TELANGANA – HYDERABAD

Role of Documentation
in International Trade

Date – 12 Oct, 2023

th
Origin of Documentation – International Trade

Foreign Trade Policy

Miscellaneous
-International
Marketing
-Vendor
Development
-Logistic & Ship Customs
-Banking
-Insurance
-Regulation
- GST Law & Rules
-Others

Exchange Control
Regulations
Documents
Meaning

An official paper that

gives information about
something or that is used
as proof of something.
 What is Documentation ?
Documentation is any communicable material that is
used to describe, explain or instruct regarding some
attributes of an object, system or procedure, such as its
parts, assembly, installation, maintenance and use. As a
form of knowledge management and knowledge
organization, documentation can be provided on paper,
online, or on digital or analog media, such as audio
tape or CDs. Examples are user guides, white papers,
online help, and quick-reference guides. Paper or hard-
copy documentation has become less common.[citation
needed] Documentation is often distributed via
websites, software products, and other online
applications.
 FOREIGN TRADE POLICY
CORRELATION
• Foreign Trade (Development & Regulation) Act, 1992
• Foreign Trade (Regulation) Rules, 1993
• Customs Act, 1962
• Customs Tariff Act, 1975
• Foreign Exchange Management Act, 1999
• Exchange Control Regulations
• Industrial Policy Resolution, 1956
• Industrial Development & Regulation Act, 1951
• Legal Metrology Act, 2011 “Legal Metrology (Packaged Commodity) Rules, 2011”
• GST Law & Rules, 2017
• Miscellaneous
 Types of Documents
Foreign Trade Policy – 2023
- Authorization related Documents like relating to Restricted Items, SCOMET Items.
- Export Incentives related Documents
-Advance Authorization
- Duty Free Import Authorization
- EPCG Authorization
- RoDTEP
- Others
 FTP – Para 2.06- Mandatory Documents
for Import of Goods into India
(b) Mandatory documents required foe import of goods into India :
1. Bill of Lading / Airway Bill
2. Commercial Invoice cum Packing List*
3. Bill of Entry
(Note: * (i) As per CBEC Circular No. 01/15-Customs dated 12/01/2015. (ii) Separate
Commercial Invoice and Packing List would also be accepted.)
(c) For export or import of specific goods or category of goods, which are subject to any
restrictions / policy conditions or require NOC or product specific compliances under
any statute, the regulatory authority concerned may notify additional documents for
purposes of export or import.
(d) In specific cases of export or import, the regulatory authority concerned may
electronically or in writing seek additional documents or information, as deemed
necessary to ensure legal compliance.

(e) The above stipulations are effective from 1st April,2015.

 FTP – Para 2.06 - Mandatory Documents for
Export of Goods from India

(a) Mandatory documents required for Export of goods from India :

1. Bill of Lading / Airway Bill / Lorry Receipt / Railway Receipt/ Postal Receipt

2. Commercial Invoice cum Packing List

3. Shipping Bill / Bill of Export

Customs - Regulatory Documents

Imports
- Bills of Entry
- Home Consumption Bill of Entry
- Warehouse Bill of Entry
- Ex- Warehouse Bill of Entry
- Import Declaration Form – Valuation Rule, 2007
- Industrial Approval
- Carotar Form 1 (Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020)
- Country of Origin Rules & Certificate
- Others
Exports
- Shipping Bill – Bill of Export
- Export Declaration Form – Valuation Rule, 2007
- Shipping Invoice - Packing List
- Certificate of Origin

Appeals related
- Form CA – 1 (Form of Appeal with Commissioner of Customs ( Appeal)
- Form CA – 3 (Form of Appeal – CESTAT )
- Miscellaneous
 Exchange Control Regulations
EDF (Export Declaration Form)

FORM
OF COMPLAINT(TO BE LODGED ) WITH THE BANKING
OMBUDSMAN (Annexure ‘A’)
 Miscellaneous - Laws

• Legal Metrology Act, 2009 ?

• Packaged Commodities Rules, 2011 as amended ?
• GST Act, 2017 and Applicable Rules ?
• Import / Export Products related Laws like Drugs & Cosmetic Acts, 1940 ?
• SEZ Act, 2005 ?
• SEZ Rules, 2006 ?
• MSME Act, 2006 ?
 Maintenance of Records
Duty Exemption / Remission Scheme - Para – 4.78 of HBP -2023

EPCG Scheme
Annual Reporting of E.O. Fulfilment - Para – 5.14 of HBP – 2023

Maintenance of Records - Para – 5.22 of HBP - 2023

 Summary - Role of Documentation in
International Trade
Objectives

- To claim various Export Incentives & ensure Compliances as per FTP / HBP Provisions.

- To seek approval for Import / Export of Restricted and SCOMET Authorizations.

- To seek Clarification & Interpretation regarding FTP & HBP – 2023.

- To ensure Compliance under various provisions of Customs Act, 1962 and Customs Tariff
Act, 1975.

- To comply with provisions of FEMA – 2020 governing Import & Export w.r.t.
a) Master Direction on Import of Goods & Services dated 1st Jan, 2016 as amended
b) Master Direction on Export of Goods & Services dated 1st Jan, 2016 as amended
c) Foreign Trade Management ( Export of Goods & Services) Regulations, 2015

- To avail of GST Exemption / Refund against Exports.

(a) To avail Input Tax Credit - Imports

- To comply with other Rules & Regulations relating to Import & Export – Miscellaneous
Laws.
 Source of Information – Compliances
• Important Sections of Customs Act, 1962 - Import
• Important Sections of Customs Act, 1962 - Export
• Master Direction on Import of Goods & Services dated 1st Jan, 2016 as amended.
• Master Direction on Export of Goods & Services dated 1st Jan, 2016 as amended.
• Foreign Trade Management ( Export of Goods & Services) Regulations, 2015.
• Foreign Trade Development Regulations Act, 1992 - Appeals.
 IMPORTANT SECTIONS CUSTOMS ACT, 1962.
(IMPORT)
Sec 14 Valuation
Sec 15 Date for determination of duty
Sec 17 Assessment of Duty
Sec 18 Provisional Assessment
Sec 20 Re-Importation
Sec 23 Remission of Duty & Abandonment of Consignment
Sec 27 Refund of Duty
Sec 28 Less Charge Demand
Sec 128 Appeals (Collector)
Sec 128 A Appellate Procedure
Sec 129 Appellate Tribunal
Sec 129 A Appeals to the Appellate Tribunal
Sec 135 Evasion of duty or prohibitions
 IMPORTANT SECTIONS CUSTOMS ACT, 1962.
(EXPORT)
Sec 11 Power to prohibit Importation or Exportation of goods

Sec 16 Date for determination

Sec 20 Re-importation of goods manufactured in India

Sec 26 Refund of Export duty in certain cases

Sec 39 Export goods not to be loaded on vessel unless entry outward granted

Sec 40 Export goods not to be loaded unless duly passed by proper officer

Sec 41 Delivery of Export manifest or Export Report

Sec 50 Entry of goods for Exportation

Sec 51 Clearance of goods for Exportation
Sec 74 Drawbacks allowable on RE-export of duty paid goods.

Sec 75 DBK on imported materials under in the manufacture of goods, which are
exported.

Sec 76 Prohibition & Regulation of DBK in certain cases

 Master Direction – Import of Goods and Services (Updated as on November 21, 2022)

RBI/FED/2016-17/12
FED Master Direction No. 17/2016-17
January 1, 2016
(Updated as on November 21, 2022)
(Updated as on May 31, 2022)
(Updated as on January 06, 2022)
(Updated as on December 07, 2021)
(Updated as on October 28, 2020)
(Updated as on January 27, 2020)
(Updated as on April 01, 2019)
(Updated as on February 02, 2018)
(Updated as on January 12, 2017)
(Updated as on October 20, 2016)
(Updated as on March 31, 2016)
(Updated as on February 04, 2016)
To
All Authorised Dealer Category – I banks and Authorised Banks
Madam / Dear Sir,
 Master Direction – Import of Goods and Services

Import of Goods and Services into India is being allowed in terms of Section 5 of the Foreign
Exchange Management Act 1999 (42 of 1999), read with Notification No. G.S.R. 381(E) dated
May 3, 2000 viz. Foreign Exchange Management (Current Account Transaction) Rules, 2000.
These Regulations are amended from time to time to incorporate the changes in the regulatory
framework and published through amendment notifications.

2. Within the contours of the Regulations, Reserve Bank of India also issues directions to
Authorised Persons under Section 11 of the Foreign Exchange Management Act (FEMA), 1999.
These directions lay down the modalities as to how the foreign exchange business has to be
conducted by the Authorised Persons with their customers/constituents with a view to
implementing the regulations framed.
3. Instructions issued on import of goods and services into India have been compiled in
this Master Direction. The list of underlying circulars/ notifications which form the basis
of this Master Direction is furnished in the Appendix. Reporting instructions can be
found in Master Direction on reporting (Master Direction No. 18 dated January 01, 2016
).

4. It may be noted that, whenever necessary, Reserve Bank shall issue directions to
Authorised Persons through A.P. (DIR Series) Circulars in regard to any change in the
Regulations or the manner in which relative transactions are to be conducted by the
Authorised Persons with their customers/ constituents. The Master Direction issued
herewith shall be amended suitably simultaneously.
• Yours faithfully,
•(Vivek Srivastava)
Chief General Manager
 INDEX

Section I – Introduction

Section II - General Guidelines for imports

B.1. General Guidelines

B.2. Remittances for Import Payments
B.3. Import Licenses
B.4. Obligation of Purchaser of Foreign Exchange
B.5. Time Limit for Settlement of Import Payments
B.6. Import of Foreign exchange / Indian Rupees
B.7. Third Party Payment for Import Transactions
B.8. Issue of Guarantees by an Authorised Dealer
Section III - Operational Guidelines for Imports

C.1. Advance Remittance

C.2. Interest on Import Bills
C.3. Remittances against Replacement Imports
C.4. Guarantee for Replacement Import
C.5. Import of Equipment by Business Process Outsourcing (BPO) Companies
for their overseas sites
C.6. Receipt of Import Bills/Documents by the Importer Directly from Overseas
Suppliers
C.7. Evidence of Import
C.8. Import Data Processing and Monitoring System
C.9. Verification and Preservation
C.10. Follow up for Import Evidence
C.11. Import of Gold
C.12. Import of Other Precious Metals
C.13. Import Factoring
C.14. Merchanting Trade
C.15. Import Payments through Online Payment Gateway Service Providers
C.16 Settlement of Import transactions in currencies not having a direct
exchange rate

Consolidated List of Circulars in the Master Direction

Master Direction – Export of Goods and Services (Updated as on November 22, 2022)

RBI/FED/2015-16/11
FED Master Direction No. 16/2015-16
January 1, 2016
(Updated as on November 22, 2022)
(Updated as on January 08, 2021)
(Updated as on October 19, 2020)
(Updated as on January 12, 2018)
(Updated as on November 16, 2017)
(Updated as on September 15, 2017)
(Updated as on May 26, 2016)
(Updated as on May 12, 2016)
To,
All Authorised Dealer Category – I banks and Authorised Banks
Madam / Sir,
 Master Direction – Export of Goods and Services

Export of Goods and Services from India is governed by clause (a) of sub-section (1) and
sub-section (3) of Section 7 of the Foreign Exchange Management Act 1999 (42 of
1999), read with Notification No. G.S.R. 381(E) dated May 3, 2000 viz. Foreign
Exchange Management (Current Account Transactions) Rules, 2000, further read with 1
FEMA Notification No.23(R)/2015-RB dated January 12, 2016. These Regulations are
amended from time to time to incorporate the changes in the regulatory framework and
published through amendment notifications.

2. Within the contours of the Regulations, Reserve Bank of India also issues directions to
Authorised Persons under Section 11 of the Foreign Exchange Management Act
(FEMA), 1999. These directions lay down the modalities as to how the foreign exchange
business has to be conducted by the Authorised Persons with their customers/
constituents with a view to implementing the regulations framed.
3. Instructions issued on export of goods and services from India have been compiled in this
Master Direction. The list of underlying circulars/ notifications which form the basis of this
Master Direction is furnished in the Appendix. Reporting instructions can be found in Master
Directions on reporting (Master Direction No. 18 dated January 01, 2016)

4. It may be noted that, whenever necessary, Reserve Bank shall issue directions to Authorised
Persons through A.P. (DIR Series) Circulars in regard to any change in the Regulations or the
manner in which relative transactions are to be conducted by the Authorised Persons with
their customers/ constituents. The Master Direction issued herewith shall be amended suitably
simultaneously.
Yours faithfully,
(Vivek Srivastava)
Chief General Manager
 INDEX
PART – A General
A.1 Introduction
A.2 Realization and repatriation of proceeds of export of goods / software / services
A.3 Manner of receipt and payment
A.4 Foreign Currency Account
A.5 Diamond Dollar Account (DDA)
A.6 Exchange Earners’ Foreign Currency Account (EEFC Account)
A.7 Counter-Trade Arrangement
A.8 Exports to neighboring countries by road, rail or river
A.9 Border trade with Myanmar
A.10 Counter –Trade arrangements with Romania
A.11 Repayment of State credits
A.12 Forfaiting
A.13 Export factoring on non-recourse basis
A.14 Project Exports and Service Exports
A.15 Export of goods on lease, hire, etc.
A.16 Export on elongated credit terms
A.17 Export of currency

PART – B EDF / SOFTEX Procedure

B.1 Export of goods through Customs ports

B.2 Export of goods/ software done through EDI ports
B.3 Export of goods through post
B.4 Mid-sea trans-shipment of catch by deep sea fishing vessels
B.5 SOFTEX Forms
B.6 Citing of specific identification numbers
B.7 Export of services
B.8 Third party export proceeds
B.9 Random verification
B.10 Short Shipments and Shut out Shipments
B.11 Consolidation of air cargo/ sea cargo
B.12 Exemption from Declaration

PART –C Obligations of Authorised Dealers

C.1 Grant of EDF waiver

C.2 Receipt of advance against exports
C.3 EDF Approval for Trade Fair/Exhibitions abroad
C.4 EDF approval for export of goods for re-imports
C.5 Re-export of unsold rough diamonds from Special Notified Zone of
Customs
without Export Declaration Form (EDF) formality
C.6 Setting up of Offices abroad and acquisition of immovable property for
Overseas Office
C.7 Delay in submission of shipping documents by exporters
C.8 Return of documents to exporters
C.9 Landlocked countries
C.10 Direct dispatch of documents by the exporter
C.11 Part Drawings /Undrawn Balances
C.12 Consignment Exports
C.13 Opening / hiring of warehouses abroad
C.14 Export Bills Register
C.15 Follow-up of overdue bills
C.16 Reduction in invoice value on account of prepayment of usance bills
C.17 Reduction in invoice value in other cases
C.18 Change of buyer/consignee
C.19 Export of goods by Special Economic Zones (SEZs)
C.20 Extension of time
C.21 Shipments lost in transit
C.22 Export claims
C.23 Write-off of unrealized export bills
C.24 Write off in cases of payment of claims by ECGC and private insurance
companies regulated by Insurance Regulatory and Development Authority
(IRDA)
C.25 Write-off relaxation
C.26 Set-off of export receivables against import payables
C.27 Netting-off of export receivables against import payments – Units in (SEZs)
C.28 Exporters' Caution List
C.29 Issue of Guarantees by an Authorised Dealer
C.30 Issuance of Electronic Bank Realisation Certificate (eBRC)

Part-D Remittances connected with Export

D.1 Agency commission on exports

D.2 Refund of export proceeds

Appendix
 RESERVE BANK OF INDIA
FOREIGN EXCHANGE DEPARTMENT
CENTRAL OFFICE
MUMBAI 400 001
Notification No. FEMA 23(R)/2015-RB January 12, 2016
(Amended upto September 10, 2021)
(Amended upto January 11, 2021)
(Amended upto March 31, 2020)
(Amended upto December 09, 2019)
(Amended upto June 23, 2017)

Foreign Exchange Management (Export of Goods & Services)

Regulations, 2015
(Clause – 3 & 4 most Important)
 ORGANISATIONS WEBSITE

Foreign Exchange www.fedai.org.in

Dealers Association of
India

Useful
Websites Department of www.commerce.nic.in
Commerce & Industry

Foreign Trade Policy www.dgft.gov.in

 World Trade www.wto.org
Organization

Foreign Exchange www.femaonline.com

Management Act

Reserve Bank Of India www.rbi.org.in

Federation of Indian Chamber www.ficci.com
of Commerce & Industry

Asian Clearing Union – www.asainclearingunion.org

ACU

Informative Site www.ieport.com

Country Profiles-Good http://www.indianindustry.com/
Informative Site country-profiles/south-africa.html
www.legallyindia.com
 SAARC www.sdc.gov.in

International www.iccwbo.org
Chamber of Commerce

Central Board http://www.cbic.gov.in

of
Indirect Taxes and Customs

Zonal joint http://zjdgft.tn.nic.in

Directorate General
of Foreign Trade

Indian Trade Promotion http://www.indiatradefair.

Organization.
com/index.html
Federation of Indian www.fieo.com
Export Organization

Indian Institute of www.iip.in.com

Packaging

World Trade Centre www.wtcmumbai.org

Department of http://dsir.nic.in/advt/
Scientific & Industrial
dsirad1.htm
Research
Informative Sites www.eximguru.com
www.eximbankindia.com
www.eximkey.com

Ministry of External www.mea.gov.in

Affairs

National Centre for www.ncti.gov.in

Trade Information
World Customs Organizations www.wcoomd.org

World Trade Organizations www.wto.org

Informative Site www.indiantradeportal.in

World Tariff Profile www.wto.org/statistics

Global Linker www.globallinker.com

Indian Trade Journal http://itj.gov.in

Informative Site www.tradeportalofindia.org

Indian Merchants Chamber imc@imcnet.org

GST www.gst.gov.in

Global Linker (FIEO) https://www.indianbusinessportal.in

India Handmade Handloom https://www.indiahandmade.com

Shashi Chaturvedi
Legal – Corporate Advisor
201, Siddhi Kanchan
Vinayak Apts,
(Opp Mantri Venture),
Bangur Nagar, Goregaon (W), Mumbai – 400 104
Email.: shashichaturvedi15@gmail.com