EXPORTS

	What is the meaning of Export?
	What is the procedure to export goods?  What are the various documents to be filed? Is it true that all Exports from India should necessarily pass through Customs?
	What is the procedure to be followed to export the goods under claim for rebate?
	What is the Procedure for exporting goods through post?

Q.1          What is the meaning of Export?

A.            Export means taking goods out of India to a place outside India (Section 2(18)) of the Customs Act 1962).

Q.2  What is the procedure to export goods?  What are the various documents to be filed in the Manual system of Processing Shipping Bills?

1. A.            Any exporter before exporting goods should obtain Exporters Code Number from the Reserve Bank of India known as RBI code number.  In addition, an exporter is required to obtain an Importer-exporter code (IEC) number from the Office of the Director General of Foreign Trade or his regional Offices.  These two numbers have to be furnished in the export documents.  From April’2001 the IEC will be replaced with the PAN number issued by the Income Tax authorities. This will be the uniform identification number for transaction with any Government agencies like Customs, Central Excise etc.

The exporter should also procure an export order/consent from the foreign buyers.  The exporter intending to export any goods should file a document called Shipping Bill  with the Customs Department.  All the columns in the Shipping Bill should be filled in properly, which includes the name and address of the exporter., name and address of the foreign buyers.  Quantity and description of the goods., FOB value, etc.  The documents to be enclosed to the Shipping Bill are:

a)       Invoice

b)       Purchase order/contract

c)       G.R. form in duplicate

d)       Export license, if the goods are falling in the negative list of the Export and Import Policy.

e)       Exporter’s declaration regarding correctness of the value, goods, etc; (Section 50 of the Customs Act, 1962).

The Shipping bill so filed with the Customs is assigned with a serial number with date by the noting clerk and then the Shipping Bill is scrutinized by the Appraiser/Superintendent and after assessment it is countersigned by the Assistant/Deputy Commissioner.  The original copy of the Shipping Bill is detached by the noting clerk when no export duty is payable.  If any export; duty is payable original copy of shipping bill is detached by cash department after collecting duty and making suitable endorsement on all the copies of shipping bill.  The other copies are then returned to the Exporter/CHA.  Thereafter the Exporter/CHA presents the duplicate and triplicate copies of shipping bill with other documents and the goods to the Appraiser/Superintendent in charge of examination.  The Appraiser/Superintendent examines a percentage of the consignment with reference to the documents and gives an order called ‘LET EXPORT’ order on duplicate and triplicate copies of Shipping Bill.  The goods thereafter remain in the Customs area till they are loaded into the conveyance (Ship/Aircraft/Container) under Customs supervision.

Triplicate, Quadruplicate, Export Promotion copy of the Shipping bill and duplicate copy of G.R. form are returned to the Exporter/CHA.  The Preventive Officer/Inspector supervises the loading of export goods into the conveyance and makes an endorsement to that effect on the Shipping Bill and G.R. form. Original G.R.form is detached by the Preventive Officer/Inspector for onward transmission to the Reserve Bank of India (R.B.I.)

Now the procedure of filing Documents for Export has been brought under the EDI system introduced in all Major Custom Houses to facilitate speedier clearance of documents.

Click Here to view more about the EDI in Customs.

Click Here to view more about Export Procedure under EDI.       

Q.3          What is the procedure to be followed to export the goods under claim for rebate?

A.            The central Excise Rule 12 has been framed to grant rebate of duty paid on export of central excise duty paid goods.  A Notification No.41/94 CE (NT) dated 12.9.94 has been issued which permits grant of rebate on excisable goods except mineral oil and goods supplied as ship stores.

The circular and the Notification No.41/94 CE(NT) dated 12.9.94 are reproduced in this chapter which are self explanatory regarding the procedure to be followed by the exporter to claim rebate of duty paid on the goods exported.

Q.4           What is the Procedure for exporting goods through post?

A.            Postal articles intended for any permissible foreign destinations may be booked at any of the  post office in India with specific declaration as to the contest land value PP form or No objection certificate from the Reserve Bank of India is required to be enclosed to the parcel depending upon the value of the goods being exported.  No PP form/RBI”No objection certificate” is required if the value does not exceed Rs.30, 000. All such parcels are routed through the ‘foreign post offices’ located in major cities like Delhi, Bombay, Calcutta, Madras, Cochin, and Bangalore.  Customs officers are posted in such ‘foreign post offices’.  The postal authorities present the parcels meant to foreign destinations to the Customs officers who may examine the parcels and allow clearance if there is nothing objectionable.  Thereafter, the postal authorities dispatch the parcels to the respective destinations either by air/sea, depending upon how the parcel is booked by the sender.