Rules of the Game

How & where to find Rules, Regulations, about export & Import Documentation, subsidies, taxes ,Government Related Institutions on the Net

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Customs Excise Codex Ports Passports Bis Patents

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Export Regulations
Procedure for export of goods Quality Control & Preshipment inspection Excise Clearance Customs Clearance

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Procedure for Executing & Export Order - Proforma Invoice :

i) Name and address of the importer. (ii) Description of goods it should be precise indicating important technical specifications and physical features enabling the identification of the product easily. (iii)Price of the product: should be quoted internationally accepted or mutually agreed currency it should be generally, should be on C.I.F. basis or in other words, the price will include cost and charges from carrying the product the place of exporter to the destination port together with freight and insurance. In case of discounts, it should be clearly mentioned. (iv)Condition of sale: Since the proforma carries legal obligations on the part of the exporter to supply the goods to the importer if it is accepted by the latter. Therefore it is necessart to mention conditions of sale clearly. The important conditions relating to the validity of the period of invoice, delivery schedule, inspection of goods, and terms of payment should be very clear. When the proforma invoice is accepted and communicated to the exporter, it becomes a confirmed order for export. In the process the importer sends back the copy of the proforma invoice duly signed signalling the acceptance of conditions contained in it. It also marks as the commencenent of the export transaction.

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Scrutinising the Export Order

The export order must clearly mention the mode of payment involving letter of credit, documents against payment (D/P) or documents against a Acceptance (D/A) etc. The best mode of payment in this context is through an irrevocable and confirmed Letter of credit. The important terms and conditions of export order i.e. delivery schedule, packing, inspections marketing etc. must agreed should be strictly admitted. The documents needed by the importer must be forwarded to the negotiating bank in the proper specified form and manner. It is the duty of the exporter to confirm the export order only when he finds the terms satisfactory and according to agreed terms. Primaryinfo.com

Allocating the Goods

After confirming the export order, it becomes necessary to make arrangement for producing the goods to meet export order. An internal indent is increased on the manufacturing unit mentioning almost all the particulars of the export order together with the importer's instructions and the date by which the goods must be ready and other formalities completed, date of shipment etc. There remains nothing to be left on the discretion of the works manager. Primaryinfo.com

Clearance from Excise and Inspection Authorities

Once the goods have been manufactured or procured, the exporter has to proceed for getting clearance from the excise and inspection authorities. For getting clearance from excise authorities for clearance in two ways: (i) To pay the excise duty at the time of removal of goods from the factory for export and later claim for rebate of duty after the goods are exported. (ii) To secure clearance under bond which "involves entering into a bond with the excise authorities make a debt entry in the Bond Account of exporter. The obligation is discharged as soon as the goods are exported. < continued>
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With Excise Officials

exporter has to prepare two important document- AR-4A form and Gate pass form GP- 1 or GP-2 AR-4A form is prepared in quadruplicate and form GP-1 or GP-2 in triplicate. GP-1 form is used when the exporter goods are removed from the factory under used when the exporter goods are removed from the factory under claim for rebate of duty and from GP-2 is prepared when goods are to be removed under bond. The AR-4A and GP-1 or GP-2 are submitted to the Range Superintendent, Central Excise who after necessary formalities signs all the copies. The Central Excise office may make the physical verification of the goods at the factory and seal the package on the request of the exporter. In this case form AR-4 will be used in place of form AR-4A." All other formalities followed are the same: The Central Excise Officer, after scrutiny "returns the original and duplicate copies of form AR-4/AR-4A. The triplicate copy is sent to Maritime collector, the fourth copy of form GP-2 is in the back to the exporter by the Excise Department. Primaryinfo.com

Then Inspection officials.

the step should be taken under pre-shipment inspection and Quality Control Act 1963 for carrying out quality control and pre-shipment inspection. The exporter the following documents alongwith the application are to be submitted by the exporter: (i) Copy of commercial invoice, (ii) A cheque or demand draft in favour of the agency, and (iii) A copy of the export contract. The agency appoints an inspector to inspect the export consignment at the factory in case the goods are according to the prescribed specifications, the inspector reports the senior officer.
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No inspection if
There is a simple procedure for the regular manufacturer exporter. For this purpose they are recognised as an 'exporter worthy' unit by the Export Inspection Council and such a unit has only to submit an application for the goods to be exported and therefore inspection is not necessary. Thereafter the goods are sent to the port of shipment and Railway Receipt is obtained.
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Transport packaging
The primary function of transport packaging in marketing abroad is to ensure safe of the product during transit. Mere insurance of the goods is no excuse for not being careful about damages or pilferage in transit. "The materials used in packaging should be such that protect the goods from the ill-effects of moisture, gas, light, air, etc. so that goods may preserve its attributes, shape, weight, stability, fragility rigidity and durability etc." In this way packaging plays an important part in the storage, preservation, protection and distribution of the product. The mandatory provisions regarding packaging of the goods imported also have important place in the packaging of goods for exports. Primaryinfo.com

When the goods are dispatched to the port

thereafter the exporter applies for the marine insurance policy, obtained in duplicate. This is the stage at which of all formalities regarding floor price regulations, canalations certificate origin, ECGC cover and consular invoice (if necessary) are completed. Then the exporter sends the documents listed (next slide)to his clearing and forwarding accompanying detailed instructions Primaryinfo.com

the documents listed are

(i) commercial invoice in duplicate mentioning full particulars of the products, packages, price and the market real value, (ii) Original Export order in original, (iii) Original L/C, (iv) form showing code no, (v) 4A-AR/AR-4 (original and duplicate), (vi) Excise gate pass (original), (vii) Packing and weight lists, (viii) Certificates of inspection, (ix) Declaration form in triplicate, (x) Consulare invoice (where necessary), (xi) Export licence, (xii) purchase memo, and (xiii) Railway Receipt."
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Obtaining Shipping Bill

The clearing and forwarding agent takes delivery of the goods from the Railway and arranges for warehousing. He then prepares shipping bill. Here it must be mentioned that there are three types of shipping bill namely: (i) shipping bill for duty-free goods (ii) Dutibale shipping bill, and (iii) Drawback shipping bill. The agent should submit in five copies of the shipping bill to the Custom House together with the necessary (i) to (xiv) documents mentioned above. The shipping bill is then undergoes processing in the Custom House and passed.
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Shipment > port authorities

Thereafter the clearing and forwarding agent submits the Port Trust copy of the Shipping Bill to the shed superintendent of the Port Trust. "He allows to bring the export cargo to the transit shed for physical examination. In the case of shed cargo, the Cock Challan is prepared, where the ship loads overside, the dock charges are indicated on the shipping Bill and no dock challan is prepared. The dock challan is then processed and is handed over to the clearing and forwarding agent after necessary formalities viz. After collection of cheque or cash. The shipping Bill including dock challan is submited the port trust authorities. In case of overside cargo, Cart ticket, Boat Note along with shipping bill and Dock challan are carried by the Authorised Licensed accompanying the goods for making the cargo is checked, and the necessary documents are examined and then super who cargo takes over control of the cargo for shipment."
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the shipping company

Then takes place the registration of the Boat Note and the shipping Bill. The Mates Receipt is prepared by the ships export clerk after loading the goods. "It is signed either by the captain of the ship or his agent and delivered to port-commissioner's shed. The clearing and forwarding agent makes the payment of the port charges and collect the Mate's Receipt. It is then presented to the preventive officer for certifying the fact of shipment on all copies of the documents which need post-shipment and endorsement from the preventive office. The clearing and forwarding agent obtains the bill of lading (two copies negotiable and about a dozen non-negotiable) from the shipping company against the Mate's Receipt."
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Post-shipment Formalities

After shipment the clearing and forwarding agent submits following documents to the exporter: (i) Full set of Bill of lading, (Negotiable and Nonnegotiable copies, (ii) Export promotion copy of the shipping Bill, (iii) Copies of customs invoice, (iv) AR-4A/AR-4 (duplicate), (v) one attested copy of commercial invoice, (vi) Export order, (original) (vii) Original letter of credit, (viii) Railway concession form must be duly attested by customs authorities.
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Maritime collector of Central Excise

When the exporter receives these documents he completes the required formalities, and then files a claim with the Maritime collector of Central Excise in the port town. The exporter also sends following documents to the importer: (i) Shipment advice; (ii) A non-negotiable copy of the bill of lading, (iii) Custons invoice, (iv) Commercial invoice and (v) Packing list Primaryinfo.com

Formalities with Negotiating Bank

When the goods are shipped and the required documents are sent to the importer, now it is the stage to collect the payment from the importer and thus, the exporter contacts the 'negotiating' bank. Where he is required to submit the following documents (next slide) for the materialization of the negotiation
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documents to the Bank

(i) GRI form (duplicate copy), (ii) Bill of Exchange (First and second copy), (iii) Full set of clean on board Bill of lading (three negotiable and as many non- negotiable copies are required) (iv) Original Letter of Credit, (v) Commercial Invoice (two copies), (vi) Packing list (four copies), (vii) Marine Insurance Policy (two copies), (viii) Bank certificate in prescribed form (two copies), (ix) Consular Invoice," if necessary. Primaryinfo.com

Final phase
These documents are processed here in light of the terms and conditions of the original L/C. Then ollowing set of document is transmitted to the importer by the first air mail. This is followed by a secon set of these documents y the second air mail to ensure that, in case the first is misplaced in transit the importer may take delivery of the consignment throught the documents in the second set. These include: (i) Bill of Exchange, (ii) Custom Invoice, (iii) Insurance Policy list. The original copy of the bank certificate together with the attested copies of the commercial invoice are returned to the export. The duplicate copy of the bank certificate is forwarded to the concerned joint chief Controller of Imports and Exports.

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Claim for Export Incentives

Various incentives can be obtained on completing the following formalities: (1) Import Replenishment Licence, (2) Cash compensatory support, (3) Duty drawback, and (4) Excise duty refund.

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Import Replenishment
To get the import replenishment license, exporter must submit the prescribed application form together with the following documents: (i) Treasury receipt as a proof of payment of import application fee. (ii) Commercial invoice duly attested by the negotiating bank, (iii) Negotiating Bank's certificate in original, (iv) Actual user's License, (v) Registration certificate of the Concerned E.P.C., (vi) Statement of exports certifies by the negotiating bank, (vii) Export Promotion copy of the shipping bill, (viii) Five copies of the list of goods to be imported.

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Cash assistance
A separate application for cash assistance is submitted to the Joint Chief Controller of Imports and Exports together with the same documents as submitted for the import replenishment license. "Alternatively, a reference can be made in the application that the document have been submitted in connection with the import replenishment scheme" for the exporters.
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Duty Drawback
In case an exporter wants to claim duty drawback must fill a Drawback Shipping Bill. It is also an application regarding duty and central excise duty paid on all raw materials, components, and consumable utilised in producing the final products. The concerned departments process the Drawback Shipping Bill and when he is satisfied with the authenticity of the documents, issue a refund order to the exporter. There is a procedure to provide Drawback to the exporter in advance immediately on presentation of the shipping under 'Duty Drawback Credit Scheme 1976' through the Eligible Bank. Such an advance is provided for ninety days free of interest and is adjusted. Primaryinfo.com

Refund of Excise duty

Through any of the following two methods, exporter may obtain a refund of excise duty on products: (i) paying it first and thereafter claim refund, (ii) By entering into a bond, with the excise authorities under bank guarantee. In such cases good are cleared without payment of duty. Primaryinfo.com

Policy, Procedures
Director General of Foreign Trade Dgft Delhi > http://dgft.delhi.nic.in/ Jdgft > http://zjdgft.tn.nic.in/

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Government Clearances

IEC:Import Export Code ICIA:Import Certificate Issuing Authorities RCMC :Registration-cum- Membership

Certificate (RCMC) of the EPC

DEPB: Duty Entitlement Pass Book ADV. LICENSE :Advance License EPCG :Export Promotion Capital Goods Scheme DFRC :Duty Free Replenishment Certificate Primaryinfo.com

Ecommerce:Depb online System

http://164.100.9.176/ecomproj.html

Registration for E-Commerce Filing Help Menu ! Logging on to DEPB System DEPB-Post Main Screen Fee Details Screen Shipping Bill Screen, Product Details Screen Exchange Rate Screen Customs Screen Print Application Submission Screen Primaryinfo.com

DES (ADVANCE LICENSE) ONLINE

Registration for ecommerce Log on with user id & pass word Fill up new applications details Up dating applications already submitted Several screen shots appear to be filled up & finally click submit ! http://www.nic.in/eximpol

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Other Online Systems

DFRC :Duty Free Replenishment Certificate EPCG Scheme NEGATIVE LIST ONLINE system Off Line Filling & Uploading to E Commerce web site of dgft http://www.nic.in/eximpol

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