P. 1
Export Procedure -Kohima

Export Procedure -Kohima

|Views: 0|Likes:
Published by SachinSongaonkar

More info:

Published by: SachinSongaonkar on May 22, 2013
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less





Seminar on “Export Procedure and Documentation” Seminar on


The Seminar was conducted by the Eximius Centre, Exim Bank in association with the Government of Nagaland and United Bank of India (UBI) at Kohima on November 08, 2006. The objective of the programme was to develop the knowledge and skill of existing and potential entrepreneurs in proper compliance with the procedure and documentation for exports, and thereby to enhance the prospect of their export efforts. 60 participants representing small, medium and large enterprises from both private and public sectors attended the Seminar. FACULTY 1. Mr. Z. Khuma, Jt. Director General of Foreign Trade (DGFT), Kolkata; 2. Mr. K.P. John Kutty, Deputy General Manager, Reserve Bank of India (RBI); 3. Mr. P.P. Singh, Senior Manager, UBI; 4. Mr. P.P. Taneja, Asst. Commissioner of Customs, Dimapur; 5. Mr. N.C. Das, Manager, Export Credit Guarantee Corporation of India Ltd; and 6. Mr. Sunil Kumar, OSD, CAPEXIL. TOPICS COVERED 1. 2. 3. 4. 5. 6. Foreign Trade Policy; Foreign Exchange Regulations; Introduction to exports procedures; Customs formalities; Export Factoring & Forfaiting; Export Credit Risk Insurance.

Eximius Centre, Export-Import Bank of India


of capital goods and plant & machinery required for export production. dairy. poultry. SEZ and areas having potential for export of agri/horticultural products. minor forest produce. on concessional duty. DGFT website (www. Foreign Trade Policy India’s Foreign Trade Policy (FTP) originally introduced to regulate and control trade.and to act as an effective instrument of economic growth. through internet. regulates the country’s export-import trade. In its role as facilitator of foreign trade. The process of liberalisation of FTP started in April 1992. in order to preserve the country’s foreign exchange. Duty Entitled Pass Book. import. and formulates the related policies and procedures. The objective of FTP is to accelerate India’s global merchandise trade.Seminar on “Export Procedure and Documentation” GIST OF MAJOR TOPICS 1. flowers. have been simplified to make them more user-friendly. Government of India. A special Agriculture & Village Industries Scheme (Vishesh Krishi Gram Udyog Yojana) has been introduced under the FTP to facilitate export of fruits. the office of DGFT has simplified a number of procedures such as the procedure for registration of IEC code. and Standard Input Output Norms for availing incentives. ***** Eximius Centre. DGFT. value added products and Gram Udyog products. FTP provides for various incentive schemes for exports: dutyfree import of raw materials required for export production. and special schemes for EOU. functioning under the Ministry of Commerce and Industries.to double our percentage share in 5 years.in) incorporates regular updates on export incentives and other aspects of FTP. As an export promotion tool. and become an ongoing process towards removal of restrictions and achieving simplification. particularly imports.dgft. Schemes such as Duty Drawback. vegetables.gov. Export-Import Bank of India 2 . has been introduced for activities such as viewing IEC status and submission of documents (electronic filing). Online access. is now designed to serve as a trade promotion mechanism.

write-off of unrealised export bills and permit Exchange Earners’ Foreign Currency Account (EEFC). FERA has been replaced by the Foreign Exchange Management Act (FEMA) with the objective of facilitating external trade and payments. reduction in value. ***** 3. Reflecting the liberalised environment and the comfortable position of India’s foreign exchange reserves. Based on the FTP. and for orderly development and maintenance of foreign exchange market in India. access to market Eximius Centre. Export-Import Bank of India 3 . Foreign Exchange Regulations Reserve Bank of India (RBI) is vested inter alia with the task of monitoring India’s foreign exchange inflow and outflow.in) incorporates these under the master circulars link in the website. RBI’s role has evolved into that of a facilitator. RBI’s Exchange Control Department has been renamed as Foreign Exchange Department. With liberalisation of the FTP. Prior to the economic liberalisation process which commenced in the 1990’s. change of buyer.org.rbi. in which prescribed percentage of export earnings can be credited. foreign exchange was a scarce commodity and its release was governed by the Foreign Exchange Regulation Act (FERA). Other key factors include knowledge of trading systems. Commercial banks through notified Authorised Dealers (ADs) and financial institutions have been given greater flexibility in meeting the foreign exchange requirements of exporters. and need to seek RBI’s prior permission in very select cases. Importer Exporter Code (IEC) from DGFT office and opening a bank account. Export Procedure & Documentation Setting up an export business requires basic documentation such as a Permanent Account Number (PAN card). ADs are authorised to receive advance payment for exports. ADs have been given increased autonomy to extend facilities to exporters. FTP and Industrial Policy. RBI website (www. ADs now handle the export transactions in conformity with the FTP announced by DGFT and the directions issued by RBI from time to time.Seminar on “Export Procedure and Documentation” 2.

loading. while the Ministry of Finance. ex-mill. Price covers all costs up to and including delivery of goods aboard an overseas vessel. CIF (Cost. ocean transportation. The Ministry of Commerce. Price envisages seller's responsibility for cost of loading goods at the named shipping point. all other costs viz. Price of goods includes insurance. and insurance are left to the buyer. FAS (Free alongside ship) at a named domestic port of export. Price of goods includes costs as above except insurance (used for ocean shipments only). Insurance. exfactory. Export-Import Bank of India 4 . Receipts of proceeds of exports by way of foreign exchange and payment for imports to foreign suppliers by way of foreign exchange are to be routed through normal banking channels only. controls the Foreign Trade Policy (FTP). Freight) to a named overseas port of import.g. FCA (Free Carrier) to a named place. All other charges are for the account of the buyer. FOB (Free on Board) at a named port of export.. Price includes charges for delivery of the goods alongside a vessel at the port. The seller handles the costs of unloading and wharfage. Price quoted applies only at the point of origin. Some Common Terms used in International Trade • EXW (Ex Works) at a named point of origin (e. ensuring product quality and compliance with export procedures & documentation. through the Reserve Bank of India (RBI) and the Indian Customs. CFR (Cost and Freight) to a named overseas port of import. through the Director General of Foreign Trade (DGFT). all transportation and miscellaneous charges upto the point of debarkation from the vessel (used for ocean shipments only). • • • • • Eximius Centre. ex-warehouse).Seminar on “Export Procedure and Documentation” information (for which internet is a good source). controls the physical movement of goods and services and the transactions of foreign exchange (both inflow & outflow) from the country.

Payment Terms: The common payment terms in export are: Advance payment (Payment by Buyer before shipment of goods). the carrier's liability is frequently limited by international agreements. result in exporting firms not getting paid. Hence. Much of the documentation is routine for the freight forwarders or customs brokers acting on the firm's behalf. by cargo insurance. Cargo insurance may be made by either the buyer or the seller.Seminar on “Export Procedure and Documentation” • CPT (carriage paid to) and CIP (carriage and insurance paid) to a named place of destination. Used in place of CIF and CFR respectively. (used for shipment by modes other than water). proper documentation mitigates the risk in international trade. Documentation must be precise. For international shipments. Collection documents are subject to precise time limits and may not be honoured by a bank. • • Insurance: Export shipments are usually insured against loss. Documents against payment (Delivery of shipping documents to Buyer against payment). Letter of Credit (an arrangement whereby a bank {the Issuing Bank} acting on the instructions of a customer {the buyer} is to make a payment to the beneficiary {the seller} or is to accept bills of exchange (drafts) drawn by the Beneficiary {the seller}. Documentation Risks are inherent in both domestic trade and international trade. Documents against acceptance (Delivery of shipping documents to Buyer against acceptance by Buyer/its bankers to effect payment on the agreed date). It is. but the degree of risk is higher in international trade. an undertaking or a guarantee by a bank of payment to the beneficiary should certain conditions be met). depending on the terms of sale. if out of date. Export-Import Bank of India 5 . or even result in the seizure of the exporter's goods by local or foreign government customs. Slight discrepancies or omissions may prevent merchandise from being exported. It is Eximius Centre. but the exporter is ultimately responsible for the accuracy of the documentation. damage and delay in transit. in short.

The entire documentation in export trade can be basically divided into two categories: Export Documents Pre-shipment Documents Post-shipment Documents Pre-shipment documents are those that an exporter has to generate. The pre-shipment documents are generally prepared when the product is ready for export and prior to shipment. It is very important to clearly understand the documents involved in the transaction to avoid the risk factors and adhere to the legal obligations.Seminar on “Export Procedure and Documentation” said that “International Trade is a sale of documents”. authenticate and submit to the concerned authorities and departments to get the necessary clearances. The standard pre-shipment documents include: • • • • • • • • • • • Customs Invoice Packing List G R Form (original and duplicate) ARE-1 Form (original and duplicate) Copy Of Export order Letter Of Credit Shipping Bill (entire set) Export Licence(for notified items) Certificate Of Origin Certificate Of Inspection Any Other Documents (as required in L/C or by Customs) The post-shipment documents comprise the certified copies of some of the main pre-shipment documents and certain additional documents to be generated and compiled by the exporter so that the proof of shipments can be properly presented to the negotiating bank for collecting the Eximius Centre. so that the cargo can be shipped out with valid documents. Export-Import Bank of India 6 . prior to the actual shipment of the cargo.

. some of which are: a) Collection of customs duties on imports and exports as per basic Customs laws (Customs Act. and e) International passenger processing. baggage. b) Enforcement of the various provisions of the Customs Act governing imports and exports of cargo. d) Prevention of smuggling including introduction of narcotics drug trafficking. Export-Import Bank of India 7 . The standard pre-shipment documents include • • • • • • • • • • • Custom attested invoice Custom attested packing list Copy of Export Order / Copy Of LC Commercial Invoice Consular Invoice (If Specified) Bill of Lading / Air Way Bill Certificate of Origin Certificate of Inspection (If Specified) Bill of Exchange (Draft) G R Form (Duplicate) Any other document specified in Export Order / LC ****** 4. 1962 and Customs Tariff Act. c) Discharge of various agency functions and enforcing various prohibitions and restrictions on imports and exports under the Customs Act and other allied enactments. 1975). postal articles and arrival & departure of vessels. air crafts etc. Customs Formalities Central Board of Excise and Customs (CBEC) is assigned a number of tasks. CBEC Mission is to achieve excellence in the formulation and implementation of Customs and Excise initiatives aimed at: Eximius Centre.Seminar on “Export Procedure and Documentation” payments through L/C or for presentation to the foreign buyer for collection of payment through the nominated bank.

facilitating trade and industry by streamlining and simplifying Customs and Excise processes and helping Indian business to enhance its competitiveness. In addition. Exporters are exempted from the payment of excise duty. tariff and trade policies with a practical and pragmatic approach. creating a climate for voluntary compliance by providing guidance and building mutual trust.e. to be prepared in prescribed format. If the export is done by paying duty. Export-Import Bank of India 8 . In case of EPCG. export the cargo and draw back the duty paid earlier. ARE-1 is to be filled in and submitted to the Excise department at least 24 hrs in advance along with request for inspection. Customs Packing List: is also a regulatory document for export. are briefly described below: Customs Invoice: is a regulatory document for export. Under the EDI scheme. equitable and efficient manner. GR form in the prescribed format is a mandatory document. commercial frauds and social menace in an effective manner. combating revenue evasion. procedures and terms Some of the important documents. Alternatively.Seminar on “Export Procedure and Documentation” • • • • • realising the revenues in a fair. sealing and certification by the department. administering the Government's economic. and the exemption can be availed by two methods. In either case. the exporter can export the cargo under Bond i. the ARE-1 form formalities have to be completed by the exporter as a pre-shipment Document. G R Forms: Wherever manual-shipping bill is in force. without payment of Excise duty. it is used for completing the export Eximius Centre. Both these documents perform the function of GR Form. These forms are available from RBI or Authorised Dealers of Commercial Banks. ARE-1 Form: It is a very important regulatory document prescribed by CBEC for the Exemption/ Draw back of excise duty. the foreign exchange copy of the shipping bill performs the role of GR forms. then the specified copies of ARE-1 can be used for Draw Back. a self declaration form has to be submitted by the exporter to the bank. to be prepared in prescribed format. Exporter can pay the excise duty.

in ****** Eximius Centre. and for Custodian: The goods imported into India and exported out of India are allowed through designated Sea Ports/ Land Custom Stations/ Airports. discharging the Bond on such completion. The goods so imported/ exported are initially deposited in the custody of Custodian such as: • Port authorities for goods imported through sea.gov. Licence) • Duty Free Replenishment Scheme • DEPB Scheme • Duty Free Import Authorisation Export promotion capital goods scheme(EPCG) EOU/STP/EHTP/Biotechnology parks Special Economic Zones (separate act & rules framed) Free Trade And Warehousing Zones Deemed Exports Special schemes under export promotion • Vishesh Krishi and Gram Udyog Yojana • Focus market schemes (export to specified countries) • Focus product schemes (export of specified commodities) Details on Customs formalities and circulars are available on the website www.Seminar on “Export Procedure and Documentation” obligation given under Bond to the Government. Export-Import Bank of India 9 . • Custodians for goods imported by airAirport Authority of India Air India or STC etc • For places other than points of landingInland Container Depot (ICD) Container Freight Station (CFS) Export Promotion Schemes Under the FTP. the Promotion Schemes: following are some of the Export Duty Exemption/Remission Schemes:• Advance Authorisation Scheme (DEEC/Adv.cbec.

commenced business in September 2001. Export-Import Bank of India 10 . collection and credit protection. a Joint Venture.gtfindia. Factoring is a continuous arrangement between a factoring concern and the seller of goods and services (on credit) whereby the factor purchases the accounts receivable for immediate cash and also provides other services such as sales ledger maintenance. Reverse Factoring 3. Malta and Bank of Maharashtra) and IFC (World Bank). Export Factoring and Forfaiting Global Trade Finance Private Limited (GTF). Domestic Factoring 2.com ***** Eximius Centre. Germany (since replaced by FIM Bank. GTF's objective is to promote market driven exportfinancing solutions for small and medium sized Indian exporters operating in an increasingly competitive world trade environment. GTF offers various products such as: DOMESTIC 1.Seminar on “Export Procedure and Documentation” 5. Import Factoring GTF has launched a new initiative to enable online sanction of Factoring facilities for registered SSI export oriented units. GTF offers. structured foreign trade financing products such as forfaiting and factoring. promoted by Exim with WestLB. Details can be obtained from the website www. for the first time in India. Forfaiting IMPORTS 1. Export Factoring with credit protection with insurance cover with recourse 2. Channel Financing EXPORTS 1.

country.Seminar on “Export Procedure and Documentation” 6. 4. Export Credit Guarantee Corporation of India Ltd (ECGC) offers policies to protect exporters from non-payment risks of buyer/country and guarantees to banks against non-payment by the borrower. Export Credit Insurance Risks such as non-payment. 6. 3. Export-Import Bank of India 11 . 8. 2. ECGC offers different policies tailored to the specific needs of the exporter against various risks which include: 1. Export credit insurance assesses the buyer and the country risks. enabling it to devise various insurance schemes.ecgc. 5. 7. Standard Policy Export Turnover Policy Specific Shipments Policy Exports (specific buyer) Policy Buyer Exposure Policy Consignment Exports Policy Software Projects/ IT-enabled Services Policy Small Exporters Policy ECGC policies are available on its website Details of www.in ***** Eximius Centre. geographical. loss in transit and war are inherent in foreign trade.

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->