SM Enterprise

Import License

In India, Import License is issued by the Director General of Foreign Trade. DGFT Delhi office is situated in Udyog Bhawan, New Delhi 110011. Import Licenses are valid for 24 months for capital goods and 18 months for raw materials components, consumable and spares, with the license term renewable.

Insurance Certificate

This document, issued by an insurance company, certifies that the goods are covered for any loss or damage during transit. It backs up the importer’s declaration on the terms of delivery and helps customs ascertain the duties due on the goods.

Purchase Order and Letter of Credit

A letter of credit, or “credit letter,” is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make a payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase.

Test Report

When customs authorities are unable to assess the quality and thereby value of certain goods, they might send a sample to an authorized government laboratory for testing. The lab tests the product and provides a test report, on the basis of which the cargo is cleared.

Industrial License

An importer can avail of import benefits under government guidelines by submitting a copy of this to customs.

Registration cum Membership Certificate

This is a certificate of registration with the Federation of Indian Export Organizations (the country’s apex export promotion organization) or the various Export Promotion Councils or Commodity Boards. It is required for importing (or exporting) restricted items and to avail of benefits under the Foreign Trade Policy or those offered by customs and excise authorities.

Duty Exemption Documents

For duty exemptions under government schemes such as the Duty Exemption Entitlement Certificate (DEEC) and Export Promotion Capital Goods (EPCG), the importer must present the relevant documents during clearance.

Central Excise Document

This is required to avail of central excise benefits, if applicable.

Export License

An export license is a document issued by DGFT after which an exporter is allowed to transport his product in a foreign market. The license is only issued after a careful review of the facts surrounding the given export transaction.

Proforma Invoice

A proforma invoice is a preliminary invoice issued by the exporter to the importer. It differs from a regular invoice in that it is not a demand for payment. It includes a detailed description of the goods, their price, terms of sale and delivery details.

Country of Origin (COO) Certificate

Certificate of Origin is an instrument which establishes evidence on origin of goods imported into any country. These certificates are essential for exporters to prove where their goods come from and therefore stake their claim to whatever benefits goods of Indian origin may be eligible for in the country of exports.

Letter of Credit

The exporter might need to acquire a letter of credit from the importer’s bank, stating that the importer will go through with the payment. In some cases, the goods can be dispatched only after the exporter produces this document.

Warehouse Receipt

The Business Dictionary defines a warehouse receipt as a “receipt for goods left for safekeeping in a warehouse” and a “document of title… guaranteeing existence and availability of a specified quantity and quality of a commodity, and used as an instrument of transfer in cash (spot) and futures transactions”. It is proof that the goods authorized for sale are available and ready to be transferred to the buyer.

Health Certificates

These are mostly required for food products. They certify that the goods comply with safety standards and export regulations and are fit for human consumption.

Dangerous Goods Forms

These are required for goods considered dangerous by the International Maritime Organization, such as flammable liquids, gases, corrosives and toxic substances.

Insurance Certificate

This certifies that the exporter has insurance cover for the cargo being shipped.

Note : These are by no means complete lists of supporting documents required in the international shipping process. Therefore, exporters and importers are advised to check with their agents or shipping lines for any country-specific or product-specific documentation requirements for a hassle-free shipping experience.