Presentation on Export-Import Documentation and Risk Management in Export-Import Business
Role of Export Documentation
Export documentation plays a vital role in international marketing as it facilitates the smooth flow of goods and payments thereof across national frontiers. Exporters are required to follow certain formalities and procedures, using a number of documents.
Each of these documents serves a specific purpose and hence carries its own significance. A clear understanding of all documents and their purpose, how to prepare these, number of copies required, when and where to file, is a must for all export professionals.

Export Documentation in India
Export Documentation in India has evolved a great deal of interest since 1990.
Efforts are on, at a faster footing to streamline and modernize the system further.
Prior to 1990, documentation was manual and it lacked proper co-ordination.
The result was lot of delays and mistakes, rendering the task very clumsy, tiresome, repetitive, and truly frustrating.
India adopted the ADS (Aligned Documentation System) in 1991 which is the Internationally accepted documentation system
Export documentation is complex in nature as the number of documents to be filled-in is very large, so also is the number of the concerned authorities to whom the relevant documents to be submitted. It is, therefore, advisable to take the help of shipping and forwarding agents who will obtain and fill out the documents correctly as well as arrange for transportation.
There are buyers and exporters, buying agents, RBI, authorized dealers (where the exporter has his bank Account), buyer’s bank (foreign bank), DGFT, Customs and Port Authorities, VAT and Excise Authorities, EPC’s, Insurance Companies, Inspection Agencies, Clearing and Forwarding Agents, Shipping Companies/Airlines and Inland Carriers etc
Proper Documentation will ensure smooth sailing with the requirements of the above agencies and the resulting transaction will be a successful one.
Inaccurate or incomplete documentation will result in serious financial and goodwill losses.
Such losses can be completely avoided by understanding clearly the documentation requirements of all concerned parties and then meticulously planning to get the right documents in the right numbers, at the right places and at the right time.
Classification of Export Documents
Export Documents can be classified into following four categories:
(1) Commercial Documents
(2) Regulatory Documents
(3) Export Assistance Documents
(4) Documents Required by Importing Countries

(1) Commercial Documents: These documents are used by exporters/importers to discharge their respective legal and other incidental responsibilities under sales contract.
Commercial documents can be further sub-divided into:
(i) Principal Commercial Documents
(ii) Auxiliary Commercial Documents
(i) Principal Commercial Documents: These documents serves the following purposes:
(a) To effect physical transfer of goods and title of the goods from exporter to the buyer.
(b) To realize export sales proceeds.
Principal Documents include:
Commercial Invoice (and the invoice prescribed by the importer)
Packing list
Certificate of Inspection
Certificate of Insurance/Insurance Policy
Bill of Lading/Airway bill/Combined Transport Documents
Certificate of Origin
Bill of Exchange
Shipment Advice
(ii) Auxiliary Commercial Documents: These Documents are required to prepare /procure the principal commercial documents and include:
Proforma Invoice
Shipping Instructions
Insurance Declaration
Intimation for Inspection
Shipping Order
Mates Receipt
Application for Certificate of Origin
Letter to bank for negotiation /collection of documents
(2) Regulatory Documents: These are prescribed by various Government Departments/Bodies for compliance of formalities under relevant laws governing export transactions. These include:
(i) Exchange Control Declaration Form-GR Form
(ii) Freight Payment Certificate
(iii) Insurance Premium Payment Certificate
(iv) ARE I/ARE II Forms
(v) Shipping Bill/Bill of Export
(vi) Port Trust Copy of Shipping Bill/Export Application/Dock Challan
(vii) Receipt of Payment of Port Charges
(viii) Vehicle Ticket.