I (Meaning and importance of Exports) Unit Structure

8) Actual assessment visit 
– 
It is a detailed visit involving assessment of how effectively 
the systems are functioning. It any deficiencies are found, the firm 
is given time to rectify the same. 
9) Certification 
– 
If the assessment agency is satisfied with the quality 
systems followed by the firm, then the firm is granted ISO 9000 
certification. 
10) Surveillance 
– 
The accredited agency may take periodic surveillance 
programmes to ensure that the certified firm is maintaining quality 
systems. In case it finds that the firm failed to maintain quality finds 
that the firm failed to maintain quality system, certification may be 
cancelled or suspended. 
12.10
DISTINGUISH BETWEEN PRE-SHIPMENT 
PROCEDURE 
AND 
POST-SHIPMENT 
PROCEDURE 
Pre-shipment procedure 
Post-shipment procedure 
1) Meaning 
– 
It refers to the procedure 
involved before shipment of 
goods. 
It refers to the procedure 
involved after shipment of 
goods. 

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208 
2) Registration 
– 
This stage involves registration 
of the export firm with various 
authorities. 
This stage is post registration 
stage, hence there is no need 
for 
registration 
with 
any 
authority. 
3) Getting export-order
During this stage exporter gets 
the export order to supply 
goods.
During this stage exporter 
actually executes the export 
order by exporting goods as 
per export order. 
4) Letter of credit / Bill of 
exchange 
During this stage exporter 
obtains letter of credit from the 
importer. 
During this stage exporter 
draws a bill of exchange 
against letter of credit. 
5) Types of credit 
– 
During this stage exporter goes 
for pre-shipment finance to 
meet 
working 
capital 
requirements before shipment 
of goods 
During this stage exporter 
goes for post-shipment credit 
to meet working capital needs 
arising 
after 
shipment 
of 
goods. 
6) Documents 
– 
During 
this 
stage 
various 
documents such as invoice 
packing list, etc are prepared 
During this stage various 
documents are submitted to 
various authorities and to the 
importer. 
7) Customs House Agent 
– 
During this stage customs 
house agent is appointed to 
look after customs formalities. 
During this stage customs 
house agent is paid for the 
services offered by him. 
8) Customs Formalities 
– 
During this stage a number of 
customs formalities are to be 
fulfilled. 
During this stage there are no 
customs formalities to be 
fulfilled. 
9) Number of activities 
– 
There are a number of activities 
involved during this stage. 
When 
compared 
to 
pre-
shipment stage the number of 
activities during this stage is 
less. 
10) Time element 
– 
This stage is lengthy and time 
consuming
This stage is relatively less 
time consuming. 
11) 
Realization 
of 
export 
procedure 
– 
During this stage there is no 
question of realization of export 
proceeds as the export process 
is not completed. 
During this stage the proceeds 
of exports are realized as 
export process is completed. 
12) 
Realization 
of 
export 
incentives 
– 

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209 
During this stage the question 
of realizing incentives does not 
arise as the export process is 
not complete. 
During this stage the exporter 
tries to realize various export 
incentives like DBK Excise 
refund etc.