs attests it to confirm the cargo is really for export.

Why it matters
It reduces inland transport cost.​
It links your rail movement to your export shipping bill.

Who prepares and who signs

You or your logistics agent prepare the form.​
Customs officer attests (stamps and signs).​
Railway accepts it to allow concession.

When to use
When you move export goods by rail to port or border.​
Ask the railway and customs about the current format.

What it includes
1.​ Exporter name and IEC (if in India)​

2.​ Origin station and destination (port ICD/CFS)​

3.​ Description of goods​

4.​ Number of packages and weight​

5.​ Related Shipping Bill number and date​

6.​ Train/railway receipt details​

7.​ Customs attestation​

Steps in simple words

1.​ Prepare the form with shipment facts.​

2.​ Attach copy of Shipping Bill and invoice.​

3.​ Go to customs for attestation.​

4.​ Submit to railway with your rail booking.​

5.​ Keep a copy for your accounts.​

Common mistakes
No link to Shipping Bill.​
Wrong weight or package count.​
Missing customs stamp.​
Submitting after dispatch.
How these papers connect (easy map)
1.​ Export Order / LC → tells you what to ship and which documents to
make.​

2.​ Commercial Invoice + Packing List → show value and contents.​

3.​ ARE‑1 (if applicable) → supports export without duty and future
rebate.​

4.​ Shipping Bill → legal export declaration at customs.​

5.​ Railway Concession Form → cheaper rail freight; needs customs

stamp.​

6.​ Bill of Lading (full set) → proof of shipment and title to goods.​

7.​ Customs Invoice copies → help foreign customs clear the cargo.​

8.​ One Commercial Invoice attested by Customs → proof that customs

saw your invoice.​

Quick checklists
Before cargo leaves your factory
1.​ Export Order or Contract on file​

2.​ LC received and read (if used)​

3.​ ARE‑1 prepared (if required)​

4.​ Commercial Invoice and Packing List ready​

5.​ HS codes checked​

6.​ Marks and numbers printed on packages​

Before customs filing

1.​ Shipping Bill draft ready​
 2.​ All values and weights match invoice and packing list​

3.​ Incentive scheme, if any, correctly selected​

4.​ Supporting papers attached​

After loading / at shipping line

1.​ Draft B/L checked line by line​

2.​ Corrections sent quickly​

3.​ Full set of originals printed and counted​

4.​ If telex release, confirm surrender process​

Banking
1.​ Documents match LC terms​

2.​ Present within time limits​

3.​ Keep copies of everything​

Rail concession (if used)

1.​ Form filled and linked to Shipping Bill​

2.​ Customs attestation done​

3.​ Submit to railway with booking​

Simple examples (mini samples)

Example B/L line items
1.​ Consignee: “To Order of XYZ Bank”​

2.​ Notify: ABC Imports Ltd., Hamburg, Germany​

3.​ Description: “Cotton T‑Shirts, 100% cotton, knitted”​

 4.​ Packages: “500 cartons”​

5.​ Weight: “Gross 5,000 kg”​

6.​ Container: “TGHU1234567 / Seal 987654”​

7.​ Freight: “Freight Prepaid”​

8.​ Place/date: “Mumbai, 10‑Aug‑2025”​

Example Commercial Invoice lines

1.​ Item: “Cotton T‑Shirts, Style 1234”​

2.​ HS Code: “6109.10”​

3.​ Qty: “10,000 pcs”​

4.​ Unit Price: “USD 1.80/pc”​

5.​ Total: “USD 18,000.00”​

6.​ Incoterm: “FOB Nhava Sheva, Incoterms 2020”​

7.​ Payment: “LC at sight”​

Example Shipping Bill notes

1.​ Scheme: “None (Free)”​

2.​ Country of Destination: “Germany”​

3.​ LUT/Bond: “Not applicable”​

4.​ Incentive: “No Drawback claimed”​

Tips to avoid problems

1.​ Keep names, numbers, and dates the same on all papers.​

2.​ Use the same descriptions everywhere.​

 3.​ Check HS codes before you file.​

4.​ Keep copies (physical and digital).​

5.​ Read the LC and the PO again before shipment.​

6.​ Fix errors in the draft stage.​

7.​ Do not ship if documents are not clear.​

One‑page recap
1.​ Full set B/L: Carrier’s receipt and title. Usually 3 originals.​

2.​ Shipping Bill: Legal export declaration at customs.​

3.​ Customs Invoice copies: For destination customs.​

4.​ ARE‑1: For export under bond/LUT; supports duty relief.​

5.​ Commercial Invoice attested by customs: Stamped copy as proof.​

6.​ Original Export Order: Buyer’s order; base contract.​

7.​ Original LC: Bank promise to pay if documents are correct.​

8.​ Railway Concession form (customs‑attested): Lower rail freight for

export cargo.​
STAGE 12:

As,soon as the exporter (Export House) receives the above documents

from the clearing& forwarding agent, completes the remaining formalities.
The exporter files a claim with maritime collector of Central Excise in the
port town for rebate of Central Excise duty, side by side, shipment advice is
sent to the importer. The following documents are forwarded along with the
shipment advice:-

●​ A non negotiable copy of the Bill of Lading

●​ Customs Invoice

●​ Commercial Invoice

●​ Packing list

●​ Certificate of Origin

●​ Single country declaration

STAGE 13:

The following documents are presented to the

negotiating bank:-
 ●​ ARE 1 form (Duplicate copy)

●​ Bill of Exchange

●​ Full set of Bill of Lading (All the negotiating copies)

●​ Letter of Credit (original)

●​ Commercial Invoice (Two copies)

●​ Custom Invoice (2 copies)

●​ Packing list (2 copies)

●​ Certificate of Origin (2 copies)

●​ Marine Insurance certificate (2 copies)

●​ Bank Realisation Certificate (2 copies)

1. ARE 1 Form (Duplicate copy)

What it is:

1.​ A government form used in India for export of goods without paying
GST at the time of export.​

2.​ Shows details of goods, exporter, importer, and tax status.​

3.​ “Duplicate copy” is sent to the bank and customs for record.​

Process:

1.​ Exporter fills ARE 1 form.​

2.​ Customs checks and signs it.​

3.​ One copy goes to the bank for payment negotiation.​

Why bank needs it:

1.​ To confirm goods were exported legally.​

 2.​ To verify export is eligible for tax benefits.​

2. Bill of Exchange
What it is:

1.​ A written order from exporter to importer.​

2.​ Says importer must pay a certain amount on a certain date.​

3.​ Can be at sight (pay immediately) or usance (pay later).​

Process:

1.​ Exporter prepares and signs it.​

2.​ Given to the bank with other shipping documents.​

Why bank needs it:

1.​ This is the bank’s legal proof that payment is due from importer.​

3. Full set of Bill of Lading (All negotiating copies)

What it is:

1.​ Issued by the shipping company.​

2.​ Confirms goods have been loaded on the ship.​

3.​ States where goods will go, ship name, and consignee details.​

Process:

1.​ Exporter gets full set (usually 3 originals).​

2.​ All originals are needed for the bank when negotiating under Letter
of Credit.​

Why bank needs it:

 1.​ Proof goods are shipped.​

2.​ Gives control over goods (importer needs original B/L to take
delivery).​

4. Letter of Credit (Original)

What it is:

1.​ A promise from importer’s bank to pay exporter if all terms are met.​

2.​ Contains details like amount, documents required, and shipment

deadline.​

Process:

1.​ Importer applies to their bank.​

2.​ Bank issues LC to exporter’s bank.​

Why bank needs it:

1.​ Bank checks all documents match the LC before paying.​

2.​ Ensures payment is guaranteed.​

5. Commercial Invoice (Two copies)

What it is:

1.​ Document showing price, quantity, and description of goods.​

2.​ Issued by exporter to importer.​

Process:

1.​ Prepared after goods are ready.​

2.​ Sent to bank along with shipping documents.​

Why bank needs it:

1.​ To verify amount payable.​

2.​ To check it matches Letter of Credit terms.​

6. Custom Invoice (2 copies)

What it is:

1.​ Invoice format required by customs authority of importing country.​

2.​ May have extra details like HS code, country of origin, and packing
marks.​

Process:

1.​ Exporter fills it as per importing country rules.​

Why bank needs it:

1.​ Some LCs demand a customs invoice.​

2.​ To ensure importer can clear goods at customs.​

7. Packing List (2 copies)

What it is:

1.​ Shows how goods are packed.​

2.​ Includes weight, dimensions, and package numbers.​

Process:

1.​ Exporter prepares it for shipping and customs.​

Why bank needs it:

1.​ To confirm goods match invoice.​

 2.​ Importer uses it for easy identification of goods.​

8. Certificate of Origin (2 copies)

What it is:

1.​ Confirms where the goods were made.​

2.​ Issued by Chamber of Commerce or authorized body.​

Process:

1.​ Exporter applies with proof of manufacture.​

2.​ Chamber signs and stamps it.​

Why bank needs it:

1.​ Required under trade agreements or LC terms.​

2.​ Helps importer get reduced customs duty.​

9. Marine Insurance Certificate (2 copies)

What it is:

1.​ Proof that goods are insured during sea transport.​

2.​ Shows value covered and risks insured.​

Process:

1.​ Exporter arranges insurance with an insurance company.​

2.​ Gets certificate after policy is issued.​

Why bank needs it:

1.​ To make sure goods are protected if damaged or lost.​

 2.​ Often required under LC.​

10. Bank Realisation Certificate (2 copies)

What it is:

1.​ Proof that export payment has been received in foreign currency.​

2.​ Issued by exporter’s bank after payment is credited.​

Process:

1.​ Exporter submits shipping bill and payment proof to bank.​

2.​ Bank issues BRC.​

Why bank needs it:

1.​ For government reporting.​

2.​ For exporter to claim incentives and comply with foreign exchange
laws.​

Summary: Why the Negotiating Bank Needs All These

1.​ To check that goods were shipped.​

2.​ To verify all LC conditions are met.​

3.​ To control the goods until payment is assured.​

4.​ To prove export is legal and eligible for incentives.​

5.​ To protect both exporter and importer in the trade process.

STAGE 14:

This is the last stage of export procedure. At this stage the bank
processes & negotiation is done in the following manner:-

​ The entire documents are scrutinized with reference to the terms &
conditions of the original Letter of Credit (In case of L/C payment
terms)

​ Thereafter a set of following documents is transmitted to the banker

of the importer by the first air mail followed by the second set of it
by the second air mail to ensure that in case the first is lost, the
importer can take the delivery of the consignment on the basis of
second set of documents. These set of documents are:-

●​ Bill of Exchange

●​ Negotiable bill of lading

●​ Commercial Invoice

●​ Customs Invoice

●​ Insurance policy

●​ Certificate of Origin

●​ Consular Invoice

●​ Packing list

The original copy of the bank certificate along with the attested copies , the
commercial invoice is returned to the exporter. The duplicate copy of the
bank certificate is forwarded to the office of the Director General of foreign
trade in the area.