Export From India: Complete Guide to Essential Export Documents

EXPORT FROM INDIA – ESSENTIAL EXPORT DOCUMENTS (MILESTONE 2 OF EXPORT ROADMAP)

By CA Devesh Thakur | Presented by EtaxSave

DOWNLOAD PDF – MILESTONE 2

India’s export ecosystem is expanding at an unprecedented pace. With the Government promoting Make in India, Atmanirbhar Bharat, and Districts as Export Hubs, thousands of entrepreneurs, manufacturers, traders, and service providers are stepping into international markets for the very first time.

However, in my professional experience as a Chartered Accountant and Export Consultant, I have observed that documentation mistakes are the single biggest reason for export failures, payment delays, and customs penalties.

That is why Milestone 2 of the Export Roadmap is dedicated entirely to Essential Export Documents — the legal backbone of every successful export transaction.

This guide is written not for theory, but for real exporters, real shipments, and real results.

✅ Why Export Documentation Is the Backbone of International Trade

Every export transaction has four core stakeholders:

1. Exporter
2. Importer
3. Customs Authorities
4. Banks

Each stakeholder relies on documents as legal proof of:

• Ownership of goods
• Nature of transaction
• Payment terms
• Risk coverage
• Regulatory compliance

Incorrect documentation can result in:

• ❌ Shipment stuck at port
• ❌ Foreign buyer disputes
• ❌ Export incentive rejection
• ❌ FEMA & customs penalties
• ❌ Complete loss of payment

Hence, document accuracy is more important than product quality in international trade.

✅ 1. Commercial Invoice cum Packing List – The Foundation Document

The Commercial Invoice cum Packing List is the single most important export document. It reflects both the financial value of goods and the physical details of the shipment.

✅ Commercial Invoice Includes:

• Exporter name, address & IEC
• Importer name & address
• Invoice number & date
• Description of goods
• ITC-HS Code
• Quantity and unit price
• Assessable value
• Currency
• Incoterms (FOB, CIF, CFR, etc.)
• Country of origin
• Payment terms

✅ Packing List Includes:

• Carton numbers
• Gross weight & net weight
• Dimensions
• Type of packaging
• Number of packages

Today, customs allows combined issuance as “Invoice-Cum-Packing List”, which simplifies compliance.

✅ 2. Shipping Bill – The Legal Passport of Export

The Shipping Bill is the most critical legal document for export clearance. Without a Shipping Bill, customs will not permit goods to leave India.

✅ Filed Through:

ICEGATE (Indian Customs Electronic Gateway)

✅ Purpose of Shipping Bill:

• Enables customs assessment
• Allows export incentives
• Confirms legal export under Indian law
• Generates export statistics
• Forms base for foreign remittance

✅ Types of Shipping Bills:

• Free Shipping Bill – No export incentives
• Drawback Shipping Bill – For duty drawback
• Export Promotion Shipping Bill – For MEIS/RODTEP

Every shipping bill undergoes customs verification, examination (if required), and Let Export Order (LEO) before goods move out.

✅ 3. Bill of Lading (BL) / Airway Bill (AWB)

This is the transport document issued by the carrier.

Mode of Transport	Document
Sea	Bill of Lading (BL)
Air	Airway Bill (AWB)

✅ Functions of BL/AWB:

1. Proof that goods have been shipped
2. Contract between exporter and carrier
3. Title document to claim goods

The importer requires BL/AWB to:

• Clear customs
• Pay port charges
• Take delivery

Without this document, goods cannot be released at destination.

✅ 4. Certificate of Origin (COO)

The Certificate of Origin certifies the manufacturing nationality of goods.

It confirms that the goods:

• Are produced in India
• Are eligible for import duty benefits under FTAs
• Fulfill origin criteria of the importing nation

✅ Issued By:

• Chambers of Commerce
• Export Promotion Councils
• DGFT-authorized institutions

COO significantly:

• Reduces import duty for buyer
• Increases product competitiveness
• Enhances credibility of exporter

✅ 5. Letter of Credit (LC) – Bank-Backed Payment Security

An LC is a bank guarantee of payment issued by the importer’s bank in favor of the exporter.

✅ Why LC Is Crucial:

• Eliminates buyer default risk
• Enables trust between unknown parties
• Allows export finance from Indian banks
• Protects exporter from country risk

✅ Common Types:

• Sight LC
• Usance LC
• Confirmed LC
• Revolving LC

Under LC, banks pay the exporter upon correct submission of documents, irrespective of buyer’s future intention.

✅ 6. Bill of Exchange – Legal Payment Instruction

A Bill of Exchange (BOE) is a written financial instrument by which:

• Exporter instructs importer to pay
• Banks process collection and realization

✅ Two Types:

• Sight Draft – Immediate payment
• Usance Draft – Deferred payment

BOE enables:

• Post-shipment finance
• Documentary collection
• Legal enforceability of dues

✅ 7. Inspection Certificate – Quality Compliance Proof

Many product categories require pre-shipment inspection before export. This ensures:

• Quality of goods
• Compliance with buyer specification
• Conformance to international standards

✅ Inspection Is Mandatory For:

• Food products
• Pharmaceutical goods
• Engineering goods
• Chemicals
• Agricultural produce

Buyers often appoint third-party inspection agencies to issue this certificate.

✅ 8. Phytosanitary Certificate – Mandatory for Agricultural Exports

For exports of:

• Fruits
• Vegetables
• Seeds
• Plants
• Cereals
• Pulses

A Phytosanitary Certificate is compulsory.

✅ Issued By:

Plant Quarantine Authority of India

✅ Confirms:

• Pest-free condition
• Disease-free cargo
• Compliance with importing country’s biosecurity laws

🚫 Agricultural exports cannot legally clear customs without this certificate.

✅ Why Milestone 2 Is the Backbone of Export Success

These documents determine:

• ✅ Whether customs clears your shipment
• ✅ Whether your buyer receives goods
• ✅ Whether your bank releases payment
• ✅ Whether you receive export incentives
• ✅ Whether your business survives globally

In international trade, documentation is business survival.

✅ TABULAR SUMMARY – FULL FORM VS SHORT FORM

Short Form	Full Form
IEC	Importer Exporter Code
BL	Bill of Lading
AWB	Airway Bill
COO	Certificate of Origin
LC	Letter of Credit
BOE	Bill of Exchange
HS Code	Harmonized System Code
ICEGATE	Indian Customs Electronic Gateway
EDI	Electronic Data Interchange
FTA	Free Trade Agreement
Phyto Certificate	Phytosanitary Certificate
LEO	Let Export Order
FOB	Free on Board
CIF	Cost, Insurance & Freight

✅ EtaxSave’s Mission in Export Education

At EtaxSave, our mission is to:

• Simplify Indian exports
• Remove fear from compliance
• Create global entrepreneurs
• Educate MSMEs & startups
• Build legally strong exporters

This Export Roadmap is designed as a step-by-step, zero-confusion system for Indian businesses.

EXPORT ROADMAP (MILESTONE 1)

EXPORT ROADMAP (MILESTONE 3)

EXPORT ROADMAP (MILESTONE 4)

EXPORT ROADMAP (MILESTONE 5)

EXPORT ROADMAP (MILESTONE 6)