0 AJay_Mishra Asked: June 26, 20192019-06-26T15:18:55+05:30 2019-06-26T15:18:55+05:30In: Commerce Explain various steps involved in the processing of an export order with suitable examples 0 Explain various steps involved in the processing of an export order with suitable examples Export Procedures and Documentation 1 Answer Voted Oldest Recent Best Answer admin 2019-06-26T16:02:28+05:30Added an answer on June 26, 2019 at 4:02 pm This answer was edited. Processing of an export order needs a lot of effort and attention as to products to be exported, the capacity of production available with the producer, availability of raw material, machine time, labour time and the required amount of finance the export order. The process involves lot of preparation and lot of government approvals and help. The most common form of export order is the performa invoice which is sent by the exporter who accepts it, signs it and send it back to exporter for its processing and send a Letter of Credit when gives all the details of the purchase order. Once, the Letter of Credit is established by the importer the supplier is ready to process the order and can also get bank credit on the basis of letter of credit. These are three schemes of inspection for export goods as under: i Consignment-wise Inspection ii In-process quality control by export worth units iii Self-certification by approved export houses. Receipt of an export involves the following steps: a) Receipt of Performa Invoice duly accepted by the importer and signed with stamp. b) Purchase order accepted and signed by the exporter. c) Letter of Credit opened by the importer in favour of the exporter. The export order or the sales contract has to have complete details. Examination of the Export order An export order will not be deemed to be complete unless it has the following details: a) Product description, specifications style, colour and packing conditions governing the order. b) Marking and Labelling requirements. c) Terms of payment including currency, nature of Letter of Credit. (only Irrevocable preferred) d) Terms of Shipment including choice of carrier place of delivery, date of Shipment/delivery port of Shipment and Trans-Shipment, if any. e) Inspection requirement, type of inspection, the inspection agency. f) Insurance requirement including risk to be covered and insurable value (Applicable only in case of FOB terms and in the case of CIF terms the cost of freight and insurance shall be born by the exporter). g) Details of documents required for release of payments and the number of copies of each document required. h) Last date of negotiation of document with the bank. Examination of the export order is very necessary for fulfilment of all contractual obligations. Confirmation of the receipt of export order can be made by letter, fax, telex, e-mail or even telephone if not specified in the contract. When an exporter receives an export order he has to make a lot of efforts to organise the activity if he is a manufacturer exporter he sends a delivery note along with the copy of export order which give the quality, quantity, specifications, marking, labeling, inspection details to the production department simultaneously ties up the raw materials practising materials. A merchant exporter starts procurring the goods through reliable vendors as per the given specifications. Then the goods are ready for packing a pre-shipment inspection is carried out by the Export Inspection Agency on receipt of notice along with technical specification, which in turn issues a certificate of Inspection in triplicate, and then the goods needs to be cleared by the Central Excise Authorities, who on receiving the application for excise inspection and issue certificate on form AR4/AR5 in six copies, then the goods are packed and sealed before removal of goods, after this the goods are handed over to the carrier either a road transport or Railways, and the relevant receipts along with other documents are sent to the clearing and forwarding agent for onward shipment. 0 Reply Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Leave an answerLeave an answerCancel reply Featured image Select file Browse Answer Anonymously Save my name, email, and website in this browser for the next time I comment.