IBO 04 Unit 5: Processing of Export Order Short Notes

IBO 04 : Export Import Procedure and Documentation

Unit 5 Processing of Export order

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Export Order

Processing of an export order starts with the receipt of an export order. An export order may be either in the form of export sales contract or an instrument evidencing the conclusion of a contract. It means that there should be an agreement, which is mostly reduced in a documentary form, between the exporter and the importer before the exporter can start making arrangements for production or procurement of goods and their shipment. Generally, an export order may take the fallowing forms:
  1. Proforma Invoice accepted and signed by the importer
  2. Purchase Order accepted and signed by the exporter
  3. Letter of Credit opened by the importer in favour of the exporter.
Following  steps exist in an export order
  1. Receipts of Export Order
  2. Examination and Confirmation of Export Order
  3. Manufacturing or Procuring Goods
  4. Central Excise Clearance
  5. Pre- Shipment Inspection
  6. Appointment of Clearing and Forwarding Agent
  7. Transportation of Goods to Port of Shipment
  8. Port Formalities and Customs Clearance
  9. Dispatch of Documents by Forwarding Agent to the Exporter
  10. Certificate of Origin and Shipment Advice
  11. Presentation of Documents to Bank
  12. Claiming Export Incentives
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