I (Meaning and importance of Exports) Unit Structure

7) Filing of claim 
– 
If the goods are damaged in transit, the exporter may file 
acclaim for damages or loss with the insurance firm. The claim 

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must be submitted in prescribed form supported by relevant 
documents. 
8) Claim Amount 
– 
The insurance firm verifies the claim of the exporter. 
Normally, investigation is done in respect of the claim. If the 
insurance firm is satisfied with the claim, it sanctions the claim 
amount to the exporter. 
12.7 NEGOTIATION OF EXPORT DOCUMENTS 
The submission of the full set of shipping documents to the 
bank for realization of payments is called negotiation of documents. 
Payments from overseas buyer in respect of export proceed 
must be realized only through the negotiating bank. 
1) Negotiation of Documents 
– 
The exporter must submit shipping documents to his bank 
for negotiation within 21 days of the date of shipment of goods 
(subject to certain exceptions). Full value of export should be 
realized within 180 days from the date of shipment. Where it is not 
possible to realize the sale proceeds within the prescribed period, 
the exporter must secure prior permission from the RBI. The 
following constitute full set of shipping documents. 
– 
Commercial invoice, original L/C, customs invoice, certificate 
of origin, insurance policy, packing list, foreign exchange 
declaration form, Bank certificate etc. 
2) Letter of Indemnity 
–
If the documents submitted are not according to the 
requirements of L/C, the bank normally refuses to negotiate the 
same. In such a case, the exporter should execute a letter of 
indemnity or request the bank to obtain special „Authority to pay‟ 
from the bank of the importer which has advised the L/C.