EXIM &amp FTP

IhPDPT,EXPDPT,
0DCUhENTATIDN
FDPEICN TPA0E PDLICY
y
VaIbhav Nagarkar
0Irector, NC
Agenda
0ocumentatIon: DvervIew - CommercIal and Fegulatory
documents
UnderstandIng nvoIce, PackIng LIst, nspectIon
CertIfIcate, CertIfIcate of DrIgIn, ShIppIng 8Ill, AFE1,
|ate FeceIpt, CF/S0F, 8Ill of exchange, 8ank
FealIsatIon CertIfIcate, 8Ill of LadIng and AIrway 8Ill,
8Ill of Entry etc.
ncoterms
Terms of payment
Letter of credIts Concept, Types of L/C, PartIes to
L/C, L/C mechanIsm.
Agenda
Export Procedures
mport Procedure
Export PromotIon Schemes under ForeIgn Trade PolIcy
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UnderstandIng PoIIcy
ForeIgn Trade PoIIcy :
0rafted by 0Irector Ceneral of ForeIgn Trade under the |InIstry
of Commerce.
mplemented wIth the help of varIous other 0epartments
maInly Customs, ExcIse and F8.
n order to understand the corelatIon, one must get famIlIar
wIth the varIous laws and functIons of varIous departments.
As far as ImplementatIon Is concerned, the corelatIon of
ForeIgn Trade PolIcy wIth the followIng Acts, Laws and
FegulatIons must be taken Into account :
UnderstandIng PoIIcy
ForeIgn Trade PoIIcy :
Customs Act, 1962
Customs TarIff Act, 1975
ForeIgn Exchange |anagement Act, 1999
Central ExcIse Act, 1944
ExcIse TarIff Act, 1985
ndustrIal PolIcy FesolutIon, 1956.
ndustrIes 0evelopment and FegulatIon Act, 1951
Laws of WeIghts and |easures
WhIle some of these laws would be specIfIc In nature
for certaIn commodItIes, the generIc understandIng
should be based on the followIng :
|InIstry of FInance
Customs ExcIse
Coverage Coverage
7alIdIty of Imports and exports Export
Assessment and valuatIon Under bond - clearance of
excIsable goods for export under
bond
0etermInatIon of Import /
export duty applIcable
Febate of excIse duty post exports
where exports have been effected
after payment of excIse duty
CollectIon of duty |onItorIng factory stuffed
contaIners In certaIn cases
nspectIon and supervIsIon
of cargo
Import
ExamInIng corelatIon
and complIance wIth other laws
|onItorIng CEN7AT
C
o
n
t
d.
ContInued from the prevIous slIde

CovernIng ActslLawslhanuaI CovernIng ActslLawslhanuaI
1. Customs Act, 1962 1. Central ExcIse Act, 1944
2. Customs TarIff Act, 1975 2. Central ExcIse TarIff Act, 1985
J. Customs Law |anual J. Central ExcIse Law |anual
Tools : I) NotIfIcatIons
II) PublIc NotIces
III) Customs CIrcular
Iv) Ceneral ExemptIon
NotIfIcatIons
Tools : I) NotIfIcatIons
II) Central ExcIse CIrculars
III) Ceneral ExemptIon
NotIfIcatIons
F8
Coverage
|onItorIng ForeIgn Exchange
nflow - on account of exports of goods and servIces
Dutflow - on account of Imports of goods and servIces
CovernIng ActslLawslhanuaI
1) ForeIgn Exchange |anagement Act 1999
2) ForeIgn Exchange |anual
TooIs:
|aster CIrculars
FE|A NotIfIcatIons
A.P. (0F. Srs.) CIrculars
ln order to understand jull mlcatons oj

Foreyn Trade Polcy one must yet hmselj
jamlarzed wth all the above mentoned
deartments and ther workny
PurvIew of
Export-Import
nowIedge
of
harket
nowIedge
of
Product
nowIedge
of
IncentIves
Proforma
InvoIce
SampIe If
necessary
ConfIrmatIon
of Export
Contract
Payment
terms
ScrutIny
of LlC
Amendments
If Necessary
PreparatIon
of PhysIcaI
Exports
enefIts
ExecutIon
ContInued..
Product
CostIng
FLDW CHAPT - I
FLDW CHAPT - I (contInue from the prevIous sIIde)

Pre
ShIpment
Post
ShIpment
ConfIrmatIon from uyer of
PeceIpt of Coods
Payment
PeaIIsatIon
PeaIIsatIon
of enefIts
Statutory
Pecords
DvervIew of
0ocumentatIon
SIgnIfIcance of 0ocumentatIon
0ocuments are Important for the foIIowIng reasons:
(a) as an evIdence of shIpment and tItle of goods;
(b) for obtaInIng payment;
(c) to provIde a specIfIc and complete descrIptIon of the goods;
(d) for assessment of correct 0uty for clearance purpose;
(e) for obtaInIng Export LIcences;
(f) for obtaInIng export fInance;
(g) for completIng PreshIpment nspectIon;
(h) for claImIng export benefIts lIke 0uty 0rawback, etc.
CommercIaI l PeguIatory
0ocuments
CommercIal set of documents are maInly used for
Commerce. n other words these are documents
normally exchanged between buyer and seller.
Fegulatory documents are requIred In dealIng wIth
varIous regulatory authorItIes such as customs, F8,
ExcIse, LIcencIng authorItIes nspectIon and other
Export PromotIon bodIes for avaIlIng IncentIves etc.
CommercIaI l PeguIatory
0ocuments
0ocuments are categorIzed Into two categorIes, namely
CommercIal 0ocuments and Fegulatory 0ocuments.
CommercIaI PeguIatory
CommercIal nvoIce ShIppIng 8Ill
nspectIon CertIfIcate AFE1 from (ExcIse)
nsurance CertIfIcate F8 0eclaratIon Forms (CF/PP)
8Ill of LadIng / AW8 ApplIcatIon for remIttance of
currency
CertIfIcate of DrIgIn 7arIous LIcences
8Ill of Exchange 8Ill of Entry
ShIpment AdvIce
PackIng LIst
CommercIaI l PeguIatory 0ocuments

FeferrIng to the CommercIal set of documents, It may
please be observed that these set of documents are
prepared from other set of documents (some of these
only). These are known as auxIlIary documents.
These documents may not be requIred by the foreIgn
buyer, but these are must for preparatIon of maIn
export documents, known as PrIncIple CommercIal
0ocuments.
CommercIaI 0ocuments
8. Letter to 8ank for negotIatIon
of documents
8. 8Ill of Exchange
7. ShIppIng nstructIons 7. PackIng LIst
6. ShIppIng order 6. ShIpment AdvIce
5. |ate FeceIpt 5. 8Ill of LadIng
4. ApplIcatIon for CertIfIcate of
DrIgIn
4. CertIfIcate of DrIgIn
J. 0eclaratIon for nsurance J. nsurance CertIfIcate
2. ntImatIon for nspectIon 2. nspectIon CertIfIcate
1. Proforma nvoIce 1. CommercIal nvoIce
AuxIIIary PrIncIpaI
Export 0ocumentatIon
Export Sales Contract
PreshIpment 0ocuments
PostshIpment 0ocuments
Export SaIes Contract

What Is Export SaIes Contract!
Agreement between buyer and seller, stIpulatIng
each and every detaIls of the transactIon.
Legally bIndIng document.
t reduces the probabIlItIes of dIsputes E dIfferences
as It fIxes the role and responsIbIlItIes of each party.

Terms and CondItIons:
WhIle draftIng the sales contract one must ensure the
followIng:
1. Coverage Is complete.
2. |axImum clarIty.
J. Future probabIlIty to be provIded.
4. Trade practIces.
5. Law of both countrIes
6. Need of both partIes.
There should not be any ambIguIty regardIng the exact
specIfIcatIons of goods and terms of sale IncludIng export prIce,
mode of payment, storage and dIstrIbutIon methods, type of
packagIng, port of shIpment, delIvery schedule etc.

FoIIowIng standard terms and condItIons are covered In an
Export SaIes contract: -
W Name E address of both the partIes.
W Contract Number E 0ate, place
W 0escrIptIon of goods, quantIty and quantIty
W Product Standards and TechnIcal SpecIfIcatIons of goods.
W nspectIon/certIfIcatIon
W Total 7alue of Contract
W Terms of delIvery (F.D.8./C.F.F./C..F. etc.),
W PerIod of 0elIvery/ShIpment, part shIpment, Trans
shIpment.
W Terms of payment: L/C, 0/A, 0/P, advance payment,
Amount/|ode E Currency
Contd...

W Taxes, 0utIes and charges
W PackIng, LabelIng, |arkIng, etc.
W 8rokerage/commIssIons and dIscounts
W LIcences and PermIts
W nsurance FequIrements, CertIfIcates of nsurance
W 0ocumentary FequIrements
W Performance guarantee
W SIgnature by all partIes to the contract.
W Force |ajeure of Excuse for Nonperformance of contract
W FemedIes
W ArbItratIon.
Standard Export Sales Contract forms are also avaIlable. These
can be used as It Is or wIth some modIfIcatIon as per IndIvIdual
need.
Pre-shIpment 0ocuments
0ocuments at preshIpment stage are those documents,
whIch are requIred to be made, tIll the consIgnment Is
presented to the customs department for clearance.
The followIng documents can, therefore, be treated as
preshIpment documents:
Proforma nvoIce
ConfIrmed order or contract
Letter of CredIt
PreshIpment nspectIon CertIfIcate
PackIng lIst
ShIppIng 8Ill
Export 0eclaratIon Forms (CF/S0F)
AFE
Post-shIpment 0ocuments
0ocuments at PostshIpment stage are naturally those
whIch are prepared after the shIpment.
These documents Include the followIng:
|ate FeceIpt
8Ill of LadIng
AIrway 8Ill
Foadway/FaIlway 8Ill
Post Parcel/ CourIer FeceIpt
nvoIces (IncludIng consular InvoIce)
CertIfIcate of DrIgIn
nsurance CertIfIcate or PolIcy
8Ill of Exchange
8FC
0ocuments for avaIIIng varIous Export

enefIts
0ocuments are also dIvIded, dependIng upon, whether
the benefIt has to be claImed prIor to exports or after
the exports.
For claImIng benefIts one has to make dIfferent
applIcatIons wIth varIous government authorItIes.
Contd..

enefIts
At the pre-shIpment stage the foIIowIng documents
are note-worthy.
ApplIcatIon for preshIpment fInance from the bank.
ApplIcatIon of Advance AuthorIzatIon or 0uty Free mport
AuthorIsatIon wIth 0CFT.
ApplIcatIon for executIon of 8ond wIth Central ExcIse
authorItIes.
ApplIcatIon for obtaInIng CT1 In case of a |erchant Exporter

enefIts
At the post shIpment stage, the foIIowIng documents
are note-worthy.
ApplIcatIon of 0uty EntItlement Pass 8ook.
ApplIcatIon for Focus |arket or Focus Product Scheme.
ApplIcatIon for fIxatIon of 8rand rate of 0rawback
Import 0ocumentatIon
Important 0ocuments-Imports
nvoIce
PackIng lIst
8Ill of LadIng or 0elIvery Drder/AIrway 8Ill
CATT declaratIon form duly fIlled In
mporters/declaratIon
LIcence/AuthorIsatIons In orIgInal wherever necessary
Letter of CredIt/8ank 0raft/wherever necessary
nsurance document
mport lIcense
ndustrIal LIcense, If requIred
Test report In case of chemIcals
Catalogue, TechnIcal wrIte up, LIterature In case of machInerIes,
spares or chemIcals as may be applIcable
Separately splIt up value of spares, components, machInerIes
CertIfIcate of DrIgIn, If preferentIal rate of duty Is claImed
No CommIssIon declaratIon
UnderstandIng 0ocuments
All documents whether It Is for export or Import transactIon
generally contaIn followIng InformatIon
Name and address of the exporter and Importer
0ocument No. and date.
Drder No. and date
Port of dIscharge
Port of destInatIon
Country of orIgIn
0escrIptIon of Coods
|arks and nos., model nos. [If any]
WeIght
TC HS Code No.
7alue
Currency
Terms of payment
Terms of shIpment etc.
However, dependIng upon the nature of the document,
specIfIc InformatIon Is to be mentIoned.
For e.g. apart from the above detaIls, ShIppIng 8Ill wIll
Include what export benefIt Is beIng claImed agaInst
that partIcular shIpment, etc. SImIlarly, PackIng LIst
wIll gIve InformatIon about how goods are packed.
Let us now study each document In depth.
InvoIce
t Is ItemIzed statement prepared and Issued by a seller
at the tIme of dIspatchIng the goods to the buyer.
It heIps the Customs AuthorItIes to:
ensure that goods shIpped are permItted by the export polIcy.
compute the customs duty, If any, payable on the export or the
Import.
check the quantIty of goods. They generally open a few
packages at random and check the veracIty of detaIls In the
InvoIce.
check If there Is any overInvoIcIng or underInvoIcIng (that
may be resorted to by the Importer to reduce the Import duty
payable).
InvoIce
nvoIces are often called bIlls.
7arIous types of InvoIces used In nternatIonal Trade
are
W Proforma nvoIce
W CommercIal nvoIce
W Consular nvoIce
W LeagalIzed nvoIce
W Customs nvoIce
PackIng LIst
t Is a consolIdated statement In a prescrIbed format detaIlIng how
goods are packed, marked and numbered IncludIng weIght and
dImensIons of each package.
t Is useful for customs at the tIme of examInatIon and warehouse
keeper of buyer to maIntaIn Inventory record and to effect
delIvery.
t have many detaIls common from InvoIce but It does not IndIcate
unIt rate value of goods.
The exporter or hIs/her agent, the customs broker or the freIght
forwarder, reserves the shIppIng space based on the gross weIght
or the measurement shown In the packIng lIst.
PackIng LIst
Customs uses It as a checklIst to verIfy:
the outgoIng cargo (In exportIng) and
the IncomIng cargo (In ImportIng).
8asIc functIons of PackIng LIst are:
To confIrm the contents of a shIpment as It left the exporter's
premIses.
To IndIcate weIghts, measures and the pIece count (I.e. the
number of cartons or cases) In that shIpment.
t Is prepared In 710 copIes or as per the requIrement.
InspectIon CertIfIcate
CertIfIcate of nspectIon" Is Issued by the nspectIon Agency
concerned certIfyIng that the consIgnment has been Inspected
before shIpment as per the requIrements of the Exports (QualIty
Control and nspectIon) Act, 196J.
t satIsfIes the condItIons relatIng to qualIty control and InspectIon
as applIcable to It and Is certIfIed export worthy.
ThIs certIfIcate Is requIred:
by customs before allowIng shIpment of goods or
by a banker to negotIate the documents.
ThIs certIfIcate bears cross references of InvoIce or contract
number.
InspectIon CertIfIcate
InspectIon can be done by
nspectIon Agency appoInted by the Covernment of ndIa, I.e.
Export nspectIon Agency, TextIle CommIttee, Central SIlk
8oard etc.
nspectIon Agency may also be nomInated by ImportIng
countrIes' Covernment I.e. SCS and D|C by some AfrIcan
CountrIes.
SometImes buyer hImself appoInts an Independent prIvate
Inspector to Inspect the goods.
f an InspectIon Is a part of transactIon, then exporter Is requIred
to arrange for necessary InspectIon.
t can be a certIfIcate of qualIty, weIght, analysIs, or the lIke.
CertIfIcate of DrIgIn [CDDj

t Is a certIfIcate IndIcatIng the fact that the goods whIch have
been exported have orIgInated or manufactured In a partIcular
country. So It Is a sort of declaratIon testIfyIng the orIgIn of
export.
t Is normally requIred by an Importer to clear goods from the
customs.
For polItIcal and socIal reasons, It Is InsIsted by Customs AuthorIty
of ImportIng country before goods are allowed to enter In the
country.
t helps the Importer to take an advantage In duty concessIon, If
any. For e.g. goods Imported under Free Trade Agreement.
CertIfIcate of DrIgIn [CDDj

Dn the basIs of CDD, Customs can ensure that certaIn
prohIbIted goods of partIcular countrIes are not Imported.
t also ensures that goods have not been reshIpped by a
seller who has brought them Into hIs own country from some
other place of orIgIn.
t Is sent to the Importer by the exporter.
t Is Issued or sIgned by an Independent offIcIal organIzatIon,
such as a Chamber of Commerce, on prescrIbed form.
CertIfIcate of DrIgIn
These are often requIred:
to meet Customs requIrements In the ImportIng state
to comply wIth 8ankIng requIrements
for other offIcIal and commercIal reasons.
There are two categorIes of CertIfIcate of DrIgIn :
1. PreferentIal CertIfIcate of DrIgIn and
2. NonpreferentIal CertIfIcate of DrIgIn
PreferentIaI CertIfIcate of DrIgIn

t entItles preferentIal treatment In duty In the
ImportIng country.
These certIfIcates are governed by rules of orIgIn whIch
are always part of PreferentIal TradIng Agreements
entered Into between two or more countrIes.
As far as ndIa Is concerned the followIng agreements
are noteworthy:
W CeneralIsed System of Preferences (CSP)
W SAAFC PreferentIal TradIng Agreement (SAPTA)
W AsIa PacIfIc Trade Agreement (APTA)
W ndIaSrI Lanka Free Trade Agreement (SLFTA)
PreferentIaI CertIfIcate of DrIgIn

Some of the agencIes whIch are authorIsed to Issue
PCDD are:
W Export nspectIon AgencIes - All products.
W 0Irectorate Ceneral of ForeIgn Trade E Its regIonal offIces
All products.
W SpIces 8oard, |InIstry of Commerce E ndustry SpIces and
Cashewnuts
W Central SIlk 8oard through 8 regIonal offIces all over ndIa
SIlk Products.
W CoIr 8oard - CoIr and CoIr Products.
W TextIle CommIttee TextIles and madeups
Non-preferentIaI CertIfIcate of DrIgIn

t evIdences the orIgIn of goods and do not bestow any
rIght to preferentIal tarIffs.
The Covernment has also nomInated certaIn authorIsed
agencIes to Issue Non PreferentIal CertIfIcate of DrIgIn
In accordance wIth ArtIcle of nternatIonal
ConventIon FelatIng to SImplIfIcatIon of Customs
formalItIes.
ShIppIng bIII
ShIppIng 8Ill Is an Important document requIred to seek permIssIon
of customs to export goods by Sea/AIr. t Is prepared by the
exporter and submItted to the Customs.
The exporter of any goods has to fIle a SHPPNC 8LL" as an entry
for the purpose of export by aIr or sea and a 8LL DF EXPDFT" In
respect of export by land.
Cargo wIll be allowed to be carted to 0ock/Port sheds only after
stampIng and passIng of the shIppIng bIll by customs authorItIes.
The exporter has to sIgn a declaratIon In the ShIppIng 8Ill regardIng
the truth of Its contents.
ShIppIng bIII
ShIppIng III normaIIy contaIns:
W the name and address of the Importer/consIgnee and
exporter,
W InvoIce number and date,
W name of vessel carryIng the goods,
W name of master or agents,
W port at whIch goods are to be dIscharged,
W country of fInal destInatIon,
W descrIptIon of goods, quantIty detaIls of each case,
W value of the goods as defIned In the Sea Customs Act,
W number of packages wIth total weIght,
W marks and numbers, etc.
ShIppIng bIII
Types of ShIppIng IIIs:
FPEE SHIPPINC ILL: Used for export of goods whIch neIther
attract any Export duty/cess nor entItled to any 0uty 0rawback
0UTIALE SHIPPINC ILL: Used when export goods are subject
to Export 0uty/Cess. 0uty Is charged eIther on quantIty basIs
(FIxed amount per kg. or per |etrIc tonne) or on certaIn
percentage of assessable value.
0PAWAC SHIPPINC ILL: Used when 0uty 0rawback Is to be
claImed.
SHIPPINC ILL FDP SHIPhENT EX-DN0: Used when the goods
are to be exported whIch have been Imported earlIer and kept
In bond prIor to reexport.
ShIppIng bIII
Types of ShIppIng IIIs:
0EP SHIPPINC ILL: When 0EP8 benefIt Is to be claImed.
0EEC SHIPPINC ILL: ThIs shIppIng bIll Is used for export of
goods under Advance AuthorIsatIon (0uty exemptIon scheme).
0EEC CUh 0PAWAC SHIPPINC ILL: ThIs shIppIng bIll Is used
for export of goods where both the schemes 0uty ExemptIon as
well as 0rawback are to be taken Into account.
ShIppIng bIII
ShIppIng bIll Is requIred to be submItted In quadruplIcate. f
0rawback/0EP8 claIm Is to be made, one addItIonal copy should
be submItted.
CopIes of ShIppIng III are as under:
Customs Copy: For record of Customs
Exporter's Copy: For record of Exporters/ Exporter may forward It
to shIppIng company.
Export PromotIon Copy: For offIce of 0CFT. ThIs copy Is the most
Important document for claImIng duty NeutralIsatIon/ExemptIon
benefIts plus export IncentIves wherever applIcable.
Exchange ControI Copy: For negotIatIng the export documents In
bank. t Is Proof of export for exchange purposes.
0EP Copy: For use In the Import cell of customs for regIstratIon of
lIcence.
APE
AFE stands for applIcatIon for removal of excIsable
goods for exports by AIr/Sea/ Post/Land.
Coods whIch are sold overseas are exempted from
payment of excIse duty or entItled for Febate of ExcIse
0uty, If excIse paId goods are exported. Under both
these cIrcumstances, the document to be used Is AFE.
When goods are removed wIthout payment of duty for
the purpose of export, they wIll get covered under the
provIsIons of Fule 19 of the Central ExcIse Fules.
APE
When excIse paId goods are exported and rebate of
ExcIse 0uty Is to be claImed, they wIll get covered
under Fule 18 of Central ExcIse Fules.
AFE Is prepared before clearance of goods from the
factory gate.
AFE wIll specIfy whether goods are exported under Fule
19 or under Fule 18.
APE
There are three types of APE:
a) APE 1: Is used for physIcal export of goods.
b) APE 2: Is used when goods are removed for
manufacture and packIng of the goods to be exported.
c) APE 3: Is used when goods are supplIed as deemed
exports.
hate PeceIpt
|ate's receIpt Is a receIpt Issued by the |aster or |ate of the
vessel statIng that certaIn goods have been receIved on board hIs
vessel.
t Is prImafacIe evIdence that the goods are loaded In the vessel.
t contaIns:
the name of shIppIng lIne and vessel,
port of loadIng, port of dIscharge and place of delIvery,
marks and numbers,
number and kInd of packages, gross weIght,
descrIptIon of goods,
contaIner status/seal number,
shIppIng bIll number and date and
condItIon of cargo at the tIme of Its receIpt on board the vessel.
t Is serIally numbered.
hate PeceIpt
Port authorItIes recover port dues from exporter on productIon of
thIs receIpt.
Dn payment of 0ock dues, the exporter or hIs agent collects the
receIpt from the PortTrust authorItIes and hands over to shIppIng
company for preparIng 8Ill of LadIng.
8Ill of LadIng Is prepared on the basIs of |ate's FeceIpt.
t Is of a transferable nature.
n case of ascertaInIng the exact date of shIpment, the mate's
receIpt date Is also very Important.
Normally, the date of Export Is regarded as the date of |ate
FeceIpt or the date of 8Ill of LadIng, whIchever Is later".
Export 0ecIaratIon Forms (CPlS0F)

As per the exchange regulatIons, exporters, wIshIng to shIp goods
abroad, are requIred to submIt Export 0eclaratIon Forms to the
Customs authorItIes (whenever the value of the shIpment exceeds
US S 25,000) before any export of goods from ndIa Is made.
t Is to be fIled by exporter statIng that export proceeds would be
realIzed wIthIn 180 days for nonstatus holder exporters and J60
days for status holder exporters.

CF
Form
: Used for exports to all countrIes made other than by
post IncludIng export of software In physIcal form I.e.
magnetIc tapes/dIscs and paper medIa When S/8 Is
fIled manually. [prepared In duplIcate]
S0F
Form
: Appended to the shIppIng bIll, for exports declared to
Customs DffIces notIfIed by the Central Covernment
whIch have Introduced ElectronIc 0ata nterchange (E0)
system for processIng shIppIng bIlls notIfIed by the
Central Covernment. [prepared In duplIcate]
Felevant 0eclaratIon Forms, as prescrIbed by F8 under
ForeIgn Exchange |anagement (Export of Coods and
ServIces) FegulatIons, 2000.

These forms normaIIy contaIn:
Name and address of exporter, EC code number and descrIptIon of
goods.
Name and address of authorIsed dealer through whom the proceeds of
the exports have been, or wIll be, realIsed.
0etaIls of commIssIon due to foreIgn agent or buyer should be
correctly declared. DtherwIse, dIffIcultIes may arIse at the tIme of
remIttances of such commIssIon/ payment. An exporter should note
thIs poInt very carefully.
t should be clearly IndIcated whether the export Is on DutrIght Sale
8asIs" or Dn ConsIgnment 8asIs"
An exporter Is requIred to gIve analysIs of full export value, a break
up of FD8 value, freIght, Insurance, dIscount, commIssIon, etc.
An exporter has to mentIon the perIod wIthIn whIch he wIll realIse full
export value of transactIon. f the shIpment Is on 0A terms, then an
exporter has to brIng forex wIthIn that perIod. However, normally
maxImum perIod allowed Is 180 days.
Statutory 0ecIaratIon Form [S0Fj

Procedure for 0IstrIbutIon l dIsposaI of copIes of S0F
The S0F form should be submItted In duplIcate (to
be annexed to the relatIve shIppIng bIll) to the
CommIssIoner of Customs concerned.
After verIfyIng and authentIcatIng the declaratIon In
form S0F, the CommIssIoner of Customs wIll hand
over to the exporter, one copy of the shIppIng bIll
marked 'Exchange Control Copy' In whIch form S0F
has been appended for beIng submItted to the bank
wIthIn 21 days from the date of export.
Statutory 0ecIaratIon Form [S0Fj

8anks should accept the Exchange Control (EC) copy
of the shIppIng bIll and form S0F appended thereto,
submItted by the exporter for collectIon/negotIatIon
of shIppIng documents.
The manner of dIsposal of EC copy of shIppIng 8Ill
(and form S0F appended thereto) Is the same as that
for CF forms.
III of Exchange
8Ill of Exchange [8E] Is a document drawn and Is an
order by the exporter to the buyer to pay the money In
specIfIed exchange.
t Is also known as a draft.
A bIll of exchange Is accompanIed by commercIal
documents whIch are presented by a bank and released
to the buyer eIther agaInst payment (at sIght) or
agaInst a sIgnature for payment on a specIfIed future
date.
t Is an uncondItIonal wrItten order.
III of Exchange
When a 8E Is drawn on foreIgn fIrm It Is termed as a
foreIgn draft or bIll of exchange.
t Is prepared eIther In an InternatIonal currency or
ndIan rupees dependIng on the terms of the contract.
AccordIngly, the bIll Is known by the name of currency
In whIch It Is drawn.
e.g. a bIll drawn In US dollars Is known as a 0ollar
8Ill" and when drawn In Fupees, It Is termed as
Fupees 8Ill".
III of Exchange
The most common versIons of a bIII of exchange are:
A) SIght 0raft -
When the drawer (exporter) expects the drawee
(Importer) to make payment ImmedIately upon the
draft beIng presented to hIm.
Unless and untIl the 0raft Is receIved, the
NegotIatIng/ CollectIng 8ank does not hand over the
ShIppIng documents and the buyer cannot take
delIvery of goods.
III of Exchange
) Usance 0raft -
When draft Is drawn for payment at a date later
than the date of presentatIon.
t may be a fIxed future (specIfIc) date or
determInable date accordIng to the perIod of credIt
vIz. J0 days, 60 days or 90 days etc.
t Is presented to the drawee (Importer) who wIll
retIre the documents by acceptIng the draft by
puttIng hIs sIgnature and date.
III of Exchange
When the payment Is receIved In advance no 8Ill of
Exchange Is requIred to be drawn.
PartIes to a bIII of exchange
I. 0rawer - who makes the order for makIng
payment.
II. 0rawee - whom the order to pay Is made.
III. Payee - whom the payment Is to be made.
III of Exchange
Features of a III of Exchange:
A bIll must be In wrItIng, duly sIgned by Its drawer,
accepted by Its drawee and properly stamped.
t must contaIn an order to pay. Words lIke 'please
pay US S 5,000 on demand and oblIge' are not used.
The order must be uncondItIonal.
The sum payable mentIoned must be certaIn or
capable of beIng made certaIn.
The partIes to a bIll must be certaIn.
ank PeaIIsatIon CertIfIcate

Dnce the export proceeds are realIsed, the exporter
has to prepare 8ank CertIfIcate of Export and
FealIsatIon for the purpose of claImIng export benefIts,
IncentIves, etc.
t Is prepared as per Form No.1, gIven In AppendIx 22A
of Handbook of procedures 200409 (7ol. ).
To prepare thIs certIfIcate, the date of realIsatIon Is
most essentIal, as the exporters have to apply for the
export benefIts, IncentIves, etc. wIthIn sIx months
followIng the month/quarter of the realIzatIon month.

t Is sIgned by the authorIzed sIgnatory of the
fIrm/company wIth full name In block letters wIth
desIgnatIon, full offIcIal and resIdentIal addresses.
8ankers attest thIs certIfIcate as true and correct after
verIfyIng the partIculars, IncludIng the date of mate
receIpt. ThIs date Is the most Important, as thIs Is the
actual date of export.

t Is sIgned by an authorIzed sIgnatory of the bank wIth
hIs name and desIgnatIon.
8ankers affIx certIfIcate number and date and also
mentIon the AuthorIzed ForeIgn Exchange 0ealer's Code
number allotted to 8ank by Feserve bank of ndIa.
For thIs purpose, thIs certIfIcate must be accompanIed
wIth the followIng documents:
A copy of InvoIce,
A copy of customs attested export promotIon copy of the
shIppIng bIll,
A copy of 8Ill of LadIng/ PP receIpt/ AIrway bIll,
A copy of the Insurance certIfIcate/nsurance polIcy/cover.
III of LadIng (lL)

8Ill of LadIng Is the transport document assocIated wIth
Sea freIght.
t Is Issued by the ShIppIng Company or Its agent or
master of a shIp acknowledgIng that specIfIed goods
have been receIved on board as cargo for conveyance
to a named place for delIvery to the consIgnee who Is
usually IdentIfIed.
t Is a document of tItle to the goods and, as such, Is
freely transferable by endorsement and delIvery.
III of LadIng (lL)

8Ill of LadIng serves three purposes as:
PeceIpt gIven by ShIppIng Company as goods descrIbed on
document has been receIved by It/carrIer.
EvIdence of the contract of carrIage by sea between the
shIppIng company and the shIpper (exporter or Importer).
0ocument of tItIe to the goods and can be used to obtaIn
payment or a wrItten promIse before the merchandIse Is
released to the Importer.
For the bIll of ladIng to be negotIable It must be:
1. made out to the order to the shIpper.
2. sIgned by the steamshIp company.
J. endorsed In blank by the shIpper.
III of LadIng (lL)

t Is the onIy evIdence to fIle a claIm agaInst the
shIppIng company In the event of nondelIvery,
defectIve delIvery or shortdelIvery of the cargo at the
destInatIon.
For preparatIon of 8/L the exporter should submIt the
complete set of 8/L together wIth mate receIpt to the
shIppIng company whIch wIll calculate the freIght
amount on the basIs of measurement or weIght.
Dn payment of freIght, the shIppIng company returns
the 8/L duly sIgned and supported by requIsIte
adhesIve stamps.
III of LadIng (lL)

Cenerally made out In the sets of two or three orIgInals
duly sIgned by the master of the shIp or the agent of
the steamshIp company.
All the orIgInals are equally valId for takIng the delIvery
of the goods. Dnce one orIgInal Is utIlIsed the other
orIgInals become null and voId.
|arked as 'NonnegotIable copy' cannot be utIlIsed for
takIng the delIvery of goods.
III of LadIng (lL)

III of LadIng contaIns the foIIowIng InformatIon:
ShIppIng company's name and address.
ConsIgnee's name and address.
NotIfy party
Name of the vessel,
Port of loadIng/ShIpment and port of dIscharge.
ShIppIng marks and Numbers, CubIc measurements, weIghts
0escrIptIon of the goods
Number of packages.
ShIpped on board wIth daterubber stamp.
Cross weIght and net weIght.
FreIght detaIls
SIgnature of the shIppIng company's agent.
ContaIner number If any.
ShIpper's name and address.
8/L Number and 0ate
DrIgInals
Terms (on reverse)
III of LadIng (lL)

III of LadIng can be further descrIbed as under:-
ShIpped on oard :- When goods are actually shIpped on
board.
PeceIved for shIpment :- When goods have been handed over
to agent for shIpment.
Through lL:- When two or more carrIers/ dIfferent modes of
transport form I.e. road, raIl, aIr, and sea employed to reach
goods to theIr fInal destInatIon.
III of LadIng (lL)

TranshIpment lL:- When there Is no dIrect servIce between
the two ports and shIpowner Is prepared to transhIp the goods
at an IntermedIate port.
StaIe lL:- I.e. a late 8/L that has been held too long before It
Is passed on to a bank for negotIatIon or to the consIgnee.
CIean lL:- Where the carrIer has noted that the goods have
been receIved or loaded In 'apparent good condItIon' (no
apparent damage, loss, etc.).
III of LadIng (lL)

CIaused lL:- WhIch contaIns addItIonal clauses/notatIons
lImItIng the responsIbIlIty of the shIppIng company whIch
specIfy defIcIent condItIon(s) of the goods and/or packagIng.
CombIned Transport lL:- When dIfferent modes of transport
are used; usually Issued when goods stuffed at shIpper's
premIses and delIvered at consIgnee's premIses.
III of LadIng (lL)

Charter Party lL:- Where a shIpper has contracted wIth a
shIppIng lIne to charter a vessel for the movement of cargo. t
Is Issued by the carrIer or Its agent In the charter shIppIng.
Unless otherwIse authorIzed In the letter of credIt (L/C), the
charter party 8/L Is not acceptable In the L/C negotIatIon.
FreIght PaId lL:- When freIght Is paId at the tIme of
shIpment or In advance, the 8/L Is marked, freIght paId.
FreIght CoIIect lL:- When the freIght Is not paId and Is to be
collected from the consIgnee on the arrIval of the goods, the
8/L Is marked, freIght collect.
III of LadIng (lL)

NegotIabIe lL:- t Is a tItle document to the goods, Issued to
the order of" a party, usually the shIpper, whose endorsement
Is requIred to effect It's negotIatIon. Thus, a shIpper's order
(negotIable) 8/L can be bought, sold, or traded whIle goods
are In transIt and Is commonly used for letter of credIt
transactIons.
AIrway III (AW)

AIrway 8Ill Is a transport document assocIated wIth AIrfreIght.
t serves as a receIpt for goods and an evIdence of the contract of
carrIage, but It Is not a document of tItle to the goods. Hence,
the AW8 Is nonnegotIable.
t contaIns the followIng detaIls:
number of packages
dImensIons or volume
gross weIght
shIppIng marks
The goods In the aIr consIgnment are consIgned dIrectly to the
consIgnee.
AIrway III (AW)

Dn the reverse sIde of the aIrway bIll are the aIrlIne's terms and
condItIons of carrIage whereby an aIrlIne Is oblIgated to transport
a consIgnment to Its fInal destInatIon once It has confIrmed
receIpt of the shIpper's consIgnment.
AIrway bIII can be comprIsed In two parts:
hAW (|aster AIrway bIll) - shIpments sent on a dIrect basIs,
not consolIdated.
HAW (House AIrway bIll) - shIpments sent on a consolIdatIon
basIs whereby groupIng together varIous clIents consIgnments
under one |AW8 beIng Issued by the freIght forwarder.
III of Entry
The document on the strength of whIch cIearance of
Imported goods can be affected Is known as III
Entry, the form of whIch has been standardIzed by
the CentraI oard of ExcIse and Customs.
Every Importer has to submIt It under sectIon 46 of
the Customs Act, 162.
Under E0I system, III of Entry Is actuaIIy prInted on
computer In trIpIIcate onIy after 'out of charge'
order Is gIven. 0upIIcate copy Is gIven to Importer.
III of Entry
SaIIent features of a III of Entry whIch Is to be
presented for cIearance of goods for home
consumptIon are mentIoned beIow:
DrIgIn E 7essels PartIculars
PartIculars of the Coods
7alue
0utIes LevIable
Code
0eclaratIon of mporters/ClearIng Agents
Types of III of Entry - There are three types. Dut of these,
two types are for clearance from customs whIle thIrd Is for
clearance from warehouse.
III of Entry
ILL DF ENTPY FDP HDhE CDNSUhPTIDN - When the
Imported goods are to be cleared on payment of full duty.
Home consumptIon means use wIthIn ndIa.
ILL DF ENTPY FDP WAPEHDUSINC - f the Imported goods
are not requIred ImmedIately, Importer may lIke to store the
goods In a warehouse wIthout payment of duty under a bond
and then clear from warehouse when requIred on payment of
duty. ThIs wIll enable hIm to defer payment of customs duty
tIll goods are actually requIred by hIm.
t Is also called 'Into ond III of Entry' as bond Is executed
for transfer of goods In warehouse wIthout payment of duty.
ILL DF ENTPY FDP EX-DN0 CLEAPANCE - t Is used for
clearance from the warehouse on payment of duty.
III of Entry
0ocuments requIred by customs authorItIes are requIred to be
submItted to enable them to (a) check the goods (b) decIde value
and classIfIcatIon of goods and (c) to ensure that the Import Is
legally permItted.
0ocuments presented to customs along wIth the 8Ill of Entry
generally Include:
W InvoIce,
W PackIng LIst,
W III of LadIng or 0eIIvery Drder,
W Import LIcence(s) l Customs CIearance PermIt,
W Letter of CredIt l ank 0raft wherever necessary
W Insurance PoIIcy,
W CertIfIcate of DrIgIn etc.
W CATT decIaratIon form duIy fIIIed In
W Importers l CHAs decIaratIon duIy sIgned
TIps for Proper 0ocumentatIon

mplIcatIons of all Fegulatory documents must be studIed
carefully. For example; declaratIon on AFE1 forms.
FIlIng of ShIppIng 8Ill electronIcally requIres correct entrIes
IncludIng HS code for the product. |any tImes, small mIstakes
are extremely dIffIcult to correct later on.
ShIppIng bIlls must be fIled accordIng to the scheme the
exporter wants to avaIl . For example; 0EP8 /0FA/0rawback
etc.
Extra care should be taken when combInatIon of schemes Is
Intended to be used. For example; 0EEC - 0rawback.
CorelatIon between customs, excIse and 0CFT Is extremely
Important. |any tImes documents do not match wIth each
other, whIch results In delay or denyIng of some benefIt under
one or the other scheme.
TIps for Proper 0ocumentatIon

Each regulatory document Is Important from the poInt of vIew
of claImIng varIous benefIts assocIated wIth exports. Each
document therefore should be carefully looked Into as to
correctness of the contents, descrIptIon, quantIty, weIght,
currency, declaratIon etc.
|aIntenance of statutory records: SInce most of the schemes
are In the nature of the exemptIon / remIssIon of the duty,
documentary complIances are InsIsted upon by all the
government departments. For example; AppendIx 2J -
ConsumptIon regIster.
NCDTEF|S 2000
INCDTEPhS 2000
INTPD0UCTIDN
n theIr sales contract buyer and seller agree on the
condItIons of sale : payment on the one hand and
delIvery on the other. These terms determIne at what
precIse locatIon the ownershIp of the goods Is
transferred from seller to buyer and when/how
payment wIll be done. n InternatIonal trade a
unIversal set of rules on delIvery has been developed
over the years. t Is called INCDTEhPS.
Incoterms 2000
Croup E
0eparture
EXW Ex Works
Croup F
|aIn carrIage unpaId
FCA
FAS
FD8
Free CarrIer
Free alongsIde shIp
Free on board
Croup C
|aIn carrIage paId
CFF
CF
CPT
CP
Cost and FreIght
Cost, nsurance, FreIght
CarrIage PaId to
CarrIage and nsurance PaId to
Croup 0
ArrIval
0AF
0ES
0EQ
00U
00P
0elIvered at FrontIer
0elIvered Ex ShIp
0elIvered Ex Quay
0elIvered 0uty UnpaId
0elIvered 0uty PaId
(Note, that when the ncoterms IndIcate a certaIn PoInt or ..," the poInt
of destInatIon or orIgIn must be mentIoned)
INCDTEPhS 2000
The Incoterms dIvIde costs and rIsks
The ncoterms of trade have been desIgned to clarIfy
oblIgatIons of both partIes, the buyer and the seller.
PrIncIpally, these are:
The seller must: The buyer must:
ProvIde the goods
accordIng to the contract
Pay the prIce as agreed
upon
Contd..
INCDTEPhS 2000
n order to fInalIse the transactIon, both partIes wIll
have to perform certaIn tasks, lIke:
Arrange for lIcences, Arrange for lIcences,
AuthorIsatIon and formalItIes AuthorIsatIon and formalItIes
Arrange for shIpment Arrange for shIpment
Arrange for delIvery Accept delIvery
8ear the rIsks for hIs actIvItIes 8ear the rIsks Involved In hIs
contractual actIvItIes.
Source: Guide to Incoterms, ICC Paris
INCDTEPhS 2000
EXW = EX WDPS (. named pIace)
ost oj Coods lus cost oj Exort ackny and markny
n thIs term the seller delIvers the goods by keepIng It ready In
delIverable state at the seller's place or another named place. ThIs
named place can be factory/godown or manufacturIng unIt. n thIs
term seller does not clear the goods for exports nor goods are loaded
on vehIcle.
FCA = FPEE CAPPIEP (. named pIace)
ost oj Coods lus cost oj Cettny yoods to ralway staton or
truck jor transortaton to ort
ThIs term refers to seller's responsIbIlIty to delIver the goods, cleared
for export, to the carrIer appoInted by the buyer at the named place.
n thIs term the place of delIvery Is very Important. f the delIvery Is
at sellers place's then he Is responsIble for loadIng. f the delIvery
occurred at any other place, the seller Is not responsIble for
unloadIng. ThIs term can be used for all modes of transport as well as
multImodal.
INCDTEPhS 2000
FAS = FPEE ALDNCSI0E SHIP (.named port of
shIpment)
ost oj Coods lus cost oj Transort to ort and
yettny yoods alonysde sh
n thIs term when the goods are placed alongsIde the
vessel at the named port of shIpment It wIll be
consIdered that the seller has completed the delIvery.
The buyer has to bear all rIsks of loss or damage to the
goods and all costs from thIs poInt of tIme. However
the seller must clear the goods for the purpose of
export. ThIs term can be used only for Inland waterway
transport or shIpment by sea. t Is not used when It Is
aIr shIpment.
INCDTEPhS 2000
FD = FPEE DN DAP0 (. named port of shIpment)
ost oj Coods lus cost oj Cettny yoods on board
and rearny shny documents
ThIs Is the most popular term and Is wIdely In use. FD8
means that the seller delIvers when the goods pass the
shIp's raIl at the named port of shIpment. Under thIs
term the buyer has to bear all costs and rIsk of loss of
damage to the goods from that poInt. ThIs term
requIres the seller to clear the goods for exports. ThIs
term Is used only for sea or Inland waterway transport.
t Is not suItable for shIpment by aIr.
INCDTEPhS 2000
CFP = CDST AN0 FPEICHT (. named port of
destInatIon)
ost oj Coods lus cost oj Freyht cost (ort to ort)
EarlIer thIs term was popularly known as CEF or CNF.
CFF means the seller must pay the cost and the freIght
necessary for the goods to reach at the named
destInatIon. However, the rIsks of loss or damage to
the goods after the tIme of the delIvery Is on buyers
account. The seller Is requIred to clear the goods for
exports. ThIs term can be used only for sea and Inland
waterway transport.
INCDTEPhS 2000
CIF = CDST INSUPANCE AN0 FPEICHT (. named port of
destInatIon)
ost oj Coods lus cost oj Marne lnsurance
Cost, nsurance and FreIght" means that the seller, delIvers when
the goods pass the shIp's raIl In the port of shIpment. The CF prIce
refers that It covers the cost of the goods, freIght necessary to brIng
the goods to the named port of destInatIon and also marIne
Insurance. Compared to the prevIous term, CFF the seller contracts
for the Insurance and pay the Insurance premIum. t wIll be essentIal
for the buyer to know that under the CF term the seller Is requIred
to obtaIn the Insurance only on mInImum cover. f the buyer wIshes
to have more protectIon then he should make hIs own Insurance
arrangement extra or should specIfy to the seller at the tIme of
contract.
n thIs term the seller must clear the goods for exports and the buyer
must arrange necessary clearance for Import. ThIs term can be used
only for sea and Inland water transport.
INCDTEPhS 2000
CPT = CAPPIACE PAI0 TD (. named pIace destInatIon)
CarrIage PaId To" means the seller delIvers the goods to the carrIer
nomInated by hIm but the seller must In addItIon pay the cost of
carrIage necessary to brIng the goods to the named destInatIon. ThIs
refers to the fact that all the rIsks and any other cost occurrIng after
the goods have been delIvered wIll be on buyer's account. ThIs term
Is used for all modes of transport IncludIng multImodal transport.
CIP = CAPPIACE AN0 INSUPANCE PAI0 TD (.named pIace of
destInatIon)
CarrIage and nsurance PaId To" means that the seller delIvers the
goods to the carrIer nomInated by hIm, but the seller must In
addItIon pay the cost of carrIage necessary to brIng the goods to the
named destInatIon. ThIs means that the buyer bears all rIsks and any
addItIonal costs occurrIng after the goods have been so delIvered.
However, In CP the seller also has to procure Insurance agaInst the
buyer's rIsk of loss of or damage to the goods durIng the carrIage.
INCDTEPhS 2000
0AF = 0ELIVEP0 AT FPDNTIEP (. named pIace)
ThIs term Is used when goods are to be delIvered at land frontIer,
IrrespectIve of the mode of transport. 0elIvered At FrontIer means
the seller delIvers when the goods are placed at the dIsposal of the
buyer on the arrIvIng means of transport not unloaded, cleared for
exports but not cleared for Import at the named poInt and place at the
frontIer, but before the customs border of the adjoInIng country.
0ES = 0ELIVEP0 EX SHIP
ost oj Coods lus cost oj Puttny yoods at dsosal oj customer on
board vessel at ort oj destnaton
0elIvered Ex ShIp" means that the seller delIvers when goods are
place at the dIsposal of the buyer on board shIp not cleared for Import
at the named port of destInatIon. n thIs term all the cost and rIsk In
brIngIng the goods to the named port of destInatIon before dIscharge Is
on seller. ThIs term can be used only when the shIpment Is by sea or
Inland waterway or multImodal transport In the vessel at the port of
destInatIon.
INCDTEPhS 2000
0E = 0ELIVEPE0 EX UAY (. named port of destInatIon)
ost oj Coods lus cost oj Unloadny charyes at ort oj destnaton
0elIvered Ex Quay" means that the seller delIvers when the goods are
placed at the dIsposal of the buyer not cleared for, Import on the quay
(wharf) at the named port of destInatIon. The seller has to bear costs
and rIsks Involved In brIngIng the goods to the named port of
destInatIon and dIschargIng the goods on the quay (wharf). The 0EQ
term requIres the buyer to clear the goods for Import and to pay for all
formalItIes, dutIes, taxes and other charges upon Import.
INCDTEPhS 2000
00U = 0ELIVEPE0 0UTY UNPAI0
0elIvered 0uty UnpaId" means that the seller delIvers the goods to
the buyer, not cleared for Import, and not unloaded from any arrIvIng
means of transport at the named place of destInatIon. The seller has to
bear the costs and rIsks Involved In brIngIng the goods thereto other
than where applIcable any duty for Import In the country of
destInatIon. Such duty has to be borne by the buyer as well as any
costs and rIsks caused by hIs faIlure to clear the goods for Import In
tIme.
INCDTEPhS 2000
00P = 0ELIVEPE0 0UTY PAI0 (.named pIace of
destInatIon)
ost oj Coods lus cost oj Payment oj dutes and
transort to customer
0elIvered 0uty PaId means that the seller delIvers the
goods to the buyer, cleared for Import, and not unloaded
from any arrIvIng means of transport at the named place
of destInatIon. The seller has to bear all the costs and
rIsks Involved In brIngIng the goods thereto IncludIng,
where applIcable, any duty for Import In the country of
destInatIon.
INCDTEPhS 2000
Incoterms 2000 - an exampIe
A customer In Hanover, Cermany, asks for a quotatIon for J000
paIrs of shoes, to be delIvered 00P at hIs warehouse. You have
decIded on a unIt sellIng prIce of S2, gIvIng a total nomInal prIce of
S 6000 for the goods when sold domestIcally. For export you wIll
have to calculate wIth an addItIonal set of costs whIch are Involved
In makIng them physIcally avaIlable to your customer.
What are the addItIonal costs of gettIng the goods from your
factory In (e.g.) Agra, ndIa, to the customer: How (*) Is your
quotatIon affected by the terms of delIvery:
() ln ths cclculcton excmple, cll costs cre hypothetccl.
INCDTEPhS 2000
lj you
quote:
Your rce should
nclude:
Addtonal
costs:
Your total rce
s:
EXW Exworks Agra
Export packIng, markIng
crates wIth shIppIng
marks
J00 6J00
FCA Free on CarrIer at Agra
statIon. CarrIage and
Insurance for delIvery
to raIlway statIon by
road transport IncludIng
Insurance
100 6400
INCDTEPhS 2000
FAS Free alongsIde shIp at
JNPT port. FaIl
transport to port
(IncludIng Insurance)
and gettIng goods on
the quay alongsIde
shIp.
J10 6710
FD8 Free on board JNPT
Port. 0ock dues,
loadIng goods on board
shIp. PreparIng
shIppIng documents
100 6810
INCDTEPhS 2000
CFF Cost and FreIght.
Sea FreIght to
Hamburg (nearest
port to Hanover)
875 7685
CF Cost, Insurance,
freIght. Sea freIght +
marIne Insurance
(port to port)
100 7785
0ES 0elIvered ex shIp at
Hamburg.
LandIng charges at
Hamburg port.
90 7875
INCDTEPhS 2000
00P 0elIvery duty PaId at
customer's warehouse
In Hanover. mport
dutIes for J000 paIrs
of shoes
1200 9075
Transport by raIl
Hamburg to Hanover
150 9225
The buyer actually
pays **
1J50 9225
(**) = 'avaiIabiIity price'.
Terms of Payment
Terms of Payment
Types of InternatIonaI Trade SettIement:
Advance Payment
Dpen account
8Ills on collectIon basIs
0ocuments agaInst Acceptance
0ocumentary CredIts (Letters of credIt)
Standby letter of CredIt
Advance Payment
Seller may InsIst for advance payment :
W When he Is not confIdent on the buyer's fInancIal posItIon
W When the buyer's Country Is not stable.
Under thIs method seller Is able to secure hIs commercIal rIsk on
the buyer by receIvIng the advance payment for hIs supply.
WhIle agreeIng for advance payment buyer Is exposed to a rIsk on
the seller and hIs capacIty to supply the materIals.
n a competItIve 'buyer's market' seller may not be able to
receIve advance payment.
f It Is the 'seller's market' and If the seller has monopoly In
certaIn Items, seller can InsIst for advance payment.
Dpen account
t Is an arrangement between the buyer and the seller that
seller delIvers the goods to the buyer dIrectly or to hIs order
and the buyer agrees to pay on an agreed date.
Under thIs method, the goods are wIth the buyer on trust and
the buyer Is expected to pay the seller on the due date.
Seller Is exposed to a hIgh degree of rIsk sInce the goods are
under the control of the buyer.
ThIs type of tradIng requIres a hIgh degree of trust between
buyer and seller and thIs method Is more advantageous to the
buyer.
ThIs method Is also known as consIgnment sale or on account
sales.
0ocuments agaInst payment

t Is an arrangement by whIch the seller after shIppIng the
goods submIts the documents to hIs bank wIth a request for
collectIng the payment from the buyer.
Seller's bank forwards the document to the buyer's bank wIth
a request to collect the payment from the buyer agaInst the
documents.
0ocuments are presented to the buyer and If the buyer makes
payment, buyer's bank collects the payment and remIts to the
seller's bank, whIch In turn wIll transfer the payment to the
seller.
Under thIs method seller's bank does not undertake any
responsIbIlIty for payment. t acts as agent for collectIon.
f the payment Is not receIved the documents are returned to
the seller.
Payment rIsk Is wIth the seller. f the payment Is not
forthcomIng, seller has to recall the documents or dIrect It to
a new buyer.
0ocuments agaInst acceptance

Under thIs arrangement all the commercIal documents are
forwarded by the seller's bank to the buyer's bank.
Seller's bank specIfIcally Instructs the buyer's bank to delIver
all the commercIal documents to the buyer only on acceptance
of the payment lIabIlIty by the buyer on the bIll of exchange.
8Ill of exchange Is drawn on the buyer demandIng payment on
the due date.
8uyer accepts hIs payment lIabIlIty by sIgnIng on the bIll of
exchange and collects all the orIgInal documents.
WIth the orIgInal shIppIng document he Is able to take delIvery
of the consIgnment.
8uyer goes to the bank on the due date and pays the dues wIth
or wIthout Interest as per the arrangement.
Letters of CredIt
What Is Letter of CredIt [LCj!
Under letter of credIt mechanIsm the 8ank lends Its name to
the buyer's reputatIon by undertakIng on buyer's behalf that It
wIll pay the seller provIded seller presents Its claIm/documents
strIctly In terms of the undertakIng gIven by the 8ank on behalf
of buyer.
As per the UCP0C 600 defInItIon of LC Is gIven as under
CredIt" means any arrangement, however name and
descrIbed, that Is Irrevocable and thereby constItutes a
defInIte undertakIng of the IssuIng bank to honour a complyIng
presentatIon.
Letters of CredIt
What Is Letter of CredIt [LCj!
Honour means:
a. To pay at sIght If the credIt Is avaIlable by sIght payment.
b. To Incur a deferred payment undertakIng and pay at
maturIty If the credIt Is avaIlable by deferred payment.
c. To accept a bIll of exchange ('draft') drawn by the
benefIcIary and pay at maturIty If the credIt Is avaIlable
by acceptance.
PresentatIon means eIther the delIvery of documents under a
credIt to the IssuIng bank or nomInated 8ank or the documents
so delIvered.
Letters of CredIt
Why an exporter shouId InsIst on LC as a payment
term!
LC open doors to InternatIonal trade by provIdIng a secure
mechanIsm for payment upon fulfIllment of contractual
oblIgatIons.
A bank Is substItuted for the buyer as the source of payment
for goods or servIces exported.
The IssuIng bank undertakes to make payment, provIded all
the terms and condItIons stIpulated In the LC are complIed
wIth.
Letters of CredIt
Why an exporter shouId InsIst on LC as a payment
term!
FInancIng opportunItIes, such as preshIpment fInance secured
by a LC and/or dIscountIng of accepted drafts drawn under LC,
are avaIlable In many countrIes.
8ank expertIse Is made avaIlable to help complete trade
transactIons successfully.
Payment for the goods shIpped can be remItted to your own
bank or a bank of your choIce.
Letters of CredIt
How It Is benefIcIaI to the Importer!
Payment wIll only be made to the seller when the terms and
condItIons of the letter of credIt are complIed wIth.
The Importer can controI the shIppIng dates for the goods
beIng purchased.
Cash resources are not tIed up.
Letters of CredIt
Who are the partIes to the LC!
ApplIcant/8uyer on whose behalf LC Is opened [Importer]
8enefIcIary/Seller In whose favour the LC Is opened
[exporter]
DpenIng 8ank whIch opens/establIshes the LC
AdvIsIng 8ank whIch advIses the LC
ConfIrmIng 8ank whIch confIrms the LC
NegotIatIng 8ank normally benefIcIary's bank
FeImbursIng 8ank whIch normally maIntaIns nostro account of
the openIng bank and reImburses the negotIatIng bank.
Letters of CredIt
Types of LC:
IrrevocabIe LC:
W Cannot be amended or cancelled wIthout the consent of the
IssuIng bank, the confIrmIng bank, If any, and the
benefIcIary.
ConfIrmed CredIt:
W When a confIrmIng bank has added Its confIrmatIon by way
of an addItIonal undertakIng to make payment at the
specIfIc request of the ssuIng 8ank, It becomes a confIrmed
credIt. AII credIts need not be confIrmed credIts.
Letters of CredIt
Types of LC:
UnconfIrmed credIt:
An unconfIrmed LC Is one to whIch the bank does not add Its
confIrmatIon, and thereby, does not accept lIabIlIty to make
payment under the LC.
TransferabIe credIt:
W A LC Is transferable only If the ssuIng 8ank expressly
desIgnates It.
W The 8enefIcIary In such credIt has the rIght to request the
nomInated bank to transfer the credIt In full or parts In
favour of one or more second benefIcIarIes If partIal
shIpment Is permItted.
Letters of CredIt
Types of LC:
ack-to-ack CredIt:
W n case If the exporter Is not the actual manufacturer and
he gets hIs work done by the subsupplIers and If the sub
supplIers demands LC In theIr favour, the exporter who has
receIved a letter of credIt for export, approaches hIs banker
to establIsh second set of letters of credIt on the basIs of
the export letter of credIt receIved by hIm.
W The second set of CredIt opened by a bank at the request of
the exporter Is known as backtoback credIt.
W The benefIcIary of the orIgInal letter of credIt wIll become
the applIcant for the second set of credIt.
Letters of CredIt
Types of LC:
PevoIvIng CredIt:
W n a FevolvIng CredIt the amount of drawIng Is reInstated
and made avaIlable to the benefIcIary agaIn unto the
agreed perIod of tIme on notIfIcatIon of payment by the
applIcant or merely on submIssIon of documents.
W The maxImum value and perIod unto that the CredIt can be
revolved wIll be specIfIed In the FevolvIng CredIt.
W The reInstatement clause and the maxImum amount of
drawIngs under the credIt should always be Incorporated In
FevolvIng credIt.
Letters of CredIt
Types of LC:
0eferred Payment CredIts and Acceptance CredIts:
Under 0eferred Payment CredIt the amount Is payable In
Installments for a stIpulated longer perIod. Usually a part Is
paId In advance and the balance Is payable In agreed
Installments In terms of condItIons of the LC.
Letters of CredIt
STAN0Y LETTEP DF CPE0IT:
Standby credIt Is payable only on default of the buyer.
UndertakIng of the bank wIll specIfIcally commIt payment only
In case of the default of the buyer. t can be treated as a
guarantee for payment only In case the buyer faIls to pay.
Standby credIts are useful not only In trade related transactIons
but In any of transactIons where there Is a possIbIlIty of default
lIke loan repayment.
Procedure
8uyer and seller agree to conduct busIness. The seller
wants a letter of credIt to guarantee payment.
8uyer applIes to hIs bank for a letter of credIt In favor
of the seller.
8uyer's bank approves the credIt rIsk of the buyer,
Issues and forwards the credIt to Its correspondent
bank (advIsIng or confIrmIng). The correspondent bank
Is usually located In the same geographIcal locatIon as
the seller (benefIcIary).
Procedure
AdvIsIng bank wIll authentIcate the credIt and forward the orIgInal
credIt to the seller (benefIcIary).
Seller (benefIcIary) shIps the goods, then verIfIes and develops the
documentary requIrements to support the letter of credIt.
0ocumentary requIrements may vary greatly dependIng on the
perceIved rIsk Involved In dealIng wIth a partIcular company.
Seller presents the requIred documents to the advIsIng or
confIrmIng bank to be processed for payment.
AdvIsIng or confIrmIng bank examInes the documents for
complIance wIth the terms and condItIons of the letter of credIt.
Procedure
f the documents are correct, the advIsIng or confIrmIng bank wIll
claIm the funds by:
0ebItIng the account of the IssuIng bank.
WaItIng untIl the IssuIng bank remIts, after receIvIng the documents.
FeImburse on another bank as requIred In the credIt.
AdvIsIng or confIrmIng bank wIll forward the documents to the
IssuIng bank.
ssuIng bank wIll examIne the documents for complIance. f they
are In order, the IssuIng bank wIll debIt the buyer's account.
ssuIng bank then forwards the documents to the buyer.
Important TIps to the Exporter

Upon receIpt of the letter of credIt, the credIt professIonal should
revIew all Items carefully to Insure that what Is expected of the
seller Is fully understood and that he can comply wIth all the terms
and condItIons. When complIance Is In questIon, the buyer should
be requested to amend the credIt.
CommunIcate wIth your customers In detaIl before they apply for
letters of credIt.
ConsIder whether a confIrmed letter of credIt Is needed.
Ask for a copy of the applIcatIon to be fax to you, so you can check
for terms or condItIons that may cause you problems In
complIance.
Important TIps to the Exporter

Upon fIrst advIce of the letter of credIt, check that all Its terms
and condItIons can be complIed wIth wIthIn the prescrIbed tIme
lImIts.
|any presentatIons of documents run Into problems wIth tIme
lImIts. You must be aware of at least three tIme constraInts the
expIratIon date of the credIt, the latest shIppIng date and the
maxImum tIme allowed between dIspatch and presentatIon.
f the letter of credIt calls for documents supplIed by thIrd partIes,
make reasonable allowance for the tIme thIs may take to
complete.
After dIspatch of the goods, check all the documents both agaInst
the terms of the credIt and agaInst each other for Internal
consIstency.
Import Procedure
Customs 0uty CaIcuIatIon
Sr. No.
ParticuIars Amount in Rs.
1 Basic Cost (A) AV 100.00
2 Basic Customs Duty (B) 10.00
(A + B) = C 110.00
3 Rate of Excise (CVD) (a) 15.4
4 Rate of Education cess 2% on CVD (b) 0.308
Rate of High & Sec. Edu. Cess 1% on CVD (b1) 0.154
5 Rate of Excise cess (Additional Duty) (a+b+b1) =D 15.862
(C+D) Total 125.862
6 Total Customs Duty 25.862
7 Edu. Cess 2% on Total Customs Duty 0.51724
8 Higher & Sec. Cess @ 1% on Total Customs Duty 0.25862
9 Total Customs Duty ncl. Cess 26.63786
10 126.63786
11 Additional Customs Duty @4% 5.0655144
12 Grand DutyTotal After Adding Cus. Duty @ 4% 31.7033
LIst of Customs PuIes and
PeguIatIons
LIst of maIn Acts, PuIes and

PeguIatIons under Customs
CUSTD|S ACT, 1962
CUSTD|S TAFFF ACT, 1975
CD|PUTEFS (A00TDNAL 0UTY) FULES, 2004
CUSTD|S (|PDFT DF CDD0S AT CDNCESSDNAL FATE DF 0UTY
FDF |ANUFACTUFE DF EXCSA8LE CDD0S) FULES, 1996
FEEXPDFT DF |PDFTE0 CDD0S (0FAW8ACK DF CUSTD|S 0UTES)
FULES, 1995
CUSTD|S (PFD7SDNAL 0UTY ASSESS|ENT) FECULATDNS, 196J
CUSTD|S AN0 CENTFAL EXCSE 0UTES 0FAW8ACK FULES, 1995
CECAT (CDUNTEF7ALNC 0UTY AN0 ANT0U|PNC 0UTY)
PFDCE0UFE FULES, 1996
8LL DF ENTFY (FDF|S) FECULATDNS, 1976
8LL DF ENTFY (ELECTFDNC 0ECLAFATDN) FECULATDNS, 1995
UNCLEAFE0 CDD0S (8LL DF ENTFY) FECULATDNS, 1972
LIst of maIn Acts, PuIes and

PeguIatIons under Customs
CDUFEF |PDFTS AN0 EXPDFTS (CLEAFANCE) FECULATDNS, 1998
CUSTD|S HDUSE ACENTS LCENSNC FECULATDNS, 2004
CUSTD|S FEFUN0 APPLCATDN (FDF|) FECULATDNS, 1995
CUSTD|S 7ALUATDN (0ETEF|NATDN DF PFCE DF |PDFTE0
CDD0S) FULES, 1988
8ACCACE FULES, 1998
PFDJECT |PDFTS FECULATDNS,1986
CUSTD|S (A07ANCE FULNCS) FULES, 2002
|PDFT |ANFEST (AFCFAFT) FECULATDNS, 1976
|PDFT |ANFEST (7ESSELS) FECULATDNS, 1971
CUSTD|S (SETTLE|ENT DF CASES) FULES, 1999
Import CIearance Procedure
Import CeneraI hanIfest

Import CeneraI hanIfest-Important 0ocument
To get an entry Inward the |aster of the 7essel or hIs agent Is
requIred to submIt to the proper offIcer In the Custom House a
document called 'mport Ceneral |anIfest' or 'mport |anIfest'
In a prescrIbed form.
The manIfest Is nothIng more than a lIst of all goods carrIed on
board IncludIng those meant for other ports In ndIa or abroad
wIth all detaIls lIke number of packages, marks and numbers,
descrIptIon of the goods and the Importer's name. Except wIth
the permIssIon of the proper offIcer, no Import goods can be
unloaded at any Customs StatIon unless they are mentIoned In
the aforesaId Import manIfest for beIng unloaded at that
Customs StatIon.
Import Procedure - E0I

SubmIssIon of declaratIons In electronIc format
contaInIng all the relevant InformatIon
to the ServIce Centre of Customs House.
A sIgned paper copy of the declaratIon Is taken by
the servIce centre operator
for nonrepudIabIlIty of the declaratIon.
ontnues..

A checklIst Is generated for verIfIcatIon of
data by the Importer/CHA.
After verIfIcatIon, the data Is submItted to the system by the
ServIce Centre Dperator and system then generates
a 8/E Number, whIch Is endorsed on the prInted checklIst
and returned to the Importer/CHA.
No orIgInal documents are taken at thIs stage.
ontnues..

AssessIng offIcer In the AppraIsIng Croup wIll scrutInIze
varIous aspects of clearance such as classIfIcatIon, descrIptIon of
Coods, valuatIon, duty lIabIlIty etc.
n case assessIng offIcer needs any clarIfIcatIon he raIses query,
whIch Is prInted at the servIce centre and Importer has to reply
such querIes through servIce centre.
ontnues..

After assessment, a copy of assessed 8/E Is prInted In the ServIce
Centre. Under E0, documents are normally examIned at the tIme of
examInatIon of the goods. FInal bIll of entry Is
prInted after 'out of charge' Is gIven by the Custom DffIcer.

ExamInatIon of Coods:
n case the Importer does not have complete InformatIon wIth
hIm at the tIme of Import, he may request for examInatIon of
the goods before assessIng the duty lIabIlIty. ThIs Is called FIrst
AppraIsement.
The goods are examIned subsequent to assessment and
payment of duty. ThIs Is called Second AppraIsement.
ExamInatIon Is normally done on random basIs.

ExamInatIon of Coods
Under the E0 system, the bIll of entry, after assessment by
the group or fIrst appraIsement, as the case may be, need
to be presented at the counter for regIstratIon for
examInatIon In the Import shed.
A declaratIon for correctness of entrIes and genuIneness of
the orIgInal documents needs to be made at thIs stage.
After regIstratIon, the 8/E Is passed on to the shed
AppraIser for examInatIon of the goods.

ExamInatIon of Coods:
AlongwIth the 8/E, the CHA Is to present all the necessary
documents. After completIng examInatIon of the goods, the Shed
AppraIser enters the report In System and transfers fIrst
appraIsement 8/E to the group and gIves 'out of charge' In case of
already assessed 8/E.
Thereupon, the system prInts 8Ill of Entry and order of clearance (In
trIplIcate).
All these copIes carry the examInatIon report, order of clearance
number and name of Shed AppraIser. The two copIes each of 8/E and
the order are to be returned to the CHA/mporter, after the
AppraIser sIgns them. Dne copy of the order Is attached to the
Customs copy of 8/E and retaIned by the Shed AppraIser.
CheckIIst
WhIle fIlIng of 8Ill of Entry, one must always comply wIth followIng
detaIls:
HS Code - proper classIfIcatIon
0eclaratIons
7aluatIon as per CUSTD|S 7ALUATDN (0ETEF|NATDN DF
PFCE DF |PDFTE0 CDD0S) FULES, 1988
AuthorIsatIon No. E 0ate
Customs NotIfIcatIons No. E 0ate
Fate of 0uty and 0uty calculatIons
ForeIgn Exchange Fate
Country of DrIgIn
C| No. E 0ate
ContaIner No.
Export CIearance Procedure
Tyes oj ARE jorm and ther relevance

DrIgInaI copy of APE - [WhItej
DrIgInal copy Is to be sent wIth the Cargo for sIgnature of
Customs AuthorItIes.
The same Is to be receIved back from Customs after theIr
sIgnatures.
|aIn orIgInal document consIdered by ExcIse AuthorItIes for
sanctIonIng the rebate claIm, because thIs Is the only orIgInal
document sIgned by customs all other documents are the copIes
only .

0upIIcate copy of APE - [uffj
To be sent wIth the Cargo for sIgnature of Customs
AuthorItIes and Is to be receIved back.
t Is receIved In Sealed cover from Customs, requIred to
be submItted to ExcIse at the tIme of Febate ClaIm.

TrIpIIcate copy of APE - [PInkj
t Is to be sent to the offIcer to whom ExcIse rebate Is to
be fIled (generally the dIvIsIon offIce of ExcIse who has
AuthorIty to sanctIon rebate) eIther by post or by handIng
over to exporter In tamper proof sealed cover.
Cenerally Fange nspector asks exporter to keep It safe
and submIt together wIth the rebate claIm applIcatIon.

uadrupIIcate copy of APE - [Creenj
FetaIned by excIse offIcers at range offIce, generally
retaIned by them when they come for sealIng of Export
Cargo.

uIntupIIcate copy of APE - [Iuej
EarlIer It was requIred to be submItted to 0CFT for the
claIm of Export 8enefIt, SInce the preaudIt Is no more
requIred, thIs copy Is not to be submItted any where, can
be retaIned by Exporter for theIr own records.
CIearance of Export Cargo under ExcIse SupervIsIon
ExcIse InvoIce Is to be made In terms of Fule 11 of the CE
Fules, 2002
ApplIcatIon In Form AFE1
ntImatIon to ExcIse before 24 hrs or less as agreed
Contd...

Export 0ocuments to be sent along wIth the Cargo :
W nvoIce
W PackIng LIst
W ExcIse nvoIce
W S0F Form
W ShIpper's 0eclaratIon Form
W nspectIon CertIfIcate / Test Feport
W Export LIcence If any
W Copy Df Export Contract / Letter of CredIt / Export Drder
W AFE1 ( 4 CopIes )
(|entIonIng LUT reference no. If cleared under LUT/ or FC
entry no. If duty Is debIted)
Contd...

PhysIcal nspectIon of contaIner by ExcIse SuperIntendent E nspector
or under specIfIc CIrcumstances, only Inspector can also sIgn the
documents under specIfIc permIssIon of AC/0C of Central ExcIse:
They emphasIze on the followIng poInts:
W Coods are Exportable In accordance of law (not prohIbIted or
restrIcted for Exports )
W Check for the IdentIty of Coods
W 7erIfy the QuantIty beIng Exported, Is properly accounted In 0aIly
Stock FegIster [0SF]
W Assess duty (paId/payable)
W 7erIfy 0uty ExemptIon Scheme and check for correct LIcence No.
W For FCL they Check for ContaIner No. and Seal No. on the
documents and put 8ottle Seal / Dne tIme lock on the ContaIner.
W For LCL they use wIre E Lead Seals for SealIng
W |onItor loadIng of Cargo
Contd...
CIearance of Export Cargo

Under ExcIse
SupervIsIon
Self SealIng by the
|anufacturer
Exporter
DbtaIn Factory stuffIng
permIssIon from Customs, If
factory Is located at more than
one places combIned permIssIon
can be obtaIned wIth the
endorsement of factory
addresses.
Copy of the permIssIon Is
forwarded to the respectIve
ExcIse AuthorItIes havIng the
JurIsdIctIon.
DbtaIn permIssIon from ExcIse
AuthorItIes havIng the
JurIsdIctIon.
PegIstratIon FormaIItIes at customs If cIaImIng Export

benefIts under FTP
Exporter has to regIster the AuthorIsatIon / LIcences wIth
Customs for the followIng schemes :
1) Advance AuthorIsatIon
2) EPCC LIcence
8ulletIn - t Is verIfIcatIon of SIgnatures of AuthorIsed persons
at 0CFT who has Issued the LIcence / AuthorIsatIon.
0etaIls of LIcence to be regIstered In the E0 system, so that
It reflects the same at the tIme of generatIon of ShIppIng
bIll.
CIearance of Export Cargo by SeIf-SeaIIng

Contd...
AuthorIty - Dwner, WorkIng Partner, |anagIng 0Irector or
the company secretary, or a person who Is permanent
employee of the company and holdIng reasonably hIgh
posItIon authorIsed by the Dwner/workIng partner/ 8oard
of 0Irector has AuthorIty to certIfy the Export 0ocuments
and Seal the Cargo

Contd...
Key PoInts to remember whIle certIfyIng such documents E loadIng
of Export Cargo:
W 7alId AuthorIty letter
W To check descrIptIon of goods
W 7erIfy whether the QuantIty beIng Exported Is properly accounted
In 0SF.
W f cleared agaInst LUT, check for the valIdIty of the same
W f under 0uty ExemptIon Scheme check for correct LIcence No.
W ConsumptIon FegIster [AppendIx2J] Is maIntaIned and proper
accountIng of duty free materIal has been done.
W For FCL ExcIse AuthorItIes check for ContaIner No. and Seal No. on
the documents and put 8ottle Seal / Dne tIme lock on the ContaIner.
W For LCL ExcIse AuthorItIes use WIre E Lead Seals for SealIng
W |onItor the loadIng of Cargo

Contd...
All export documents are to be sent along wIth the cargo for custom
clearance, sImIlar to loadIng of cargo under excIse supervIsIon.
Dnly dIfference here wIll be that documents wIll not be certIfIed by
the ExcIse SuperIntendent, hence there Is chance of openIng the
contaIner at the port by Custom AuthorItIes.
Dnce the cargo Is moved to port exporter has to send the relevant
documents together wIth ThIrd E Forth copy of AFE to the ExcIse
SuperIntendent or nspector havIng jurIsdIctIon over the Factory
wIthIn 24 hours of removal of goods.
CIearance of Export Cargo by SeIf SeaIIng

ExcIse nspector shall verIfy the correctness of documents, If he Is
satIsfIed, wIll endorse hIs sIgnatures on the AFE and forward ThIrd
copy to the offIcer wIth whom rebate claIm Is to be fIlled eIther by
post or by handIng over to the exporter In the temper proof sealed
cover.
Customs CIearance of Export Cargo

ProcessIng Df ShIppIng III .
0raft of ShIppIng 8Ill Is known as ChecklIst of ShIppIng 8Ill
(FamIlIar word In Customs), thIs can be done much prIor to
the physIcal movement of cargo from the Factory gate.
TImely generatIon of ChecklIst helps avoId the problems.
FollowIng are the documents requIred by CHA at thIs stage:
1) nvoIce
2) PackIng LIst
Contd...
ArrIvaI of Cargo at the ContaIner Yard of the ShIppIng LIne:

CHA has to do proper plannIng for the target vessel, check for the Cut
off tIme and accordIngly advIce the exporter to load the cargo.
8efore the Cargo leaves from factory gate, CHA should take the
ContaIner No. E 8ottle Seal No. CHA has to punch these two partIculars
to generate the ShIppIng bIll No.
8y the tIme cargo reaches at the Port Cate CHA should be ready wIth
the ShIppIng 8Ill (not the ChecklIst).
f the shIppIng bIll Is ready at the tIme cargo reaches at port gate, CHA
can ImmedIately let the cargo get Into the contaIner yard of the
shIppIng lIner.
ThIs can avoId demurrage/ detentIon of traIlor and addItIonal cost of
8uffer yard.
Contd...
CHA receIves the foIIowIng Export 0ocuments aIong wIth the Cargo:
W nvoIce
W PackIng LIst
W ExcIse nvoIce
W ShIppIng 8Ill (Exchange Control Copy )
W S0F Form
W ShIppers 0eclaratIon Form
W nspectIon CertIfIcate / Test Feport
W Export LIcence If any
W AFE (DrIgInal - WhIte E 0uplIcate 8uff colored) (|entIonIng LUT
reference no. If cleared under LUT/ or FC entry no If duty Is debIted)
W Copy Df Export Contract / Letter of CredIt / Export Drder
W Customs generally Is not much bothered about last two poInts
Contd...
Customs AppraIser, examInes the export documents, partIcularly the

ShIppIng bIll E AFE
Contd...
Cargo cIeared form
factory under ExcIse
supervIsIon :
Customs AppraIser normally
check for SIgnature of
ExcIse superIntendent /
nspector and confIrms the
ContaIner no. and bottle
seal no. on the ShIppIng 8Ill
E AFE. As all other aspects
has already been checked
by ExcIse.
Cargo CIeared from factory
under SeIf-SeaIIng:
Customs appraIser makes an
endorsement of examInatIon
IndIcatIng the extent of
examInatIon necessary at
docks.
Customs offIcer makes endorsement of the ExamInatIon order and

Instructs for the payment of Export 0uty / Cess (f ApplIcable).
Contd...
Dnce appraIser approves the ShIppIng bIll, CHA approaches to Port
AuthorItIes for CartIng order, gIven by the SuperIntendent of Port Trust.
CHA approaches docks appraIser for physIcal examInatIon of cargo. CHA
has to present all export documents. PhysIcal verIfIcatIon Is done as
per ExamInatIon report of Customs AppraIser.
Customs examIner If satIsfIed records manually on the shIppIng bIll as
well as In the System and passes LET EXPDFT DF0EF. For the purpose
of claIm of Export benefIts lIke ExcIse rebate ClaIm, the date on whIch
LET EXPDFT DF0EF Is passed Is known as date of Exports.
CHA has to further approach to PreventIve DffIcer, If he fInds

everythIng In order wIll pass 'LET SHP DF0EF'
Contd...
PhysIcal LoadIng of Cargo at docks takes place after obtaInIng 'LET
SHP DF0EF', and 8Ill of LadIng can be Issued by the shIppIng lIner on
the same day when the 7essel Is saIled.
After the 7essel Is saIled respectIve shIppIng company has to fIle EC|
(Export Ceneral |anIfest) wIth the Customs maxImum wIthIn 7 days of
saIlIng the vessel.
EC| Is a contaInerwIse/shIpperwIse/ShIppIng 8Ill no.wIse lIst of
cargo loaded Into a partIcular vessel. CHA can obtaIn a copy of EC|
from the System.
Contd...
CHA gets the |ate FeceIpt only after the EC| Is fIled wIth Customs. CHA has to
agaIn approach to the Customs AppraIser wIth all export documents together
wIth |ate FeceIpt E the copy of EC| for hIs sIgnatures on the followIng
documents :
EP copy of the shIppIng bIll - FequIred for 0CFT as proof of completIon of
Export DblIgatIon.
AFE - DrIgInal (WhIte) Copy of the shIppIng 8Ill - FequIred for fIlIng the Febate
claIm to the ExcIse AuthorItIes.
AFE - 0uplIcate (8uff) - FequIred for claImIng Febate claIm benefIt / as a proof
of Export to ExcIse AuthorItIes. t Is handed over by Customs In Tamper proof
sealed cover, whIch Is to be submItted as It Is to ExcIse AuthorItIes.
Exporter must InsIst CHA to get the above saId documents maxImum wIthIn J0
days so as to close the Advance AuthorIsatIon and claIm Export benefIts lIke
0EP8/0FA/0uty 0rawback at 0CFT E ExcIse Febate ClaIm from ExcIse 0ept.
Check Sheets
WhIle fIlIng of ShIppIng bIll one must
always comply followIng detaIls:
HS Code - proper classIfIcatIon
0eclaratIons
LIcence No. E 0ate
Customs NotIfIcatIons No. E 0ate
Terms of Payment
ForeIgn Exchange Fate
Country of DrIgIn
VarIous Export PromotIon
Schemes
Export and TradIng Houses
Export House
Export Performance based Scheme.
|erchant, |anufacturer, ServIce
ProvIder, EDUs, EHTPs, STPs,
8TPs, SEZs, AEZs can apply for Star
Export House CertIfIcate.
The applIcant has to make
applIcatIon dependIng on hIs total
FD8/FDF export performance
durIng the current plus the
prevIous three years (taken
together) upon exceedIng lImIt
[gIven In the table at rIght].
For Export House (EH) Status,
export Performance Is necessary In
at least two out of four years (I.e.,
Current plus prevIous three
years)." The crIterIa Is
Export House
A Status Holder shall be elIgIble for the followIng
facIlItIes:
AuthorIsatIon and Customs clearances for both Imports
and exports on selfdeclaratIon basIs;
FIxatIon of nputDutput norms on prIorIty wIthIn 60 days;
ExemptIon from compulsory negotIatIon of documents
through banks. FemIttance / FeceIpts, however, would
be receIved through bankIng channels;
100 retentIon of foreIgn exchange In EEFC account;
Contd
Export House
Enhancement In normal repatrIatIon perIod from 180 days
to J60 days;
ExemptIon from furnIshIng of 8C In Schemes under FTP;
and
SEHs and above shall be permItted to establIsh Export
Warehouses, as per 0oF guIdelInes.
haIntenance of Accounts:
True and proper account of exports and Imports are to be
maIntaIned durIng the valIdIty perIod and three years
thereafter.
Focus harket Scheme [FhSj
Focus harket Scheme [FhSj

ntroduced In the ForeIgn Trade PolIcy 20062007
[Annual UpdatIon].
Export of all products to the notIfIed countrIes.
EntItlement - 2.5 of the FD8 value of exports.
LIst of CountrIes elIgIble for benefIt under thIs scheme
Is gIven In AppendIx J7C of H8P 7ol..
n the annual updatIon of the FTP, 16 new countrIes
have been notIfIed.
0uty ExemptIonl
PemIssIon Scheme
0uty ExemptIonlPemIssIon Scheme

ExemptIon from payment
of duty on Inputs-prIor or
after to Exportsl
0eemed Exports
PemIssIon of duty on Inputs -
Post-Exports by way of
0uty CredIt EntItIement
0EP Scheme
Adv. Autho.l0FIA for
1) Phy. Exports
2) 0eemed Exports
AnnuaI Adv. Autho.
1) Phy. Exports
2) 0eemed Exports
0uty 0rawback
0uty ExemptIon Scheme

The 0uty ExemptIon Scheme enables duty free
Import of Inputs requIred for export
productIon.
0uty ExemptIon Scheme consIsts of:
Advance AuthorIsatIon Scheme
0uty Free mport AuthorIsatIon Scheme [0FA]
0uty ExemptIon Scheme

The facIlIty of Advance AuthorIsatIon entItles exporter to
Import requIred Inputs for export productIon wIthout payment
of duty subject to export oblIgatIon to be completed wIthIn
prescrIbed tIme. ThIs scheme reduces burden of customs
dutIes on the Inputs and thereby facIlItates cost
competItIveness.
The facIlIty of newly Introduced 0uty Free mport AuthorIsatIon
entItles exporter to avaIl the benefIt of duty free Import of
Inputs plus transferabIlIty after the exports have been
completed.
The Scheme has been operatIonalIzed by Issue of Customs Ntfn
No. 40Cus. 0td. 01.05.2006.
Advance AuthorIsatIon
SIDNlAdhoc Norm: FatIo of Input and output whIch
permIt allowable wastages - maInly related to
productIon process.
Wastage: Fecoverable/Nonrecoverable - effect of
wastage In fIxIng of norms.
VaIue addItIon: PosItIve 7alue AddItIon - 7alue addItIon
Is a concept where It Is expected that the exports
agaInst Advance AuthorIsatIon should result In
addItIonal earnIng of foreIgn exchange.
ExemptIon from payment of
8asIc Customs 0uty
AddItIonal Customs 0uty
EducatIon Cess
AntIdumpIng 0uty If any
Safeguard 0uty If any
Advance AuthorIsatIon can be Issued eIther to a
manufacturer exporter or merchant exporter tIed to
supportIng manufacturer(s):
I) for PhysIcal exports (IncludIng exports to SEZ);
and/or
II) for ntermedIate supplIes; and /or
III) for deemed exports
Iv) supply of shIp stores on board of the foreIgn goIng
vessel/aIrcraft subject to the condItIon that there Is
specIfIc SDN In respect of the Item(s) supplIed.
Subject to actual user condItIon
TransferabIIIty:
Advance AuthorIsatIon and/or materIals Imported there
under wIll be wIth actual user condItIon.
t wIll not be transferable even after completIon of
export oblIgatIon.
Export DbIIgatIon [EDj:
ED Is Imposed to Safeguard Fevenue foregone by way of gIvIng
exemptIon.
Two lImItIng factors - uantIty and VaIue.
To be fulfIlled In 24 months
Any shortfall Is requIred to be regularIzed by payIng applIcable
duty plus Interest on unutIlIsed Inputs and penalty If any.
Import EntItIement:
LImIted by uantIty and VaIue.
mport Is to be completed In 24 months.
Actual User CondItIon applIed.
Port of PegIstratIon:
To facIlItate accountIng of duty exempted.
AuthorIsatIon need to be regIstered at the specIfIed port
The authorIsatIon holder Is permItted to Import only through
regIstered port unless permIssIon [TFA] Is taken from the
Customs AuthorIty.
Exports can take place from any port.
Port of regIstratIon Is specIfIed In Para 4.19 of the H8P.
Enhancement or PeductIon In the AuthorIsatIon VaIue:
The reason of
W Enhancement - sudden Increase In export order
W FeductIon Export order may get cancelled
ProvIsIon Is made for enhancement or reductIon on prorata basIs
ExtensIon of Export DbIIgatIon PerIod [EDPj:
The perIod of fulfIllment of export oblIgatIon under an Advance
AuthorIsatIon wIll commence from the authorIsatIon Issue date.
Contd..
ExtensIon of Export DbIIgatIon PerIod [EDPj:
1st ExtensIon for 6 months - subject to payment of composItIon
fees of 2 of the duty saved on all the unutIlIzed Imported Items
as per authorIsatIon.
2nd ExtensIon for 6 months - subject to payment of composItIon
fees of 5 of the duty based on all unutIlIzed Imported Items as
per AuthorIsatIon.
PevaIIdatIon:
Dnly one revalIdatIon of 6 months Is allowed
FuIfIIIment of Export DbIIgatIon:
Export oblIgatIon Is to be fulfIlled by the Advance AuthorIsatIon
Holder.
Dnce the export oblIgatIon Is fulfIlled In terms of value and
quantIty both, the lIcence holder needs to submIt documents as
per ANF 4F of Handbook of Procedures 7ol. (H8P) In support of
havIng fulfIlled the ED.
Contd..
PedemptIon:
n case the export oblIgatIon has been fulfIlled, the FegIonal
AuthorIty wIll redeem the case.
After redemptIon, the FegIonal AuthorIty wIll forward a copy of the
redemptIon letter to the Customs AuthorIty at the port of
regIstratIon.
0Ischarge of ClLUT:
8efore dIschargIng 8C/LUT,
W In case of physIcal exports, Customs wIll verIfy all the detaIls as
gIven In FedemptIon Letter as per theIr records.
W In case of IntermedIate supplIes and deemed exports, Customs
wIll verIfy detaIls of supplIes from the Central ExcIse
AuthorIty/8ond DffIcer.
After verIfIcatIon, Customs wIll dIscharge 8C/LUT wIthIn J0 days of
Issuance of ED0C/bond waIver by the FegIonal AuthorIty.
PenaIty for ShortfaII:
Contd..
SItuatIon PenaIty
ED Is fulfIlled In terms
of 7alue but shortfall In
quantIty
A. Customs duty on unutIlIzed Imported
materIal along wIth Interest as notIfIed.
8. f the unutIlIzed materIal Is restrIcted for
Imports as per TC(HS) on the date of
Imports then the AuthorIsatIon holder has to
pay an amount equIvalent to J of CF value
of unutIlIsed Imported materIal.
AuthorIsatIon holder shall also be requIred
to obtaIn a separate authorIsatIon for
regularIsatIon of excess Imported Input.
No such penalty In case of Imported Item Is
freely permIssIble.
SItuatIon PenaIty
ED Is fulfIlled In terms of
QuantIty but shortfall In
value
A. No penalty Is Imposed If the lIcence
holder has achIeved posItIve value
addItIon.
8. n case If posItIve value addItIon falls
below the mInImum 7A amount equal to
1 of shortfall In FD8 value In ndIan
Fupee through TF In authorIsed branch of
Central 8ank of ndIa as above or through
EFT mode.
Contd.
Contd..
SItuatIon PenaIty
ED Is fulfIlled In
terms of QuantIty
but shortfall In
value
7alue wIse shortfall shall be calculated wIth
reference to actual quantIty of exports and FD8
value of realIsatIon wIth reference to prorata
quantIty of Imports and CF value.
E.g. If export performance Is only 50 quantIty
wIse but Import has been for complete CF
value permItted, then value addItIon would be
calculated on a prorata basIs, I.e wIth reference
to 50 of CF value of Imports.
ThIs would accordIngly Imply that where
AuthorIsatIon holder Is unable to export, no
penalty on value wIse shortfall shall be
Imposed.
SItuatIon PenaIty
n case where ED Is not
fulfIlled In terms of value
and quantIty both
As per the above provIsIons.
Where no export and Import
Is done agaInst AuthorIsatIon
AuthorIsatIon holder can cancel the
AuthorIsatIon and apply for 0rawback
after obtaInIng permIssIon from
Customs AuthorIty for conversIon of
0EEC ShIppIng bIlls Into 0rawback
ShIppIng 8Ills.
IndIgenous Procurement
Feasons for optIng out In favour of IndIgenous
procurement:
Shorter delIvery tIme
LogIstIcal advantages
FInancIal ease (local supplIer may not InsIst on letter of credIt)
The same materIal may be avaIlable at cheaper cost If the
supplIer Is In a posItIon to claIm benefIts avaIlable under
deemed exports.
PossIbIlIty of InspectIng the cargo (sInce the supplIer Is wIthIn
the country, there Is comparatIve ease to Inspect the cargo)
ndIgenous procurement Is free of currency rIsk sInce payment
can be made In ndIan Fupees.
IndIgenous Procurement
Instruments:
Advance AuthorIsatIon [for ntermedIate SupplIes]
Advance AuthorIsatIon [for 0eemed Exports]
Advance Felease Drder
8ackto8ack Letter of CredIt
haIntenance of Proper Account -

CDNSUhPTIDN PECISTEP
True and proper account of consumptIon and utIlIsatIon of duty
free Imported / domestIcally procured goods agaInst each
authorIsatIon Is to be maIntaIned as prescrIbed In AppendIx2J.
These records In AppendIx 2J are mandatory to be submItted
for authorIsatIons Issued on or after 1J052005.
Fecords Is to be preserved for a perIod of atleast J years from
the date of redemptIon.
Rej: Publc Notce No. 08/2005 (RE) dtd. 13.05.2005
Dther ProvIsIons
FIxatIon of Norms:
Where SDN for export product Is not fIxed, advance
authorIsatIon can be obtaIned on selfdeclaratIon basIs.
The norms are fIxed by Norms CommIttee [based on Chartered
EngIneer's certIfIcate] wIth or wIthout modIfIcatIon.
n case where Norms CommIttee has already ratIfIed norms for
same export and Import products In respect of an AuthorIsatIon
obtaIned under paragraph 4.7, the FA wIll Issue AuthorIsatIon
under 'Ad hoc Norms fIxed' category.
Dther ProvIsIons
StandardIsatIon of Norms:
Norms are fIxed by Norms CommIttee and cIrculated to Industry
by way of publIc notIce.
Standard norms are applIcable to entIre Industry.
Such norms are fIxed normally when atleast three applIcatIons
are receIved from dIfferent entItIes for the same export
product.
Such norms are fIxed on an average wastage basIs.
However, the authorIsatIon holder has to account for actual
consumptIon.
Dther ProvIsIons
hodIfIcatIon of Norms:
AuthorIsatIon Holder can modIfy the exIstIng SDN.
The reasons for modIfIcatIons are
W 0ue to InclusIon of Inputs not avaIlable under SDN.
W 0Ifference In ConsumptIon ratIo - more/less wastages.
W 0ue to greater effIcIency In the manufacturIng process.
W Where manufacturIng Is possIble by usIng alternate Inputs.
Dther ProvIsIons
FacIIIty of CIubbIng:
The facIlIty of clubbIng shall be avaIlable only for
redemptIon/regularIsatIon of the cases.
No further Import or export Is allowed.
For thIs facIlIty, authorIsatIons are requIred to have been
Issued under sImIIar Customs notIfIcatIon even pertaInIng to
dIfferent fInancIal years.
However In case of authorIsatIons Issued In 200409 perIod,
Advance AuthorIsatIons of dIfferent customs notIfIcatIon can be
clubbed.
Advance AuthorIsatIon for Annual

FequIrement
Advance AuthorIsatIon can also be Issued on the basIs
of annual requIrement for physIcal exports,
IntermedIate supplIes and / or deemed exports.
Advance AuthorIsatIon for Annual

FequIrement
The entItlement In terms of CF value of Imports under
thIs scheme Is upto J00 of the FD8 value of physIcal
export and / or FDF value of deemed export In the
precedIng lIcensIng year or Fs 1 crore, whIchever Is
hIgher.
Advance AuthorIsatIon can be Issued wIth a posItIve
value addItIon.
7alIdIty : 24 months. Dne revaIIdatIon for sIx months Is
granted.
ExtensIon of Export DblIgatIon : Same as Advance
AuthorIsatIon.
CorrespondIng Customs
NotIfIcatIons
91/2004CUSTD|S dated 10th September, 2004
Advance AuthorIsatIon for deemed export
9J/2004CUSTD|S dated 10th September, 2004
94/2004CUSTD|S dated 10th September, 2004
Advance AuthorIsatIon for Annual FequIrement
0uty Free Import
AuthorIsatIon
0uty Free Import AuthorIsatIon

New Instrument to replace 0FFC scheme Introduced In
the ForeIgn Trade PolIcy 20062007 [Annual UpdatIon].
mport of duty free Inputs subject to export oblIgatIon.
|InImum 7alue AddItIon requIred - 20
|aterIal Imported under the AuthorIsatIon and
AuthorIsatIon Itself Is transferabIe once export
oblIgatIon has been fulfIlled and the case Is redeemed
by Customs AuthorIty.
0uty Free Import AuthorIsatIon

Dnce transferabIlIty Is endorsed, Imports agaInst
authorIsatIon or transfer of Imported Inputs shall be
subject to payment of applIcable addItIonal customs
duty / excIse duty.
Such addItIonal customs duty / excIse duty would be
reImbursed to exporter as drawback.
n case of local sales by excIsable unIt, CEN7AT credIt
would equal excIse duty already paId.
CEN7AT credIt facIlIty shall be avaIlable for Inputs
eIther Imported or procured IndIgenously.
CorrespondIng Customs NotIfIcatIon 40/2006CUSTD|S
dated 1
st
|ay, 2006.
CorrespondIng Customs NotIfIcatIon

40/2006CUSTD|S dated 1
st
|ay, 2006.
ComparIson between Advance

AuthorIsatIon and 0FIA
Advance AuthorIsatIon 0FIA
Nontransferable Instrument. Transferable Instrument after
fulfIllment of 100 ED and
redemptIon Is obtaIned.
PosItIve 7alue AddItIon. 20 7alue AddItIon.
Cenvat can be claImed. ControversIes related to Cenvat
partIcularly for 0FAs Issued upto
J1.0J.2007.
ApplIcatIon can be made for
exIsted SDN or for Adhoc norms.
ApplIcatIon can be made on the
basIs of exIsted SDN only.
Subject to Actual User CondItIon. Subject to Actual User CondItIon
tIll ED Is dIscharged 100 and
redemptIon obtaIned.
0uty PemIssIon Scheme

The 0uty FemIssIon Scheme enables post export
replenIshment/ remIssIon of duty on Inputs used In the
export product.
0uty FemIssIon scheme consIst of:
(a) 0uty EntItlement Passbook Scheme [0EP8].
(b ) 0uty 0rawback Scheme
EarlIer 0FFC Scheme Is now dIscontInued w.e.f.
01.05.2006.

EP Is towards neutralIzatIon of basIc customs duty on
the Inputs. 0EP8, per se, Is duty credIt Instrument and
therefore allows Import of any permIssIble Input
IrrespectIve of the fact whether the same Input has
been utIlIzed In the export product or not. 0EP8 Is,
therefore, more flexIble In nature.
8oth 0EP8 are transferable Instruments and hence they
are equally easy to operate.
0uty EntItIement
Passbook Scheme
0uty EntItIement Passbook Scheme

[0EPj
DbjectIve of 0EP8 Is to neutralIze IncIdence of customs
duty on Import content of export product.
Component of SpecIal AddItIonal 0uty and customs duty
on fuel shall also be allowed under 0EP8 (as a brand
rate) In case of nonavaIlment of CEN7AT credIt.
CredIt may be utIlIzed for payment of Customs 0uty on
freely Importable Items.
The 0EP8 Is valId for a perIod of 24 months.
0EP
AddItIonal customs duty / ExcIse 0uty and SpecIal AddItIonal 0uty
paId In cash or through debIt under 0EP8 may also be adjusted as
CEN7AT CredIt or 0uty 0rawback as per 0oF rules
The 0TA supplIer can claIm 0EP8, In case where supplIes are made
to SEZ 0eveloper/SEZ unIts and payment receIved from ForeIgn
currency account of SEZ 0eveloper/SEZ unIt.
0EP8 and/or Items Imported agaInst It are freely transferable.
Transfer of 0EP8 shall however be for Import at specIfIed port,
whIch shall be the port from where exports have been made.
0EP
TransferabIe 0EP8 wIll be Issued only where the
payment Is receIved or shIpment Is made agaInst
confIrmed IrrevocabIe letter of credIt or
bIll of exchange Is uncondItIonally AvalIsed/ Co
Accepted/ Cuaranteed by a bank and the same Is
confIrmed by the exporters bank and certIfIed by the
bank In the relevant 8ank certIfIcate of export and
FealIsatIon.
n other cases, Nontransferable 0EP8 wIll be Issued.
Dnce the export proceeds receIved, the same 0EP8
shall be made transferable.
0EP
TIme perIod: The applIcatIon for obtaInIng 0EP8 shall be fIled
wIthIn a perIod of twelve months from the date of exports or
wIthIn sIx months from the date of realIzatIon or
wIthIn three months from the date of prIntIng/ release of
shIppIng bIll,
whIchever Is later, In respect of shIpments for whIch the claIm
have been fIled.
0EP
Customs VerIfIcatIon:
ShIppIng bIIIs Issued before 01.10.2005 and non-E0I ShIppIng
bIIIs wIll be verIfIed by Customs before allowIng Import.
n case of E0I shIppIng bIIIs Issued on or after 1-10-2005 from
E0 ports whIch are beIng transmItted electronIcally by
Customs to 0CFT, the 0EP8s Issued shall be sent to Customs at
the port of regIstratIon through an electronIc message
exchange system and the 0EP8 shall be regIstered at the port
of regIstratIon electronIcally.
No verIfIcatIon of shIppIng bIlls agaInst whIch such 0EP8s have
been Issued, wIll be requIred before allowIng Imports agaInst
these 0EP8s.
0EP
Present harket VaIue:
f 0EP8 rate Is 10 or more, the amount of credIt agaInst
export product should not exceed 50 of the Present |arket
7alue (P|7) and a declaratIon to thIs effect has to be gIven on
the ShIppIng 8Ill at the tIme of makIng the shIpment under
0EP8 scheme.
The P|7 consIsts of applIcable excIse dutIes, sales tax, octroI,
etc and therefore normally J0 more than FD8 value of
exports.
0EP
VaIue Cap:
There Is a system of value cap where IrrespectIve of the value
realIzed agaInst per unIt quantIty of export product, the 0EP8
Is gIven only upto a specIfIed value.
Let us say, the value cap Is Fs. J0/kg and the rate of 0EP8 Is
10. Even If exporter achIeves a rate of Fs. 40 FD8/kg, he
would not be entItled to claIm 0EP8 on Fs. 40/as value cap
restrIcts such entItlement at Fs. J0/kg.
0EP
PDSITIVE PDINTS DF 0EP SCHEhE
The credIt entItlement Is expressed as a percentage of FD8
value and therefore It represents the amount of duty credIt
avaIlable for debIt In Fupee terms.
SInce 0EP8 Is not a lIcence but an Instrument of duty credIt, It
Is free of nexus wIth respect to Item exported and Item
Imported.
Contd
0EP
PDSITIVE PDINTS DF 0EP SCHEhE
t Is also possIble that an exporter of readymade garments
gets hIs 0EP8 at a specIfIed rate and sells It to another person
who mIght Import chemIcals by usIng 0EP8 for debIt of duty.
Hence, acceptabIlIty of 0EP8 Is hIgher compared to any other
Instrument.
0EP8 offers flexIbIlIty because It can be utIlIzed for debIt of
duty agaInst any freely permIssIble Item.
0EP
NECATIVE PDINTS DF 0EP SCHEhE
SInce calculatIon of 0EP8 rate Is not based on the
actual customs duty lost, It may not be compatIble
wIth WTD rules.
WIth IncreasIng exports the amount of 0EP8 also
goes up. To thIs extent, the customs have to
forego actual duty receIpts In cash.
NotIfIcatIon
89/2005CUSTD|S dated 4th Dctober, 2005
0uty 0rawback
0uty 0rawback
heanIng Scope
0uty 0rawback" In relatIon to the export of IndIgenously
manufactured goods, means refund of dutIes paId on :
Faw materIals,
Component parts, and
PackIng materIals.
consumed In the productIon and export thereof and now also on
goods processed or on whIch any operatIon has been carrIed out In
ndIa. These dutIes may be dutIes of Customs paId on Imported
materIals and / or dutIes of Central ExcIse paId on IndIgenous
materIals.
0rawback Is not admIssIble In respect of duty paId on goods
exported under claIm of rebate of duty In terms of Fule 18 of
Central ExcIse Fules, 2002.
0uty 0rawback
No 0rawback where vaIue addItIon Is NegatIve
f the total foreIgn exchange spent on Inputs used In
the goods exported Is more than the F.D.8. value of the
exports, them no drawback wIll be paId.
No 0rawback If SaIe proceeds not reaIIsed wIthIn
TIme LImIt
Newly Inserted rule 16A of the Customs E Central
ExcIse 0utIes (0rawback) Fules, 1995 has made a
provIsIon for recovery of amount of drawback where
export proceeds are not realIsed wIthIn the perIod
allowed under the ForeIgn Exchange FegulatIon Act,
197J IncludIng any extensIon of such perIod.
0uty 0rawback
0rawback not handatory
Under SectIon 75 of the Customs Act, 1962, It Is
dIscretIonary wIth the Central Covernment to allow
drawback on goods manufactured In ndIa and exported
outsIde ndIa. Therefore, It cannot be saId that It Is
mandatory for the Covernment to grant drawback on
all goods manufactured In ndIa for export out of ndIa.
0rawback not AdmIssIbIe If Cenvat AvaIIed of
n case where exporters has avaIled CEN7AT credIt
under Fule of Cenvat CredIt Fules, 2002, they wIll not
get benefIt of duty drawback on Central ExcIse
AllocatIon.
0uty 0rawback
Types of 0rawback Pate 0etermInatIon
AII Industry Pate of 0rawback
The one whIch Is based upon determInatIon of average
IncIdence of dutIes suffered on Inputs used In the
manufacture of the product exported as manufactured
generally, such rates of 0rawback whIch are determIned
In terms of Fule J of 0rawback Fules, 1995 are known as
All Industry Fates" of 0rawback.
0uty 0rawback
rand Pate
The second provIsIon seeks to gIve relIef of actual amount
of dutIes suffered on the Inputs (not rebated/ relIeved
otherwIse) used In the manufacture of export product of
specIfIed descrIptIon/ characterIstIcs of a partIcular
manufacturer. ThIs rate determInatIon Is known as 8rand
Fate fIxatIon.
0uty 0rawback
SpecIaI rand Pate
Where any manufacturer/exporter fInds that the All
ndustry Fate of 0rawback fIxed for any class of goods Is
less than 4/5th of the dutIes paId on the materIals or
components used In the productIon/manufacture of the
goods he can make an applIcatIon for fIxatIon of an
approprIate rate of duty drawback for hIs product of
specIfIed descrIptIon/characterIstIc.
0uty 0rawback
Procedure for fIxatIon of rand Pate
A new procedure has been Introduced for fIxatIon of brand rate vIa
C8EC CIrcular No. 14 dtd. 06.0J.200J.
Further amendments have been made to thIs cIrcular vIa the
followIng cIrculars:
8JC8EC dtd. 18.09.200J
89C8EC dtd. 06.10.200J
97C8aEC dtd. 14.11.200J
108C8EC dtd. 17.12.200J
New 0uty 0rawback Pates

The New 0rawback Fates have been notIfIed vIde
NotIfIcatIon No. 68/2007Cus. (NT) 0T0. 16.07.2007.
As per Sr. No. 4 of thIs NotIfIcatIon, the new rates
announced wIII come Into force on 18th day of JuIy,
2007.
The rates whIch would be made applIcable
retrospectIvely w.e.f. 01.04.2007 are only for
specIfIed entrIes and not for every sIngle entry
covered In the NotIfIcatIon. LIst of these entrIes Is
provIded In the above NotIfIcatIon [Sr. No. 4].
Export PromotIon
CapItaI Coods Scheme
Export PromotIon CapItaI Coods Schemes

[EPCCj
ThIs scheme allows Import of capItal goods and spares
at concessIonal rate of duty [@J of Customs 0uty]
coupled wIth export oblIgatIon equIvalent to 8 tImes
the duty saved amount to be completed In 8 years.
EPCC
n case C70 Is paId In cash on Imports under EPCC, the
IncIdence of C70 would not be taken for computatIon
of net duty saved provIded the same Is not Cenvated.
EPCC
Imports under EPCC:
The capItal goods, IncludIng
W spares (IncludIng refurbIshed/recondItIoned spares),
W tools,
W jIgs,
W fIxtures,
W dIes and moulds.
Second hand capItal goods wIthout any restrIctIon on age may
also be Imported under the EPCC scheme.
EPCC
Imports under EPCC:
Import of Spares:
Spares (IncludIng refurbIshed / recondItIoned spares), tools,
spare refractorIes and catalyst for exIstIng plant and
machInery (Imported earlIer, under EPCC or otherwIse) Is
allowed to be Imported subject to an export oblIgatIon
equIvalent to 8 tImes of duty saved to be fulfIlled In 8 years
reckoned from AuthorIsatIon Issue date.
EPCC
Imports under EPCC:
Import of spares:
W The applIcatIon shall contaIn lIst of plant/ machInery
Installed In the factory/ premIses of applIcant, duly
certIfIed by Chartered EngIneer or JurIsdIctIonal Central
ExcIse AuthorItIes.
W EPCC AuthorIsatIon must IndIcate the followIng:
- Name of plant/machInery for whIch spares are
requIred.
- 7alue of duty saved allowed under the AuthorIsatIon.
- 0escrIptIon of product to be exported wIth value of
export oblIgatIon as per the PolIcy.
EPCC
Imports under EPCC:
Import of spares:
W The InstallatIon certIfIcate shall be submItted by the
Importer wIthIn a perIod of three years from the date of
Import. [provIsIon Inserted vIde PN ND. 22/2007 (FE)
0T0.17.07.2007].
W At the tIme of fInal redemptIon of export oblIgatIon
AuthorIsatIon holder wIll have to submIt certIfIcate from
the ndependent Chartered EngIneer confIrmIng the use of
spares, tools, spare refractorIes and catalysts In the
Installed capItal goods on the basIs of stock E consumptIon
regIster maIntaIned by AuthorIsatIon holder.
EPCC
EIIgIbIIIty:
The scheme covers manufacturer exporters wIth or
wIthout supportIng manufacturer(s)/ vendor(s),
merchant exporters tIed to supportIng manufacturer(s)
and servIce provIders.
CondItIons for Import of CapItaI Coods:
mport of capItal goods Is subject to Actual User
condItIon tIll the export oblIgatIon Is completed.
EPCC
IncentIves for Fast Track CompanIes:
n cases where the AuthorIsatIon holder has fulfIlled
75 or more of the export oblIgatIon under the
Scheme (IncludIng average level of exports) In half or
less than half the orIgInal export oblIgatIon perIod
specIfIed In the AuthorIsatIon, the remaInIng export
oblIgatIon Is condoned and the AuthorIsatIon
redeemed by the lIcensIng authorIty concerned.
EPCC
IndIgenous SourcIng of CapItaI Coods
A person holdIng an EPCC AuthorIsatIon may source the
capItal goods from a domestIc manufacturer Instead of
ImportIng them.
The domestIc manufacturer supplyIng capItal goods to EPCC
AuthorIsatIon holders are elIgIble for deemed export benefIts
W Advance AuthorIsatIon for crItIcal components or raw
materIals or 0eemed Export 0rawback.
and
W Fefund of termInal excIse duty.
The domestIc sourcIng from EDU unIt Is also permItted. Such
supply by EDU wIll be counted for the purpose of fulfIllment
of NFE.
EPCC
FuIfIIIment of Export DbIIgatIon:
Export DblIgatIon Is 8 tImes of duty saved amount and It
Is to be fulfIlled over a perIod of 8 years.
lock-wse mantenance oj mnmum exort oblyaton
has been dsensed wth n the recent Annual
Udaton oj FTP.
EPCC
CondItIons for FuIfIIIment of Export DbIIgatIon [EDj:
FollowIng exports Is to be consIdered for fulfIllment of ED
W Export oblIgatIon shall be fulfIlled by export of goods,
manufactured / servIces rendered by the applIcant. There
s no co-relaton to be establshed]
W ProductIon corelatIon wIth Imported plant and machInery
under EPCC under EPCC Is no more requIred.
W 0Irect and thIrd party exports.
W Export proceeds to be realIzed In freely convertIble
currency except for deemed exports.
Contd...
EPCC
W haIntenance of Average:
The export oblIgatIon under the scheme has to be, over and
above, the average level of exports achIeved by
AuthorIsatIon Holder In the precedIng three lIcensIng years.
Such average would be the arIthmetIc mean of export
performance In last J years.
However, certaIn categorIes such as handIcraft, handlooms,
cottage and tIny IndustrIes, agrIculture, etc. except
servIces are exempted from maIntenance of average as per
the provIsIon of Para 5.7.6 of H8P 71.
Contd...
EPCC
Export oblIgatIon may also be fulfIlled by exports of group
company whIch has EPCC AuthorIsatIon.
However, In such cases, addItIonal export oblIgatIon
Imposed shall be over and above average exports
achIeved by unIt / company / group company In
precedIng three years, despIte exemptIon In Para 5.7.6 of
H8P v1.
For thIs purpose, average would be based on prevIous
export of goods and servIces put together.
Contd...
EPCC
ShIpments under Advance AuthorIsatIon, 0FFC, 0FA, 0EP8 or
0rawback scheme would also count for fulfIllment of EPCC
export oblIgatIon.
The supplIes made to the DIl and Cas sector can be counted
towards dIscharge of ED provIded the AuthorIsatIon has been
Issued on or before J1.J.2000 and no deemed exports benefIt
has been claImed on such supplIes.
Contd...
EPCC
ForeIgn exchange counted towards fulfIllment of export
oblIgatIon (over and above the average) shall not be
elIgIble for IncentIves / rewards under promotIonal
measures / schemes.
herever more than one EPC authorsatons are
ssued smultaneously or concurrently, jresh EPC
authorsaton would buld uon last averaye
exort oblyaton only, notwthstandny actual
achevements.
Contd...
EPCC
Foyalty payments receIved In freely convertIble currency and
foreIgn exchange receIved for FE0 servIces shall also be
counted for dIscharge under EPCC.
Payment receIved In rupee terms for port handlIng servIces, In
terms of Chapter 9 of FTP shall also be counted for export
oblIgatIon dIscharge.
Contd...
EPCC
haIntenance of Average Export under EPCC:
ExampIe:
Let us say:
Average Exports - Fs. 20 crores
0uty saved amount - Fs. 10 crores
The ED Is In addItIon to maIntaInIng the annual average
for the same or sImIlar product. f your average Is Fs.
20 crore and duty saved amount Is Fs. 10 crore your
total oblIgatIon would be as under:
Contd...
a) Average Exports X 8 (20 X 8)

b) 8 tImes the duty saved amount
(10 X 8)
Total
:
:
:
Fs. 160 crore
Fs. 80 crore
Fs. 240 crore

=========
To be completed In 8 years
Every year you wIll fIrst dIscharge average and then the addItIonal
ED.
For e.g. - please refer followIng Table.
Contd...
Year Average
to be
maIntaIn
ed
Fs. n
crore
AddItIonal export
oblIgatIon
Fs. In crore
Actual Exports say
Total exports
Fs. In crore
Dffered
towards
annual
average
Fs. In crore
Dffered
towards
addItIonal
ED
Fs. In crore
1 20 22 20 2
2 20 25 20 5
20 40 21 20 1
4 20 J0 20 10
5 20 J1 20 11
6 20 J5 20 15
Total
120
=======
44
======
Contd...
From thIs table you wIll understand that average has to be

dIscharged fIrst and whatever exports you do addItIonally, those
exports would be counted towards dIscharge of addItIonal ED.
Suppose, you complete entIre 240 crore In fIrst sIx years, you wIll not
be requIred to maIntaIn annual average subsequently. There Is also
another provIsIon where If you export 75 of your total exports In 4
years or less than 4 years (IncludIng average), you wIll not have to
complete balance 25. [Please refer para 5.11 of ForeIgn Trade
PolIcy.]
The followIng table shows how It can be done:
Contd...
Year TotaI
exports
effected
by you
say
[Ps. In
crorej
CaIcuIatIons
1 J0 Average for 4 years (20 X 4) = Fs. 80 crore
75 of addItIonal ED = Fs. 60 crore
(75 of 80 crore)
_____________
Total = Fs. 140 crore
========
2 J0
J J0
4 50
140
====
f your ED Is dIscharged as above, you can redeem your case In the 5th
year Itself.
Contd...
EPCC
ExtensIon of Export DbIIgatIon PerIod:
1st ExtensIon up to 2 years -
W subject to payment of composItIon fees of 2 of the
total duty saved.
DF
W an enhancement In ED Imposed to the extent of 10 of
the total ED.
2nd ExtensIon up to 2 years -
subject to condItIon that 50 of duty payable In
proportIon to the unfulfIlled export oblIgatIon Is paId by
the AuthorIsatIon holder to the Customs authorItIes
before an endorsement of extensIon Is made on the EPCC
AuthorIsatIon by the FegIonal authorItIes.
EPCC
n case the fIrm Is stIll not able to complete the export
oblIgatIon the duty already deposIted wIll be deducted
from the total duty plus Interest to be paId for ED
default.
WaIver of ED may be consIdered where, because of force
majeure or other unforeseen cIrcumstances / reasons,
exporter Is unable to fulfIll export oblIgatIon. Such
requests shall be consIdered by a commIttee comprIsIng
representatIve(s) of 0oC and 0oF under 0CFT. 0ecIsIon of
thIs commIttee shall be notIfIed by 0oF for
ImplementatIon.
EPCC
honItorIng of Export DbIIgatIon:
Progress report on fulfIllment of ED Is to be
submItted by J0
th
AprIl every year.
FegIonal authorIty wIll Issue partIal ED FulfIllment
CertIfIcate to the extent of ED fulfIlled In a
partIcular year.
EPCC
haIntenance of Pecords
Every EPCC AuthorIsatIon holder wIll have to maIntaIn,
for a perIod of J years from the date of redemptIon, a
true and proper account of the exports/supplIes made
and servIces rendered towards fulfIllment of export
oblIgatIon under the scheme.
NotIfIcatIon
97/2004CUSTD|S dated 17th September, 2004.
Export DrIented UnIts
[EDUsj
Export DrIented UnIts [EDUsj

UnIts undertakIng to export theIr entIre productIon of
goods and servIces except permIssIble sales In 0omestIc
TarIff Area (0TA) are known as Export DrIented UnIts
(EDUs).
EDUs are allowed to manufacture goods IncludIng
repaIr, remakIng, recondItIonIng, reengIneerIng, and
renderIng of servIces wherever applIcable.
Export DrIented UnIts [EDUsj

TradIng actIvIty Is however, not permItted under EDU
scheme.
Dnly project havIng a mInImum Investment of Fs.1
crore and above In plant and machInery shall be
consIdered for establIshment under EDU scheme.
When one shouId set up an EDU

Faw materIals/components are maInly Imported.
New capItal goods or second hand capItal goods are to be
Imported/purchased and Installed.
Where the orIentatIon of the company Is towards export and not
towards 0TA sale as under the new polIcy 0TA sale permIssIon Is
lImIted to 50 of physIcal exports In value terms and therefore In
order to enjoy the benefIts of 0TA the company must export
physIcally.
T benefIts for a New unIt and T benefIts for ConversIon of 0TA
Into EDU (as per C80T CIrcular No. 1 0td. 06.01.2005) are to be
consIdered.
When hassle free operatIons are desIred. (SInce there Is no need of
applyIng for AuthorIsatIons lIke Advance AuthorIsatIon etc.)
enefIts of EDUs
0uty free Import/procurement of
Faw materIals
CapItal goods
Second hand capItal goods wIthout age lImIt
Except Items prohIbIted under TC (HS)
EDUs operate under system of no lIcence. Hence,
there Is no need of makIng separate applIcatIon for
Advance AuthorIsatIons, whIch ultImately results Into
hassle free operatIons.
LocaI Procurement under EDU

EDUs are allowed to source the materIals, capItal goods etc. from
local supplIer.
The procedure to be followed Is laId down In ExcIse NotIfIcatIon
22/200JCE 0td. J1.0J.200J.
EDU UnIt wIll have to obtaIn CTJ to procure excIse duty free
materIals from 0TA.
The local supplIer wIll get 0eemed Export 8enefIts.
nterest on delay In refund of CST would be paId, as notIfIed.
New AppendIx 14D" has been added. t contaIns procedure In
respect to outstandIng export commItment under EPCC and
Advance AuthorIsatIon Scheme.
Important NotIfIcatIons
NotIfIcatIon No. 52l2003-Cus. dtd. 31.03.2003
ExemptIon to specIfIed goods Imported or procure from
PublIc/PrIvate warehouse or from nternatIonal
exhIbItIons held In ndIa by EDU for productIon or
packagIng or job work for export of goods and servIces
NotIfIcatIon No. 22l2006-Cus. dtd. 01.03.200
AddItIonal duty In lIeu of Sales Tax/7AT - ExemptIon to
specIfIed goods
Important NotIfIcatIons
NotIfIcatIon No. 22l2003-CE dtd. 31.03.2003
ExemptIon to goods brought Into EDU unIts
NotIfIcatIon No. 23l2003-CE dtd. 31.03.2003
ExemptIon to 0TA Clearances of specIfIed goods
produced In EDU
0eemed Exports
0eemed Exports
ThIs Is a specIal facIlIty provIded for supplIes of
IndIgenous products whIch can be consumed ultImately
In the productIon of goods to be exported. The
condItIons are that supplIed goods as It Is do not leave
the country but get consumed In the process of
manufacture, payment for whIch Is receIved In ndIan
Fupees or In foreIgn exchange.
The categorIes elIgIble for deemed exports benefIts are
gIven In Para 8.2 of ForeIgn Trade PolIcy whIch are
lIsted here below:
0eemed Exports
SupplIes to
AuthorIsatIon
Holder
[Adv. Autho./
AAL/
0FA]
SupplIes to
EDUS/
EHTPs/
STPs/
8TPs
SupplIes to
Projects
mportant ProvIsIons
enefIts:
These benefIts are covered under Para 8.J of ForeIgn Trade
PolIcy whIch are as under:
a) Advance AuthorIsatIon/Advance AuthorIzatIon for Annual
FequIrement/0FA.
or
b) 0eemed Exports 0rawback.
c) ExemptIon from termInal excIse duty where supplIes are
made agaInst nternatIonal CompetItIve 8IddIng. n other
cases, refund of TermInal ExcIse duty wIll be gIven.
mportant ProvIsIons
As far as (a) and (b) are concerned, these are mutually exclusIve
because If exemptIon from duty Is claImed, refund cannot be
claImed.
Hence, deemed exporter wIll eIther claIm Advance AuthorIsatIon
for ntermedIate supply/ Advance AuthorIsatIon for deemed
exports/ 0FA or deemed exports duty drawback.
0eemed exports duty drawback can be claImed on the basIs of All
ndustry rate or on the basIs of 8rand rate followIng the
procedure for fIxatIon of brand rate.
The deemed exports duty drawback Is refunded by 0CFT.
mportant ProvIsIons
As far as claImIng of refund of TermInal ExcIse 0uty (TE0) Is
concerned, the same prIncIple applIes.
TermInal ExcIse 0uty need not be paId by the deemed exports
supplIer If the supplIes are gIven to EDU unIts under exemptIon
notIfIcatIon no. 22 dtd. J1.0J.200J (whIch Is commonly known as
CTJ procedure) or when supplIes are made to Advance LIcence
holder under excIse notIfIcatIon no. 44 dtd. 26.06.2001.
n all other cases, deemed export supplIers have to pay TermInal
ExcIse duty and claIm refund, except when supplIes are made
agaInst InternatIonal competItIve bIddIng.
f the recIpIent unIts take CEN7AT credIt of termInal excIse duty,
then also the Covt. wIll not grant refund.
mportant ProvIsIons
n case of deemed exports duty drawback as well as
refund of termInal excIse duty, both are to be claImed
from lIcensIng authorItIes alone.
0eemed exports, per se, are monItored by 0CFT and
ExcIse and not by Customs.
n case of EDU, Fefund of TermInal ExcIse 0uty and
0uty 0rawback must be claImed from the concerned
0evelopment CommIssIoner.
SuppIy to SEZ
0eveIoperlSEZ UnIt
SuppIy to SEZ 0eveIoperlSEZ UnIt

PuIe 30 - Procedure for procurements from the 0TA:
The supplIes from 0TA to a SEZ unIt, or to SEZ developers for
theIr authorIzed operatIons InsIde a SEZ, may be treated as
physIcal exports.
SupplIes from 0TA to SEZ are exempted from payment of any
Central ExcIse duty under Fule 19 of Central ExcIse Fules,
2002. [Under 8ond]
SImIlarly, such supplIes are elIgIble for claIm of rebate under
Fule 18 of Central ExcIse Fules, 2002 subject to the fulfIllment
of condItIons laId there under.
The rovsons relatny to exorts under entral Excse Act,
1944 and rules made there under may be aled, mutats-
mutands, n case oj rocurement by SEZ unts 8 SEZ
develoer jrom TA jor ther authorzed oeratons.
Dther
SEZ UnIt
[Sub-PuIe 15j
InternatIonaI
ExhIbItIon
heId In IndIa
[Sub-PuIe 13j
Procurement
From EDUl
STPlEHTPlTP
[Sub-PuIe 14j
Procurement
wIthIn IndIa
[PuIe 30j
onded
Warehouse
[Sub-PuIe 12j
From 0TA unIt
[Sub-PuIe
1 to 11j
(1)
(2)
(3)
(4)
(5)
Step 1:
0TA unIt wIII cIear the goods from hIs
premIses:
Where export benefIts
are not avaIIed
Where export benefIts
are avaIIed
CIearance wIII be
on the basIs of
1. APE-1,
2. III of Exports
Dn the basIs of APE-1
Contd
Step 3:
efore arrIvaI of goods, AuthorIsed DffIcer [ADj
assess the APE-1 andlor III of Exports, as per
the InstructIons, procedures, IncIudIng examInatIon
norms appIIcabIe to export goods.
It Is mandatory at thIs stage to check whether goods
are requIred for authorIsed operatIons by the SEZ unIt
or SEZ 0eveIoper wIth reference to the Letter of
ApprovaI [LDAj.
Step 2:
ExecutIon of ondlLUT as appIIcabIe In case of normaI
exports
Contd
Step 4:
Dn arrIvaI of goods Into from 0TA to SEZ Cate,
AuthorIsed DffIcer wIII examIne the goods
In respect of partIcuIars gIven In the APE-1, InvoIce,
III of Export and packIng IIst and aIso as per
the examInatIon norms IaId down In respect of
export goods In cases where the goods are beIng
procured under cIaIm of an export entItIement.
Contd
Step 5:
APE-1 andlor III of Exports, as endorsed by AD Is
treated as 'proof of export'.
After the goods are admItted In the SEZ, the copy of
such APE-1 andlor III of Export Is to be submItted
to the JurIs. CentraI ExcIse DffIcer of
0TA suppIIer, wIthIn 45 days.
SuppIy to SEZ 0eveIoperlSEZ UnIt

Procedure In case where goods are procured from a 0TA,
who Is not regIstered wIth the CentraI ExcIse authorItIes,
or Is a trader or merchant exporter:
The above procedure wIll be applIcable mutcts mutcnds,
except that the goods are to be brought to the SEZ under the
cover of an nvoIce and the AFE1 wIll not be requIred.
The SEZ UnIt/0eveloper may also procure goods from 0TA
wIthout avaIlIng exemptIons, drawbacks and concessIons on
the basIs of InvoIce or transport documents, Issued by the
supplIer;
n thIs case, InvoIces or transport documents are to be
endorsed to the effect that no exemptIons, drawbacks and
concessIons have been avaIled on the saId supplIes.
108k f00
VaIbhav Nagarkar
CeneratIon Next usIness ConsuItIng
humbaI:
A-203, Everest Chambers,
Next to Star TV DffIce,
Near haroI Naka,
AndherI-urIa Poad,
AndherI (East), humbaI - 400 05.
TeI: 28507615l2850732l6576126
Fax: 2850641
E-maII: mumbaI@gnbc.co.In
Pune:
EPI Centre, Dpp. Indsearch,
Law CoIIege Poad, Pune 411004.
TeI:(+1) 020 6524615
Fax: (+1) 020 2546515
E-maII:pune@gnbc.co.In

EXIM &amp FTP

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IhPDPT,EXPDPT,

ContInued from the prevIous slIde

ln order to understand jull mlcatons oj

FLDW CHAPT - I (contInue from the prevIous sIIde)

CommercIaI l PeguIatory 0ocuments

Export SaIes Contract

Export SaIes Contract

Export SaIes Contract

Export SaIes Contract

0ocuments for avaIIIng varIous Export

0ocuments for avaIIIng varIous Export

0ocuments for avaIIIng varIous Export

CertIfIcate of DrIgIn [CDDj

CertIfIcate of DrIgIn [CDDj

PreferentIaI CertIfIcate of DrIgIn

PreferentIaI CertIfIcate of DrIgIn

Non-preferentIaI CertIfIcate of DrIgIn

Export 0ecIaratIon Forms (CPlS0F)

Export 0ecIaratIon Forms (CPlS0F)

Export 0ecIaratIon Forms (CPlS0F)

Statutory 0ecIaratIon Form [S0Fj

Statutory 0ecIaratIon Form [S0Fj

ank PeaIIsatIon CertIfIcate

ank PeaIIsatIon CertIfIcate

ank PeaIIsatIon CertIfIcate

III of LadIng (lL)

III of LadIng (lL)

III of LadIng (lL)

III of LadIng (lL)

III of LadIng (lL)

III of LadIng (lL)

III of LadIng (lL)

III of LadIng (lL)

III of LadIng (lL)

III of LadIng (lL)

AIrway III (AW)

AIrway III (AW)

TIps for Proper 0ocumentatIon

TIps for Proper 0ocumentatIon

0ocuments agaInst payment

0ocuments agaInst acceptance

Important TIps to the Exporter

Important TIps to the Exporter

LIst of maIn Acts, PuIes and

LIst of maIn Acts, PuIes and

Import CeneraI hanIfest

Import Procedure - E0I

Import Procedure - E0I

Import Procedure - E0I

Import Procedure - E0I

Import Procedure - E0I

Import Procedure - E0I

Import Procedure - E0I

Tyes oj ARE jorm and ther relevance

Tyes oj ARE jorm and ther relevance

Tyes oj ARE jorm and ther relevance

Tyes oj ARE jorm and ther relevance

Tyes oj ARE jorm and ther relevance

CIearance of Export Cargo under ExcIse SupervIsIon

CIearance of Export Cargo under ExcIse SupervIsIon

CIearance of Export Cargo

PegIstratIon FormaIItIes at customs If cIaImIng Export