Documentation in Exports and Imports – Some facts.
Why documentation required for exports?
You are a seller at one part of a country and the overseas buyer is in another part of another country. Your goods are moved out of physical boundary of your country. For many reasons, documentary proof is required because; there should be an evidencing proof for all the transactions you make. So I suggest always making a habit of writing, rather than speaking in international trade. Ok, you may have to talk over telephone many times to have a close relationship with your buyers. However I strongly suggest you to keep a written record on the matters you have spoken over telephone. I used to communicate with the foreign buyer and after finishing talk, I used to email the overseas buyer about the contents of our talk each other. You can start writing “Please refer to our telephonic - conversation about …… (or), “Nice to have a conversation with you” I would like to point out the contents in brief below….1,2,3,…
If any dispute arise with your overseas buyer, these written information helps in overcoming misunderstanding and oversight for any of both. Socio-economic and political issues of buyer’s can not be updated during this past life especially due to continues changes happens.
So proper documentation helps you and your overseas buyer in handling your transactions in all means including time management, payment protection, claim on loss etc.
In India, Foreign Exchange Management Act regulates the import export trade.
I will explain you major 03 perspectives in documentation.
The importance of documentation in Exports and Imports
Once the export order finalized between buyer and seller, normally a contract of sales is prepared mentioning all terms and conditions each exporter and importer should follow. So all related documents like invoice, packing list, certificate of origin, insurance, bills of exchange etc. are prepared on the basis of sales contract signed by both importer and exporter.
In India, all import export trade activities are effected legally as per the guidelines of Foreign Exchange Management Act. In each country, there will be government regulatory authority to control the import and export of the said country’s trade. The government of each country has their own instructions to have export documentation legally must be filed.
You can not claim any government assistance, support unless you have a proper documentation on your exports. There are many financial assistance and supports given government of each country to support exporters and earn foreign exchange which is the indication of wealth of the respective nation.
Based on the above, it is clear that proper documentation plays a very important role in an export business.
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