Post-shipment Procedure
The post-shipment stage consists of the following steps:
(a) Submission of Documents by the C&F Agent to the Exporter: On the completion of the shipping procedure, the C&F agent submits the following documents to the exporter:
A copy of invoice duly attested by the customs.
Drawback copy of the shipping bill.
Export promotion copy of the shipping bill.
A full set of negotiable and non-negotiable copies of bill of lading.
The original L/C, export order or contract.
Duplicate copy of the ARE-I form.
(b) Shipment Advice to Importer: 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 the vessel, the destination. etc. He should send also send one Copy of non-negotiable bill of lading to the importer.
(c) Presentation of Documents to Bank for Negotiation: Submission of relevant documents to the bank and the process of getting the payment from the bank is called "Negotiation of the Documents.” and the documents are called 'Negotiable Set of Documents'. The set normally contains:
Bill of Exchange, Sight Draft or Usance Draft.
Full set of Bill of Lading or Airway Bill.
Original Letter of Credit.
Customs Invoice. Commercial Invoice including one copy duly certified by the Customs.
Packing List.
Foreign exchange declaration forms, GR/SOFTEX/PP forms in duplicate.
Exchange control copy of the Shipping Bill.
Certificate of Origin, GSP or APR Certificate, etc.
Marine Insurance Policy, in duplicate.
(d) Despatch of Documents: The bank negotiates these documents to the importer's bank in the manner as specified in the L/C. Before negotiating documents, the exporter's bank scrutinises them in order to ensure that formalities have been complied with and all documents are in order. The bank then sends the Bank Certificate and attested copies of commercial invoice to the exporter.
(e) Acceptance of Bill of Exchange: Bill of Exchange accompanied by the above documents is known as the Documentary Bill of Exchange. It is of two types:
Documents against Payment (Sight Drafts): In case of sight draft, the drawer instructs the bank to hand over the relevant documents to the importer only against payment.
Documents against Acceptance (Usance Draft): In case of usanc draft, the drawer instructs the bank to hand over the relevant documents to the importer against his 'acceptance' of the bill of exchange.
(f) Letter of Indemnity: The exporter can get immediate payment from his ban on the submission of documents by signing a letter of indemnity. By signing the letter of indemnity the exporter undertakes to indemnify the bank in the event non-receipt of payment from the importer along with accrued interests.
(g) Realisation of Export proceeds: On receiving the documentary bill of exchange, the importer releases payment in case of sight draft or accepts the usance draft undertaking to pay on maturity of the bill of exchange. The exporter's bank receives the payment through importer's bank and is credited to exporter's account.
(h) Processing of GR Form: On receiving the export proceeds, the exporter's (iv bank intimates the same to the RBI by recording the fact on the duplicate copy of GR. The RBI verifies the details in duplicate copy of GR with the original copy of GR received from the customs. If the details are found to be in order then the export transaction is treated to be completed.
(i) Realisation of Export Incentives: If the exporter is eligible for export incentives, then he should submit claim for the same accompanied by the bank certificate to the appropriate authority.
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How to obtain Phyto sanitary certificate. What is phytosanitary certification
How to obtain waiver on detention/ demurrage on imported goods/container from Shipping company/CFS
Transferability of Bill of Lading
Transhipment - A redefinition
Travelers to India under import duty exemption, Frequently Asked Questions Part 2
Triangular export
Triangular shipment
Types of Insurance Documents
Import General Manifest (IGM)
Importance of Bill of Lading
Introduction to this web site.
Is Airway bill a documents of title?
Is Customs House Agents (CHA ) required to be appointed mandatory?
Is DP terms of payment safe in export business?
Is Letter of Credit LC safe for an Importer?
Is ON BOARD CERTIFICATE required for LC negotiation
Who can inspect import cargo in US
Who decides shipping carrier on FOB shipments
Who gets benefits from this website?
Who is a ‘Manufacturer’ of excisable
Who is a prime banker to check authenticity of letter of credit?
Who is Stevedores
Who receives the amount of auctioned / resold imported unclaimed/un-cleared goods?
Why demurrage/detention waiver period is required at destination for import Transferability of Bill of Lading
Why do carriers balance weight and volume while charging freight amount in Exports?
How does CENVAT Credit work?
Why, best attention while preparing Export Invoice?
Is Letter of Credit LC safe for an Importer?
Is ON BOARD CERTIFICATE required for LC negotiation
What is said to contain in Bill of Lading.
Why does Palletization require?
Why labeling and marking in Export business?