Export and Import Procedures - Part II

Dr. Anupam Varma

Central Excise Clearance All the excisable goods can be removed from the factory only after their clearance by the Central Excise Authorities. The procedure for clearance of excisable goods for exports can be classified into the following two categories: 1) Procedure for excise clearance in case of exempted units 2) Procedure for excise clearance in case of units other than exempted units .

Definition of Exempted Unit A manufacturing unit is exempt from the levy of central excise if the value of the goods cleared by it for home consumption in a financial year is within the exemption limit of Rs. The exempted units are not required to obtain Central Excise Registration but have to file a declaration with the Central Excise Department. 50 lakhs. . These units are then allotted the Declarant¶s Code Number.

Give the details of the description of goods. name and address of the buyer. . File quarterly statement of all the clearances with CENTRAL EXCISE DEPT in prescribed form enclosing the proof of export. destination. vehicle number. date and approximate time of removal of goods and progressive total value of all excisable goods cleared for home consumption since the beginning of the financial year. value.Excise Clearance Procedure ± Exempted Units The exempted units should: Prepare a document for clearance of goods in form of invoice with distinctive serial number indicating the IEC Code and the Declarant¶s Code Number State that the goods are being cleared for Exports.

Export under Bond: In this case. . the exporter is allowed clearance of goods for export without payment of the excise duty subject to the execution of bond with security or surety for a sum equivalent to the duty chargeable on the goods to be exported.Procedure of Excise Clearance ± Units Other Than Exempted Units Export under claim of rebate of duty: The excise duty is first paid and then the exporter claims its refund after exportation of goods.

Different color of its 5 copies Original ±White. . returned to the exporter immediately after endorsements and signature.DOCUMETATION REQUIREMENT FOR CENTRAL EXCISE CLEARANCE The basic form used for seeking Central Excise Clearance is ARE-1 (whether by land/sea/air/post).returned to the exporter immediately after endorsements and signature. Retained for official records Quintuplicate-Blue. Triplicate-Pink. Sent to the officer with whom rebate claim is to be filed Quadruplicate-Green. Optional copy . returned by excise dept to exporter immediately after endorsements and signature Duplicate-Buff.

. Ship them and Procure the relevant transport document (Bill of Lading or Airway Bill).Appointment of Clearing & Forwarding Agents ± Main Functions Main functions of the agent are to Obtain customs clearance of goods.

marking and labeling of consignment. arranging insurance Customs clearance of cargo. . Procurement of transport and other documents. Arrangement for transport to the port.Appointment of Clearing & Forwarding Agents ± Other Important Functions Perform a number of functions on behalf of the exporter Provide specialized help by undertaking the procedural and documentary formalities from exporters warehouse to importer's warehouse Helping in packing. shipment overseas.

if applicable.Objectives Customs clearance of import/export goods under Customs Act 1962 Regulating export/import in a free & transparent manner as per prescribed law and control illegal trade To ensure authenticity of value of export goods to check over/under invoicing To correctly assess and collect export/import duty. . To compile data on cargo movements.Customs Clearance .

Physical examination of goods in the shipment shed .Procedure of Custom Clearance Permission is granted in two stages Checking of shipping document in the Customs¶ office.

Contract.Shipping Bill It is the main document on which customs clearance given for allowing shipment Documents required for processing of shipping bill: a. ARE 1 (both original & duplicate) f. Inspection/Examination Certificate (contd.) . Four copies of Packing List c. L/C. Four copies of Invoices d. GR forms in duplicate b. Purchase Order e.

Green shipping bill: for export of goods under claim for duty draw back c.) a. White shipping bill: for export of duty free goods b.Shipping Bill Four types: (Contd. Yellow shipping bill for export of dutiable goods d. Pink shipping bill: for export of duty free goods ex-bond (imported goods for reexport) .

Customs Appraiser then makes endorsement in duplicate copy of shipping bill for Dock Appraiser about extent of physical examination of cargo (contd. That value & qty declared in shipping bill is same as in export order/LC b.Appraisal by Custom Authorities Customs Appraiser examines shipping documents and appraises value: a. That formalities reg exchange control. pre-shipment quality inspection have been duly completed.) .

Appraisal by Custom Authorities (contd.) .) Carting orders are obtained for bringing export cargo to transit shed for physical examination by Dock Appraiser Dock Appraiser records examination report and if satisfied. makes ³Let Export´ endorsement on duplicate copy of shipping bill The documents then go to Preventive Officer of customs dept who supervises loading of cargo on board the vessel (contd.

Appraisal by Custom Authorities (Contd) Preventive Officer endorses ³Let Ship´ on duplicate copy of shipping bill which is handed over to the Agent of shipping company. . This constitutes an authorisation by Customs to the shipping company to accept cargo on board the vessel.

Customs Clearance ± Green Channel Facility Green channel clearance facility to some large and status holder exporters for import of raw materials Clearance of goods is done without routine examination Assessment of duty payable is made on basis of documents submitted by importer along with declaration about correctness documents In case of doubt customs officials can go for physical examination .

Types of Duties Under customs laws. following are various types of duties leviable:  Basis Duty  Additional Duty (Countervailing Duty) (CVD)  Anti-dumping Duty  Protective Duty  Duty on Bounty Fed Articles  Export Duty .

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