Presentation on theme: "Presentation on :- Requirement and function of main export documents and payment systems of Nepal “International Document and Payments system” by Rajan."— Presentation transcript:
1Presentation on :- Requirement and function of main export documents and payment systems of Nepal “International Document and Payments system” by Rajan Sharma
3Objective of this Class: Acquaint the participants with the following:Document required for export and ImportDescribe the requirement and function of main export documentsDisadvantage in excessive documentsCost and Time in documentation.Concept of Master DocumentNepal's competitiveness in comparison to other countries.Payment systems of NepalExamples of Documents and Payments in Nepal.
5General Supply Chain of Apparel Industry in Nepal Purchase Raw Materials (Labels, Tags, Elastic, Buttons, Zippers, Hangers, Fabric, Dyes, Printing Inks, Chemicals, Machinery)Order Raw Materials Export Readymade GarmentsA) Local A) EuropeB) From India (IRS)C) From India (USD) B) USA/CanadaD) From Bangladesh (by LC or TT) C) India (potentialE) From 3rd countries (by LC or TT) that we are exploring)Export Fabric(potential to export to India, Bangladesh, other countries)The nature of garment industry is that we have to produce goods in time but at a reasonable cost, as there are many countries competing for the same businessWe shall proceed to study how Excessive document requirement of Nepal Government, and Importing country hinders Nepal to be competitive with other Countries .ManufacturingProcess
6Stages in the Exporting Process: 1) Registration of Firm/Company2) Income Tax Registration3) Opening of Bank Account4) VAT Registration5) Product for Export:6) Market Selection7) Marketing Strategy8) Contacting Potential Buyers9) Establishing Contact:
7Continue… 10) Pro-Forma Invoice and PCs 11) Banking 12) Production of Goods13) DOCUMENTS14) Custom Clearing15) Shipment16) Payment Receiving17) Follow Up.
8Documents and its function for Sea movement S/No:Documents needed for ExportNo of Docs.Function of Document and issuing Body1Letter of Credit/Advance payment certificate and Covering letter of bank3 to 1Contract between Buyer and seller with bank of Exporter and importer in between.Bank of the Importer or the nations bank2Commercial Invoice (Description of Goods and value per unit and total.3 original and several copiesSort of Bill with description of goods ,its unit price ,total price. This is the main document for getting the payment.Prepared by the Seller:3Packing list (Volume and weight break of each Pc)3 original and copiesDetail of the packing per Package with contains with in. Total Pcs, Package and dimension.Prepared by the seller.4Pan /Vat/1 copyRegistration with the governments tax department.Government Authority5Company registration certificate copyThe proof that the company has been registered with the Government.6Authority Letter1 originalFor permitting the Freight Forwarder or Custom Broker for clearing the goods on behalf of the exporter. Prepared by the Shipper
9Cont….7CTD1 set of 8 pagesForm mentioning the details of the goods for the purpose of transit from another country to third country. Prepared by Freight Forwarder8Yellow paper (Custom declaration)1 set of 4 pagesMaster Document of Government with all details of export. Prepared by : Freight Forwarder or Custom Broker9Currency declaration Form1 set 2 pagesFor the purpose of the Federal Reserve Bank for record of foreign currency transaction. Prepared by the freight Forwarder10Insurance1 copyProof that the goods have been insured as per the contract between the buyer of seller .Issued by :Insurance Company11Transport Document3 original and some copiesReceipt of goods by the Airlines or shipping liner, Freight forwarder or MTO.Issued Freight Forwarder or MTO or the carrier12Undertaking and Authority for Kolkata Customs and port1 page originalSpecial undertaking for Indian government for handling at port and delivery of goods to Nepal. Prepared by Freight Forwarder endorsed by Shippers Bank.13Certification of Origin ( Chamber )GSP1 set of 7 pagesProof that the goods have been produced in the country issued by Nepal Chamber of Commerce. By Chamber of Commerce:
10Some special documents needed based on the type of Export and issuing body: Handicraft Certificate (for handicraft Goods) handicraft AssociationVisa in case of garments export issued National Productivity OrganizationPlant Quarantine certificate in case of Plants/Food items( Food technology Office) Permission from department of Forestry in case of Forest product *Certificate from Agriculture department in case of agro products.*Sample goods and special goods permission from department of Customs ie: diplomatic /Personal effects*Human remains (Doctors certificate, endorsed by Home Ministry)Fumigation certificate for Agro products or wooden goods (certifying body)ATA CARNET (Ministry of Commerce and Industry)GSP/Derogation ( Trade promotion centre)Quality Certification like ISO, HACCP, Health and sanitation certificate,child labor, Fe Trade, Environment etcSpecial Bank Documents : Bill of exchange, Beneficiary undertaking etcTransport Document: OBL, HBL, MAWB, HAWB, FCR, HOC, RCN,etc.,
11Segregation of Documents as per following: Negotiation Document (Contract)Bank DocumentsCustoms DocumentsDocuments in Transshipment Points (CCU)Special Documents as per CommoditySpecial Certification Required by Importing country.Transport Document.Insurance
12Major Documents Commercial Invoice Packing list Custom Declaration L/C or Advance Payment Certificate (APC)InsuranceTransport Docs.Special Document as per CommodityImporting Countries Requirement Document.
13Transport Document :Different type of transport document is issued based in the mode and means for transportation:1) FCR2) HAWB3) MAWB4) HB/L5) OB/L6) Combined Transport Bill of Lading7) MTO Document