Institution/Component Role/Functions Examples/Key Points
Category Document Purpose
Ministry of Commerce & Industry Formulates trade policies and oversees
Commercial Documents Commercial Invoice Details goods, price, quantity, and
export promotion. - Department of Commerce: Policy formulation.
terms of sale.
- DGFT: Implements Foreign Trade Policy, issues IEC, and export incentives.
Packing List Itemized list of package contents for inspection.
Export Promotion Councils (EPCs) Promote sector-specific exports, provide
Transport Documents Bill of Lading (B/L) Receipt and contract for goods in sea
market intelligence, and organize trade fairs and exhibitions. - EEPC
shipments.
(Engineering Export Promotion Council).
Airway Bill (AWB) Contract of carriage for air shipments.
- PHARMEXCIL (Pharmaceutical Export Promotion Council).
Certificate of Origin Certifies the goods' country of manufacture.
Special Economic Zones (SEZs) Offer tax and operational benefits to boost
Customs Documents Import License Authorization to import specific goods.
exports through dedicated zones. - Governed by the SEZ Act, 2005.
Customs Declaration Form Required for customs clearance.
- Examples: SEZs in Noida, Chennai, and Visakhapatnam.
Insurance Documents Insurance Certificate Proof of coverage for transit risks
Export-Import Bank of India (EXIM Bank) Provides financial support for
like damage or loss.
exporters and importers, including credit and guarantees. - Export credit,
Regulatory Documents Health and Safety Certificates Required for food,
overseas investment finance.
pharmaceuticals, or regulated products.
Federation of Indian Export Organizations (FIEO) Acts as an umbrella
Phytosanitary Certificate Necessary for agricultural or plant-based products.
organization for export promotion organizations, offering training and
Payment Documents Letter of Credit (L/C) Guarantees payment upon fulfilling
consultancy. - Facilitates global trade linkages and market access.
agreed terms.
Commodity Boards Promote exports of specific commodities such as tea,
Bill of Exchange Ensures payment as per the agreement.
coffee, and spices. - Tea Board, Coffee Board, Spices Board.
State Export Promotion Organizations (SEPOs) Support state-level export
initiatives and promote regional export-oriented industries. - Varies by state,
e.g., Karnataka Export Promotion Council.
Incentive Schemes Provide financial and operational incentives to exporters
to enhance competitiveness. - RoDTEP Scheme (tax remission).
- Advance Authorization Scheme (duty-free input imports).
India Brand Equity Foundation (IBEF) Promotes Indian products and services
globally through branding and marketing efforts. - Focuses on improving
India’s image in international markets.
Trade Bodies and Associations Advocate for export-friendly policies, organize
Aspect Pre-shipment Finance Post-shipment Finance
Definition Financial assistance provided to exporters before shipment of goods.
Financial assistance provided after goods have been shipped.
Purpose To meet working capital needs for manufacturing, processing, or
purchasing goods for export. To bridge the gap between shipment and
realization of export proceeds.
Timeframe Provided before the actual shipment of goods. Provided after goods
Aspect Details are shipped and documents are submitted to the bank.
Objective To promote exports and trade diversification while boosting Key Activities Covered Procurement of raw materials, processing, packaging,
economic growth. and transportation to port. Discounting export bills, collection of receivables, or
Regulatory Framework Governed by the Foreign Trade (Development and advance against bills.
Regulation) Act, 1992. Source of Repayment Proceeds from the export shipment. Payment from the
Importer-Exporter Code (IEC) Mandatory for conducting import/export importer or export credit insurance.
activities in India. Type of Credit Packing credit, advances for input procurement. Export bills
Duration FTP is usually valid for five years, with periodic amendments. discounting, advances against duty drawback.
Trade Facilitation Simplifies trade procedures and enhances ease of doing Risk Level Higher, as it depends on the successful completion of the production
business. or procurement process. Lower, as it is secured by the shipment and associated
Export Incentives Schemes like RoDTEP, Advance Authorization, and EPCG. documents.
Compliance Adherence to WTO norms and international agreements. Examples - Pre-shipment credit in foreign currency (PCFC). - Negotiation of bills
Focus Areas Market diversification, MSME support, and ease of digital under letters of credit.
processes. - Export bill purchase.
Aspect Letter of Credit (L/C) Export Credit Guarantee Corporation (ECGC) EPCG
Scheme
Rationale of Export Trade Control Purpose Secures payment for exporters. Provides insurance against credit risks
Ensuring National Security for exporters. Offers duty-free import of capital goods for exporters.
Compliance with International Obligations Nature Payment guarantee mechanism. Risk management and credit insurance.
Conservation of Natural Resources Incentive scheme for export production.
Maintaining Economic Stability Beneficiaries Exporters and importers. Exporters needing risk protection.
Preventing Illegal Trade and Diversion Exporters importing machinery for production.
Procedure for Obtaining an Export License Risk Coverage Payment guarantee if terms are met. Covers buyer default,
Register with DGFT (IEC Code) political risks, etc. Not risk-focused, but promotes export-oriented production.
Verify Product Classification (Restricted/Prohibited) Key Features Assures payment if export terms are fulfilled. Provides credit
Submit Application via DGFT Portal insurance, guarantees to banks. Duty exemption on machinery imports with
Attach Required Documents export obligations.
Scrutiny and Review by DGFT Repayment Importer repays the bank. Exporters pay premiums; claims are
Issuance of Export License settled for risk events. Exporters must meet export targets.
