Unit 3 - Export Procedure

Unit 3 - Export Procedure

1. Export Contract - means any purchase agreement, purchase order, invoice or similar arrangement or document evidencing any Export.

2. Forward Cover - A forward cover is a financial contract that locks in the exchange rate for a future foreign currency transaction to protect against exchange rate fluctuations.

3. Export Finance - financial services and products designed to facilitate international trade transactions, such as export loans and trade credit insurance.

   • Institutional Framework for Export Finance
     • (1) Pre-shipment Export Credit/ Packing Credit (RPC/PCFC)
     • (2) Post-shipment Export Credit – both in Foreign Currency (FCY) and Rupees

4. Excise Clearance - the official approval process by customs authorities for the release of goods subject to excise duties for import or export.

5. Pre-shipment Inspection - a quality control measure conducted before goods are shipped to ensure compliance with specifications, standards, and contractual agreements.

   • Methods of Pre-shipment Inspection
     • 1. Consignment-Wise inspection-
     • 2. In-process Quality Control
     • 3. Self-Certification

6. Marine Insurance - Marine insurance covers the loss/damage of ships, cargo, terminals, and includes any other means of transport by which goods are transferred,

7. Role of Clearing and Forwarding Agents - who provide assistance to get goods cleared through customs formalities, coordinate with the carrier and handle shipping and delivery

8. Shipping and Customs Formalities - involve the procedures and documentation required for the legal and regulatory clearance of goods for international transport.

   • Customs EDI System - EDI ensures the fast and reliable exchange of paperless data between computer systems doing business together

9. Negotiation of Documents - the process of submitting relevant documents to a bank and obtaining payment for goods under letter of credit or documentary collection

10. 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