CUSTOMSCENTRAL EXCISE EXPORT

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CUSTOMS/CENTRAL EXCISE EXPORT IMPORT
PROCEDURES
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• CUSTOMS EXPORT POCEDURES
• 1) Who should follow the Procedures?
• Person In Charge of the conveyance.
• Exporter.

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2) Procedure for Person -In -Charge

• Airline / Shipping line / Steamer Agent to be
  registered in customs for electronic Processing
  of Document.
• Entry outward / loading of Cargo.
• contd

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contd

• Prior Submission of Shipping Bill / Bill of
  loading to Customs.
• In case of Baggage / mail bags, Shipping Bill is
  not necessary, but customs permission is
  required.
• Submission of EGM.

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3) Procedure for Exporter

• Obtain BIN / DGFT.
• Open a current A/c with designated Bank for
  credit of duty drawback claims.
• Register Export licenses with customs,if exports
  are under Export Promotion Scheme.
• Submit Shipping Bill / Bill of export / ARE /
  Loc.

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Noting

Shipping Bill (41), GR / SDF - 2
Assessment
Non-DBK
DBK claim
Examination Order
Duty
Duty Free
Audit
Carting
Examination
Stuffing of container if not done in Factory / ICD
Let Export Order
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Customs Import Procedures

• Who should follow the Procedures?
• Person In Charge of the conveyance.
• Importer.

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2) Procedure for Person In _Charge

• Arrival at customs port / airport only.
• IGM to be filed.
• Grant of Entry Inwards by customs officer.
• Unloading of goods.
• Goods to be in custody till customs clearance.

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3) Procedure for Importer

• File Bill of Entry.
• LOC / Contract order / Invoice /Packing list /
  Import license / Insurance etc. / Declaration
  Form.
• Obtain Customs Clearance.

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Noting

BOE/Yellow Color (Bond)
BOE (White) Home Consumption
Assessment
First Method
Second Method
Examination
Pre- audit
Duty Payment /Bond
First Method
Second method Examination
Delivery
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Customs classification Valuation

• The customs tariff read with ITC
• Exim regulations
• Correct classification
• Reading of exemption notifications
• Transaction value as the basis of customs duty
  payment

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Types of customs duty calculation

• Basic customs duty
• Additional duty of customs (CVD) equal to excise
  duty
• Additional duty of customs (CVD) equal to VAT
• Anti dumping duty
• Safeguard duty
• NCCD

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Export Benefits Customs procedures

• Duty Drawback
• Customs allocation.
• Excise allocation.
• All Industry Rate.
• Brand Rate.
• Special Brand Rate.
• DBK I, II, II A III Forms.
• Claim Sanction / Disbursal.
• Not admissible in certain cases

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EOU

• Chapter 6 of FTP 2004 09.
• Customs/ Excise/ FTP/ FEMA Laws intersect.
• IT benefits.
• Minimum investment of Rs.100 Lakes.
• _Permissible areas.
• Requirement of NFE.
• Supervision by Development Commissioner.
• B 17 Bond/ ER 2 Return.
• CT 3/ PC Procedure

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contd

• Supplies to DTA.
• Exit/ conversion.

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3) Advance Authorization / DFIAS

• Granted by DGFT.
• Duty free import of inputs.
• Types of Advance licenses
• Export obligation
• Application/ Discharge Procedure.
• Period of Validity.

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4) DEPB

• Post export duty remission scheme.
• Period of validity.
• Scrip transferable, after realization of export
  proceeds.

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EPCG

• Licence holder can import capital goods at a
  concessional tariff.
• Conditions as per chapter 5 of FTP.
• Export Obligations.
• Period of validity.

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Central Excise Procedures

• Exports are duty free
• Rebate on excise duties paid on finished goods as
  well as inputs input services
• No bond for manufacturer-exporters but only a
  letter of undertaking
• Bond for merchant exporters

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continued

• Form ARE 1
• Self sealing self certification available
• Proof of export
• Refund of cenvat credit on export
• Sales to SEZ are treated as export and eligible
  for duty exemption benefits

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Service tax concessions

• Service exports are tax free
• Refund of input duty and input service tax
• Form ASTR 1 for refund of service tax paid on
  export of services
• Form ASTR 2 for refund of input duty and input
  service tax
• Service sales to SEZ exemption procedure

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Marine cargo insurance

• What is marine cargo insurance
• Insurance in CIF contracts
• Type of cover
• Open cover
• Specific (voyage) policy
• Contingency (sellers interest) insurance