Export Procedures
The exporter or the person in charge of conveyance must follow certain procedures.
No Stoppage of Export Consignment :- Stoppage of export refers to the exporter losing export orders and the country losing foreign exchange. Thus export consignment will be allowed to move without being withheld. If the customs officials happen to have any doubts about the nature of the exports, then the officer can ask for an undertaking from the exporter stating that the export is the sole responsibility of the exporter.
Procedures to be followed by the person in charge
Any new shipping line, steamer agent or airline must register itself with the Customs Systems for electronic processing of the shipping bills. The person in charge of conveyance is required to follow certain procedures.
Entry Outward :- The vessel should be granted Entry Outward by the authorities. Without Entry Outward, loading cannot proceed. Steamer Agents can apply for Entry Outward 14 days in advance so that the exporter can submit shipping bills. This speeds up the process and loading the ship can start quickly.
Loading with Permission :- The exporter or the person in charge is required to submit the Shipping Bill or Bill of Export, which has to be passed by the customs officials. Only after the customs officer grants permission can the goods be loaded. Shipping Bill is not necessary in case of baggage and mail bags, but permission of the customs official is extremely important.
Export Manifest :- Export Manifest/Export Report, also known as Export General Manifest (EGM), must be submitted before leaving. Details required for an export manifest are similar to that of the import manifest. This manifest/report can be amended with permission, only if there are no fraudulent intentions. The person in charge must sign the export manifest. This report is not necessary if the conveyance only has baggage of the occupants.
Procedures to be followed by the Exporter :- The exporter must follow certain procedures. He must acquire a Business Identification Number (BIN) from DGFT. It is a 15 digit number based on one's PAN of Income Tax. The exporter must have a current account with the designated bank for credit of duty drawback claims. In case of the export being under the Export Promotion Schemes then the exporter must register licenses, advance license, DEPB etc. at the customs station. The exporter must submit Bill of Export for export via road, Shipping Bill for export via sea or air. The goods that are to exported must be assessed for duty, even if there is no duty applicable for most exports. ‘Nil Duty’ assessment is also an assessment.
Exporter must submit Shipping Bill :- The Shipping Bill or Bill of Export must be submitted in quadruplicate (four copies). In case of drawback claim an extra copy should be attached. There are five forms- Shipping Bill for exporting goods under duty drawback claim, this form is of yellow colour, Shipping Bill for exporting duty free goods, this form is of white colour, Shipping Bill for exporting duty free goods ex-bond (from bonded warehouse), this form is of pink colour, Shipping Bill for exporting goods under the DEPB scheme, this form is of blue colour.
Details such as name of exporter, Invoice Number, description of goods, packing, quantity, FOB value etc. must be mentioned on the Shipping Bill. Documents like invoice, packing list, export contract, letter of credit etc. must be submitted along with the Shipping Bill. When the Shipping Bill is submitted the customs officials provide a serial number (Thoka Number).
Excise Formalities to be completed while Exporting :- The goods must be cleared for exporting by the manufacturer. Once that is done, the goods are accompanied by a form known as ARE-1. This form should be presented to the customs officials. Once the officer gives his approval that the goods have been exported, the form has to be submitted to the Maritime Commissioner. The Maritime Commissioner will give the ‘proof of export’. The bond executed by the manufacturer and the exporter with the excise authorities is released only after the proof of export is approved by the Maritime/Assistant Commissioner, where the bond was executed.
Duty Drawback Formalities :- If the exporter wishes to make duty drawback claim on his export then he must submit certain documents and follow certain procedures. The exporter shall mention on the Shipping Bill the description, quantity and other details to determine whether the goods are eligible for duty drawback. For making duty drawback claims the exporter must furnish an extra copy of the Shipping Bill along with a copy of the Invoice.
The exporter is required to make a declaration on the Shipping Bill or Bill of Export that duty drawback claim is being made and that customs and excise duties have been remitted on materials, containers and packing materials and that no separate claim for return of duty will be made. If the exporter or his agent is unable to make such a declaration due to genuine reasons, the Commissioner of Customs may grant exemption from this procedure.
GR/SDF/SOFTEX Form under FEMA :- Guaranteed Receipt (GR) form and Statutory Declaration Form (SDF) were prescribed by the Reserve Bank under FEMA. GR form is used when Shipping Bill is manually processed at the customs house, while SDF is used when Shipping Bill is electronically processed at the customs house.
Other Documents required for Export :- The exporter is also required to submit other documents like- Four copies of Commercial Invoice, four copies of packing list, certificate of origin or pre-shipment where necessary, insurance policy, letter of credit, declaration of value, excise ARE-1/ARE-2 form as applicable, SDF/GR form in duplicate, letter showing BIN.
RCMC certificate from Export Promotion Council :- Several Export Promotion Councils have been set up to help promote exports. Exporters must become part of the concerned Export Promotion Council and acquire a Registration cum membership Certificate (RCMC).
Check in Customs :- Documents submitted by the exporter are processed by customs officials. These documents are checked for the following- value and classification of goods under the drawback schedule in case a duty drawback claim has been made, export duty if applicable, advance license shipping bills are examined to determine that details in invoice and final product mentioned in the advanced licence match. Visual examination and test of goods can also be done. Goods like antiques, arms, narcotics etc. cannot be exported. Goods like coir products, tea, coffee etc. can be exported with permission.
Examining goods before export :- Once the Shipping Bill is approved by the export department, the goods are to be submitted to shed appraiser in dock for inspection. This examination will ensure the following- that prohibited goods are not exported, goods match with the details and the invoice, duty drawback is claimed where its applicable.
Let Export Order by Customs Officials :- After the customs officials examine the goods and are content that the goods are not prohibited for exports and that the export duty has been paid, the officers will allow the goods to be cleared by giving the 'let ship' or 'let export' order. Other documents such as GR-1, ARE-1, octroi paper, quota certification for export are duly signed and returned to the exporter or CHA. Papers regarding duty drawback claim are also processed.
Processing under EDI system :- Under the EDI system, declaration is filed via Service Centre of customs. After verifying the declaration, Shipping Bill number is generated by the system, seen on the checklist which is used for verifying details and goods. Goods are examined at the dock. Once the Customs official checks the documents and is satisfied, he issues the 'let export' order. After this two copies of the Shipping Bill are generated, one for the customs and the other for the exporter. Exporter's copy of the Shipping Bill is given only after EGM is presented by the shipping agent. These are to be signed bg the customs authorities and CHA and the Appraiser. Other documents such as GR-1, ARE-1, octroi paper, quota certification for export are duly signed and returned to the exporter or CHA. Papers regarding duty drawback claim are also processed.
Conveyance to leave on written order :- Conveyance that carry the goods to be exported or bring the imported goods cannot leave that customs station without a written order from the customs officer. This order is issued only after the export manifest, Shipping Bill/Bill of Export, Transhipment bills etc. are submitted and the duties on stores consumed are paid or payments is secured. Also, the exporter must not be liable to pay any penalty and must have paid export duty. Such permission isn't necessary in case the conveyance is carrying only baggage of occupants.
Other Customs Procedures :- These procedures are to followed by the person in charge of conveyance.
Boat Notes :- If a vessel has to unload a smaller cargo, it may not wait for berthing accommodation. If the cargo is to be sent to shore, it may be loaded in a small boat, which must be accompanied by a Boat Note issued by the customs officer. It should be maintained in duplicate and should be serially numbered. In case of exports, export cargo loaded in ship via small boat does not require Boat Note if it is accompanied by Shipping Bill. Boat Note is also required to transfer cargo from one ship to another or for re-shipment.
Transit Goods :- Goods imported in any conveyance can remain on the conveyance and be moved outside of India or any customs station, without paying customs duty. But these goods must not come under the category of prohibited goods, and should be mentioned in the import manifest or import report. After transit the goods can be taken to another customs station. Once the goods arrive at the customs station, export duty must be paid.
Transhipment of Goods :- Imported goods in a customs station can be transferred from one conveyance to another without paying duty. Such transfer of goods can take place to any major port or airport in India. The goods can be transhipped to any customs station in India, provide the customs official is assured that the goods are bonafide, to be transhipped to any customs station. Goods that have to be transhipped must be mentioned in Import Manifest or Import Report. A Bill of Transhipment should be presented to the customs officials. If the goods are being transhipped as a part of an international treaty or a bilateral agreement between the Indian Government and a foreign government, a Declaration of Transhipment, not Bill of Transhipment, must be submitted. These goods should not come under the category of prohibited goods and are to be sealed during transhipment by customs officer. A bond should be executed for this purpose, then a certificate from customs authorities must be presented within a month that goods have been transhipped properly. Once the goods arrive at the customs station, duty will have to be paid.
Transit and Tranship :- Transit goods continue to be on the same conveyance, whereas transhipment goods are transferred from one conveyance to another. Thus procedures for these are also different.
Coastal Goods :- Goods transported via ship from one port in India to another port in India are known as coastal goods. But these do not include imported goods. It involves no import,or export but control is important to ensure that coastal goods are not used for export.
To load coastal goods, the consignor should present Bill of Coastal Goods to the customs authorities. The goods will be loaded by the master if the vessel after the Bill of Coastal Goods is passed. The master of the vessel should carry an Advice Book. Customs officials will make entries in this book. The Advice Book must be presented for inspection by the customs authorities, when called for. After loading the goods, the vessel can leave once the customs officer issues a written order.
Unloading coastal goods can only be done at customs port or a coastal port by appointed CBEC. Bills related to the goods will be submitted to the customs authorities. Customs officer's permission is required for unloading goods. Customs officials can examine goods and call for documents related to goods. The goods will be unloaded at a place approved by the customs officer and under his supervision.
