Export procedures

Certain procedures have to be followed for the purpose of clearing goods to be exported. Briefly these procedures have been discussed below :-

Procedures to be followed by the exporter

1. The exporter must submit the Shipping Bill in case of export by sea or air and Bill of Export in case of export by road in the prescribed form containing the prescribed details such as the name of the exporter, consignee, invoice number, details of packing, description of goods, quantity, FOB value, etc. Along with the Shipping Bill, other documents such as copy of packing list, invoices, export contract, letter of credit, etc. are also to be submitted. Goods have to be assessed for duty even if no duty is payable.

There are 4 types of shipping bills :-

1. Shipping bill for export of goods under claim for duty drawback. This shipping bill is green colored.
2. Shipping Bill for export of dutiable goods. This shipping bill is yellow colored.
3. Shipping Bill for export of duty free goods. This shipping bill is white colored.
4. Shipping bill for export of duty free goods ex-bond i.e. from bonded warehouse. This shipping bill is pink colored.

Declaration of exporter

The exporter must make a declaration in the prescribed form in the following situations :-

• In case of exports of goods under claims for drawbacks of duty
• In case of goods under DEEC schemes
• In case of exports of goods in anticipation of issue of advance license or DEEC
• In case of consignment covered by AR-4A (Excise Forms refer Excise Law Details ) pending weighment at the docks. These forms are excise forms against which a manufacturerexporter may clear goods from his factory for the purpose of exports without payment of any excise duty
• In case of exporters who have filed Shipping Bill without certificate from an inspection agency

2. Excise formalities : In case goods are cleared by the manufacturer for export, there are accompanied by Form AR-4 or AR-4A. This form must be submitted to the Customs authorities. The Custom Officer certifies that the goods covered by the form have been exported. This firm then has to be submitted to the Maritime Collector for obtaining proof of export. The bond executed by the manufacturer-exporter with the excise authorities for clearance of goods without payment of excise duty is released only when proof of export is accepted by the maritime collector.

3. Exchange control formalities : The exporter must file copies of GR form prescribed by the Reserve Bank of India (RBI) for the purposes of exchange control with his bankers. Purpose of GR form is to enable RBI to ensure that export proceeds from the export are received in India through proper banking channels only within reasonable time limits.

4. Inspection reports : Certain goods such as items which are prohibited for export under the Foreign Trade (Development and Regulation) Act, antiques, arms, narcotics, etc can be exported only after they have been inspected for export and appropriate permissions from the concerned authorities have been obtained. In such case, inspection report must also be submitted. The inspection may be done at the exporter's premises or at a Customs Area.

5. Let export order : After all the above formalities are over and the Customs Officer is satisfied that the export does not contravene the provisions of any law and all duties and other dues have been paid, a "Let Export Order" will be made to permit the export.

Procedures have to be followed by the person in-charge of conveyance (shipper)

1.Entry outwards entry outward is granted by the Customs authorities on application made by Steamer Agents 14 days in advance to enable the exporters to submit Shipping Bills. This enables Speedy completion of Customs formalities. Loading of goods on the vessel can start only after Entry Outwards is granted.

2. Loading with permission : Goods for export can be loaded only after the Shipping Bill or Bill of Exports duly assessed by the Customs Officer is handed over by the exporter to the person incharge of the conveyance. In case of baggage and mail baggage, Shipping Bill is not necessary but approval of the Customs Officer is required for loading.

3.Export manifest or export report must be filed in the prescribed form before departure giving the prescribed details which are similar to the details required in the Import Manifest. The Export Manifest may be amended or supplemented with permission if there were no fraudulent intention. The Export manifest must be accompanied by a declaration that the details specified are true and correct by the person in-charge of the conveyance. This report is not required if the conveyance is carrying only luggage.

Miscellaneous procedures

1. Boat notes : Sometimes, a vessel instead of actually docking at a port may unload cargo in a smaller boat which will bring the cargo on to the shore. In such cases, the small boat must be accompanied by a Boat Note. Such Boat Notes will be issued by a Customs Officer in the prescribed form in duplicate.

Similarly, in case of exports, a boat may carry the export cargo to a waiting ship at sea. In such cases, a boat note is required. However, a Boat Note is not required if the cargo is accompanied by a shipping list.

A Boat Note is also required for transshipment of cargo i.e. transfer from one ship to another for reshipment.

2. Transit goods : Any goods imported in a vessel or aircraft will be allowed to remain on board of the vessel or aircraft and to be transited without payment of custom duty. However all these goods must be mentioned in import manifest submitted by the person in charge of the conveyance.

3. Trans-shipment of goods means transfer of goods from one vessel to another for transport to any port. Goods can be trans-shipped without payment of any customs duty provided they are mentioned in the Import Manifest. In such cases, a Bill of Trans-shipment must be submitted to the Customs Officer. However, such transhipment is not allowed in case of certain prohibited goods.

4. Coastal goods means goods transported from one port in India to another port in India but do not include imported goods. though no import or export is involved in case of coastal goods, adequate control procedures are required in order to ensure that these goods are not illegally exported. Trade and transport of coastal goods by sea can be carried out only on approved coastal ports. The consignor must file a Bill of Coastal Goods to the Customs authorities in the prescribed form giving the prescribed details. The goods will be loaded by master of vessel only after the Bill of Coastal Goods is approved by the Customs authorities. The Master of vessel must carry an advice book where entries will be made by the Customs Officer. This advice book can be inspected by a Customs Officer a a coastal port. On completion of loading, entry outwards is granted by the Customs Officer after which the vessel may leave port. The coastal goods can be unloaded on a Coastal Port or a Custom Port. The relevant documents and goods will be inspected by the Customs authorities. Unloading can be done only after obtaining permission from the Customs Officer.