export import procedures and exim taxation

8/2/2019 Export Import Procedures and Exim Taxation

1/17


2/17

Registered under India company act

Registration with tax authorities, Exporter has to obtain PAN based BIN

Exporter need to license from custom, IEC No (10digit) used for export and

import (ANF2A)

Registration cum membership certificate from EPC

Registration with commodity board

Airline, Shipping line, Steamer agent, Port, Airport, CFS, ICD register withCustom Open current account in designated bank for drawback incentive

Register authorized foreign exchange dealer code

Registrations


3/17

Shipping BillEDI/ Non Edi

For export of goods by sea or air , Name of Shipper, Consignee, Invoice No, Details ofpacking, Description of goods, Quantity, FOB, 2 Copies

Five Types of Shipping Bills, Duty Free goods, Goods under claim for duty drawback, Dutyfree goods Ex bonded warehouse, Export of Dutiable goods, Under DEPB Scheme

Bill of Export

For Goods exported by road Goods under claim from Duty drawback, Dutiable goods, Duty free goods, Duty free goods

Ex bonded warehouse

Let ExportOrder

Checklist with other documents presented to customer officer for assessment/ Appraiser Documents such Packing list, Consular invoice, Commercial invoice, Certificate of

Inspection, Origin, Health and Fumigation, Contract, Letter of credit, Purchase order. Stuffing report, LET EXPORT for Shipment

EGM No andVia No

Liner Agent obtain VIA No (Terminal) and EGM No (Entry Outward) 14days in advance forvessel/voyage

Containers are moved to terminal under custom bond basis TSA filed by CFS/ICD operator.Once the container is gated in , Custom bond is cancelled by returning the TSA

Form13 issued by Liner to gate in container to terminal on liner account

Export Documentation and Procedure


4/17

Allowed forShipment

In case of bulk cargo shifted to port premises as per carting request/Berthing request ,ALLOWED FOR SHIPMENT is taken from customs

Once all containers as mentioned in shipping bill enter the terminal ALLOWED FORSHIPMENT is given by terminal custom officer .

Bill ofLading/EGM

Bill of lading ( 3 original copies) will be issued by Liner upon shipping the goods Mates Receipt is signed by Master is submitted to customs. Sailing report, EGM Regularization, EGM closing within 7 days of vessel departure for DEPB

DEPBScheme

Once all shipping bill in EGM are completed and EGM is closed, Exporter can avail thebenefit under DEPB Scheme or duty drawback

Documents

Shipping bill (4copies), Additional 1 copy for Duty drawback with endorsement (Non Edi) Shipping bill (2 copies) Edi Packing list (4 copies) Invoice (4 copies) ARE 1 for excise Insurance policy Letter of credit

Export Documentation and Procedure


5/17

Export duty as per Schedule 2In addition Custom tariff act makes provisions for duties like additional duty(CVD),

preferential duty, anti-dumping duty, protective duties, etc


6/17

IGM

IGM if filed by liner 48hrs before vessel arrival in case on long international voyage and24hrs before in case of short voyage, 12hrs in case of Airline

Item no is given to each bill of entry by liner IGM contain item no, Shipper, Consignee, Description of goods, Quantity, Designated

CFS/ICD

Bill ofEntry

Three types of bill of entry, Home consumption, Warehouse, Ex Bond clearance

Accompanied documents Signed Invoice , Bill of lading, Packing list, GATT declaration form,Importer declaration , License, Letter of credit, Insurance, Test report, Ad-hoc exemptionreport, Cert of origin, DEEC book/ DEPB Original

GoodsDelivery

In case of bulk cargo delivery order is issued by vessel agent upon sighting the original billof lading, Cargo delivery can be taken from port to requisite warehouse or designatedlocation. Custom formalities are completed prior to vessel berthing

In case of containerized cargo, Container shall be moved from terminal to designatedCFS/ICD normally within 3days to avoid storage charges by port

Containermovement

In case container is required to be moved from terminal to ICD location, TSA application isfiled by liner agent, Container are moved under custom bond/Seal to such location by trainor trailer

Custom bond shall be closed once the containers are received at the ICD location to avoidany penalty

Import Documentation and Procedure


7/17

(Chapter 1 - 5 ) - Section I-Live Animals; Animal Products

(Chapter 6-14 ) - Section II-Vegetable Products

(Chapter 15 ) - Section III-Animal or Vegetable Fats and Oils and theircleavage Products; Prepared Edible fats; animal or Vegetable waxes

(Chapter 16 -24 ) - Section IV-Prepared Foodstuffs; Beverages,Spirits and Vinegar; Tobacco and Manufactured Tabacco substitutes

(Chapter 25 -27 ) - Section V-Mineral Products

(Chapter 28 -38 ) - Section VI-Products of the Chemicals or AlliedIndustries

(Chapter 39 - 40 ) - Section VII-Plastics and Articles thereof; Rubberand Articles Thereof

(Chapter 41 - 43 ) - Section VIII-Raw Hides and Skins, Leather,Furskins and Articles thereof; saddlery and Harness; travel goods,Handbags and similar Containers; Articles of animal gut (other thansilk-worm Gut)

Classification of goods for import Schedule 1


8/17

(Chapter 44 -46 ) - Section IX-Wood and Articles of Wood; WoodCharcoal; cork and articles or cork; Manufactures of Straw, ofEsparto or of other Plaiting Materials; Basketware and Wickerwork

(Chapter 47 -49 ) - Section X-Pulp of wood or of other FibrousCellulosic Material; Recovered (Waste and Scrap) Paper orPaperboard; Paper and Paperboard and articles thereof

(Chapter 50 -63 ) - Section XI-Textile and Textile Articles

(Chapter 16 -24 ) - Section IV-Prepared Foodstuffs; Beverages,Spirits and Vinegar; Tobacco and Manufactured Tabacco substitutes

(Chapter 64 -67 ) - Section XII-Footwear, Headgear, Umbrellas, SunUmbrellas, Walking-sticks, seat-sticks, whips, Riding-crops andParts thereof; Prepared Feathers and articles Made therewith;artificial Flowers; Articles of Human Hair

(Chapter 68 -70 ) - Section XIII-Articles of Stone, Plaster, Cement,Asbestos, Mica or similar Materials; Ceramic Products; Glass andGlassware

Classification of goods for import Schedule 1Contd


9/17

(Chapter 71 ) - Section XIV-Natural or Cultured Pearls, Precious orSemi-Precious Stones, Precious Metals, Metals clad with PreciousMetal, and articles thereof; Imitation Jewellery; Coin

(Chapter 72 -83 ) - Section XV-Base Metals and Articles of BaseMetal

(Chapter 84 - 85 ) - Section XVI-Machinery and MechanicalAppliances; Electrical Equipment; Parts thereof; sound Recordersand Reproducers, Television Image and Sound Recorders and

reproducers, Television Image and sound Recorders andReproducers, and Parts and Accessories of such article

(Chapter 86 - 89 ) - Section XVII-Vehicles, Aircraft, Vessels andAssociated Transport Equipment



10/17

(Chapter 90 - 92 ) - Section XVIII-Optical, Photographic,Cinematographic, measuring, checking, precision, medical orsurgical Instruments and apparatus; clocks and watches; musicalinstruments; part and accessories thereof

(Chapter 93 ) - Section XIX-Arms and Ammunition; Parts andAccessories thereof

(Chapter 94 - 96 ) - Section XX-Miscellaneous Manufactured Articles

(Chapter 97 - 98 ) - Section XXI-Works of art, Collectors' Pieces andAntiques



11/17

As per rule 10 custom valuation rules, it is duty of importer to declare full value ofgoods

If assessing officer has doubts then he carry out valuation basis similar goods asper WTO agreement

In case of EDI system , Assessment and calculation is done by system itself

Custom duty can be paid by TR-6 challan in designated banks or current accountwith customs.

Duty Shall be paid within 5 working days of return of bill of Entry

Valuation


12/17

Taxation Duty rate Duty amount

Assessable value (A)CIF Value + 1% landing charge ofCIF

Basic Duty (B)

A x Basic duty

X %

Preferential duty (C)A X Pref duty

X %

CVD Additional Duty (D)(A + B) x add duty rate

X %

Central Excise education cess (E)D x Edu cess rate

3%

Custom Education cess (F)(B + C + D+ E ) X custom cess

3%

Special duty (G)(A + B + C + D+ E ) x special CVD

4%

Total Custom duty (B + C + D+ E +F+G)

Calculation of duty amount


13/17


14/17

Cost StructureActivity Vessel Owner Bareboat

CharterTime Charter(DisponentOwner)

VoyageCharter

Responsibility Master appointed byCharter

Master instructed byOwner for ship andby Charterer for cargo

Master instructed byOwner

RevenueHire for lease period Revenue generated

by Hire rate & durationRevenue basis hirerate duration

Revenue basisquantity of cargo andrate per unit of cargo

Operating cost Capital CostBrokerage

WagesRepairsMaintenanceStoresLub OilsWaterInsuranceOverheads

NA NA

Marine andPort cost

NA Marine and Port CostStevedoring costHold cleaningCargo claimsCanal Transit

Marine and Port CostStevedoring costHold cleaningCargo claimsCanal Transit

BunkerNA Bunker Bunker

COA :- Cost distribution same as vo a e charter


15/17

Charter Parties Dry bulk , Tanker and Liner

VoyageCharter

Gencon 1994 Fonasba Intertank voy 76 Asbatank

Time Chatrer

Baltime (Favor Shiponwer ) NYPE ( Favor Charter) Gentime Boxtime (Liner)

C/p Features

Charter parties has two parts main clauses and rider clause which override the main clauses

Main Clauses in Time charter Period of delivery, Trading areas, Cargo restriction andexclusion, Redelivery, Bunkers, Vessel Gears, Hire, Off-hire, Loss of vessel , Ownersobligation, Charterer obligation, Master obligation, Owner Requirement, Bill of Lading,Responsibilities, Sundries, Exception, Insurance, War risk, Law and Arbitration, Notices, Strikeclause, Vessel description, Bunker consumption, Loading capacities, Cargo Gears etc

Voyage Charter , Laycan, Laydays, Demurrage, Dispatch, Cancelling days , Cargodescription, Cargo Qty , Ports, Liner terms, Laytime (NOR), Lien, Bill of Lading, Freight

Charter party is basically COA for hire tonnage space on vessel and does not representgoods


16/17

Bills of ladingKey point and other docs

Contract between the Shipper and Owner for the good loaded on board the vessel. Issuedby Master , Agent or representing Owner office. Issued 3in original

A legal document for releasing the payment from bank in conjunction with letter of credit

A b/l must be signed by person authenticated by person issuing the document.

Must contain the name of ship carrying goods, Port of loading, discharging, Date of issue,Negotiable or non negotiable, Name of consignee , Cargo description, weight and volume.Freight terms and payment

If bill of lading has been endorsed, Endorsement shall be checked and then only deliveryorder shall be issued. Ensure freight is paid.

In case bill of lading does not arrive , Cargo can be released by letter of Indemnitysupported by bank guaranties. Master to appoint P & I . Cargo can be considered to bedischarged and kept in custody of warehouse.

Mates receipt, Interim document until Bill of lading is issued,.

Cargo Stowage plan , Packing List, Consular invoice, EGM, IGM, Statement of facts,

Draft Surveys, Log Abstracts,


17/17

Voyage EstimationKey points

Vessel Assessment :- GRT, NRT, Deadweight, LOA, Beam, Class, Cargo capacity,Hold and Deck Stowage, Age

Mapping proposed employment :- Distance, Weather, Load line Zones, Canaltransit, waiting time, Bunkering, Port Information, Delays, Loading/Dischargingtime.

Estimation of cargo quantity :- Draft, Displacement, Density, Ballast, Fuel Oil,

Diesel Oil, Lube Oil, Fresh Water, Constant , Light Ship, Stowage Factor, Balecapacity, Grain capacityie Full load weight = Bale or Grain Capacity/ SF

Expenses Calculation :- Fuel Consumption at Sea and in port, Port Expenses,Stevedoring if applicable , Agency fees, Canal Transit if applicable, Brokerages,Freight Tax, Insurance, Hold cleaning, Lashing, Misc

Calculate Income and net results

Voyage Estimation Sheet attached for reference in excel