India Trade Profile

7/29/2019 India Trade Profile

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ndia Country Profile

Country InformationTrade Group MemberGeneral Import Clearance InformationIndia Import ProhibitionsGeneral Import Restrictions

India Import RestrictionsSpecial Import ProvisionsPersonal EffectsSamplesGifts

StandardsGeneral Export Clearance InformationIndia Export ProhibitionsGeneral Export RestrictionsIndia Export RestrictionsRegulatory Contact Information

Country Information

Capital: New Delhi

Population: 1,189,172,906 (est.)

Language: Hindi, 17 other national languages and hundreds of dialects

Weights and Measures: Metric

Currency: Indian Rupee (INR)100 paise = 1 Indian Rupee1 US Dollar = INR 49

Time Zone Operates on Greenwich Mean Time (GMT)India GMT+5

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rade Group Member

ndia is a member of a number of multilateral trade agreements offering preferential tariff treatment including:

World Trade Organization

stablished in 1995, the WTO has a membership of 140 countries. It is the only global international organizationealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by theulk of the world's trading nations and ratified in their parliaments. The goal is to help producers of goods andervices, exporters and importers conduct their business.

World Customs Organizationhe WCO aids the national economic wealth and social protection of its members by promoting honest, transparennd predictable Customs. Established in 1952 as the Customs Co-operation Council, the WCO is an independentntergovernmental body whose mission is to enhance the effectiveness and efficiency of Customs administrations. W51 Member Governments, it is the only intergovernmental worldwide organization competent in Customs matters
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Organization for the Prohibition of Chemical Weaponshe mission of OPCW is to implement the provisions of the Chemical Weapons Convention in order to achieve the

OPCW's vision of a world free of chemical weapons, and a world in which co-operation in chemistry for peacefulurposes for all is fostered. In doing this, their ultimate aim is to contribute to international security and stability:eneral and complete disarmament; and global and economic development.

Convention on International Trade in Endangered Species of Wild Flora and FaunaCITES entered into force on 1975 and now has a membership of 152 countries. These countries act by banningommercial international trade in an agreed list of endangered species and by regulating and monitoring trade in oth

hat might become endangered.

Montreal Protocolhe Montreal Protocol on substances that deplete the ozone layer is a landmark international agreement designed torotect the stratospheric ozone layer. The treaty was originally signed in 1987 and stipulates that the production andonsumption of compounds that deplete ozone in the stratosphere are to be phased out.

Organization for Economic Co-operation and Developmenthe OECD groups 30 countries in an organization that, most importantly, provides governments a setting in whichiscuss, develop and perfect economic and social policy. They compare experiences; seek answers to commonroblems; and work to co-ordinate domestic and international policies that increasingly, in today's global economy

must form a web of even practice across nations.Wassenaar Arrangementstablished in order to contribute to regional and international security and stability by promoting transparency andreater responsibility in transfers of conventional arms and dual use goods and technologies, thus preventingestabilizing accumulations. Participating states, France included, will seek, through their national policies, to ensuhat transfers of theses items do not contribute to the development or enhancement of military capabilities whichndermine these goals, and are not diverted to support such capabilities.

urthermore, India is a number of regional organizations including;

AARC (South Asian Association for Regional Co-operation). Member countries include - Bangladesh, Bhutandia, Maldives, Nepal, Pakistan and Sri Lanka. SAARC provides a platform for the peoples of South Asia to workogether in a spirit of friendship, trust and understanding. It aims to accelerate the process of economic and socialevelopment in Member States.

Bangkok Agreement (BA)- signed in 1975 as an initiative of ESCAP, the Bangkok Agreement is a preferential tarrangement that aims at promoting intra-regional trade through exchange of mutually agreed concessions by membountries. Bangladesh, India, Republic of Korea, Lao Peoples Democratic Republic and Sri Lanka were signatoriehe Agreement. Several rounds of trade negotiations have taken place and a schedule for the commencement of a thound is being drawn up by ESCAP which also functions as the secretariat for the Agreement.

General System of Tariff Preferences (GSTP) - The GSTP agreement seeks to promote and sustain mutual trade

nd the development of economic cooperation among developing countries, through the exchange of concessions inccordance with the provisions of the agreement. In essence, the GSTP agreement provides for tariff preferences onrade among its 44 member countries. Additionally, the agreement provides for the possibility of negotiating non-tareferences.

outh Asian Preferential Trading Arrangement (SAPTA) - The main aim of SAPTA is to promote and sustainmutual trade and economic cooperation among the member states (Contracting States) through exchange ofoncessions in respect of tariffs, para-tariffs, non-tariff barriers and direct trade measures. SAPTA also provides fopecial and more favorable treatment exclusively for the Least Developed member countries (LDCS) in order to ashem in deriving equitable benefits from the agreement. These include measures to promote exports by expandingroduction base by setting up joint ventures, buy-back arrangements and other cooperative arrangements.


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ndia also benefits from bilateral trade agreements with:BangladeshBhutanSri LankaMaldivesNepal

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General Import Clearance Information

Clearance ProcessNo person can import or Export goods without obtaining an Importer-Exporter Code (IEC) Number along with a BBusiness Identification Number) from the Regional Licensing Authority (Director General of Foreign Trade) unlese has specified exemption from obtaining the same. Registration with Regional Licensing Authority (DGFT) is arerequisite for all Importers and Exporters. The Customs authority will not clear goods unless the Importer/ Exporas obtained Import Export Code Number or BIN Number. However no registration is necessary for the following

ntities;All Ministries/ Departments of the Central Government and agencies wholly or partially owned by themAll Ministries/ Departments of the state Government and agencies wholly or partially owned by themDiplomatic personnel, Counselor officers in India and the officials of the UNO and its specialized agenciesIndian returning from/ going abroad and claiming benefit under baggage rulesPersons/ Institutions/ Hospital importing or exporting goods for their personnel use not connected with trade ormanufacture or agriculture.Persons importing / exporting goods from / to Nepal provided the CIF value of a single consignment does notexceed Indian rupees INR 25000/-Persons importing / exporting goods from / to Myanmar through the Indo-Myanmar border area provided the CIvalue of a single consignment does not exceed Indian rupees INR 25000/-Ford FoundationImporters importing goods for display or use in Fair/ Exhibitions or similar event under the provision of ATACarnet.Director, National Blood Group Reference Laboratory, Bombay or their authorized officesIndividual / Charitable Institutions/ Registered NGOs importing goods, which have been exempted from CustomDuty under the notification issued by Ministry of Finance for Bonafide use by the victims effected by naturalCalamity.

here are two categories of users into India:

Actual users

Actual users (Industrial): Actual Users (industrial) are persons who utilizes the imported goods for manufacturing heir own industrial units or manufacturing for their own use in another unit including a jobbing unit.

Actual users (Non-industrial):Actual users (non-industrial) are persons who utilizes the imported goods for their owse in:

any commercial establishment carrying on any business, trade or profession; orany laboratory Scientific or Research and Development (R&D) institution, university or other educational instituor hospital: or
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Non-Actual users include

Importers for stock and salePersonal ImportsImports of Gifts etc.

Categories of Imports and Exportmport status of commodities can be broadly categories as:

Free Import - Import of the commodities categorized under this does not require any special or license.Restricted Import - Import of these commodities require Import LicenseCanalised Import - Import of these commodities is canalized (restricted for import/export) through the appointedagencies only.Prohibited - Import of these commodities is prohibited and these commodities are not allowed to be imported intIndia.

pecial Schemes for ImportAs per the current Import-Export Policy & Procedure, the import of goods is also permissible under the followingpecial schemes designed to encourage export:

Export Promotional Capital Goods Scheme (EPCG) under which capital goods can be imported at aconcessional/custom duty rate subject to export obligation.Duty Exemption/Remission Scheme and Duty Entitlement Pass Book Scheme under which imported raw materiaand components etc. required, as imports for export production are made available to the registered exporters inadvance free of Custom duty.Diamond, Gem & Jewelry Export Promotion Scheme and Diamond Dollar Account Scheme for promoting expoGold silver and jewelry articles etc.Export Oriented Units (EOUs) and units in Export Processing Zones (EPZs). Electronic Hardware Technology P(EHTP) and Software Technology Park (STP) Scheme. These are special economic zones where companies withthese zones are permitted to import all types of permissible Capital goods, raw material etc. free of excise and

custom duty.Special Economic Zones permitted duty free import/procurement from Duties and Tax for development of SEZ asetting up a factory in the zone, licence for SSI items not required etc.

Goods can be imported into India on 2 modes:

1. Courier (OBC) or Express Mode2. Formal Clearance or Freight Mode

Y PE A: Courier (OBC) or Express Mode of Clearancehis entry process is a faster and less restrictive mode of clearance regulated by the Courier Import and ExportClearance) Regulations 1998. It is highly restrictive in that it is limited to certain items/commodities and value/weimits. For all formal clearance shipments, the importer is required to appoint a broker for clearance and has the opf choosing a FedEx broker or his own broker for clearance. Additional brokerage charges apply to any formalearance:

Y PE B: Courier (OBC) or Express Mode of Clearancehe following items/ commodities cannot be cleared under Courier (OBC) mode and must enter India on Formal

Clearance Freight mode. These items require a formal Bill of Entry for customs clearance.

Package Weight - If the package weight is more than 32 Kgs.Shipment Value - If the value of the shipment is more than US$ 1500


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Any restricted commodity subject to licensing/permit requirementsAnimals and parts thereofPlants and parts thereofPerishable goodsInorganic Chemicals, Organic or Inorganic Compounds of (I) Precious Metals, (ii) Rare Earth Metals, (iii)Radioactive Elements of IsotopesFluorine, Chlorine, Bromine and IodineSulphurAcids

SaltsHydrogen, rare gases & non metalsGold or silver in any formPrecious, Semi-precious jewelry or stones

Organic Chemicals

HydrocarbonsAntibioticsPro-vitamins

Nucleic Acids

Miscellaneous Chemical Products

Artificial GraphiteActivated CarbonsInsecticides, rodenticides, fungicides, herbicides

edEx Clearance (Import)

Courier (OBC) Mode of Arrivalor the Courier clearance a Courier Bill of Entry (CBE) is filed with customs for clearance. CBE is produced toustoms in 3 main forms: -

CBE III (Courier Bill of Entry for Documents0CBE IV (Courier Bill of Entry for Low Value, i.e. Non Documents up to INR.10000CBE V (Courier Bill of Entry for Medium Value, i.e. Non Documents with value INR. 100,000 /- (Rs One Lakh)US$ 101 to US$ 1500)

CBE-III: Documents are cleared within 1 Hour of arrival of shipments at the clearance facilityCBE IV: Low Value Non Documents are subject to a minimum of 25% physical check

CBE V: Medium Value Non Documents are subject to 100% examination and assessment by customs officialsype: II Cargo (Freight) Mode of Arrival - Formal Clearanceor shipments above INR 100,000 and for the commodities restricted for courier import, a Formal Bill of Entry isequired to be filed for clearance by authorised Customs House Agent (CHA). Consignee has the option to appoint wn broker or FedEx broker for the clearance under Formal Bill of Entry. The brokerage charges will be extra and e billed to Consignee or Shipper. Formal Clearance takes 2 business days or more.

All non document shipments destined to Karnataka state require a TIN #(Tax Payer's Identification Number) of thonsignee. The shipper should state the TIN#on the Commercial Invoice to avoid delay in delivery and state levelntry fees.


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Document Requirementshe following documents may be required for formal customs clearance into India:.

Manufacturer's Commercial Invoice duly Signed and if possible Bank AttestedPrice list of the commodities in shipmentManual and Catalogue , write ups or Technical Literature for laboratory or Electronic equipment

Import declaration and GATT Declaration sign and stamp by consignee.( Two copies)Packing List duly signedPurchase OrderAuthority letter from ConsigneeIf the final destination is other than Mumbai then an N- Form signed and stamped is requiredImport Duty/ Warehouse / Octroi/ D.O Charges in advanceAny applicable Special Import LicenseCertificate of origin , mill test certificate, test report ( applicable for metal and chemical groups only)Industrial licence/ Company Registration certificate copy for N Form ClearanceCopy of IEC/BIN Number required from importer.

or clearance of all live plant and flower, a phytosanitary certificate is required from Plant Quarantine Officer. In caf Drugs and Medicines, prior approval of assistant Drug Controller is necessary. Delivery of radioactive materialsnd explosives can only be cleared if bill of entry is accompanied by NOC from the department of atomic energy ohe Controller of Explosives and release of live birds and animals would be required certificate from AnimalQuarantine officer this can only cleared in cargo terminal and can not be booked as IP commodities

Value for Customs Purposes" and/or "0" is not acceptable on the Commercial Invoice or any document for shipmeo India. A complete description along with the correct market value of the shipment is required; undervaluedhipments will be reassessed by Customs and fines will be imposed. The invoice must have itemized value for theontents with Harmonized Tariff Number of the commodity and it must be signed by the shipper.

Multiple Piece Shipments (MPS) require a Commercial Invoice detailing the contents of each individual packagewithin the shipment. Incomplete or wrong description of goods as well as wrong weight or declared value, will resun fines and seizures. Shipper and consignee information must be complete and accurate for customs clearanceurposes.

Customs Valuationhe valuation of goods for customs purpose is done as per the principles laid down in Custom ValuationDetermination of Price of Imported Goods) Rules, 1998. Goods can attract a specific rate of duty or a rate ad valor

where often the importer and Customs administration have a dispute on value of goods. The Valuation on invoicerice cannot be denied if the condition of relevant notification are satisfied unless buying and selling companies canroved to be related person, who are influencing the invoice price. If the value of a particular item accepted by theustom authorities become a precedent, different valuation subsequently are arbitrary.

Value Rules for Customs Duty and Taxhead valoremrates of duties are subjected to the value of a product. This value is generally constituted by thelements of cost, insurance and freight. In addition landing charges are also added to the CIF at 1% of CIF value torrive at the assessed value of goods.

the breakdown of Cost, Insurance and Freight is not clearly provided on the invoice, customs may load the value


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hese categories as: -

Insurance at 1.125%Freight at 20%

For Clearance of bona fide samples the duties and taxes applicable, if any are calculated on the FOB value andreight, Insurance and Landing Fee is not loaded for the calculation of Duties and Taxes).

mport Dutiesariffsndia follows the Harmonized Code System of the World Customs Organization for classification of commodities (o 10 digits). The following are the Import Duties which are presently levied on import of goods into India---

Basic Duty OF Customs (BASIC)mport Duty, which is specified against each Heading or Sub-heading in the first Schedule to the CTA. This isopularly called Basic Custom Duty. There are different rates of duty for different commodities. This duty is alsonown as Schedule rate and it can be changed by an Act of parliament. The duty can also be changed by thexemption notification of the department of Revenue. All basic duties are given as per Finance Act, 1999 and areomputed on the aggregate of assessable value.

referential Rate of Duty (PRE)here are also different rates of duty for goods imported from certain countries in terms of bilateral or othergreements with such countries ----which are called preferential rates of duties. The duty may be a percentage of thalue of the goods (when it is called ad valorem duty) or at a specific rate.

AntidumpingAnti-dumping DutyUnder section 12 of the Custom Act, 1962 Antidumping duties are applied at the rates specified goods imported fropecified countries to protect indigenous industry from injury resulting from dumping of goods.

Countervailing Duty (CVD)

Additional duty equal to the excise leviable on like goods produced or manufactured in India. This is levied underection 3 of CTA. This is commonly called "countervailing duty"(CVD). If such duty is on ad valorem basis then talue for this purpose is the total of the assessable value plus custom duty

xcise Dutieshere are several types of excise duties in India which are applied at the time of clearance of such goods. These dure :

Basic Excise DutySpecial Excise DutyAdditional Duties of ExciseCess

Basic Excise Duty : This duty is specified against each sub-heading in the First Schedule to the Central Excise TaAct, 1985. There are however, notifications issued by the Central Government which grant either total or partialxemption from incidence of basic duty. These exemptions are both general and conditional in nature. The effectivate of basic excise duty is thus determinable only after reference to the relevant exemption notification given undeeading "General Exemptions".

pecial Excise Duty : This duty is leviable only on a few items. The rate of duty and the items on which it is leviare specified under the Second Schedule to the Central Excise Tariff Act, 1985.


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Additional Duties of Excise : There are a number of additional duties leviable under different enactments on varioommodities. Under Additional Duties of Excise (Textile and Textile Articles) Act, 1978, duties of excise arehargeable on specified textiles and textile articles. Additional Duties of Excise (Goods of Special Importance) A957 prescribes additional duties on sugar, tobacco products and textile articles in lieu of sales tax.

Cess : Different items are subject to levy of Cess at varying rates under different enactments.

Additional Duties

pecial Additional Duty of Customs (SADD)pecial additional duty of 4% SADD will be computed on the aggregate of assessable value of basic duty of customnd additional duty of customs (CVD). The SADD will be charged under Section 3(A) of Customs Tariff Act, 1985

mport TaxesOctroin addition to the above duty, for all Mumbai destination shipments there will be Local Municipal Tax (Octroi)pplicable for Import at may be @ 4.5% on the landed value is applicable. Landed Value = Assessed Value + All

Customs Duty.

Customs Fees

Demurrage Feeshe goods discharged in the custom area by the conveyance carrying imported goods are stored in warehouses of

CWC, Port Trusts or other designated authority. Demurrage or storage charges may apply after a few days.

CessesCertain cesses are leviable, on specified articles, on export, under various statues. These Cesses are also collected auties of custom and are passed on to the administering Agencies nominated under the respective statues.

xchange Controls

ndia's exchange control policy is set and administered by Reserve Bank of India (RBI) under the Foreign Exchangmanagement Act for Importer and Exporter (FEMA). FEMA has been formed with the objective for facilitatingxternal trade and payment and for promoting the orderly development and maintenance of Foreign Exchange Marn India. The Reserve Bank of India upholds this act. Under the Rule or Regulation made there under, or with theeneral or special permission of the Reserve Bank of India, No person shall

Deal in or transfer any foreign exchange or foreign security to any person not being an authorized person.Make any payment to or for the credit of any person resident outside India in any mannerReceive otherwise through an authorized person, any payment by order or on behalf of any person resident outsidIndia in any manner

Enter into financial transaction in India as consideration for or in association with acquisition or creation or transof a right to acquire any asset outside India by any person.

or formal clearance, all exporters are required to provide a Sellers' Declaration Form (SDF) or GuaranteedRemittance Form (GR) or Exchange Control Declaration (ECD), a declaration to the Reserve Bank of India (RBI) tndicates the currency involved in a transaction and the terms of payment specified.

Any advance payments required by the exporter prior to import of the goods are permitted only if the importer obtabank guarantee from an international bank covering the advance remittance amount. The import of the goods shoormally be completed within 3 months of advance payment to the foreign exporter.


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echnical Barriers to Trade (TBT's)echnical barriers or non-tariff barriers to trade as they are sometimes known, can cause many problems for export

ooking for new markets for their products. These barriers can be in the form of regulations, standards, testing andertification procedures. The World Trade Organization (WTO) Agreement on Technical Barriers to Trade tries tonsure that these barriers do not create unnecessary obstacles. To obtain further information on Technical Barriers trade as well as Notifications on technical regulations and conformity assessment procedures, pleaseisit http://www.wto.org/english/tratop_e/tbt_e/tbt_e.htm

Consular Fees

None

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ndia Import Prohibitions

he following goods are subject to prohibition, restriction or surveillance:

ROHIBITED ITEMS

Certain animals and plants and parts or products falling under CITES (Convention on International Trade inEndangered Species of Wild Flora and Fauna).Wild animals as defined under Wild Life Protection Act 1972Meat of Wild AnimalsPig Fat, Fat of bovine animals, sheep or goatNatural Abrasives - Emery, NaturalPublications containing maps showing incorrect boundaries of IndiaBaby Gender Test KitsMoney Orders

Indian Passports are prohibited for carriage by anyone except the holder of the passport. Non-Indian Passports frUN Commission, High Commissions & Consulates are acceptable.Unsigned Credit CardsPassive Night Vision GogglesCANALISED (restricted to certain importers)Rice (through FCI)Cereals other than seed quality (through FCI)Petroleum OilJewelry (containing precious metals/stones)

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General Import Restrictions

The following items are not acceptable for carriage to any international destinations unless otherwise indicate(Additional restrictions may apply depending on destination. Various regulatory clearances in addition tocustoms clearance may be required for certain commodities, thereby extending the transit time.)

1. APO/FPO addresses.2. C.O.D. shipments.
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3. Human corpses, human organs or body parts, human and animal embryos, or cremated or disinterredhuman remains.

4. Explosives (Class 1.4 explosives are acceptable for carriage to Canada, Germany, France, J apan, UniteArab Emirates and United Kingdom. Note:United Arab Emirates only allows Class 1.4 explosives to bshipped hold-for-pickup to the FedEx Express facility in Dubai).

5. Firearms, weaponry and their parts (acceptable between the U.S. and Puerto Rico).6. Perishable foodstuffs and foods and beverages requiring refrigeration or other environmental control.7. Live animals including insects, except as provided in the Live Animals section in the FedEx Service

Guide. (Call the FedEx Live Animal Desk at 1.800.405.9052).

8. Plants and plant material, including cut flowers (cut flowers are acceptable from the U.S. to selected pin Canada and from Colombia, Ecuador and the Netherlands to the U.S.).

9. Lottery tickets and gambling devices where prohibited by law.10. Money (coins, cash, currency, paper money and negotiable instruments equivalent to cash such as

endorsed stocks, bonds and cash letters).11. Pornographic and/or obscene material.12. Shipments being processed under:

a. Duty drawbacks claims unless advance arrangements are made.b. Temporary Import Bonds acceptable under the FedEx International Broker Select option, for in

import only.c. U.S. State Department licenses

d. Carnetse. U.S. Drug Enforcement Administration export permit.f. Letters of Credit. Shipments subject to Letters of Credit are generally prohibited, with the except

of shipments subject to Letters of Credit calling for a courier receipt, as defined by Article 25 UCP 600, shipped using the FedEx Expanded Service International Air Waybill.

g. Certificate of Registration shipments (CF4455).

You may be able to ship these items via FedEx International Controlled Export, FedEx InternationalPremium, FedEx International Express Freight (IXF) or FedEx International Airpot-to-Airport (ATA)information on FedEx International Controlled Export, call International Customer Service at1.800.GoFedEx 1.800.463.3339 (say international services). For information on the other services licall FedEx Express Freight Customer Service at 1.800.332.0807.

13. Hazardous waste, including, but not limited to, used hypodermic needles or syringes or other medialwaste.

14. Shipments that may cause damage to, or delay of, equipment, personnel or other shipments.15. Shipments that require us to obtain any special licenses or permit for transportation, importation or

exportation.16. Shipments or commodities whose carriage, importation or exportation is prohibited by any law, statute

regulation.17. Shipments with a declared value for customs in excess of that permitted for a specific destination. (See

Declared Value for Carriage and Limits of Liability section in the FedEx Service Guide).18. Dangerous goods except as permitted under the Dangerous Goods section of these terms and condition

19. Processed or unprocessed dead animals, including insects and pets. Taxidermy-finished hunting trophior completely processed (dried) specimens of whole animals or parts of animals are acceptable forshipment into the U.S.

20. Packages that are wet, leaking or emit an odor of any kind.21. Wildlife products that require U.S. Fish and Wildlife Service export clearance by FedEx prior to

exportation from the U.S.22. In-bond shipments destined to or being withdrawn from a Foreign Trade Zone or bonded warehouse,

unless the FedEx International Broker Select option is selected for U.S. import shipments, or the FedExInternational Controlled Export service option is selected for U.S. export shipments.

Not withstanding any other provision of the FedEx Service Guide, we are not liable for delay of, loss of dama


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to a shipment of any prohibited item. The shipper agrees to indemnity FedEx for any and all costs, fees andexpenses FedEx incurs as a result of the shippers violation of any local, state or federal laws or regulations from tendering any prohibited item for shipment.

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ndia Restrictions

RESTRICTED ITEMS

Live Animals - other than defined under Wild Life Act 1972Live plantsMeat of Bovine AnimalsBird's eggs, in shell, fresh, preserved or cookedGuts, Bladder and stomach of animals other than fish

Potatoes, GarlicAustralian Lupin SeedsNutmeg, mace and CardamomSeedsCerealsInorganic ChemicalsOrganic or Inorganic Compounds of (I) Precious Metals, (ii) Rare Earth Metals, (iii) Radioactive Elements ofIsotopes

CANALISED (restricted to certain importers)

Rice (through FCI)Cereals other than seed quality (through FCI)Petroleum Oil

General Provisions Regarding Imports and Exports

No person can import or Export goods without obtaining an Importer- Exporter Code (IEC) Number along with a BBusiness Identification Number) from the Regional Licensing Authority (Director of Foreign Trade) unless he haspecified exempted from obtaining the same. Registration with Regional Licensing Authority (DGFT) is a pre requor all Importer and Exporter. The Customs authority will not clear the goods unless the Importer/ Exporter hasbtained Import Export Code Number or BIN Number. However no such registration is necessary for the followingersons;

All Ministries/ Departments of the Central Government and agencies wholly or partially owned by themAll Ministries/ Departments of the state Government and agencies wholly or partially owned by them


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Diplomatic personnel, Counselor officers in India and the officials of the UNO and its specialized agenciesIndian returning from/ going abroad and claiming benefit under baggage rulesPersons/ Institutions/ Hospital importing or exporting goods for their personnel use not connected with trade ormanufacture or agriculture.Persons importing / exporting goods from / to Nepal provided the CIF value of a single consignment does notexceed Indian rupees INR 25000/-Persons importing / exporting goods from / to Myanmar through Indo Myanmar border area provided the CIF vaof a single consignment does not exceed Indian rupees INR 25000/-Ford Foundation

Importers importing goods for display or use in Fair/ Exhibitions or similar event under the provision of ATACarnet.Director, National Blood Group Reference Laboratory, Bombay or their authorized officesIndividual / Charitable Institutions/ Registered NGOs importing goods, which have been exempted from CustomDuty under the notification issued by Ministry of Finance for Bonafide use by the victims effected by naturalCalamity.

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pecial Import Provisions

pecial Schemes for ImportAs per the current Import-Export Policy & Procedure, the import of goods is also permissible under the followingpecial schemes designed to encourage export:

Export Promotional Capital Goods Scheme (EPCG) under which capital goods can be imported at aconcessional/custom duty rate subject to export obligation.Duty Exemption/Remission Scheme and Duty Entitlement Pass Book Scheme under which imported raw materiaand components etc. required, as imports for export production are made available to the registered exporters inadvance free of Custom duty.Diamond, Gem & Jewelry Export Promotion Scheme and Diamond Dollar Account Scheme for promoting expoGold silver and jewelry articles etc.Export Oriented Units (EOUs) and units in Export Processing Zones (EPZs). Electronic Hardware Technology P(EHTP) and Software Technology Park (STP) Scheme. These are special economic zones where companies withthese zones are permitted to import all types of permissible Capital goods, raw material etc. free of excise andcustom duty.Special Economic Zones permitted duty free import/procurement from Duties and Tax for development of SEZ asetting up a factory in the zone, licence for SSI items not required etc.

General Import Duty Exemptions

Concessional Rate of Duty applies for Imports of listed goods from Bangladesh, Republic of Korea and Sri Lankander Bangkok Agreement.

Concessional Rate of Duty applies for Import of listed goods if imported from SAARC (South Asian Association oRegional co-operation) countries, which includes - Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka.

xemption from customs duties and taxes for listed food grains imported from Myanmar, if imported through landoute.

mport Duty Exemptions for Export PromotionUnder certain schemes the importer is exempted from customs duty if the importer has procured an advance licens


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he import and the imported material is to be used as raw material for exports. These schemes include Advance liceased Imports similar to the Value based DEEC (Duty Exemption Entitlement Certificate), Quantity based DEEC, ather Advance License schemes -

xport Promotion Capital Goods (EPCG) - Machinery, parts of machinery and other capital goods required formanufacturing and developments of export products are exempted from customs duty against the EPCG License.

xport Processing Zones (EPZ), 100% Export Oriented Units (EOU) and other Export Oriented units like Gems anewellery Exports, Software/ Hardware Exports - Goods imported by these units, for use in production and

manufacture of articles for Exports or for carrying out processing of goods intended to be exported out of India oroods imported for export promotion are exempted from customs duty and such shipments are to be transferred to PZ under customs bond for clearance and delivery.

ree warranty - articles supplied as replacement for defective onesDefective articles returned for replacement are exempt from Duty & Tax provided: -

1. The defective articles were brought into India earlier from places outside India and are private personalproperties of the importer;

2. The articles or component parts thereof, as the case may be, are imported within the warranty period and are

supplied free of charge by the foreign manufacturer in terms of the warranty given by the manufacturer inaccordance with the established trade practice pertaining to the articles;3. The repairs including replacement of the defective parts are done free of charge by the manufacturer through

agent or branch in India;4. The defective articles or component parts thereof if not re-exported, are destroyed, or surrendered to the

Customs.

n Additional to Normal Paper work, Items returned for repair must be accompanied by:

Warranty Letter in OriginalTriplicate Copy of Bill Of EntryCustoms Signed Invoice

Goods imported for carrying out repairs, reconditioning, reengineering, testing, calibration or maintenancencluding services)he following are allowed to be returned for repair exempt of duty & tax under the condition that:

1. The repairs, reconditioning, reengineering, testing, caliberation or maintenance (including service) is undertain accordance with the provisions of section 65 of the Customs Act, 1962 (52 of 1962), and

2. The goods repaired, reconditioned, reengineered, tested, calibrated or maintained (including service) are expoand are not cleared outside the Unit.

3. Capital goods and spares thereof.4. Material handling equipment's, namely, fork lifts, overhead cranes, mobile cranes, crawler cranes, hoists andstackers and spares thereof.

5. Captive power generating sets and their spares, fuel, lubricants and other consumables for such generating se6. Office equipment's, spares and consumables thereof.7. Raw materials.8. Components.9. Consumables.

10. Packaging materials.11. Tools, J igs, gauges, fixtures, moulds, dies, instruments and accessories and spares thereof.12. Goods imported for repairs, reconditioning or reengineering for export, after such repair, reconditioning or


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reengineering thereof, within three years of the date of importation

Notification No. 134/94-Cus., dated 22-6-1994 as amended by Notification No. 119/95-Cus., dated 6-7-1995.

obbing- Goods imported for the execution of export ordersCertain items imported into India required for the execution of an export order are exempt from duty & tax providehat:

1. That the goods are imported for execution of an export order placed on the importer by the supplier of goodsjobbing;2. That the goods imported, including resultant products, are re- exported within six months from the date of

clearance or within such extended period as the Assistant Commissioner of Customs or Deputy CommissioneCustoms may allow .

Other restrictions apply. Further information can be found under Notification No. 32/97-Cus., dated 1-4-1997 asmended by Notifications No. 1/99-Cus, dated 1-1-1999; No. 50/99-Cus., dated 29-4-1999 and No. 89/99-Cus., dat-7-1999 on the India Customs website.

Reimported goods - exported under duty drawback, rebate or bond. --Exemption to re-import of goodsxported under duty drawback rebate of duty or under bond

Any reimported goods can also benefit from reduced duty & tax. Specific provisions apply under Notification No.4/96N-Cus., dated 16-12-1996 . Visit the India Customs Website for full information.

Sr No1)

Description of goods(2)

Amount of duty(3)

1 Goods exported -(a) under claim for drawback of any customsor excise duties levied by the Union

Amount of drawback of customs or excise duties allowat the time of export

(b) under claim for drawback of any exciseduty levied by a State

Amount of excise duty leviable by State at the time anplace of importation of the goods

(c) under claim for rebate of Central exciseduty

Amount of rebate of Central Excise duty availed at thetime of export

(d) under bond without payment of Centralexcise duty

Amount of Central Excise duty not paid

(e) under duty exemption scheme (DEEC) orExport Promotion Capital Goods Scheme(EPCG)

Amount of excise duty leviable at the time and place oimportation of goods and subject to the followingconditions applicable for such goods - (I) DEEC book hnot been finally closed and export in question is deloggfrom DEEC book.(II) In case of EPCG scheme the period of full export

performance has not expired and necessary endorsemeregarding reimport have been made.(III) The importer had intimated the details of theconsignment re-imported to the [Assistant Commissionof Central Excise or Deputy Commissioner of CentralExcise] in charge of the factory where the goods weremanufactured and to the licensing authority regarding tfact of re-importation and produces a datedacknowledgement of such intimation at the time ofclearance of goods.(IV) The manufacturer- exporters who are registered w


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Central Excise Department may be permitted clearancsuch goods without payment of Central Excise duty untransit bond .to be executed with the customs authoritiesuch bond will be cancelled on the production ofcertificate issued by Central Excise authorities aboutreceipt of re-imported goods into their factory.

2 Goods, other than those falling under Sl. No. 1exported for repairs abroad

those falling under Sl. No. 1 exported for repairs abroaDuty of customs which would be leviable if the value re-imported goods after repairs were made up of the facost of repairs carried out including cost of materials uin repairs (whether such costs are actually incurred fornot), insurance and freight charges, both ways

2 A Goods [exported] under Duty EntitlementPassbook (DEPB) Scheme.

Amount of Central Excise duty leviable at the time andplace of importation of goods plus amount of drawbacExcise duties allowed at the time of exports, subject tothe condition that the importer produces a DutyEntitlement Passbook before the proper officer ofCustoms for debit of an amount equal to the amount ofDuty Entitlement Passbook Scheme (DEPB) credit whwas permitted by the Government of India in the Minisof Commerce for the products exported at the time ofexport of the consignment which is being re-imported.

3 Goods other than those falling under Sl. Nos.1 and 2

NIL

Reimported Indian goods and parts thereof (whether of I ndian or foreign manufacture)--when imported forepairs, reconditioning, reprocessing, remaking or similar other process examples

Goods manufactured in India reimported into India also benefit from a reduced Duty and Tax. Further information pecifics can be found at the India Customs Website (Notification No. 158/95-Cus. dated 14-11-1995.)

Sr No1)


Conditions(3)

1 Goods manufactured in India and parts ofsuch goods whether of Indian or foreignmanufacture and re-imported into India forrepairs or for reconditioning.

1. Such re-importation takes place within 3 years frthe date of exportation;

2. Goods are re-exported within six months of the of re-importation or such extended period notexceeding a further period of six months as theCommissioner of Customs may allow;

3. The Assistant Commissioner of Customs or DepCommissioner of Customs is satisfied as regardsidentity of the goods;

4. The importers at the time of importation executebond undertaking to-(a) export the goods after repairs or reconditioniwithin the period as stipulated;(b) pay, on demand, in the event of his failure tocomply with any of the aforesaid conditions, anamount equal to the difference between the duty


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levied at the time of re-import and the duty leviaon such goods at the time of importation but for exemption contained herein.

2 Goods manufactured in India and re importedfor (a) reprocessing; or (b) refining; or (c) re-marking; or (d) subject to any process similarto the processes referred to in clauses (a) to(c) above.

1. Such re importation takes place within one yearfrom the date of exportation.

2. Goods are re-exported within six months of the of re-importation or such extended period notexceeding a further period of six months as theCommissioner of Customs may allow;

3. The Assistant Commissioner of Customs or DepCommissioner of Customs, is satisfied as regardidentity of the goods.

4. The importer executes a bond to the effect -

(a) that such reprocessing, refining or remaking o

similar processes shall be carried out in any factunder Central Excise control following theprocedure laid down under rule 173MM of theCentral Excise Rules, 1944 or in a Customs bonunder provisions of section 65 of the Customs A1962 (52 of 1962);

(b) that he shall maintain a due account of the usof the said re-imported goods received in thepremises specified in item (a) above and shallproduce the said accounts duly certified by the

officer of Central Excise or Customs, as the casemay be, in charge of the factory or the bondedpremises to the effect that the goods tendered fore-import are reprocessed, refined or remade orsubjected to any process, as the case may be, frothe said re-imported goods;

(c) that in case any waste or scrap arising duringsuch operations and the importer agrees to destrothe same before the officer of Central Excise orCustoms, as the case may be, or to pay on suchwaste or scrap the appropriate duties of customs if such waste or scrap is imported;

(d) that he shall pay, on demand, in the event of failure to comply with any of the aforesaidconditions, an amount equal to the differencebetween the duty leviable on such goods at the tof importation but for the exemption containedherein.

Provided that in case of reprocessing, refining o


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remaking or similar process, if any loss of imporgoods is noticed during such operations, thequantity of such loss shall be exempted from thewhole of the duties of customs (basic customs dand additional customs duty, etc.) subject to thesatisfaction of the Assistant Commissioner ofCustoms or Deputy Commissioner of Customs tsuch loss has occurred during such operations.

xemption to goods of foreign origin imported for repairs and return -Theatrical equipments includingostumes imported by visiting foreign troupes, pontoons for speedy loading and unloading of imported goodhotographic, filming audio, video and radio equipments and tapes imported for short films, feature films aocumentaries, goods for mountaineering expeditions - Tags or labels or printed polythene bags for use onrticles for export

Notification No. 153/94-Cus., dated 13-7-1994-

Sr No

1) Description of goods(2) Conditions(3)Articles of foreign origin (i) The importer makes a declaration at the time of imp

that the said goods are being imported for repairs andreturn;(ii) the said goods are re-exported within six months ofthe date of importation or within such extended period exceeding one year as the Assistant Commissioner ofCustoms or Deputy Commissioner of Customs mayallow;(iii) the Assistant Commissioner of Customs or DeputyCommissioner of Customs is satisfied as regards the

identity of the said goods; and(iv) the importer executes a bond undertaking -(a) to re-export the said goods after repairs within sixmonths of the date of importation or within the aforesaextended period;(b) to produce the goods before the AssistantCommissioner of Customs or Deputy Commissioner oCustoms for identification before re-export;(c) to pay the duty if the re-export does not take placewithin the stipulated period.

2 Theatrical equipment including costumes (i) The said goods belong to a foreign theatrical compa

or dancing troupe and have been imported by suchcompany or troupe for its use during its tour in India;(ii) -an accredited representative of the company or troexecutes a bond, in such form and with such surety asmay be acceptable to the Assistant Commissioner ofCustoms or Deputy Commissioner of Customs, bindinhimself to pay on demand an amount equal to twice theamount of duty leviable on such theatrical equipment ithe same is not re-exported within six months from thedate of importation or such extended period not exceednine months from the date of importation as the said


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Assistant Commissioner may allow.

3 Pontoons (i) The said goods have been imported .along with ship.carrying imported goods, for the more speedy .unloadof imported goods and loading of export goods;(ii) the importer makes a declaration at the time of impthat the pontoons would be re-exported and executes abond in such form and for such sum as may be prescribby the Assistant Commissioner of Customs or DeputyCommissioner of Customs binding himself to pay thatsum if the re-export does not take place within the perspecified under condition (iii) below;(iii) the pontoons are re-exported within six months of date of importation or such extended period as theAssistant Commissioner of Customs or DeputyCommissioner of Customs may allow; and(iv) The pontoons are re-exported by the same ship whbrought them or by any other ship under the sameshipping agency.

4 Photographic, filming, sound recording andradio equipments, raw films, videotapes andsound recording tapes.

(i) A certificate is produced to the Assistant Com-:missioner of Customs or Deputy Commissioner ofCustoms] at the time of clearance of the goods from aduly authorized officer of the External Publicity Divisof the Ministry of External Affairs, Government of Indin respect of short films and documentaries .and theMinistry of Information and Broadcasting, GovernmenIndia, in respect of feature films, that the importation ifor a purpose which is in the public interest and has besponsored or approved by the Government of India; an(ii) an undertaking is given by the importer or thesponsoring authority to the Assistant Commissioner ofCustoms or Deputy Commissioner of Customs at the t

of clearance of goods that the goods in respect of whicthe exemption is claimed shall be re-exported within thmonths from the date of their importation or within sucextended period, not exceeding 12 months from the daof importation, as the Assistant Commissioner ofCustoms or Deputy Commissioner of Customs may aland that, in the event of failure to re-export, as aforesato pay the duty which would have been levied but for texemption contained herein.

5 Mountaineering equipments, materials,clothings, foodstuffs and provisions

(excluding alcoholic drinks, cigarettes andtobacco), medical stores including medicinesand medical equipments

(i) The said goods have been imported by amountaineering expedition and are essentially required

be used during the expedition in India;(ii) the expedition is approved by the IndianMountaineering Foundation, New Delhi, and theexpedition importing any of the goods aforesaid produa certificate from the said Foundation, to the AssistantCommissioner of Customs or Deputy Commissioner oCustoms, at the time of importation to the effect that - the mountaineering expedition had been approved by tsaid Foundation;(b) the said Foundation has obtained clearance of theGovernment of India in respect of the said expedition,


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(c) the goods imported are for the bona fide requiremeof the expedition; and(iii) an undertaking is given by the Indian MountaineerFoundation, New Delhi, to the effect that-

(a) the goods except such of the consumable stores asmay be consumed or other articles as may be lost durinthe course of the expedition in India or mountaineering

equipments as are purchased by the IndianMountaineering Foundation, New Delhi with the priorapproval of Ministry of Finance (Department of Revenshall be re-exported within six months from the date otheir importation or within such extended period as theAssistant Commissioner of Customs or DeputyCommissioner of Customs may allow; and (b) in theevent of the failure to re-export as aforesaid, duty whicwould have been levied on such goods but for theexemption contained herein, shall be paid.

6 Tags or labels (whether made of paper, clothor plastic), or printed bags (whether made ofpolythene, polypropylene, PVC, highmolecular or high density polyethylene)

(i) The said goods have been imported for fixing onarticles for export or for the packaging of such articles(ii) the importer, by execution of a bond in such form afor such sum as may be prescribed by the AssistantCommissioner of Customs or Deputy Commissioner oCustoms, binds himself to pay on demand in respect ofthe said goods as are not proved to the satisfaction of tAssistant Commissioner of Customs or DeputyCommissioner of Customs to have been used for theaforesaid purposes, an amount equal to the duty leviabon such tags or labels or printed bags but for the

exemption contained herein;(iii) the importer satisfies the Assistant Commissioner tthe articles so imported have been exported within sixmonths of the date of importation or within such extenperiod as may be permitted by the said AssistantCommissioner.

xemption to samples, price lists, commercial samples or prototypes imported as baggage or by post. Air orCourier service and prototypes of engineering goods imported as samples for executing or securing exportrders

Notification No. 154/94-Cus., dated 13-7-1994--

Sr No1)


Conditions(3)

1 Samples The samples are exempt from import duties under andaccordance with the International Convention to facilitthe importation of Commercial Samples and Advertisimaterial drawn up at Geneva and dated the 7th day ofNovember, 1952.

2 Price lists The price lists are supplied free of charge and are exem


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from import duties under and in accordance with theConvention mentioned against S. No. 1 above.

3 Commercial samples (i) The said goods have been imported as personalbaggage by bona fide commercial travellers orbusinessmen or imported by post or by air; (ii) Theimporter produces his Import Export Code Number at ttime of importation; (iii) The said goods are clearlymarked as samples; (iv) The import of the said goodsdoes not exceed INR. 60,000 in value or 15 units innumber, within a period of twelve months; and (v) Theimporter at the time of importation - (A) declares that (a) the samples have been imported into India solely fothe purpose of being shown in India for the guidance oexporters or for securing or executing an export order;The total import value of samples does not exceed INR60,000 or 15 units in number, within the period of the twelve months; and (B) Produces an undertaking to theAssistant Commissioner of Customs or DeputyCommissioner of Customs to pay the duty leviable on said goods but for the exemption contained herein, if th

declaration under clause (A) is found to be false4 Prototypes of engineering goods imported as

samples for executing or for use in connectionwith securing export orders

(i) The importer produces a certificate from the ExportPromotion Council concerned with the particular expoor the Trade Development Authority to the effect that tsamples are required for executing or for use inconnection with securing export orders; (ii) where thevalue of a sample does not exceed Rupees ten thousanthe same shall be rendered useless as merchandise by asuitable process and where this is not possible they areexported within a period of nine months of import or sextended period as may be allowed by the Assistant

Commissioner of Customs or Deputy Commissioner oCustoms; (iii) Where the value of a sample exceedsRupees ten thousand the same shall be re-exported wita period of nine months of import or such extendedperiod as may be allowed by the Assistant Commissionof Customs or Deputy Commissioner of Customs; and(iv) The importer shall execute a bond in such form anfor such sum and with such surety as may be prescribeby the Assistant Commissioner of Customs, for thepurpose of enforcing conditions (ii) and (iii), as the casmay be.

5 Bona fide commercial samples and prototypes Samples and prototypes (i) The said goods have beenimported by post or in an aircraft, or by courier service(ii) The value of the said samples or prototypes does nexceed rupees five thousand; and (iii) The said goodshave been supplied free of charge. Explanation. - For tpurpose of condition (ii), postal charges or the air-freigshall not be taken into account for determining the vallimit of rupees five thousand

Notification No. 154/94-Cus. dated 13-7-1994 as amended by Notifications No. 100/95-Cus., dated 26-5-1995; No


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01/95-Cus., dated 26-5-1995; No. 75/97-Cus., dated 14-10-1997 and No. 86/99-Cus., dated 6-7-1999.

Re-imported goods - exported under contract approval by RBI (Reserve Bank if I ndia)

Notification No. 241-Cus; dated 4-11-1982--

Goods1)

Limitations and Conditions(2)

Extent of Exemption(3)

Goods notproduced ormanufacturedn India andon which theduty ofcustomseviable hasbeen paid atthe time oftheirmportationnto India andwhich areexported outof India forthe executionof a contractapproved bythe ReserveBank of Indian connectionwith any

commercialand industrialincludingconstructional)activities.

Provided that the proper officer of Customs is satisfiedas to the identity of the goods;that no drawback of dutywas claimed or paid on their export out of India prior totheir present importation; that the project has a specificapproval of the Reserve Bank of India ;that theownership of the goods has not changed between thetime of export and re-import.

(i) In the case of goods on which anyalterations, renovations, additions or repahave been executed subsequent to their export, so much of the duty of customs as isexcess of the duty of customs which woube leviable if the value of the goods wereequal to the cost of such alterations,renovations, additions or repairs while thegoods were abroad; (ii) in other cases, thewhole of the duty of customs leviablethereon under the First Schedule to theCustoms Tariff Act, 1975 (51 of 1975) anthe whole of the additional duty leviablethereon under section 3 of the said CustomTariff Act, 1975.

Notification No. 241-Cus; dated 4-11-1982 as amended by Notification No. 101/83-Cus., dated 5-4-1983.

xemption to goods imported for display or use at fair, exhibition, demonstration, seminar, congress andonferences or similar events.

Goods (except for Gems and jewelry, Drugs and medicines, Consumer electronic goods, Textiles and readymadearments, Clocks and watches) imported into India for exhibition and similar events can be imported free of duty a

ax. Specific provisions apply. Full details can be obtained as listed in Notification No. 3/89-Cus., dated 9-1-1989ound at the India Customs Website.

xemption to specified goods imported for display or use at any specified event such as meetings, exhibitionnd fairs or similar show or display.

Goods (except for Gems and jewelry, Drugs and medicines, Consumer electronic goods, Textiles and readymadearments, Clocks and watches) imported into India for exhibition and similar events can be imported free of duty aax. Specific provisions apply. Full details can be obtained as listed in Notification No. 157/90-Cus. dated 28-3-199ound at the India Customs Website.

xemption to specified free gifts, donations, and relief and rehabilitation material imported by charitable


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rganisations. Red Cross Society, CARE and Government of IndiaCertain goods imported by charitable organizations may be exempt for duty & tax. Specific provisions apply. Fulletails can be obtained as listed in Notification No. 148/94-Cus. dated 13-7-1994 found on the India Customs Web

ersonal Effectshe import of unaccompanied PERSONAL EFFECTS into India is prohibited via courier mode and must cleared

hrough formal clearance process.

amples

What are samples?Commercial samples are basically specimens of the goods that are imported into India to determine the characteristnd usage and assess the marketability of the product in India. Representatives of Manufacturers abroad to show if rospective customers in India also import samples.

Who can send/import?ndividuals, Companies, Associations, Research Institutes or Laboratories, can import samples. The representatives

manufacturers abroad can also import these either as a part of their personal baggage or through post or courier. Than also be sent by manufacturers/ traders abroad to above parties in India.

What can be sent?

amples of all types of goods can be imported. Samples up to a value of INR 5000/- can be imported duty free.pecific provision/ schemes are available or duty free Import which include samples:00% Export Oriented Units (EOU), Export Processing Zones (EPZ), Electrical Hardware Technology Park, Softwechnology Parks (STP) Schemes. With general prior permission samples of all types of goods manufactured by th

Units can be imported duty free. For such shipments, it must be clearly mentioned on the AWB that the consignee 00% EOU or is based at EPZ.

n addition, the Government of India sponsored events for display of Machinery in trade and Industry fairs of themachinery are also allowed Duty Free for the purpose of their exhibition/display/demonstration in India. Suchhipments are acceptable as BSO (Broker Select Option) shipments and must travel under Carnet.

or promotion of tourism, equipment and ancillary goods are allowed Duty Free import.

GiftsAll goods imported into India from abroad is subject to duty and tax and is also subject to any restrictions under thoreign Trade (Development & Regulations) Act 1992. However, gifts with a value up to INR 10000 received frombroad by persons residing in India are exempt from duty & tax and restrictions under FT (D&R) Act. This exempts allowed only for Bonafide gifts imported by air or post. For the purpose of calculation of this value of INR 10,00he airfreight or postal charges paid are not added.

Gift shipments up to INR 10K or equivalent USD are not subject to duty provided the Commercial Invoice and AirWaybill stae that the goods are gifts and suplied free of cost.

Value shipments containing Precious and Semi Precious Metal, Gold and Silver in any form is not consider a GIFTnd is not allowed. Duty and Tax may be charged if customs finds the value unreasonable.

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tandards


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Under existing law, foreign merchandise bearing any name, trademark or description must be marked with the counf origin, either on the goods, or on the containers. The bill of lading, commercial invoice and packing list required

ndian customs must show country of origin, description, quantity and value of goods. The labeling of imported goomust comply with the requirements to Rule 33 of The Standards of Weights and Measures (Packaged CommoditiesRules, 1977, appended to The Standards of Weights and Measurements Act, 1976.

ffective January 1, 2001, the Directorate General of Foreign Trade (DGFT) in the Ministry of Commerce andndustries made it mandatory for all pre-packaged goods (intended for direct retail sale) imported into India to bear

ollowing labeling declarations:name and address of the importer, ii) generic or common name of the commodity packed, iii) net quantity in termf standard unit of weights and measures, iv) month and year of packing in which the commodity is manufactured oacked or imported, and v) maximum retail sales price (MRP) at which the commodity in packaged form may be so the ultimate consumer. The MRP includes all taxes local or otherwise, freight transport charges, commission payo dealers, and all charges towards advertising, delivery, packing, forwarding and the like, as the case may be.Compliance of the above-stated requirements has to be ensured before the import consignments are cleared byCustoms for consumption in India.

mport of pre-packaged commodities such as raw materials, components, bulk import etc., that need to undergo furrocessing before they are sold to end consumers are not included under this labeling requirement.

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General Export Clearance Information

Clearance Processxporting from India requires:

Export Compliance

Knowledge of your Commodity & the Export Scheme the Shipper wants to benefit fromProper Documentation and,Pre-shipment requirements for the Country you are shipping to.

he Indian Customs are responsible for the enforcement of the various policies, regulations & restrictions designedrotect national security, Foreign policies, economic interest and Indian Heritage. Departments such as Director

General of Foreign Trade (DGFT), FEDAI (Foreign Exchange Dealers Association of India), the various Exportromotions Councils, Reserve Bank of India (RBI) regulate export licensing/ controls that may be required for

movement of various goods from India. Penalties, Fine and imprison meant may result from deliberate attempts toircumvent these policies regulations and restrictions.

urthermore,All Goods may be exported without restrictions except to the extent ITC (HS) or any other law regulatuch exports for the time being in force.

All Export contracts & invoices must be denominated in freely Convertible Currency and the export proceeds mustealized in freely convertible Currency. Export contracts and invoices can be denominated in Indian rupees againstXIM bank/ Government of India line of credit.

All Exporters should have a Valid Importer Exporter Code issued by the Director General of Foreign Trade.

xporters should register with the Export Promotion Council relating to his main line of Business & obtain theRegistration Cum Membership Certificate (RCMC). This is necessary, as this Document will be needed for the Ship


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o benefit for Export Benefits & licenses.

All Exporters should check with the Director General of Foreign Trade for any specific export requirements regardheir shipment. The Reserve Bank of India should be contacted for any questions regarding foreign remittancenvolving a shipment.

here are 2 modes of clearance for Export from India:

1. Courier (OBC) or Express Mode

2. Formal Clearance or Freight Mode

. Courier Mode Clearance:Generally, shipments that can be sent on Courier mode are Non-Commercial shipments such as documents, sampleGifts.

Documents -This includes any message, information or data recorded on paper, cards or photographs of nocommercial value.Gifts - any bonafide articles for personal use provided free of charge with a value not exceeding 25,000 Rupees.Samples - bonafide commercial samples and prototypes of goods supplied free of charge with a value not exceedRupees 50,000/-

Note: Gifts above INR 25,000 & Sample above INR 50,000/- can be exported if you have No objection Certificaterom your authorized bank or the Reserve Bank of India (RBI).

hipments involving Foreign Transaction can only be affected if the shippers bank can accept the FedEx Airway Bs the proof for Export.

Goods that are prohibited to be exported on the courier mode are as follows.

Weight of individual package greater than 32 Kgs (FedEx Limit, Customs Limit 70 Kgs)Goods which are subject to levy of any duty on their exports

Goods proposed to be exported with the claim for drawback, DEEP, DEEC, DFRC, EPCG & similar exportpromotion schemesGoods where the value of the consignment is above INR 25,000 and transaction in foreign currency is involved(For Samples the limit is INR10,000).Goods subject to licensing requirementsElectronic & Electrical ItemsGoods that cant be screen through x-ray machine.

edEx Clearance (Export)he broker generally clears electronically through the Electronic Data Interface (EDI) in 2 phases;

n the 1st phase, Exit information is submitted by the Broker to the to CMC in the prescribed Annexure, who keys tnformation into the Central computer. The type of Annexure (to be submitted to CMC) to be used is determinedased on the Customer requirement, shipment value, commodity type, licensing or other controls. The information crutinized online by the proper officers .A shipping Bill number is then allotted. The amount of time taken willepend on the type of Scheme used for Exports.

n the 2ndphase, the Goods are physically examined with regards to the Statement declared by the Exporter.

he goods are usually cleared on the same day if it enters the Custom area where demurrage fees may apply.


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xport DutiesGoods exported from India are chargeable to export duty (under section 12 of the Custom Act, 1962) at the ratespecified in the second Schedule to the CTA. Export duties have gradually generally been abolished in order to

maintain and improve the competitive position of Indian goods in the foreign markets and are practically non-existt present. Export duties may be applied to jute, lac, cashew, Agriculture product, Seeds, spices,tobacco, food prod

Vegetable, Mica, Marine and perishable items, skins, pulses, and fruits.

Document RequirementsGeneral Documentation (Formal Exports)

) Commercial Invoice:his is a document provided by the seller/exporter that describes the parties involved in the shipping transaction anhe goods being transported. It is the primary document used by Customs. The Commercial Invoice should include etailed breakdown of all items included in the shipment: including any generic or scientific name, grade and quanomposition and/or construction, the country of manufacture, the price or cost, currency used, the Harmonized Systumber for each commodity and the terms of delivery. The invoice should always be signed and dated by the expoertifying that the details provided are true and correct representations of the contents covered by the Commercialnvoice.

his is the basic document which provide all the relevant information with regards to the terms of trade.

his acts as the basic document on the basis of which the other documents are prepared. (E.g. packing list, GSP etc

) Packing List :acking List is a detailed list of contents of the shipment. Details of part numbers, where applicable must be

mentioned.

) Shipper's Letter of Instruction (SLI):A letter duly signed and stamped by the shipper in a specified format, declaring the shipment and the attachedocument details, Authorized dealer code of the Bank and the Shipper's Bank account number is needed as it instruhe broker under which scheme the shipment should be cleared.

) Sellers' Declaration Form (SDF) or Guaranteed Remittance Form (GR) or Exchange Control DeclarationECD):is the declaration to the Reserve Bank of India (RBI) which indicates the currency involved in a transaction and t

erms of payment specified.

) Annexure A:A declaration to be submitted to the Customs authorities giving all relevant details of the proprietor/ partners/directtc. duly filled, signed and stamped by the shipper. This declaration is for export of Goods without claim for drawb

) Annexure B:A declaration to be submitted to the Customs authorities giving all relevant details of the proprietor/ partners/direct

tc. duly filled, signed and stamped by the shipper. This declaration is for export of Goods with claim for drawback

) Appendix I I: This is the DEEC Declaration.

) Appendix III: This is Drawback Declaration

) Appendix IV: This is a declaration to be filed in respect of goods under the respective Sub Serial No for Drawbhipment.

0) Annexure D: This is the DEPB Declaration.


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1) Annexure C: This is the Examiner office report for an Export shipment and is to be filed by the Customs Brokt the time of Examination of goods.

2) Annexure C1: This is the Examination report for factory Sealed package/ container of Units working under 10OU scheme.

3) MODVAT Certificate: This is the certificate indicating that the shipper has not benefited from any MODVATenefits

4) ARE1 Form: (Application for Removal of Excisable Goods)he ARE1 Form is required when the shipper is exporting excisable goods. The Excise Officials must countersign

orm. This is filled to obtain a rebate from paying Excise Duty. The customer must provide a bond for the Excise vf the goods exported. After endorsement from customs, the copy of the form is handed over to the customer to beanded over to the range superintendent, who will cancel the bond or credit his Bond Limit.

5) N form: It is a declaration of the Octroi waiver (Municipal Mumbai Tax). This is filed so that BMC won't charhe Octroi as the goods are meant to be exported and is not meant for consumption in the territory of Greater Mum

6) VISA/Export Certificate: A textile Visa/Export Certificate is an endorsement in the form of a stamp on annvoice or export control license which is executed by a foreign government. It is used to control the exportation of

extiles and textile products to the United States/Europe and to prohibit the unauthorized entry of the merchandise ihis country. A Visa/Export Certificate is the most effective way to prevent illegal transshipments and quota fraud. lso ensures that both the foreign government and the United States/Europe count merchandise and charge quotas inhe same way so that overshipments, incorrect quota charges and embargoes can be avoided. If a visa;/Export has ancorrect category/Nimex Code, quantity or other incorrect or missing data, or a shipment arrives without a visa, thntry is rejected and the merchandise is not released until the importer reports the discrepancy to the foreignovernment and receives a new visa/Export License from the government. This will either be issued byEXPROCIL/SRTEPC or by AEPC.

7) Handloom Certificate : This is the certificate to the effect that the item is of handloom origin. This will be issuy the Textile committee.

8) Handicraft Certificate : In respect of "India Items" which are traditional folklore handicraft textile products ondia, a certificate to the affect will be issued by the Development Commissioner (handicrafts).

9) Drug License : Manufacture / Wholesale Drug License : This is the license to produce/ Sell Drugs ormedicines.

0) Lab Analysis Report : This is the report indicating the constituents of the Drug. It is required for the export ofrugs or medicines.

1) Manual/ Catalogue/ Brochure : This documents gives detail information with regards to the Item being shipp

xport Schemeshere are various Schemes under which you can export your shipment.

ree Shipments: This is the scheme used where the exporter claims no export benefits for the Goods exported. I.e.Commercial samples, shipments where no Foreign Remittance is involved

ou can benefit from export benefits under the following schemes

Duty Exemption Schemehe Duty Exemption Scheme consists of


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Advance License (DEEC: Duty exemption Entitlement Certificate)

What do you get exemption from?

he import of raw materials, intermediates, components, consumables, parts, accessories, mandatory spares andackaging material.

Duty Remission SchemeDuty Remission Scheme Consists of:

Duty Entitlement Pass Book Scheme (DEPB)Duty Free Replenishment Certificate (DFRC)

Duty Entitlement Pass Book Scheme (DEPB)or exporters not interesting in going through the licensing route, an optional facility is given under DEPB. Thebjective of DEPB is to neturalise the incidence of customs duty on the import content of the export product . you laim credit ( which will be a percentage of the FOB value of the exports ) under DEPB.

As an exporter, you will be required to maintain a record of all exports in a PassBook. This Passbook must benclosed with the documents, so that the necessary endorsements can be made by the customs.

n case a shipper has just applied for the DEPB, he needs to enclose an acknowledged copy of the application.

Duty Free Replenishment Certificate (DFRC)Duty Free Replenishment Certificate is used to a merchant-exporter or manufacture-exporter for the import of inpused in the manufacture of goods without payment of basic customs duty & special additional duty for productsovered under the Standard Input Output Norms (SIONs). These Certificates shall be subject to a minimum valueddition of 33 %.

he exporter shall be entitled to drawback benefits in respect of any of the duty paid materials whether imported ondigenous used in the export product.

Duty Drawbackn order to make the Indian Manufacturers internationally competitive, the Central Government has conceded that txports should be relieved of home taxes or any import duty paid on them. These benefits are afforded in the form uty drawback schemes. Here the customs authorities will scrutinize the amount of drawback and they will also mhe necessary endorsement on the shipping bill.

xport Oriented Units (EOU)A manufacturer who intends to export an entire production of goods can set up their entity under any of the follow

Export Oriented Units (EOU)Export Processing Zone (EPZ)Electronic Hardware Technology Park (EHTP)Software Technology Park (STP)

Under these schemes you can enjoy duty free imports for production slated for exports.

xport Promotion Capital Goods Scheme (EPCG)Under the EPCG Scheme, capital goods (including spares up to 20% of CIF value of capital goods) may be importewith licence, at a confessional rate on customs duty, subject to an export obligation to be fulfilled over a period ofme. o be re-imported with out payment of duty.


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ndia Export Prohibitions

xport controls imposed on India can take the form of prohibitions such as blockades, embargoes, boycotts andanctions, or can take the form of limitations/quota's which require an export license. Export controls may be produpecific, end-use, end-user or by the ultimate country of destination.

he following is a listing of commodities prohibited or restricted for export:

All form of Wild Animals including their parts & products.Dress materials/ ready made garments fabrics/ textile items with imprints of excerpts of verses of the holy Koran.pecial chemicals, organisms, materials, Equipment and technologies as specifiedxotic birds, cattle, camel , Horseseef ( Meat of Cow).

Certain Aqua products.

Human Skeletons,ulses, Onions, paddy, Seeds,lants included in CITESodder, Deoiled groundnut Cakes, rice Bran

Mica Waste, chrome Ores, Rare Earths Ores, Radioactive material, iron Ore.Crude Oil, LPG, Kerosene,lood plasma & products derived from human blood, except gamma globulin & Human Serum.

Chemical Fertilizers,Wood & Wood Products, sandalwood in certain forms, Red-sanders wood,Waste paper,lkworms, Silkworm seeds and Silkworm cocoons,

Viscose staple fiber excluding polynosic rayons.Vintage Motors cars & motorcycles , parts & components thereof manufactured prior to 1.1.1950.Arms & ammunition.

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General Export Restrictions

he following items are not acceptable for carriage to any international destinations unless otherwise indicated.Additional restrictions may apply depending on destination. Various regulatory clearances in addition to customslearance may be required for certain commodities, thereby extending the transit time.)

1. APO/FPO addresses.2. C.O.D. shipments.3. Human corpses, human organs or body parts, human and animal embryos, or cremated or disinterred human

remains.4. Explosives (Class 1.4 explosives are acceptable for carriage to Canada, Germany, France, J apan, United Arab

Emirates and United Kingdom. Note: United Arab Emirates only allows Class 1.4 explosives to be shipped hfor-pickup to the FedEx Express facility in Dubai).

5. Firearms, weaponry and their parts (acceptable between the U.S. and Puerto Rico).
http://www.fedex.com/us/international/irc/profiles/irc_in_profile.html?gtmcc=us#tophttp://www.fedex.com/us/international/irc/profiles/irc_in_profile.html?gtmcc=us#tophttp://www.fedex.com/us/international/irc/profiles/irc_in_profile.html?gtmcc=us#tophttp://www.fedex.com/us/international/irc/profiles/irc_in_profile.html?gtmcc=us#top


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6. Perishable foodstuffs and foods and beverages requiring refrigeration or other environmental control.7. Live animals including insects, except as provided in the Live Animals section in the FedEx Service Guide.

the FedEx Live Animal Desk at 1.800.405.9052).8. Plants and plant material, including cut flowers (cut flowers are acceptable from the U.S. to selected points i

Canada and from Colombia, Ecuador and the Netherlands to the U.S.).9. Lottery tickets and gambling devices where prohibited by law.

10. Money (coins, cash, currency, paper money and negotiable instruments equivalent to cash such as endorsedstocks, bonds and cash letters).

11. Pornographic and/or obscene material.

12. Shipments being processed under:a. Duty drawbacks claims unless advance arrangements are made.b. Temporary Import Bonds acceptable under the FedEx International Broker Select option, for initia

import only.c. U.S. State Department licensesd. Carnetse. U.S. Drug Enforcement Administration export permit.f. Letters of Credit. Shipments subject to Letters of Credit are generally prohibited, with the exception of

shipments subject to Letters of Credit calling for a courier receipt, as defined by Article 25 of UC600, shipped using the FedEx Expanded Service International Air Waybill.

g. Certificate of Registration shipments (CF4455).

You may be able to ship these items via FedEx International Controlled Export, FedEx International PremiuFedEx International Express Freight (IXF) or FedEx International Airpot-to-Airport (ATA). For informationFedEx International Controlled Export, call International Customer Service at 1.800.GoFedEx 1.800.463.33(say international services). For information on the other services listed call FedEx Express FreightCustomer Service at 1.800.332.0807.

13. Hazardous waste, including, but not limited to, used hypodermic needles or syringes or other medial waste.14. Shipments that may cause damage to, or delay of, equipment, personnel or other shipments.15. Shipments that require us to obtain any special licenses or permit for transportation, importation or exportatio16. Shipments or commodities whose carriage, importation or exportation is prohibited by any law, statute or

regulation.17. Shipments with a declared value for customs in excess of that permitted for a specific destination. (See the

Declared Value for Carriage and Limits of Liability section in the FedEx Service Guide).18. Dangerous goods except as permitted under the Dangerous Goods section of these terms and conditions.19. Processed or unprocessed dead animals, including insects and pets. Taxidermy-finished hunting trophies or

completely processed (dried) specimens of whole animals or parts of animals are acceptable for shipment intthe U.S.

20. Packages that are wet, leaking or emit an odor of any kind.21. Wildlife products that require U.S. Fish and Wildlife Service export clearance by FedEx prior to exportation

from the U.S.22. In-bond shipments destined to or being withdrawn from a Foreign Trade Zone or bonded warehouse, unless

FedEx International Broker Select option is selected for U.S. import shipments, or the FedEx International

Controlled Export service option is selected for U.S. export shipments.

Not withstanding any other provision of the FedEx Service Guide, we are not liable for delay of, loss of damage to hipment of any prohibited item. The shipper agrees to indemnity FedEx for any and all costs, fees and expensesedEx incurs as a result of the shippers violation of any local, state or federal laws or regulations or fromendering any prohibited item for shipment.

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ndia Restrictions

xport controls imposed on India can take the form of prohibitions such as blockades, embargoes, boycotts andanctions, or can take the form of limitations/quota's which require an export license. Export controls may be produpecific, end-use, end-user or by the ultimate country of destination.

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Regulatory Contact Information

Branch or Agency Name Areas of Responsibility

Branch or Agency Name Areas of

India Trade Profile

Documents

Transcript of India Trade Profile