Rules of the Game

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Rules of the Game

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In the case of shed cargo, the Cock Challan is prepared, where the ship loads ... Fill up new applications details. Up dating applications already submitted ... – PowerPoint PPT presentation

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Title: Rules of the Game

1
Rules of the Game

How where to find Rules, Regulations, about
export Import Documentation, subsidies, taxes
,Government Related Institutions on the Net

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2
Government Departments

DGFT
Apeda
Coffee
Fepz
Fieo
Itpo
Diamond
Iift
iip

Mpeda
Mmtc
Ean
Rubber Board
Special Economic Zones
Spices Board
Stc
Tea Board
Tobacco

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3
More Places to go

Customs
Excise
Codex
Ports
Passports
Bis
Patents

Texprocil
Epch
Hhec
Hepc
Concor
Epc-list
Ecgc
Exim Bank

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4
Export Regulations

Procedure for export of goods
Quality Control Preshipment inspection
Excise Clearance
Customs Clearance

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5
Procedure for Executing Export Order - Proforma
Invoice

i) Name and address of the importer.(ii)
Description of goods it should be precise
indicating important technical     specifications
and physical features enabling the identification
of the product     easily.(iii)Price of the
product    should be quoted internationally
accepted or mutually agreed currency it should be
generally, should be on C.I.F. basis or in other
words, the price will include cost and charges
from carrying the product the place of exporter
to the destination port together with freight and
insurance. In case of discounts, it     should be
clearly mentioned.(iv)Condition of
sale    Since the proforma carries legal
obligations on the part of the exporter to supply
the goods to the importer if it is accepted by
the latter. Therefore it is necessart to mention
conditions of sale clearly. The important
conditions relating to the     validity of the
period of invoice, delivery schedule, inspection
of goods, and terms of payment should be very
clear. When the proforma invoice is accepted and
    communicated to the exporter, it becomes a
confirmed order for export. In the     process
the importer sends back the copy of the proforma
invoice duly signed     signalling the acceptance
of conditions contained in it. It also marks as
the     commencenent of the export transaction.

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6
Scrutinising the Export Order

The export order must clearly mention the mode
of payment involving letter of credit, documents
against payment (D/P) or documents against a
Acceptance (D/A) etc. The best mode of payment in
this context is through an irrevocable and
confirmed Letter of credit. The important terms
and conditions of export order i.e. delivery
schedule, packing, inspections marketing etc.
must agreed should be strictly admitted. The
documents needed by the importer must be
forwarded to the negotiating bank in the proper
specified form and manner. It is the duty of the
exporter to confirm the export order only when he
finds the terms satisfactory and according to
agreed terms. Primaryinfo.com

7
Allocating the Goods

After confirming the export order, it becomes
necessary to make arrangement for producing the
goods to meet export order. An internal indent is
increased on the manufacturing unit mentioning
almost all the particulars of the export order
together with the importer's instructions and the
date by which the goods must be ready and other
formalities completed, date of shipment etc.
There remains nothing to be left on the
discretion of the works manager. Primaryinfo.com

8
Clearance from Excise and Inspection Authorities

Once the goods have been manufactured or
procured, the exporter has to proceed for getting
clearance from the excise and inspection
authorities. For getting clearance from excise
authorities for clearance in two ways
(i) To pay the excise duty at the time of removal
of goods from the factory for export and later
claim for rebate of duty after the goods are
exported.(ii) To secure clearance under bond
which "involves entering into a bond with the
excise authorities make a debt entry in the Bond
Account of exporter. The obligation is discharged
as soon as the goods are exported. lt continuedgt

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9
With Excise Officials

exporter has to prepare two important document-
AR-4A form and Gate pass     form GP- 1 or GP-2
AR-4A form is prepared in quadruplicate and form
GP-1 or     GP-2 in triplicate. GP-1 form is used
when the exporter goods are removed from     the
factory under used when the exporter goods are
removed from the factory     under claim for
rebate of duty and from GP-2 is prepared when
goods are to be     removed under bond. The AR-4A
and GP-1 or GP-2 are submitted to the Range
   Superintendent, Central Excise who after
necessary formalities signs all the    copies.
The Central Excise office may make the physical
verification of the goods    at the factory and
seal the package on the request of the exporter.
In this case    form AR-4 will be used in place
of form AR-4A." All other formalities followed
are    the same The Central Excise Officer,
after scrutiny "returns the original and
   duplicate copies of form AR-4/AR-4A. The
triplicate copy is sent to Maritime    collector,
the fourth copy of form GP-2 is in the back to
the exporter by the Excise Department.

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10
Then Inspection officials.

the step should be taken under pre-shipment
inspection and Quality Control Act 1963 for
carrying out quality control and pre-shipment
inspection. The exporter the following documents
alongwith the application are to be submitted by
the exporter
(i) Copy of commercial invoice,(ii) A cheque or
demand draft in favour of the agency, and(iii) A
copy of the export contract.
The agency appoints an inspector to inspect the
export consignment at the factory in case the
goods are according to the prescribed
specifications, the inspector reports the senior
officer.

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11
No inspection if

There is a simple procedure for the regular
manufacturer exporter. For this purpose they are
recognised as an 'exporter worthy' unit by the
Export Inspection Council and such a unit has
only to submit an application for the goods to be
exported and therefore inspection is not
necessary. Thereafter the goods are sent to the
port of shipment and Railway Receipt is obtained.

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12
Transport packaging

The primary function of transport packaging in
marketing abroad is to ensure safe of the product
during transit. Mere insurance of the goods is no
excuse for not being careful about damages or
pilferage in transit. "The materials used in
packaging should be such that protect the goods
from the ill-effects of moisture, gas, light,
air, etc. so that goods may preserve its
attributes, shape, weight, stability, fragility
rigidity and durability etc." In this way
packaging plays an important part in the storage,
preservation, protection and distribution of the
product. The mandatory provisions regarding
packaging of the goods imported also have
important place in the packaging of goods for
exports. Primaryinfo.com

13
When the goods are dispatched to the port

thereafter the exporter applies for the marine
insurance policy, obtained in duplicate. This is
the stage at which of all formalities regarding
floor price regulations, canalations certificate
origin, ECGC cover and consular invoice (if
necessary) are completed. Then the exporter
sends the documents listed (next slide)to his
clearing and forwarding accompanying detailed
instructions Primaryinfo.com

14
the documents listed are

(i) commercial invoice in duplicate
mentioning full particulars of the products,
packages, price and the market real value,(ii)
Original Export order in original, (iii)
Original L/C,(iv) form showing code no,(v)
4A-AR/AR-4 (original and duplicate),(vi) Excise
gate pass (original), (vii) Packing and weight
lists,(viii) Certificates of inspection,(ix)
Declaration form in triplicate, (x) Consulare
invoice (where necessary),(xi) Export licence,
(xii) purchase memo, and(xiii) Railway Receipt."

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15
Obtaining Shipping Bill

The clearing and forwarding agent takes delivery
of the goods from the Railway and arranges for
warehousing. He then prepares shipping bill. Here
it must be mentioned that there are three types
of shipping bill namely
(i) shipping bill for duty-free goods(ii)
Dutibale shipping bill, and(iii) Drawback
shipping bill.
The agent should submit in five copies of the
shipping bill to the Custom House together with
the necessary (i) to (xiv) documents mentioned
above. The shipping bill is then undergoes
processing in the Custom House and passed.

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16
Shipment gt port authorities

Thereafter the clearing and forwarding agent
submits the Port Trust copy of the Shipping Bill
to the shed superintendent of the Port Trust. "He
allows to bring the export cargo to the transit
shed for physical examination. In the case of
shed cargo, the Cock Challan is prepared, where
the ship loads overside, the dock charges are
indicated on the shipping Bill and no dock
challan is prepared. The dock challan is then
processed and is handed over to the clearing and
forwarding agent after necessary formalities viz.
After collection of cheque or cash. The shipping
Bill including dock challan is submited the port
trust authorities. In case of overside cargo,
Cart ticket, Boat Note along with shipping bill
and Dock challan are carried by the Authorised
Licensed accompanying the goods for making the
cargo is checked, and the necessary documents are
examined and then super who cargo takes over
control of the cargo for shipment."

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17
the shipping company

Then takes place the registration of the Boat
Note and the shipping Bill. The Mates Receipt is
prepared by the ships export clerk after loading
the goods. "It is signed either by the captain of
the ship or his agent and delivered to
port-commissioner's shed. The clearing and
forwarding agent makes the payment of the port
charges and collect the Mate's Receipt. It is
then presented to the preventive officer for
certifying the fact of shipment on all copies of
the documents which need post-shipment and
endorsement from the preventive office. The
clearing and forwarding agent obtains the bill of
lading (two copies negotiable and about a dozen
non-negotiable) from the shipping company against
the Mate's Receipt."

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18
Post-shipment Formalities

After shipment the clearing and forwarding agent
submits following documents to the exporter
(i) Full set of Bill of lading, (Negotiable and
Non-negotiable copies, (ii) Export promotion
copy of the shipping Bill,(iii) Copies of
customs invoice,(iv) AR-4A/AR-4 (duplicate),
(v) one attested copy of commercial invoice,
(vi) Export order, (original)(vii) Original
letter of credit, (viii) Railway concession form
must be duly attested by customs authorities.

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19
Maritime collector of Central Excise

When the exporter receives these documents he
completes the required formalities, and then
files a claim with the Maritime collector of
Central Excise in the port town. The exporter
also sends following documents to the importer
(i) Shipment advice(ii) A non-negotiable copy
of the bill of lading,(iii) Custons invoice,
(iv) Commercial invoice and (v) Packing list
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20
Formalities with Negotiating Bank

When the goods are shipped and the required
documents are sent to the importer, now it is the
stage to collect the payment from the importer
and thus, the exporter contacts the 'negotiating'
bank. Where he is required to submit the
following documents (next slide) for the
materialization of the negotiation

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21
documents to the Bank

(i) GRI form (duplicate copy),(ii) Bill of
Exchange (First and second copy), (iii) Full set
of clean on board Bill of lading (three
negotiable and as many non- negotiable
copies are required)(iv) Original Letter of
Credit,(v) Commercial Invoice (two copies),(vi)
Packing list (four copies),(vii) Marine
Insurance Policy (two copies),(viii) Bank
certificate in prescribed form (two copies),(ix)
Consular Invoice," if necessary. Primaryinfo.com

22
Final phase

These documents are processed here in light of
the terms and conditions of the original L/C.
Then ollowing set of document is transmitted to
the importer by the first air mail. This is
followed by a secon set of these documents y the
second air mail to ensure that, in case the first
is misplaced in transit the importer may take
delivery of the consignment throught the
documents in the second set. These include(i)
Bill of Exchange,(ii) Custom Invoice,(iii)
Insurance Policy list. The original copy of the
bank certificate together with the attested
copies of the commercial invoice are returned to
the export. The duplicate copy of the bank
certificate is forwarded to the concerned joint
chief Controller of Imports and Exports.

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23
Claim for Export Incentives

Various incentives can be obtained on completing
the following formalities
(1) Import Replenishment Licence,(2) Cash
compensatory support, (3) Duty drawback, and(4)
Excise duty refund.

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24
Import Replenishment

To get the import replenishment license, exporter
must submit the prescribed application form
together with the following documents
(i) Treasury receipt as a proof of payment of
import application fee.(ii) Commercial invoice
duly attested by the negotiating bank,(iii)
Negotiating Bank's certificate in original,(iv)
Actual user's License,(v) Registration
certificate of the Concerned E.P.C.,(vi)
Statement of exports certifies by the negotiating
bank,(vii) Export Promotion copy of the shipping
bill,(viii) Five copies of the list of goods to
be imported.
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25
Cash assistance

A separate application for cash assistance is
submitted to the Joint Chief Controller of
Imports and Exports together with the same
documents as submitted for the import
replenishment license. "Alternatively, a
reference can be made in the application that the
document have been submitted in connection with
the import replenishment scheme" for the
exporters.

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26
Duty Drawback

In case an exporter wants to claim duty drawback
must fill a Drawback Shipping Bill. It is also an
application regarding duty and central excise
duty paid on all raw materials, components, and
consumable utilised in producing the final
products. The concerned departments process the
Drawback Shipping Bill and when he is satisfied
with the authenticity of the documents, issue a
refund order to the exporter. There is a
procedure to provide Drawback to the exporter in
advance immediately on presentation of the
shipping under 'Duty Drawback Credit Scheme 1976'
through the Eligible Bank. Such an advance is
provided for ninety days free of interest and is
adjusted. Primaryinfo.com

27
Refund of Excise duty

Through any of the following two methods,
exporter may obtain a refund of excise duty on
products
(i) paying it first and thereafter claim refund,
(ii) By entering into a bond, with the excise
authorities under bank guarantee. In such
cases good are cleared without payment of duty.
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28
Policy, Procedures