Export Import Procedures Part 2

8/8/2019 Export Import Procedures Part 2

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Export and ImportProcedures - Part II

Dr. Anupam Varma


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Central Excise Clearance

All the excisable goods can be removedfrom the factory only after their clearanceby the Central Excise Authorities.

The procedure for clearance of excisablegoods for exports can be classified into thefollowing two categories:

1) Procedure for excise clearance in case of

exempted units2) Procedure for excise clearance in case ofunits other than exempted units


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Definition of Exempted Unit

A manufacturing unit is exempt from thelevy of central excise if the value of the

goods cleared by it for home consumptionin a financial year is within the exemptionlimit of Rs. 50 lakhs.

The exempted units are not required toobtain Central Excise Registration but haveto file a declaration with the Central ExciseDepartment. These units are then allottedthe Declarants Code Number.


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Excise Clearance Procedure

Exempted Units

The exempted units should: Prepare a document for clearance of goods in form of

invoice with distinctive serial number indicating the

IECCode and the Declarants Code Number State that the goods are being cleared for Exports. Give the details of the description of goods, name

and address of the buyer, destination, value, vehiclenumber, date and approximate time of removal ofgoods and progressive total value of all excisable

goods cleared for home consumption since thebeginning of the financial year. File quarterly statement of all the clearances with

CENTRAL EXCISE DEPT in prescribed form enclosingthe proof of export.


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Procedure of Excise Clearance UnitsOther Than Exempted Units

Export under claim of rebate of duty:The excise duty is first paid and then the

exporter claims its refund after exportation

of goods.

Export under Bond:In this case, the exporter is allowed clearance

of goods for export without payment of the

excise duty subject to the execution ofbond with security or surety for a sumequivalent to the duty chargeable on thegoods to be exported.


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DOCUMETATION REQUIREMENT FORCENTRALEXCISE CLEARANCE

The basic form used for seeking Central Excise Clearanceis ARE-1 (whether by land/sea/air/post)- Differentcolor of its 5 copies

Original White, returned by excise dept to exporter

immediately after endorsements and signature Duplicate-Buff, returned to the exporter immediately

after endorsements and signature. Triplicate-Pink, Sent to the officer with whom rebate

claim is to be filed Quadruplicate-Green, Retained for official records

Quintuplicate-Blue, Optional copy - returned to theexporter immediately after endorsements andsignature.


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Appointment ofClearing & Forwarding

Agents Main Functions

Main functions of the agent are to

Obtain customs clearance of goods,

Ship them and Procure the relevant transport

document (Bill of Lading or Airway

Bill).


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Appointment ofClearing & Forwarding

Agents Other Important FunctionsPerform a number of functions on behalf of

the exporter

Provide specialized help by undertaking the

procedural and documentary formalities fromexporters warehouse to importer's warehouse

Helping in packing, marking and labeling ofconsignment,

Arrangement for transport to the port, shipmentoverseas, arranging insurance

Customs clearance of cargo,

Procurement of transport and other documents.


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Customs

Clearance - ObjectivesCustoms clearance of import/export goods

under Customs Act 1962

Regulating export/import in a free &

transparent manner as per prescribed lawand control illegal trade

To ensure authenticity of value of exportgoods to check over/under invoicing

To correctly assess and collect export/importduty, if applicable.

To compile data on cargo movements.


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Procedure ofCustom Clearance

Permission is granted in two stages

Checking of shipping document in theCustoms office.

Physical examination of goods in the shipment

shed


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Shipping Bill It is the main document on which customs

clearance given for allowing shipment

Documents required for processing of

shipping bill:a. GR forms in duplicate

b. Four copies of Packing List

c. Four copies of Invoices

d. Contract, L/C, Purchase Ordere. ARE 1 (both original & duplicate)

f. Inspection/Examination Certificate (contd.)


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Shipping Bill(Contd.)

Four types:

a. White shipping bill: for export of duty free

goodsb. Green shipping bill: for export of goods

under claim for duty draw back

c. Yellow shipping bill for export of dutiable

goodsd. Pink shipping bill: for export of duty free

goods ex-bond (imported goods for re-export)


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Appraisal byCustom Authorities

Customs Appraiser examines shippingdocuments and appraises value:

a. That value & qty declared in shipping billis same as in export order/LC

b. That formalities reg exchange control,pre-shipment quality inspection have been

duly completed. Customs Appraiser then makes

endorsement in duplicate copy of shippingbill for Dock Appraiser about extent of

physical examination of cargo (contd.)


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Appraisal by Custom Authorities(contd.)

Carting orders are obtained for bringingexport cargo to transit shed for physicalexamination by Dock Appraiser

Dock Appraiser records examination reportand if satisfied, makes Let Exportendorsement on duplicate copy of shippingbill

The documents then go to PreventiveOfficer of customs dept who supervisesloading of cargo on board the vessel (contd.)


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Appraisal by Custom Authorities

(Contd)

Preventive Officer endorses Let Shipon duplicate copy of shipping bill

which is handed over to the Agent ofshipping company.

This constitutes an authorisation byCustoms to the shipping company to

accept cargo on board the vessel.


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Customs Clearance GreenChannel Facility

Green channel clearance facility to somelarge and status holder exporters for importof raw materials

Clearance of goods is done without routineexamination

Assessment of duty payable is made on basisof documents submitted by importer along

with declaration about correctnessdocuments

In case of doubt customs officials can go forphysical examination


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Types of Duties Under customs laws, following are

various types of duties leviable: Basis Duty

Additional Duty (Countervailing Duty)(CVD)

Anti-dumping Duty

Protective Duty

Duty on Bounty Fed Articles

Export Duty


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