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Introduction
• The exporting activity involves several commercial and regulatory
procedures.
• These procedures also involve considerable documentation
requirements.
• The export documentation involves the preparation of the specified
number of copies of the prescribed documents pertaining to the
different procedures.
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Preliminaries Steps
• IEC number the IEC numbers are normally allotted by the regional
licensing authorities
• Membership num registration : membership of certain bodies will
help the exporters in a number of ways
• Inquiry and offer : An inquiry is a request from a prospective
importer to be informed of the terms and conditions of sale
• Confirmation of order : Once the negotiation are completed and
conditions are acceptable to the buyer and seller, the buyer may
place and order with the exporter
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Preliminaries Steps
• Finance : If the exporter require preshipment financial assistance,
he should take the necessary steps to obtain it.
• Production/procurement of goods : Once the order is confirmed,
the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute
the export order promptly.
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Preliminaries Steps
• Shipping space : As soon as the export order is confirmed, the
exporter should contract the shipping companies which have
sailings for the port to which goods have to be sent and book the
required shipping space.
• Packing and marketing : once the goods are ready, they are packed
and marked properly.
• Quality control and pre-shipment inspection : Needless to say,
goods should be exported only after ensuring that they are of
proper quality.
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Exchange Control Formalities
• An exporter, who has sent goods outside the country, has the
obligation to satisfy the State Bank of Pakistan that he has received
payment from his overseas buyer.
• Make a declaration on the prescribed form to the Collector of
Customs that foreign exchange, representing the full export value of
goods, has been or will be disposed of in the manner and within the
period.
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Exchange Control Formalities
• Negotiate all shipping documents, including those relating to sales
on consignment basis, through authorized dealers.
• Receive payment by an approved method
• Surrender the foreign exchange received from exports to the
exchange control authority through authorized dealers.
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Shipping The Goods
Goods may be exported to foreign by sea, air, post, land or river.
1. Shipping by sea : To obtain the permission of the port authorities
for the movement of goods into the port, it is necessary to present
the cart ticket to the gate warden/inspector/keeper at the port
gate.
2. Shipping By Air : Shipping by air has become popular for such
products as commodities which are perishable and seasonal or
high in cost but low in bulk.
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Shipping The Goods
3. Shipping By Post : Shipping of goods may be effected by post,
subject to the foreign trade and foreign exchange regulations of
the country.
4. Shipping By Land : The procedure for the export of excisable goods
by land to countries like Afghanistan is, by and large, similar to the
one laid down for export by sea.
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Shipping Documents
Three sets of Documents prepare for Exporting Pharmaceutical finished
products.
1. For ADC (Additional Drug Controller)
2. For Bank
3. For Buyer (Party who imports your good)
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Documents For Banks
1. Commercial invoice
2. Packaging List
3. Certificate of Origin
4. Copies of PRC
5. GD1 (Good Declaration)
6. Bills of Transport(Airway, Shipping, Land)
7. Copies of Insurance Bill
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Regulatory (ADC) Documents
1. Commercial Invoices
2. COA (Certificate of Analysis)
3. Form A
4. Summary Report of Export Of Drug Product
5. Copies of Registration Certificate (Drug Registration Certificate)
6. Form E
7. Undertaking
8. NOC’s copies
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Documents for Buyers
1. Commercial Invoices
2. Packaging List
3. Form E
4. COA (Certificate of Analysis)
5. Certificate of Origin
6. NOC’s issued by ADC (Additional Drug Controller)
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Documents Related To Goods
1.Invoice :
An invoice is the seller’s bill for merchandise and contains particulars
of goods, such as the price per unit at a particular location, quantity,
total value, packing etc.
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Documents Related To Goods
2 .Packing Note and List :
Difference between a packing note and a packing list is that the
packing note refers to the particulars of the contents of an individual
pack, while the packing list is a consolidated statement of the contents
of a number of cases or packs.
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Documents Related To Goods
3. Certificate of origin :
A certificate of origin, as the name indicates, is a certificate which
specifies the country of the production of the goods.
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Certificates Related To Shipment
2.Shipping Bill :
The shipping bill is the main document on the basis of which the
Customs ‘ permission for export is given.
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Certificates Related To Shipment
3.Cart Ticket :
A cart ticket, also known as a cart chit, vehicle and gate pass, is
prepared by the exporter and includes details of the export cargo in
terms of the shipper’s name, the number of packages, the shipping bill
number, the port of destination and the number of the vehicle carrying
the cargo.
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Requirement to Export
1) NTN
National Tax Number Certificate, which is issued by the Income Tax
Department on filing of application form accompanied with one
attested copy of NIC.
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Requirement to Export
2) Sales Tax Registration
Commercial exporter is not required to register with Sales Tax
Department. But if you pay the sale tax on the goods from local market it will
be better for you to get yourself registered with sales tax department so that
you may claim your input tax deducting on your purchases. Once you are
registered in sales tax department you will be obliged to the monthly sales tax
return irrespective of the fact that you have been involved in any sales tax
activity or not. 3
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Requirement to Export
3) Bank Account
Current Bank Account is required for export proceedings and
documents.
4) Chamber Membership
Membership certificate of Chamber of Commerce and Industries
or any relevant trade association is required.
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Requirement to Export
5) Documents For Clearing Agent
Once the consignment, to be exported arrives at the port, usually a clearing
agent services are sought. The following documents are required to provide to
clearing agent to clear the consignment.
i) Packing List.
ii) Commercial Invoice.
iii) Letter of Credit (L/C).
iv) Certificate of Origin which is issued by Chamber of Commerce.
v) National Tax Number Certificate.
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Requirement to Export
6) Form “E”
Form “E” (State bank form): All exports from Pakistan which are subject to Foreign Exchange Regulations
are required to be declared on form „E‟ which is in sets of four copies each. The exporter should submit
the full set of Form „E‟ to the bank after it has been completed and signed by the exporter himself or
his authorized agent. While certifying Form „E‟, bank should ensure that exporters give only one
address in Form „E‟. After the form is certified by the bank, it should be submitted to the
Customs/Postal authorities at the time of shipment along with the shipping bill. The Customs
authorities will detach the original copy and after filling in the portion relating to them and affixing their
seal and signature thereon forward it to the State Bank. The Customs authorities will return the
duplicate, triplicate and quadruplicate copies to the exporter or his authorized agent who will retain the
quadruplicate for his own record and submit the duplicate and triplicate copies to the Authorized Dealer
along with the shipping documents within 14 days from the date of shipment.
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Requirement to Export
7) Submission of Export Documents to the bank
All shipping documents covering goods exported from Pakistan and
declared on Form E must be passed through the medium of bank
within 14 days from the date of shipment. The exporter must submit
the duplicate (bearing Customs seal and signature of Customs Officials
with Code number) and triplicate copies of Form E along with the
shipping documents, invoices etc., to the bank who had certified the
Form E. An extra copy of the shipper’s invoice must be attached to
the triplicate copy of the Form E.
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EXW (‘Ex Works’)
• The seller makes the goods available to be collected at their premises and
the buyer is responsible for all other risks, transportation costs, taxes and
duties from that point onwards. This term is commonly used when
quoting a price.
• Example Goods are being picked up by the buyer from the seller’s
premises in Birmingham. The term used in the contract is ‘EXW
Birmingham’.
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FCA (‘Free Carrier’)
• The seller gives the goods, cleared for export, to the buyer’s carrier at a
specified place. The buyer is then responsible for getting transported to
the specified place of final delivery. This term is commonly used for
containers travelling by more than one mode of transport.
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CPT (‘Carriage Paid To’)
• The seller pays to transport the goods to the specified destination.
Responsibility for the goods transfers to the buyer when the seller passes
them to the first carrier.
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CIP (‘Carriage and Insurance Paid’)
• The seller pays for insurance as well as transport to the specified
destination. Responsibility for the goods transfers to the buyer when the
seller passes them to the first carrier.
• CIP (‘Carriage and Insurance Paid’) is commonly used for goods being
transported by container by more than one mode of transport. If
transporting only by sea, CIF is often used (see below).
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DAT (‘Delivered at Terminal’)
• The seller pays for transport to a specified terminal at the agreed
destination. The buyer is responsible for the cost of importing the goods.
The buyer takes responsibility once the goods are unloaded at the
terminal.
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DAP (‘Delivered at Place’)
• The seller pays for transport to the specified destination, but the buyer
pays the cost of importing the goods. The seller takes responsibility for the
goods until they’re ready to be unloaded by the buyer.
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DDP/DTP (‘Delivered Duty Paid’)
• The seller is responsible for delivering the goods to the named destination
in the buyer’s country, including all costs involved.
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FAS (‘Free Alongside Ship’)
• The seller puts the goods alongside the ship at the specified port they’re
going to be shipped from. The seller must get the goods ready for export,
but the buyer is responsible for the cost and risk involved in loading them.
• This term is commonly used for heavy-lift or bulk cargo (e.g. generators,
boats), but not for goods transported in containers by more than one
mode of transport (FCA is usually used for this).
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FOB (‘Free on Board’)
• The seller must get the goods ready for export and load them onto the
specified ship. The buyer and seller share the costs and risks when the
goods are on board. This term is not used for goods transported in
containers by more than one mode of transport (FCA is usually used for
this).
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CFR (‘Cost and Freight’)
• The seller must pay the costs of bringing the goods to the specified port.
The buyer is responsible for risks when the goods are loaded onto the
ship.
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CIF (‘Cost, Insurance and Freight’)
• The seller must pay the costs of bringing the goods to the specified port.
They also pay for insurance. The buyer is responsible for risks when the
goods are loaded onto the ship.
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Summary
Some important steps and documents in export transaction are :
preliminaries, inquiry and offer, confirmation of order, export license,
finance, procurement of goods, shipping space, packing and marking,
quality control and pre-shipment inspection, excise clearance, customs
formalities, exchange control formalities, insurance, shipping goods,
negotiation of documents and export incentives.
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Summary
• There are two dozen commercial and regulatory documents
involved in pre-shipment stage of an export transaction.
• The different commercial and regulatory documents may be
classified into documents related to goods, documents related to
shipment, documents related to payment, documents related to
inspection etc.
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