Tamilnadu Samacheer Kalvi 11th Commerce Notes Chapter 26 Export and Import Procedures Notes
→ Exports have attained greater importance in the contemporary world.
→ Developing countries like India, Bangladesh, South Korea and so on require substantial amount of foreign exchange in order to acquire machineries, equipment, raw materials, petroleum products, mineral resources, technical know-how, managerial talents and so on for their faster economic development.
→ Export and Import Bank which is one of the specialized financial institutions wholly owned by Government of India was set up in the year 1982 for financing, facilitating and promoting foreign trade of India.
→ Commercial banks provide financial assistance in two ways, namely, pre-shipment financial #assistance and post-shipment financial assistance.
→ Pre-Shipment Financial Assistance is the type of assistance given to enable exporters to purchase raw materials process them and create finished goods for the purpose of export.
→ Post-shipment financial assistance is an assistance granted in the form of advances on the basis of bills of exchange and shipping documents drawn under letters of credit.
→ An exporter has to fulfill the formalities given below to export the goods out of the country.
→ Exporter has to apply in Ayaat Niryatt Form 2A (ANF2A) to the Regional Authority of the Director General of Foreign Trade (DGFT) in the region where the registered office of the company is located.
→ An Exporter is required to obtain RCMC from Export Promotion Councils/Commodity Board/Development Authority in order to avail himself/herself of export incentives, concessions, and other facilities offered by Government.
→ Exporters steps into manufacturing and procuring of goods required by the importer.
→ Import regulation of foreign countries may require that all this import consignments must accompany a certificate of origin.
→ The exporter will send the goods over to port town by rail or by truck and endorse the Railway Receipt (R/R) or Lorry Receipt(L/R) to forwarding agent’s favour with necessary instructions.
→ A charter party is a formal agreement between ship owner and the exporter under which exporter hires an entire ship or a major part of ship either for a particular voyage or for a specific time period when the shipping is heavy.
→ There are three types of shipping bills for three different categories of goods namely, dutiable goods, duty-free goods and duty draw-back goods.
→ Mate’s Receipt is the document issued by the captain of the ship acknowledging the receipt of goods on board by him to the port of specified destination.
→ Bill of Lading, refers to a document signed by ship owner or to his agent mentioning that goods specified have been received and it would be delivered to the importer or his agent at the port of destination if good condition subject to terms and conditions mentioned therein.
→ The exporter prepares a commercial invoice in respect of the goods shipped in triplicate according to the terms and conditions agreed between the exporter and the importer.
→ Commission Agent is an international agent who is paid a certain percentage of commission for the order booked by him abroad.
→ Export Trading House has been established to increase the export, strengthen the global market, capacity and get necessary facilities for increasing export performance of our country.
→ Import trade refers to purchasing goods and service from a foreign country.
→ Consumers are able to use a wide variety of goods like cell phone, car, laptop, television, audio system, washing machine, perfume, soaps, etc., manufactured in foreign countries and enhance their standard of living through import trade.
→ During famine, earthquake, flood draught, tsunami, abnormal price-increase situations and so on food grains, vegetables and other essential commodities are imported from foreign countries and bad situation arising from the above situations are thus overcome.
→ Importer has to secure Import and Export Code (IEC) from the Director General of Foreign Trade or its Regional Authority.
→ Bill of Entry is prepared in triplicate in order to pay custom duty.
→ Clearing Agent is specialised in clearing the goods from the port of discharge destination , and transport it over to the importer.