1. Introduction about export management.

Independent private firm that acts like an export department for several noncompeting manufacturers and producers .Export management companies can be quite varied; they can be either local or foreign-owned, and operate on either a commission or a fee basis. A company may solicit orders from foreign buyers on behalf of its clients or take possession and title of their goods for direct export. The company also has the ability to appoint sales representatives in importing countries, promote goods and services of its clients, arrange for transportation, provide warranties and after-salesservice, and extend importer credit. also called export trading company.
II.

Export , Import Procedure

Import Procedures Procedures have to be followed by µperson-in-charge of conveyance¶ as well as the importer. WHO IS 'PERSON IN CHARGE' - As per section 2(31), 'person in charge' means (a) In case of vessel its master (b) In case of aircraft - its commander or pilot-in-charge (c) In case of train - its conductor or guard and (d) In case of vehicle or other conveyance - its driver or other person in charge. The significance of this definition is He is responsible for submitting Import Manifest and Export Manifest He is responsible to ensure that the conveyance comes through approved route and lands at approved place only. He has to ensure that goods are unloaded after written order, at proper place. Loading also has to be only after permission. He has to ensure that conveyance does not leave without written order of Customs authorities. He can be penalised for (a) Giving false declaration and statement (b) shortages or non-accounting of goods in conveyance Procedure to be followed by the Carrier - The 'person in charge of conveyance' (carrier of goods) has to follow prescribed procedure. Arrival at customs port/airport only - Section 29 provides that person-in-charge of a vessel or an aircraft entering India shall call or land at customs port or customs airportonly. It can land at other place only if compelled by accident, stress of weather or other unavoidable cause. In such case, he should report to nearest police station or Customs Officer. While arriving by land route, the vehicle should come by approved route to µland customs station¶ only.

Import Manifest / Report- Person-in-charge of vessel, aircraft or vehicle has to submit Import Manifest / Report. [also termed as IGM - Import General Manifest]. (In case of a vessel or aircraft, it is called import manifest, while in case of vehicle, it is called import report.) The import manifest in case of vessel or aircraft is required to be submittedprior to arrival of a vessel or aircraft. Import report (in case of vehicle) has to be submitted within 12 hours of arrival at the customs station. If the report / manifest could not be submitted within prescribed time, person-in-charge or any person specified as responsible by a notification is liable to penalty upto Rs 50,000. Such penalty will not be imposed if the excise officer is satisfied that there was sufficient cause for the delay. [section 30(1)]. IGM can be submitted electronically through floppy where EDI facility is available. IMPORT MANIFEST IS REQUIRED TO BE SUBMITTED BEFORE ARRIVAL OF AIRCRAFT OR VESSEL - Section 30(1) of Customs Act provides that Import Manifest should be filed before arrival of ship or aircraft. Normally, the Agents submit the Import Manifest before arrival, so that maximum possible formalities are completed before vessel or aircraft arrives. This also enables importers to file µBill of Entry¶ in advance. Grant of Entry Inwards by Customs Officer - Unloading of cargo can start only after Customs Officer grant µEntry Inwards¶. Such entry inwards can be granted only when berthing accommodation is granted to a vessel. If there is heavy congestion at port, shipping berth may not be available and in such case, µEntry Inwards¶ cannot be granted. This date is highly relevant for determining rate of customs duty applicable. Carrier responsible for shortages during unloading - If the goods are short landed, the carrier is liable to pay penalty upto twice the amount of duty payable on such short landed goods. It has been held that tally sheet prepared by Port Trust authorities on unloading of goods is a statutory document and should be accepted in preference to steamer survey - Scindia Steam Navigation v. CC - 1988 (33) ELT (CEGAT) followed in re India Steamship Co. Ltd. - 1992 (57) ELT 510 (GOI). Procedure by Importer - The importer importing the goods has to follow prescribed procedures for import by ship/air/road. (There is separate procedure for goods imported as a baggage or by post.) Bill of Entry - This is a very vital and important document which every importer has to submit under section 46. The Bill of Entry should be in prescribed form. The standard size of Bill of Entry is 16" × 13". However, for computerisation purposes, 15" × 12" size is permitted. (Mumbai Customs Public Notice No. 142/93 dated 3-11-93). Bill of Entry should be submitted in quadruplicate ± original and duplicate for customs, triplicate for the importer and fourth copy is meant for bank for making remittances. Under EDI system, Bill of Entry is actually printed on computer in triplicate only after µout of charge¶ order is given. Duplicate copy is given to importer. Types of Bill of Entry - Bills of Entry should be of one of three types. Out of these, two types are for clearance from customs while third is for clearance from warehouse. BILL OF ENTRY FOR HOME CONSUMPTION - This form, called µBill of Entry for Home Consumption¶, is used when the imported goods are to be cleared on payment of full duty. Home consumption means use within India. It is white coloured and hence often called µwhite bill of entry¶.

A signed paper copy of declaration for non-repudiability should be submitted. RATE OF DUTY FOR CLEARANCE FROM WAREHOUSE . . declaration by importer is not required as the goods are already assessed.Normally. ± Chapter 3 Para 6 and 7 of CBE&C¶s Customs Manual. Original documents are to be submitted only at the stage of examination. customs duty as assessed on yellow bill of entry and as paid on green bill of entry will not be same. Procedure for the same has been prescribed vide Bill of Entry (Electronic Declaration) Regulations. 1. Mention of BIN on Bill of Entry ± A BIN (Business Identification Number) is allotted to each importer and exporter w. It is also called µInto Bond Bill of Entry¶ as bond is executed for transfer of goods in warehouse without payment of duty.e. the Bill of Entry has to be filed electronically. 2001. It is a 15 digit code based on PAN of Income Tax (PAN is a 10 digit code).If the imported goods are not required immediately. Bill of Entry number is generated by system which is endorsed on printed check list.Documents required by customs authorities are required to be submitted to enable them to (a) check the goods (b) decide value and classification of goods and (c) to ensure that the import is legally permitted. if preferential rate is claimed. However. where applicable (xiii) Split up of value of spares. Documents to be submitted by Importer .The third type is for Ex-Bond clearance. This Bill of Entry is printed on yellow paper and often called µYellow Bill of Entry¶. if rate has changed after goods are cleared from customs port.It may be noted that rate of duty applicable is as prevalent on date of removal from warehouse. The goods are classified and value is assessed at the time of clearance from customs port. formal submission of Bill of Entry is not required. This will enable him to defer payment of customs duty till goods are actually required by him. (x) Technical literature. while it is done manually in small ports. value and classification is not required to be determined in this bill of entry. 1995.f.e. Thoka Number (Serial Number) is given while noting the Bill of Entry. Bill of Entry is filed by CHA on behalf of the importer. Thus. (xi) Test report in case of chemicals (xii) Advance License / DEPB in original. Thus. Electronic submission under EDI system ± Where EDI system is implemented. BILL OF ENTRY FOR EX-BOND CLEARANCE . as it is generated in computer system. Importer should submit declaration in electronic format to µService Centre¶. Filing of Bill of Entry .2001. i. importer may like to store the goods in a warehouse without payment of duty under a bond and then clear from warehouse when required on payment of duty.BILL OF ENTRY FOR WAREHOUSING . The Noting is now done electronically in large ports. In that case. Customs work at some ports has been computerised. components and machinery (xiv) No commission declaration. The columns in this bill of entry are similar to other bills of entry.4. This is used for clearance from the warehouse on payment of duty and is printed on green paper. through Customs EDI system through computerisation of work. [Earlier an EC (Import Export code) number issued by DGFT was required to be mentioned on Bill of Entry]. ± A declaration in prescribed form about correctness of information should be submitted. The documents that are essentially required are : (i) Invoice (ii) Packing List (iii) Bill of Lading / Delivery Order (iv) GATT declaration form duly filled in (v) Importers / CHAs declaration duly signed (vi) Import Licence or attested photocopy when clearance is under licence (vii) Letter of Credit / Bank Draft wherever necessary (vii) Insurance memo or insurance policy (viii) Industrial License if required (ix) Certificate of country of origin.

If such order is issued. noting is done by the system itself which also generates bill of entry number. the Bill of Entry is presented to appraising staff at docks / air cargo complexes. Proviso to Section 46(3) of Customs Act allows importer to present bill of entry upto 30 days before expected date of arrival of vessel. Bill of Entry is accepted only after proper scrutiny vis-avis import manifest and various declarations given in bill of entry and attached documents like invoice. the authorities can refuse to accept the Bill of Entry. In case of EDI system. Otherwise. Date stamp of receipt is put on the µBill of Entry¶ and then it is sent to appraising department either manually or electronically There are various Appraising groups for different Chapter headings. APPRAISING THE GOODS .After the goods are unloaded. Date of presentation of bill of entry is highly relevant and the rate of duty as applicable on this date will be considered for calculating the duty payable. µassessment¶ includes µNil¶ assessment.1997. . Each group is under an Assistant/Deputy Commissioner.Appraiser has to (a) correctly classify the goods (b) decide the Value for purpose of Customs duty (c) find out rate of duty applicable as per any exemption notification and (d) verify that goods are not imported in violation of any law. If such documents are not attached. Noting of Bill of Entry . CC . duty will be payable at the rate applicable on the date on which µEntry Inward¶ is granted to vessel and not the date of presentation of Bill of Entry.Assessment of Duty and Clearance The documents submitted by importer are checked and assessed by Customs authorities and then goods are cleared. New Delhi circular No 64/96 dated 10. reassessment and any order of assessment in which the duty assessed is Nil. where the goods are examined in presence of importer¶s representative. It is noted if the description tallies.confirmed in CC. In such case. bill of lading etc. Group consists of µExaminers¶ and µAppraisers¶. but rate of exchange will be as prevalent on date of submission of bill of entry. which is very high. . If he is of the opinion that goods have to be examined for appraisal. Assessment of Customs duty .Simla Agencies v.1993 (63) ELT 248 (CEGAT). This date is relevant for determining rate of customs duty. usually on the reverse of Bill of Entry. it is returned for clarifications. ± Chapter 3 Para 11 and 12 of CBE&C¶s Customs Manual. Hence.Bill of Entry submitted by importer or Customs House Agent is cross-checked with µImport Manifest¶ submitted by person in charge of vessel / carrier. importer wants to complete as many formalities as possible before ship arrives. Thus.12. Section 2(2) defines µassessment¶ as follows ± µAssessment¶ includes provisional assessment. Prior Entry of Bill of Entry . If these are not so removed. He can call for any further documents that may be required for assessment. Thoka number (serial number) is given in the import section.1996 and CBE&C circular No 22/97-Cus dated 4.Section 17 provides that assessment of goods will be made after Bill of Entry is filed. demurrage is charged by port trust/airport authorities. 2001. µNoting¶ really means taking on record by customs officer. and hence submission of such incomplete Bill of Entry cannot be taken as date of presentation of Bill of Entry . Assessment is finalised after getting the report of examination. these have to be cleared within stipulated time usually three working days. he will issue an examination order.7.

the assessing officer has to give reasons for doubting the value declared by importer. 16/2003-Cus dated 17-3-2003. 2001. First and second system of assessment . This method is followed only if assessment is not possible on basis of documents. value of similar goods etc. the report of examination is given in the computer itself. The goods are then assessed to duty by appraiser. normally.. 10/98-Cus dated 11-2-1998..Assessing Officer should not arbitrarily reject the declared value and increase the assessable value. Section 17(2) provides for assessment after examination of goods and section 17(4) provides for assessment on basis of documents. The query is printed at service centre and importer replies through service centre. if he cannot give all required details regarding description / value of goods. if the value is more than Rs one lakh. All calculations are done by the system itself. details and documents.Chapter 3 Para 23 of CBE&C¶s Customs Manual. Final Bill of Entry is printed only after µOut of Charge¶ order is given by customs officer. After the approval.The importer himself may also request 'first check procedure'. (in cases covered under µfast track clearance for imports¶. If the assessing officer has doubts about the truth and accuracy of 'value' as declared. If the importer requests. After assessment. Processing is done on the screen itself.2. duty payable is typed by a ³pin-point typewriter´ so that it cannot be tampered with. He has to give reason for seeking first appraisement. If samples are required. ³First appraisement system´ or 'first check procedure' is followed if the appraiser is not able to make assessment on the basis of documents submitted and deems that inspection is necessary. they are taken out.The assessment has to be approved by Assistant Commissioner. delivery of goods can be taken from custodian. ± Chapter 3 Para 18 to 22 of CBE&C¶s Customs Manual. As per CBE&C circular No. APPROVAL OF ASSESSMENT . 2001. In case of EDI system. necessary duty is paid. as per WTO agreement. if goods were already examined. documents are inspected only after assessment. he can ask importer to submit further information.e. It is then presented to import shed for examination. appraiser is also authorised to approve valuation). copy of Bill of Entry is printed at service centre. EDI ASSESSMENT ± In the EDI system. He should follow due process of law and issue appealable order.There are two systems of assessment.98. If assessing officer needs clarification. 19. [This amendment has been made w. followed by inspection and testing of goods.As per rule 10 of Customs Valuation Rules. If the value declared by importer is rejected. If the doubt persists. or it can be paid in cash/DD through TR-6 challan in designated banks. The duty can be debited to such current account. .After assessment of duty.f. The shed appraiser / Dock examiner examines the goods as per examination order and records his findings. After shed appraiser gives µout of charge¶ order. . PAYMENT OF CUSTOMS DUTY . it has been held that burden of proof of under valuation is on department]. . However. the assessing officer can reject the value declared by importer. preferably by rubber stamp. Goods are examined first and then these are assessed.g. the cargo declaration is transferred to assessing officer in the groups electronically. he can raise a query. If goods were not examined before assessment. He has to make request for first check examination at the time of filing of Bill of Entry or at data entry stage in case of EDI. ± MF(DR) circular No. Facility of tele-enquiry about status of documents is provided in major customs stations. delivery of goods can be taken from custodians (port trust) after paying their dues. as provided in Customs Valuation Rules. [rule 10A(1) of Customs Valuation Rules]. value of identical goods. Assessing Officer should sign in full in Bill of Entry followed by his name. . The examination order is recorded on Bill of Entry and then returned to importer / CHA. After payment of duty. these have to be submitted for examination in import shed to the examining staff. [rule 10A(2)].VALUATION OF GOODS . the importer has to file declaration about full 'value' of goods. Under EDI. Regular importers and Custom House Agents keep current account with Customs department. the assessing officer can value imported goods on other basis e.

in his budget speech on 28-2-2003. EXAMINATION OF GOODS . Physical inspection of imported goods will be done by risk-assessment and management techniques on a computer based system and not on the orders of customs examining staff. Sahar (Mumbai). if it is found subsequent to examination or testing or otherwise. Hence.Examiners carry out physical examination and quantitative checking like weighing. a Accelerated Clearance of Import and Export Scheme (ACS) has been announced vide MF(DR) circular No. had announced a µself assessment scheme¶ for importers and exporters. Central and State Government PSUs. As per the scheme. which is normally followed.. In case of imports. as prevalent in developed countries. . Subsequently. Such examination is not mandatory.* If complete documents are not submitted * Goods are to be tested for correct classification * Goods are re-imported * Goods are damaged or deteriorated and abatement is claimed * Goods are abandoned and remission of duty is applied for * When goods are provisionally assessed * When importer himself requests for examination of goods before payment of duty. . Computer System will calculate the duty based on his declaration. New Delhi and Chennai Sea Customs. Central and State Government PSUs and other importers who have been importing for at least two years and have filed at least 25 Bills of Entry in preceding year. . Section 17(4) of Customs Act specifically provides that if initially assessment is done on basis of documents. First appraisement is generally carried out in following cases . Accelerated Clearance of Imports and Exports Scheme (ACS) ± Finance Minister. measuring etc. the scheme will be open to all status holders under EXIM policy. Importer/exporter intending to avail this facility has to make application to Commissioner. the scheme is not same as µself removal¶ under Central Excise.In ³Second Appraisement System´ or 'second check procedure'. assessment is done on basis of documents and then goods are examined. that any statement made on Bill of Entry or any information supplied is not true in respect of matter relevant to assessment of duty. reassessment can be done after examination or testing of goods or otherwise. EOU/STP/EHTP units whose goods have been sealed in presence of customs/excise officers. importer will himself determine classification of goods including claim for exemption benefits.Certain sensitive items have been excluded from the provisions. the scheme is introduced on trial basis at Air Customs. the scheme will be open to all status holders under EXIM policy. Presently. ICD.. It is done on selective basis on the basis of µrisk assessment¶ or specific intelligence report. without making any change in statutory provisions. Selected packages are opened and examined on sample basis in µCustoms Examination Yard¶. 30/2003-Cus dated 4-4-2003. The clearances will be subject to post clearance audit. Audit of import documents will not be by existing system of concurrent audit but will be done by post-clearance audit.In case of exports. The scheme is announced through administrative instructions. Examination report is prepared by the examiner. manufacturer-exporters who have been exporting for at least two years and have filed at least 25 Shipping Bills in preceding year and bulk exporters.

Provisional Assessment .Section 18 of Customs Act. The Bill of Entry should be presented to comptist for calculation and pinpointing of the duty.Documents in respect of Duty Entitlement Pass Book (DEPB). [Section 47(2) of Customs Act. but Customs Officer still deems it necessary to make further enquiry. 1962 provide that provisional assessment can be done in following cases (a) when Customs Officer is satisfied that importer or exporter is unable to produce document or furnish information required for assessment (b) it is deemed necessary to carry out chemical or other tests of goods (c) when importer/exporter has produced all documents. Such interest can be between 10% to 36% as may be notified by Central Government. duty payment is not required. Duty can be paid either in cash or through P. . Goods can be cleared from customs area only on receipt of such order. animals. account. Payment of duty . If the imported goods were warehoused after provisional assessment. he can pay duty by cash using TR-6 challan. He can pay customs duty by debiting the amount in P. it will be taken in bond section. After final assessment. The bond is with security or surety. it is verified that import is not prohibited and after customs duty is paid. if duty finally assessed is higher [section 18(2)(a)].even before 30 days. difference is paid by importer or refunded to him as the case may be. similar to PLA in central excise. 1-3-2000. CHA or the importer can take it for payment of customs duty. Large importers and CHA have P. within five days excluding holidays) after the µBill of Entry¶ is returned to the importer for payment of duty.f.D. 13-5-2002.f.Interest rate is 15% w. assessment is done on provisional basis. Goods can be cleared after payment of duty provisionally assessed and after providing the security.After goods are examined. goods must be cleared within 30 days after unloading.As per section 48 of Customs Act. The duty should be paid within five working days (i. as per notification No. 34/2000-Cus(NT)]. The bond is called as 'P D Bond' (Provisional Duty Bond). accounts with customs.]. Customs Officer will issue µOut of Customs Charge¶ order under section 47. 28/2002-Cus(NT) dated 13-5-2002] Earlier. P. Checking of duty drawback / license documents . [Notification No. the period allowed was only 2 days). The importer/exporter has to furnish guarantee/security as required by Customs Officer for payment of difference if any. This is a current account. Disposal if goods are not cleared within 30 days . will be checked. However. [section 47(2)]. goods can be sold after giving notice to importer. interest rate was 24% p. interest is payable.If goods are to be removed to a warehouse.D.e. However. The goods can be taken to a warehouse under bond. This is an µadjudicating order¶ within the meaning of Customs Act. If bond has to be executed.e. advance license. Arms & ammunition can be sold only with permission of Central Government. 1962. even if it is passed by Appraiser and not by Assistant Commissioner. In such cases. Of course.If duty is not paid within 5 working days as aforesaid. perishable goods and hazardous goods can be sold any time . the bill of entry is returned to importer. Customs Officer can grant extension. payment of customs duty is required. Execution of bond and payment of duty .a. w. Bank guarantee can also be given as a security. The importer or CHA pays lumpsum amount in the account and gets credit on the amount paid. account means provisional duty account.. the Customs Officer may require importer to execute a bond for twice the difference in duty. Otherwise.Once the duty is assessed. duty drawback etc. Interest for late payment . without payment of duty. If the importer does not have an account. . Out of Customs Charge Order . D. payment through PD account is very convenient and quick.D. if goods are to be removed for home consumption. (Provisional Duty) account. (Till 11-5-2002.e.

After import of software through internet. The µperson in charge of conveyance¶ has to follow prescribed procedures. The procedures are similar to procedures for import. but permission of Customs Officer is required (section 40). The documents such as invoice etc. Procedures by person in charge of conveyance ± Any new airline. Hence.Section 15 of Customs Act prescribes that rate of duty and tariff valuation applicable to imported goods shall be the rate and valuation in force at one of the following dates. Steamer Agents can file µapplication for entry outwards¶ 14 days in advance so that intending exporters can start submitting µShipping Bills¶. shipping bill is not necessary. [Highlights of EXIM policy 1997-2002 as amended on 13. [what for ?]. shipping line. Relevant Date for Rate and Valuation of Customs Duty . duly passed by Customs Officer is handed over by Exporter to the person-in-charge of conveyance. Since such imports are not available for physical verification. NO STOPPAGE OF EXPORT CONSIGNMENT .Demurrage if goods not cleared . This should be approved by him. Export Procedures Procedures have to be followed by (a) µperson-in-charge of conveyance¶ and (b) the exporter. in reverse direction. Loading can start only after entry outward is granted. In case of any doubt. He will issue 'out of charge' order. 58/2000-Cus dated 10-7-2000. proper accountal in books should be maintained.The vessel should be granted µEntry Outward¶. Unit intending to import software through datalink is required to inform estimated annual requirement to Development Commissioner of EOU / Director of STP. customs authorities may ask for an undertaking that the export is on sole responsibility of the exporter.Heavy demurrage is payable if goods are not cleared from port within three days. Any stoppage in export consignment means loss of export orders to the exporter and loss of foreign exchange to the country. Entry Outward . In case of baggage and mail bags. MF(DR) circular No. . it has been provided that movement of export consignment will not be interrupted and no export consignment shall be withheld for any reason whatsoever. This ensures that formalities are completed as quickly as possible and loading in ship starts quickly. will be routed through bank. Import of software through data communication . along with Bill of Entry and certificate from Development Commissioner of EOU / Director of STP. (section 39 of Customs Act).It may be noted that concept of µ date of entering into territorial waters¶ is not relevant for purposes of determination of rate of customs duty.4. steamer agent should be registered in Customs Systems for electronic processing of shipping bills etc. the date on which bill of entry is presented (b) in case of warehoused goods. CONCEPT OF TERRITORIAL WATERS NOT RELEVANT .1998].Import of software through data communication / tele-communication is permitted. written information should be submitted to Director of STP / Development Commissioner of EOU and importer shall get a certificate. when Bill of Entry for home consumption is presented u/s 68 for clearance from warehouse and (c) in other cases. date of payment of duty. This certificate should be submitted to Assistant / Dy Commissioner of Customs within 48 hours.Export goods can be loaded only after Shipping Bill or Bill of Export. (a) if the goods are entered for home consumption.Exports are vital for our economy. LOADING WITH PERMISSION . of course.

if there was no fraudulent intention. export contract. It should be submitted in quadruplicate. The details required are similar to import manifest. The Customs Officer certifies that the goods under this form have indeed been exported. This report is not required if the conveyance is carrying only luggage of occupants. This form has then to be submitted to Maritime Commissioner for obtaining µproof of export¶. Such report should be declared as true by the person-in-charge signing the export manifest. It is a PAN based number Open current account with designated bank for credit of duty drawback claims Register licenses / advance license / DEPB etc. one additional copy should be submitted. There are five forms : (a) Shipping Bill for export of goods under claim for duty drawback . Goods have to be assessed for duty. copies of packing list. Shipping Bill to be submitted by Exporter . Duty drawback formalities .this should be yellow colour (c) shipping bill for export of duty free goods . [proviso to rule 12(1)(a) of Duty Drawback Rules].EGM].If the goods are cleared by manufacturer for export.e. FOB Value etc. from bonded store room . details of packing.it should be pink colour (e) Shipping Bill for export under DEPB scheme . Customs authorities give serial number (called 'Thoka Number') to shipping bill. Procedures to be followed by Exporter ± Export procedures have been summarised in Chapter 3 Part II of CBE&C¶s Customs Manual. 3. where bond was executed. he has to follow prescribed procedures and submit necessary papers. are also to be submitted. when it is presented. . Every exporter should take following initial steps -± 1. [The report is popularly called as µExport General Manifest¶ . 2001. description of goods.i. consignee. Appropriate form of shipping bill should be used. invoices. letter of credit etc. In case of excisable goods. even if no duty is payable for most of exports.If the exporter intends to claim duty drawback on his exports. Commissioner of Customs can grant exemption from this provision. The shipping bill form requires details like name of exporter. from ARE-1 prepared at the time of clearance from factory should also be submitted.it should be white colour (d) shipping bill for export of duty free goods ex-bond . if exports are under Export Promotion Schemes Exporter has to submit µshipping bill¶ for export by sea or air and µbill of export¶ for export by road.these should be in Green colour (b) Shipping Bill for export of dutiable goods . the goods are accompanied by ARE-1 (earlier AR-4). 2. He has to make endorsement of shipping bill that claim for duty drawback is being made.Export Manifest . If drawback claim is to be made.As per section 41. as µNil Duty¶ assessment is also an assessment. Relevant documents i. The bond executed by Manufacturer-exporter with excise authorities is released only when µproof of export¶ is accepted by Maritime Commissioner or Assistant Commissioner. Such manifest/report can be amended or supplemented with permission. Excise formalities at the time of Export .Blue colour. at the customs station. Invoice Number. If he fails to do so due to genuine reasons. quantity. Obtain BIN (Business Identification Number) from DGFT.Shipping Bill and Bill of Export Regulations prescribe form of shipping bills. an Export Manifest/Export Report in prescribed form should be submitted before departure.e. The procedures are discussed in the chapter on µExport Incentives'. This form should be submitted to customs authorities.

Examination of goods before export . duly signed are handed over to exporter or CHA. RCMC certificate from Export Promotion Council . Goods are inspected at docks on the basis of printed check list. (e) Letter of Credit (f) Declaration of Value (g) Excise ARE-1/ARE-2 form as applicable (h) GR / SDF form prescribed by RBI in duplicate (i) Letter showing BIN Number. are also signed. ³G R´ stands for µGuaranteed Receipt¶ form. Exporter¶s copy of Shipping Bill. coffee and coir products can be exported only against authorisation/licence under respective Acts. narcotics etc.Customs Officer will verify the contents and after he is satisfied that goods are not prohibited for exports and that export duty. is correctly claimed. ARE-1 etc. This inspection is necessary (a) to ensure that prohibited goods are not exported (b) goods tally with description and invoice (c) duty drawback. the goods are presented to shed appraiser (exports) in dock for examination. which is endorsed on printed checklist generated for verification of data.) Exporter has to become member of the concerned Export Promotion Council and obtain RCMC . These are signed by CHA and customs officer and then by Appraiser.G R / SDF / SOFTEX Form under FEMA . µlet export¶ order is issued. if applicable is paid.Some exports are totally prohibited under various Acts e. Drawback claims papers are also processed. Processing under EDI system ± Under EDI system. octroi papers. and following are checked . Exporter¶s copy of shipping Bill. duly certified are handed over to exporter or CHA. Other documents required for export . Exporter¶s copy is generated only after EGM (Export General Manifest) is submitted by shipping agent. Chapter 3 Paras 42 to 60 of CBE&C¶s Customs Manual. samples may be drawn and assessment may be done after visual inspection or testing Exportability of goods under EXIM policy and other laws . quota certification for export etc. Let Export Order by Customs Authorities . . (section 51) by giving µlet ship¶ or µlet export¶ order.Chapter 3 Para 43 and 60 of CBE&C¶s Customs Manual. If goods and documents are found in order. while SDF stands for 'Statutory Declaration Form¶). Apparel Export Promotion Council. items restricted or prohibited under Foreign Trade (Regulation) Act. octroi papers. 2001. ARE-1 etc.Chapter 3 Para 39 of CBE&C¶s Customs Manual. where applicable. GR-1. while GR form is used when shipping bills are processed manually in customs house. If necessary. will permit clearance. ARE-1. After verification.After shipping bill is passed by export department. ARE-1.Registration cum membership Certificate. Engineering Export Promotion Council. All documents are submitted to Customs Officer along with checklist. are also signed. antiques. quota certification for export etc. etc. 2001. Some items like tea. SDF. Arms. Check in customs ± Document submitted is processed by customs authorities. declarations in prescribed form are to be filed through µService Centre¶ of customs. SDF form is to be used where shipping bills are processed electronically in customs house. Goods will be examined by examiner.g. ± Value and classification of goods under drawback schedule in case of drawback shipping bills Export duty / cess if applicable Advance License shipping bills are checked to ensure that description in invoice and final product specified in Advance License matches. GR-1. SDF.g. .Reserve Bank of India has prescribed GR / SDF form under FEMA. Then two copies of Shipping Bill are generated ± one customs and other exporter¶s copy.Exporter also has to prepare other documents like (a) Four copies of Commercial Invoice (b) Four copies of Packing List (c) Certificate of Origin or pre-shipment inspection where required (d) Insurance policy. shipping bill number is generated by the system. art treasures. (e. 2001.Various Export Promotion Councils have been set up to promote and develop exports.

Such transhipment may be to any major port or airport in India. [section 54(1)]. otherwise. Such order is given only after (a) export manifest is submitted (b) shipping bills or bills of export. it may be loaded in a small boat and sent to shore. Transhipment of Goods . A bond has to be executed for the purpose. . the goods may go to another customs station. In case of goods being transhipped under an international treaty or bilateral agreement between Government of India and Government of a foreign country. If the small cargo is to be sent to shore. It will be maintained in duplicate and should be serially numbered. [India has such bilateral agreement with Nepal]. Such goods should not be µprohibited goods¶ under section 11 of Customs Act.Conveyance to leave on written order . The goods should be sealed during transhipment by customs officer. These are mainly to be followed by the person in charge of conveyance. no Boat Note is required if the cargo is accompanied by the µShipping Bill¶. Goods to be transhipped must be specified in Import Manifest or Import report and a µBill of Transhipment¶ should be submitted to Customs Officer. various other procedures have been prescribed. On arrival at customs station.. ship or aircraft].Section 53 provide that any goods imported in any conveyance will be allowed to remain on the conveyance and to be transited without payment of customs duty. [Goods Imported (Conditions of Transhipment) Regulations. Boat Notes Regulations provide that such Boat Notes will be issued by Customs Officer. ship or aircraft].section 55. i.Goods imported in any customs station can be transhipped without payment of duty. a Declaration of Transhipment shall be submitted instead of Bill of Transhipment. all these goods must be mentioned in import manifest or import report submitted by person in charge of conveyance. 50/95-Cus(NT) dated 6-9-95]. if applicable. such small boat must be accompanied by a µBoat Note¶. are submitted (c) duties on stores consumed are paid or payment of the same is secured (d) no penalty is leviable (e) export duty. Boat Notes .The vessel or aircraft which has brought imported goods or which carry export goods cannot leave that customs station unless a written order is given by Customs Officer. As per section 35. . the goods will be liable to customs duty as if it is first importation in India. section 55.If the vessel has to unload only a small cargo. to any place out of India or any customs station. transfer from one ship to another or for re-shipment. On arrival at customs station. 1995]. After transit. However. u/s 54 of Customs Act. Transhipment means transfer from one conveyance to another. if small export cargo is to be loaded in ship through small boat. Boat Note is also required for transhipment of cargo. is paid. a certificate from customs officer has to be submitted within one month that goods have been properly transferred. . In case of export. they will be liable to customs duty as if it is first importation in India. bills of transhipment etc. Boat Note should be in prescribed form.e. Other Customs Procedures Besides the aforesaid procedures. Transit Goods . [The conveyance may be vehicle. Boat Note is required. [The conveyance may be vehicle. The goods can be transhipped to any other customs station in India if customs officer is satisfied that the goods are bonafide intended for transhipment to any customs station. it may not spend time in having berth in the port.Such permission is not required if the conveyance is carrying only luggage of occupants. Such goods should not be µprohibited goods¶ under section 11 of Customs Act. The facility is available at all customs ports and Inland Container Depots (ICDs). [Notification No. After execution of bond.

buyer and some other parties. Therefore. LOADING OF COASTAL GOODS .Unloading of coastal goods should be done only at Customs Port or coastal port appointed by CBEC under section 7 of Customs Act. Goods will be unloaded at approved place under supervision of Customs Officer. all bills relating to goods which are to be unloaded will be delivered to Customs Officer. Thus. when called for. However. Unloading can be done only after obtaining permission from Customs Officer. but does not include imported goods. In this section. Master of Vessel will carry an µAdvice Book¶ where entries will be made by Customs Officer.TRANSIT AND TRANSHIP . As per notification No 15/98-NT dated 27. seller. if called for. coastal goods means goods taken by ship from one Indian port to another. After loading. we have discussed various topics related to foreign exchange rates in detail. These will be loaded by master of vessel only after µbill of coastal goods¶ is passed (section 93). Export documentation *Export and Import documentation Introduction An exporter without any commercial contract is completely exposed of foreign exchange risks that arises due to the probability of an adverse change in exchange rates.The Consignor should submit bill of coastal goods to Customs Officer (section 93). This µAdvice Book¶ has to be presented for inspection of Customs Officers. Export Documents not only gives detail about the product and its destination port but are also used for the purpose of taxation and quality control inspection certification. Shipping Bill / Bill of Export Shipping Bill/ Bill of Export is the main document required by the Customs Authority for allowing shipment. but control is necessary to ensure that coastal goods are not diverted illegally for export. Customs Officer can inspect goods and ask for questions and documents relating to goods.Coastal goods means goods transported from one port in India to another port in India. UNLOADING OF COASTAL GOODS . Form of the bill has been prescribed.1998. No export or import is involved. Coastal goods . goods are transferred to another vessel / vehicle. while in transhipment. exemption has been granted for delivery of 'Advice Book' at each port of call. Documents Required for Post Parcel Customs Clearance In case of Post Parcel. quoting of exchange rates and various factors determining the exchange rates. On arrival. no Shipping Bill is required.Distinction between transit and transhipment is that in 'transit' goods continue to be on same vessel. Hence. the 'Advice Book' will have to be submitted for inspection on board of vessel. included ship's owner. The relevant documents are mentioned below: . the vessel can leave only after obtaining written order from Customs Officer.2. Export from India required special document depending upon the type of product and destination to be exported. procedures are also different. it becomes important for the exporter to gain some knowledge about the foreign exchange rates. A shipping bill is issued by the shipping agent and represents some kind of certificate for all parties. For each one represents a kind of certificate document.

It is prepared on a special form being presented by the Customs authorities of the importing country. Certificate of Conditioning .Issued by the Shipping (Conference) Line which intimates the exporter about the reservation of space of shipment of cargo through the specific vessel from a specified port and on a specified date.It is an application to the customs authorities at port which advises short shipment of goods and required for claiming the return. marks on packages.It is prepared for admittance of the cargo through the port gate and includes the shipper's name.It is required in addition to the Certificate of Origin for few countries to show that the goods shipped have actually been manufactured and is available. etc. Antiquity Measurement ² It is issued by Archaeological Survey of India in case of antiques. Mauritius. Consular Invoice .It is a statement of packages which are shut out by a ship and is prepared by the concerned shed and is sent to the exporter. Sight Draft and Usance Draft are available for this. Manufacturer's Certificate . Burma.Mainly needed for the countries like Kenya. Customs Invoice . etc. Sight Draft is required when the exporter expects immediate payment and Usance Draft is required for credit delivery. Iraq.It is required when the exporter needs to certify on the invoice that the goods are of a particular origin or manufactured/ packed at a particular place and in accordance with specific contract. Commercial Invoice . Legalised / Visaed Invoice .It shows the details of goods contained in each parcel / shipment. hides. Ghana.It signifies that a certain lot of goods have been shipped.It is issued by the competent office to certify compliance of humidity factor. quantity. Shut Out Advice . New Zealand. Certificate of Chemical Analysis . It is known by the code number CP2/ CP3 and to be prepared in quadruplicate. marine products. Health/ Veterinary/ Sanitary Certification . Cart/ Lorry Ticket . etc.Issued by the exporter for the full realisable amount of goods as per trade term. Canada.It is required to ensure the quality and grade of certain items such as metallic ores.It is prescribed by the Universal Postal Union (UPU) and international apex body coordinating activities of national postal administration. Cyprus. Packing List . Shipping Order . cart/ lorry No. Short Shipment Form .Mainly needed for the countries like USA. livestock etc.It is required for countries which have strained political relation. It facilitates entry of goods in the importing country at preferential tariff rate. Tanzania. Black List Certificate . Ausatralia. Certificate of Shipment .It is filled by the exporter to specify the action to be taken by the postal department at the destination in case the address is non-traceable or the parcel is refused to be accepted. It certifies that the ship or the aircraft carrying the goods has not touched those country(s). pigments. Zanzibar etc.y y y y y y y y y y y y y y y y y y y y Customs Declaration Form .Required for export of foodstuffs. Nigeria. signed by the sender. Fiji. Certified Invoice . It is prepared in the prescribed format and is signed/ certified by the counsel of the importing country located in the country of export. Despatch Note. dry weight. . etc. Uganda.. Certificate of Inspection ² It is a type of document describing the condition of goods and confirming that they have been inspected.This shows the seller's genuineness before the appropriate consulate or chamber or commerce/ embassy.

A. Commercial Invoice (duly signed) 6. Routine Shipments 1. 13.A.N based certificates) 14. Modvat declaration (If applicable). 2. Certificate / Sales Tax regn. 15.F.t.W.in case A.A. Code No. Bank Delivery Order . / Purchase Order (w. 'N' form registration. 9. 20.T. 12. Original documents (Bank attested). 10. Cargo Arrival Notice (C. Blank letterheads. 19.E.Import Documentation Imports: In the following pages we have endeavoured to list out in detail almost all the aspects of the documentation that is required to be submitted to customs at the time of assessment.B).r.W. the document referred to in 8. Income Tax P. Factory licence / Shop and Est. Freight Certificate (If freight Payable in India). You could also access formats of some vital documents that are required to be submitted to the Indian Customs with facility of taking printouts.C. 16. 5. Literature. I.N No. ( D. Letter of Authority. (Take Print). For Octroi 17. has now issued P. Import and GATT declaration forms duly filled and signed (Take Print). the invoice. Airway Bill (A. Certificate of Origin. 7.B).N). Octroi 'N' forms. 3. in favour of INTERPORT CLEARING SERVICES for Delivery Order (Take Prints). Packing List. Catalogue / Drawing / Tech.A.O.) collection of documents / . Copy of L/ C. (a) 'N' Form. (b) 'N' Form Undertaking.B / C. 18.G. Insurance Certificate or Insurance Premium Memo (Required only if terms 11.N is in favour of the Bank. are C & F / F. 4. Indent / Proforma Inv.

Passbook Scheme 1. 3.C.g. they can ask for any other papers.T. the customs department will insist on certain additional documents during assessment of the Bill of Entry.P. their ratings should be 5. or the different modes that they are being imported. 2.C. We are listing out the various documents required for the various products.individual as well as consolidated. In case the customs officer has any doubt. 4.t. Documents for registration of E. Annexure 'C' (in quadruplicate).T. Circuit Breakers. 3. Scheme / S. In such cases separate values will have to be indicated. specified (e.G. Machinery and Spares 1. STP 2. Warehousing Bond. Relays etc. the import documents and EPCG licence. 2. U. Container and case wise packing list. Original E.U.r.). licence matches with that import). D. Scheme 1.C. licence with list of Import items duly attested by Foreign Trade). End use Bond.G.P. In case Software is shipped along with the equipment.P 1.O. etc. Original DEPB licence. Scheme 1. Separate value of Spares .P / E. The model no on the documents and catalogue must also tally with the number mentioned on the machine / equipment during physical examination of the goods as this is the most crucial aspect for verification of the goods w. In case of electrical goods e. whether the 100 % E. Bond for clearance under E. at customs (Green Card. With regards to certain categories of Imports related to certain schemes or for different nature of products.H.V. 6. O. The Customs authorities will check if the description of goods in EPCG indicated on the invoice.The above listed documents are required in the normal course of clearance to ensure smooth and quick clearance of your Cargo. (Director General of Bank Guarantee (if required). D. Original Catalogue and Write-up.F. / Volts / Amps / Watts).P. Certain customs exemption notifications do not permit accessories (standard and optional) for benefit of concessional duties at all. K. 4. Software is inbuilt or separate.P. E.g. Original Pass Book. Transit Bond (If shipment is to be sent to a place other than port of 4. Switches.B. . If the accessories are of optional nature then duty will be charged on Merits. approval. as per Customs format along with 3. In case of accessories the catalogue must show a detailed list of standard accessories.T.E.G. different schemes.G. 2. which on demand will be called for from the importers.

2. Model No. no. A bond is a collateral security . Original Import part of D. In case of spares Catalogue of spares as well as that of main equipment.E. 2. In case of prior imports.E.E. Original Export Shipping Bill duly endorsed by customs at the time of export indicating Model No. the shipping bill. previous Import documents . 5. A.C.D. Evidence of Value. 3 & 1. Part No.E. In case Export obligation period of licence has expired .C. 3. Test Bond . and Sr. 2. Scheme 1. The primary purpose of the bond is to secure due compliance with the rules and procedures laid down under the Excise law. Invoice showing repair charges.C. 2. 3. Manufacturers literature. Bond / Bond with Bank guarantee.R. which the department is securing to ensure payment of appropriate duty in addition to the statutory provisions available . book. Chemicals 1. Mills Test Certificate.D. Import of Metals 1. of the Item for establishing the identity of goods during import examination. etc will also be correlated by 4 of EPCG documentation above. Correspondence regarding Free supply with the supplier. Original Advance licence (custom purpose copy). 2. Certificate of Analysis.E. 4. Export Airway Bill and Insurance memo indicating Freight and Insurance charges.E.E. Item description. It is also a legal agreement whereby a person undertakes to do or not to do anything subject to conditions stipulated in the agreement. Invoice must clearly indicate the year of Manufacture.required in case of 1st import from a new supplier or in absence of literature or a previous test report.C copies of copies of duly audited export D.1 Bond is an instrument by which the obligation to pay money is created expressly. Bonds and Letter of Undertaking 1. End use declaration.E. No. Price list. 1. 3. 4. Re-imports 1. Second Hand Capital Goods 1. 3. 4 customs as indicated at sr. Evidence of original value of new equipment. . Free of Charge Shipments.

4. 3. 2001 have since been dispensed with. Types of bonds 2.O. The security should normally be limited to the 25% of the bond amount. 1944.1. certain specific categories i. Under a surety bond another person stands as surety to guarantee the performance on the part of obligor. B-17 Bond (General) Surety / Security -composite bond for EPZ/ 100% EOUs for assessment.2 As a measure of rationalization and simplification of excise law and procedures the number of bonds have been further reduced.3 In the case of 100% E. surety and security. This is a modification over the previous instruction contained in Board·s Circular No. In respect of 100% EOUs & EPZ s units may . 2.96. The surety should be for the full amount and the person standing as surety should be solvent to extent of the amount covered.2 In case of exporters. Under the Contract Act the liability of the surety is coextensive with that of the principal debtor and hence the department is at liberty to enforce the recovery of the dues either from the obligor or from the surety. 3. B-4 Bond Surety/Security for provisional release of seized goods (provided in this Manual by instruction). Guidelines for executing bonds 1.1 The bond should be executed on the non-judicial stamp paper of appropriate value. The surety should be for the full value of the bond and the person standing as surety should be solvent to the extent of the bond amount.for export of goods without payment of duty under Rule 19. accounting and disposal of excisable goods obtained free of duty [continuation of the Format as specified under the erstwhile Central Excise Rules. which were executed prior to 1st July. and 5.i.12. These bonds should be discharged only after the completion/performance of the obligation.2 The following are the types of bonds.Us obtaining indigenous goods without payment of duty under a notification issued under section 5A of the Central Excise Act. Care should be taken with regard to bonds. 2001 while discharging the same. Star Trading House. Several bonds. 2. which are presently in vogue : B-1 Surety / Security (General Bond) . 3. 2. Exporters registered with Export Promotion Council & Registered Exporters need not furnish any bank guarantee/cash security while executing export bonds.to obtain matches Central Excise stamp on credit.1 Bonds are basically two types . export. The bond amount should be sufficient to cover the duty liability. acceptance of surety bond instead of bank guarantee is permissible. The bond should be signed by the obligor or by the authorised agent. 3. B-2 Bond Surety / Security(General Bond) for provisional assessment. They may furnish sureties only. 1944]. Super Star Trading House. B-3 Bond Surety / Security) .284/118/96-Cx dated 31. 3. which were in vogue prior to 1st July.e.e.

5. In the case of provisional assessment. If the provisional assessment cannot be completed within the 3 months and longer time is required. where the existing units have already furnished bond in B-17 Form prior to 1. except where arrangement can be made for embossing printed forms or where the State Government rules require otherwise. the proper officer under rule 7 of the said Rules may order for a higher security amount. the amount of security will be generally fixed at 25% of the bond amount. The amount of the general bond in Form B-2(surety)/(Security) should be equal to the difference between the duty payable on provisional assessment and the probable duty payable applying the highest rate / value applicable to such goods for a period of 3 months. in appropriate cases. If the security furnished is found to be inadequate. The bonds must be executed on stamp paper of the respective State Government in which the registered persons business is situated. The amount of the specific bond in Form B-2 should be sufficient to cover the difference between the duty payable on provisional assessment and the probable duty payable if the highest rate / value applicable such goods has to be applied. Bonds for provisional assessment 4. They should be properly stamped. the proper officer may demand fresh bond. The existing bond may be simply re-validated under the new rules. for special reasons to be recorded. in appropriate cases. if the assessee fails to make the due adjustment within the period of 15 days after the final assessment made. 1944. 2. 4.No./6/98). differential duty likely to arise during such period shall be the basis/ determination of the bond amount.7. he may demand additional security also. When the security bond is executed. In the event of death or insolvency or insufficiency of the surety / security. the proper officer may proceed to enforce the bond or encash the bank guarantee after due notice to the assessee. While executing combined B17 Bond security to the extent of 5% of the value of the bond in the form bank guarantee or cash deposit or any other mode of security may be accepted in lieu of surety (Board·s letter F.4 The export bonds executed under rule 19 of the said Rules should be accepted within 24 Hours or the next working day and communicated to the exporter by the Deputy/Assistant Commissioner of Central Excise or Maritime Commissioner or any other officer authorised by the Board in this behalf.305/86/98-FTT dated 19. say a period of one year. The prescribed wordings of the bond form must be copied out on a non judicial stamp paper of the appropriate amount (to be locally ascertained).continue to execute bond in the Format given in Form B-17 under the erstwhile Central Excise Rules. However. 3.1 The amount of the bond in forms B-2 should be fixed on the following basis: 1. Stamps on bond .5 Bonds should be executed in favour of and in the name of the President of India. Fresh bond may not be taken.2001. 3.

cancel the same so that it cannot be used again.1 The security to be furnished in respect of the bonds will be. bank deposits. Execution of bond by Government Undertaking or Autonomous Corporations 6. Security 7. national savings Certificates. 6.F. 1944. 6. or in any other effectual manner. National Defence Gold Bonds. Government promissory notes. The security furnished should either be cash.5.R. Any instrument bearing an adhesive stamp. 7. Commissionerate should circulate to their staff the rate of stamp duty required in each State within Commissionerate for each type of bond. shall so far as such stamp is concerned be deemed to be un-stamped.2 An undertaking owned or controlled by the Central Government or State Government does not include-any undertaking belonging to corporation owned or controlled by the Central Government or State Government and established by or under a Central Provisional or State Act. 1980 or similar realizable Government papers. 2. Promissory Notes and stock Certificates of the Central Government or a State Government shall be accepted subject to the conditions laid down in clause (ii) of Rule 274 of GFR. or.2 Whoever affixes an adhesive stamp to any instrument chargeable with duty which has been executed by any person shall when affixing such stamp cancel the same so that it cannot be used again and whom so ever has executed any instrument on any paper bearing an adhesive stamp shall at the time of execution unless such stamp has been already been cancelled in the manner aforesaid. 1956 (I of 1956). which has not been cancelled so that it cannot be used again. or a State Government is hereby exempt from furnishing any security or surety for bond. Directorate or Directorates by the Central Government is exempt from the execution of any bond.1 The Board has decided that every undertaking owned and managed directly through any Ministry. The person required to cancel an adhesive stamp may cancel it by writing on or cross the stamp with his name or initials or the name or initial of his firm with the true date of his so writing. post office savings. where the execution of such bond. National Defence Bonds. modified as may be.1 All bonds must bear stamps on the scale prescribed by article 57 of the schedule I to the Indian Stamp Act 1899. by State Legislation. Deposit receipt of bank can also be pledged as securities for Central Excise . The conditions inter alia are: .Bonds subject to certain specific conditions under Rule 274 (vi) of G. or any undertaking belonging to Government Company within the meaning of Section 617 of the Companies Act. 5. as follows: 1. as the case may be furnishing of security or surety is required by or under any other provision of the rules made under Central Excise Act.

8. 3. 6.1 The provisions governing the execution of bonds by banks are. On cash securities no interest is payable. if any. so as to enable the enforcement of liability as and when such need arises. (F. Field officers will ensure that surety is financially sound and have been verified from time to time.2 A partner or a director of a limited company can also stand as surety in his individual capacity to guarantee the performances of the firm or a company as the case may be. 8/10/16/CX II dt 5/8/1960) 9.1. the interst may be paid to the parties on claim preferred by them periodically or can be collected after the amount is returned to them. Surety 8. a limited company is a distinct legal entity and the member of the company including directors are distinct from the company. 5. In respect of other securities. 8. Since. continue to accrue and will be realised by the holders on discharge of the bond and return of the securities. arrangements must be made for credit or payment of the interest on such securities to the bonders. The deposit receipt shall be made out in the name of the pledgee or if it is made out in the name of the pledger. Guarantee bond executed by bank 9. 2. Whenever bank guarantee is accepted for security. care should be taken to get the guarantee renewed before expiry from time to time. The depositors shall agree in writing to undertake any risk involved in the investment and make good the depreciation. Interest on the securities will. Only the larger Scheduled banks are to be considered as recognized banks approved by Government for the purpose of item of Rule 274 of G.F.R. arrangements are to be made for the payment of interest at regular intervals of 6 months. No. 4. direct from the bank on a letter from the pledgee authorising the bank to pay it to him. 8. The responsibility of the pledgee in connection with the deposit and the interest on it will cease when he issues a final withdrawal order to the depositor and sends an intimation to the Bank that he has done so. however. Where the same bond and security continue for over one year. there should be no objection to allow the directors of the limited company to stand as surety for the companies provided they fulfil all the other conditions applicable to sureties. in law. 7. the bank shall certify on it that the deposit can be withdrawn only on demand or with the sanction of the pledgee. Execution of B17 Bonds is optional and if the assessee does not wish to avail of this facility.1 Whenever surety bond is executed it is to be ensured that both the obligor and surety sign the bond. The depositors shall receive the interest when due. he may execute individual bonds prescribed for different purposes. In the case of Savings Bank Account. as follows: .

Preservation of bond and retention of securities 1. solvent and alive. 1. The enquiry to verify the financial stability of the sureties will be made by any of the following methods: 1. Bonds must be preserved as long as they are valid and should be returned only after all the obligations under the bond had been discharged. Verification of sureties 11. The obligations under the bond are not legally extinguished so long as the bond is not returned to the obligor or is not cancelled on execution of a deed of cancellation. industrial equipment. otherwise it is likely to be argues that persons liable under the bond have been their by discharge from the liabilities imposed by the bond. Alternatively. 2. which may be verified by the Officer. it should be done by means of supplementary deed of bank guarantee on a stamp paper. the sureties may themselves be asked to furnish a list of their property. 2. 2. which would cover the bond amount.1 Proper preservation of bonds is to be ensured in the interest of the revenue. Where there is a need for extension of the period of validity of bank guarantee furnished by the bank on behalf of a party in pursuant to an order of an original or appellate authority or any other reasons. 11. preferably on an annual basis will be made by the jurisdictional Central Excise Officers so as to ensure the sureties are financially sound. shop etc. 4. The result of enquiry as well as the solvency of the surety should be incorporated in the records of the Department. The time limit for enforcement of obligation should be at least two years. By reference to the surety·s bankers. . By reference to Revenue Officer not below the rank of Tahsildar or a Mamalakdar.When the State Bank of India or a scheduled bank gives a guarantee for a registered person with or without deposit of security. 10. 10. the guarantee bond should provide a period of validity and an extra period during which obligations arising during the period of validity to be enforced. periodical verification. By making personal enquiries and ascertaining whether the surety possesses a house or other immovable property.1 In respect of surety bonds. 3. All officers who filled Central Excise bonds must be careful not to enforce the words " cancelled" on the bonds even after the apparent fulfilment of obligation .

1 There are mainly three categories of exports: i. 1. the procedure specified in the said Rules and the notification issued thereunder are subject to section 11B of the said Act.2) Rules. Thus. 1. Categories of exports 2.EXPORT UNDER CLAIM FOR REBATE DUTY UNDER RULE 18. Introduction 1. refund includes ¶rebate· of duty of excise on excisable goods exported out of India or on excisable materials used in the manufacture of goods which are exported out of India. Export to Nepal.2 It is worth mentioning that as per the definition of the term ¶refund· in section 11B of the Central Excise Act. The new rule 18 corresponds to the earlier rule 12 of the Central Excise Rules. Export of mineral oils supplied as ship stores to aircraft on the foreign run to all the countries. 2. 1944.) dated 26th June. 2001 (hereinafter referred to as the said Rules).T. 2001 issued under rule 18 of the Central Excise (No. Export of all excisable goods to all countries except Nepal and Bhutan except certain mineral oils supplied as ship stores to aircraft on the foreign run.1 The conditions and procedure relating to export under claim of rebate are contained in Notification 40/2001-Central Excise (N. and s iii. 1944. ii. .

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