Import and Export Documentation and Trade Procedures
Domain 3 - Import and Export Documentation and Trade Procedures
This domain tests the export and import document sets, the customs sequence each shipment follows, and Incoterms 2020 - specifically who pays and who bears risk at each point.
Export sequence
- IEC, order/proforma, commercial invoice and packing list.
- Shipping bill filed on ICEGATE (types: free, drawback, DFIA, EPCG, job work).
- Assessment, examination, Let Export Order (LEO).
- Loading; bill of lading (sea) or airway bill issued.
- Documents to bank: bill of exchange and LC where applicable; the eBRC later closes the cycle.
Import sequence
IEC → PO/proforma → bill of entry (home consumption or warehousing) → assessment → duty payment → out-of-charge. A certificate of origin is needed to claim preferential duty under an FTA.
Incoterms 2020 essentials
- EXW: buyer collects; the seller only makes goods available.
- FOB: risk passes when goods are on board the vessel at the port of shipment.
- CIF: seller pays cost, insurance and freight to the destination port, but risk still passes at shipment.
- DAP: seller delivers at the named place; buyer handles import clearance and duty.
- DDP: seller clears import and pays duty.
Worked example
Ex-works price USD 10,000, inland haulage to port USD 200, ocean freight USD 800, insurance USD 100. FOB = 10,000 + 200 = USD 10,200. CIF = 10,200 + 800 + 100 = USD 11,100. Reasoning: FOB ends when goods are on board, so inland costs are the seller's; CIF adds only main carriage and insurance.
Traps
- Saying risk passes at destination under CIF.
- Using FOB for containerised cargo, where FCA is the correct term.
- Confusing LEO with out-of-charge.
- Forgetting the certificate of origin and losing FTA preference.