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- Invoice, Packing List, Inspection Certificate, Certificate of Origin, Shipping Bill, ARE-1, Mate Receipt, GR/SDF, Bill of exchange, Bank Realisation Certificate, Bill of Lading and Airway Bill, Bill of Entry etc.
@Incoterms @Terms of payment @Documentation: Overview – Commercial
and Regulatory documents
of credits - Concept, Types of L/C, Parties to L/C, L/C mechanism.
@Import Procedure @Export Promotion Schemes under Foreign
Purview of Export-Import
FLOW CHART – I (continue from the previous slide)
Overview of Documentation
are important for the following reasons:
(a) as an evidence of shipment and title of goods; (b) for obtaining payment; (c) to provide a specific and complete description of the goods; (d) for assessment of correct Duty for clearance purpose; (e) for obtaining Export Licences; (f) for obtaining export finance; (g) for completing Pre-shipment Inspection; (h) for claiming export benefits like Duty Drawback, etc.
Commercial / Regulatory Documents
@Commercial set of documents are mainly
used for Commerce. In other words these are documents normally exchanged between buyer and seller.
documents are required in dealing with various regulatory authorities such as customs, RBI, Excise, Licencing authorities Inspection and other Export
Commercial / Regulatory Documents @Documents are categorized into two categories. Commercial Documents / Regulatory @Referring to the Commercial set of documents. @These documents may not be required . it may please be observed that these set of documents are prepared from other set of documents (some of these only).Promotion bodies for availing incentives etc. These are known as auxiliary documents. namely Commercial Documents and Regulatory Documents.
till the consignment is presented to the customs department for clearance. but these are must for preparation of main export documents.by the foreign buyer. which are required to be made. known as Principle Commercial Documents. therefore. @The following documents can. Pre-shipment Documents @Documents at pre-shipment stage are those documents. be treated as pre-shipment documents:- @Proforma Invoice @Confirmed order or contract .
.@Letter of Credit @Pre-shipment Inspection Certificate @Packing list @Shipping Bill @Export Declaration Forms (GR/SDF) @ARE Post-shipment Documents @Documents at Post-shipment stage are naturally those which are prepared after the shipment.
@These documents include the following:@Mate Receipt @Bill of Lading @Airway Bill @Roadway/Railway Bill @Post Parcel/ Courier Receipt @Invoices (including consular invoice) @Certificate of Origin @Insurance Certificate or Policy @Bill of Exchange @BRC .
depending upon. @Application the bank. for pre-shipment finance from @Application of Advance Authorization or Duty . with various Documents for availing various Export Benefits @ At the pre-shipment stage the following documents are note-worthy.Documents for availing various Export Benefits @Documents are also divided. whether the benefit has to be claimed prior to exports or after the exports. @For claiming benefits one has to make different applications government authorities.
the following documents are note-worthy. @Application of Duty Entitlement Pass Book. @Application Drawback for fixation of Brand rate of Import Documentation Important Documents–Imports . @Application for Focus Market or Focus Product Scheme.Free Import Authorisation with DGFT. @Application for execution of Bond with Central Excise authorities. @Application for obtaining CT-1 in case of a Merchant Exporter Documents for availing various Export Benefits @ At the post shipment stage.
@Invoice @Packing list @Bill of Lading or Delivery Order/Airway Bill @GATT declaration form duly filled in @Importers/CHA’s declaration @Licence/Authorisations in original wherever necessary @Letter of Credit/Bank Draft/wherever necessary @Insurance document @Import license @Industrial License. if required @Test report in case of chemicals .
and date. if preferential rate of duty is claimed under PTAs/FTAs etc.@Catalogue. @No Commission declaration Understanding Documents Understanding Documents @All documents whether it is for export or import transaction generally contain following information @ @ Name and address of the exporter and importer Document No. spares or chemicals as may be applicable @Separately split up components. machineries value of spares. Literature in case of machineries. Technical write up. @Certificate of Origin. .
Value Currency Terms of payment . [if any] Weight ITC HS Code No. and date Port of discharge Port of destination Country of origin Description of Goods Marks and nos..@ @ @ @ @ @ @ @ @ @ @ Order No. model nos.
apart from the above details.@ Terms of shipment etc. depending upon the nature of the document. etc. Similarly.g. Invoice . specific information is to be mentioned. Packing List will give information about how goods are packed. @Let us now study each document in depth. Shipping Bill will include what export benefit is being claimed against that particular shipment. @For e. Understanding Documents @However.
of @ It helps the Customs Authorities to: @ensure that goods shipped are permitted by the export policy. They generally open a few packages at random and check the veracity of details in the invoice. payable on the export or the import. @compute the customs duty. @check the quantity of goods. if any.@It is itemized statement prepared and issued by a seller at the time dispatching the goods to the buyer. Invoice . @check if there is any over-invoicing or underinvoicing (that may be resorted to by the importer to reduce the import duty payable).
marked and numbered including weight and dimensions of each package.@Invoices are often called bills. . @Various types of invoices used in International Trade are @Proforma Invoice @Commercial Invoice @Consular Invoice @Leagalized Invoice @Customs Invoice Packing List @It is a consolidated statement in a prescribed format detailing how goods are packed.
is useful for customs at the time of examination and warehouse keeper of buyer to maintain inventory record and to effect delivery.
@It have many details common from invoice but
it does not indicate unit rate value of goods.
@The exporter or his/her agent, the customs
broker or the freight forwarder, reserves the shipping space based on the gross weight or the measurement shown in the packing list.
@Customs uses it as a check-list to verify: @the outgoing cargo (in exporting) and @the incoming cargo (in importing).
@Basic functions of Packing List are: @To confirm the contents of a shipment as it
left the exporter’s premises.
@To indicate weights, measures and the piece
count (i.e. the number of cartons or cases) in that shipment.
@It is prepared in 7-10 copies or as per
of Inspection” is issued by the Inspection Agency concerned certifying that the consignment has been inspected before shipment as per the requirements of the Exports (Quality Control and Inspection) Act, 1963.
@It satisfies the conditions relating to quality
control and inspection as applicable to it and is
certified export worthy.
@This certificate is required: @by customs before allowing
@by a banker to negotiate the documents. @This
certificate bears cross references of invoice or contract number.
@ Inspection can be done by @Inspection Agency appointed
by the Government of India, i.e. Export Inspection Agency, Textile Committee, Central Silk Board etc.
@Inspection Agency may also be nominated by
importing countries’ Government i.e. SGS and
@It can be a certificate of quality. @Sometimes buyer himself appoints an independent private inspector to inspect the goods. So it is a sort of declaration testifying the origin of export. it is insisted by . @It is normally required by an importer to clear goods from the customs. then exporter is required to arrange for necessary inspection. analysis. Certificate of Origin [COO] @It is a certificate indicating the fact that the goods which have been exported have originated or manufactured in a particular country.OMIC by some African Countries. or the like. @For political and social reasons. @If an inspection is a part of transaction. weight.
Customs can ensure that certain prohibited goods of particular countries are not imported. goods imported under Free Trade Agreement. @It also ensures that goods have not been reshipped by a seller who has brought them into his own country from some other place of origin. @It is sent to the importer by the exporter.g. .Customs Authority of importing country before goods are allowed to enter in the country. if any. For e. @It helps the importer to take an advantage in duty concession. Certificate of Origin [COO] @On the basis of COO.
on prescribed form. such as a Chamber of Commerce.@It is issued or signed by an independent Certificate of Origin official organization. 2. Preferential Origin Preferential Certificate of Origin and Non-preferential Certificate of Origin Certificate of . @ There are two categories of Certificate of Origin : 1. @These are often required: @to meet Customs requirements importing state in the @to comply with Banking requirements @for other official and commercial reasons.
@It entitles preferential treatment in duty in the importing country. @These certificates are governed by rules of origin which are always part of Preferential Trading Agreements entered into between two or more countries. @As far as India is concerned the following agreements are noteworthy: (GSP) @Generalised System of Preferences @SAARC @Asia(APTA) Preferential Agreement (SAPTA) Pacific Trade Trading Agreement .
Spices and Cashewnuts @Central Silk Board through 8 regional offices all over India . @Directorate General of Foreign Trade & its regional offices .@India-Sri Preferential Origin Lanka Agreement (ISLFTA) Free Trade Certificate of @Some of the agencies authorised to issue PCOO are: which are @Export Inspection Agencies – All products. @Spices Board. Ministry of Commerce & Industry . @Coir Board – Coir and Coir Products.All products.Silk Products. .
Shipping bill @Shipping Bill is an important document required to seek permission of customs to export goods by Sea/Air. @The Government has also nominated certain authorised agencies to issue Non Preferential Certificate of Origin in accordance with Article II of International Convention Relating to Simplification of Customs formalities.@Textile madeups Committee - Textiles and Non-preferential Certificate of Origin @It evidences the origin of goods and do not bestow any right to preferential tariffs. It is prepared by the exporter and .
Shipping bill @ Shipping Bill normally contains: @the name and address of importer/consignee and exporter.submitted to the Customs. @The exporter “SHIPPING BILL” export by air or respect of export of any goods has to file a as an entry for the purpose of sea and a “BILL OF EXPORT” in by land. the @invoice number and date. . @The exporter has to sign a declaration in the Shipping Bill regarding the truth of its contents. @Cargo will be allowed to be carted to Dock/Port sheds only after stamping and passing of the shipping bill by customs authorities.
@marks and numbers. @name of master or agents. etc. quantity details of each case.@name of vessel carrying the goods. @number of packages with total weight. @value of the goods as defined in the Sea Customs Act. Shipping bill @ Types of Shipping Bills: . @description of goods. @country of final destination. @port at which goods are to be discharged.
Duty is charged either on quantity basis (Fixed amount per kg. @SHIPPING BILL FOR SHIPMENT EX-BOND: Used when the goods are to be exported which have been imported earlier and kept in bond prior to re-export.@FREE SHIPPING BILL: Used for export of goods which neither attract any Export duty/cess nor entitled to any Duty Drawback @DUTIABLE SHIPPING BILL: Used when export goods are subject to Export Duty/Cess. Shipping bill @ Types of Shipping Bills: . @DRAWBACK SHIPPING BILL: Used when Duty Drawback is to be claimed. or per Metric tonne) or on certain percentage of assessable value.
@DEPB SHIPPING BILL: When DEPB benefit is to be claimed. If Drawback/DEPB claim is to be made. @ Copies of Shipping Bill are as under: @ Customs Copy: For record of Customs . one additional copy should be submitted. Shipping bill @Shipping bill is required to be submitted in quadruplicate. @DEEC CUM DRAWBACK SHIPPING BILL: This shipping bill is used for export of goods where both the schemes Duty Exemption as well as Drawback are to be taken into account. @DEEC SHIPPING BILL: This shipping bill is used for export of goods under Advance Authorisation (Duty exemption scheme).
DEPB Copy: For use in the import cell of customs for registration of licence. Mate Receipt @Mate’s receipt is a receipt issued by the Master or Mate of the vessel stating that certain goods have been received on board his vessel. This copy is the most important document for claiming duty Neutralisation/Exemption benefits plus export incentives wherever applicable.@ @ @ @ Exporter’s Copy: For record of Exporters/ Exporter may forward it to shipping company. . It is Proof of export for exchange purposes. Export Promotion Copy: For office of DGFT. @It is prima-facie evidence that the goods are loaded in the vessel. Exchange Control Copy: For negotiating the export documents in bank.
. from @On payment of Dock dues. Mate Receipt @Port authorities recover port dues exporter on production of this receipt. port of discharge and place of delivery. shipping bill number and date and condition of cargo at the time of its receipt on board the vessel. number and kind of packages. @It is serially numbered. port of loading.@It contains: the name of shipping line and vessel. description of goods. container status/seal number. the exporter or his agent collects the receipt from the Port-Trust authorities and hands over to shipping company for preparing Bill of Lading. marks and numbers. gross weight.
000) before any export of goods . are required to submit Export Declaration Forms to the Customs authorities (whenever the value of the shipment exceeds US $ 25. the date of Export is regarded as “the date of Mate Receipt or the date of Bill of Lading. the mate’s receipt date is also very important. Export (GR/SDF) Declaration Forms @As per the exchange regulations. whichever is later”. exporters. wishing to ship goods abroad.@Bill of Lading is prepared on the basis of Mate’s Receipt. @It is of a transferable nature. @Normally. @In case of ascertaining the exact date of shipment.
@It is to be filed by exporter stating that export proceeds would be realized within 180 days for non-status holder exporters and 360 days for status holder exporters. or will be. IEC code number and description of goods. difficulties may arise at the time of remittances of . Name and address of authorised dealer through whom the proceeds of the exports have been. Export (GR/SDF) Export (GR/SDF) Declaration Declaration Forms Forms @ These forms normally contain: @ @ @ Name and address of exporter. Otherwise. Details of commission due to foreign agent or buyer should be correctly declared.from India is made. realised.
If the shipment is on DA terms. discount. freight. normally maximum period allowed is 180 days.such commission/ payment. An exporter has to mention the period within which he will realise full export value of transaction. insurance. @ @ @ It should be clearly indicated whether the export is on “Outright Sale Basis” or “On Consignment Basis” An exporter is required to give analysis of full export value. Statutory Declaration Form [SDF] @ Procedure for Distribution / disposal of copies of SDF @The SDF form should be submitted in duplicate (to be annexed to the relative shipping bill) to the Commissioner of . However. commission. then an exporter has to bring forex within that period. etc. a break-up of FOB value. An exporter should note this point very carefully.
Statutory Declaration Form [SDF] @Banks should accept the Exchange Control (EC) copy of the shipping bill and form SDF appended thereto. @After verifying and authenticating the declaration in form SDF. one copy of the shipping bill marked ‘Exchange Control Copy’ in which form SDF has been appended for being submitted to the bank within 21 days from the date of export. the Commissioner of Customs will hand over to the exporter. submitted by the exporter for collection/negotiation of shipping documents.Customs concerned. .
@The manner of disposal of EC copy of Bill of Exchange shipping Bill (and form SDF appended thereto) is the same as that for GR forms. @It is also known as a draft. . @A bill of exchange is accompanied by commercial documents which are presented by a bank and released to the buyer either against payment (at sight) or against a signature for payment on a specified future date. @Bill of Exchange [BE] is a document drawn and is an order by the exporter to the buyer to pay the money in specified exchange.
Bill of Exchange @When a BE is drawn on foreign firm it is termed as a foreign draft or bill of exchange. the bill is known by the name of currency in which it is drawn. Bill of Exchange @ The most common versions of a bill of .@It is an unconditional written order. it is termed as “Rupees Bill”.g. @It is prepared either in an international currency or Indian rupees depending on the terms of the contract. @Accordingly. a bill drawn in US dollars is known as a “Dollar Bill” and when drawn in Rupees. e.
the Negotiating/ Collecting Bank does not hand over the Shipping documents and the buyer cannot take delivery of goods. @It may be a fixed future (specific) date . @Unless and until the Draft is received.exchange are: A) Sight Draft – @When the drawer (exporter) expects the drawee (importer) to make payment immediately upon the draft being presented to him. Bill of Exchange B) Usance Draft – @When draft is drawn for payment at a date later than the date of presentation.
ii. @ Parties to a bill of exchange i. Drawer – who makes the order for making payment.or determinable date according to the period of credit viz. Drawee – whom the order to pay is made. 60 days or 90 days etc. Bill of Exchange @When the payment is received in advance no Bill of Exchange is required to be drawn. . @It is presented to the drawee (importer) who will retire the documents by accepting the draft by putting his signature and date. 30 days. iii. Payee – whom the payment is to be made.
made @The parties to a bill must be certain.Bill of Exchange @ Features of a Bill of Exchange: @A bill must be in writing.000 on demand and oblige’ are not used. @The sum payable mentioned must be certain or certain. Words @The order must be unconditional. @It must contain an order to pay. accepted by its drawee and properly stamped. Bank Realisation Certificate @Once the export proceeds are realised. . capable of being like ‘please pay US $ 5. duly signed by its drawer.
the exporter has to prepare Bank Certificate of Export and Realisation for the purpose of claiming export benefits, incentives, etc.
@It is prepared as per Form No.1, given in
Appendix 22A of Handbook of procedures 2004-09 (Vol. I).
@To prepare this certificate, the date of
realisation is most essential, as the exporters have to apply for the export benefits, incentives, etc. within six months following the month/quarter of the realization month.
Bank Realisation Certificate
@It is signed by the authorized signatory
of the firm/company with full name in block letters with designation, full official and residential addresses.
attest this certificate as true and correct after verifying the particulars, including the date of mate receipt. This date is the most important, as this is the actual date of export.
Bank Realisation Certificate
@It is signed by an authorized signatory of
the bank with his name and designation.
affix certificate number and date and also mention the Authorized Foreign Exchange Dealer's Code number allotted to Bank by Reserve bank of India.
@For this purpose, this certificate must be
accompanied documents:with the following
@A copy of invoice, @A copy of customs attested export promotion
copy of the shipping bill,
@A copy of Bill of Lading/ PP receipt/ Airway
@A copy of the insurance certificate/Insurance
Bill of Lading (B/L)
@Bill of Lading is the transport document
associated with Sea freight.
@It is issued by the Shipping Company or
its agent or master of a ship acknowledging that specified goods have been received on board as cargo for conveyance to a named place for delivery to the consignee who is
@It is a document of title to the goods
and, as such, is freely transferable by endorsement and delivery.
Bill of Lading (B/L)
@Bill of Lading serves three purposes as: @Receipt given by Shipping Company as goods
described on document has been received by it/carrier.
@Evidence of the contract of carriage by sea
between the shipping company and the shipper (exporter or importer).
@Document of title to the goods and can be
used to obtain payment or a written promise before the merchandise is released to the importer.
@For the bill of lading to be negotiable it
1. 2. 3. made out to the order to the shipper. signed by the steamship company. endorsed in blank by the shipper.
Bill of Lading (B/L)
@It is the only evidence to file a claim
against the shipping company in the event of non-delivery, defective delivery or short-delivery of the cargo at the destination.
preparation of B/L the exporter should submit the complete set of B/L together with mate receipt to the shipping company which will calculate the freight amount on the basis of measurement or weight. payment of freight, the shipping
company returns the B/L duly signed and supported by requisite adhesive stamps.
Bill of Lading (B/L)
@Generally made out in the sets of two or
three originals duly signed by the master of the ship or the agent of the steamship company. the originals are equally valid for taking the delivery of the goods. Once one original is utilised the other originals become null and void.
@Marked as ‘Non-negotiable copy’ cannot
be utilised for taking the delivery of goods.
Bill of Lading (B/L)
of Lading information:
Freight details . Gross weight and net weight. Shipped on board with date-rubber stamp.@ @ @ @ @ @ @ @ @ @ @ Shipping company’s name and address. weights Description of the goods Number of packages. Consignee’s name and address. Cubic Shipping marks measurements. Notify party Name of the vessel. Port of loading/Shipment and port of discharge. and Numbers.
@ @ @ @ @ @ Signature of the shipping company’s agent. B/L Number and Date Originals Terms (on reverse) Bill of Lading (B/L) @ Bill of Lading can be further described as under:- @Shipped on Board :. Container number if any.When goods are actually shipped on board. . Shipper’s name and address.
When two or more carriers/ Bill of Lading (B/L) different modes of transport form i.@Received for shipment :.i. @Transhipment B/L:. rail. @Clean B/L:. @Stale B/L:.Where the carrier has noted that the goods have been received or loaded in . @Through B/L:. and sea employed to reach goods to their final destination.When there is no direct service between the two ports and shipowner is prepared to tranship the goods at an intermediate port.e. road. air.e.When goods have been handed over to agent for shipment. a late B/L that has been held too long before it is passed on to a bank for negotiation or to the consignee.
Bill of Lading (B/L) @Charter Party B/L:. usually issued when goods stuffed at shipper’s premises and delivered at consignee’s premises.Which contains additional clauses/notations limiting the responsibility of the shipping company which specify deficient condition(s) of the goods and/or packaging. It is issued by the carrier or its agent in the charter shipping. etc.).When different modes of transport are used.‘apparent good condition’ damage. Unless otherwise authorized in the letter of credit (L/C). loss. .Where a shipper has contracted with a shipping line to charter a vessel for the movement of cargo. @Combined Transport B/L:. (no apparent Bill of Lading (B/L) @Claused B/L:. the charter party B/L is not acceptable in the L/C negotiation.
the B/L is marked. @Freight Collect B/L:. the B/L is marked. freight collect.When freight is paid at the time of shipment or in advance.When the freight is not paid and is to be collected from the consignee on the arrival of the goods. Bill of Lading (B/L) @Negotiable B/L:. Airway Bill (AWB) . Thus. sold.@Freight Paid B/L:.It is a title document to the goods. or traded while goods are in transit and is commonly used for letter of credit transactions. freight paid. usually the shipper. issued “to the order of” a party. a shipper's order (negotiable) B/L can be bought. whose endorsement is required to effect it’s negotiation.
the AWB is non-negotiable. but it is not a document of title to the goods. Hence. @It serves as a receipt for goods and an evidence of the contract of carriage. . @It contains the following details: @number of packages @dimensions or volume @gross weight @shipping marks @The goods in the air consignment are consigned directly to the consignee.@Airway Bill is a transport document associated with Airfreight.
Bill of Entry . @ Airway bill can be comprised in two parts: @MAWB (Master Airway bill) – shipments sent on a direct basis.Airway Bill (AWB) @On the reverse side of the airway bill are the airline’s terms and conditions of carriage whereby an airline is obligated to transport a consignment to its final destination once it has confirmed receipt of the shipper’s consignment. not consolidated. @HAWB (House Airway bill) – shipments sent on a consolidation basis whereby grouping together various clients consignments under one MAWB being issued by the freight forwarder.
1962. Duplicate copy is given to importer.@ The document on the strength of which clearance of imported goods can be affected is known as Bill Entry. the form of which has been standardized by the Central Board of Excise and Customs. @ Under EDI system. @ Every importer has to submit it under section 46 of the Customs Act. Bill of Entry @ Salient features of a Bill of Entry which is to be presented for clearance of goods for home consumption are mentioned below: . Bill of Entry is actually printed on computer in triplicate only after ‘out of charge’ order is given.
two types are for clearance from customs while third is for clearance from warehouse. Bill of Entry @BILL OF ENTRY FOR HOME CONSUMPTION When the imported goods are to be cleared on payment of full duty.@Origin & Vessels Particulars @Particulars of the Goods @Value @Duties Leviable @Code @Declaration of Importers/Clearing Agents @Types of Bill of Entry – There are three types. Out of these. Home consumption means .
It is also called ‘Into Bond Bill of Entry’ as bond is executed for transfer of goods in warehouse without payment of duty. Bill of Entry @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. .use within India. @BILL OF ENTRY FOR EX-BOND CLEARANCE It is used for clearance from the warehouse on payment of duty.If the imported goods are not required immediately. 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 . This will enable him to defer payment of customs duty till goods are actually required by him.
Packing List. Certificate of Origin etc. Letter of Credit / Bank Draft wherever necessary Insurance Policy. GATT declaration form duly filled in .@Documents presented to customs along with the Bill of Entry generally include: @ @ @ @ @ @ @ @ Invoice. Import Licence(s) / Customs Clearance Permit. Bill of Lading or Delivery Order.
For example. @Filing of Shipping Bill electronically requires correct entries including HS code for the product. . declaration on ARE1 forms. @Shipping bills must be filed according to the scheme the exporter wants to avail . For example. Many times. For example. small mistakes are extremely difficult to correct later on. DEPB /DFIA/Drawback etc. @Extra care should be taken when combination of schemes is intended to be used.@ Importers / CHAs declaration duly signed Tips for Documentation Proper @Implications of all Regulatory documents must be studied carefully.
Many times documents do not match with each other. excise and DGFT is extremely important. description. documentary compliances are insisted upon by all the .DEEC – Drawback. declaration etc. Tips for Documentation Proper @Each regulatory document is important from the point of view of claiming various benefits associated with exports. weight. @Co-relation between customs. quantity. @Maintenance of statutory records: Since most of the schemes are in the nature of the exemption / remission of the duty. Each document therefore should be carefully looked into as to correctness of the contents. currency. which results in delay or denying of some benefit under one or the other scheme.
Appendix 23 – Consumption register. INCOTERMS 2000 INCOTERMS 2000 @ INTRODUCTION In their sales contract buyer and seller agree on the conditions of sale : payment on the one hand and delivery on the other. These terms determine at what precise location the ownership of the goods is transferred from seller to buyer and when/how payment will be done.government departments. In international trade a universal set of rules on delivery has been developed over the years. @ . For example. It is called INCOTEMRS.
This named place can be factory/godown or manufacturing unit. these are: @ EXW = EX WORKS (… named place) Cost of Goods plus cost of Export packing and marking In this term the seller delivers the goods by keeping it ready in deliverable state at the seller's place or another named place. Principally.INCOTERMS 2000 @ The Incoterms divide costs and risks INCOTERMS 2000 INCOTERMS 2000 The Incoterms of trade have been designed to clarify obligations of both parties. @ FCA = FREE CARRIER (… named place) Cost of Goods plus cost of Getting goods to railway station or truck for transportation to port . In this term seller does not clear the goods for exports nor goods are loaded on vehicle. the buyer and the seller.
cleared for export. In this term the place of delivery is very important. the seller is not responsible for unloading. This term can be used for all modes of transport as well as multimodal. If the delivery is at sellers place's then he is responsible for loading. This term can be used only for inland waterway transport or shipment by sea. It is not used . If the delivery occurred at any other place. The buyer has to bear all risks of loss or damage to the goods and all costs from this point of time. to the carrier appointed by the buyer at the named place. However the seller must clear the goods for the purpose of export. INCOTERMS 2000 @ FAS = FREE ALONGSIDE SHIP (…named port of shipment) Cost of Goods plus cost of Transport to port and getting goods alongside ship In this term when the goods are placed alongside the vessel at the named port of shipment it will be considered that the seller has completed the delivery.This term refers to seller's responsibility to deliver the goods.
INCOTERMS 2000 @ FOB = FREE ON BOARD (… named port of shipment) Cost of Goods plus cost of Getting goods on board and preparing shipping documents This is the most popular term and is widely in use.when it is air shipment. INCOTERMS 2000 @ CFR = COST AND FREIGHT (… named port of destination) . This term is used only for sea or inland waterway transport. Under this term the buyer has to bear all costs and risk of loss of damage to the goods from that point. FOB means that the seller delivers when the goods pass the ship's rail at the named port of shipment. This term requires the seller to clear the goods for exports. It is not suitable for shipment by air.
Cost of Goods plus cost of Freight cost (port to port) Earlier this term was popularly known as C&F or CNF. CFR means the seller must pay the cost and the freight necessary for the goods to reach at the named destination. Compared to the previous term. the risks of loss or damage to the goods after the time of the delivery is on buyers account. However. INCOTERMS 2000 @ CIF = COST INSURANCE AND FREIGHT (… named port of destination) Cost of Goods plus cost of Marine Insurance “Cost. Insurance and Freight” means that the seller. The seller is required to clear the goods for exports. CFR the seller contracts for the . delivers when the goods pass the ship’s rail in the port of shipment. The CIF price refers that it covers the cost of the goods. This term can be used only for sea and inland waterway transport. freight necessary to bring the goods to the named port of destination and also marine insurance.
In this term the seller must clear the goods for exports and the buyer must arrange necessary clearance for import.insurance and pay the insurance premium. This term is used for all modes of transport including multimodal transport. @ CIP = CARRIAGE AND INSURANCE PAID TO (… . This term can be used only for sea and inland water transport. This refers to the fact that all the risks and any other cost occurring after the goods have been delivered will be on buyer’s account. If the buyer wishes to have more protection then he should make his own insurance arrangement extra or should specify to the seller at the time of contract. It will be essential for the buyer to know that under the CIF term the seller is required to obtain the insurance only on minimum cover. INCOTERMS 2000 @ CPT = CARRIAGE PAID TO (… named place destination) “Carriage Paid To” means the seller delivers the goods to the carrier nominated by him but the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination.
in CIP the seller also has to procure insurance against the buyer's risk of loss of or damage to the goods during the carriage. cleared for exports but not cleared for import at the named point and place at the frontier. This means that the buyer bears all risks and any additional costs occurring after the goods have been so delivered. "Delivered At Frontier" means the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport not unloaded. irrespective of the mode of transport. INCOTERMS 2000 @ DAF = DELIVERD AT FRONTIER (… named place) This term is used when goods are to be delivered at land frontier. but the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination. However. but before the customs border of the adjoining country.named place of destination) “Carriage and Insurance Paid To” means that the seller delivers the goods to the carrier nominated by him. @ DES = DELIVERD EX SHIP .
In this term all the cost and risk in bringing the goods to the named port of destination before discharge is on seller. import on the quay (wharf) at the named port of destination.INCOTERMS 2000 Cost of Goods plus cost of Putting goods at disposal of customer on board vessel at port of destination “Delivered Ex Ship” means that the seller delivers when goods are place at the disposal of the buyer on board ship not cleared for import at the named port of destination. The DEQ term requires the buyer to clear the goods for import . The seller has to bear costs and risks involved in bringing the goods to the named port of destination and discharging the goods on the quay (wharf). @ DEQ = DELIVERED EX QUAY (… named port of destination) Cost of Goods plus cost of Unloading charges at port of destination “Delivered Ex Quay” means that the seller delivers when the goods are placed at the disposal of the buyer not cleared for. This term can be used only when the shipment is by sea or inland waterway or multimodal transport in the vessel at the port of destination.
not cleared for import. and not unloaded from any arriving means of transport at the named place of destination. INCOTERMS 2000 @ DDU = DELIVERED DUTY UNPAID “Delivered Duty Unpaid” means that the seller delivers the goods to the buyer. INCOTERMS 2000 @ DDP = DELIVERED DUTY PAID (…named place of destination) Cost of Goods plus cost of Payment of duties and transport to customer “Delivered Duty Paid" means that the seller delivers the goods to the buyer. taxes and other charges upon import. Such duty has to be borne by the buyer as well as any costs and risks caused by his failure to clear the goods for import in time. cleared for .and to pay for all formalities. duties. The seller has to bear the costs and risks involved in bringing the goods thereto other than where applicable any duty for import in the country of destination.
) Agra. India. where applicable.g. to the customer? How (*) is your quotation affected by the terms of delivery? (*) In this calculation example. The seller has to bear all the costs and risks involved in bringing the goods thereto including. all costs are . INCOTERMS 2000 @ Incoterms 2000 – an example A customer in Hanover.import. to be delivered DDP at his warehouse. and not unloaded from any arriving means of transport at the named place of destination. You have decided on a unit selling price of $2. giving a total nominal price of $ 6000 for the goods when sold domestically. What are the additional costs of getting the goods from your factory in (e. asks for a quotation for 3000 pairs of shoes. any duty for import in the country of destination. For export you will have to calculate with an additional set of costs which are involved in making them physically available to your customer. Germany.
hypothetical. INCOTERMS 2000 @ Incoterms 2000 – an example INCOTERMS 2000 @ Incoterms 2000 – an example INCOTERMS 2000 @ Incoterms 2000 – an example INCOTERMS 2000 @ Incoterms 2000 – an example Terms of Payment Terms of Payment .
@ Types of International Trade Settlement: @Advance Payment @Open account @Bills on collection basis @Documents against Acceptance @Documentary Credits (Letters of credit) @Standby letter of Credit Advance Payment .
@If it is the ‘seller’s market’ and if the seller has monopoly in certain items.@Seller may insist for advance payment : @ @ When he is not confident on the buyer’s financial position When the buyer’s Country is not stable. @Under this method seller is able to secure his commercial risk on the buyer by receiving the advance payment for his supply. @While agreeing for advance payment buyer is exposed to a risk on the seller and his capacity to supply the materials. seller can insist for . @In a competitive ‘buyer’s market’ seller may not be able to receive advance payment.
@Under this method. @This type of trading requires a high degree of trust between buyer and seller and this method is more advantageous to the buyer. @This method is also known as consignment . the goods are with the buyer on trust and the buyer is expected to pay the seller on the due date.advance payment. @Seller is exposed to a high degree of risk since the goods are under the control of the buyer. Open account @It is an arrangement between the buyer and the seller that seller delivers the goods to the buyer directly or to his order and the buyer agrees to pay on an agreed date.
It @If the payment is not received documents are returned to the seller. buyer’s bank collects the payment and remits to the seller’s bank. Documents against payment @It is an arrangement by which the seller after shipping the goods submits the documents to his bank with a request for collecting the payment from the buyer. the . acts as agent for collection. @Documents are presented to the buyer and if the buyer makes payment. @Under this method seller’s bank does not undertake any responsibility for payment. which in turn will transfer the payment to the seller.sale or on account sales. @Seller’s bank forwards the document to the buyer’s bank with a request to collect the payment from the buyer against the documents.
@Buyer . seller has to recall the documents or direct it to a new buyer. accepts his payment liability by signing on the bill of exchange and collects all the original documents. of exchange is drawn on the buyer demanding payment on the due date. Documents acceptance against @Under this arrangement all the commercial documents are forwarded by the seller’s bank to the buyer’s bank. If the payment is not forthcoming.@Payment risk is with the seller. @Seller’s @Bill bank specifically instructs the buyer’s bank to deliver all the commercial documents to the buyer only on acceptance of the payment liability by the buyer on the bill of exchange.
that is irrevocable and . @Buyer goes to the bank on the due date and pays the dues with or without interest as per the arrangement. however name and described.@With the original shipping document he is able to take delivery of the consignment. @As per the UCPDC 600 definition of LC is given as under “Credit” means any arrangement. Letters of Credit @ What is Letter of Credit [LC]? @Under letter of credit mechanism the Bank lends its name to the buyer’s reputation by undertaking on buyer's behalf that it will pay the seller provided seller presents its claim/documents strictly in terms of the undertaking given by the Bank on behalf of buyer.
thereby constitutes a definite undertaking of the issuing bank to honour a complying presentation. @To incur a deferred payment undertaking and pay at maturity if the credit is available by deferred payment. @Presentation means either the delivery of . Letters of Credit @ What is Letter of Credit [LC]? @ Honour means: @To pay at sight if the credit is available by sight payment. @To accept a bill of exchange (‘draft’) drawn by the beneficiary and pay at maturity if the credit is available by acceptance.
provided all the terms and conditions stipulated in the LC are complied with. @A bank is substituted for the buyer as the source of payment for goods or services exported. Letters of Credit @ Why an exporter should insist on LC as a payment term? @LC open doors to international trade by providing a secure mechanism for payment upon fulfillment of contractual obligations. @The issuing bank undertakes to make payment. Letters of Credit .documents under a credit to the issuing bank or nominated Bank or the documents so delivered.
such as preshipment finance secured by a LC and/or discounting of accepted drafts drawn under LC. @Payment Letters of Credit for the goods shipped can be remitted to your own bank or a bank of your choice. expertise is made available to help complete trade transactions successfully.@ Why an exporter should insist on LC as a payment term? @Financing @Bank opportunities. are available in many countries. @ How it is beneficial to the importer? @Payment will only be made to the seller when .
@Cash resources are not tied up.which advises the LC . Letters of Credit @ Who are the parties to the LC? @Applicant/Buyer . @The importer can control the shipping dates for the goods being purchased.the terms and conditions of the letter of credit are complied with.which opens/establishes the LC @Advising Bank .in whose favour the LC is @Opening Bank .on whose behalf opened [importer] opened [exporter] LC is @Beneficiary/Seller .
if any.which normally maintains Letters of Credit nostro account of the opening reimburses the negotiating bank. the confirming bank. bank and @ Types of LC: @ Irrevocable LC: @Cannot be amended or cancelled without the consent of the issuing bank.@Confirming Bank . and the beneficiary.which confirms the LC @Negotiating Bank . @ Confirmed Credit: @When a confirming bank has added its confirmation by way of an additional .normally beneficiary's bank @Reimbursing Bank .
. @The Beneficiary in such credit has the right to request the nominated bank to transfer the credit in full or parts in favour of one or more second beneficiaries if partial shipment is permitted. @ Types of LC: @ Unconfirmed credit: An unconfirmed LC is one to which the bank does not add its confirmation. @ Transferable credit: @A LC is transferable only if the Issuing Bank expressly designates it. and thereby. does not accept liability to make payment under the LC. All credits need not be confirmed credits.Letters of Credit undertaking to make payment at the specific request of the Issuing Bank. it becomes a confirmed credit.
the exporter who has received a letter of credit for export. @The second set of Credit opened by a bank at the request of the exporter is known as back-to-back credit. .Letters of Credit @ Types of LC: @ Back-to-Back Credit: @In case if the exporter is not the actual manufacturer and he gets his work done by the sub-suppliers and if the sub-suppliers demands LC in their favour. @The beneficiary of the original letter of credit will become the applicant for the second set of credit. approaches his banker to establish second set of letters of credit on the basis of the export letter of credit received by him.
Letters of Credit .Letters of Credit @ Types of LC: @ Revolving Credit: @In a Revolving Credit the amount of drawing is re-instated and made available to the beneficiary again unto the agreed period of time on notification of payment by the applicant or merely on submission of documents. @The re-instatement clause and the maximum amount of drawings under the credit should always be incorporated in Revolving credit. @The maximum value and period unto that the Credit can be revolved will be specified in the Revolving Credit.
It can be treated as a guarantee for payment only in case the buyer fails to pay. Usually a part is paid in advance and the balance is payable in agreed installments in terms of conditions of the LC. @Standby credits are useful not only in trade .@ Types of LC: @ Deferred Payment Credits and Acceptance Credits: Under Deferred Payment Credit the amount is payable in installments for a stipulated longer period. Letters of Credit @ STANDBY LETTER OF CREDIT: @Standby credit is payable only on default of the buyer. @Undertaking of the bank will specifically commit payment only in case of the default of the buyer.
The seller wants a letter of credit to guarantee payment.related transactions but in any of transactions where there is a possibility of default like loan repayment. The correspondent bank is usually located in the same geographical location as the seller (beneficiary). Procedure . @Buyer applies to his bank for a letter of credit in favor of the seller. Procedure @Buyer and seller agree to conduct business. @Buyer's bank approves the credit risk of the buyer. issues and forwards the credit to its correspondent bank (advising or confirming).
Documentary requirements may vary greatly depending on the perceived risk involved in dealing with a particular company. @Advising Procedure or confirming bank examines the documents for compliance with the terms and conditions of the letter of credit. @Seller presents the required documents to the advising or confirming bank to be processed for payment. then verifies and develops the documentary requirements to support the letter of credit.@Advising bank will authenticate the credit and forward the (beneficiary). the advising or . original credit to the seller @Seller (beneficiary) ships the goods. @If the documents are correct.
@Advising or confirming bank will forward the documents to the issuing bank. the issuing bank will debit the buyer's account. after receiving the documents. @Issuing bank then forwards the documents to the buyer. Waiting until the issuing bank remits.confirming bank will claim the funds by: @ @ @ Debiting the account of the issuing bank. Reimburse on another bank as required in the credit. @Issuing bank will examine the documents for compliance. Important Exporter Tips to the . If they are in order.
the credit professional should review all items carefully to insure that what is expected of the seller is fully understood and that he can comply with all the terms and conditions. Important Exporter Tips to the . with your customers in detail before they apply for letters of credit. @Consider whether a confirmed letter of credit is @Ask for a copy of the application to be fax to you. so you can check for terms or conditions that may cause you problems in compliance.@Upon receipt of the letter of credit. @Communicate needed. the buyer should be requested to amend the credit. When compliance is in question.
@After dispatch of the goods. @Many presentations of documents run into problems with time-limits. You must be aware of at least three time constraints . make reasonable allowance for the time this may take to complete. Import Procedure Customs Duty .the expiration date of the credit. check that all its terms and conditions can be complied with within the prescribed time limits. the latest shipping date and the maximum time allowed between dispatch and presentation. @If the letter of credit calls for documents supplied by third parties.@Upon first advice of the letter of credit. check all the documents both against the terms of the credit and against each other for internal consistency.
1996 @RE-EXPORT OF IMPORTED GOODS (DRAWBACK OF CUSTOMS DUTIES) RULES. 1995 .Calculation List of Customs Rules and Regulations List of main Acts. 1975 @COMPUTERS (ADDITIONAL DUTY) RULES. 1962 @CUSTOMS TARIFF ACT. Rules and Regulations under Customs @CUSTOMS ACT. 2004 @CUSTOMS (IMPORT OF GOODS AT CONCESSIONAL RATE OF DUTY FOR MANUFACTURE OF EXCISABLE GOODS) RULES.
1963 DUTY ASSESSMENT) AND CENTRAL DRAWBACK RULES.@CUSTOMS @CUSTOMS @CEGAT (PROVISIONAL REGULATIONS. 1995 @UNCLEARED GOODS REGULATIONS. 1976 @BILL OF ENTRY (ELECTRONIC DECLARATION) REGULATIONS. 1998 . 1995 EXCISE DUTIES (COUNTERVAILING DUTY AND ANTIDUMPING DUTY) PROCEDURE RULES. Rules and Regulations under Customs @COURIER IMPORTS AND EXPORTS (CLEARANCE) REGULATIONS. 1996 @BILL OF ENTRY (FORMS) REGULATIONS. 1972 (BILL OF ENTRY) List of main Acts.
1999 .@CUSTOMS @CUSTOMS @CUSTOMS HOUSE REGULATIONS. 2004 REFUND REGULATIONS. @CUSTOMS (SETTLEMENT OF CASES) RULES. 1995 AGENTS LICENSING APPLICATION (FORM) VALUATION (DETERMINATION PRICE OF IMPORTED GOODS) RULES. 1988 OF @BAGGAGE RULES.1986 @CUSTOMS (ADVANCE RULINGS) RULES. 2002 @IMPORT MANIFEST (AIRCRAFT) REGULATIONS. 1976 @IMPORT 1971 MANIFEST (VESSELS) REGULATIONS. 1998 @PROJECT IMPORTS REGULATIONS.
Import Clearance Procedure Import General Manifest @ Import General Manifest-Important Document @To get an entry inward the Master of the Vessel or his agent is required to submit to the proper officer in the Custom House a document called ‘Import General Manifest’ or ‘Import Manifest’ in a prescribed form. marks and numbers. @The manifest is nothing more than a list of all goods carried on board including those meant for other ports in India or abroad with all details like number of packages. no import goods can be unloaded at any Customs Station unless they are mentioned in the aforesaid import manifest for being . description of the goods and the importer’s name. Except with the permission of the proper officer.
unloaded at that Customs Station. Import Procedure – EDI Import Procedure – EDI Import Procedure – EDI Import Procedure – EDI Import Procedure – EDI @ Examination of Goods: @In case the importer does not have complete information with him at the time of import. . This is called Second Appraisement. This is called First Appraisement. he may request for examination of the goods before assessing the duty liability. @The goods are examined subsequent to assessment and payment of duty.
Import Procedure – EDI . as the case may be. need to be presented at the counter for registration for examination in the import shed.@Examination basis. @A declaration for correctness of entries and genuineness of the original documents needs to be made at this stage. the bill of entry. @After registration. the B/E is passed on to the shed Appraiser for examination of the goods. is normally done on random Import Procedure – EDI @ Examination of Goods @Under the EDI system. after assessment by the group or first appraisement.
One copy of the order is attached to the Customs copy of B/E and retained by the Shed Appraiser. after the Appraiser signs them. After completing examination of the goods. @While filing of Bill of Entry. one must always . the CHA is to present all the necessary documents. The two copies each of B/E and the order are to be returned to the CHA/Importer. @ @ Thereupon. the system prints Bill of Entry and order of clearance (in triplicate).@ Examination of Goods: @ Along-with the B/E. order of clearance number and name of Shed Appraiser. the Shed Appraiser enters the report in System and transfers first appraisement B/E to the group and gives 'out of charge' in case of already assessed B/E. Checklist All these copies carry the examination report.
& Date @Customs Notifications No.comply with following details: @HS Code – proper classification @Declarations @Valuation as per CUSTOMS (DETERMINATION OF GOODS) RULES. . 1988 PRICE VALUATION OF IMPORTED @Authorisation No. & Date @Container No. & Date @Rate of Duty and Duty calculations @Foreign Exchange Rate @Country of Origin @IGM No.
Export Clearance Procedure .
Check Sheets @While filing of Shipping bill one must always comply following details: @HS Code – proper classification @Declarations @Licence No. & Date @Customs Notifications No. & Date @Terms of Payment @Foreign Exchange Rate @Country of Origin .
AEZs can apply for Star Export House Certificate. @Merchant. Service @The Provider. EOUs. . STPs. Manufacturer. applicant has to make application depending on his total FOB/FOR export performance during the current plus the previous three years (taken together) upon exceeding limit [given in the table at right]. EHTPs. SEZs. BTPs.Various Export Promotion Schemes Export and Trading Houses Export House @Export Performance based Scheme.
e. Remittance / Receipts.” The criteria is Export House @A Status Holder shall be eligible for the following facilities: @Authorisation and Customs clearances for both imports and exports on self-declaration basis..@For Export House (EH) Status. would be received through banking channels. Current plus previous three years). . however. @Fixation of Input-Output norms on priority within 60 days. export Performance is necessary in at least two out of four years (i. @Exemption from compulsory negotiation of documents through banks.
Export House @Enhancement @Exemption Schemes in normal repatriation period from 180 days to 360 days. as per DoR guidelines. from furnishing of BG in under FTP.@100% retention of foreign exchange in EEFC account. and @SEHs and above shall be permitted to establish Export Warehouses. @ Maintenance of Accounts: @True and proper account of exports and imports are to be maintained during the .
@Export of countries.5% of the FOB value of @List of Countries eligible for benefit under this scheme is given in Appendix 37C of HBP Vol. . Focus Market Scheme [FMS] Focus Market Scheme [FMS] @Introduced in the Foreign Trade Policy 2006-2007 [Annual Updation]. exports.I. all products to the notified @Entitlement – 2.validity period and three years thereafter.
Duty Exemption/ Remission Scheme Duty Exemption Scheme @The Duty Exemption Scheme enables duty free import of inputs required for export production.@In the annual updation of the FTP. Exemption Scheme consists @Duty of: @Advance Authorisation Scheme @Duty Free Import Authorisation Scheme [DFIA] . 16 new countries have been notified.
Duty Exemption Scheme @The facility of Advance Authorisation entitles exporter to import required inputs for export production without payment of duty subject to export obligation to be completed within prescribed time. The Scheme has been operationalized by issue of Customs Ntfn No. Dtd. @The facility of newly introduced Duty Free Import Authorisation entitles exporter to avail the benefit of duty free import of inputs plus transferability after the exports have been completed.05. This scheme reduces burden of customs duties on the inputs and thereby facilitates cost-competitiveness. 40-Cus.2006. 01. Advance .
@Value addition: Positive Value Addition – Value addition is a concept where it is expected that the exports against Advance Authorisation should result in additional earning of foreign exchange.Authorisation Advance Authorisation @SION/Adhoc Norm: Ratio of input and output which permit allowable wastages – mainly related to production process. Advance Authorisation @ Exemption from payment of . @Wastage: Recoverable/Non-recoverable – effect of wastage in fixing of norms.
@Basic Customs Duty @Additional Customs Duty @Education Cess @Anti-dumping Duty if any @Safeguard Duty if any Advance Authorisation @Advance Authorisation can be issued either to a manufacturer exporter or merchant exporter tied to supporting manufacturer(s): i) for Physical exports (including exports to SEZ). and /or iii) for deemed exports iv) supply of ship stores on board of the foreign going vessel/aircraft subject to the condition that there is specific SION in . and/or ii) for Intermediate supplies.
@Subject to actual user condition Advance Authorisation @ Transferability: @Advance Authorisation @It and/or materials imported there under will be with actual user condition. . Advance Authorisation @ Export Obligation [EO]: @EO is imposed to Safeguard Revenue foregone by way of giving exemption.respect of the item(s) supplied. will not be transferable even after completion of export obligation.
Advance Authorisation @ Port of Registration: @To facilitate accounting of duty exempted. @Import is to be completed in 24 months.@Two limiting factors – Quantity and Value. . @Actual User Condition applied. @To be fulfilled in 24 months @Any shortfall is required to be regularized by paying applicable duty plus interest unutilised inputs and penalty if any. on @ Import Entitlement: @Limited by Quantity and Value.
@Exports can take place from any port.@Authorisation need to be registered at the specified port @The authorisation holder is permitted to import only through registered port unless permission [TRA] is taken from the Customs Authority. Advance Authorisation @ Enhancement or Reduction in the Authorisation Value: @The reason of @Enhancement – sudden increase in export order .19 of the HBP. @Port of registration is specified in Para 4.
@Reduction cancelled - Export order may get @Provision [EOP]: is made for reduction on pro-rata basis enhancement or @ Extension of Export Obligation Period @The period of fulfillment of export obligation under an Advance Authorisation will commence from the authorisation issue date. . Advance Authorisation @ Extension of Export Obligation Period [EOP]: @1st Extension for 6 months – subject to payment of composition fees of 2% of the duty saved on all the unutilized imported items as per authorisation.
@Once the export obligation is fulfilled in terms of value and quantity both.I (HBP) in support of having fulfilled the EO. . Advance Authorisation @ Revalidation: @Only one revalidation of 6 months is allowed @ Fulfillment of Export Obligation: @Export obligation is to be fulfilled by the Advance Authorisation Holder.@2nd Extension for 6 months – subject to payment of composition fees of 5% of the duty based on all unutilized imported items as per Authorisation. the licence holder needs to submit documents as per ANF 4F of Handbook of Procedures Vol.
@ Discharge of BG/LUT: Before discharging BG/LUT. Customs will verify all the details as given in Redemption Letter as per their records. . the Regional Authority will forward a copy of the redemption letter to the Customs Authority at the port of registration.Advance Authorisation @ Redemption: @In case the export obligation has been fulfilled. the Regional Authority will redeem the case. @in case of physical exports. Customs will verify details of supplies from the Central Excise Authority/Bond Officer. @in case of intermediate supplies and deemed exports. @After redemption.
Customs will discharge BG/LUT within 30 days of issuance of EODC/bond waiver by the Regional Authority. Advance Authorisation @ Penalty for Shortfall: Advance Authorisation @ Penalty for Shortfall: Advance Authorisation @ Penalty for Shortfall: Advance Authorisation @ Penalty for Shortfall: Indigenous Procurement .@After verification.
Indigenous Procurement . there comparative ease to inspect the cargo) is @Indigenous procurement is free of currency risk since payment can be made in Indian Rupees. @Possibility of inspecting the cargo (since the supplier is within the country.@Reasons for opting out in favour of indigenous procurement: @Shorter delivery time @Logistical advantages @Financial ease (local supplier may not insist on letter of credit) @The same material may be available at cheaper cost if the supplier is in a position to claim benefits available under deemed exports.
.@ Instruments: @Advance @Advance Exports] Authorisation Intermediate Supplies] [for Authorisation [for Deemed @Advance Release Order Maintenance of Proper Account CONSUMPTION REGISTER @Back-to-Back Letter of Credit @True and proper account of consumption and utilisation of duty free imported / domestically procured goods against each authorisation is to be maintained as prescribed in Appendix-23.
@Records is to be preserved for a period of atleast 3 years from the date of redemption. 08/2005 (RE) dtd. Ref: Public Notice No.@These records in Appendix 23 are mandatory to be submitted for authorisations issued on or after 13-05-2005.05.2005 Other Provisions @ Fixation of Norms: @Where SION for export product is not fixed. advance authorisation can be obtained on selfdeclaration basis. @The norms are fixed by Norms Committee [based on Chartered Engineer’s certificate] with or without modification. . 13.
@In case where Norms Committee has already Other Provisions ratified norms for same export and import products in respect of an Authorisation obtained under paragraph 4. the RA will issue Authorisation under ‘Ad hoc Norms fixed’ category.7. . @Standard industry. @ Standardisation of Norms: @Norms are fixed by Norms Committee and circulated to industry by way of public notice. norms are applicable to entire @Such norms are fixed normally when atleast three applications are received from different entities for the same export product.
@Such norms are fixed on an average wastage basis. the authorisation holder has to account for actual consumption. @Difference in Consumption more/less wastages. @The reasons for modifications are @Due to inclusion of inputs not available under SION. Other Provisions @ Modification of Norms: @Authorisation Holder can modify the existing SION. ratio – . @However.
@For this facility. Other Provisions @ Facility of Clubbing: @The facility of clubbing shall be available only for redemption/regularisation of the cases. in the @Where manufacturing is possible by using alternate inputs. .@Due to greater efficiency manufacturing process. authorisations are required to have been issued under similar Customs notification even pertaining to different financial years. @No further import or export is allowed.
intermediate supplies and / or deemed exports. whichever is higher. . Advance Authorisations of different customs notification can be clubbed. Advance Authorisation for Annual Requirement @Advance Authorisation can also be issued on the basis of annual requirement for physical exports.@However in case of authorisations issued in 2004-09 period. Advance Authorisation for Annual Requirement @The entitlement in terms of CIF value of imports under this scheme is upto 300% of the FOB value of physical export and / or FOR value of deemed export in the preceding licensing year or Rs 1 crore.
2004 .Advance Authorisation . 2004 . One revalidation for six months is granted. Corresponding Customs Notifications @91/2004-CUSTOMS @93/2004-CUSTOMS dated 10th September. @Extension of Export Obligation : Same as Advance Authorisation. @Validity : 24 months.Advance Authorisation for deemed export dated 10th September.@Advance Authorisation can be issued with a positive value addition.
@Import of duty free inputs subject to export obligation. @Minimum Value Addition required – 20% .Advance Authorisation for Annual Requirement Duty Free Import Authorisation Duty Free Authorisation Import @New instrument to replace DFRC scheme introduced in the Foreign Trade Policy 2006-2007 [Annual Updation]. 2004 .@94/2004-CUSTOMS dated 10th September.
@In case of local sales by excisable unit.@Material imported under the Authorisation and Authorisation itself is transferable once export obligation has been fulfilled and the case is redeemed by Customs Authority. @Such additional customs duty / excise duty would be reimbursed to exporter as drawback. . CENVAT credit would equal excise duty already paid. imports against authorisation or transfer of imported inputs shall be subject to payment of applicable additional customs duty / excise duty. Duty Free Authorisation Import @Once transferability is endorsed.
for inputs either imported or procured indigenously. Corresponding Notification Customs st @40/2006-CUSTOMS dated 1 May. 2006.@CENVAT credit facility shall be available @Corresponding Customs Notification 40/2006-CUSTOMS dated 1st May. Comparison between Advance Authorisation and DFIA Duty Remission Scheme Duty Remission Scheme @The Duty Remission Scheme enables post export replenishment/ remission of duty on . 2006.
therefore. @Duty Remission scheme consist of: (a) Duty Entitlement Passbook Scheme [DEPB]. per se. . (b ) Duty Drawback Scheme @Earlier DFRC Scheme is now discontinued Duty Remission Scheme DEPB is towards neutralization of basic customs duty on the inputs.inputs used in the export product. DEPB. DEPB is.05.e.2006. Both DEPB are transferable instruments and w. 01. more flexible in nature.f. is duty credit instrument and therefore allows import of any permissible input irrespective of the fact whether the same input has been utilized in the export product or not.
Duty Entitlement Passbook Scheme Duty Entitlement Passbook Scheme [DEPB] @Objective of DEPB is to neutralize incidence of customs duty on import content of export product. . of Special Additional Duty and customs duty on fuel shall also be allowed under DEPB (as a brand rate) in case of non-availment of CENVAT credit.hence they are equally easy to operate. @Component @Credit may be utilized for payment of Customs Duty on freely importable items.
@Transfer of DEPB shall however be for import at specified port.@The DEPB DEPB is valid for a period of 24 months. in case where supplies are made to SEZ Developer/SEZ units and payment received from Foreign currency account of SEZ Developer/SEZ unit. . which shall be the port from where exports have been made. @Additional customs duty / Excise Duty and Special Additional Duty paid in cash or through debit under DEPB may also be adjusted as CENVAT Credit or Duty Drawback as per DoR rules @The DTA supplier can claim DEPB. @DEPB and/or items imported against it are freely transferable.
Non-transferable DEPB will be issued. Once the export proceeds received. . the same DEPB shall be made transferable.DEPB @Transferable DEPB will be issued only @confirmed irrevocable letter of credit or @bill of exchange is unconditionally where the payment is received or shipment is made against Avalised/ Co-Accepted/ Guaranteed by a bank and the same is confirmed by the exporters bank and certified by the bank in the relevant Bank certificate of export and Realisation. @In DEPB other cases.
10.2005 and non-EDI Shipping bills will be verified by Customs before allowing import. in respect of shipments for which the claim have been filed. whichever is later. DEPB @ Customs Verification: @Shipping bills issued before 01.@Time period: The application for obtaining DEPB shall be filed @within a period of twelve months from the date of exports or @within @within six realization or months from the date of three months from the date of printing/ release of shipping bill. .
@In case of EDI shipping bills issued on or after 1-10-2005 from EDI ports which are being transmitted electronically by Customs to DGFT. the DEPBs issued shall be sent to Customs at the port of registration through an electronic message exchange system and the DEPB shall be registered at the port of registration electronically. the amount of credit against export product should not exceed 50% of the Present Market Value (PMV) and a declaration to this effect has to be given on the Shipping Bill at the time of making the shipment under DEPB scheme. . will be required before allowing imports against these DEPBs. @ Present Market Value: @If DEPB rate is 10% or more. @No verification of shipping bills against which DEPB such DEPBs have been issued.
the DEPB is given only upto a specified value. DEPB @ POSITIVE POINTS OF DEPB SCHEME . @Let us say.@The PMV consists of applicable excise duties. the value cap is Rs. 40/-as value cap restricts such entitlement at Rs. 30/kg. sales tax. he would not be entitled to claim DEPB on Rs. 40 FOB/kg. octroi. Even if exporter achieves a rate of Rs. 30/kg and the rate of DEPB is 10%. etc and therefore normally 30% more than FOB value of exports. DEPB @ Value Cap: @There is a system of value cap where irrespective of the value realized against per unit quantity of export product.
it is free of nexus with respect to item exported and item imported. acceptability of DEPB is higher compared to any other instrument. @DEPB offers flexibility because it can be utilized for debit of duty against any freely . @ POSITIVE POINTS OF DEPB SCHEME @It is also possible that an exporter of readymade garments gets his DEPB at a specified rate and sells it to another person who might import chemicals by using DEPB for debit of duty. Hence. @Since DEPB DEPB is not a licence but an instrument of duty credit.@The credit entitlement is expressed as a percentage of FOB value and therefore it represents the amount of duty credit available for debit in Rupee terms.
permissible item. DEPB @ NEGATIVE POINTS OF DEPB SCHEME @Since calculation of DEPB rate is not based on the actual customs duty lost. Corresponding Customs Notification @89/2005-CUSTOMS 2005 dated 4th October. @With increasing exports the amount of DEPB also goes up. To this extent. the customs have to forego actual duty receipts in cash. it may not be compatible with WTO rules. .
Drawback is not admissible in respect of duty paid on goods exported under claim of rebate of duty in terms of Rule 18 of Central Excise Rules. . and @Packing materials.Duty Drawback Duty Drawback @ Meaning & Scope “Duty Drawback” in relation to the export of indigenously manufactured goods. consumed in the production and export thereof and now also on goods processed or on which any operation has been carried out in India. @Component parts. means refund of duties paid on :- @Raw materials. 2002. These duties may be duties of Customs paid on imported materials and / or duties of Central Excise paid on indigenous materials.
1973 including any extension of such period.Duty Drawback @ No Drawback where value addition is Negative If the total foreign exchange spent on inputs used in the goods exported is more than the F. value of the exports. @ No Duty Drawback .B.O. them no drawback will be paid. Drawback if Sale proceeds not realised within Time Limit Newly inserted rule 16A of the Customs & Central Excise Duties (Drawback) Rules. 1995 has made a provision for recovery of amount of drawback where export proceeds are not realised within the period allowed under the Foreign Exchange Regulation Act.
1962. @ Types of Drawback Rate Determination . not Admissible if Cenvat @ Drawback Duty Drawback Availed of In case where exporters has availed CENVAT credit under Rule of Cenvat Credit Rules. they will not get benefit of duty drawback on Central Excise Allocation. it is discretionary with the Central Government to allow drawback on goods manufactured in India and exported outside India. Therefore. it cannot be said that it is mandatory for the Government to grant drawback on all goods manufactured in India for export out of India.@ Drawback not Mandatory Under Section 75 of the Customs Act. 2002.
This rate determination is known as Brand Rate . 1995 are known as “All industry Rates” of Drawback. such rates of Drawback which are determined in terms of Rule 3 of Drawback Rules.@ All Industry Rate of Drawback The one which is based upon determination of average incidence of duties suffered on inputs used in the manufacture of the product exported as manufactured generally. Duty Drawback @ Types of Drawback Rate Determination @ Brand Rate The second provision seeks to give relief of actual amount of duties suffered on the inputs (not rebated/ relieved otherwise) used in the manufacture of export product of specified description/ characteristics of a particular manufacturer.
. 14 dtd.fixation. 06.2003. Duty Drawback @ Types of Drawback Rate Determination @ Special Brand Rate Where any manufacturer/exporter finds that the All Industry Rate of Drawback fixed for any class of goods is less than 4/5th of the duties paid on the materials or components used in the production/manufacture of the goods he can make an application for fixation of an appropriate rate of duty drawback for his product of specified description/characteristic.03. Duty Drawback @ Procedure for fixation of Brand Rate A new procedure has been introduced for fixation of brand rate via CBEC Circular No.
12. 14.2003 @97-CBaEC dtd.11.09. 2007. 68/2007-Cus. @ As per Sr. the new rates announced will come into force on 18th day of July. 18.2003 New Duty Rates Drawback @The New Drawback Rates have been notified vide Notification No. 4 of this Notification. 16.10.2003 @89-CBEC dtd. (NT) DTD.Further amendments have been made to this circular via the following circulars: @83-CBEC dtd.07.2007.2003 @108-CBEC dtd. 17. No. 06. .
4]. No.e.@The rates which would be made applicable retrospectively w. Export Promotion Capital Goods Scheme Export Promotion Schemes [EPCG] Capital Goods @This scheme allows import of capital goods and spares at concessional rate of duty [@3% of Customs Duty] coupled with export obligation equivalent to 8 times the duty saved amount to be completed in 8 . List of these entries is provided in the above Notification [Sr.f. 01.04.2007 are only for specified entries and not for every single entry covered in the Notification.
EPCG @In case CVD is paid in cash on imports under EPCG. @jigs. (including refurbished/reconditioned spares). the incidence of CVD would not be taken for computation of net duty saved provided the same is not Cenvated. EPCG @ Imports under EPCG: @The capital goods.years. including @spares @tools. .
spare refractories and catalyst for existing plant and machinery (imported earlier. under EPCG or otherwise) is allowed to be imported subject to an export obligation equivalent to 8 times of duty saved to be fulfilled in 8 years reckoned from Authorisation issue date. EPCG @ Imports under EPCG: @ Import of Spares: Spares (including refurbished / reconditioned spares).@fixtures. @dies and moulds. tools. @Second hand capital goods without any restriction on age may also be imported under the EPCG scheme. EPCG .
@ Imports under EPCG: @Import of spares: @The application shall contain list of plant/ machinery installed in the factory/ premises of applicant. duly certified by Chartered Engineer or Jurisdictional Central Excise Authorities. @Description EPCG of product to be exported with value of export obligation as per the Policy. @EPCG Authorisation must indicate the following: @Name of plant/machinery for which spares are required. @Value of duty saved allowed under the Authorisation. .
22/2007 (RE) DTD. EPCG @ Eligibility: The scheme covers manufacturer exporters . spare refractories and catalysts in the installed capital goods on the basis of stock & consumption register maintained by Authorisation holder.@ Imports under EPCG: @Import of spares: @The installation certificate shall be submitted by the importer within a period of three years from the date of import.07. tools. @At the time of final redemption of export obligation Authorisation holder will have to submit certificate from the Independent Chartered Engineer confirming the use of spares.2007]. [provision inserted vide PN NO.17.
merchant exporters tied to supporting manufacturer(s) and service providers. @ Conditions for import of Capital Goods: Import of capital goods is subject to Actual User condition till the export obligation is completed. the remaining export obligation is condoned and the Authorisation redeemed by the .with or without supporting manufacturer(s)/ vendor(s). EPCG @Incentives for Fast Track Companies: In cases where the Authorisation holder has fulfilled 75% or more of the export obligation under the Scheme (including average level of exports) in half or less than half the original export obligation period specified in the Authorisation.
@The domestic sourcing from EOU unit is also permitted. and @Advance @Refund of terminal excise duty. EPCG @ Indigenous Sourcing of Capital Goods @A person holding an EPCG Authorisation may source the capital goods from a domestic manufacturer instead of importing them. Such supply by EOU will be counted .licensing authority concerned. @The domestic manufacturer supplying capital goods to EPCG Authorisation holders are eligible for deemed export benefits Authorisation for critical components or raw materials or Deemed Export Drawback.
@ Block-wise EPCG @ Conditions for Fulfillment of Export Obligation [EO]: @Following exports is to be considered for . maintenance of minimum export obligation has been dispensed with in the recent Annual Updation of FTP.for the purpose of fulfillment of NFE. EPCG @ Fulfillment of Export Obligation: @Export Obligation is 8 times of duty saved amount and it is to be fulfilled over a period of 8 years.
[There is no corelation to be established] @Production co-relation with imported plant and machinery under EPCG under EPCG is no more required. except for deemed EPCG @ Conditions for Fulfillment of Export Obligation [EO]: . @Export proceeds to be realized in freely convertible currency exports. @Direct and third party exports. manufactured / services rendered by the applicant.fulfillment of EO @Export obligation shall be fulfilled by export of goods.
Such average would be the arithmetic mean of export performance in last 3 years.@ Maintenance of Average: The export obligation under the scheme has to be. etc. EPCG @ Conditions for Fulfillment of Export Obligation [EO]: @Export obligation may also be fulfilled by exports of group company which has EPCG Authorisation. the average level of exports achieved by Authorisation Holder in the preceding three licensing years. cottage and tiny industries. .7. handlooms. However. over and above. agriculture. certain categories such as handicraft. except services are exempted from maintenance of average as per the provision of Para 5.6 of HBP V1.
@For this purpose. additional export obligation imposed shall be over and above average exports achieved by unit / company / group company in preceding three years.@However. in such cases.7. DFRC. average would be based on previous export of goods and services put together. despite exemption in Para 5. DEPB or Drawback scheme would also count for fulfillment of EPCG export obligation.6 of HBP v1. DFIA. . EPCG @ Conditions @Shipments for Fulfillment of Export Obligation [EO]: under Advance Authorisation.
@ Wherever more than one EPCG authorisations are issued simultaneously or concurrently. fresh .3.2000 and no deemed exports benefit has been claimed on such supplies. EPCG @ Conditions @Foreign for Fulfillment of Export Obligation [EO]: exchange counted towards fulfillment of export obligation (over and above the average) shall not be eligible for incentives / rewards under promotional measures / schemes.@The supplies made to the Oil and Gas sector can be counted towards discharge of EO provided the Authorisation has been issued on or before 31.
EPCG EPCG authorisation would build upon last average export obligation only. notwithstanding actual achievements. @ Conditions @Royalty for Fulfillment of Export Obligation [EO]: payments received in freely convertible currency and foreign exchange received for R&D services shall also be counted for discharge under EPCG. @Payment received in rupee terms for port handling services. in terms of Chapter 9 of FTP shall also be counted for export obligation discharge. EPCG @ Maintenance of Average Export under EPCG: .
Example: Let us say: @Average Exports – Rs. 20 crore and duty saved amount is Rs. 10 crore your total obligation would be as under: EPCG @ Extension of Export Obligation Period: @1st Extension up to 2 years – . 20 crores @Duty saved amount – Rs. If your average is Rs. 10 crores The EO is in addition to maintaining the annual average for the same or similar product.
OR @an enhancement in EO imposed to the extent of 10% of the total EO.@subject to payment of composition fees of 2% of the total duty saved. @2nd Extension up to 2 years – subject to condition that 50% of duty payable in proportion to the unfulfilled export obligation is paid by the Authorisation holder to the Customs authorities before an endorsement of extension is made on the EPCG Authorisation by the Regional authorities. EPCG @In case the firm is still not able to complete the export obligation the duty already deposited will be deducted from the .
EPCG @ Monitoring of Export Obligation: @Progress report on fulfillment of EO is to be submitted by 30th April every year. exporter is unable to fulfill export obligation. Decision of this committee shall be notified by DoR for implementation. @Regional authority will issue partial EO Fulfillment Certificate to the extent of . because of force majeure or other unforeseen circumstances / reasons. Such requests shall be considered by a committee comprising representative(s) of DoC and DoR under DGFT.total duty plus interest to be paid for EO default. @Waiver of EO may be considered where.
EPCG EO fulfilled in a particular year. a true and proper account of the exports/supplies made and services rendered towards fulfillment of export obligation under the scheme. Export Oriented Units [EOUs] . 2004. Corresponding Customs Notification @97/2004-CUSTOMS dated 17th September. for a period of 3 years from the date of redemption. @ Maintenance of Records Every EPCG Authorisation holder will have to maintain.
Export Oriented Units [EOUs]
@Units undertaking to export their entire
production of goods and services except permissible sales in Domestic Tariff Area (DTA) are known as Export Oriented Units (EOUs).
@EOUs are allowed to manufacture goods
including repair, re-making, reconditioning, re-engineering, and rendering of services wherever applicable.
Export Oriented Units [EOUs]
activity is however, permitted under EOU scheme.
project having a minimum investment of Rs.1 crore and above in plant and machinery shall be considered for
establishment under EOU scheme.
When one should set up an EOU
@New capital goods or second hand capital goods
are to be imported/purchased and installed.
the orientation of the company is towards export and not towards DTA sale as under the new policy DTA sale permission is limited to 50% of physical exports in value terms and therefore in order to enjoy the benefits of DTA the company must export physically.
@IT benefits for a New unit and IT benefits for
Conversion of DTA into EOU (as per CBDT Circular No. 1 Dtd. 06.01.2005) are to be considered.
@When hassle free operations are desired. (Since
there is no need of applying for Authorisations like Advance Authorisation etc.)
Benefits of EOUs
@Duty free import/procurement of @Raw materials @Capital goods @Second hand capital goods without
age limit Except items prohibited under ITC (HS)
operate under system of no licence. Hence, there is no need of making separate application for Advance Authorisations, which ultimately results into hassle free operations.
31. as notified.2003. @New Appendix “14-I-O” has been added. @EOU Unit will have to obtain CT-3 to procure excise duty free materials from DTA. It contains procedure in respect to outstanding export commitment under EPCG and Advance Authorisation Scheme.03. capital goods etc. @The local supplier will get Deemed Export Benefits. .@EOUs are allowed to source the materials. @The procedure to be followed is laid down in Excise Notification 22/2003-CE Dtd. @Interest on delay in refund of CST would be paid. from local supplier.
dtd.03. 31. dtd. 52/2003-Cus. @ Notification 01. 22/2003-CE dtd. 22/2006-Cus.Important Notifications @ Notification No.200 Additional duty in lieu of Sales Tax/VAT – Exemption to specified goods Important Notifications @ Notification No.2003 .03.03.2003 Exemption to specified goods imported or procure from Public/Private warehouse or from International exhibitions held in India by EOU for production or packaging or job work for export of goods and services No. 31.
03.Exemption to goods brought into EOU units @ Notification No. . Deemed Exports Deemed Exports 31. payment for which is received in Indian Rupees or in foreign exchange. 23/2003-CE dtd.2003 Exemption to DTA Clearances of specified goods produced in EOU @This is a special facility provided for supplies of indigenous products which can be consumed ultimately in the production of goods to be exported. The conditions are that supplied goods as it is do not leave the country but get consumed in the process of manufacture.
Authorisation/Advance for Annual or b) Deemed Exports Drawback. In other cases.@The categories eligible for deemed exports benefits are given in Para 8. c) Exemption from terminal excise duty where supplies are made against International Competitive Bidding.3 of Foreign Trade Policy which are as under: @Advance Authorization Requirement/DFIA.2 of Foreign Trade Policy which are listed here below: Important Provisions @ Benefits: @These benefits are covered under Para 8. refund of Terminal Excise duty will be .
Important Provisions @As far as (a) and (b) are concerned. these are mutually exclusive because if exemption from duty is claimed. refund cannot be claimed. @Hence. @Deemed exports duty drawback can be claimed on the basis of All Industry rate or on the basis of Brand rate following the procedure for fixation of brand rate. Important Provisions .given. deemed exporter will either claim Advance Authorisation for Intermediate supply/ Advance Authorisation for deemed exports/ DFIA or deemed exports duty drawback. @The deemed exports duty drawback is refunded by DGFT.
then also the Govt. will not grant refund.@As far as claiming of refund of Terminal Excise Duty (TED) is concerned.2003 (which is commonly known as CT-3 procedure) or when supplies are made to Advance Licence holder under excise notification no.03. deemed export suppliers have to pay Terminal Excise duty and claim refund. 31. @If the recipient units take CENVAT credit of terminal excise duty. the same principle applies. 26.06. @Terminal Excise Duty need not be paid by the deemed exports supplier if the supplies are given to EOU units under exemption notification no. Important Provisions . @In all other cases. 22 dtd. except when supplies are made against international competitive bidding. 44 dtd.2001.
@In case of EOU. Supply to SEZ Developer/SEZ Unit Supply to SEZ Developer/SEZ Unit . Refund of Terminal Excise Duty and Duty Drawback must be claimed from the concerned Development Commissioner. @Deemed exports. are monitored by DGFT and Excise and not by Customs. both are to be claimed from licensing authorities alone. per se.@In case of deemed exports duty drawback as well as refund of terminal excise duty.
@ The provisions relating to exports under Central Excise Act. . @Supplies from DTA to SEZ are exempted from payment of any Central Excise duty under Rule 19 of Central Excise Rules. may be treated as physical exports. 1944 and rules made there under may be applied. 2002. 2002 subject to the fulfillment of conditions laid there under. or to SEZ developers for their authorized operations inside a SEZ. [Under Bond] @Similarly. such supplies are eligible for claim of rebate under Rule 18 of Central Excise Rules. mutatismutandis.@ Rule 30 .Procedure for procurements from the DTA: @The supplies from DTA to a SEZ unit. in case of procurement by SEZ units & SEZ developer from DTA for their authorized operations.
invoices or transport documents . or is a trader or merchant exporter: The above procedure will be applicable mutatis mutandis. drawbacks and concessions on the basis of invoice or transport documents.Contd……… Contd……… Contd……… Supply to SEZ Developer/SEZ Unit @ Procedure in case where goods are procured from a DTA. issued by the supplier. who is not registered with the Central Excise authorities. In this case. @The SEZ Unit/Developer may also procure goods from DTA without availing exemptions. except that the goods are to be brought to the SEZ under the cover of an Invoice and the ARE-1 will not be required.
there is no possibility of real peace” @Shri Dalai Lama Thank You . drawbacks and concessions have been availed on the said supplies. Thought for the Day… “Where ignorance is our master.are to be endorsed to the effect that no exemptions.
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