If the bill of exchange is marked as documents against acceptance, the documents will be delivered to the importer on the acceptance of the bill. Usually, 30 to 90 days are allowed to pay the bill. If the bill is marked as documents against payment, the documents will be give to the importer only on the payment of the amount noted in the bill.

Letter of credit is an undertaking by its issuer (i.e. Importer's Bank) that bills of exchange drawn by the foreign dealer on the importer will be honoured upon its presentation by exporter's bank up to a specified amount.

There are three types of indent namely open indent, closed indent, and confirmatory indent.

(i) Export Promotion Council (EPC)
(ii) State Trading Corporation (STC)

1. After the scrutiny of quotation / proforma invoice, the buyer who intends to buy the goods sends an indent to exporter.
2. An indent actually points to an order received from abroad for export of goods. i.e. sale of goods.

Bill of Lading, refers to a document signed by the shipowner or to his agent mentioning that goods specified have been received and it would be delivered to the importer or his agent at the port of destination in good condition subject to the terms and conditions mentioned therein.

(i) Mate's receipt is the document issued by the captain of the ship acknowledging the receipt of goods on board by him to the port of specified destination.
(ii) This contains details like quantity of goods shipped, number of packages, conditions for packing, etc.

A Charter Party is a formal agreement between the ship owner and the exporter under which the exporter hires an entire ship or a major part of ship either for a particular voyage or for a specific time period when the shipping is heavy.

(i) Where the customs duties are charged on the basis of value of goods at import's port (ad-valorem basis) the customs officers are empowered to open the consignment to calculate duties. 
(ii) In order to avoid this problem, exporter obtains consular invoice and sends it over to the importer.
(iii) This document is signed by the consul of importers country stationed in exporter's country.
(iv) They simply accept the invoice as true statement of the content of the Consignment.

Content of an Indent:
(i) Quantity of Goods sent
(ii) Design of Goods
(iii) Price
(iv) Nature of Packing Shipment
(v) Mode of Shipment
(vi) Period of Delivery
(vii) Mode of Payment.

The functions of export houses are given below:
1. Identifying potential market for a product.
2. Finding buyers and their agent and eliciting their response for export proposal.
3. Establishing product specification in the light of market needs, standards and regulation in accordance with suppliers capabilities.
4. Determining appropriate mode of transportation and routing keeping in mind the cost, quality of service and security.
5. Preparing the goods for delivery at destination.
6. Determining buyer's credit worthiness.
7. Negotiating the transactions.
8. Arranging proper insurance coverage against maritime risk and currency fluctuations.
9. Preparing document for international trade.
10. Settling claim.
11. Financing the transactions and paying for goods and service received.

(i) Documents Related to Goods :
(1) Indent
(2) Credit of Origin
(3) Certificate of Inspection
(ii) Documents Related to Shipment:
(1) Mate's Receipt
(2) Shipping Bill
(3) Shipping Order
(4) Bill of Lading
(5) Marine Insurance Policy
(6) Consular Invoice
(7) Railway Receipt / Lorry Receipt
(iii) Documents Related to Payments :
(1) Letter of Credit
(2) Commercial Invoice
(3) Bills of Exchange
(4) Bank Certificate of Payment.

 Sl.No   Basis   Domestic Business   International Business    1 Meaning  This represents a document acknowledging the receipt of goods on board for carrying them over to specified port of destination It refers to an agreement to hire a whole or major part of ship when the goods take exported is heavy.   2 Transferable  It can be transferred to third party by endorsement and delivery It cannot be transferred to third party   3 Loan Loan can be raised against it Loan cannot be raised it.   4 Crew Master and crew remain the agent of the ship owner Master and crew become the agent of exporter for a temporary period.   5 Lease It is not a lease of ship It is a lease of ship.

Export Trade Procedure:
An exporter has to fulfill the formalities given below to of export the goods out the country.
a) Receiving Trade Enquiry:
Exporter receives trade enquiry (written request) from the importer /his agent who intends to buy the product.
b) Receiving Indent and Sending Confirmation:
1. After the scrutiny of quotation / proforma invoice, the buyer who intends to buy the goods sends an indent to exporter.
2. The latter may either receive the order directly from the importer or through an agent who acts as an intermediary between the exporter and the importer.
3. The agent receives commission for this intermediating service.
4. An indent actually points to an order received from abroad for export of goods. i.e. sale of goods. The indent contains the details in the box.
Arranging Letter of Credit:
1. Under this stage exporter intends to satisfy himself/herself about the trustworthiness of the importer.
2. In this case the exporter is requested to arrange a letter of credit in his favour.
3. Letter of credit is an undertaking by its issuer (importer's bank) that bills of exchange drawn by the foreign dealer on the importer will be honoured upon its presentation by exporter's bank up to a specified amount.
d) Obtaining Importer Exporter Code (TEC) and RBI code Number:
1. Exporter has to apply in Aayaat Niryaat Form 2A(ANF2A) to the Regional Authority of the Director General of Foreign Trade (DGFT) in the region where the registered office of the company is located.
2. Exporter has to mention the number in all the shipping documents.
3. However IEC number is not required where the goods are exported/imported for the personal use of importer and not for trade/ manufacture or agriculture purpose.
e) Obtaining Registration cum Membership Certificate (RCMC) from Export Promotion Council /Commodity Board:
An Exporter is required to obtain RCMC from Export Promotion Councils/ Commodity Board/Development Authority in order to avail himself/herself of export incentives, concessions, and other facilities offered by Government e g.cash compensatory support and benefit of promotional scheme from Government.
f) Manufacturing /Procuring Goods and Packing items:
Exporters steps into manufacturing and procuring of goods required by the importer.
g) Export Inspection Certificate:
After the goods have been packed as per the specifications of importer, the exporter has to apply to the Export Inspection Agency (EIA) or other designated agency in this connection.
h) Insurance of Goods:
Exporter has to arrange for getting the goods insured to protect them against the various risks like deterioration, collision, immersion, fire, entry of sea water, etc. as per the instructions of importer if any.
i) Certificate of Origin:
1. Import regulation of foreign countries may require that all this import consignments must accompany a certificate of origin.
2. This certificate certifies that goods which are exported have been manufactured in a particular country.
j) Consular Invoice:
1. Where the customs duties are charged on the basis of value of goods at import's port (ad-valorem basis), the customs officers are empowered to open the consignment to calculate duties.
2. In order to avoid this problem exporter obtains consular invoice and sends it over to the importer
k) Engagement of Forwarding Agent:
1. After Export Inspection certificate is obtained, the exporter has to obtain clearance from customs authorities.
2. Generally exporters engage Clearing Forwarding Agent to fulfill various custom formalities. The latter do it for fees.
l) Dispatch of Goods to Port and Sending the Receipt to Agent:
The exporter will send the goods over to port town by rail or by truck and endorse the Railway Receipt (R/R) or Lorry Receipt.(L/R) to forwarding agent's favour with necessary instructions.
m) Fulfilment of Customs Formalities by Forwarding Agent:
1. Taking the Delivery of Goods at Port Town
2. Obtaining Shipping Order
3. Charter Party
n) Customs Clearance:
1. The exporter or his agent prepares three copies of shipping bill in printed form.
2. The shipping bill contains the details like name and address of exporter, description of goods, value of goods, volume of goods , identification marks on the goods, port of destination and port of loading.