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EIR Full Form: Understanding the Equipment Interchange Receipt in Shipping Logistics

EIR Full Form: Understanding the Equipment Interchange Receipt in Shipping Logistics

India’s shipping industry is a cornerstone of its global trade, with ports like Mundra and Chennai facilitating billions in exports annually. Efficient logistics demand meticulous documentation to ensure smooth cargo movement and accountability. The Equipment Interchange Receipt (EIR) is a critical document in this process, verifying container transfers and conditions. Knowing the EIR's full form and its role is essential for exporters and logistics professionals aiming for seamless operations.This blog explores the EIR in full form in shipping, its significance, and practical applications in logistics. Written in clear, simple language, it is tailored for everyone, from small traders in Coimbatore to large freight forwarders in Mumbai. Whether you ship textiles or electronics, mastering the EIR can enhance your supply chain. Let us dive in!What Is an Equipment Interchange Receipt (EIR)?The EIR full form is an Equipment Interchange Receipt, a document issued by a shipping line or carrier to confirm the transfer of a container between parties, such as from a terminal to a trucker or between vessels. It records the container’s condition, shipment details, and transfer specifics, acting as a “handover checklist” to ensure accountability. The EIR is updated at each interchange point, like ports, depots, or yards, and includes an inspection to verify the container’s seaworthiness.Why Is the EIR Vital in Shipping Logistics?The Equipment Interchange Receipt is indispensable in shipping logistics for its role in transparency and accountability. Industry insights highlight its importance in preventing disputes and ensuring operational efficiency. Here are the key reasons it matters:Tracks Container Movement: Records transfers between interchange points, like ports or depots, clarifying where the container is at any time.Documents Container Condition: Inspections during transfers note any damage, helping identify responsible parties and avoid disputes.Ensures Seaworthiness: Verifies containers are fit for transport, critical for long sea voyages from India to Europe or the USA.Facilitates Customs and Logistics: Provides essential details, like container numbers, for customs clearance and logistics coordination.Supports Accountability: Acts as a receipt for shippers, truckers, and terminals, ensuring all parties agree on the container’s status.For instance, a Bangalore-based electronics exporter shipping to Singapore can use an EIR to confirm the container’s condition at Chennai Port, preventing costly disputes over damage during transit.Who Issues an EIR in Shipping?The EIR is issued by the shipping line or carrier that owns the container, as they oversee its movement and condition across interchange points. Shippers or freight forwarders cannot issue EIRs as they do not own the containers, but they relay the document to customers. In India, major carriers like Maersk or MSC generate EIRs at ports like Mundra or Kolkata, providing copies to truckers and requestors for verification.Key Details on an Equipment Interchange ReceiptAn EIR contains critical information to ensure transparency and compliance. While templates vary by carrier, typical details include:Shipping line: Name of the carrier owning the container.Container number: Unique identifier, like MSKU1234567, following a standard container number format.Vessel and voyage number: Details of the ship and its specific journey.Container type and size: Specifies if it is a 20-foot or 40-foot container, e.g., 45G1 for a 45-foot high cube general-purpose container.Container seal: Unique seal number to secure the container.Load status: Indicates if the container is full or empty.Gross weight: Total weight of the container and cargo.Container condition: Inspection notes on damages or seaworthiness.Port of loading and destination: Origin and endpoint, like Nhava Sheva to Rotterdam.Terminal: Location of the transfer, such as a port or depot.Receiving and delivery details: Locations and dates of handovers.Signatures: From the carrier, trucker, and requestor for verification.Understanding Container Number FormatThe container number format is a standardised code used in EIRs to identify containers uniquely. It follows the ISO 6346 standard, consisting of 11 characters:Prefix: Four letters, where the first three indicate the owner (e.g., MSKU for Maersk) and the fourth denotes the equipment type (e.g., U for freight containers).Serial Number: Six digits, uniquely assigned to the container (e.g., 123456).Check Digit: One digit to verify the code’s accuracy (e.g., 7).Example: MSKU1234567 is a valid container number, where MSKU is the prefix, 123456 is the serial number, and 7 is the check digit.The code 45G1 on a container indicates its type and size: a 45-foot high cube general-purpose container, where "4" denotes length, "5" height, and "G1" a general-purpose design with ventilation.EIR vs. TIR: Key Differences The EIR is often confused with the TIR (Transports Internationaux Routiers) system. Here is a clear distinction:AspectEIR (Equipment Interchange Receipt)TIR (Transports Internationaux Routiers)DefinitionA document recording container transfers and conditions at interchange points.A customs transit system for road transport across borders.FocusContainer logistics, tracking condition and movement.International road transport with minimal customs checks.Issued ByShipping line or carrier.Customs authorities via TIR Carnet.ApplicationShipping, e.g., container handovers at ports like Mundra.Road transport, e.g., trucking through European countries.ExampleGujarat exporter uses EIR at Mundra Port for container transfer.Trucking goods through Europe with a TIR Carnet.Optimise Your Shipping with WareIQ’s SolutionsMastering the Equipment Interchange Receipt is vital, but efficient logistics require end-to-end coordination. WareIQ, a Y Combinator-backed e-commerce fulfilment platform, empowers Indian exporters to streamline shipping and documentation. Whether you are a spice trader in Kochi or a textile exporter in Tirupur, WareIQ ensures your containers move seamlessly from origin to destination.WareIQ offers:Nationwide Fulfilment Network: Store inventory in fulfilment centres across more than 12 cities, enabling rapid processing and export readiness.AI-Driven Inventory Management: Use Inventory LogIQ to track containers and align with EIR details, ensuring compliance.Seamless Integration: Connect with platforms like Amazon Global Selling or Shopify for real-time order and documentation tracking, including EIRs.Efficient Returns Management: Handle international returns with high-definition media evidence, minimising disputes over container conditions.Compliance Support: Receive guidance on export documentation, like EIRs and customs forms, for hassle-free shipping.By integrating EIR management with WareIQ’s technology, you can enhance traceability, reduce disputes, and deliver exceptional value to global customers.Wrapping UpThe EIR full form, Equipment Interchange Receipt, represents a cornerstone of shipping logistics, ensuring transparency and accountability in container transfers. Critical for Indian exporters, EIR tracks container conditions, facilitates customs clearance and prevents disputes, whether shipping from Mundra to Rotterdam or Chennai to Singapore. Understanding container number formats, like MSKU1234567 or 45G1 codes, further enhances logistics precision.With partners like WareIQ, you can streamline EIR processes and elevate your supply chain, ensuring timely deliveries and satisfied clients. Verify details, digitise records, and coordinate with carriers to optimise your operations. In India’s thriving export market, the EIR is your key to logistics success!Also check - CFS Full Form , ETD Full Form, PTL Full FormFrequently Asked QuestionsWhat does EIR stand for in shipping?EIR stands for Equipment Interchange Receipt, a document confirming container transfers and conditions between parties like terminals or truckers.Who issues EIR in shipping?The shipping line or carrier owning the container issues the EIR, coordinating its movement and condition across interchange points.What is the difference between TIR and EIR?EIR is a receipt for container transfers in shipping, while TIR is a customs transit system for road transport across borders using a TIR Carnet.What is the full form of the ER copy in shipping?There is no standard “ER copy” in shipping; it may be confused with EIR (Equipment Interchange Receipt) or other documentation. Clarify with the carrier.What is the full form of EIR?The full form of EIR is Equipment Interchange Receipt, documenting container handovers and conditions in shipping logistics.What does EIR mean in logistics?In logistics, EIR refers to the Equipment Interchange Receipt, verifying container transfers, conditions, and shipment details at interchange points.What is an example of a container number?An example is MSKU1234567, where MSKU is the owner prefix, 123456 is the serial number, and 7 is the check digit.What is the format of the container code?The container code format per ISO 6346 includes four letters (prefix), six digits (serial number), and one check digit, e.g., TGHU9876543.What is the container number pattern?The pattern is four letters (three for owner, one for type) followed by six digits and a check digit, like CMAU4567890.What does 45G1 mean on a container?45G1 indicates a 45-foot-high cube general-purpose container, where “4” is length, “5” is height, and “G1” denotes a ventilated general-purpose design.

September 30, 2025

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ISPS Code: Ensuring Safety in Global Maritime Transport

ISPS Code: Ensuring Safety in Global Maritime Transport

Technological advancements also bear higher threats when it comes to the shipping industry, primarily cyber-attacks that can paralyse even a shipping giant. Likewise, rogue vessels can pose a threat to critical undersea infrastructure. These risks require a robust maritime security structure to be in place. In 2023 alone, the shipping industry faced approximately 64 cyber attacks, which were partially attributed to geopolitical tensions. The International Maritime Organisation (IMO) has established a comprehensive framework following the 9/11 attacks to safeguard ships and port facilities. This framework is known as the International Ship and Port Facility Security (ISPS) Code. The shipping industry must comply with the ISPS code to maintain maritime safety on a global level. It is essential to understand what the structure is and its objectives.This article explains the ISPS code, including its structure, objectives, and significance in the modern yet complex maritime landscape.What is the ISPS Code?The ISPS full form in shipping is the International Ship and Port Facility Security Code. The International Maritime Organisation (IMO) introduced and developed the code. As of July 1, 2004, it became a mandatory requirement to be followed under the Safety of Life at Sea (SOLAS) Convention.The ISPS code provides a standardised framework for evaluating and managing risks in maritime security. The code outlines the scope and responsibilities of port facilities, crew members, shipping companies, shipboard personnel, and the government in detecting and preventing security threats.Under the ISPS codes, all ports and ships must have contingency plans in place for emergencies, which will help reduce the likelihood of threats. The code also enables the government to prevent terror attacks faced by maritime organisations. Structure of the ISPS CodeThe ISPS code guidelines are structured into two parts. Part A and Part B. Both parts are explained below:PART A: Mandatory RequirementsVarious sections under part A of the ISPS codes are;Both ships and port facilities are to conduct security assessments to identify potential security threats. Both entities must also develop necessary measures in the event of a security threat.Based on the security assessments, ships and ports must have security plans that the flag state should approve.Ships and ports must have security officers responsible for the security plans. Ships must have a designated Ship Security Officer responsible for ensuring the onboard security. Additionally, every shipping company must have a security officer responsible for ensuring the fleet’s security and compliance with the ISPS Code. Also, every facility needs to have a Port Facility Security Officer responsible for implementing and maintaining the security and safety of the port.The ISPS Code also outlines various measures and procedures for different security levels. Certain security measures and procedures under the ISPS code include access control, monitoring of the facility perimeter, control of a ship, and methods for handling cargo and ship stores.PART B: Compliance GuidelinesHere are the comprehensive guidelines as per part B, which are essential for the implementation of part A:Part B provides guidelines and best practices for training security personnel, including SSO (ship security officer), CSO (company security officer), and PFSO (port facility security officer).Part B also outlines security procedures that can be implemented at different ISPS security levels.The section explains steps which are necessary to conduct an assessment to ensure complete security. Moreover, it features a checklist that helps in developing security response plans.Objectives of the ISPS CodeThe ISPS code was introduced as a safety net for the maritime sector, especially in response to incidents such as 9/11. The objectives of the ISPS code are explained below:The primary objective is to establish a standard framework on a global level that aims to evaluate and manage risks. It is similar to how organisations streamline their logistics operations to handle any disruptions and ensure complete efficiency.Another objective of the ISPS code is to prevent any incident from occurring. This can be achieved through risk assessment, alert levels, and surveillance systems, which can help reduce privacy violations, terrorism, and smuggling.To ensure that each stakeholder, such as the ship’s security officer, has been assigned a duty. This segregation of duty shows effectiveness.Ensuring that ships and ports adhere to ISPS codes will ensure a smooth clearance process, which will also help reduce downtime.Another objective is to make sure the ships and ports are safe and secure, leading to the facilitation of global trade.Also check - What Is a UPC Code, and Why Is It Crucial for Retail?Significance of the ISPS Code: Why Does It Matter?Given the fact that over 80% of world trade is via sea. It is crucial to have a centralised maritime security protocol. Here is why the ISPS code is of significance when it comes to global trade:The ISPS code safeguards the global trade infrastructure, as even a single breach can cause economic chaos and disrupt a global supply chain. The code functions like a firewall, protecting global trade.As the ISPS code mandates constant surveillance, security rules, and security evaluations, it ensures that goods are protected against both theft and damage.Considering the different levels of security under the ISPS code, it also helps prevent weapons and drug trafficking and illegal immigration, as well as potential terrorist entry via sea routes.The ISPS also mandates regular training and security drills that help the maritime staff develop a security-first mindset, which is essential for reducing human errors in the security of ships and ports. Related read - IMDG Code: What It Is and Why It’s Vital for Dangerous GoodsSafe and Secure Trade Across Countries Now Possible With Shipping Solutions from WareIQ WareIQ’s smart shipping solution helps eCommerce brands minimise cost leakages caused by RTOs, fake delivery attempts in NDR, weight reconciliation issues, and more. Our solution also offers prompt support for handling urgent client escalations, ensuring smooth operations at all times.Our solution offers the following capabilities:Multi-carrier engine enabling fast deliveries across 24,000+ pin codesControl Tower & automated workflows to minimise NDR & RTOsSame/Next-day delivery courier optionsSeamless Integration with your WMS, ERPs and StorefrontsShipping Badges to display precise Estimated Delivery Dates (EDD)Custom branded tracking pages and notifications to enhance customer experienceAlso check - Courier HSN Code and Its ImportanceEAN CodeConclusionToday, the world relies on secure and seamless logistics for everyday essentials, including medical supplies, daily necessities, and more. The International Ship and Port Facility Security (ISPS) is a protector behind the scenes. It is significant in ensuring that global trade doesn’t fall victim to threats beneath the surface of the sea, whether it is cyberattacks, smuggling, or even terrorism. The ISPS code sets clear guidelines and enforces standard procedures while fostering international collaboration and facilitating safe and secure global trade. It is, therefore, essential for ships, ports, shipping companies, and government authorities to understand and adhere to the ISPS Code.Suggested - Different Types of Tariffs and Tariff Codes with ExamplesFAQs About The ISPS CodeHow are the security levels categorised under the ISPS code?There are three security levels, namely level one, which outlines routine security measures. Second, level two outlines heightened measures to be taken, and level three mentions a specific incident.What are the penalties for non-compliance with the ISPS code?Ships that do not comply with the ISPS code can be denied entry to a port, and the vessel can be detained or delayed. Blacklisting is also possible in rare cases, which can result in significant operational losses.Is ISPS compliance mandatory for domestic shipping as well?No, the ISPS code compliance is only required during international shipping and at the port that facilitates serving vessels involved in global trading.Can ISPS compliance be done with digital tools?Yes, many companies utilise maritime security management software for incident tracking, compliance management, real-time communication, and document management.

September 29, 2025

Transportation of Dangerous Goods: What You Need to Know

Transportation of Dangerous Goods: What You Need to Know

Every day, around 800,000 shipments containing hazardous goods are shipped globally, contributing to a massive total of 3.1 billion tonnes annually. The dangerous materials range from flammable liquids to toxic substances. Such goods are shipped across continents as they are required in industries such as mining, agriculture, manufacturing, and pharmaceuticals. Considering the nature of the goods, the transportation of dangerous goods is governed by strict regulations. It is to prevent accidents that can endanger the environment, property and people. If you are a warehouse operator or logistics operations manager, it is essential to understand how to handle dangerous goods safely. In this article, we will explain everything that you must know about the transportation of dangerous goods.What Is Transportation of Dangerous Goods?Dangerous goods are also known as hazardous goods. Another word used for such goods is hazmat. These materials pose several risks to the health of people involved in handling such goods, the property on which they are dealt with, and the environment during transit. Some examples of dangerous goods include flammable liquids, explosives, toxic substances, radioactive materials, and infectious substances.Dangerous Goods: Classification The United Nations has established a classification system for dangerous goods. The dangerous goods are categorised into nine classes based on the risk they pose. Each class may have further subdivisions for better categorisation. Below are the nine dangerous goods classifications and their examples:ClassHazard TypeExamplesClass 1ExplosivesFireworks, ammunition, blasting capsClass 2GasesPropane, butane, and oxygen cylindersClass 3Flammable LiquidsPetrol, ethanol, and acetoneClass 4Flammable Solids; Substances Liable to Spontaneous CombustionPhosphorus, metal powdersClass 5Oxidising Substances and Organic PeroxidesHydrogen peroxide, ammonium nitrateClass 6Toxic and Infectious SubstancesCyanide, biomedical wasteClass 7Radioactive MaterialUranium, medical isotopesClass 8CorrosivesSulfuric acid, battery acidClass 9Miscellaneous Dangerous SubstancesLithium batteries, asbestos, dry iceWhy Is It Essential To Have Proper Transportation of Dangerous Goods Management?Considering the complexities that can happen if the transportation of dangerous goods isn’t done properly, it is essential to manage the transportation efficiently. Here is why it is necessary to have an efficient transportation of hazardous goods management system in place:1. SafetyIf the dangerous goods are transported without complying with the regulations. It can cause major disasters. Take the 2020 Beirut explosion, for example, where it was found that the storing of ammonium nitrate was improper. It further led to the killing of more than 200 people. This incident highlights the importance of handling dangerous substances correctly when they are transported overseas.2. Legal ComplianceTo reduce the risks included with the transportation of dangerous goods, several international and national frameworks must be adhered to, depending on the country and mode of transportation. Some regulations are listed below:UN Model Regulations: These regulations are applicable globally for all modes of transportation.ADR: Primarily applicable in Europe for the transportation of dangerous goods via road.IMDG code: It is applicable globally for the transportation of dangerous goods via sea.ICAO-TI/IATA-DGR: It is applicable globally for the transportation of dangerous goods via air.CMVR: Applicable in India for the transportation of hazardous goods via road.3. Environment ProtectionA leak or a spill of any hazardous substance can cause long-term environmental damage. Thus, it becomes imminent to ensure that proper packaging, documentation, and containment of dangerous goods and substances are in place to prevent disastrous incidents.4. Economic Stability An incident of hazardous chemicals leaking into the sea can cause the shutdown of shipping lanes, which can also delay operations and lead to heavy fines. Hence, it is essential to have an efficient transportation of dangerous goods so that these economic implications can be avoided.Also read - Transportation Charges GST Rate: What You Must KnowHow Can Companies Ensure Safety While Transporting Dangerous Goods?When dangerous goods are transported overseas, they require care and attention, as even a small negligence can pose a significant risk. Therefore, companies need to ensure that the transportation is risk-free. Below are practices that companies can implement to ensure that dangerous goods are transported in a safe manner.1. Compliance With Regulations A company must identify the international regulations to be followed, depending on the country and the type of goods being transported. Compliance regulations, such as ADR, IMDG, and IATA, outline various criteria, packing requirements, labelling, marking, documentation, and other essential procedures that the companies must follow.2. Proper Packaging Considering the nature of the hazardous substances, companies must take great care in packaging according to the approved guidelines of international regulations. This will ensure that the transportation is safe and there are no risks to either people or the environment when the dangerous goods are in transit. 3. DocumentationA detailed consignment note must be included with the transportation of the dangerous goods, which includes all the information about the materials inside the shipment. As this is a mandatory requirement, failure to comply can result in legal action.4. Regulatory Checks Companies must conduct a thorough regulatory check to ensure that all loading, packing, documentation and labelling comply with safety requirements. The checks must be done before the shipment is transported. 5. Correct MarkingIt is crucial to pay attention to the correct marking of vehicles transporting dangerous shipments. The markings will ensure that other vehicles are aware of the shipment’s contents and can take precautions to drive safely around it.Suggested read - What Are Complementary GoodsShip Dangerous Goods Safely With Carefully Curated Shipping Services From WareIQWareIQ’s smart shipping solution helps eCommerce brands minimise cost leakages caused by RTOs, fake delivery attempts in NDR, weight reconciliation issues, and more. Our solution also offers prompt support for handling urgent client's escalations, ensuring smooth operations at all times.Our solution offers the following capabilities:Multi-carrier engine enabling fast deliveries across 24,000+ pin codesControl Tower & automated workflows to minimise NDR & RTOsSame/Next-day delivery courier optionsSeamless Integration with your WMS, ERPs and StorefrontsShipping Badges to display precise Estimated Delivery Dates (EDD)Custom-branded tracking pages and notifications to enhance customer experienceTrending - India as a Global Manufacturing and Fulfilment Hub: Growth, Opportunities & Key AdvantagesConclusionWhen dangerous goods are transported from one country to another or from one continent to another, it is more than just everyday work for companies. It is also about public safety and environmental responsibility. Hence, it becomes essential for shipping companies to choose the right processes, technology and training to handle the transportation of dangerous goods efficiently. It is also necessary to comply with legal regulations to avoid shutdowns of shipping operations, delays, and economic losses. Also check - Top Packaging Materials for Safe and Effective ShippingFAQs About Transportation of Dangerous GoodsWhich goods are classified as dangerous goods?Goods or substances that can pose a risk to either health, property, safety, or the environment when they are transported are classified as dangerous goods. Goods which are toxic, flammable or corrosive are generally considered hazardous goods.Can any logistics provider transport dangerous goods?No, only companies that have the right licences are certified carriers of dangerous goods. Besides the licence, the company also needs to have trained staff and vehicles that comply with regulations.What packaging should be used for hazardous materials?Transportation of hazardous materials requires UN-certified packaging. These packagings include drums, boxes, and cylinders, which are designed to contain substances safely.How are dangerous goods classified?The dangerous goods are classified into nine classes, including explosives, gases, flammable liquids, and radioactive materials. Besides the nine classes, there are also subdivisions.Is special training required for personnel handling dangerous goods?Yes, whether it is drivers or handlers, personnel involved in the transportation of dangerous goods must have training as mandated by international or national regulations, such as ADR, IATA-DGR, or the UN Model Regulations.

September 26, 2025

Flipkart Big Shopping Utsav 2025: Inventory & Delivery Planning

Flipkart Big Shopping Utsav 2025: Inventory & Delivery Planning

The Indian e-commerce industry is growing each year. In the 2024 festive sales period, online e-commerce marketplaces experienced a dramatic surge in both purchases and visitors. Several e-commerce platforms saw increased demand, mainly from tier 2 and 3 cities. Flipkart is one of the top e-commerce platforms, which gets millions of customers visiting the platform every day. The traffic rises drastically during sale events such as the Flipkart Big Shopping Utsav. One of Flipkart's flagship events, the Big Billion Day sale, saw 7.2 billion customer visits.This huge number indicates the opportunity for sellers who wish to excel by selling products online. As the Flipkart Big Shopping Utsav approaches, consumers expect even earlier deals, quicker dispatches, and timely delivery across pin codes. Sellers must prepare in advance to maximise the sale's potential.In this guide, we will explain how sellers can plan their inventory and delivery to maximise profits and attract as many customers as possible during the Big Shopping Utsav by Flipkart. Big Shopping Utsav Flipkart Date 2025According to reports, the Big Shopping Utsav by Flipkart is scheduled to begin on October 14, 2025. It is perfectly timed to meet the demand that rises during the Diwali sale. It is strategically placed between the Big Billion Day and the Diwali mega sale 2025. Why Is Having an Inventory Strategy for the Flipkart Big Shopping Utsav Sale Essential?The Flipkart Big Shopping Utsav Sale isn't just another discount event; it comes with Flipkart Utsav offers and amazing Flipkart deals and discounts. This will attract millions of buyers and a grand opportunity for sellers. A well-planned inventory strategy for Flipkart Big Shopping Utsav Sale ensures you have the right products at the right locations, ready to ship quickly, helping you capture the surge in demand while keeping operations smooth.Here is why inventory management is vital for sellers:Spike in Demand: Festive sales see up to 3x–5x normal order volumes. Electronics, fashion, home appliances, and lifestyle goods are the primary categories.Stockouts Cost Visibility: Once a product goes out of stock, it loses momentum in Flipkart's algorithm.Delivery Deadlines: Consumers are willing to pay for faster delivery, but only if sellers can promise (and fulfil) within Flipkart's SLAs.Returns & Reverse Logistics: Festive sales often experience return rates of 20–25% in categories such as fashion. Planning for this is as important as forward logistics.Inventory Strategy for Flipkart Big Shopping Utsav SaleSellers cannot afford to leave room for mistakes by ignoring their inventory. To make profits during the Flipkart Big Shopping Utsav 2025, sellers have to follow a layered inventory strategy:1. Forecast Demand with PrecisionReview your Flipkart Big Billion Days 2024 performance and past festive sale trends. For example, electronics saw record orders, while fashion items had the highest return rates.Flipkart provides real-time category insights, trending products, and sales velocity data, which it uses to refine forecasts. Additionally, since a majority of orders originate from tier 2 and 3 regions, ensure that regional preferences are reflected in your stock planning.2. Categorise Products Based on VelocitySome products sell out faster, while others can end up as dead stock. Hence, segmenting helps in planning stock placement.Here is how sellers can categorise:Fast-Moving SKUs: Mobile phones, electronics, and fashion basics. Keep these in Flipkart fulfilment centres (FBF).Moderate SKUs: Home & kitchen, lifestyle products. Place some in Flipkart FCs and some in your warehouse.Slow Movers/Niche SKUs: Premium or seasonal items. Manage through self-fulfilment to avoid storage cost build-up.3. Leverage Fulfilment by Flipkart (FBF)FBF helps with faster delivery, higher visibility in listings, and reduced return to origin RTOs. Sellers must send forecasted stock at least 3 weeks before the Big Shopping Utsav Flipkart date.Prioritise your bestsellers. If space or budget is limited, ensure your high-demand SKUs are always in FBF.4. Smart Inventory PlacementTo ensure lightning-speed deliveries, sellers must place stock tactically closer to in-demand regions. For example, festive ethnic wear sells heavily in North India, while home appliances sell more quickly in South India. Place accordingly.Also, keep 10–15% additional units in reserve for last-minute surges, especially in fashion, where exchanges are high.5. Align Inventory with Flipkart Utsav Offers & DiscountsThe demand for your products will depend heavily on your discounting strategy. Hence, inventory must align with planned offers. Products promoted under Flipkart Utsav offers will see higher order velocity, so it is best to allocate 2-3 times more stock than on everyday occasions.Keep extra stock for SKUs under bank/EMI offers, as buyers often flock to these. Sellers can also bundle SKUs (such as headphones with mobile phones or bed sheets with pillows) and maintain a buffer inventory to meet combo demand.6. Prepare for Returns & Reverse LogisticsIt is a fact that during festive sales, returns also considerably rise by 20-25%. It is best to pre-allocate extra stock so that handling exchanges becomes easier. Sellers must also expect 2–3% damage in high-volume categories. Keep replacements ready to avoid cancellation penalties. Hence, using WMS (Warehouse Management Systems) to track returned inventory quickly and restock sellable items will be helpful.7. Maintain Cash Flow for Inventory ProcurementWhen planning to buy in high volumes, there is a need for upfront capital; hence, maintaining a stable cash flow is necessary. Besides, returns and refunds can considerably delay cash recovery.To maintain liquidity, you can also collaborate with financing partners, such as Flipkart's Seller Finance programmes or NBFC tie-ups.8. Real-Time Monitoring During the SaleThe sale is going to be dynamic, and one mistake can prove to be a big drawback for sellers. Hence, sellers must ensure real-time monitoring of activities, especially when the sale is live. Sellers can actively use Flipkart Seller Hub dashboards to track:Inventory levels per SKURegional demand spikesStockouts and fulfilment delaysBased on the findings, adjustments must be made if a SKU is trending, rerouting stock to FCs or pushing price promotions to underperforming items during the Flipkart Big Shopping Utsav.Flipkart Deals and Discounts: Preparing Pricing StrategySellers must focus on providing Flipkart deals and discounts to get maximum visibility. Here is what sellers can do:Bundle Offers: Combine complementary products to increase your cart value.Bank Tie-Ups & EMI Schemes: Align with Flipkart's partnerships for Axis, ICICI, and HDFC cards to provide Flipkart Utsav offers.Smart Discounting: Offer deeper discounts on high-velocity SKUs while maintaining moderate margins for niche products.Dynamic Adjustments: Monitor competitors and tweak pricing in real-time during the sale.Delivery Planning for Flipkart Big Shopping UtsavTo ensure that Flipkart Big Shopping Days do not experience operational downtime, sellers must plan their deliveries meticulously as well.  Ensure 2-day or 3-day delivery promises are realistic by mapping stock to buyer locations.Keep secondary couriers ready for high-volume days.Pre-pack hot-selling SKUs to reduce handling time during peak orders.Set up 24/7 support teams for escalations, as Flipkart prioritises sellers with strong service ratings.Benefits of Using WareIQ Fulfilment for Your Flipkart Marketplace Orders During the Flipkart Big Shopping UtsavSeamlessly integrate your Flipkart store and other marketplaces with WareIQ's fulfilment platform for hassle-free operations.Boost Flipkart order fulfilment speed by placing your inventory closer to customers through WareIQ's strategically located fulfilment centres (FCs).Enable multi-channel sales by making inventory stored in WareIQ's FCs instantly available across Flipkart and other e-commerce platforms.Accelerate Flipkart's sales growth with WareIQ's lightning-fast delivery network and reliable logistics support.Reduce losses with RTO protection and seamless returns management, backed by WareIQ's advanced fulfilment system.Conclusion The Flipkart Big Shopping Utsav, starting October 14, 2025, is much more than simply a random sale that sellers must prepare for well in advance. As millions of shoppers prepare for the exciting deals, the opportunity is massive, and so are the challenges. Concerns such as stockouts, delivery delays, and poor handling of returns can cause chaos and damage that is often irreparable. It is therefore necessary for the seller to devise robust inventory management strategies for the sale to maximise the efficiency of all operations and streamline them so that surging demand can be fulfilled with speed, accuracy, and service quality while maintaining profit margins. The Big Shopping Utsav on Flipkart is not about selling a huge volume; it is all about building customer trust, brand recall, and sustainable growth. With the right approach, this festive season can become the turning point that elevates your business to the next level.Also check - Flipkart Diwali Sale 2025: Inventory Strategies to Manage High Demand and Improve FulfillmentFAQsHow can sellers prepare inventory for Flipkart Big Shopping Utsav?Sellers should forecast demand, place fast-moving SKUs in Flipkart Fulfilment Centres (FBF), balance self-fulfilment for niche products, and maintain buffer stock for returns.Are returns higher during Flipkart Utsav offers?Yes, especially in fashion and lifestyle categories where return rates can touch 20–25%. Sellers should plan for reverse logistics and keep a buffer stock for exchanges.How can sellers maximise profits during the Flipkart Big Shopping Utsav 2025?By aligning discounts with Flipkart deals and bank offers, stocking high-demand SKUs in FBF, managing returns efficiently, and using analytics to track demand in real time.Why is inventory strategy important for sellers during Flipkart Big Shopping Days?Without proper inventory planning, sellers risk stockouts, delayed deliveries, higher returns, and lower visibility in Flipkart search results, which directly impacts sales.

September 25, 2025

IMDG Code: What It Is and Why It’s Vital for Dangerous Goods

IMDG Code: What It Is and Why It’s Vital for Dangerous Goods

Did you know that about 98% of the global merchant fleet operates under the IMDG code? The full form of IMDG is International Maritime Dangerous Goods. It is the essential rulebook for international shipping, especially for handling hazardous cargo. The International Maritime Organisation (IMO) sets the guidelines under the IMDG code. In this article, today we will look into what IMDG codes are, the purpose of these codes, their structure and how they can help safeguard people, property and the environment.What is the IMDG Code?The IMDG (International Maritime Dangerous Goods) codes are rules and guidelines developed by the IMO to ensure that safe maritime transport can happen. These rules are for hazardous materials. It was initially adopted in 1965 as a recommendation. However, the IMDG code became mandatory in January 2004 per the International Convention for the Safety of Life at Sea (SOLAS).Purpose of the IMDG Code in International Trade.The IMDG code has been strategically curated to make safe sea transportation possible. Let us look at the prime objectives of the IMDG code:The IMDG code ensures the safety of people on board, such as crew members and port personnel.One of the primary objectives of the IMDG code is to ensure that the environmental risk associated with hazardous cargo during international trade can be mitigated.As the IMDG code is standard across all countries, it can help streamline the global movement of dangerous goods.Key Components of the IMDG CodeThe IMDG code is primarily segregated into two volumes. There is also an additional section named Supplement. The structure of the IMDG code contents is explained below:Volume 1: Volume 1 contains general provisions, training requirements, definitions, safety measures, protocol, classification, packing, and labelling guidelines. It also covers safety protocols for the safe loading and unloading of goods. Outlines confinement procedures concerning the documentation. Volume 2: It features the Dangerous Goods List (DGL), which contains details on individual substances. It also includes the UN number, shipping names, and packing instructions. It also contains Appendix A, which lists general shipping names for dangerous goods commonly shipped, and Appendix B, which has a glossary of terms.Supplement: The supplement offers additional guidance, emergency response, and procedures for ships carrying various goods (EmS Guide) along with the Medical First Aid Guide (MFAG). It also covers the guidelines for the safe use of pesticides on ships. Also check - Difference Between Packaging and LabellingClassification of Dangerous Goods As Per IMDG CodesThe IMDG codes are categorised into nine different classes, depending on the inherent hazards they pose.1. ExplosivesThe substances that can cause explosive reactions. Other hazards due to explosives can lead to fire or the projection of fragments. Some examples include dynamite, ammunition, or fireworks.2. GasesCompressed, liquefied or dissolved gases. It is subdivided into flammable gases, flammable inert gases, and toxic gases. The hazards that gases can cause include explosion, fire, and poisoning. Some examples include propane, chlorine, and oxygen.3. Flammable LiquidsThese are liquids that are easily flammable and can lead to fires or explosions. The subdivision under classification includes flammable liquids with low flashpoints, flammable liquids with medium flashpoints, and flammable liquids with high flashpoints. Examples include gasoline, alcohol, and ethanol.4. Flammable SolidsSolid materials that can easily catch fire and are highly flammable are called flammable solids. The subdivisions under this classification include flammable solids susceptible to self-heating, substances that can ignite instantaneously and those that can emit flammable gases when they come into contact with water.Flammable solids can pose the risk of fire or explosion. Examples of flammable solids include magnesium, matches, or sulphur.5. Oxidising Substances and Organic PeroxidesOxidising substances are materials with a high chance of releasing oxygen, which can cause or increase combustion. Two subdivisions are the oxidising substances and organic peroxide under this classification.These substances pose risks such as fires and exothermic reactions. Examples of such materials include hydrogen peroxide and sodium chloride.6. Toxic and Infectious SubstancesThese materials harm human health, either via inhalation, ingestion or contact with the skin. The two subdivisions under this classification include toxic substances and infectious substances.These substances pose risks such as infections and poisoning. Examples include cyanide, medical waste, and pesticides.7. Radioactive MaterialsThese are substances which emit ionising radiation. The subdivision under this classification includes radioactive material of limited activity and radioactive material of high activity. A few examples include medical isotopes and uranium.8. Corrosive Substances.These are materials that cause severe damage to the living tissue. The subdivisions include substances corrosive to skin, substances corrosive to metals, and corrosive substances that attack other materials.It poses risks such as eye damage, burns, etc. A few examples include acids and alkalis.9. Miscellaneous Dangerous GoodsThese are materials that can present different hazards which are not covered in the above classification. Some examples of this classification include lithium batteries or substances that give off heat. Suggested read - What Is a UPC CodeSignificance of the IMDG CodeThe IMDG code has been structured to ensure that human life, goods on board and the environment are all safe while the transportation of dangerous goods occurs across countries. Here’s how the IMDG code is significant:When shipping firms comply with the IMDG codes by IMO, they can significantly mitigate the risk of accidents, protecting the crew members’ lives and safeguarding the vessels.IMDG codes' primary provision is to prevent marine pollution, ensuring that the transportation of dangerous materials and hazardous substances happens in a controlled way.Since compliance with the IMDG code is mandatory as per international law, failure to comply with it can also result in severe penalties and bans.Since regulations under the IMDG code are standardised, it can help streamline the international transportation of goods, facilitating global trade and commerce.Get Cargo Handling As Per the IMDG Code With WareIQ Shipping Solutions WareIQ’s smart shipping solution helps eCommerce brands minimise cost leakages caused by RTOs, fake delivery attempts in NDR, weight reconciliation issues, and more. Our solution also offers prompt support for handling urgent client escalations, ensuring smooth operations at all times.Our solution offers the following capabilities:Multi-carrier engine enabling fast deliveries across 24,000+ pin codesControl Tower & automated workflows to minimise NDR & RTOsSame/Next-day delivery courier optionsSeamless Integration with your WMS, ERPs and StorefrontsShipping Badges to display precise Estimated Delivery Dates (EDD)Custom-branded tracking pages and notifications to enhance customer experienceConclusionThe IMDG code has a very important role in the safe and seamless transportation of hazardous goods via sea. The guidelines mentioned under the IMDG code are key to protecting human life, protecting vessels, preserving the marine environment and also facilitating global trade and commerce. Every business involved in the maritime transport of dangerous goods must comply with the IMDG code without fail, as it is more than just a legal obligation. It is a commitment towards safety for humans as well as the Senvironment.Suggested - ISPS Code: Ensuring Safety in Global Maritime TransportFAQs About IMDG CodeWhat are the results of not complying with the IMDG code?Compliance with the IMDG code is mandatory, and hence, non-compliance can lead to penalties, including monetary fines, detention of vessels and even, in some cases, bans from ports.How often is the IMDG code updated?IMDG code is updated biennially to incorporate advanced safety measures and also to address if there are any emerging risks.Where can I access the latest edition of the IMDG code?The IMDG code can be obtained from the IMO's official website. You can also get it from other authorised distributors.Who needs to be trained as per the IMDG code for transportation via sea?All the people involved with handling, packaging, documentation, and transporting hazardous substances by sea need to undergo appropriate training for handling such substances as per the IMDG code.

September 24, 2025

Different Types of Tariffs and Tariff Codes with Examples

Different Types of Tariffs and Tariff Codes with Examples

Have you ever ordered something from overseas and noticed that taxes are higher than the actual cost of the product? Well, that is a tariff, an inclusive aspect of global trade. Talking about international trade, in 2024, global trade reached a record of $33 trillion. However, a study from the UN Trade and Development suggests that the worldwide trade growth by 2025 is a little uncertain. In these times, traders must understand tariffs and tariff codes to ensure smooth international trade growth. It is also essential, as tariffs highly impact product pricing, diplomatic relations, and supply chain strategies.This article will provide examples of the different types of tariffs and also explain different tariff codes.What Does Tariff Mean in Logistics?Tariffs are taxes imposed by the government on goods imported into the country and exported out of the country. Tariffs impact the cost of goods in the country, as when a product is imported, the overall cost increases due to different tariffs applicable, making it much more expensive for consumers.Besides impacting the product’s cost, tariffs also affect companies’ decisions about the final price of a product and the structure of their supply chain.8 Different Types of Tariffs As there are many different types of tariffs, it is essential to understand every type so that traders can do international trade seamlessly. Here are eight types of tariffs in international trade that a trader must be aware of:1. Ad Valorem Tariffs This type of tax is usually a percentage based on the value of the imported goods. It is mostly used for luxury goods, apparel, and electronics.Example: If the product value is $1000 and the ad valorem tariff is 15%, the duty to be paid is $150.2. Specific Tariffs This type of tariff is usually fixed in nature, and it is based on the quantity, whether it is per kilogram or per unit. The product’s price does not matter, as it is based only on the quantity. It is mostly used for raw materials and agricultural products.Example: If the specific tariff on coffee beans is $2 per kg, the importer must pay $200 for 100kg.3. Compound Tariffs A compound tariff is the combination of both a specific tariff along with an ad valorem tariff. It is often used for products that need tighter regulations.Example: A compound tariff might resemble a combination such as 5% of the value + $3 per item. For an item that costs about a hundred dollars, the duty is $5 (ad valorem tariff) + $3 (specific tariff) = $8 per unit.4. Protective TariffA protective tariff is designed to shield domestic industries from their foreign competitors. The final price makes the imported goods more expensive than domestically produced goods.Example: A country imposes tariffs on foreign agricultural products to secure local production.5. Retaliatory TariffThis type of tariff is imposed as a response to possible unfair trade practices which are imposed by other countries.Example: The US increased the tariff on China’s exports to 145%, and in retaliation, China increased the tariff on US exports to 125%.6. Revenue TariffRevenue tariffs are imposed to generate income for the government instead of protecting local industries.Example: Developing countries can impose tariffs of 10 to 15% on imported goods to fund public infrastructure.7. Import TariffThe tariff imposed on the item imported into a country is called the import tariff and is the most commonly used tariff.Example: The US imposes import tariffs on imported automobiles from Europe.8. Export TariffExport tariffs are tariffs that apply to goods that are sent out of a country. Export tariffs are openly used to restrict the export of rare resources.For example, if a country has fewer resources for agricultural goods, it will impose a higher export tax to restrict exports.Different Types of Tariff CodesTariff codes or Harmonised Systems (HS) codes are codes used in global trade to classify exported or imported goods. These codes are developed by the World Customs Organisation (WCO). A tariff number or a code helps to determine the applicable rate while ensuring that there is complete customs compliance. It also helps in facilitating international trade documentation seamlessly.Structure of Tariff CodeCode is numerical and varies in length depending on the country. It is usually 6 to 10 digits. The initial six digits are the HS code or the harmonised tariff system code.Apart from the six digits, the country adds additional digits to specify products per their needs.Example: TARIC (Integrated Tariff of the European Union) is used in Europe, apart from the HS code. Meanwhile, the HTS (Harmonised Tariff System) is used in the United States.How Are Tariffs and HS Codes Important for International Business?For an organisation that conducts international trade, it is essential to understand both the tariff and the respective tariff code, as it can affect them in more than one way:Applying the wrong tariff code can eat away at your profit margins.A wrong HS code classification can delay your shipment, result in penalties, and even get your goods seized.When correct HS codes are applied, it can help claim preferential tariff rates under the fair trade agreement and get duty exemptions or reductions.If your business can predict the tariff cost, it can also help you choose the right supplier, estimate costs more accurately, and plan inventory around imports.Understanding the custom tariff code and applying proper HS codes allows you to set your price competitively while staying profitable; it also helps in avoiding last-minute cost shocks.Applying correct tariff classification codes during customs clearance can build a solid track record with customs, logistics partners, and financial institutions.Also read- IMDG Code and What Is a Customs Tariff? Types and How They WorkGet Accurate HS Code Assignment and Tariff Handling With Specialised Solutions From WareIQWareIQ’s smart shipping solution helps eCommerce brands minimise cost leakages caused by RTOs, fake delivery attempts in NDR, weight reconciliation issues, and more. Our solution also offers prompt support for handling urgent client escalations, ensuring smooth operations at all times.Our solution offers the following capabilities:Multi-carrier engine enabling fast deliveries across 24,000+ pin codesControl Tower & automated workflows to minimise NDR & RTOsSame/Next-day delivery courier optionsSeamless Integration with your WMS, ERPs and StorefrontsShipping Badges to display precise Estimated Delivery Dates (EDD)Custom-branded tracking pages and notifications to enhance customer experienceAlso read - Understanding Custom Duty in India: A Comprehensive GuideConclusionTariffs and the respective tariff codes are cornerstones for any business that is involved in international trade. Whether you own an e-commerce business or you are into managing global supply chains, it is essential to understand how the tariffs and the subsequent HS code classification work. The understanding will allow you to have seamless processing. It will also help you to save money, time and regulatory hiccups.Suggested read - U.S. Trade Update: End of De Minimis Exemption and New Tariffs on India-Origin ShipmentsAlso check - HTS Explained: What Is the Harmonised Tariff Schedule?FAQs About Tariffs and Tariff CodesDoes every import coming into the country impose tariffs?No, although a majority of imports will have tariffs, there can be some products that can enter a country duty-free as part of trade agreements.What is the main difference between a tariff and a tariff code?A tariff is a tax often imposed on imports or exports; conversely, a tariff code is the tariff classification that helps identify goods.Do tariffs have any effect on e-commerce businesses?Yes, as tariffs can increase the landed cost of the product production imported into the country. It impacts the prices, the profit margin and also the competitiveness in the e-commerce industry.Does every country have the same HS code?The first six digits are standard HS codes, while there can be additional digits depending on the country and its national classification.

September 23, 2025

What Is a Letter of Credit? A Key in International Payments

What Is a Letter of Credit? A Key in International Payments

Every day, billions of goods are transported from one country to another. This international trade has been possible due to trust between companies. As per the World Trade Organisation, global trade is valued at $25.3 trillion in 2022. The question is, how do companies trust each other, and how do exporters trust importers to pay them? Well, the trust comes from the letter of credit. It is a beneficial financial instrument that is used in international commerce. A Letter of Credit acts like a bridge of trust between the importer and the exporter. This article will explore the necessary aspects of a letter of credit, including its definition, workings, advantages, and limitations.What is a Letter of Credit?A letter of credit is a form of written commitment that a bank provides to the exporter on behalf of the importer. It contains the specified amount that the seller must receive once the goods are delivered. However, the seller must meet the terms and conditions listed in the letter of credit to receive the money. LC, the full form for which is Letter of Credit, guarantees that the seller will get paid. It is also an essential document that mitigates risks for both buyer and seller in international transactions.Components of A Letter of CreditA letter of credit is a detailed document that has the following components:Applicant: The buyer or the importer requesting the letter of credit.Beneficiary: The seller or the exporter who will receive the payment.Issuing Bank: The bank that the buyer asks to issue the letter of credit.Advising Bank: The seller's bank authenticates the letter of credit.Amount: It is the value of goods on the letter of credit.Expiry Date: It is the last date for the submission of documents.Terms: These are the shipment terms for the shipping method, the port, and the delivery terms.Documents Required: Includes documents such as a bill of lading, commercial invoice, packing list, insurance certificate, and certificate of origin.How Does a Letter of Credit Work?The letter of credit works as mentioned below:First, a buyer and a seller agree on a transaction. As a seller would want security, they agree to use a letter of credit.Next, the buyer has to apply for an LC from their bank, which is also known as the issuing bank.Once the LC is issued, it is sent to the seller's bank, also known as the advising bank.As promised, the seller ships the goods and submits the required documents to the advising bank for payment.The advising bank checks the documents for compliance purposes, and once everything is clear, forwards them to the issuing bank.Once the papers are in order, the issuing bank checks the submitted documents, and payments are made to the seller.The issuing bank then settles the payment with the buyer.8 Types of Letter of CreditIt might seem uncommon, but there are several types of letters of credit, depending on the terms and conditions between a buyer and a seller. Below are the different kinds of letters of credit:1. Confirmed LCAlong with the issuing bank, the advising bank guarantees payments, so the letter of credit is called the confirmed LC.2. Revolving LCA revolving LC is when a single LC can cover multiple shipments and allow the credit to be renewed at any time. It is usually used where regular shipments are made between the same seller and buyer.3. Revocable and Irrevocable CreditRevocable LC is where the bank has the full authority to change the terms and conditions without prior notice to the beneficiary. At the same time, an irrevocable LC is where the bank cannot change the terms and conditions.4. Standby LCStandby LC is a backup in case the buyer fails to pay the seller. It is a guarantee issued by the buyer's bank to the seller.5. Documentary LCA documentary LC ensures that the issuing bank pays on behalf of the buyer once the specified documents are received.6. Sight LCThis type of letter of credit ensures that the seller gets the payment once the seller produces the sight LC and sends it to the bank with the necessary documents.7. Transferable CreditAs the name suggests, this LC allows the bank to transfer the payment to another party as requested by the original beneficiary.8. Back-to-back CreditIn this type of LC, the seller can request that their bank issue an LC on behalf of the party that supplies goods to them.Benefits of a Letter of CreditThe process may be lengthy for a transaction between a buyer and seller. However, there are several benefits since a buyer and seller transaction can happen across countries or continents. Here are the benefits of a letter of credit for both buyers and sellers:For Buyer:A buyer must only pay when the goods are shipped as agreed.The risks are reduced when the trade is with new or overseas suppliers.Buyers can align the payment terms with shipment schedules.For Seller:A letter of credit guarantees payment for the goods shipped.A letter of credit reflects the buyer's seriousness and financial standing.Some letters of credit, such as Sight LCs, can ensure immediate payments.Risks and Limitations of Letter of CreditWhile there are many benefits to using a letter of credit for both the buyer and the seller, certain limitations and risks are also involved, and they are listed below:It can increase the cost by including fees for issuance confirmation and document handling.Every document needs to be accurate for the smooth flow of payment.The buyer and seller must depend on the respective banks for adherence, timelines and standards.Since banks don't deal with goods, there is a chance of fraud, too.Related read - E-Commerce Payment System: How It Works in IndiaGet Your International Trade Seamlessly Operated With Shipping Solutions From WareIQWareIQ's smart shipping solution helps eCommerce brands minimise cost leakages caused by RTOs, fake delivery attempts in NDR, weight reconciliation issues, and more. Our solution also offers prompt support for handling urgent client escalations, ensuring smooth operations at all times.Our solution offers the following capabilities:Multi-carrier engine enabling fast deliveries across 24,000+ pin codesControl Tower & automated workflows to minimise NDR & RTOsSame/Next-day delivery courier optionsSeamless Integration with your WMS, ERPs and StorefrontsShipping Badges to display precise Estimated Delivery Dates (EDD)Custom branded tracking pages and notifications to enhance customer experienceConclusionWith global trade, sellers and buyers worldwide can become business partners. The distance can create questions regarding the trust between an importer and an exporter. A letter of credit can be a metaphoric handshake across borders in such situations. Since it comes with a bank-backed framework, it ensures that payments get through and the goods are delivered in the best shape so that both importer and exporter are satisfied. Related read - Letter of Undertaking in Shipping: What It Is and When to Use It?FAQs About Letter of CreditIs an LC the same as a bank guarantee?No, a letter of credit ensures that payment is made when the supplier honours the conditions. On the other hand, a bank guarantee will make the payment in case of a default.Is a letter of credit legally binding?Yes, a letter of credit is completely legally binding and enforceable.Can I transfer a letter for credit?Yes, an LC can be transferred completely or partially to another party.What happens if the buyer does not pay the issuing bank?The issuing bank will still make a payment to the seller. Afterwards, the bank will recover the amount from the buyer.

September 22, 2025

Ajio Diwali Sale 2025: Effective Inventory and Supply Chain Strategies for Sellers

Ajio Diwali Sale 2025: Effective Inventory and Supply Chain Strategies for Sellers

Diwali celebrations have significantly changed in recent times. One of the most noticeable changes is the gifting aspect. Approximately 33% of people prefer to buy Diwali gifts for friends and family from the top e-commerce platforms. In fact, in 2024, online marketplaces sold goods worth Rs 55,000 crore in the first week itself. One of the prominent e-commerce platforms that drives this surge is Ajio. Ajio sellers are all excited for the upcoming Ajio Diwali sale, which is expected to start on October 27, 2025. This is not just another sale that occurs throughout the year; it is like a battlefield of supply chain execution. As a seller, if your logistics or inventory falters, you risk losing thousands of orders in a single week.So, how to ensure that everything runs smoothly? Well, this article explores the strategies that will keep your supply chain agile, resilient, and profitable during the Ajio Diwali Sale.Understanding the Ajio Supply Chain FrameworkAjio's supply chain is an interconnected web designed for optimum speed and scale. During peak festive sales, this network gets stretched thin, which is why sellers need to align their own operations with Ajio's ecosystem.Supplier Network: Ajio has a large supplier network, comprising both local artisans and global brands. For proper stock availability, sellers must coordinate their procurement timelines to ensure timely replenishment of their stock.Decentralised Warehousing: Ajio leverages regional fulfilment centres. Sellers who strategically place inventory near demand hotspots gain faster delivery windows through Ajio fulfilment centres.Tech Backbone: The platform features robust automation and analytics, enabling smooth order processing and real-time stock updates.Customer-First Approach: Ajio expects its sellers to meet the expectations for speed, accuracy, and hassle-free returns.Sellers can thrive during the Ajio Diwali sale by adopting Ajio's tech-driven and customer-centric philosophy.Inventory Planning: Stocking Smart for Diwali DemandInventory planning during the Ajio Diwali sale is not just about stocking up products; it is about having the products that are in demand, based on the demand volumes. Mistakes here can lead to empty carts, delayed deliveries, or unsold stock piling up post-Diwali.Demand Forecasting with PrecisionBegin by analysing past data of the Diwali sale and spot trends in terms of what categories spiked, what products were stagnant and the volume fluctuations on each day.Ajio search insights, Google Trends, and social media can help identify trending SKUs, such as festive wear, ethnic collections, footwear, and accessories.Festivals, regional events, payday cycles, and even weather can impact product demand.Buffer Stock Strategy: Don't Get Caught ShortMaintaining a 10–15% buffer for fast-moving SKUs for categories such as ethnic wear and accessories, where demand can double overnight.If production cycles are long, buffer stock becomes even more important.Adjust the buffer based on real-time sales velocity during the first few days of the sale.SKU Optimisation: Focus on WinnersApply the 80/20 rule; the top 20% of SKUs often generate 80% of revenue.Review past sales and remove SKUs with poor conversion or high returns.Pair slower SKUs with hot sellers in combo offers to drive clearance.Strategic Placement of InventoryPlace inventory in Ajio's fulfilment centres closest to your top demand zones. This reduces delivery timelines and RTO rates.Utilise geo-analytics to forecast demand across Tier 1, Tier 2, and Tier 3 cities. Festive demand is no longer metro-exclusive.Automation and Replenishment SystemsSet reorder triggers in your OMS/WMS so that stock is replenished as soon as it reaches minimum thresholds.Integrate systems with Ajio to prevent overselling or stock mismatches.Agile Adjustments During the SaleMonitor which SKUs are spiking unexpectedly.Quickly replenish the stock of trending items in Ajio's fulfilment centres.If certain SKUs underperform, apply discounts mid-sale to avoid post-festive dead stock.Returns-Ready Inventory PlanningKeep a portion of inventory aside to replace returned items quickly.Ensure returned items are quality-checked and reintroduced into circulation fast.Track high-return SKUs and adjust procurement for future sales.Inventory planning is more than just bulk stocking; it's about being data-led, agile, and customer-focused.Logistics Excellence: Where Sellers Win or LoseWhile discounts during the Ajio Diwali sale ensure that millions of shoppers are attracted, the delivery speed can be an important factor in determining whether they will return. It is here that smooth logistics can be a game-changer:Route Optimisation: Sellers can utilise tools that factor in live traffic, distance, and fuel efficiency.Last-Mile Reach: Partner with carriers covering Tier-2 and Tier-3 towns, where festive demand is exploding.Flexible Shipping: Offer express options in metros and economical standard options for other regions.Returns Handling: A strong reverse logistics process boosts trust and encourages larger orders.How to Enhance Ajio Logistics?Considering that Ajio logistics is one of the prominent driving factors, sellers who can optimise it are in for a huge advantage during the Ajio Diwali Sale.Collaborate with Ajio-Approved Logistics PartnersSellers need to choose reliable partners who have a proven track record of fulfilling festive demands. To take a notch higher, sellers can use dashboards for real-time order visibility and transparent updates.Optimise Routes and Reduce CostsDeployment of advanced logistics software to design efficient delivery routes is essential. Sellers can implement dynamic routing that can be adjusted in real-time depending on the traffic conditions.Prioritise Real-Time Tracking and CommunicationTracking data can be integrated with customer support so that query resolution is faster. Customers should get accurate delivery timelines. Build a Seamless Returns SystemSellers have to communicate the return policies clearly so that there are no disputes from the customers. Collaboration with logistics partners ensures efficient reverse logistics, facilitating restocks and resale.A seamless logistics chain results in faster deliveries and also helps in the reduction of order cancellations, thereby boosting seller ratings and visibility during the Ajio Diwali sale.Supply Chain Optimisation TechniquesSellers must optimise their supply chain processes to thrive during the Ajio Diwali Sale. Effective supply chain management of Ajio involves various techniques that enhance efficiency, reduce costs, and improve customer satisfaction. Below are some essential optimisation techniques that sellers should consider:1. Warehouse OptimisationEfficient warehouse management is crucial for quick order fulfilment. Sellers should organise their warehouses strategically to maximise space and improve picking efficiency.Utilise Vertical Space: Implement shelving systems that effectively utilise vertical space, allowing for more stock without expanding the warehouse footprint.Streamlined Picking Processes: Designate specific areas for high-demand items to reduce the time taken for picking and packing orders.2. Order Fulfilment AutomationAutomating order processing can significantly reduce errors and accelerate fulfilment times.Implement Automated Systems: Use technology to automate order processing, from receiving orders to inventory updates and shipping notifications. This reduces manual errors and speeds up the entire process.Integrate with Ajio Logistics: Ensure your automated systems are compatible with Ajio logistics partners for seamless order tracking and delivery.3. Real-Time TrackingReal-time tracking systems provide visibility into inventory levels and shipment statuses, which is crucial during the busy Ajio Diwali Sale.Monitor Inventory Levels: Use tracking systems to monitor stock levels and reorder points, ensuring that popular items remain in stock.Provide Accurate Delivery Estimates: Sellers can offer customers precise delivery timelines by tracking shipments in real-time, enhancing the shopping experience.4. Flexible Shipping OptionsOffering multiple shipping options can cater to different customer needs and preferences.Express Delivery Services: Collaborate with Ajio logistics partners to provide express delivery services for customers who require quicker shipping.Cost-Effective Solutions: Offer standard shipping options to balance speed with cost and ensure that all customer segments are catered to.5. Robust Returns ManagementAn efficient returns management system is essential for handling the increased volume of returns during the Ajio Diwali Sale.Streamlined Return Processes: Establish clear return policies and processes that make it easy for customers to return items, enhancing customer satisfaction and loyalty.Reverse Logistics: Work with logistics partners to ensure that returned items are processed quickly and efficiently, allowing faster restocking and resale.By implementing these supply chain optimisation techniques, sellers can effectively manage the complexities of the Ajio supply chain during the Diwali Sale.Also check: Ajio Order Fulfillment With WareIQHow Technology Gives Sellers A Competitive Edge?When it comes to outpacing the competitors during the Ajio Diwali sale, technology can be a vital differentiator. It's the sellers who leverage smart technology that manage to scale smoothly, delight customers, and outpace competitors.Key Ways Technology Gives Sellers an Edge:Real-time inventory sync prevents overselling and cancellations by updating stock instantly across Ajio and other marketplaces.AI-powered demand forecasting helps predict Diwali spikes with accuracy, enabling sellers to stock best-sellers and avoid dead inventory.An automated order management system (OMS) streamlines order processing and minimises errors. Smart logistics tracking provides customers with live ETAs and updates on their orders, thereby reducing customer queries and lowering RTO rates.The analytics dashboard helps convert raw sales and logistics data into actionable insights, which enable sellers to adjust prices, discounts, and placement accordingly.You may also like to read: Flipkart Diwali Sale Inventory StrategiesImportance of Ajio Logistics PartnersThe Ajio Diwali Sale's success heavily relies on the effectiveness of its logistics partners. These partnerships are crucial for ensuring timely deliveries and maintaining high customer satisfaction. Here are some key reasons why Ajio logistics partners are vital to the supply chain:1. Efficient Last-Mile DeliveryLogistics partners are responsible for the last-mile delivery, which is critical during high-demand periods like the Ajio Diwali Sale. Reliable logistics partners ensure that orders are delivered promptly, enhancing customer satisfaction and loyalty.2. Capacity ManagementDuring peak sales events, logistics partners help manage increased order volumes effectively. They are equipped to handle the surge in orders, preventing delays and ensuring that products reach customers on time.3. Route OptimisationLogistics partners utilise advanced technology to optimise delivery routes. Optimising routes reduces transportation costs and improves delivery efficiency, essential during the busy sales period.4. Real-Time TrackingProviding real-time tracking updates is a key service offered by logistics partners. This feature allows customers to monitor their orders, reducing anxiety and improving their shopping experience.5. Returns ManagementEfficient returns management is crucial for maintaining customer satisfaction. Logistics partners facilitate easy returns, ensuring that the process is hassle-free for customers, which can lead to repeat business.The role of Ajio logistics partners is indispensable for successfully executing the Ajio Diwali Sale. By leveraging these partnerships, sellers can ensure they meet customer expectations and capitalise on the lucrative opportunities presented during the Diwali Sale.You may like to explore: Myntra Diwali Sale: Best Practices for Inventory ManagementWhy is WareIQ the Smart Fulfilment Partner for Your Ajio Marketplace Orders?Connect Ajio and other marketplaces seamlessly with WareIQ's fulfilment platform.Position inventory closer to customers through smart placement in WareIQ FCs.Sell across multiple channels using centrally stored inventory.Boost Ajio sales with WareIQ's lightning-fast fulfilment.Minimise losses with RTO insurance and hassle-free returns management.Explore - Diwali Inventory Planning Playbook: Key Strategies for SellersConclusionThe Ajio Diwali sale is not just another festival where sellers can gain massive success. It is quite a decisive time for the sellers, where they can prove their supply chain strength. Due to the discounts, orders are at an all-time high, and sellers must plan every phase of the sale accurately. Sellers who can align their operations with Ajio's supply chain framework can move faster, deliver reliably, and earn customer trust when it matters most in a market where every second counts. Efficient supply chain strategies can transform missed opportunities into record-breaking festive sales.Explore - Ajio Order Fulfillment With WareIQHow can WareIQ help sellers optimise their supply chain for the Ajio Diwali Sale?WareIQ can help sellers optimise their supply chain for the Ajio Diwali Sale by offering:Access to a pan-India network of fulfilment centres for strategic inventory placement and faster deliveriesAutomated order processing and fulfilment systems to handle the increased order volume efficientlyReal-time tracking and analytics to monitor supply chain performance and make informed decisionsReliable logistics partners for last-mile delivery to ensure timely order fulfillmentFlexible shipping options for customers, including express delivery during peak demand periodsBy leveraging WareIQ's supply chain expertise and technology, sellers can streamline their operations and focus on driving sales during the Ajio Diwali Sale.Also read: Meesho Maha Diwali Sale Fulfilment and Logistics tipsFAQs About Ajio Diwali SaleWhen is the Ajio Diwali Sale scheduled to take place?The Ajio Diwali Sale is expected to start on October 27, 2025. More than just a festive promotion, this sale is a high-stakes event for sellers often compared to a battlefield of supply chain execution. With thousands of orders at stake, any lapse in logistics or inventory can lead to major losses.How can WareIQ help sellers optimize their supply chain and manage peak sales periods?WareIQ can assist sellers by providing a comprehensive fulfilment solution with a pan-India network of fulfilment centres, smart inventory placement, and advanced automation tools. This enables sellers to optimise their supply chain operations, reduce delivery times, and efficiently handle the surge in orders during the peak sales period.What kind of discounts and offers can customers expect during the Ajio Diwali Sale?You can expect a flat 50% to 90% discount on products during the Ajio Diwali Sale. Additionally, IDFC and Federal bank cards will offer an extra 10% instant discount. New users can also avail of a flat Rs 500 discount using the coupon code "AJIONEW" on their first purchase.How can sellers optimise their supply chain for the Ajio Diwali Sale?Sellers can optimise their supply chain by implementing effective inventory management strategies, streamlining order fulfilment processes, enhancing logistics operations, and collaborating with reliable Ajio logistics partners. This includes demand forecasting, safety stock maintenance, warehouse optimisation, route optimisation, and real-time tracking.What are the key benefits of partnering with Ajio logistics partners during the Diwali Sale?Ajio logistics partners are crucial in ensuring efficient last-mile delivery, managing increased order volumes, optimising delivery routes, providing real-time tracking, and facilitating returns management. By leveraging these partnerships, sellers can enhance customer satisfaction and capitalise on the surge in demand during the Diwali Sale.Are any additional cashback and coupon offers available during the Ajio Diwali Sale?Yes, there are several additional offers available. Customers can get up to Rs. 500 cashback on minimum transactions of Rs. 1,000 using Paytm Wallet or MobikWik Wallet. Additionally, sellers can earn up to 8.09% cashback on Ajio shopping through platforms like Zingoy. Ajio also offers a "Coupon Quest" where users can use their Ajio Big coins to buy coupons and avail of further discounts.What makes supply chain planning so critical for the upcoming Ajio Diwali Sale?Festive sales often see a 25–30% surge in online orders compared to regular months. Without proper planning, sellers risk stockouts, delays, or high return rates, all of which can impact sales performance and seller ratings.What are the best inventory management strategies for Ajio sellers during the Diwali season?Maintain safety stock for fast-moving SKUs, prioritise top-selling categories, and automate replenishment. Multi-location storage in fulfilment centres close to regions where demand is high can also ensure faster delivery.What logistics challenges do sellers face during the Ajio Diwali Sale?Some issues that sellers face during a festive sale include delayed shipments due to high order volumes, last-mile delivery bottlenecks, and higher return-to-origin (RTO) rates.Why is last-mile delivery so important during the Ajio Diwali Sale?Customer expectations peak during festive sales. A single late delivery can reduce repeat business and negatively impact ratings. Faster last-mile fulfilment directly translates into better customer satisfaction.

September 20, 2025

CPT Incoterms: What Does CPT Mean in International Shipping?

CPT Incoterms: What Does CPT Mean in International Shipping?

According to a UN trade and development report, global trade hit a staggering $33 trillion in 2024. This growth has been possible due to a clear understanding of Incoterms. Also, the International Chamber of Commerce (ICC) mentions that different incoterms define different tasks, costs and risks in a trade transaction. One such term is CPT-carriage paid to. As per the Incoterms of 2020, CPT Incoterms is a multi-model rule where the seller's risk starts with export, the seller delivers the goods to the agreed carrier, and the freight is paid for the goods to be shipped to a designated location. The shipment's risk is further transferred to the buyer when the shipment is handed over to the carrier. The term CPT has different roles and obligations for a buyer and a seller. In this article, we will explain what is CPT and about CPT Incoterms and what the roles under it are.What is CPT?CPT—Carriage Paid To is an incoterm that means that the seller delivers goods to a carrier at a designated location and pays for the transportation to the selected location. The transportation can be by air, road, rail, or sea. Under CPT, both sellers and buyers have their distinct obligations.CPT Incoterms, among others, is essential for land and intermodal shipments. Also, traders more often use the CIF term for maritime shipments. Incoterms like CPT are significant to understand, as they specify who is responsible for the payment and arrangement of shipment, insurance, customs clearance, documentation, and other logistical activities.Responsibilities of Seller and Buyer Under CPTThe roles and responsibilities concerning shipments of a seller and buyer are clearly defined as per CPT Incoterms and are explained below:Seller's ResponsibilityArranging and ensuring that the goods are delivered to the carrier at a preset location.The seller must handle all export clearances, licensing, and inspections required in the country of origin.The seller is responsible for paying for the main carriage at the agreed location. This will also include loading the goods onto the transport at the origin and paying freight charges, terminal charges, carriage charges and handling fees until the destination terminal.The seller must also provide the buyer with all important transportation documents, such as the bill of lading, bill, and truck consignment note. This helps the buyer claim the goods. In the case of a shipment sent via sea, the seller must issue a negotiable lading bill.Buyer's ResponsibilityBuyers' first responsibility is to take care of the goods when they get delivered via a carrier at the pre-decided location.A buyer must handle import clearances and pay for import duties and taxation in the destination country. The buyer must also arrange any outward carriage beyond the decided destination and pay for the unloading at the final destination.Under CPT Incoterms, the buyer is not obligated to get insurance for the goods. However, it is a fair practice. Buyers can obtain insurance once the risk passes.Advantages and Disadvantages of CPTLike others in Incoterms, CPT has advantages and disadvantages for buyers and sellers. Let us understand the pros and cons of the CPT Incoterm for both parties:Advantages and Disadvantages for SellersAdvantagesCost ControlThe seller can control and pay for the main transport until the final destination. It helps predict the cost and leads to better scheduling. Sellers can also leverage freight contracts to avail of better rates than buyers.Consolidated Shipments Sellers who ship regularly can easily coordinate deliveries if they use their carrier. This will also help to reduce the chance of congestion at the loading point.Simplify ProcessAs the seller takes care of the logistics in the country of origin, the buyer will not have to worry about it. Also, the seller handles export packaging, loading and customs clearance to simplify the entire process till the carrier delivers the shipment.Versatility CPT Incoterms is a concept that works with all modes of transport, offering flexibility for mixed shipments.DisadvantagesTransport Responsibility It is the seller's responsibility to bear the cost of delivering the goods to the location in the buyer's country. This means the seller might be exposed to delays or price changes if anything goes wrong with the carrier. Limited Control After Delivery The seller cannot ensure the shipment's safety once the goods are handed over to the carrier. Advantages and Disadvantages For the BuyerAdvantagesConvenienceThe seller handles the long-haul part of a journey. Hence, the buyer only has to deal with the local import steps once the shipment arrives at the destination. This makes managing logistics easier for the buyer.Saves CostSince the seller negotiates freight rates, the same can be reflected in the sale price. The buyer can benefit from the seller's buying power without negotiating.DisadvantagesEarly Transfer RiskOne of the biggest drawbacks for buyers is that the risk starts once they get the goods with the carrier, even though the seller controls the main transportation. This becomes even more complex when a buyer may not be aware of the location or the condition of the goods. Hence, the buyer cannot claim against the carrier until the documents are present.Cost of ImportsThe buyer has to handle the unloading, customs clearance, and import duties when the shipment reaches the destination. Hence, it can increase the import cost. Also, if these costs are not anticipated, it can further lead to delays.Also check - DAP vs DDP: Which Shipping Term Is Right for You?Streamline Shipping Operations With WareIQWareIQ's smart shipping solution helps eCommerce brands minimise cost leakages caused by RTOs, fake delivery attempts in NDR, weight reconciliation issues, and more. Our solution also offers prompt support for handling urgent client escalations, ensuring smooth operations at all times.Our solution offers the following capabilities:Multi-carrier engine enabling fast deliveries across 24,000+ pin codesControl Tower & automated workflows to minimize NDR & RTOsSame/Next-day delivery courier optionsSeamless Integration with your WMS, ERPs and StorefrontsShipping Badges to display precise Estimated Delivery Dates (EDD)Custom branded tracking pages and notifications to enhance customer experienceConclusionCPT (Carriage Paid To) is an Incoterm used in the shipping industry, irrespective of the mode of shipment. Under CPT, the seller handles the main carriage, but the buyer bears the shipment risk in the destination country. Transparency is essential for traders choosing CPT, and the place of the delivery and destination must be specified. It is also necessary to ensure that both sides understand when the risk will actually be transferred to the other party.Related - Mastering Incoterms in Logistics: Key Terms You Need to KnowFAQs About CPTWho is responsible for the trade cost as per CPT Incoterm?The seller is the one who is responsible for arranging and paying for the shipment shipped to a specific destination.Does CPT apply to sea shipments?Yes, CPT can be used for all modes of transport, whether sea, road, rail, or air.Is CPT different from CIP?CPT stands for Carriage Paid To, while CIP stands for Carriage and Insurance Paid To. Unlike CPT, under CIP, the seller must also purchase insurance for goods shipped to a specified destination.Who will be responsible for import duties and taxes under CPT?The buyer is responsible for import clearance, taxes and any other formalities required to be fulfilled in the destination country.

September 19, 2025

Certificate of Origin: Why It’s Crucial for International Trade

Certificate of Origin: Why It’s Crucial for International Trade

A Certificate of Origin is an important commercial document which plays a vital role in international trade. It states the country where the goods in the shipment are obtained, produced, processed and manufactured. Besides the information about the goods in a consignment, the certificate is also essential to determine if the goods comply with the trade agreements. It also helps in customs clearance processes, as it informs customer authorities about the correct imposition of taxes. As per a study by WCO, the Certificate of Origin can be digitised in the future. It thus becomes essential to know the intricacies of the Certificate of Origin.In this article, we will learn the definition of a Certificate of Origin, the types of Certificates of Origin, the process of obtaining a Certificate of Origin, and other important aspects.What Is a Certificate of Origin?When it comes to the meaning of Certificate of Origin, it is the document used in international trade. It verifies the origin of the goods being exported and is critical for determining which taxes will be levied according to trade agreements.  It is also known as the country of origin certificate.Some of the details that are mentioned on the Certificate of Origin are:Name and  the address of the exporterManufacturer DetailsDescription of the productThe country of originQuantity and weight of the productImporter detailsHSN codeModes of transportationInvoice numberDigital signatureVerification from the issuing authoritySignificance of a Certificate of Origin in International TradeSince the Certificate of Origin for export contains all the details about a shipment, it plays a pivotal role in international trade. Below is the list of the importance of the COO:It ensures smooth transit of goods across the borders by providing all the necessary information about the shipment to the customs authorities.The Certificate of Origin ensures compliance with international tax and trade regulations, allowing companies to benefit from favourable international trade conditions.The tax rate and tariff applicable to the exported goods are decided based on the Certificate of Origin. This document is detrimental and helps determine trade measures to be taken on the exported goods.Some countries can qualify for preferential treatment, and a COO can be a deciding factor in whether they receive preferential treatment or not. It also helps avoid duties under different trade agreements.It also helps access the international market, where the Certificate of Origin is mandatory.A Certificate of Origin helps maintain accurate statistics and records for economic analysis.It serves as a critical document in resolving disputes relating to the origin of goods between countries.Different Types of Certificate of Origin There are two categories of Certificate of Origin, and they are explained below:Non-Preferential Certificate of Origin It is an ordinary certificate that contains information about the exporter and other important details about the shipment. These details signify that the shipment of goods is not qualified for preferential treatment under a trade agreement. Hence, the exporting country must pay the normal tariffs and taxes as per the agreement. Preferential Certificate of Origin As the name suggests, preferential COO indicates that the type of goods shipped by the exporter can avail of preferential treatment under the trade agreement. With the preferential COO, the exporter can get reduced tariffs and certain exemptions under the free trade agreements.For example, exports between Mexico, the United States, and Canada are provided with exemptions under the USMCA free trade agreement. When trade occurs between these countries, a preferential Certificate of Origin is required. However, in some cases, a bill of lading or commercial invoice can also suffice.Who Issues A Certificate of Origin?The Chamber of Commerce primarily issues Certificates of Origin, but certain government agencies and trade associations also have the authority to do so. However, the DGFT (Directorate General of Foreign Trade) or the Union Ministry of Commerce and Industry should authorise the issuing body. How To Get a Certificate of Origin?Obtaining a COO requires several steps, which are mentioned below:Check EligibilityThe first step in obtaining a Certificate of Origin is to check if the products you are exporting are eligible for application according to the importing country's trade regulations and agreements.Collate DocumentsOnce you know you are eligible, the next step is to gather the documents required to obtain the COO. Some of the documents/information that you would need include:Duly filled COO formInvoicePacking listBill of ladingCover letterProduct DescriptionIEC CodeDigital signature certificatePurchase order from the importerShipping billCover letterApplicationComplete the Certificate of Origin application form and attach the required documents. Then, submit it to an authorised body that issues the COO.COO Type SelectionBased on the trade agreements with the importer's country, select whether it will be a Preferential COO or a non-preferential COO. VerificationThe authorised body will conduct verification to check the authenticity of the submitted documents and the origin of the goods. Further enquiries or inspections might be necessary.Payment of FeesOnce the inspection is satisfactorily completed, you can pay the fee. After the payment, the authorities will issue the COO. You can now include the COO with the shipping documents for smooth customs clearance. Also, if the customer authorities have any further requirements, you can coordinate with the issuing authority for next steps. This can also be done in case of discrepancies.Also read - MSDS Certificate: Essential Guide for Safety and Compliance in IndiaWith WareIQ, Get Seamless Customer Clearance WareIQ's smart shipping solution helps eCommerce brands minimise cost leakages caused by RTOs, fake delivery attempts in NDR, weight reconciliation issues, and more. Our solution also offers prompt support for handling urgent client escalations, ensuring smooth operations at all times.Our solution offers the following capabilities:Multi-carrier engine enabling fast deliveries across 24,000+ pin codesControl Tower & automated workflows to minimise NDR & RTOsSame/Next-day delivery courier optionsSeamless Integration with your WMS, ERPs and StorefrontsShipping Badges to display precise Estimated Delivery Dates (EDD)Custom-branded tracking pages and notifications to enhance customer experienceRelated - Fumigation Certificate: When Is It Required for Exports?RCMC Certificate: Importance for ExportersConclusionA Certificate of Origin (COO) is one of the key documents when an exporter exports goods to another country. It is essential for a smooth customer clearance process and compliance with trade regulations, and it also helps in availing of application tariff exemptions, if any. Whether the goods are being exported to a country with which the country of origin has a Free Trade Agreement or not, a COO is necessary. Depending on the destination country, an exporter can choose a preferential Certificate of Origin (COO) or a non-preferential one. A DGFT-authorised body can issue a COO; hence, it is necessary to submit proper documents to the issuing body to receive a COO. Related - Certificate of Conformity in Global TradeAEO Certification: Benefits for Indian ExportersFAQs About Certificate of OriginWhat is the Certificate of Origin used for?A Certificate of Origin (COO) helps verify the country of origin for exported goods. It is also a necessary document for knowing the applicable tariff rates and maintaining compliance with trade regulations.Can a Certificate of Origin be availed online?Yes, it can be availed of electronically. The process to obtain a COO has to be completed online.What is the difference between a Preferential COO and a Non-preferential COO?Preferential COOs are COOs that certify that the goods being exported qualify for reduced tariff rates as per trade agreements. On the other hand, Non-preferential COOs are ordinary COOs which certify that goods do not qualify for reduced tariffs.What details are present on the COO?The Certificate of Origin contains details about the manufacturer, the exporter, the importer, a product description, the weight and quantity of goods, the country of origin, a commercial invoice, and shipping details.Who issues a Certificate of Origin?A Certificate of Origin is issued by bodies authorised by the DGFT (Directorate General of Foreign Trade). In India, the COO is authorised and issued by the Indian Chamber of Commerce (ICC) and the Trade Promotion Council of India (TPCI).

September 18, 2025