Rakha Garments has received an order to export 20,000 men's trousers to Swift lmports Ltd. Located in Australia. Rakha garments makes necessary enquiry about the credit-worthiness of Swift Imports Ltd. and demands a latter of credit from it. After a week, Rakha garments gets a latter of credit issued by the importer's bank.
Discuss the six-steps procedure that Rakha Garments would need to go through for executing the export order.

Explanation

Following is the procedure that Rakha Garments would need to go through for executing the export order of 20,000 men's trousers:
(i) Obtaining Export Lioense: Rakha Garments would obtain export license. For this, it would open a bank account, obtain Import Export Code (IEC) number and get registered with the appropriate export promotion council and Export Credit and Guarantee Coporation (ECGC).
(ii) Obtaining Pre-shipment Finance and Production or Procuring: Garments will approach its banker for obtaining pre-shipment finance to undertake production or procurement of trousers as per the specifications of the importer.
(iii) Pre-shipment Inspection. Excise Clearance and Obtaining Certificate of Origin: Rekha Garments will obtain 'Certificate of Inspection ' after satisfying the designated agency that only good quality trousers are being exported. Rekha Garments will also apply to the concerned Excise Commissioner in the region with an invoice for the excise clearnce. It will also obtain 'Certificate of Origin' from the trade consulate.
(iv) Reservation of Shipping Space Packing. Forwarding and Insurance: Now Rekha Garments will approach the shipping company for shipping space and obtain shipping order. Rekha Garments will pack the trousers properly and mark with necessary details. It will make arrangments for forwarding the goods to the portand will take an insurance policy.
(v) Customs Clearance and Port For malities: Now Rekha Garments will prepare Shipping Bill and get clearance from the Customs House. The goods are then loaded on board the ship for which captain of the ship issues Mate's Receipt Rekha Garments would make payment of freight and obtain a bill of lading.
(vi) Preparation of Invoice and Securing Payment : After sending the goods, an invoice will be prepared by Rekha Garments. It will submit all relevant documents to the bankk for getting payment. The bank will give these documents to the importer only after ensuring the payment.