Fm

Processing of an Export OrderProcessing of an Export Order An Export order is an offer to sell made by the An Export order is an offer to sell made by the

exporter and its acceptance by foreign buyer.exporter and its acceptance by foreign buyer. It is a documents communicating decision of the It is a documents communicating decision of the

foreign buyer to purchase certain item (s) from foreign buyer to purchase certain item (s) from the exporter. It specifies:the exporter. It specifies:

Description of ItemsDescription of Items Their Quantity and quality SpecificationsTheir Quantity and quality Specifications Unit PricesUnit Prices Delivery termsDelivery terms Shipping MarksShipping Marks Insurance requirementInsurance requirement

LabelingLabeling Packaging and packingPackaging and packing Payment termsPayment terms Pre-Shipment Inspection Pre-Shipment Inspection

requirementsrequirements

Export Agreement and Export Export Agreement and Export ContractContract

It is an exchange of promises-It is an exchange of promises-exporter promises to supply goods as exporter promises to supply goods as per specifications and buyer per specifications and buyer promises to make the payment.promises to make the payment.

Contract is an agreement enforced Contract is an agreement enforced by the lawby the law

Processing of Export OrderProcessing of Export Order

1.1. Exporter locates trade enquiryExporter locates trade enquiry2.2. The exporter then sends his profile to The exporter then sends his profile to

know the interests of buyerknow the interests of buyer3.3. Buyer likes to have details of certain Buyer likes to have details of certain

productsproducts4.4. Exporter then sends the quotationExporter then sends the quotation5.5. Buyer specifies his requirements Buyer specifies his requirements

regarding shape and size and other termsregarding shape and size and other terms6.6. Exporter send the Performa InvoiceExporter send the Performa Invoice7.7. Buyer confirms the Performa InvoiceBuyer confirms the Performa Invoice

Standard Clauses of Export Standard Clauses of Export ContractContract

1.1. Product and its descriptionProduct and its description2.2. Product specifications - qualityProduct specifications - quality3.3. QuantityQuantity4.4. Incoterms 2000Incoterms 20005.5. Delivery Schedule-Time period, Part/complete Delivery Schedule-Time period, Part/complete

dispatchdispatch6.6. Mode of shipment-Sea, Ship or airMode of shipment-Sea, Ship or air7.7. Type of shipment: Direct/TransType of shipment: Direct/Trans8.8. InspectionInspection9.9. Labeling-Packaging-Packing, Marking Labeling-Packaging-Packing, Marking

requirementsrequirements10.10. Insurance-By Exporter/ImporterInsurance-By Exporter/Importer

Standard Clauses of Export Standard Clauses of Export ContractContract

12 Documents required12 Documents required

13 Escalation Clause: Sharing of 13 Escalation Clause: Sharing of increase in costincrease in cost

14 Arbitration Clause: Clause of 14 Arbitration Clause: Clause of settlement of disputessettlement of disputes

15 Fines/Penalties15 Fines/Penalties

16 Applicability of Law16 Applicability of Law

Shipment of Export GoodsShipment of Export Goods

The exporter should arrange for shipment of The exporter should arrange for shipment of goods as soon as they have been cleared goods as soon as they have been cleared by the inspection agency. by the inspection agency.

The process of shipment of goods involves The process of shipment of goods involves essentially their clearance by theessentially their clearance by the

Central Excise Clearance and Central Excise Clearance and Customs Clearance of the Shipments.Customs Clearance of the Shipments.

Central Excise ClearanceCentral Excise Clearance

All the excisable goods can be removed All the excisable goods can be removed from the factory only after their clearance from the factory only after their clearance by the Central Excise Authorities. The by the Central Excise Authorities. The procedure for clearance of excisable goods procedure for clearance of excisable goods for exports can be classified into the for exports can be classified into the following two categories:following two categories:

1) Procedure for excise clearance in case of 1) Procedure for excise clearance in case of exempted unitsexempted units

2) Procedure for excise clearance in case of 2) Procedure for excise clearance in case of units other than exempted unitsunits other than exempted units

Definition of Exempted UnitDefinition of Exempted Unit:: A manufacturing unit is exempt from the levy of A manufacturing unit is exempt from the levy of

central excise if the value of the goods cleared by central excise if the value of the goods cleared by it for home consumption in a financial year is it for home consumption in a financial year is within the exemption limit of Rs. 50 lakhs. Such a within the exemption limit of Rs. 50 lakhs. Such a unit is called the exempted unit. unit is called the exempted unit.

Declarant’s Code Number: TheDeclarant’s Code Number: The exempted exempted units are not required to obtain Central Excise units are not required to obtain Central Excise Registration but have to file a declaration with Registration but have to file a declaration with the Central Excise Department. These units are the Central Excise Department. These units are then allotted the Declarant’s Code Number.then allotted the Declarant’s Code Number.

EXCISE CLEARANCE EXCISE CLEARANCE PROCEDUREPROCEDURE

The exempted units should prepare a document for The exempted units should prepare a document for clearance of goods in form of invoice with distinctive clearance of goods in form of invoice with distinctive serial numberserial number

Should have the IEC Code and the Declarant’s Code Should have the IEC Code and the Declarant’s Code Number Number

Should state that the goods are being cleared for Exports.Should state that the goods are being cleared for Exports. Should give the details of the description of goods, name Should give the details of the description of goods, name

and address of the buyer, destination, value, vehicle and address of the buyer, destination, value, vehicle number, date and approximate time of removal of goods number, date and approximate time of removal of goods and progressive total value of all excisable goods cleared and progressive total value of all excisable goods cleared for home consumption since the beginning of the for home consumption since the beginning of the financial year.financial year.

The exempted units have to file quarterly statement of all The exempted units have to file quarterly statement of all the clearances with CENTRAL EXCISE DEPT in prescribed the clearances with CENTRAL EXCISE DEPT in prescribed form enclosing the proof of export.form enclosing the proof of export.

PROCEDURE FOR EXCISE CLEARANCE IN PROCEDURE FOR EXCISE CLEARANCE IN CASE OF UNITS OTHER THAN EXEMPTED CASE OF UNITS OTHER THAN EXEMPTED

UNITSUNITS

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

exporter claims its refund after exporter claims its refund after exportation of goods.exportation of goods.

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

clearance of goods for export without clearance of goods for export without payment of the excise duty subject to the payment of the excise duty subject to the execution of bond with security or surety execution of bond with security or surety for a sum equivalent to the duty for a sum equivalent to the duty chargeable on the goods to be exported.chargeable on the goods to be exported.

Central Excise Clearance with or Central Excise Clearance with or without Examination of Goodswithout Examination of Goods

The excise officer draws 3 samples. After The excise officer draws 3 samples. After clearance of goods, the export boxes are clearance of goods, the export boxes are duly sealed by him and hands over the two duly sealed by him and hands over the two boxes to the exporter-One for exporter’s boxes to the exporter-One for exporter’s records and other to hand over to the records and other to hand over to the customs. The 3rd box is retained by him.customs. The 3rd box is retained by him.

The excise clearance after examination is The excise clearance after examination is known as exports under CENTRAL EXCISE known as exports under CENTRAL EXCISE SEAL.SEAL.

DOCUMETATION REQUIREMENT FOR DOCUMETATION REQUIREMENT FOR CENTRAL EXCISE CLEARANCECENTRAL EXCISE CLEARANCE

The basic form used for seeking Central Excise The basic form used for seeking Central Excise Clearance is AR-4 (whether by Clearance is AR-4 (whether by land/sea/air/post).land/sea/air/post).

AR4 Form: Different color of its 6 copiesAR4 Form: Different color of its 6 copies Original –WhiteOriginal –White Duplicate-BuffDuplicate-Buff Triplicate-PinkTriplicate-Pink Quadruplicate-Green Quadruplicate-Green Quintuplicate-BlueQuintuplicate-Blue Sixtuplicate-YellowSixtuplicate-Yellow

CLEARANCE UNDER CLAIM OF REBATE CLEARANCE UNDER CLAIM OF REBATE

WITHOUT EXAMINATIONWITHOUT EXAMINATION Inform the Respective officer in the Central Excise Inform the Respective officer in the Central Excise

Department within 24 hours after the removal of Department within 24 hours after the removal of the cargo from the factory.the cargo from the factory.

Submits:Submits:Triplicate, Quadruplicate, Quintuplicate and Triplicate, Quadruplicate, Quintuplicate and

Sixtuplicate of AR4 to the Superintendent of the Sixtuplicate of AR4 to the Superintendent of the central excise having jurisdiction central excise having jurisdiction

Retain original and duplicate copy with him to Retain original and duplicate copy with him to present to custom officer at the time of export.present to custom officer at the time of export.

Disposal of AR FormsDisposal of AR Forms

Triplicate: Sent to Rebate Sanctioning Triplicate: Sent to Rebate Sanctioning Authority. This copy on request is sealed Authority. This copy on request is sealed and handed over toe exporter for and handed over toe exporter for presenting to the rebate sanctioning presenting to the rebate sanctioning authority.authority.

Quadruplicate: Chief Account’s officer in Quadruplicate: Chief Account’s officer in the Collectorate Head quarter.the Collectorate Head quarter.

Quintuplicate: Retained by Central Excise Quintuplicate: Retained by Central Excise OfficerOfficer

Sixtuplicate: Given to the exporter.Sixtuplicate: Given to the exporter.

CLEARANCE UNDER CLAIM OF CLEARANCE UNDER CLAIM OF REBATE UNDER CENTRAL REBATE UNDER CENTRAL

EXCISE SEALEXCISE SEAL Export goods may not be examined by the Export goods may not be examined by the

custom officer at the airport/port,custom officer at the airport/port, Exporter submits AR4 application with all Exporter submits AR4 application with all

copies to t Central Excise at least 24 hours copies to t Central Excise at least 24 hours before he intends to remove the export before he intends to remove the export goods from the factory.goods from the factory.

An Inspector of Central Excise is deputed An Inspector of Central Excise is deputed to go for sealing and examination of the to go for sealing and examination of the export shipment.export shipment.

Disposal of AR FormsDisposal of AR Forms

Original /Duplicate: TO the export for Original /Duplicate: TO the export for presenting to the customs officer at the presenting to the customs officer at the point of export with export shipment.point of export with export shipment.

Triplicate: To the rebate sanctioning Triplicate: To the rebate sanctioning authorityauthority

Quadruplicate: To Chief Accounts Officer Quadruplicate: To Chief Accounts Officer at his Collectorate HO.at his Collectorate HO.

Quintuplicate: For his recordsQuintuplicate: For his records Sixtuplicate: To exporterSixtuplicate: To exporter

Processing of AR4 by the customs Processing of AR4 by the customs officerofficer

1.1. Original, Duplicate and Sixtuplicate copies of the Original, Duplicate and Sixtuplicate copies of the AR4 Form is given to the Custom Officer at the AR4 Form is given to the Custom Officer at the time of export time of export

2.Verification by the customs officer2.Verification by the customs officer

1.1. Original and Sixtuplicate: Given to the exporter-Original and Sixtuplicate: Given to the exporter-Original is used for filing rebate claim and the Original is used for filing rebate claim and the Sixtuplicate used for Drawback/DEEC Sixtuplicate used for Drawback/DEEC Endorsements.Endorsements.

2.2. Duplicate: Sent to Rebate Sanctioning Authority Duplicate: Sent to Rebate Sanctioning Authority declared on the AR4 form. The copy of which may declared on the AR4 form. The copy of which may be sealed and handed over to the exporter for be sealed and handed over to the exporter for presenting to the Rebate Sanctioning Authority.presenting to the Rebate Sanctioning Authority.

Claiming RebateClaiming Rebate

Documents to be filed for rebate:Documents to be filed for rebate: Application in the prescribed formApplication in the prescribed form Original Copy of AR4Original Copy of AR4 Duplicate copy of AR4 in sealed cover Duplicate copy of AR4 in sealed cover

received from Customs officer (Optional)received from Customs officer (Optional) Duly attested copy of the Bill of LadingDuly attested copy of the Bill of Lading Duly attested copy of the Shipping Bill Duly attested copy of the Shipping Bill

(Export Promotion Copy)(Export Promotion Copy)

Generally claim is disposed off within 2 Generally claim is disposed off within 2 months months

TYPES OF EXCISE BONDS:TYPES OF EXCISE BONDS:

The central excise clearance of the The central excise clearance of the export shipment without payment of export shipment without payment of Central excise duty is allowed if the Central excise duty is allowed if the exporter submits bond. exporter submits bond.

Security BondSecurity Bond Surety BondSurety Bond General Security BondGeneral Security Bond General Surety BondGeneral Surety Bond

CLEARANCE OF GOODS UNDER EXCSIE BOND CLEARANCE OF GOODS UNDER EXCSIE BOND

WITHOUT EXAMINATIONWITHOUT EXAMINATION Triplicate: To the authority before whom Triplicate: To the authority before whom

the bond is executed and who will accept the bond is executed and who will accept the proof of export i.e the Assistant the proof of export i.e the Assistant collector of Central Excise as declared by collector of Central Excise as declared by the exporter on AR4.On request the copy the exporter on AR4.On request the copy will be sealed and handed over to the will be sealed and handed over to the exporter.exporter.



CLEARANCE OF GOODS UNDER EXCSIE CLEARANCE OF GOODS UNDER EXCSIE

BOND UNDER CENTRAL EXCISE SEALBOND UNDER CENTRAL EXCISE SEAL

Original /Duplicate: TO the export for Original /Duplicate: TO the export for presenting to the customs officer at the presenting to the customs officer at the point of export with export shipment.point of export with export shipment.

Triplicate: To the rebate sanctioning Triplicate: To the rebate sanctioning authorityauthority



CUSTOMS CLEARANCE OF CUSTOMS CLEARANCE OF EXPORT SHIPMENTEXPORT SHIPMENT

Shipment by AirShipment by Air Shipment by SeaShipment by Sea Shipment by LandShipment by Land Shipment by Post Shipment by Post

COMPUTERISED PROCESSING OF COMPUTERISED PROCESSING OF EXPORT DOCUMENTSEXPORT DOCUMENTS

ROLE OF CLEARING AND ROLE OF CLEARING AND FORWARDING AGENTSFORWARDING AGENTS -Their -Their services are classified as:services are classified as:

EssentialEssential OptionalOptional

Essential Functions: CHAEssential Functions: CHA Advising the exporter as regard the relative cost Advising the exporter as regard the relative cost

of sending the goods by different of sending the goods by different airlines/shipping lines as well as selection of the airlines/shipping lines as well as selection of the route of the flight/sea route.route of the flight/sea route.

Arrangement of containers required for Arrangement of containers required for shipment of the goods.shipment of the goods.

Booking of shipping space or air freighting Booking of shipping space or air freighting Making arrangements for the shipment of goods Making arrangements for the shipment of goods to be on board the ship/plane.to be on board the ship/plane.

Providing Warehouse facility to the exporters for Providing Warehouse facility to the exporters for warehousing the goods before their warehousing the goods before their transportation to the docks/port.transportation to the docks/port.

Transportation of goods to the docks and Transportation of goods to the docks and arrangement of warehousing at the port.arrangement of warehousing at the port.

Essential Functions: CHAEssential Functions: CHA Arranging for the marine/cargo insurance of the Arranging for the marine/cargo insurance of the

shipmentshipment Preparing and processing of shipping Preparing and processing of shipping

documents required for custom clearancedocuments required for custom clearance Arranging for various endorsements/issue of Arranging for various endorsements/issue of

certificates from various agencies.certificates from various agencies. Providing assistance in the packing of the Providing assistance in the packing of the

shipmentshipment Making arrangements for local transportation of Making arrangements for local transportation of

goods to the ports/docksgoods to the ports/docks Forwarding the documents to the exporter for Forwarding the documents to the exporter for

their negotiation with the bank. their negotiation with the bank.

Optional Services-CHAOptional Services-CHA Providing warehousing abroad at least in Providing warehousing abroad at least in

some of the major international markets in some of the major international markets in case the importer refuses to take delivery case the importer refuses to take delivery of the goods for any reasonsof the goods for any reasons

Providing assistance to bring back the Providing assistance to bring back the goods to India if the situation so demandsgoods to India if the situation so demands

Providing assistance to locate the goods in Providing assistance to locate the goods in case the shipment is misplaced or the case the shipment is misplaced or the cargo is stranded at some port.cargo is stranded at some port.

Making arrangements for assessment of Making arrangements for assessment of damage to the goods to the file claim with damage to the goods to the file claim with the insurance company.the insurance company.

IMPORTANT REGISTERATIONS IMPORTANT REGISTERATIONS WITH THE CUSTOMSWITH THE CUSTOMS

Allotment of EDP NUMBER Allotment of EDP NUMBER (ELECTRONIC DATA PROCESSING)(ELECTRONIC DATA PROCESSING)

Importer-Exporter Code, Importer-Exporter Code, RBI Code Number, RBI Code Number, Authorized Dealer Code of the e Authorized Dealer Code of the e

bank and bank and current accountcurrent account

SHIPPING BILL:SHIPPING BILL: Manual:Manual: Exporter is required to file appropriate type of shipping Exporter is required to file appropriate type of shipping

bill to seek the order from customs clearance of Export Shipment bill to seek the order from customs clearance of Export Shipment called called LET EXPORTLET EXPORT..

Under computerized systemUnder computerized system the exporter is not required to file the exporter is not required to file the shipping bill but instead the shipping bill is generated through the shipping bill but instead the shipping bill is generated through the computer. The exporter/CHA has to provide information the computer. The exporter/CHA has to provide information through through DATA ENTRY CENTREDATA ENTRY CENTRE of the customs station either in of the customs station either in Annex A or B to generate the shipping bill.Annex A or B to generate the shipping bill.

Annex AAnnex A: Export of duty free goods or transactions where no : Export of duty free goods or transactions where no foreign currency is involved, trade offers, gift parcels, re-export, foreign currency is involved, trade offers, gift parcels, re-export, warranty replacements, etc.warranty replacements, etc.

Annex BAnnex B: For Export of goods under claim of duty drawback.: For Export of goods under claim of duty drawback. Verification of the dataVerification of the data The system then generates the Shipping Bill with a definite The system then generates the Shipping Bill with a definite

number.number. The shipping bill is a basic document for obtaining the LET The shipping bill is a basic document for obtaining the LET

EXPORT ORDEREXPORT ORDER

EXCHANGE CONTROL EXCHANGE CONTROL DECLARATION FORMDECLARATION FORM

Every exporter is required to declare the Every exporter is required to declare the exchange value of the export shipment by giving exchange value of the export shipment by giving an undertaking that the export proceeds shall be an undertaking that the export proceeds shall be released within a period of 6 months or due date released within a period of 6 months or due date whichever is earlier.whichever is earlier.

Manual processingManual processing: : GR FORMGR FORM for sea and air. for sea and air. It is issued in 6 copies.It is issued in 6 copies.

GR form in case of Post is called PPGR form in case of Post is called PP GR form in case of Software is called SOFTEX.GR form in case of Software is called SOFTEX. Computerized ProcessingComputerized Processing: GR Form is replaced : GR Form is replaced

by by SDF DECLARATIONSDF DECLARATION-2 Copies -2 Copies

ENDORESMENTS OR CERTIFICATIONS ENDORESMENTS OR CERTIFICATIONS ON SHIPPING BILLON SHIPPING BILL

Eg: Quota for the exports of ready Eg: Quota for the exports of ready made garments from the Apparel made garments from the Apparel Export Promotion Council on the Export Promotion Council on the shipping bill. shipping bill.

Since the shipping bill is generated Since the shipping bill is generated from the computer only after from the computer only after obtaining the LET EXPORT ORDER, obtaining the LET EXPORT ORDER, the endorsements are to be done the endorsements are to be done later.later.

DOCUMENTATION DOCUMENTATION REQUIRMENT FOR CUSTOMS REQUIRMENT FOR CUSTOMS

CLEARANCECLEARANCE Objective: To obtain LET EXPORT Objective: To obtain LET EXPORT

ORDERORDER

DOCUMENTATION REQUIRMENT IN DOCUMENTATION REQUIRMENT IN CASE OF SHIPMENT BY SEA/AIRCASE OF SHIPMENT BY SEA/AIR

Shipping Bill (if manual) or Annex A or B Shipping Bill (if manual) or Annex A or B Commercial InvoiceCommercial Invoice Packing ListPacking List Certificate of Origin/GSP Certificate of OriginCertificate of Origin/GSP Certificate of Origin GR/SDFGR/SDF Copy of the LC/Export Order/Export ContractCopy of the LC/Export Order/Export Contract AR-4 duly approved by the Central Excise officer or AR-4 duly approved by the Central Excise officer or

Invoice showing clearance of excisable goodsInvoice showing clearance of excisable goods Declaration from Export of goods under:Declaration from Export of goods under:

– Claim of duty drawbackClaim of duty drawback– Anticipation of Advance License/DEECAnticipation of Advance License/DEEC– DEEC SchemeDEEC Scheme– Without Certification from Export Inspection AgencyWithout Certification from Export Inspection Agency

DOCUMENTATION REQUIRMENT IN DOCUMENTATION REQUIRMENT IN CASE OF SHIPMENT BY SEA/AIRCASE OF SHIPMENT BY SEA/AIR

Additional Documents (If Required):Additional Documents (If Required): Export LicenseExport License Pre-Shipment CertificatePre-Shipment Certificate Marine Insurance Policy in triplicateMarine Insurance Policy in triplicate Freight DeclarationFreight Declaration Special custom/consular legalized invoiceSpecial custom/consular legalized invoice Declaration of quality, quantity and weightDeclaration of quality, quantity and weight Sea:Sea: Port Trust Copy of the shipping bill (Dock Challan)Port Trust Copy of the shipping bill (Dock Challan) Cart Chit/Vehicle ticketCart Chit/Vehicle ticket

DOCUMENTATION REQUIRMENT IN DOCUMENTATION REQUIRMENT IN

CASE OF SHIPMENT BY POSTCASE OF SHIPMENT BY POST CUSTOM DECLARATION FORM instead of Shipping BillCUSTOM DECLARATION FORM instead of Shipping Bill Commercial InvoiceCommercial Invoice Packing ListPacking List Certificate of Origin/GSP Certificate of OriginCertificate of Origin/GSP Certificate of Origin Copy of the LC/Export Order/Export ContractCopy of the LC/Export Order/Export Contract AR-4 duly approved by the Central Excise officer or Invoice AR-4 duly approved by the Central Excise officer or Invoice

showing clearance of excisable goodsshowing clearance of excisable goods Instead of GR/SDF, the Exchange Control Declaration Form will Instead of GR/SDF, the Exchange Control Declaration Form will

be PP FORMbe PP FORM DEEC Book in case of shipment under Advance License is DEEC Book in case of shipment under Advance License is

required.required. Form D in case the shipment is for exports of goods under claim Form D in case the shipment is for exports of goods under claim

for duty Drawback.for duty Drawback. Insurance PolicyInsurance Policy Export LicenseExport License Pre-shipment inspection CertificatePre-shipment inspection Certificate

DOCUMENTATION REQUIRMENT IN DOCUMENTATION REQUIRMENT IN

CASE OF SHIPMENT BY LANDCASE OF SHIPMENT BY LAND The shipment of goods by lorry of rail or boat can be sent to the neighboring The shipment of goods by lorry of rail or boat can be sent to the neighboring

countries like Pakistan, Bangladesh Myanmar and Nepalcountries like Pakistan, Bangladesh Myanmar and Nepal

Documents required are:Documents required are: Bill of Export of appropriate typeBill of Export of appropriate type Commercial InvoiceCommercial Invoice Packing ListPacking List Certificate of Origin/GSP Certificate of OriginCertificate of Origin/GSP Certificate of Origin Copy of the LC/Export Order/Export ContractCopy of the LC/Export Order/Export Contract AR-4 duly approved by the Central Excise officer or Invoice showing AR-4 duly approved by the Central Excise officer or Invoice showing

clearance of excisable goodsclearance of excisable goods Exchange Control Declaration Form will be GR FORMExchange Control Declaration Form will be GR FORM Drawback Bill Drawback Bill Insurance PolicyInsurance Policy Export LicenseExport License Pre-shipment inspection CertificatePre-shipment inspection Certificate

CUSTOMER CLEARANCE CUSTOMER CLEARANCE PROCEDURESPROCEDURES

Checking the Shipping DocumentsChecking the Shipping Documents Physical Examination of the export Physical Examination of the export

cargocargo Loading of the goodsLoading of the goods Post Loading CertificationPost Loading Certification

SHIPMENTS BY AIRSHIPMENTS BY AIR Checking Of the Shipping DocumentsChecking Of the Shipping Documents:: Booking –Carting Order-AWBBooking –Carting Order-AWB Submit the Original and Duplicate of SDF to the Central Submit the Original and Duplicate of SDF to the Central

Registration Unit (CRU) who signs the SDF form and allots Registration Unit (CRU) who signs the SDF form and allots the running 10 digit RBI Code number on the SDF Forms the running 10 digit RBI Code number on the SDF Forms

The CHA then submit the Annex A or B as per the case to The CHA then submit the Annex A or B as per the case to the Service Center at the Customs Stationthe Service Center at the Customs Station

The service center then issues the Check list to CHA for The service center then issues the Check list to CHA for verification who verifies and signs and gives back to the verification who verifies and signs and gives back to the service center for generation of the shipping bill for noting service center for generation of the shipping bill for noting and further processing.and further processing.

The service Center generates the shipping bill and shipping The service Center generates the shipping bill and shipping bill number is automatically allotted to it for follow upbill number is automatically allotted to it for follow up

SHIPMENTS BY AIRSHIPMENTS BY AIR

The export documents are submitted to The export documents are submitted to the export department of the customs for the export department of the customs for checking. checking.

Once satisfied the customs officer Once satisfied the customs officer examining the documents determines the examining the documents determines the extent of physical examination of goods extent of physical examination of goods and the official is assigned to conduct the and the official is assigned to conduct the physical examination.physical examination.

If any export cess has to be paid, then its If any export cess has to be paid, then its receipt should be submitted to the receipt should be submitted to the accounts dept of customs accounts dept of customs

SHIPMENTS BY AIRSHIPMENTS BY AIR Physical examination of the export cargoPhysical examination of the export cargo Cargo is brought to the export shed on the day mentioned in the Cargo is brought to the export shed on the day mentioned in the

caring order.caring order. CHA gives ANNEXE C to the examining officer, who verifies CHA gives ANNEXE C to the examining officer, who verifies CHA then arranges to unload the cargo and does the weight CHA then arranges to unload the cargo and does the weight

check.check. CHA arranges for the stacking of the cargo in the export cargo CHA arranges for the stacking of the cargo in the export cargo

shed at the place ear marked for the particular airlineshed at the place ear marked for the particular airline If satisfied then the in order then the inspector shall record the If satisfied then the in order then the inspector shall record the

report of the physical examination of the cargo on the shipping report of the physical examination of the cargo on the shipping bill through the computer system.bill through the computer system.

The superidentant of the customs will then issue the LET The superidentant of the customs will then issue the LET EXPORT ORDER if the report and the documents are in order.EXPORT ORDER if the report and the documents are in order.

CHA will now get the shipping bill printed and he is given the CHA will now get the shipping bill printed and he is given the exporter’s copy and the export promotion copy of the shipping exporter’s copy and the export promotion copy of the shipping bill duly signed by the competent authorities.bill duly signed by the competent authorities.

SHIPMENTS BY AIRSHIPMENTS BY AIR Loading of the Goods:Loading of the Goods: After the LET EXPORT ORDER, export cargo is moved to the After the LET EXPORT ORDER, export cargo is moved to the

bonded are for its storage and palletisation by International bonded are for its storage and palletisation by International Airport Authority of India (IAAI) The latter acknowledges the Airport Authority of India (IAAI) The latter acknowledges the receipt of the cargo and on the caring order and copy of the receipt of the cargo and on the caring order and copy of the AWB. For security reason a period of 24-48 hours is AWB. For security reason a period of 24-48 hours is observed before loading the cargo aboard in the aircraft.observed before loading the cargo aboard in the aircraft.

The airline prepares the EXPORT GENERAL MAINFES (EGM) The airline prepares the EXPORT GENERAL MAINFES (EGM) before the arrival of the flight for its handing over to the before the arrival of the flight for its handing over to the customs. customs.

On the day of the flight the cargo is moved to the loading On the day of the flight the cargo is moved to the loading are as per the details given by EGM and loading is under are as per the details given by EGM and loading is under the supervision of the customs officer in charge of loading the supervision of the customs officer in charge of loading operations.operations.

After the cargo is loaded the airlines file EGM with the After the cargo is loaded the airlines file EGM with the customs in a day or two.customs in a day or two.

SHIPMENTS BY AIRSHIPMENTS BY AIR

Post lading Certification:Post lading Certification: After loading the captain of the airline After loading the captain of the airline

flight signs the duplicate and triplicate flight signs the duplicate and triplicate copy of the shipping bill against the goods copy of the shipping bill against the goods received by him. received by him.

After the process of customs clearance, After the process of customs clearance, the CHA/exporter is returned the the CHA/exporter is returned the documents he has submitted except for documents he has submitted except for the original SDF is directly given by the original SDF is directly given by customs to the RBI customs to the RBI

SHIPMENT BY SEASHIPMENT BY SEA Verification of Documents:Verification of Documents:Facilities are provided by Port Trust Authority of the concernedFacilities are provided by Port Trust Authority of the concernedsea port.sea port.

Booking starts 4-6 weeks before the arrival of the ship and Booking starts 4-6 weeks before the arrival of the ship and CHA gets the Shipping OrderCHA gets the Shipping Order

The customs authority assign a number and date on the The customs authority assign a number and date on the shipping bill, GR/SDF and also assign the rotation number of shipping bill, GR/SDF and also assign the rotation number of the ship/vessel, the details of shipment are noted in a the ship/vessel, the details of shipment are noted in a register.register.

After the examination of documents and appraisement of the After the examination of documents and appraisement of the value, the Customs Appraiser/Examiner makes an value, the Customs Appraiser/Examiner makes an endorsement on the shipping bill giving the directions to the endorsement on the shipping bill giving the directions to the Dock Appraiser to conduct the physical Examination of the Dock Appraiser to conduct the physical Examination of the goodsgoods

SHIPMENT BY SEASHIPMENT BY SEA

..At this stage the Original Shipping bill and aAt this stage the Original Shipping bill and acopy of the commercial invoice are returnedcopy of the commercial invoice are returnedto the CHA to be presented to the Dock to the CHA to be presented to the Dock Appraiser.Appraiser.

CHA then submits the Port Trust documentsCHA then submits the Port Trust documentsto the Shed Supervisor of the port and to the Shed Supervisor of the port and obtain the caring order for bring the export cargo to obtain the caring order for bring the export cargo to the transit shed for physical examination by the the transit shed for physical examination by the Dock Appraiser.Dock Appraiser.

SHIPMENT BY SEASHIPMENT BY SEA Physical ExaminationPhysical Examination : Done by the Dock appraiser and the : Done by the Dock appraiser and the documents submitted are:documents submitted are: Duplicate, Triplicate and export promotion copy of the shipping Duplicate, Triplicate and export promotion copy of the shipping

billbill Commercial InvoiceCommercial Invoice Packing ListPacking List AR-4AR-4 Inspection Certificate in OriginalInspection Certificate in Original GR/SDF (Duplicate)GR/SDF (Duplicate) After the examination, Dock Appraiser records his report on the After the examination, Dock Appraiser records his report on the

shipping bill and issues the shipping bill and issues the LET EXPORT ORDERLET EXPORT ORDER on the on the duplicate of the shipping bill and gives it to the CHAduplicate of the shipping bill and gives it to the CHA

CHA presents all the documents with LET EXPORT ORDER to the CHA presents all the documents with LET EXPORT ORDER to the Preventive Officer of Customs for the issue of Preventive Officer of Customs for the issue of LET SHIP ORDERLET SHIP ORDER

SHIPMENT BY SEASHIPMENT BY SEA Loading of the CargoLoading of the Cargo:: It is done under supervision of Preventive officer of It is done under supervision of Preventive officer of

Customs. Customs. He makes an endorsement LET SHIP ORDER on the He makes an endorsement LET SHIP ORDER on the

duplicate copy of the shipping bill. This authorizes the duplicate copy of the shipping bill. This authorizes the shipping company to accept the cargo for loading on the shipping company to accept the cargo for loading on the vessel.vessel.

After the LET SHIP Order, the cargo is move to the dock for After the LET SHIP Order, the cargo is move to the dock for loading onto the vessel. loading onto the vessel.

The mate of the ship issues a receipt called the MATE’S The mate of the ship issues a receipt called the MATE’S RECEIPT to the shed superidentant after the loading of the RECEIPT to the shed superidentant after the loading of the cargo.cargo.

The CHA gives payment of port and dock charges and get The CHA gives payment of port and dock charges and get the Mate’s receipt the Mate’s receipt

SHIPMENT BY SEASHIPMENT BY SEA Post Loading CertificationPost Loading Certification:: CHA gives the Mate Receipt to the Preventive CHA gives the Mate Receipt to the Preventive

officer who records the Certificate of Shipment on officer who records the Certificate of Shipment on all copies of the shipping bill and AR-4. all copies of the shipping bill and AR-4.

The preventive officer returns the export The preventive officer returns the export promotion cop, a copy of the drawback shipping promotion cop, a copy of the drawback shipping bill and the duplicate AR-4 to the CHA.bill and the duplicate AR-4 to the CHA.

CHA then presents the Mate receipt to the CHA then presents the Mate receipt to the shipping line and requests it for issue of BL shipping line and requests it for issue of BL (Negotiable or Non-Negotiable)(Negotiable or Non-Negotiable)

The agent of the shipping lines files the Export The agent of the shipping lines files the Export General Manifest with the customs.General Manifest with the customs.

SHIPMENT THROUGH INLAND SHIPMENT THROUGH INLAND CONTAINER DEPOTCONTAINER DEPOT

INLAND CONTAINER DEPOT (ICD) INLAND CONTAINER DEPOT (ICD) AND CONTAINER FREIGHT AND CONTAINER FREIGHT STATIONSSTATIONS

ICD’s:Pithampur, Indore, Guntur, ICD’s:Pithampur, Indore, Guntur, Haryana, Sabarmati, Gujrat, Haryana, Sabarmati, Gujrat, Chinchwad, PuneChinchwad, Pune

CFS’s: Mulund, Mumbai, Moradabad, CFS’s: Mulund, Mumbai, Moradabad, UP, Panipat, HaryanaUP, Panipat, Haryana


CWC-CENTRAL WAREHOUSING CWC-CENTRAL WAREHOUSING CORPORATION CORPORATION

Besides, the export should approach the Besides, the export should approach the Central Excise officer for the sealing of the Central Excise officer for the sealing of the container in the factory.container in the factory.

The carting order for bringing the cargo at The carting order for bringing the cargo at the ICD is issued by CWC.the ICD is issued by CWC.

The CHA presents the carting order, the The CHA presents the carting order, the check list issued by the service centre of check list issued by the service centre of the Computer Unit, Annex Cthe Computer Unit, Annex C


Once the Superintendent of the customs is satisfied Once the Superintendent of the customs is satisfied after the examination of the documents and the after the examination of the documents and the goods, he will issue the LET EXPORT ORDER on goods, he will issue the LET EXPORT ORDER on the shipping bill though the Computer system.the shipping bill though the Computer system.

After the LET EXPORT order, 5 copies of shipping After the LET EXPORT order, 5 copies of shipping bill are issued:bill are issued: Customs CopyCustoms Copy Exporter’s CopyExporter’s Copy Export Promotion CopyExport Promotion Copy TR-1 (Transference) copyTR-1 (Transference) copy TR-II CopyTR-II Copy


The CHA should submit all the 5 copies of the The CHA should submit all the 5 copies of the shipping bill and the duplicate copy of GR/SDF to shipping bill and the duplicate copy of GR/SDF to the Superintendent of the Export Shed for histhe Superintendent of the Export Shed for hissignatures who returns signatures who returns

The exporter hands over the TR-I ad TR-II copy of The exporter hands over the TR-I ad TR-II copy of the shipping copy t the CWC for its onward the shipping copy t the CWC for its onward transmission to the gateway port with export transmission to the gateway port with export containers.containers.

The shipping line’s agent issues the Received for Shipment BLThe shipping line’s agent issues the Received for Shipment BL to the CHA at the ICD which is converted into SHIPPED ON to the CHA at the ICD which is converted into SHIPPED ON BOARD when the container is loaded on the ship at the sea BOARD when the container is loaded on the ship at the sea port.port.

EXPORT THROUGH POST EXPORT THROUGH POST PARCELPARCEL

Shipment with low volume,Shipment with low volume, High Value Goods like Handicraft High Value Goods like Handicraft

items, gems and jewelleryitems, gems and jewellery Dispatch of trade samples to the Dispatch of trade samples to the

foreign buyersforeign buyers The post parcels for the shipment of The post parcels for the shipment of

export goods are sent through the export goods are sent through the FOREIGN POST OFFICESFOREIGN POST OFFICES

Steps are to be followed while sending Steps are to be followed while sending shipment by postshipment by post

Booking:Booking: The parcels for export goods should be booked The parcels for export goods should be booked by the Foreign POST OFFICESby the Foreign POST OFFICES

Weight:Weight: The general maximum Weight limit of a foreign The general maximum Weight limit of a foreign parcel by sea/air is restricted to 20/10kg respectively by the parcel by sea/air is restricted to 20/10kg respectively by the Universal Postal Union. Universal Postal Union.

Size: Size: Maximum Size of post parcel should not exceed 2 METERS. Maximum Size of post parcel should not exceed 2 METERS.

However in no case should the length exceed 1.05 METERSHowever in no case should the length exceed 1.05 METERS Minimum Size should not be less than 90mmx140mmMinimum Size should not be less than 90mmx140mm Manner of addressingManner of addressing: It is obligatory to write the : It is obligatory to write the

address of the sender on the parcel in ink or with copying address of the sender on the parcel in ink or with copying ink pencil.ink pencil.

Steps are to be followed while sending Steps are to be followed while sending shipment by postshipment by post

Packing:Packing: Leave sufficient space for scribbling instructions and affixing Leave sufficient space for scribbling instructions and affixing

stamps and labelsstamps and labels Parcel should be sturdy to cover long distances or is to undergo Parcel should be sturdy to cover long distances or is to undergo

many trans-shipmentsmany trans-shipments An Air Mail post parcel must bear on the top left hand corner of An Air Mail post parcel must bear on the top left hand corner of

the address side, the special blue mail air mail label-PAR AVION-BY the address side, the special blue mail air mail label-PAR AVION-BY AIR MAIL AVAILABE AT POST OFFICEAIR MAIL AVAILABE AT POST OFFICE

Documentary Requirements:Documentary Requirements:Dispatch note: Dispatch note: It is used for giving instructions to the postal It is used for giving instructions to the postal

authorities for the treatment to be given to the parcel in the event authorities for the treatment to be given to the parcel in the event of its non-delivery. Failing which, the parcel is automatically of its non-delivery. Failing which, the parcel is automatically returned back giving rise to covering of return charges.returned back giving rise to covering of return charges.

Customs Declaration Form (CDF)Customs Declaration Form (CDF) PP Form:PP Form:

EXPORT SHIPMENT THROUGH COURIEREXPORT SHIPMENT THROUGH COURIER

To send samples or free trade To send samples or free trade samples or documents or small samples or documents or small shipmentsshipments

Maximum Weight of the package Maximum Weight of the package should not be more than 70 kgshould not be more than 70 kg

The exporters now can send the The exporters now can send the commercial samples up to the value commercial samples up to the value limit of Rs 50000/-.limit of Rs 50000/-.

EXPORT SHIPMENT THROUGH COURIEREXPORT SHIPMENT THROUGH COURIER

The authorized courier shall file a statement with the proper The authorized courier shall file a statement with the proper officer of the Customs either in the Form Courier Shipping Bill-officer of the Customs either in the Form Courier Shipping Bill-I or the Form courier shipping bill-II regarding the export I or the Form courier shipping bill-II regarding the export goods before the departure of the flight.goods before the departure of the flight.

After filing the relevant Courier Shipping Bill with custom After filing the relevant Courier Shipping Bill with custom officer with inspect, examine and assess the consignment.officer with inspect, examine and assess the consignment.

The Courier should pack the export goods separately in The Courier should pack the export goods separately in separate identifiable courier company bags with appropriate separate identifiable courier company bags with appropriate labels in the following categories, namelylabels in the following categories, namely DocumentsDocuments Samples and Free giftsSamples and Free gifts Dutiable or Commercial GoodsDutiable or Commercial Goods

SHORT AND SHUT OUT SHIPMENTSHORT AND SHUT OUT SHIPMENT

Sometimes, it may so happen that all the export boxes cannot Sometimes, it may so happen that all the export boxes cannot be stuffed into it and the remaining boxes have to be sent be stuffed into it and the remaining boxes have to be sent separately. separately.

In such a case the exporter or his agent will have to inform In such a case the exporter or his agent will have to inform the CUSTOMS about the part of the shipment not being sent the CUSTOMS about the part of the shipment not being sent to get the endorsement n the GR Form to get the endorsement n the GR Form

In case of SHUT-Out Shipment the exporter should give In case of SHUT-Out Shipment the exporter should give similar notice to the customs who will forward a copy of this similar notice to the customs who will forward a copy of this notice to the RBI For cancellation of the original GR. New GR notice to the RBI For cancellation of the original GR. New GR is used if the goods are to be exported subsequently.is used if the goods are to be exported subsequently.

Pre-Shipment DocumentationPre-Shipment Documentation

Importance of Export Importance of Export DocumentsDocuments::

The export documentation should be The export documentation should be prepared with care as they are used prepared with care as they are used (i) as an evidence of the shipment (i) as an evidence of the shipment and title of goods and title of goods

(ii) for obtaining payment.(ii) for obtaining payment.

Basic Documents:Basic Documents: Export OrderExport Order Performa InvoicePerforma Invoice Packing ListPacking List

Documents required by Customs:Documents required by Customs: Shipping BillShipping Bill

Foreign Exchange related documents:Foreign Exchange related documents: Form SDFForm SDF GR FormGR Form SoftexSoftex PP FormPP Form

Documents specifically required by the Documents specifically required by the buyer to avail concession or to facilitate buyer to avail concession or to facilitate easy passage of the cargo:easy passage of the cargo:

GSP / Certificate of OriginGSP / Certificate of Origin Inspection CertificateInspection Certificate Bill of exchangeBill of exchange Consular InvoiceConsular Invoice

Documents relating to shipmentDocuments relating to shipment Bill of leading or Charter partyBill of leading or Charter party Marine Insurance PolicyMarine Insurance Policy Shipping BillShipping Bill

Export Order: ThisExport Order: This is the document on the is the document on the basis of which the exporter procures or basis of which the exporter procures or prepares the goods and is also useful in prepares the goods and is also useful in the preparation of various other the preparation of various other documents.documents.

Performa Invoice: Performa Invoice: This document This document indicates the details of goods to be indicates the details of goods to be exported. It is an offer to sell made by an exported. It is an offer to sell made by an exporter to the importer. Once the offer is exporter to the importer. Once the offer is accepted by the exporter it becomes an accepted by the exporter it becomes an export order.export order.

Export InvoiceExport Invoice Customs InvoiceCustoms Invoice: : Consular InvoiceConsular Invoice legalized invoicelegalized invoice Packing List:Packing List:

Intimation for Inspection: Intimation for Inspection: This is a prescribed form of This is a prescribed form of notice by the Export Inspection Agency. The exporter has to notice by the Export Inspection Agency. The exporter has to give notice for inspection in this prescribed form for inspectiongive notice for inspection in this prescribed form for inspectionof the export shipment.of the export shipment.

Inspection Certificate: Inspection Certificate: The export inspection agency The export inspection agency conducts pre-shipment inspection of the goods notified for conducts pre-shipment inspection of the goods notified for compulsory pre-shipment inspection of the export goods.compulsory pre-shipment inspection of the export goods.This agency issues the Certificate called Certification of This agency issues the Certificate called Certification of Inspection. Inspection.

Shipping Instructions: Shipping Instructions: This document provides a check list This document provides a check list of various instructions an exporter may like to convey to theof various instructions an exporter may like to convey to the Shipping agent. Shipping agent.

Certificate of Origin/GSP Certificate of Certificate of Origin/GSP Certificate of OriginOrigin

The GSP Scheme enables the The GSP Scheme enables the importers in developed countries importers in developed countries to import goods form developing to import goods form developing countries like India at concessional rates of import countries like India at concessional rates of import

duty duty or without payment of duty.or without payment of duty.

In India, GSP can be issued by the following agencies:In India, GSP can be issued by the following agencies: Export Inspection Agency (For all products)Export Inspection Agency (For all products) Textile Committee (Ready made garments and other Textile Committee (Ready made garments and other

textile products)textile products) Central Silk Board (Silk Items)Central Silk Board (Silk Items) Coir Board (For Coir Products)Coir Board (For Coir Products) Development Commissioner (HandicraftsDevelopment Commissioner (Handicrafts

Bill of exchange: Bill of exchange: It is an unconditional written It is an unconditional written order requesting the buyer to pay a specified sum order requesting the buyer to pay a specified sum of money to a specified person at specified time.of money to a specified person at specified time.

Shipping Order: Shipping Order: This is a reservation slip issued This is a reservation slip issued by the shipping line at the time of reservation of by the shipping line at the time of reservation of shipping space for a particular export shipment. shipping space for a particular export shipment.

Mate’s receipt: Mate’s receipt: It is receipt issued by Mate It is receipt issued by Mate (Chief Officer) of the ship acknowledging the (Chief Officer) of the ship acknowledging the loading of cargo on the ship. This receipt states loading of cargo on the ship. This receipt states the conditions in which goods ere received.the conditions in which goods ere received.

Bill of LadingBill of Lading

A receipt for the goods shippedA receipt for the goods shipped A contract of affreightmentA contract of affreightment a document of title to goods.a document of title to goods. It is transferable by endorsements It is transferable by endorsements

and delivery. It’s possessions and delivery. It’s possessions equivalent to the possession of equivalent to the possession of goods.goods.

Types of BLTypes of BL

Freight paid or freight to collect Freight paid or freight to collect B/B/LL

Clean or clause B/LClean or clause B/L Direct or through B/LDirect or through B/L Shipped B/L (or on-Board) and Shipped B/L (or on-Board) and

Received for shipment B/LReceived for shipment B/L Copies of B/L: The original alone Copies of B/L: The original alone

can transfer the title to the can transfer the title to the goodsgoods

Endorsement on B/L:Endorsement on B/L: The B/L is a transferable document The B/L is a transferable document

as per custom and practice. It is very as per custom and practice. It is very important and useful and the utility important and useful and the utility lies in the ability to transfer the title lies in the ability to transfer the title to the goods from the Exporter to to the goods from the Exporter to any party or to the importer by any party or to the importer by means of an endorsement on the B/L means of an endorsement on the B/L

Shipment AdviceShipment Advice Letter to Bank for Negotiation/Collection of Letter to Bank for Negotiation/Collection of

DocumentsDocuments

Regulatory Documents:Regulatory Documents:Exchange Control Declaration FormExchange Control Declaration Form –GR, PP, –GR, PP,

Softex, SDFSoftex, SDFFreight Payment CertificateFreight Payment CertificateInsurance Premium Payment CertificateInsurance Premium Payment CertificateAR4: Application for Removal of AR4: Application for Removal of Excisable Goods for ExportExcisable Goods for Export Marine Insurance PolicyMarine Insurance Policy

Shipping BillShipping Bill

It gives the details such as: It gives the details such as: Quantity and value of the goods and of the Quantity and value of the goods and of the

export order, export order, The name of the vessel carrying the goodsThe name of the vessel carrying the goods The FOB price of the goods, total number The FOB price of the goods, total number

of packages, etc. of packages, etc. This is an important document required by This is an important document required by

Customs for permitting shipment. Customs for permitting shipment.

Types of Shipping BillTypes of Shipping Bill Free shipping billFree shipping bill-used for exports of goods -used for exports of goods

which attract no duty nor entitled to any duty which attract no duty nor entitled to any duty drawback. White)drawback. White)

Drawback shippingDrawback shipping.-Green.-Green DEPB shipping bill:DEPB shipping bill: used when goods are used when goods are

shipped under the DEPB scheme-Blue shipped under the DEPB scheme-Blue Shipping bill for Ex-bond:Shipping bill for Ex-bond: used when the used when the

exported goods are those which had been exported goods are those which had been imported earlier and meant for re-export.imported earlier and meant for re-export.

Shipping bill for goods on which export duty Shipping bill for goods on which export duty is payable.-Yellowis payable.-Yellow

Re-export of imported goodsRe-export of imported goods

Black List CertificateBlack List Certificate Manufacturers/ Supplier's Quality/ Manufacturers/ Supplier's Quality/

Inspection Certificate: Inspection Certificate: Manufacturer's CertificateManufacturer's Certificate

Weight NoteWeight Note Certificate of Chemical AnalysisCertificate of Chemical Analysis Antiquity MeasurementAntiquity Measurement

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