export import procedures part 2
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Export and ImportProcedures - Part II
Dr. Anupam Varma
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Central Excise Clearance
All the excisable goods can be removedfrom the factory only after their clearanceby the Central Excise Authorities.
The procedure for clearance of excisablegoods for exports can be classified into thefollowing two categories:
1) Procedure for excise clearance in case of
exempted units2) Procedure for excise clearance in case ofunits other than exempted units
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Definition of Exempted Unit
A manufacturing unit is exempt from thelevy of central excise if the value of the
goods cleared by it for home consumptionin a financial year is within the exemptionlimit of Rs. 50 lakhs.
The exempted units are not required toobtain Central Excise Registration but haveto file a declaration with the Central ExciseDepartment. These units are then allottedthe Declarants Code Number.
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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
IECCode and the Declarants Code Number State that the goods are being cleared for Exports. Give the details of the description of goods, name
and address of the buyer, destination, value, vehiclenumber, date and approximate time of removal ofgoods and progressive total value of all excisable
goods cleared for home consumption since thebeginning of the financial year. File quarterly statement of all the clearances with
CENTRAL EXCISE DEPT in prescribed form enclosingthe proof of export.
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Procedure of Excise Clearance UnitsOther 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.
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 ofbond with security or surety for a sumequivalent to the duty chargeable on thegoods to be exported.
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DOCUMETATION REQUIREMENT FORCENTRALEXCISE CLEARANCE
The basic form used for seeking Central Excise Clearanceis ARE-1 (whether by land/sea/air/post)- Differentcolor of its 5 copies
Original White, returned by excise dept to exporter
immediately after endorsements and signature Duplicate-Buff, returned to the exporter immediately
after endorsements and signature. Triplicate-Pink, Sent to the officer with whom rebate
claim is to be filed Quadruplicate-Green, Retained for official records
Quintuplicate-Blue, Optional copy - returned to theexporter immediately after endorsements andsignature.
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Appointment ofClearing & Forwarding
Agents Main Functions
Main functions of the agent are to
Obtain customs clearance of goods,
Ship them and Procure the relevant transport
document (Bill of Lading or Airway
Bill).
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Appointment ofClearing & Forwarding
Agents Other Important FunctionsPerform a number of functions on behalf of
the exporter
Provide specialized help by undertaking the
procedural and documentary formalities fromexporters warehouse to importer's warehouse
Helping in packing, marking and labeling ofconsignment,
Arrangement for transport to the port, shipmentoverseas, arranging insurance
Customs clearance of cargo,
Procurement of transport and other documents.
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Customs
Clearance - ObjectivesCustoms clearance of import/export goods
under Customs Act 1962
Regulating export/import in a free &
transparent manner as per prescribed lawand control illegal trade
To ensure authenticity of value of exportgoods to check over/under invoicing
To correctly assess and collect export/importduty, if applicable.
To compile data on cargo movements.
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Procedure ofCustom Clearance
Permission is granted in two stages
Checking of shipping document in theCustoms office.
Physical examination of goods in the shipment
shed
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Shipping Bill It is the main document on which customs
clearance given for allowing shipment
Documents required for processing of
shipping bill:a. GR forms in duplicate
b. Four copies of Packing List
c. Four copies of Invoices
d. Contract, L/C, Purchase Ordere. ARE 1 (both original & duplicate)
f. Inspection/Examination Certificate (contd.)
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Shipping Bill(Contd.)
Four types:
a. White shipping bill: for export of duty free
goodsb. Green shipping bill: for export of goods
under claim for duty draw back
c. Yellow shipping bill for export of dutiable
goodsd. Pink shipping bill: for export of duty free
goods ex-bond (imported goods for re-export)
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Appraisal byCustom Authorities
Customs Appraiser examines shippingdocuments and appraises value:
a. That value & qty declared in shipping billis same as in export order/LC
b. That formalities reg exchange control,pre-shipment quality inspection have been
duly completed. Customs Appraiser then makes
endorsement in duplicate copy of shippingbill for Dock Appraiser about extent of
physical examination of cargo (contd.)
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Appraisal by Custom Authorities(contd.)
Carting orders are obtained for bringingexport cargo to transit shed for physicalexamination by Dock Appraiser
Dock Appraiser records examination reportand if satisfied, makes Let Exportendorsement on duplicate copy of shippingbill
The documents then go to PreventiveOfficer of customs dept who supervisesloading of cargo on board the vessel (contd.)
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Appraisal by Custom Authorities
(Contd)
Preventive Officer endorses Let Shipon duplicate copy of shipping bill
which is handed over to the Agent ofshipping company.
This constitutes an authorisation byCustoms to the shipping company to
accept cargo on board the vessel.
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Customs Clearance GreenChannel Facility
Green channel clearance facility to somelarge and status holder exporters for importof raw materials
Clearance of goods is done without routineexamination
Assessment of duty payable is made on basisof documents submitted by importer along
with declaration about correctnessdocuments
In case of doubt customs officials can go forphysical examination
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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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THANK YOU!!!!!!