NFPL Procedure For Export Goods From India

Name of the Organisation : Narendra Forwarders Private Ltd (nfpl.net)
Type of Facility : Procedure For Export Goods From India
Location : Mumbai

Website : http://www.nfpl.net/index.html

Procedure For Export Goods From India:
Goods are imported in India or exported from India through sea, air or land. Goods can come through post parcel or as baggage with passengers. Procedures naturally vary depending on mode of import or export. Procedures discussed in this Chapter are applicable for imports by sea, air or land, but not as baggage or postal dispatch

Export Procedures :
Procedures have to be followed by (a) ‘person-in-charge of conveyance’ and (b) the exporter. The procedures are similar to procedures for import, of course, in reverse direction.

No stoppage of export consignment :
Exports are vital for our economy. Any stoppage in export consignment means loss of export orders to the exporter and loss of foreign exchange to the country. Hence, it has been provided that movement of export consignment will not be interrupted and no export consignment shall be withheld for any reason whatsoever. In case of any doubt, customs authorities may ask for an undertaking that the export is on sole responsibility of the exporter. [Highlights of EXIM policy 1997-2002 as amended on 13.4.1998].

Procedures by person in charge of conveyance :
Any new airline, shipping line, steamer agent should be registered in Customs Systems for electronic processing of shipping bills etc. The ‘person in charge of conveyance’ has to follow prescribed procedures.

Entry Outward :
The vessel should be granted ‘Entry Outward’. Loading can start only after entry outward is granted. (section 39 of Customs Act). Steamer Agents can file ‘application for entry outwards’ 14 days in advance so that intending exporters can start submitting ‘Shipping Bills’. This ensures that formalities are completed as quickly as possible and loading in ship starts quickly.

Loading with permission :
Export goods can be loaded only after Shipping Bill or Bill of Export, duly passed by Customs Officer is handed over by Exporter to the person-in-charge of conveyance. In case of baggage and mail bags, shipping bill is not necessary, but permission of Customs Officer is required (section 40).

Export Manifest :
As per section 41, an Export Manifest/Export Report in prescribed form should be submitted before departure. [The report is popularly called as ‘Export General Manifest’ – EGM]. The details required are similar to import manifest. Such manifest/report can be amended or supplemented with permission, if there was no fraudulent intention. Such report should be declared as true by the person-in-charge signing the export manifest. This report is not required if the conveyance is carrying only luggage of occupants.

Procedures to be followed by Exporter :
Export procedures have been summarized in Chapter 3 Part II of CBE&C’s Customs Manual, 2001.

Every exporter should take following initial steps :
** Obtain BIN (Business Identification Number) from DGFT. It is a PAN based number
** Open current account with designated bank for credit of duty drawback claims
** Register licenses / advance license / DEPB etc. at the customs station, if exports are under Export Promotion Schemes

Exporter has to submit ‘shipping bill’ for export by sea or air and ‘bill of export’ for export by road. Goods have to be assessed for duty, even if no duty is payable for most of exports, as ‘Nil Duty’ assessment is also an assessment.

Shipping Bill to be submitted by Exporter :
Shipping Bill and Bill of Export Regulations prescribe form of shipping bills. It should be submitted in quadruplicate. If drawback claim is to be made, one additional copy should be submitted.

There are five forms :
(a) Shipping Bill for export of goods under claim for duty drawback – these should be in Green colour
(b) Shipping Bill for export of dutiable goods – this should be yellow colour (c) shipping bill for export of duty free goods – it should be white colour (d) shipping bill for export of duty free goods ex-bond – i.e. from bonded store room – it should be pink colour
(e) Shipping Bill for export under DEPB scheme – Blue colour.

The shipping bill form requires details like name of exporter, consignee, Invoice Number, details of packing, description of goods, quantity, FOB Value etc. Appropriate form of shipping bill should be used. Relevant documents i.e. copies of packing list, invoices, export contract, letter of credit etc. are also to be submitted. In case of excisable goods, from ARE-1 prepared at the time of clearance from factory should also be submitted.

Customs authorities give serial number (called ‘Thoka Number’) to shipping bill, when it is presented.

Excise formalities at the time of Export :
If the goods are cleared by manufacturer for export, the goods are accompanied by ARE-1 (earlier AR-4). This form should be submitted to customs authorities. The Customs Officer certifies that the goods under this form have indeed been exported. This form has then to be submitted to Maritime Commissioner for obtaining ‘proof of export’. The bond executed by Manufacturer-exporter with excise authorities is released only when ‘proof of export’ is accepted by Maritime Commissioner or Assistant Commissioner, where bond was executed.

Duty drawback formalities :
If the exporter intends to claim duty drawback on his exports, he has to follow prescribed procedures and submit necessary papers. The procedures are discussed in the chapter on ‘Export Incentives’. He has to make endorsement of shipping bill that claim for duty drawback is being made. If he fails to do so due to genuine reasons, Commissioner of Customs can grant exemption from this provision. [proviso to rule 12(1)(a) of Duty Drawback Rules].

G R / SDF / SOFTEX Form under FEMA :
Reserve Bank of India has prescribed GR / SDF form under FEMA. “G R” stands for ‘Guaranteed Receipt’ form, while SDF stands for ‘Statutory Declaration Form’). SDF form is to be used where shipping bills are processed electronically in customs house, while GR form is used when shipping bills are processed manually in customs house.

Other documents required for export :
Exporter also has to prepare other documents like (a) Four copies of Commercial Invoice (b) Four copies of Packing List (c) Certificate of Origin or pre-shipment inspection where required (d) Insurance policy. (e) Letter of Credit (f) Declaration of Value (g) Excise ARE-1/ARE-2 form as applicable (h) GR / SDF form prescribed by RBI in duplicate (i) Letter showing BIN Number.

RCMC certificate from Export Promotion Council :
Various Export Promotion Councils have been set up to promote and develop exports. (e.g. Engineering Export Promotion Council, Apparel Export Promotion Council, etc.) Exporter has to become member of the concerned Export Promotion Council and obtain RCMC – Registration cum membership Certificate.

Check in customs :
Document submitted is processed by customs authorities, and following are checked – Chapter 3 Para 39 of CBE&C’s Customs Manual, 2001. –
** Value and classification of goods under drawback schedule in case of drawback shipping bills Export duty / cess if applicable
** Advance License shipping bills are checked to ensure that description in invoice and final product specified in Advance License matches. If necessary, samples may be drawn and assessment may be done after visual inspection or testing
** Exportability of goods under EXIM policy and other laws – Some exports are totally prohibited under various Acts e.g. items restricted or prohibited under Foreign Trade (Regulation) Act; antiques; art treasures; Arms; narcotics etc. Some items like tea, coffee and coir products can be exported only against authorisation/licence under respective Acts.

Examination of goods before export :
After shipping bill is passed by export department, the goods are presented to shed appraiser (exports) in dock for examination. Goods will be examined by examiner. This inspection is necessary (a) to ensure that prohibited goods are not exported (b) goods tally with description and invoice (c) duty drawback, where applicable, is correctly claimed.

Let Export Order by Customs Authorities :
Customs Officer will verify the contents and after he is satisfied that goods are not prohibited for exports and that export duty, if applicable is paid, will permit clearance. (section 51) by giving ‘let ship’ or ‘let export’ order.

GR-1, ARE-1, octroi papers, quota certification for export etc. are also signed. Exporter’s copy of shipping Bill, GR-1, ARE-1 etc. duly certified are handed over to exporter or CHA. Drawback claims papers are also processed. – Chapter 3 Para 43 and 60 of CBE&C’s Customs Manual, 2001.

Processing under EDI system :
Under EDI system, declarations in prescribed form are to be filed through ‘Service Centre’ of customs. After verification, shipping bill number is generated by the system, which is endorsed on printed checklist generated for verification of data. Goods are inspected at docks on the basis of printed check list. All documents are submitted to Customs Officer along with checklist. If goods and documents are found in order, ‘let export’ order is issued. Then two copies of Shipping Bill are generated – one customs and other exporter’s copy. Exporter’s copy is generated only after EGM (Export General Manifest) is submitted by shipping agent. These are signed by CHA and customs officer and then by Appraiser. SDF, ARE- 1, octroi papers, quota certification for export etc. are also signed. Exporter’s copy of Shipping Bill, SDF, ARE- 1 etc. duly signed are handed over to exporter or CHA. – Chapter 3 Paras 42 to 60 of CBE&C’s Customs Manual, 2001.

Conveyance to leave on written order :
The vessel or aircraft which has brought imported goods or which carry export goods cannot leave that customs station unless a written order is given by Customs Officer. Such order is given only after (a) export manifest is submitted (b) shipping bills or bills of export, bills of transhipment etc. are submitted (c) duties on stores consumed are paid or payment of the same is secured (d) no penalty is leviable (e) export duty, if applicable, is paid. – – Such permission is not required if the conveyance is carrying only luggage of occupants.

Other Customs Procedures https://www.indianjobtalks.in/uploads/2274-procedure%20for%20import%20and%20export.pdf