Export business sounds very lucrative but the steps involved in running a successful business of trading goods in other country is no child’s play. The business operators have to face many challenges at every step of business. These challenges are not just restricted to one’s own country but as the business is done in other countries so many issues are faced in other countries also. A proper set of guidelines and rulebook is expected to be followed by business operators. Then only the permission to carry out the business of shipping goods will be granted to the business operators. This permission is granted at various levels as clearance is sought at many stages to carry out sending goods to another country for trading. The business operators must have the required expertise to run the business smoothly as this area is very vast and absolutely different from inland business. A vague knowledge of understanding of business involving overseas trading will not help in the long run. So the exporters must keep themselves updated with the developments taking place in this vast field.
In Overseas business, the business operator has to arrange many papers that are submitted to different departments for getting clearance and certificates. It is very normal that competent authority rejects the papers for want of information and required papers. As a result, there will be a delay in getting the permit and this delay may terminate the business deals. To save the interest of overseas business operators, many private agencies come to the rescue of these companies with the aim of taking care of Export Documentation service. They work as an outsourced entity that is committed to providing cost-effective and well-timed service. The lengthy process of manual export documentation work often results in a delay in sending the goods to another country.
The customs department has very important role to play in export business. They provide the business operator with the Export Declaration Number or EDN at the time of filing Customs Declaration form which contains the details of goods being traded to another country. Export Receivable Advice or Pre Receivable advice PRA has the information related to the arrival of the ship at the designated port and a Container Acceptance is issued by shipping terminal.
Export business is a very vast area and needs the expertise to run it smoothly. The exporter must have to be very sound both physically and mentally as export involves a lot of different types of clearance from various authorities, lots of certificates to be issued, various types of registration numbers etc.
Getting these documents ready and registration done is not an easy cake to walk. The requirement of lots of paper work makes this job a mammoth task. To ease the process of export documentation and to expedite the retrieving of various registration numbers, international trade software is devised. It is an online platform that takes care of export documentation in a full-fledged way.
Many agencies are active in taking care of export documentation on behalf of exporters by making a better use of international trade software. Nowadays exporters are outsourcing their export documentation work to agencies for timely and cost effective services. The manual process of export documentation is extremely time-consuming and sometimes products are not exported in the set time frame.
The agencies that are providing Export Documentation services are instrumental in obtaining various documents like following:
- Health Certificates, Phytosanitary certificates which are issued by Agriculture Department. It is required in case of export of fisheries products and plants.
- Export Declaration Number or EDN. Export Declaration Number (EDN) is issued by the customs department. EDN is issued when Export Goods Declaration form is submitted to the custom department. It contains the details of the goods which are exported. An EDN is issued upon acceptance of Export Declaration Form. It is a combination of nine alphanumeric characters. There is a provision of lodging the export declaration form up to six months in advance. The Customs Declaration is important for uninterrupted passage of goods from one country to another.
Export declaration forms can now be submitted online with help of agencies and EDN number can be obtained easily.
- Certificate of Origin or COO which is issued by any Chamber of Commerce
- PRA or Pre-Receivable Advice is also submitted. It was primarily known as Export Receival Advice. It is information to shipping terminal about the arrival of the container. In return, Cargo or Container Acceptance is issued by the shipping terminal.
In the present times, with the globalisation, there has been an evident increase seen in the export activities. The companies are expanding their business horizons across the borders and exporting their goods in a huge amount.
However, to make this possible the company requires fulfilling export documentation and other formalities. The export documentation is a strenuous job that requires a lot of paperwork, getting the export declaration number, custom delectation and pre-receival advice. If the company is finding it difficult to get the needed assistance and manage the documentation work in an efficient manner then Impex Docs can help in integrating the export documentation process. For the companies, it is imperative to manage the documentation work and get the needed approval for trading with the international export partner’s on-time. Because, any mistake may lead to costly delays, that is not beneficial for the company’s image.
The company provides a cloud-based software from where the company can get access to the all the imperative documents and information that is required for the meeting all the compliance related to the export activity.
Export Declaration Number
END is a document that contains the details related to the nature of good. Getting the END (Export Declaration Number) is mandatory before the dispatching the goods from the customs department. With the aid of this software, the company can easily get the END in a few minutes.
Additionally, the pre-receival advice is also an important document that informs that the export shipment is arriving at the terminal. It with the use of the cloud-based software ensures on time transmission and receipt of PRA messages in order to obtain the shipment acceptance.
The export companies that the every country has distinctive export documentation requirements and other formalities. With the help of the automated software solution, the exporters can quickly get the answer to their queries and get the required documents list. They can easily download and submit the documents as well as keep the track of their database using a single online platform. It is very simple to use and helps to save a lot of time as well as money spent in the documentation process.
Certificate of Origin is known to be an important document for the import customs clearance in maximum importing countries.
In accordance with the government policies of some countries and also the unilateral and bilateral agreements between the countries, import duty could be exempted under specified goods from a few countries. As per the consumption and availability of the goods, some goods are imposed by import duty for the sake of importing of such goods. Duties are levied on goods that would be importing various other countries due to the political policies. Hence, the importance of confirming the origin of the goods plays a very important role in the international trade between the countries.
Certificate of origin is known to be a document that certifies the origin of the country where the exports are originally manufactured and acquired. In many cases, the buyer would only need the certificate that is issued by the locally based Chamber of Commerce. In some other cases, the buyer needs to get generalised system of preference that is issued by the export council works of the respective country. When issuing the certificate of origin, the commercial invoice copy will also be attested by some authorities.
Normally when the goods are required to be exported from Australia to other countries, it requires being declared as the export declaration in case the value of the goods exceed AUD 2000 or if they are in need of an export permit, no matter what their value is. There are certain goods that do not need an export declaration and they include goods that value not more than AUD 2000, pets, personal effects, goods that are provisionally imported under the section 162A of the Customs Act 1901, Australian aircraft and the ship spares, Australian post or diplomatic bags of mail, domestic cargo containers of Australia for International carriage of ship and cargo stores and the military goods of any value that are considered the property of the Australian Government for the usage of overseas by the Australian Defence forces. The export declaration provides the customs with the details about the goods that requires export. The export declaration provides the customers with all the details of goods that are required to be exported. Thereafter the ICS issues the Export declaration number once accepted and this consists of 9 alphanumeric characters.
In Export Documentation it is necessary for clarity in essential elements fundamental to export. The letter of credit is a basic underlying requirement in its progress. It provides a dependable mode of payment.
A letter of credit symbolises:
- It is an undertaking by the bank to make payment.
- It has to be in writing.
- The bank is called the issuing bank.
- According to the steps set down by the buyer and his request to the issuing bank it is given to the seller called the beneficiary.
- With it the buyer instructs the bank to make payment to the beneficiary or give a draft i.e. bill of exchange.
- The amount for payment has to be specified.
- It has to be cleared within a fixed time against valid documents.
- The letter of credit may be revocable or irrevocable
Other methods of payment, for eg. by cash along with the order exist. Or by open account where the buyer on receiving goods at an agreed time remits payment.
For a safe and smooth journeys end of the export transaction furnishing dependable documentation guards against any future conflict.
Bill of lading
This is issued by a carrier as a receipt for goods to be transported to the point of disembarkation. It contains the covenants for transfer. A bill of lading is a document of title of the custody of the merchandise in its possession. The letter of credit determines the port of loading and the port of discharge. Further the letter of credit contains directions of the manner the goods have to be allocated which have to be strictly adhered to. Any overlying markings showing the defect in their packaging or condition results in the bill of lading being rejected.
All this shows that both the bill of lading and letter of credit have to be shielded with impeccable export documentation.
The exporter has to provide sound insurance to the buyer. Necessary insurance policy and certificates have to be issued. The export documentation has to be very sensitive to the extent of coverage and risk agreed upon between the parties from the very inception of their contract.
Export documentation process
An important feature of this process is the role of international freight forwarders. They act on behalf of the exporter to move cargo finally to the customer. Having inside knowledge about the peculiar, changing foreign rules and regulations relevant to shipping and trade. Inputs by them on freight costs, port charges, insurance, and fees governing different transactions help in preparing price quotations. Best and protective packing of merchandise can be supplied and arranged by them. They also assist in reviewing entire documentation process. They deal with cargo on its arrival at the port. They deal with customs brokers. Lastly they may forward the documents to the customer or paying the bank.
Export Declaration Number
The exporter is required to fill up at the port of export all the details describing the nature and content of his goods. The customs department after thoroughly going through these details issues an Export Declaration Number EDN.
Certificate of Origin
This witnesses the country where the goods sought to be exported have been manufactured.
Accurate and fast Export Documentation is required to save money and time on exports. This is important to avoid customs penalties, contractual issues, difficulties in getting paid and transport delays. Even when agents or freight forwarders are involved, efficiency in the Export Documentation Process is required.
It is important to seek advice on trade documentation and export declaration number required for overseas markets so that it is clear how the letters of credit, ATA Carnets, Certificate of Origin and other Customs documents are to be handled. Trade experts can help in the successful certification, legalization, signing and issuance of all the documents required.
Customs clearance is the major source of trouble for exporters, though the clearance formalities have gotten simplified over the years. They are now comparable to local sales procedures. Introducing software systems for the filing of documents electronically has brought about this change. Both the government as well as traders in the export business can now handle import and export procedures easily and accurately. The fast growing telecommunication and electronics industries all over the world have contributed largely in all the sectors for boosting the simplification of formalities and procedures in the import and export trade.
Once the packing list and invoice has been prepared, on the basis of the letter of credit or the purchase order, customs clearance procedures are arranged, well before the shipment time of the order. A customs broker can be appointed if assistance is required in the customs clearance procedures. After the documents have been received from the exporter, shipping bill can be filed electronically through software systems available online. Then shipping bill number is then generated, according to the serial order country-wide.
The goods that are to be exported are transported to sea port, airport or freight stations. They are then unloaded to their respective shipping yards. Location yard is the responsibility of the carrier to decide. Export customs formalities and procedures are then completed and the examination of goods is conducted by higher officials. Customs officials assess the value of the goods, along with other information that needs to be verified.
The export business is one that rewards the country as well as exporters with a lot of financial abundance. At the same time, the export documentation process can be challenging to keep up with all the requirements and regulations of this particular industry, which keeps exporters on their toes. They have to keep in mind different documents and certificates from different documents, get them duly filled up and certificated, and submit them to the relevant departments just in time for the shipment to be sent or received. This can be a lot to keep in mind, which can sometimes result in forgetfulness which in turn results in delays at the shipping end.
All of this can be solved with a simple solution an effective export documentation service that helps exporters keep on top of all the documents they need for various shipments of different categories in different ports in different countries. For example, without the pre-receival advice, the shipment will not be accepted at the port of call. It will be either returned or delayed indefinitely. This results in thousands and even millions of dollars being lost, not to mention the amount of time, effort, and energy being lost too.
Through a cloud-based solution that provides all the relevant documents to be downloaded at anytime and anywhere, exporters can print out documents and send them online itself to the respective departments for approvals. No more running around to different departments for different authorizations. With such an online solution for export documentation, exporters also get all the information they need for any of their requirements under one roof. So whether it is exporting for the food and beverages industry or for the consumer electronics industry, they can know the different regulations and documents required right from the online platform, which saves time and energy that can be spent on other things.
The online system also makes it easier to contact the relevant departments, ask questions, get clarifications, etc., which helps to make the entire process smoother and more streamlined. This way, everyone benefits in the end, making the country of Australia even more prosperous at the end of the day.