Export documentation: Your guide to shipping from India

Exporting goods from India to the global marketplace involves several key stages. Consider this journey a road trip; documentation serves as your roadmap. It guides your shipment through each step, ensuring compliance with regulations, facilitating smooth transactions, and ultimately leading to successful delivery. This guide will walk you through all the necessary export documentation required when shipping from India.

Phase 1: Pre-export documentation

Before your goods begin their physical journey out of India, specific documents lay the groundwork for a successful export transaction. These pre-shipment documents establish the agreement between you and your buyer and provide preliminary details about the shipment.

Sales Contract/Purchase Order

The Sales Contract or Purchase Order legally binds the agreement between you, the seller in India, and your buyer overseas. It outlines the specifics of the transaction, ensuring both parties have a clear understanding of their obligations. Key elements that should be included in your Sales Contract/Purchase Order are:

• Product details
• Price
• Payment terms
• Incoterms

Pro forma invoice

The pro forma invoice is essentially a preliminary invoice that the seller provides to the buyer before shipping. It serves two primary purposes:

• Quotation: It is a formal quotation, providing the buyer with a clear breakdown of the costs involved.
• Customs purposes: It can be used by the buyer to obtain necessary import permits or for preliminary customs clearance procedures in their country.

The pro forma invoice typically includes information such as:

• Product description
• Price
• Quantity
• Estimated shipping costs

Phase 2: Export preparation documentation

Once the initial agreement is in place, the next phase involves preparing the specific documents needed to export your goods from India. These documents provide detailed information about the goods being shipped, ensuring compliance with Indian and international regulations.

Commercial Invoice

The Commercial Invoice is a crucial international shipping document and a primary requirement for customs authorities in both India and the destination country. It serves as a bill for the goods being exported and provides essential details about the transaction. Key information that must be included in the Commercial Invoice includes:

• Buyer and seller details
• Product descriptions
• HS codes
• Value
• Country of origin
• Incoterms
• Payment terms
• Shipping marks and numbers

Packing list

The packing list provides a detailed breakdown of the contents of each package within your shipment. It specifies the quantity, weight (both net and gross), and dimensions of the goods in each box, crate, or container. This document is essential for customs inspection, allowing authorities to verify the contents of your shipment and ensure accurate delivery to your buyer.

Certificate of Origin (COO)

The Certificate of Origin (COO) certifies the country where the goods were produced, manufactured, or obtained. It is an important document for claiming preferential tariff treatment under various international shipping and trade agreements between India and other countries. Depending on the destination country and the specific agreement, a COO can reduce or even eliminate the import duties and taxes payable by your buyer.

Export license/permit (if applicable)

The Indian government may require an export license or permit depending on the nature of the goods being exported. Certain categories of goods, such as restricted items, hazardous materials, or items subject to specific trade regulations, require obtaining the necessary licenses or permits before an export service can be provided. Guidance on whether your goods require an export license can be obtained from India's Directorate General of Foreign Trade (DGFT).

Preparing these shipping documents is crucial for a smooth international shipping process from India.

Phase 3: Shipping and transportation documentation

With your goods prepared and export documentation in order, the next phase involves the physical shipment and the associated transportation documents. These documents govern the movement of your commodity from India to its international destination.

Bill of Lading (for sea freight) / Air Waybill (for air freight)

The Bill of Lading (B/L) for sea freight and the Air Waybill (AWB) for air freight serve as multifaceted documents for international shipping. They act as:

• Document of Title: The B/L can represent ownership of the goods for sea freight.
• Contract of Carriage: This is a contract between you (the shipper) and the carrier outlining the terms and conditions of transportation.
• Receipt of Goods: They prove that the carrier has received the goods in good condition.

Accuracy is paramount when completing these shipping documents. Key information includes:

• Shipper and consignee details (names and addresses).
• Port of loading and discharge (for sea freight) / Airport of departure and destination (for air freight).
• Description of goods, including quantity, weight, and dimensions.
• Shipping marks and numbers.
• Freight charges and payment terms.

Shipping Instructions

Shipping instructions are the directions you provide to the carrier, detailing how you want your shipment to be handled and delivered. This document ensures that the carrier understands your specific requirements. Key elements include:

• Carrier details.
• Shipment details (weight, dimensions, number of packages).
• Details of the goods.
• Special handling instructions (if any), such as "Fragile" or temperature control requirements.
• Delivery instructions, including the destination and any specific delivery procedures.
• Details of any notifications required during transit or upon arrival.

Dangerous Goods Declaration (if applicable)

If you are shipping restricted or regulated hazardous materials, a Dangerous Goods Declaration (DGD) is a mandatory document for international shipping. This form certifies that the dangerous goods have been correctly identified, classified, packed, marked, and labeled in accordance with international safety regulations, such as those set forth by the International Maritime Dangerous Goods (IMDG) Code for sea freight and the International Civil Aviation Organization (ICAO) for air freight. Accuracy and completeness are critical for the safety of the shipment and all parties involved in its transport.

Phase 4: Post-shipment documentation

The final phase of the export journey involves post-shipment documents, which primarily relate to securing payment and providing proof of insurance.

Insurance certificate

An insurance certificate serves as proof that your exported goods are covered against potential loss or damage during transit. While not always mandatory, obtaining cargo insurance is a prudent step, especially for high-value or fragile commodities. The insurance coverage typically includes:

• The insured goods and their value.
• The policy number and the insurance company.
• The scope of coverage, outlining the risks covered.
• The period of insurance.
• The terms and conditions of the policy.

Payment documents

The specific payment documents involved in your export transaction will depend on the agreed-upon payment method. Common methods used in international shipping include:

• Letters of Credit (L/C): This involves a bank guaranteeing payment to the seller (you) once specific shipping documents are presented, confirming the shipment has been made according to the sales contract terms. Key documents include the L/C itself, the commercial invoice, the bill of lading/air waybill, and potentially certificates of origin or inspection.
• Wire transfers (Telegraphic Transfers - TT): The buyer directly transfers funds to your bank account. Documentation typically includes payment confirmation slips and bank statements.
• Documentary collections (Documents Against Payment - D/P, Documents Against Acceptance - D/A): This involves your bank sending shipping documents to the buyer's bank, which releases them to the buyer upon payment (D/P) or acceptance of a draft (D/A). Key documents include collection instructions, the commercial invoice, and the bill of lading/air waybill.

Ensuring compliance and accuracy

Accuracy and meticulous attention to detail are paramount when preparing export shipping documentation. Any errors or omissions can lead to significant complications, including delays, penalties, and even the seizure of your goods by customs authorities in India or the destination country.

Role of Customs

Customs authorities in both India and your buyer's country play a critical role in inspecting and clearing goods for export and import. Their primary responsibilities include:

• Reviewing all necessary documents for export to ensure accuracy, completeness, and compliance with relevant regulations.
• Inspecting goods to verify the declared contents and ensure they match the documentation.
• Determining the applicable duties and taxes based on the commodity trade classification and the value of the goods.
• Ensuring compliance with all relevant international shipping document requirements, including prohibitions and restrictions.

Technology and documentation

Technology is increasingly vital to streamlining the often-cumbersome process of document preparation and management in international shipping from India. Electronic documentation, such as electronic invoices and packing lists, can expedite the exchange of information between parties and reduce the risk of errors associated with manual data entry.

Online platforms offered by logistics providers like DHL Express also provide valuable tools for preparing and managing your export shipping documentation.

Simplify your export documentation with DHL Express

Navigating the intricacies of export documents can be complex, but it’s the bedrock of successful international shipping from India. DHL Express understands these challenges and offers the expertise and tools to simplify the entire process for businesses like yours. With a team of customs clearance brokers, you can enjoy invaluable guidance on the specific documents needed for export to various destinations.

By partnering with DHL Express, you gain a trusted ally with the knowledge and infrastructure to handle your export documentation needs, allowing you to focus on growing your business in the global marketplace. Accurate and complete documentation, supported by expert guidance and technological solutions, ensures compliance, minimizes risks, and fosters strong relationships with your international buyers, paving the way for seamless global trade.

Take the next step towards simplifying your export operations. Open a DHL Express Business Account today and let the experts streamline your documentation and international shipping process.