Export terms, in plain English

A

AD bank

An Authorised Dealer bank: a bank licensed by RBI to handle foreign exchange. Exporters route realisation, write-offs and extensions through their AD bank. Read more

ARN

Application Reference Number: the acknowledgement the GST portal issues when you file a form, such as the LUT. Many exporters quote the LUT ARN on every export invoice. Read more

B

Bill of lading (B/L)

The carrier’s receipt for goods shipped by sea, and usually the document of title. The air equivalent is the airway bill (AWB).

C

CBIC exchange rate

The exchange rate notified by the Central Board of Indirect Taxes and Customs, usually twice a month. Used for customs and for valuing exported goods under GST. Read more

CIF

Cost, Insurance and Freight (Incoterms 2020): the seller pays main sea freight and minimum insurance; risk passes to the buyer once the goods are on board. Read more

Commercial invoice

The seller’s invoice to the buyer for the goods or services. For Indian exporters it is also the GST tax invoice, with export-specific details and endorsement. Read more

Country of destination

The country the goods are going to. GST rules require it on export invoices, along with the recipient and delivery addresses. Read more

E

e-BRC

Electronic Bank Realisation Certificate, generated on the DGFT platform from bank data. Proof that export proceeds were realised; used for incentives and GST refund checks. Read more

EDPMS

Export Data Processing and Monitoring System: RBI’s system that matches shipping bills from customs with realisations reported by banks. Unmatched bills show as outstanding. Read more

EGM

Export General Manifest: the carrier’s declaration to customs of the goods loaded. Without it, IGST refunds on exported goods are not processed. Read more

Export of services

A supply of services that meets all five conditions in Section 2(6) of the IGST Act, including a recipient and place of supply outside India and payment in foreign exchange. Read more

F

FCA

Free Carrier (Incoterms 2020): the seller hands the goods, cleared for export, to the buyer’s carrier at a named place. Recommended over FOB for containerised goods. Read more

FIRA / FIRC

Foreign Inward Remittance Advice / Certificate: your bank’s proof that money was received from abroad, and how much. Read more

FOB

Free On Board (Incoterms 2020): the seller clears the goods and loads them on the vessel; risk passes once on board. Customs values exports on an FOB basis. Read more

G

GSTR-1 Table 6A

The table in the GSTR-1 return where export invoices are reported, marked WPAY or WOPAY, with shipping bill details for goods. Read more

H

HSN / SAC

Harmonised System of Nomenclature codes classify goods; Services Accounting Codes classify services. Both go on each invoice line. Read more

I

ICEGATE

The customs e-commerce portal where shipping bills, refund status and bank-account registration for IGST refunds are handled. Read more

IEC

Importer-Exporter Code: the 10-character code from DGFT that every exporter needs; it appears on the shipping bill.

IGST

Integrated GST, charged on inter-state and cross-border supplies. Exports are zero-rated: IGST is either not paid (under LUT) or paid and refunded. Read more

Incoterms

Standard trade terms from the International Chamber of Commerce (current edition: 2020) that set who pays for transport and insurance and where risk passes. Read more

L

Let export order (LEO)

Customs permission for goods to be exported once the shipping bill is assessed and goods examined. Its date is commonly used as the date of export.

LUT

Letter of Undertaking (GST form RFD-11): lets a registered exporter export without paying IGST. Filed for each financial year. Read more

P

Place of supply

The location that decides which GST applies. For most cross-border services it is the recipient’s location, with specific exceptions. Read more

R

Realisation

Receiving the export proceeds in India, within the period RBI sets (commonly nine months from export; check the current RBI direction). Read more

RFD-01

The GST refund application form, used by LUT exporters to claim a refund of unutilised input tax credit. Read more

S

Shipping bill

The export declaration filed with customs. Its invoice number and date must match the invoice and GSTR-1 exactly. Read more

SWIFT charges (OUR / SHA / BEN)

Options set by the paying bank for who bears wire fees: the sender (OUR), shared (SHA) or the beneficiary (BEN). Read more

W

WPAY / WOPAY

Export types in GSTR-1: with payment of IGST (refund via shipping bill) or without payment (under LUT or bond). Read more

Z

Zero-rated supply

Exports and supplies to SEZs under Section 16 of the IGST Act: no GST burden on the supply, with input tax credit still available. Read more

General information, not tax or legal advice. Missing a term? Tell us.