INTERNATIONAL TRADE DOCUMENTATION AT

REVA TEXTILES PVT. LTD.

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Company profile

Name : Reva Textiles Pvt. Ltd. Established As : A Private Ltd. Company & as Manufacturers & Exporters Products : Ready to Wear Garments, Textiles & Fashion Accessories. Year of Establishment 1997 Address : Reg. Office: Jwala Building, C/21A, Bhagwan Das Road, Jaipur-302 001 (Rajasthan) INDIA Ph: +91 - 93140 63699 Works: F-160/A, Sitapura Industrial Area, Tonk Road, Jaipur-302 022 (Raj.) INDIA Ph: +91-141-277 0728, 277 0729 Cell: +91- 94140 76688 Fax: +91-141- 2771399 Production capacity : 25,000 - 40,000 units of Hi-Fashion garments per month. Turnover : US $ 3.4 million

Bankers : Punjab National Bank

Swift Code - BIC : PUNB IN BB JMI

Licenses
Registered with the following Export Promotion Organization (s), Association (s), & Chamber (s) of Commerce. Apparel Export Promotion Council. (Govt. Of India) Export Promotion Council for Handicrafts & Textiles (Govt. of India) CII (Confederation of India Industry) CIAe (Confederation of Indian Apparel Exporters) Importer-Exporter Code Number (IEC No.) Permanent Account Number (PAN) Registration with Value Added Tax Authority and Sales Tax Authority Export Promotion Council (EPC) Export Credit & Guarantee Corporation Of India (ECGC) Other Authorities Such As: Chambers Of Commerce (COC) Indian Trade Promotion Council Etc. The Textile Promotion Council Of India (TEXPROCIL)

Cliental Details
USA Canada Spain South Africa Egypt Greece Australia

INTERNATIONAL TRADE
Advantages
Market expansion Economies of scale Surplus not wasted BOP Global productivity Socio economic setup of country Disadvantages

Annihilation of infant industry

Exchange rate fluctuation Unequal distribution of wealth

FISCAL INCENTIVES TO PROMOTE EXPORT

Duty Drawback Tax Concession

Market development assistance

Export promotion of capital goods scheme

Cash compensatory support

Air Freight Subsidiary
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Financial assistance extended to the exporter from the date of receipt of the export order till the date of shipment is known as pre-shipment credit.

EXPORT DOCUMENTATION

Export Documents
Commercial Documents Principal Auxiliary Regulatory Documents

Commercial Documents
Document Functions
Prepared by

Quotation An offer to sell goods and should Exporter state clearly the price, details of quality, quantity, trade terms, delivery terms, and payment terms.

Sales Contract

An agreement between the buyer and the seller stipulating every details of the transaction. It is a legally binding document. It is therefore advisable to seek legal advice before signing the contract.

Exporter and Importer

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Commercial Documents
Document Performa Invoice Functions
An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, and importation specifications (weight, size and similar characteristics). Prepared by

Exporter

Commerci It is a formal demand note for payment al Invoice issued by the exporter to the importer for

Exporter

goods sold under a sales contract. It should give details of the goods sold, payment terms and trade terms. It is also used for the customs clearance of goods and sometimes for foreign exchange purpose by the importer.
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Commercial Documents
Document Functions
Prepared by

Packing List A list with detailed packing

Exporter

Inspection Certificate

information of the goods shipped. A report issued by an Inspection independent surveyor Company or (inspection company) or the Exporter exporter on the specifications of the shipment, including quality, quantity, and/or price, etc; required by certain buyer and countries.
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Commercial Documents
Document Insurance Policy/ Certificate Functions
An insurance policy is an insurance document evidencing insurance has been taken out on the goods shipped, and it gives full details of the insurance coverage. An insurance certificate certifies that the shipment has been insured under a given open policy and is to cover loss of or damage to the cargo while in transit. A certificate to certify the products are conformed to a certain international/national technical standard, such as product quality, safety and specifications, etc. Prepared by

Insurer or Insurance Agent or Insurance Broker

Product Testing Certificate

Accredited Laboratori es
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Transport Documents
Document Functions Prepared by

Bill of Lading (B/L)

An evidence of contract between the shipper of the goods and the carrier. The customer usually needs the original as proof of ownership to take possession of the goods.

Shipping Company

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Transport Documents
Document Functions Prepared by

Air Waybill (AWB)

A kind of waybill used for the carriage Airline of goods by air. This serves as a receipt of goods for delivery and states the condition of carriage but is not a title document or transferable/ negotiable instrument.
A list providing information needed for transportation purpose, such as details of invoice, buyer, consignee, country of origin, vessel/flight date, port/airport of loading, port/airport of discharge, place of delivery, shipping marks / container number, weight / volume of merchandise and the fullest details of the goods, including packing information.

Packing List

Shipper

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Financial Documents
Document Functions Prepared by

Document A bank instrument began (issuing or opening Issuing Bank upon an ary Credit bank), at the request of the buyer,
evidencing the bank's undertaking to the application seller to pay a certain sum of money made by the provided that specific requirements set out in Importer
the D/C are satisfied.

Bill of Exchange (B/E) or Draft

An unconditional written order, in which the importer addressed to and required by the exporter to pay on demand or at a future date a certain amount of money to the order of a person or bearer.

Exporter

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Regulatory Documents
There are seven regulatory documents associated with the pre-shipment stage of the export transaction. They are:

1. GRE Form ( for Central Excise) 2. Shipping Bill/Bill of Export (for Customs) For export of goods Ex. Bond For export of duty free goods For export of dutiable goods For export of goods under claim of drawback For export of goods under claim of DEPB

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3. Port Trust Copy of Shipping Bill/ Export Application/Dock Challan 4. Vehicle ticket 5. Exchange Control Declaration/GR/PP forms

6. Freight Payment Certificate

7. Insurance Premium Payment Certificate

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Post Shipment Finance is a kind of loan provided by a financial institution to an exporter or seller against a shipment that has already been made.

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TYPES OF POST SHIPMENT FINANCE

Export Bills Purchased / Discounted Export Bills Negotiated

Advance Against
Export Bills Sent On Collection Basis Export On Consignments Basis Claims Of Duty Drawback

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A formal document issued by a bank on behalf of customer, stating the conditions under which the bank will honour the commitment of the customer The letter of credit is also known as bankers commercial credit or documentary letter of credit. L/C used in domestic trade are called inland L/Cs.
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PARTIES TO A LETTER OF CREDIT

Importer or Applicant

Issuing Bank
Beneficiary Advising Bank Negotiating/ The Paying Bank.
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LETTER OF CREDIT THE PROCESS

Seller (Beneficiary)

1. Contract

Buyer Applicant
2. Documentary credit Application

4. Advice of Documentay credit

Advising Bank

3. Documentary credit

ISSUING BANK.

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Open Account is a form of trade whereby sales are made to the buyer without entering into any formal contract. The system works on complete trust between buyer & seller.
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OPEN ACCOUNT

Open Account is the most advantageous option to the importer in cash flow and cost terms. It is consequently the highest risk option for an exporter. Exporters may also wish to seek export working capital financing to ensure that they have access to financing for both the production for export and for any credit while waiting to be paid.
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OPEN ACCOUNT

Open account terms may be offered in competitive markets with the use of one or more of the following trade finance techniques: 1. Export Working Capital Financing
2. Export Credit Insurance
3. Export Factoring

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OPEN ACCOUNT PROCESS

TARGET

Purchase order
Goods

VENDOR

BANK

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Financial transaction whereby a business sells its accounts receivable to a third party called a factor (financial institution) at a discount in exchange for immediate money with which to finance continued business.
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FLOW CHART OF FACTORING

(1) Credit Sale of Goods

Customer
(2) Invoice
(5) Pays the amount (In recourse type customer pays through client)

Client

(6) Pays the balance (4) Payment upto 80% initially

(3) Submit Invoice Copy

Factor
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