|Procedure for Export under EDI system|
|Exports where LC has expired|
|Procedure for project exports|
|Movement of empty containers for stuffing purposes|
|Stuffing of containers outside the docks|
|Stuffing of exports at factory under drawback, bond, free and duty|
|Procedure for manufacturer-exporters|
|Procedure for merchant -exporters|
|Movement to gateway ports/Air ports by road|
|Movement by coastal vessels|
|Short shipment notice|
|Percentage of goods to be examined|
|Self-certification and minimal physical examination|
|Return of export goods from docks|
|Export of Handloom products|
|Export of handicrafts|
|Export of narcotic Drugs and Psychotropic Substances.|
|IMPORTANT CASE LAWS|
Section 40: As per this section, the person in charge of the conveyance shall not permit loading any export goods unless duly passed by the proper officer of Customs.
Section 50 of the Customs Act, 1962 is a statutory provision for entry of goods for exportation. This section describes that the exporter has to file the shipping bill in case of export by air or sea or a bill of export in respect of export by land.
Section 51 empowers the proper officer to make an order of clearance of export goods after he is satisfied that
In order to effect exports under the manual system the exporters are required to file shipping bills in the format prescribed on the Shipping Bill and Bill of Exports (Forms) Regulations, 1992. Separate shipping bills are prescribed for:
Date For Determination Of Rate Of Duty Or Tariff Value:
Section 16, which provides for determination of rate of duty, does not apply to passenger baggage and postal exports.
If a shipping bill or bill of export is filed, the rate of duty in force on the date on which the order of clearance and permission of loading is granted under Section 51, 2ill apply.
In all other cases the rate in force on the date of payment of duty will apply.
Determination Of Exchange Rate:
As per section 14 of the Customs Act the value of the export goods shall be calculated with reference to rate of exchange as in force on the date on which a shipping bill or a bill of export as the case may be is presented under section 50. The rate of exchange means the rate determined by the Central Government or ascertained in such a manner as the Central Government may direct. The Central Government normally issues notification to this effect periodically.
When the export goods are examined at source and sealed by the Central Excise officers, in respect of whom duty drawback is proposed to be claimed, it should be certified in the following manner:
"Certified that the description and value of the goods covered by this invoice and the particulars amplified in the packing list with a view to ascertaining drawback amount at the port of export, have been checked by me and that the goods have been packed and sealed with Central Excise lead seal or signet seal under my supervision
Superintendent of C.Excise Inspector
Exports where LC has expired.
If the date of LC validity has expired, but the date of negotiation is valid, exports may be allowed, as the documents will be negotiated. If both the dates have expired, exports should be allowed on "Documents against Payment" basis.
Procedure for project exports
Application for registration of Project Export should be made in the form vide Annexure ‘A’ in the export Deptt. along with the enclosures.
The exporters should produce necessary documents and information in order to enable the Export Deptt.
"PROJECT EXPORT" and also the registration number given by this department or suitable stamp as made by the Export Depts. may be used.
3. Each S/Bill, invoice and G.R. Forms should bear an endorsement stating therein letter number or approval number assigned to the Project Export by the Reserve Bank of India ior by the authorised bank.
4. As provided under the scheme, the exporters may make shipments from ports other than the major port with which the contract has been registered. For availing of this facility, release orders for allowing shipment from other ports will have to be obtained from Export Deptt. of this Customs House.
Movement of empty containers for stuffing purposes
In the interest of export promotion, it has been directed that no separate permission is required from Customs for movement of empty container from the ICD/CFS/ for the purpose of stuffing in the factory. It is necessary that the exporter must have obtained general permission for stuffing the export goods in the factory. The movement is however subject to usual checks at exit gate of the ICD/CFS.
Stuffing of containers outside the docks
The exporter desirous of taking the containers outside the port premises for the purpose of stuffing has to make a requisition to the concerned steamer agent, who will in turn make an application to the Assistant/Deputy Commissioner (Docks). Details of goods to be exported, number of containers required along with container numbers should be given by the steamer agent. These particulars are entered in a register maintained for this purpose. A preventive officer/Inspector attached to Container cell will inspect the container for making sure that it is empty and seal it with Customs seal.
Upon receipt of stuffed container, the steamer agent will again intimate the Docks to enable it to close the entry in its register. If the examination report of the Central Excise offices is inadequate, the Customs officers will subject the goods to re-examination at docks. If the load is less than one container load, facility for stuffing at factory will not be extended. In all such cases, the goods will be examined at docks.
Stuffing of exports at factory under drawback, bond, free and duty
Permission for stuffing at factory will be granted for three months at a time for following category of goods:
In case of drawback shipping bill, factory stuffing will be allowed only in the factory of manufacture. In other cases, it will be considered on case by case basis.
Procedure for manufacturer-exporters
Procedure for merchant -exporters
In addition to the above particulars submitted by the manufacturer-exporters, for warehouse stuffing of non-excisable goods, the merchant-exporter should submit a NOC.
Movement to gateway ports/Air ports by road
If there is likelihood of delay in exports on account of non-availability of railway facility, upon request of the custodian, movement by road may be permitted. The custodian has to execute a bond for this purpose before the Asisstant Commissioner in-charge of the ICD/CFS. This bond will be redeemed after receipt of transference copy of the shipping bill from the gateway port, confirming the export.
Movement by coastal vessels
Board circular has authorised movement of containers carrying export goods from small coastal ports by coastal vessel to the gateway ports. This export will be allowed at the gateway port subject to the condition that a bond has been executed as per regulation 4 of the Goods Imported (Conditions of transshipment) Regulations, 1995 and export goods are manifested through the gateway port (port of transshipment or hub port), such as for instance, "To Amsterdam, through Chennai".
The Board circular lays down certain procedures as under:
Short shipment notice
Notice of Short-Export Rules, 1963 casts the responsibility to furnish information of short shipment, on the exporter. The exporter is required to furnish such information within seven days from the date of departure of the conveyance, to the proper officer:
Percentage of goods to be examined
Alternatively, he may present the shipping bill or bill of export for cancellation or amendment.
Rule 3 seeks to impose a penalty of Rs.100 maximum for failure to comply with this condition.
The assessing officer’s name seal affixed on the assessed shipping bill usually also indicates the percentage of goods checked. An option exists to indicate whether 5% or 10% of goods are examined. In many cases, the Ministry has noticed that the percentage of checking done is not indicted by striking out the in applicable percentage. The assessing officers are directed to indicate the specific percentage of export goods examined by them.
Self-certification and minimal physical examination
The Board has directed that at the Gateway port, for containers brought under self-sealing procedure, routine examination should be dispensed with. For such containers, only one out of five containers should be opened for visual inspection of the content. Thereafter, from each opened container a minimum of two packages and maximum of 5% packages may be examined.
Exporters seeking the facility of self-certification have to get themselves registered with the Custom House. This registration has to be renewed in July every year. At the time of renewal, particulars of exports made after obtaining the facility with shipping bills number, value, description should be furnished, duly authenticated by the jurisdictional Central Excise Assistant Commissioner or Deputy Commissioner.
Drawal of exports samples – streamlining of procedure
1. In case of manufacturer exporters who have in-house testing facility, their test reports may be relied on for the purpose of logging of DEEC book as well as for verification under Pass Book Scheme, if the following conditions are satisfied:
Good Manufacturing Practice certificate has been granted by the Drug Controller,
Approved testing facilities by ISI/CSIR/Ministry of Science and Technology or the nodal Ministry,
Holds a ISO 9002 certificate.
Such an eligible manufacturer has to enclose the in-house test certificate along with shipping bill.
1. Test results obtained from Central Excise test laboratories will be valid for six months, provided the test reports bring out the technical characteristics of inputs, as required under various schemes (DEEC, pass book scheme etc.). A certified copy of this test report along with examination report may be produced.
All these procedures are followed only in respect of manufacturer-exporters.
Return of export goods from docks
Export of Handloom products
Handloom Export Promotion Council (HEPC) will endorse all the shipping bills containing cotton handloom products whether they belong to merchant exporters or manufacturer exporters to the effect that the goods covered by shipping bills are handloom products and with regard to all shipping bills so endorsed by HRPC, certificate of non-availment of modvat credit need not be insisted.
Export of handicrafts
In case of handicraft exports, routine references for obtaining NOC from the Archaeological Survey of India, should be avoided. In order to equip the Customs officers to understand and decide what kind of cases have to be referred to ASI or Wild Life department, in the NACEN training program, it has been proposed to incorporate in the curriculum, subjects such as Antiquities Act and law regarding export of wild life.
For duty drawback purposes, in terms of General Note No.11 of Drawback Table, the exporters of handicrafts of Brass or Iron have to produce a certificate from the Development Commissioner that the said goods are handicrafts. The Export Promotion Council for handicrafts may also issue this certificate. However, no certificate of non-availment of modvat is required as handicrafts are unconditionally exempt from payment of Central Excise Duty.
Export of narcotic Drugs and Psychotropic Substances.
In terms of NDPS Act, 1985, export or import of items falling under Schedule-I is prohibited. Other Psychotropic substances may be exported with the export authorization issued by the Central Narcotic Bureau. Besides, Ministry of Commerce Public Notice No.79/EXP(PN)/96-97, dated 2.1.1996 allows export of Ephedrine, Pseudoephedrine and Acetic Anhydride against NOC issued by the Narcotic Control Bureau. Export of these goods will be permitted only upon compliance of these conditions.
Exporters will bring the consignments of silk to the customs point. For each consignment, an application for pre-shipment inspection in prescribed forms of Central Silk Board (CSB) will be made accompanied by two copies of export invoices, two packing lists and a sample swatch of 6" square dimension.
After the inspectors check the correctness of HS code and authenticate the invoices, the customs will randomly select consignments for check by the CSB Inspector. The parcels will be checked for purity, yarn constituents, construction particulars with sample attached to the application and description contained therein. If parcels conform to samples the CSB inspector will issue an endorsement to that effect to customs on the invoice. If there is a mismatch, the inspector will inform customs in writing for appropriate action by customs. CSB will conduct examination and submit report on the same day. Thereafter, sample swatch will be analyzed in the lab for fibre composition. This will also be reported to customs. This procedure seeks to avoid dual inspection, one by CSB and the other by Customs.
IMPORTANT CASE LAWS
1996(85) ELT 203(CA)
1998(102) ELT655 (T)
1999(112) ELT 110(T)
1998 (102) ELT 444(T)
1999(112) ELT400 (T)
1980(6) ELT 38 (Cal.)
1995(74) ELT 819 (Guj.)
1995(80) ELT 3(SC)
1994(74) ELT 819 (Guj)
1994 (70) ELT 688(T)
1993(65) ELT 474(SC)
1997(89) ELT 574(T)
1999(105) ELT 258 (Mad.)
C.B.E. & C. Circular No. 83/99-Cus., dated 14.12.1999,
C.B.E. & C. Circular No. 83/99-Cus., dated 14.12.1999,
C.B.E. & C. Circular No. 22/96-Cus., dated 19.4.1996
C.B.E. & C. Circular No. 41/96-Cus., dated 5.8.1996
C.B.E. & C. Circular No. 44/96-Cus., dated 21.8.1996
M.F. (D.R) Circular No. 71/97 Cus., dated 23.12.1997,
M.F. (D.R) Circular No. 62/97 Cus., dated 17.11.1997,
C.B.E. & C. Circular No. 51/96-Cus., dated 24.10.1996
C.B.E. & C. Circular No. 48/98-Cus., dated 15.7.1998
C.B.E. & C. Circular No. 2/2000-Cus., dated 5.1.2000
M.F. (D.R) Circular No. 57/98 Cus., dated 4.8.98
M.F. (D.R) Circular No. 57/97 Cus., dated 31.10.1997,
M.F. (D.R) Circular No.22/95-Cus., dated 16.3.1995,
C.B.E &C. Circular No. 57/99-Cus., dated 27-8-1999,
M.F. (D.R.) Circular No. 28/99-Cus., dated 24-5-1999,
M.F. (D.R.) Circular No. 31/99-Cus., dated 27.5-1999,
M.F. (D.R.) Circular No. 10/98-Cus., dated 211.2.1998,
Section 40 of the Customs Act, 1962.
Section 51 of the Customs Act, 1962.
Section 16 of the Customs Act, 1962.
Section 17 of the Customs Act, 1962.
Section 50 of the Customs Act, 1962.
Section 14 of the Customs Act, 1962.
The Shipping Bill And Bill of Export (Form) Regulations 1991.
The ATA Carnet (Bill of Entry and Shipping Bill) Regulations, 1990
The Shipping Bill for Aircraft Spares Ex-bond Regulations 1975.
The Notice of Short-Export Rules, 1963.
The Levy of Fees (Customs Documents) Regulations, 1970
Customs (Fees for Rendering Services by Customs Officer) Regulations, 1998
Goods Imported (Conditions of transshipment) Regulations, 1995