fen sum int proj
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³EXPORT AND IMPORT DOCUMENTATION AND
PROCEDURE´
SUMMER TRAINING REPORT
Roll No:- 361
Batch:- 2009-2011(IV)
In partial fulfillment of the r equir ements f or Master Of Management Studies (MMS) two Year
Full Time Degr ee Course.
R ajiv Gandhi Institute of Technology,
De pt. of Management Studies
(Affiliated to University of Mumbai)
Year 2010
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DECLARATION
I declar e that this r e port entitled µExport and Import Documentation and Procedure ¶ is my
original work and not co pied fr om elsewher e nor su bmitted s bef or e f or any degr ee, diploma or
course to any Institute or University and due acknowledgement has been given in the
bi bliography to all sources be they printed, electr onic or personal.
Name of the Student: - FENALI BHAGAT
Roll No :- 361
Signatur e :-
Date:-
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ACKNOWLEDGEMENT
I EXPRESS MY SINCERE THANKS TO DR.UDHAV BHOSALE, PRINCIPAL OF
RAJIV GANDHI INSTITUTE OF TECHNOLOGY AND MANAGEMENT FOR HIS
VALUABLE SUGGESTIONS AND TO PREPARE THIS PROJECT.
HERE, I WOULD LIKE TO TAKE THIS OPPORTUNITY TO THANK THOSE
PEOPLE WITHOUT THE HELP OF WHOM IT WOULD NOT HAVE BEEN
POSSIBLE TO COMPLETE THIS PROJECT SUCCESSFULLY.
I WOULD LIKE TO EXPRESS MY SINCERE THANKS TO MR. SUNIL LULLA FOR
GIVING ME AN OPPORTUNITY TO WORK IN EROS INTERNATIONAL MEDIA
LIMITED.
I WOULD ALSO LIKE TO THANK MR. FAROOQ GANDHI AND MR. ANAND
SHANKAR AND MRS. SUNDARI RAMAMURTHY FOR PROVIDING ME WITH THE
CURRENT INFORMATION REGARDING THE TOPIC ³EXPORT AND IMPORT
DOCUMENTATION AND PROCEDURE´, AND IN EXPLAINING THE CONCEPTS
AND CLEARING ALL THE DOUBTS REGARDING THE PROJECT.
FINALLY IT IS MY FOREMOST DUTY TO THANK ALL OUR RESPONDENTS WHO
HELPED ME TO COMPLETE THE PROJECT IN SOME OR THE WAY WITHOUT
WHICH THE PROJECT MIGHT NOT HAVE BEEN SUCCESSFUL.
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CONTENTS
Particulars Page No
1.) Introduction
a) Im portance / Significance of the to pic studied
b) O b jectives / Sco pe of the study
2.) Review of Literature
Conce ptual / Theor etical backgr ound of the to pic
3.) A bout the organisation
4.) Findings and Analysis
5.) Conclusion
6.) Bibliography
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ER OS INTER NATIONAL LTD.
CHAPTER 1:- INTR ODUCTION
IMPOR TANCE / SIDNIFICANCE OF SUBJECT STUDIED.
INTRODUCTION ON EXPORTS & IMPORTS
Definition :-
As per Sec 2(e) of the Indian For eign Trade Act(1992), the ter m µEXPOR T¶ may be defined as,
³an act of taking out of India any goods by land , sea or air with pr o per transaction of money.´
³EXPOR TER ́ , means a person who ex ports or intends to ex port and holds an Im porter -
Ex porter Code number (IEC) unless otherwise specifically exem pted.
³Manufactur er Ex porter´, means a person who ex port goods manufactur ed by him or intends to ex port such goods.
³Merchant Ex porter´, means a person engaged in trading activity and ex porting or intending to
ex port goods.
³IMPOR TER ́ means a person who im ports or intends to im port and holds an Im porter -Ex porter
Code Number .
Since 4th
July, 1991 the government of India has made major changes in the Trade policy. The
First five year For eign Trade Policy,2009-14 r einf orces the dir ections set by these Trade Policy
Ref or ms.
The fundamental f eatur e of the policy is freedom. It su bstantially eliminates licensing,
quantitative r estrictions and other r egulatory and discr etionary contr ols both f or im ports and
ex ports.
All goods may be ex ported fr eely without any r estriction exce pt in cases wher e they ar e
r egulated by the pr ovisions of the modified For eign Trade Policy 2009-14.
The item- wise Ex port and Im port Policy shall be , as specified in the book titled ³ITC (HS)
Classifications of Ex port and Im port Items´ pu blished and notified by the Dir ector General of For eign Trade as amended fr om time to time.
Any goods, ex port or im port of which is r estricted under ITC (HS) may be ex ported or im ported
only in accordance with an Authorization or in ter ms of a pu blic notice issued in this r egard.
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WHY NEED TO EXPORT?
Ther e ar e many good r easons f or ex porting:-
The first and the primary r eason f or ex port is to earn f or eign exchange. The f or eign
exchange not only brings pr ofit f or the ex porter but also im pr oves the economiccondition of the country The com panies that ex port their goods ar e believed to be mor e r elia ble than their
counterpart domestic com panies assuming that ex porting com pany has survive the test
in meeting international standards.
Fr ee exchange of ideas and cultural knowledge o pens up immense business and trade
o pportunities f or a com pany.
As one starts visiting customers to sell one¶s goods, he has an o pportunity to startex ploring f or newer customers, state-of -the-art machines and vendors in f or eign lands.
By ex porting goods, an ex porter also becomes saf e fr om offset lack of demand f or
seasonal pr oducts.
In the age of globalization and li beralizations, Ex port has become most lucrative
business in India.
Also if the pr oduct is successful in domestic mark et then it would be successful in
international mark et&
A unique pr oduct may have little com petition and the demand f or it may be high.
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OBJECTIVES OF EXPORT
The ob jectives of ex port ar e as f ollows:-
Conduct r esearch on f or eign mark et.
Overseas design and pr oduct must be studied pr o per ly and consider ed car efully.
Specific laws dealing with international trade and f or eign business must be studied.
Price is an im portant factor .
Identify what you want to achieve fr om ex porting.
List activities you need to undertak e to achieve these ob jectives.
It includes mechanisms f or r eviewing and measuring pr ogr ess.
Hel ps you r emain f ocused on your goals.
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SWOT ANALYSIS OF EXPOR TS
SWOT analysis is a useful method of summaries all the inf or mation generated during the ex port
planning. SWOT stands f or str engths, weakness, o pportunities and thr eats, which hel ps to isolate
the str ong and weak ar eas within an ex port strategy. SWOT also indicates the futur e
o pportunities or thr eats that may exist in the chosen mark ets and is instrumental in strategyf or mulation and selection.
Str engths
Business str engths ar e its r esources and capa bilities that can be used as a basis f or develo ping acom petitive-advantage. Exam ples of such str engths include:
y Patentsy Str ong brand names.
y Good r e putation among customers. y Cost advantages fr om pr o prietary know-how. y Exclusive access to high grade natural r esources. y Favora ble access to distri bution networks.
Weaknesses
The a bsence of certain str engths may be viewed as a weakness. For exam ple, each of the f ollowing may be consider ed weaknesses:
y Lack of patent pr otection. y A weak brand name. y Poor r e putation among customers.
y High cost structur e. y Lack of access to the best natural r esources.
y Lack of access to k ey distri bution channels.
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Opportunities
The external envir onmental analysis may r eveal certain new o pportunities f or pr ofit and gr owth.
Some exam ples of such o pportunities include:
y An unfulfilled customer need. y Arrival of new technologies.
y Loosening of r egulations. y Removal of international trade barriers.
Threats
Changes in the external envir onmental also may pr esent thr eats to the fir m. Some exam ples of such thr eats include:
y Shifts in consumer tastes away fr om the fir m's pr oducts
y Emergence of su bstitute pr oducts. y New r egulations.
y Incr eased trade barriers
A SWOT analysis can be very su b jective, and is an excellent tool f or indicating the negative
factors first in order to turn them into positive factors.
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2. REVIEW OF LITERATURE
Conceptual and theoretical background of the subject studied
EXPORT DOCUMENTS & PROCEDURE
EXPORT LICENCE
Application f or ex port license:-
An ex porter must classify the item by identifying what is called as ITC (HS) classifications.
Ex port license is only issued f or the goods mentioned in the schedule 2 of ITC (HS)classifications of Ex port and Im port items. Application to the Dir ector General of For eign Trade
(DGFT) is to be given.
EXPORT ORDERING
An order is a commercial transaction which is not only im portant to the ex porter and im porter,
but it is also of concern to their r espective countries, since it aff ects the balance of payment
position of both the countries.
The ex porter is r equir ed to pr oduce co pies of ex port order to various Government de partments/
Financial institutions e.g. obtaining ex port licenses when the pr oduct is cover ed under the
r estricted items or canalized items f or ex ports, availing post- shipment finance and other
incentives and dealings with inspection authorities, insurance underwriters, customs offices and
exchange contr ol authorities etc. f or various purposes.
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EXPORT PROCESS
The ex port pr ocess has thr ee stages: f easi bility analysis; planning f or eign mark et entry; andIm plementation. The ste ps in these stages ar e outlined below:-
Feasibility analysisy Analyze domestic perf or mance.
y Assess the fir m¶s capacities.
y Consider the demographics, social, political, and economic factors of target mark ets.
y Conf er with international trade ex perts (e.g. in the fields of mark eting, finance, legal,
y and logistics).
y Select target mark ets
Planning foreign market entry planning
y Conduct mark et r esearch into the industry sector .
y Evaluate mark et r esearch.
y Decide how the pr oduct will be mark eted. y Com ply with target country licensing, standards and certification r equir ements.
y Apply f or the necessary patent, trademark, and co pyright pr otection.
y Identify taxes, tariffs, duties, quotas, or other non-tariff trade barriers.
y Esta blish pricing schedule.
y Seek financing.
Implementation
y Deter mine methods of distri bution.
y Im plement mark eting plan.
y Choose sales r e pr esentatives, or sales methods.
y Negotiate sales contract.
y Pr oduce finished pr oduct.
y O btain insurance cover .
y Com plete the r equir ed paperwork .
y Package and la bel the pr oduct.
y Ship the pr oduct.
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EXPORT PROCESS
In India custom clearance is a com plex and time taking pr ocedur e that every ex porter face in hisex port business. Physical contr ol is still the basis of custom clearance in India wher e eachconsignment is manually examined in order to im pose various types of ex port duties. High
im port tariffs and multiplicity of exem ptions and ex port pr omotion schemes also contri bute incom plicating the documentation and pr ocedur es. So, a pr o per knowledge of the custom rules and
r egulation becomes im portant f or the ex porter . For clearance of ex port goods, the ex porter or ex port agent has to undertak e the f ollowing pr ocess:-
Registration Any ex porter who wants to ex port his goods need to obtain PAN based Business Identification Number (BIN) fr om the Dir ectorate General of For eign Trade prior to filing of shipping bill f or
clearance of ex port goods. The ex porters must also r egister themselves to the authorized f or eignexchange dealer code and o pen a curr ent account in the designated bank f or cr edit of any
draw back incentive.
Registration in the case of ex port under ex port pr omotion schemes: All the ex porters intending to ex port under the ex port pr omotion scheme need to get their
licenses / DEEC book etc.
Processing of Shipping Bill - Non-EDI (Electr onic Data Interchange):-
In case of Non-EDI, the shipping bills or bills of ex port ar e r equir ed to be filled in the f or mat as pr escri bed in the Shipping Bill and Bill of Ex port (For m) r egulations, 1991. An ex porter need to
apply diff er ent f or ms of shipping bill/ bill of ex port f or ex port of duty fr ee goods, ex port of dutia ble goods and ex port under draw back etc.
Pr ocessing of Shipping Bill - EDI: Under EDI System, declarations in pr escri bed f or mat ar e to be filed thr ough the Service Centersof Customs. A check list is generated f or verification of data by the ex porter/CHA. After
verification, the data is su bmitted to the System by the Service Center o perator and the System generates a Shipping Bill Number, which is endorsed on the printed check list and r eturned to the
ex porter/CHA. For ex port items which ar e su b ject to ex port cess, the TR-6 challans f or cess is printed and given by the Service Center to the ex porter/CHA immediately after su bmission of
shipping bill. The cess can be paid on the str ength of the challan at the designated bank . No co pyof shipping bill is made availa ble to ex porter/CHA at this stage.
Quota Allocation
The quota allocation la bel is r equir ed to be pasted on the ex port invoice. The allocation number of AEPC (Appar el Ex port Pr omotion Council) is to be enter ed in the system at the time of shipping bill entry. The quota certification of ex port invoice needs to be su bmitted to Customs
along-with other original documents at the time of examination of the ex port cargo. For deter mining the validity date of the quota, the r elevant date needs to be the date on which the full
consignment is pr esented to the Customs f or examination and duly r ecorded in the Com puter System.
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Arrival of Goods at Docks: On the basis of examination and inspection goods ar e allowed enter into the Dock . At this stage
the port authorities check the quantity of the goods with the documents.
System Appraisal of Shipping Bills:
In most of the cases, a Shipping Bill is pr ocessed by the system on the basis of declarations made by the ex porters without any human intervention. Sometimes the Shipping Bill is also pr ocessedon scr een by the Customs Officer .
Customs Examination of Export Cargo: Customs Officer may verify the quantity of the goods actually r eceived and enter into the system and ther eafter mark the Electr onic Shipping Bill and also hand over all original documents to the
Dock Appraiser of the Dock who many assign a Customs Officer f or the examination andintimate the officers¶ name and the packages to be examined, if any, on the check list and r eturn
it to the ex porter or his agent. The Customs Officer may inspect/examine the shipment along with the Dock Appraiser . The
Customs Officer enters the examination r e port in the system. He then marks the Electr onic Bill along with all original documents and check list to the Dock Appraiser . If the Dock Appraiser is
satisfied that the particulars enter ed in the system conf or m to the description given in the original documents and as seen in the physical examination, he may pr oceed to allow "let ex port" f or the
shipment and inf or m the ex porter or his agent.
Stuffing / Loading of Goods in Containers Ex porter or ex port agent will hand over the ex porter¶s co py of the shipping bill signed by the
Appraiser ³Let Ex port" to the steamer agent. The agent then appr oaches the pr o per officer f or
allowing the shipment. The Customs Pr eventive Officer supervising the loading of container andgeneral cargo in to the vessel may give "Shipped on Board" appr oval on the ex porter¶s co py of
the shipping bill.
Drawl of Samples:Wher e the Appraiser Dock (ex port) orders f or sam ples to be drawn and tested, the Customs
Officer may pr oceed to draw two sam ples fr om the consignment and enter the particulars ther eof along with details of the testing agency in the ICES/E system. Ther e is no se parate r egister f or
r ecording dates of sam ples drawn. Thr ee co pies of the test memo ar e pr e par ed by the CustomsOfficer and ar e signed by the Customs Officer and Appraising Officer on behalf of Customs and
the ex porter or his agent. The disposal of the thr ee co pies of the test memo is as f ollows:-
y Original ± to be sent along with the sam ple to the test agency. y Duplicate ± Customs co py to be r etained with the 2
ndsam ple.
y Triplicate ± Ex porter¶s co py.
The Assistant Commissioner/De puty Commissioner if he considers necessary, may also order f or
sam ple to be drawn f or purpose other than testing such as visual inspection and verification of description, mark et value inquiry, etc.
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Amendments: Any corr ection/amendments in the check list generated after filing of declaration can be made at
the service center, if the documents have not yet been su bmitted in the system and the shipping bill number has not been generated. In situations, wher e corr ections ar e r equir ed to be made after
the generation of the shipping bill number or after the goods have been br ought into the Ex port
Dock, amendments is carried out in the f ollowing manners.
1. The goods have not yet been allowed "let ex port" amendments may be per mitted by the
Assistant Commissioner (Ex ports). 2. Wher e the "Let Ex port" order has alr eady been given, amendments may be per mitted
only by the Additional/Joint Commissioner, Custom House, in charge of ex port section.
In both the cases, after the per mission f or amendments has been granted, the AssistantCommissioner / De puty Commissioner (Ex port) may appr ove the amendments on the system on
behalf of the Additional /Joint Commissioner . Wher e the print out of the Shipping Bill hasalr eady been generated, the ex porter may first surr ender all co pies of the shipping bill to the
Dock Appraiser f or cancellation bef or e amendment is appr oved on the system.
Export of Goods under Claim for Drawback: After actual ex port of the goods, the Draw back claim is pr ocessed thr ough EDI system by the officers of Draw back Branch on first come first served basis without f eeling any se parate f or m.
Generation of Shipping Bills:
The Shipping Bill is generated by the system in two co pies- one as Custom co py and one asex porter co py. Both the co pies ar e then signed by the Custom officer and the Custom House
Agent.
SHIPMENT OF GOODS
The ex port consignment can be send either by sea, post or air . The ex porter should first
scrutinize and check the contents of the contract and the LC ter ms, particular ly whether any part
shipment, transshipment etc. is allowed. He should also f ollow the delivery schedule and the
instructions given by the buyer a bout the marking, la beling & packing etc.
Exports by Sea
Ex ports by sea is the most traditional f or ms of ex porting goods to overseas mark ets.
Sea and Air fr eight
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In r ecent years the use of air fr eight has come into pr ominence and the air com panies¶ claim
quite high in certain circumstances,that while air fr eight cost mor e than sea fr eight, the
advantages of the air fr eight in r educing the period of storage and transit mak e up f or the
diff er ence in cost. However, sea fr eight is still most po pular f or m of transporting goods to
overseas customers, chief ly because of the high volume that can be carried and the r elatively low
fr eight costs. When time is not of primary im portance , sea fr eight is the nor mal method of
transportation to overseas countries.
Freight costs
High fr eight charges will r esult in high prices being charged f or consumer pr oducts. Thus it is in
the inter est of the ex porter to k ee p sea and air fr eight as low as possi ble. The ex porter can avail
the facility of Ocean Fr eight Rebate Discount off er ed by conf er ence lines.
Exports by Post
When goods ar e r equir ed to be send a br oad by parcel post, the ex porter can book the goods fr om
any post office in India su b ject to pr ovision of Im ports and Ex port Trade Regulations and
Exchange Contr ol Regulations.
Exports by Air
Certain type of goods which ar e perisha ble/seasona ble or high in cost but low in bulk can be
ex ported by Air . Shipping by Air has many advantages lik e:-
1) Lesser packing charges ar e involved as ther e would be less handling of goods in transit. 2) Ther e is lik ely to be less risk of pilf erage, damage, &
3) It ensur es faster delivery of goods which in turn leads to quick er payments r esulting into
lower stock and quick er turnover .
For sending the cargo by air, the ex porters ar e r equir ed to get the shipping documents scrutinized
and assessed by the customs authorities at the first instance and then pr esent the cargo along with
these documents to customs office in the city. The pr oof of ex portation is known as µAir Way
Bill¶ issued by the Air Line.
Reservation of Space
The ex porter should contact the Shipping Com pany or its agent, well in advance f or the space
r equir ed f or the consignments, on a particular steamer . The ex porter should give all the
particulars of the consignments lik e type of cargo, gr oss and net weight of packages and total
packages, dimensions of each packages, port of loading and destination and the appr oximate date
of shipment and the name of the steamer . The ex porter can get the necessary inf or mation a bout
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arriving and sailing of the ships fr om their shipping agents. When the r equest of an ex porter f or
the r eservation of space is acce pted, the shipping com pany or its agent will issue ³shipping
order´ containing the instructions r egarding loading and shipment of the consignment and a co py
of which is send to the commanding officer of that particular vessel.
EXPORT DOCUMENTS
.
Export order
The ex porter is r equir ed to pr oduce co pies of ex port order to various government de partments /
Financial institutions e.g. obtaining ex port licenses when the pr oduct is cover ed under the
r estricted items or canalized items f or ex ports, availing post- shipment finance and other
incentives and dealing with inspection authorities, insurance underwriters, customs offices andexchange contr ol authorities etc. f or various purposes.
Order Acceptance
The Order Acce ptance is another im portant commercial document pr e par ed by the ex porter
confir ming the acce ptance of order placed by the im porter . The order acce ptance nor mally
covers the name and the addr ess of the consignee, port of shipment, country of final destination,
the description of goods, quantity, price each and total amount of order, ter ms of delivery, details
of fr eight and insurance, mode of transport, packing and marking details, ter ms of payment etc.
Letter of Credit
Letter of cr edit is a document issued by the im porters bank in the favour of the ex porter giving
him the authority to draw bills up to a particular amount(as per the contract price) covering a
specified shipment of goods and assuring him of payment against the delivery of shipping
documents. The o perations of Letter of cr edit have been r egulated and ar e governed by the
Articles of ³Unif or m Customs and Practice f or Documentary Cr edits´ i.e. UCP500 and/or UCP
2002 (Supplement to UCP 500 f or Electr onic Pr esentation) of International Chamber of
Commerce, Paris.
The ex porter should car efully scrutinize the contents, ter ms and conditions of the L/C and pr e par e and su bmit all the documents called f or by the buyer to get immediate payment of his
bill drawn on the buyer fr om the negotiating bank .
Mate¶s Receipt
Mate¶s Receipt is issued by the Chief of Vessel after the cargo is loaded, and it contains the
name of the shipping line, vessel, port of loading, port of discharge, place of delivery, marks and
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numbers, number and kind of containers, description of goods, container status, gr oss weight,
condition of cargo at the time of its r eceipt on board the vessel and the shipping bill number and
date. The mates r eceipt is of transf era ble natur e and must be pr esented immediately at the
shipping com pany¶s office to be exchanged into Bill of Lading.
Transport Documents
The f ollowing documents ar e used in ex port business as transport documents.
y Ocean Fr eight: various types of Bill of Lading
y Air Fr eight : Airway Bill/ Air consignment note
y R ail/Road : R ailway Receipt / consignment note
y Post : Post Parcel Receipt
y Courier : Courier Receipt/ Way Bill
Bill of Lading
The Bill of Lading is a document issued by the shipping com pany or its agent acknowledging the
r eceipt of goods mentioned in the bill f or shipment on board the vessel undertaking to deliver the
goods in the lik e order and condition as r eceived, to the consignee or his order of assignee,
pr ovided the fr eight and other charges specified in the Bill of Lading have been duly paid. The
ex porter or his shipping agent has to fill up this f or m with r elevant details such as the name of
the consignor, date and place of shipment, name and destination of the vessel, the description,
quantity and destination of goods, marks and numbers, invoice number, GR number, gr oss and
net weight, number of packages and amount of fr eight etc. Bills of Lading is usually made out in
sets of f our .
Airway Bill/ Air Consignment Note
Airway Bill or Air Consignment Note is the r eceipt issued by the air line com pany f or the
carriage of goods under certain ter ms and conditions. Airway Bill is generally issued in thr ee
co pies. One co py each f or the carrier, consignee and the consigner .
Post Parcel Receipt
Post parcel r eceipt evidences the r eceipt of goods f or ex ports by the post office. If the post parcel
is sent dir ectly in the name of the buyer, the buyer can tak e immediate possession of the goods
sent by the ex porter .
Bill of Exchange
Bill of Exchange is also known as µdraft¶. A bill of exchange is an instrument in writing
containing an unconditional order, signed by the mak er, dir ecting a certain person to pay a fr om
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certain sum of money only to or to the order of a person or to the bear er of the instrument. A bill
of exchange contains an order fr om the cr editor to the debtor to pay a specified amount to a
person mentioned ther ein. The mak er of a bill is called µDrawer¶, the person who is dir ected to
pay is called the µDrawee¶. The person who is entitled to r eceive the money is called the µPayee¶.
When the ex porter ex pects the im porter to mak e immediate payment upon the pr esentation of the draft, that draft is called a µSight draft¶ or µDraft drawn at first sight¶ or µOn demand¶ or µOn
pr esentation¶. When the draft is drawn f or payment at a date later than pr esentation, it is called a
µUsance Draft¶ or µUsance Bill¶ or µDemand Draft¶.
The Bill of Exchange or Draft is drawn in a set of two. Each one bears a r ef er ence to the other .
When any of the drafts is paid ,- if it is a sight draft and acce pted ± when it is a usance draft by
the drawee, the second draft becomes null and void.
Insurance Policy/ Certificate
In the International trade, when the goods ar e in transit they ar e ex posed to marine perils. Marine
Insurance is intended to pr otect the insur ed against the risk of loss or damage to goods in transit
due to marine perils. Marine Insurance Policy is a contract wher eby the Insur er in considerstion
of payment of a pr emium by the insur ed agr ees to indemnify the latter against loss incurr ed by
him in r espect to goods ex posed to µperils of the sea¶. Marine Insurance Certificate is a document
which gives details of the shipment insur ed.
As soon as the goods ar e r eady f or shipment, the ex porter has to buy an Insurance Policy unless
otherwise advised by the im porter . The ex porter should buy the policy f or the CIF value plus
10% to cover other ex penses which the im porter might have to incur in anticipation of saf e
arrival of goods.
Certificate of Origin
The ex porter should obtain a certificate of origin fr om an r ecognized Chamber of Commerce,
Ex port Pr omotion Council or Government De partment.
Manufacturer¶s Certificate
It is r equir ed in addition to the Certificate of Origin f or f ew countries to show that the goods
shipped have actually been manufactur ed and is availa ble.
Packing list/ Note
It shows the details of goods contained in each parcel / shipment.
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Export Declaration Forms
As per the Exchange Contr ol Regulations , ex porters ar e r equir ed to su bmit declaration in the
f ollowing pr escri bed f or ms to the pr escri bed authority bef or e any ex port of goods fr om India ismade.
GR Form ± For ex ports to all countries made otherwise than post.
PP Form ± For ex ports to all countries by parcel post, exce pt when made on µvalue paya ble¶ or
µcash on delivery¶ basis.
Form SDF - To be used f or declaring ex ports in the case of specified customs offices and
Specified categories of shipping bills under EDI system.
Form SOFTEX- To be used gor declaring softwar e ex ports thr ough data communication links
And r eceipt of r oyalty on the softwar e packages/pr oducts ex ported.
Certificate of Inspection
Certificate of Inspection is Issued by the Inspection Agency concerned, certifying that the consignment has been inspected as r equir ed under the Ex port, Quality Contr ol & Inspection Act,
1963.
Antiquity Measurement
It is issued by Archaeological Survey of India in case of antiques.
Certificate of Measurement
Fr eight can be charged either on the basis of weight or measur ement. When it is charged onweight basis, the weight declar ed by the ex porter is acce pted. A certificate of measur ement fr om
the Indian Chamber of Commerce may be obtained by the ex porter and given to the shippingcom pany f or calculation of necessary fr eight.
Transshipment Bill
It is used f or goods im ported into a customs port/airport intended f or transshipment.
Transshipment Permit
It is the per mission f or transshipment of goods fr om the vessel on which the same ar e book edoriginally to another f or ex port.
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Shipping Order
It is issued by the Shipping (Conf er ence) Line which intimates the ex porter a bout the r eservation of space of shipment of cargo thr ough the specific vessel fr om a specified port and on
a specified date.
Cart/ Lorry Ticket
It is pr e par ed f or admittance of the cargo thr ough the port gate and includes the shipper 's name,
cart/ lorry No., marks on packages, quantity, etc.
Dock Challan /Export Application
Ex port Application is r equir ed at Cochin, Mumbai and Chennai port f or payment of port charges
and instead of Ex port Application, Dock Challan is used at K olkata port.
Export Cargo Ticket
It is used only at Cochin port which gives details lik e name of the vessel, ex port application
number, Transit shed number, shipper¶s name, shipping bill number and dateand the descriptionof cargo.
Shippers Declaration Form
The ex porter has to su bmit this declaration to the Customs Authorities r egarding the value, sort,
specifications, quantity and description of goods being ex ported.
Commercial Invoice
It is issued by the ex porter f or the full r ealisa ble amount of goods as per trade ter m. It is a prima
facie evidence of the contract of sale and purchase.
Consular Invoice
It is mainly needed f or the countries lik e K enya, Uganda, Tanzania, Mauritius, New Zealand,Bur ma, Iraq, Ausatralia, Fiji, Cyprus, Nigeria, Ghana, Zanzi bar etc. It is pr e par ed in the pr escri bed f or mat and is signed/ certified by the counsel of the im porting country located in the
country of ex port. This is the most im portant document which needs to be su bmitted f or certification to the Embassy of the country concerned.
Customs Invoice
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It is mainly needed f or the countries lik e USA, Canada, etc. It is pr e par ed on a special f or m being pr esented by the Customs authorities of the im porting country. It facilitates entry of goods
in the im porting country at pr ef er ential tariff rate.
Legalised Invoice
This shows the seller 's genuineness bef or e the appr o priate consulate or chamber or commerce/embassy.
Certified Invoice
It is r equir ed when the ex porter needs to certify on the invoice that the goods ar e of a particular origin or manufactur ed/ pack ed at a particular place and in accordance with specific contract.
Sight Draft and Usance Draft ar e availa ble f or this. Sight Draft is r equir ed when the ex porter ex pects immediate payment and Usance Draft is r equir ed f or cr edit delivery.
Shut Out Advice
It is a statement of packages which ar e shut out by a ship and is pr e par ed by the concerned shedand is sent to the ex porter .
Short Shipment Form
It is an application to the customs authorities at port which advises short shipment of goods and
r equir ed f or claiming the r eturn.
Shipping Advise
A shipping advise is used to inf or m the overseas customer a bout the shipment of goods. Ther e is
no particular f or m of shipping advise.
Shipping Bill
It is an im portant document r equir ed by the Customs Authorities f or allowing shipment. The
shipping bills ar e of f ollowing types:-
y Duty-free shipping bill:-
This type of shipping bill is printed on white paper and used f or the goods f or whichneither duty nor cess is applica ble.
y Dutiable shipping bill:-
It is used f or goods su b ject to ex port duty/cess which is either entitled or not entitled f or draw back .
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y Drawback Shipping Bill:-
If the ex port of goods is simultaneously by duty fr ee and/or su b ject to ex port
duty/cess, this type of shipping bill is com pulsorily to be used whether alone or alongwith any shipping bill. This type of shipping bill is printed on the Gr een
paper .
y Shipping Bill for Shipment Ex-bond:-
In case of goods r e-ex port and k e pt in bond, this type of shipping bill is used
which is pr onted on yellow paper .
Freight Declaration
It is to be attached to the ex port documents if the im porter agr ees to pay the fr eight.
Health Certificate
Health certificate is r equir ed f or ex ports of f ood pr oducts, seeds, animal meat pr oducts etc. thiscertificate is issued by the Health De partment of ex porting country.
Certificate of Value
Though the value is indicated in the Commercial Invoice.
Certificate of Exports and Realisation
After shipment, the ex porters should get their ex ports certified by an authorized dealer in f or eignexchange. While pr esenting the ex port documents to an authorized dealer, he should fill in and
give to the bank a declaration in the pr escri bed f or m known as µBank Certificate of Ex port andr ealisation¶. The ex porter will get this certificate fr om the negotiating bank only after the
r ealization of pr oceeds.
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Foreign Accounts & Currency Management
Ex porters ar e allowed to o pen f or eign curr ency accounts in India and a br oad. They can de posit
upto 50% & 70% in case of EOUs/EPZ units of their total f or eign exchange r eceipts in those
accounts. For this purpose two types of accounts ar e per mitted:-
1. For eign Curr ency Accounts ± FCA
2. Exchange Earners¶ For eign Curr ency Accounts ± EEFC
3. Escr ow accounts.
4. Other FC accounts.
Foreign Currency Accounts ± FCA
The Reserve Bank of India has granted general per mission to Indian r esidents to o pen, hold, and
maintain with an authorized dealer in India a For eign Curr ency Account, to be known as a
Resident For eign Curr ency R FC Account, out of f or eign exchange r eceived by the way of ±
1. Pension or any other superannuation or other monetary benefits fr om their em ployer
outside India; or
2. For eign exchange on conversion of any f or eign security or immova ble pr o perty situated
outside India or inherited fr om a person who was r esident outside India and r e patriated to
India; or
3. Received as acquir ed gift or inheritance fr om a person who was r esident outside India
and r e patriated to India; or
4. For eign exchange acquir ed or r eceived bef or e the 8th day of July, 1947 or any income
arising or accruing ther eon which is held outside India by any person in pursuance of a
general or special per mission granted by the Reserve Bank .
5. The pr oceeds of lif e insurance policy claims/ maturity/ surr ender values settled in f or eign
curr ency fr om an insurance com pany in India
Types of accounts
By an Individual ± a person may o pen in the f or m of curr ent or savings or ter m de posit account.
By others- Either Curr ent Account or Ter m De posit Account.
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Exchange Earners Foreign Currency Account ±EEFC
A person r esident in India may o pen with, an Authorised Dealer bank in India , an account in
f or eign curr ency called the EEFC Accounts.
The limits of eligi ble cr edits to the EEFC accounts ar e 100% f or
y Status Holder Ex porter .
y a r esident in India f or pr of essional services r ender ed in his personal capacity and
y 100% Ex port Oriented Units, units in Ex port Pr ocessing Zones(EPZs), Softwar e
Technology Parks(STPs), and Electr onic Hardwar e Technology Parks(EHTPS), and 50%
r esident in India.
This account shall be maintained only in the f or m of non ±inter est bearing curr ent account
and no cr edit facilities shall be per mitted against the security of balances held in EEFC
accounts by the Authorised Dealer Banks.
The eligi ble cr edits r e pr esent inward r emittances thr ough nor mal banking chain.
Payments r eceived in f or eign exchange by a unit in DTA f or supplying goods to a unit in
SEZs out of its f or eign curr ency accounts ar e to be tr eated as eligi ble f or eign exchange
earnings f or the purpose of cr edit to the EEFC account.
Authorized dealer banks will per mit their ex porter constituents to extend trade r elated loans /
advances to overseas im porters out of their EEFC balances without any ceiling su b ject to
com pliance of pr ovisions of Notification No. FEMA3/2000-R B dated 3rd
May,2000 as
amended fr om time to time.
Authorized dealer banks will per mit ex porters to r e pay packing cr edit advances whether
availed in rupee or in f or eign curr ency fr om balances in their EEFC account and/or rupee
r esources to the extent ex ports have actually tak en place. The balance in EEFC a/cs will be
exem pt fr om SLR & CRR r equir ements.
Escrow Accounts
Under a Counter trade pr o posal involving adjustment of value of goods im ported into India
against the value of ex ports fr om India in ter ms of an arrangement voluntarily enter ed into
between the Indian party and the overseas party, ther e is a need f or escr ow account to be o pened with a bank in India.
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Other FC Accounts-
Other For eign Curr ency Accounts which ar e per missi ble to be o pened in India ar e-
For eign Curr ency Accounts by air line /shipping cos.
For eign Curr ency Accounts of overseas cos. executing pr o jects in India
For eign Curr ency Accounts of overseas buyers.
TAX DRAWBACK ON EXPORTS OF GOODS
The Duty Draw back Scheme is administer ed by the Dir ectorate of Draw back in the Ministry of
Finance. Draw back admissi ble on ex ports is work ed out and dis bursed to the ex porters by the concerned Commissioners of Customs/Central Excise incharge of the Port/Airport/Land customs
Station or For eign Post office.
Definition
R ule 2 of the customs, central excise duties and service tax draw back rules,1995, as amended by
the Customs, Central Excise Duties and Service Tax Draw back R ules, 2006 defines:-
y ³drawback ́ in r elation to any goods manufactur ed in India and ex ported, means the
r ebate of duty or tax , as the case may be, chargea ble on any im ported materials or
excisa ble materials used or taxa ble services used as input services in the manufactur e of
such goods;
y µexcisable material¶ means any material pr oduced or manufactur ed in India su b ject to a
duty of excise under the Central Excise and Salt Act,1944
y µexport¶, with its grammatical variations and cognate ex pr essions, means taking out of
India to a place outside India or taking out fr om a place in Domestic Tariff Ar ea (DTA)
to a special economic zone and includes loading of pr ovisions or stor e or equipment f or
use on board a vessel or aircraft pr oceeding to a f or eign port.
y µimported material¶ means any material im ported into India and on which duty is
chargea ble under the Customs Act,1962y ³manufacture´ includes pr ocessing of or any other o peration carried out on goods and
the ter m manufactur e shall be construed accordingly.
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Drawback - where admissible
Su b ject to the pr ovisions of :-
y The Customs Act, 1962(52 of 1962) and the rules made ther eunder,
y The Central Excise and Salt Act,1944 (1 of 1944) and the rules made ther eunder,
y These rules, a draw back may be allowed on the ex port of goods at such amount, or at
such rates, as may be deter mined by the Central Government.
A draw back will be allowed on the ex port of goods of such amount or as such rates, as may be
deter mined by the Central Government.
Categories of Drawback
All Industry Rates-
Under R ule 3 of the draw back rules, the Central Government notifies fr om time to time rate or
amount of duty draw back in r espect of certain classes of goods. These ar e commonly known as
µAll Industry R ates¶. These rates ar e pu blished nor mally once in a year, f ollowing the changes in
the duties of Customs/Excise in the Finance Act. The All Industrial R ates ar e deter mined either
in specific ter ms or in ter ms of percentage of FOB value of the ex port pr oduct.
Items and Rates-
The items and draw back rates ar e announced in the month of June/July every year and amended
fr om time to time and notified in the Gazette of India- Part I- Section-I. All manufactur es /ex porters having r egular pr oduction of pr oduct f or which brand rate is being sought f or and who
ar e corporate bodies having a detailed accounting system su b ject to audit under the Com pany
Law ar e eligi ble f or this scheme.
Central Excise Duties Drawback Rules,1995-
Wher e the central government has notified ³All Industry R ate´ in r espect of an ex port pr oduct
listed in Annexur e to the Draw back R ules, any manufactur er or ex porter of such goods may
apply under R ule 6 of the Customs and Central Excise Duty Draw back R ules, 1971 to the central
government f or the deter mination of Brand R ates.
Special Brand Rate-
In r espect of any goods, the manufactur er or ex porter finds that the amount of draw back is less
than f our times of the duty paid on the materials or com ponents used in the pr oduction or
manufactur e of the said goods, mak e an application to the Central Government f or fixation of
appr o priate amount or rate of draw back .
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On r eceipt of application fr om such manufactur er/ex porter the Central Government will, after
making such inquiry as it deem fit , allow payment to draw back to such ex porter at such amount
or rate of draw back , which infact is less than f our -fifth of such amount or rate deter mined upon
application by the manufactur er or ex porter .
However no drawback claim will be allowed-
y If the said goods, exce pt tea chests used as packing material f or ex port of blended
tea, have been tak en into use after manufactur e;
y If the said goods ar e manufactur ed or pr oduced using im ported materials or
exicas ble materials in r espect of which duties have not been paid:
y On jute batching oil used in manufactur e of ex port goods, namely, jute( including
Bimlipatam jute or mesta fi br e) yarn, twist, twine, thr ead, cords and r o pes:
If the said goods being packing materials have been used in or in r elation to the ex port of :-
Jute yarn (including Bimlipatam jute or mesta fi br e) yarn, twist, twine, thr ead,
cords and r o pes in which jute yarn pr edominates in weight.
Jute fa brics (including Bimlipatam jute or mesta fi br e),in which jute pr edominates
in weight.
Jute manufactur ers not elsewher e specified (including Bimlipatam jute or mesta
fi br e),in which jute pr edominates in weight.
y On any of the goods falling within heading 1006 or 2523 of the first schedule to
the Custom Tariff Act,1975 (51 of 1975).
Manner and time for claiming drawback on goods exported other than by post-
For claiming draw back on goods ex ported, ther e is no specific f or m. Triplicate co py of the
Shipping Bill f or ex port of goods under a claim f or draw back shall be deemed to be a claim f or
draw back . Such claim f or draw back should be accom panied by f ollowing documents:-
1. Co py of ex port contract or letter of cr edit, as the case may be,
2. Co py of packing list,
3.
Co py if AR 4 f or m, wher e ever applica ble,4. Insurance certificate wher e ever necessary, and
5. Co py of communication r egarding rate of draw back wher e the draw back claim is
f or a rate deter mined by the Commisioner of Central Excise or the Commissioner
of Customs and Central Excise.
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Payment of Drawback
The Payment of Draw back is made by the Customs House/ Central Excise Collectorate having
jurisdiction over the port/land/airport customs stations thr ough which the ex ports ar e aff ected.
The payment of draw back will be made either by cheque or by cr edit in the ex porters accountmaintained with the Customs House.
Promotional Measures for Exports
Assistance to states for developing export infrastructure and allied activities (ASIDE)
ASIDE is f or mulated to involve the states in the ex port eff ort by pr oviding assistance to the state
governments f or develo pment of infrastructur es f or the develo pment and gr owth of ex ports. The
funds allocated under this scheme ar e utilized f or :-
1. Cr eation of new Ex port pr omotional industrial parks /zones,
2. Setting up of electr onics and other r elated infrastructur e,
3. Meeting of capital outlay in EPIPs/ EPZs/SEZs.and,
4. Develo pment of minor ports and jetties to serve ex port purpose.
Export promotion capital goods (EPCG) scheme
EPCG scheme covers manufactur er -ex porters with or without supporting manufactur es /
vendors, merchant ex porters tied to supporting manufactur ers and service pr oviders.
Zero duty EPCG scheme
Zer o duty EPCG scheme allows im port of capital goods f or pr e- pr oduction and post- pr oduction
at zer o custom duty, su b ject to an ex port obligation equivalent to 6 times the duty saved on
capital goods im ported under EPCG scheme to be fulfilled in 6 years r eck oned fr om
Authorization issue date.
Concessional 3% Duty EPCG Scheme
It allows im port of capital goods f or pr e- pr oduction & post- pr oduction at 3% customs duty,
su b ject to an ex port obligation equivalent to 8 times of duty saved on capital goods im ported
under EPCG scheme.
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Duty Entitlement Passbook Scheme (DEPB)
The ob jective of DEPB is to neutralize incidence of customs duty on im port content of ex port
pr oduct. Neutralization shall be pr ovided by the way of grant of duty cr edit against ex port
pr oduct. Cr edit shall be availa ble against such ex port pr oducts and at such rates as may be
specified by DGFT by the way of pu blic notice. Pr ohi bited items of ex ports mentioned in ITC(HS) Book shall not be entitled f or cr edit. DEPB holder shall have an o ption to pay additional
customs duty in cash as well. Additional customs duty / Excise duty and Special additional duty
paid in cash or thr ough debit under DEPB may also be adjusted as CENVAT Cr edit or Duty
Draw back as per DoR rules. In r espect of pr oducts wher e rate of cr edit entitlement comes to 10%
or mor e, amount of cr edit against each such pr oduct shall not exceed 50% of Pr esent Mark et
Value (PMV) of the ex port pr oduct.
Application for DEPB
An application grant of cr edit under DEP
B may be made to R A concerned in For m ANF 4Galongwith pr escri bed documents. Agency commission shall be allowed f or DEPB entitlement
upto 12.5% of FOB value only.
Duty Exemption and Remission Scheme
Duty exem ption scheme ena bles duty fr ee im port of inputs r equir ed f or ex port pr oduction. Duty
exem ption schemes consist of ±
1. Advance Authorisation and,
2. Duty Fr ee Im port Authorisation (DFIA)
This scheme ena bles post ± ex port r e plenishment / r emission of duty on inputs used in ex port
pr oduct. Duty r emission schemes consist of duty entitlement pass book scheme (DEPB) and duty
draw back scheme (DBK).
Goods ex ported under Advance Authorisation / DFIA/ DEPB may be r e ± im ported in same f or m
su b ject to DoR specified conditions.
Advance Authorisation
An Advance Authorisation is issued to allow duty fr ee im port of inputs, which ar e physically
incorporated in ex port pr oduct. In addition fuel, oil, energy, catalysts which ar e consumed/utilized to obtain ex port pr oduct may also be allowed. Advance authorization is issued f or inputs
and ex ports items given under SION. These can also be issued on the basis of Adhoc nor ms or
self declar ed nor ms. However, advance authorization f or im port of raw sugar, can be issued
either to a manufactur er ex porter or merchant ex porter tied to supporting manufactur ers. In case
wher e CENVAT Cr edit facility on inputs have been availed of the ex ported goods, even after the
com pletion of the ex port obligation, the goods im ported against advance authorization shall be
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utilized only in the manufactur e of dutia ble goods whether within the same factory or outside, f or
which the authorization holder shall pr oduce a certificate fr om either Jurisdictional Central
Excise Stupdt.or Charter ed Accountant, at the o ption of the ex porter, at the time of filling
application f or EODC to R A concerned. It necessitates ex ports with a minimum value addition
of 15%, exce pt f or items in Gems & Jewellery sector . Ex ports to SEZ Units/ supplies to
Develo pers/ Co- develo pers, irr espective of curr ency of r ealization, would also be cover ed.
Advance Authorisation shall be issued in accordance with Policy and pr ocedur e in f orce on
Authorisation issue date. Validity period of Advance Authorisation f or im port shall be as
pr escri bed in Hand book of Pr ocedur es, Vol. 1.
Duty Free Import Authorisation (DFIA)
DFIA is issued to allow duty fr ee im port of inputs, fuel, oil, energy sources, catalyst which ar e
r equir ed f or pr oduction of ex port pr oduction of ex port pr oduct.
Export Oriented Units (EOUs), Electronic Hardware Technology Parks (EHTPs), Software
Technology Parks (STPs) and Bio-Technology Parks (BTPs).
Units undertaking to ex port their pr oduction of goods and services, may set up under the EOU
Scheme, STP Scheme, EHTP Scheme, BTP Scheme f or manufactur e of goods including r e pair,
r e-making, r econditioning, r e-engineering, and r endering of services. Trading units ar e not
per mitted.
An EOU/EHTP/STP/BTP unit may ex port all kinds of goods and services exce pt that ar e
pr ohi bited in ITC (HS). State trading r egime shall not apply to EOU manufacturing units. Theymay not im port/ pr ocedur e fr om DTA without payment of duty certain specified goods f or
cr eating a central facility. Gems & Jewellery EOUs may source gold/silver/platinum thr ough
nominated agencies on outright/loan purchase basis, shall ex port within 90 days fr om r elease.
Pr ocur ement and ex port of spar es / com ponents upto 5% of FOB value of ex ports may be
allowed to same consignee of ex port article. Second hand capital goods, without any age limit,
may also be im ported duty fr ee. Units can sell upto 50% of pr oduction in DTA & can sell to
other EOU/BTP/EHTP/STP/SEZ.
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PROJECT EXPORTS & SERVICE EXPORTS
Contracts f or ex port of goods against the payment to be r eceived partly or fully beyond the
period statutorily pr escri bed f or r ealization of ex port pr oceeds ar e tr eated as def err ed payment
ex ports. Trunk ey pr o jects involve r endering of services lik e designing, civil construction and
er ection and commissioning of plant/factory along with supply of machinery, equipment andmaterials. Payment in r espect of goods supplied under both turnk ey and civil construction
contracts may be r eceived on µcash¶ basis.
Service contracts f or ex port of consultancy, technical and other services by Indian com panies /
fir ms, also supply of some associated mechanicals wher ewithals, consuma bles and spar es. Indian
ex porters of services have to nor mally undertak e overseas contracts on ³cash´ ter ms and do not
r equir e prior clearance of Reserve Bank . Individuals/ fir ms/ com panies executing service
contracts in com puter softwar e should however r e patriate to India income equivalent to atleast
30% of contract value and the balance 70% of contract value could be r etained f or meeting
contract r elated ex penses a br oad.
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Deemed Exports
³Deemed Ex ports´ r ef ers to those transactions in which goods supplied do not leave the country
and the payment f or such supplies is r eceived either in Indian rupees or in fr ee f or eign exchange.
Categories of Supply:-
y Supply of goods against Advance Authorisation/DFIA, EOUs or STPs or EHTPs
or BTPs and to EPCG Authorisation holders.
y Supply of goods to pr o jects financed by multilateralor bilateral agencies funds as
notified by De partment of Economic Affairs(DEA).
y Supply of capital goods, including in unassembled/disassembled condition as well
as plants, machines, accessories, tools, dies and such goods which ar e used f or
installation purposes.
y Supply of goods to power pr o jects and r efineries;
y Also to pr o jects funded by UN agencies; andy To nuclear power pr o jects thr ough com petitive bidding as o pposed to ICB.
Benefits of Deemed Exports:-
o Supply of goods against Advance Authorisation/ DFIA,
o Deemed Ex port Draw back,
o Exem ption fr om ter minal excise duty wher e supplies ar e made against ICB. In
other cases r efund will be given.
o Suppliers ar e entitled to Advance Authorisation /DFIA f or immediate supplies
o Supply of goods will be eligi ble f or r efund of Ter minal Excise Duty pr ovided
r ecipient of goods does not avail CENVAT Cr edit/r ebate on such goods.
o Sim ple inter est @6% p.a. will be paya ble on delay in r efund of duty draw back
and ter minal excise duty under deemed ex port scheme, if the case is not settled
within 30 days of r eceipt of com plete application.
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IMPORT PROCEDURE & DOCUMENTATION
With the globalisation of Indian economy and consequent upon comf orta ble balance of payment
position Government of India has li beralised the Im portPolicy and practically all Contr ols onim ports have been lifted. Im ports may be made fr eely exce pt to the extent they ar e r egulated by
the pr ovisions of Im port Policy or by any other law f or the time being in f orce.
Import Export Policy
The pr esent im port policy and pr ocedur es in r espect of various commodities/category of im porters, ar e, inter alia, contained in the f ollowing pu blications issued by the Ministry of
Commerce and r evised fr om time to time:
Im port ± Ex port Policy, 1997-2002 as modified upto 31.3.1999 Hand book of Im port- Ex portP
r ocedur es (Vol 1.), 1997-2002 as modified upto 31.3.2000
Hand book of Im port-Ex port Pr ocedur es(Vol.2) Duty Exem ption Scheme: Input- Output andValue Addition Nor ms,1997-2002. ITC (HS) Classification of Im port and Ex port Items.
Registration with Regional Licensing Authority:
Registration with Regional Licensing Authority is a pr e-r equisite f or im port of goods. The Customs will not allow clearance of goods unless:
The im porter has to obtain IE Code Number fr om Regional Licensing Authority. However, no
such r egistration is necessary f or persons im porting goods fr om/ to Ne pal pr ovided Value of asingle Consignment does not exceed R s. 25000/-
Obtaining IEC Code Number
An application f or grant of IEC Code Number should be made in the pr escri bed Perf or ma givenat Appendix 3.I. The application duly signed by the applicant should be supported by the
f ollowing documents:
Bank Receipt (in duplicate)/demand draft f or payment of the f ee of R s.1000/- Certificate fr om the Bank er of the applicant fir m as per Annexur e1 to the f or m. Two co pies of passport size
photographs of the applicant duly attested by the bank er of the applicant.
A co py of Per manent Account Number issued by Income Tax Authorities, if PAN has not been
allotted, a co py of the letter of legal authority may be furnished. If ther e is any non-r esident
inter est in the fir m and NR I investment is to be made with r e patria ble benefits, full particularsther eof along with a photoco py of R BI's appr oval. If ther e is NR I investment without r e patriation
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benefit, a sim ple declaration indicating whether it is held with the general/specific per mission of the R BI on the letter head of the fir m should be furnished. In case of specific appr oval, a co py
may also be furnished.
Declaration by the applicant that the pr o prietors/partners/dir ectors of the applicant
fir m/com pany, as the case may be, ar e not associated as pr o prietor/partners/dir ectors with anyother fir m/com pany the IEC No. is allotted with a condition that can be ex ported only with the prior appr oval of the R BI.
IMPORT DOCUMENTS
Import order
An im port order is a commercial transaction which is not only im portant to the im porter and the
ex porter, but is also of concern to their r espective countries, since it aff ects the balance of
payment position of both the countries. The im porter is r equir ed to pr oduce co pies of im port
order to various Government de partments / financial institutions.
Order acceptance
Order acce ptance is another im portant commercial document pr e par ed by the ex porter
conf or ming the order r eceived fr om the overseas im porter . The ex porter gives his confir mation
to the order placed by the im porter and commits the shipment of pr oducts cover ed at the agr eed
price during a specified time.
Letter of credit
At the r equest of the im porter his bank issues a letter of cr edit in the favour of the ex porter thr ough its corr espondents in the country of the ex porter giving him the authority to draw bills
upto a particular amount covering a specified shipment of goods and assuring him of payment
against the delivery of shipping documents.
Transport documents
The f ollowing documents ar e used in im port business as transport documents.
y Ocean Fr eight: various types of Bill of Lading
y Air Fr eight : Airway Bill/ Air consignment note
y R ail/Road : R ailway Receipt / consignment note
y Post : Post Parcel Receipt
y Courier : Courier Receipt/ Way Bill
Bill of Exchange
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Bill of Exchange is also known as µdraft¶. A bill of exchange is an instrument in writing
containing an unconditional order, signed by the mak er, dir ecting a certain person to pay a fr om
certain sum of money only to or to the order of a person or to the bear er of the instrument. A bill
of exchange contains an order fr om the cr editor to the debtor to pay a specified amount to a
person mentioned ther ein. The mak er of a bill is called µDrawer¶, the person who is dir ected to
pay is called the µDrawee¶. The person who is entitled to r eceive the money is called the
µPayee¶.
When the ex porter ex pects the im porter to mak e immediate payment upon the pr esentation of the
draft, that draft is called a µSight draft¶ or µDraft drawn at first sight¶ or µOn demand¶ or µOn
presentation¶. When the draft is drawn f or payment at a date later than pr esentation, it is called a
µUsance Draft¶ or µUsance Bill¶ or µDemand Draft¶.
The Bill of Exchange or Draft is drawn in a set of two. Each one bears a r ef er ence to the other .
When any of the drafts is paid ,- if it is a sight draft and acce pted ± when it is a usance draft by
the drawee, the second draft becomes null and void.
Insurance Policy/ Certificate
In the International trade, when the goods ar e in transit they ar e ex posed to marine perils. Marine
Insurance is intended to pr otect the insur ed against the risk of loss or damage to goods in transit
due to marine perils. Marine Insurance Policy is a contract wher eby the Insur er in consideration
of payment of a pr emium by the insur ed agr ees to indemnify the latter against loss incurr ed by
him in r espect to goods ex posed to µperils of the sea¶.
Marine Insurance Certificate is a document which gives details of the shipment insur ed.
Certificate of Origin
Many countries r equir e a certificate fr om the overseas supplier the origin of goods and certified
by the Chamber of Commerce or any other r ecognized authority in the ex porters country.
Packing list / Note
It includes the date of packing, connecting invoice number, order number, details of shipping.
Certificate of Inspection
It is issued by the Inspection authorities in the ex porters country certifying that the goods have
been inspected under the r ecognized quality contr ol standards, and satisfies the condition r elating
to quality contr ol and inspection as applica ble.
Certificate of Measurement
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Fr eight can be charged either on the basis weight or measur ement. When it is charged on weight
basis, the weight declar ed by the overseas buyer is acce pted. This certificate contains the name
of the vessel, the port of destination, description of goods, quantity, length, br eadth, de pth etc of
the packages.
Commercial Invoice
An invoice is a document drawn by the ex porter on his overseas im porter which contains
detailed description of the goods consigned, the consigners name, the consignees name, the name
of the steamer, the number and date of bill of lading etc. It is a prima facie evidence of the
contract of sale and purchase.
Freight Declaration
It is r equir ed to be obtained fr om the overseas supplier, in both the cases, when the im porter
agr ees to pay the fr eight or the overseas supplier pays the fr eight.
Bill of Entry
The bill of entry is a document pr e par ed by the im porter or his clearing agent in the pr escri bed
f or m under the Bill of entry r egulations, 1971
Bill of entry f or goods im ported f or home consum ption (white colour ed) ± this kind of Bill of
Entry is used when im ported goods ar e clear ed fr om port on custom duty
Bill of entry f or war ehouse (yellow colour ed) - this kind of bill of entry is used wher e the duty is
not paid but the im ported goods ar e transf err ed to customs r ecognized bonded war ehouses.
Bill of entry f or ex-bond clearance f or home consum ption (gr een colour ed) ± this kind of bill of
entry is used wher e the im porter intends to clear the dutia ble goods fr om a bonded war ehouse.
Interest on Import Bills
The R BI has per mitted authorized dealers to mak e r emittances on account of inter est accur ed on
the usance bills under nor mal inter est rate paid on sight bills f or a specific period not extending
six months fr om date of shipment in r espect of im ports under µcash¶ licenses, without prior
appr oval of Reserve Bank .
Import Follow-Up
To ensur e that f or eign exchange r eleased f or im port of goods is pr o per ly utilized, the authorized
dealers will verify µdocumentary evidence of im port¶in the f or m of either postal wrappers or
customs bill of entry.
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One of the co pies of bill of entry is called the Exchange contr ol co py and will be designated as
such by means of a notation on the to p of the f or m. This co py has to be su bmitted to the
authorized dealers by the im porter within 90 days fr om the date of r emittance.
Customs Clearance Procedure for Imported Goods
Customs Administration
Under the Ministry of Finance, ther e ar e two inde pendent Boards of Revenue i.e Central board of
dir ect taxes and central board of excise and customs. The two main wings of the custom house
ar e µappraising¶ f or collection of r evenue and pr evention f or pr evention of smuggling.
Import Manifest
In ter ms of sec 30 of the customs act 1962 the person in charge of a conveyance carring im ported
goods should handover within 24 hrs of arrival of the conveyance, an Im port manif est to the
customs. This manif est is a com plete list of all items the conveyance carries on board , includingthose transshipped and those to be carried to the su bsequent ports of call.
Entry in the Import Department of the Customs House
On r eceipt of the inf or mation r egarding the arrival of the goods the im porters or their agents have
to mak e an entry by filling a bill of entry , in the pr escri bed f or m,in the im port de partment of the
customs house. the date of pr esentation is an im portant date as the rate of duty applica ble to the
im ported goods will be the rate which is in f orce on the date of pr esentation.
Presentation of Bill of Entry for Appraisal
After the bill of entry is noted in the im port de partment, the same should be pr esented to the
Appraising counters along with the f ollowing necessary documents :-
1) Im port license, if necessary
2) Ex porters invoice
3) Co py of letter of cr edit
4) Original bill of lading and its non-negotia ble co py
5) Two co pies of packing list
6) Weight specifications
7) Manufactur ers test certificate 8) Certificate of origin
9) Delivery order issued by shipping com pany or its agent
10) Fr eight and insurance amount certificate if the im port is on FOB ter ms
11) A declaration fr om im porter that he has not paid any commission to agents in India
12) Customs declaration
13) Catalogue / drawings etc. f or machinery im ported.
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In addition to a bove f ollowing documents ar e also to be su bmitted, wher ever necessary:
1) If the spar e parts ar e im ported- ex porters invoice showing unit price and extended total of
each item
2) If the second hand machinery is im ported- charter ed engineers certificate
3) If steel is im ported ± manufactur ers analysis certificate 4) If chemicals and allied pr oducts ar e im ported- literatur e showing chemical consum ption
5) If textiles items ar e im ported- textiles commissioners endorsement/certificate.
Clearance of Goods
After payment of duty the im porter should obtain the duplicate co py of bill of entry on which
order f or examination of the goods is given by Customs and get the goods examined. If the
description of goods is f ound to be corr ect, on the basis of declar ed and acce pted particulars, the
clearance of goods is allowed by the appraiser . This pr ocedur e wher e assessment is com pleted
and duly r ecover ed, prior to the examination of goods is known as ³second check pr ocedur e´. The Appraiser after initial scrutiny of documents r eturns the bill of entry to the im porters with an
order of examination of goods bef or e the assessment of duty, is known as ³first check
pr ocedur e´.
Warehousing the Goods
Under the customs act pr ovision has been made to allow im porters to war ehouse the goods
pending clearance. For this purpose im porters have to pr esent a bill of entry ter med ³ bill of entry
f or war ehousing´. This is r equir ed to be pr esented to the Bonds de partment along with the bond
f or twice the amount of duty paya ble.
Customs Duty
Following types of customs duty ar e levied on goods im ported into or ex ported outside india:
Basic Duty
Basic duty is levied on all goods im ported into India as pr escri bed in first schedule of customs
tariff act. This schedule is amended fr om time to time to modify, alter or vary the natur e of duty.
This duty is levied as a percentage of value of goods im ported or at a specified rate.
Auxiliary Duty
This duty is levied in addition to the basic duty pr escri bed under the finance act every year . But,
this duty has been withdrawn with eff ect fr om 28th
February, 1993.
Additional or Countervailing Duty
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This duty is levied on the total cost of im ported goods at the rate equal to excise duty on lik e
goods when manufactur ed in India. This duty is levied to pr otect the domestic industry.
Specific Duty
This duty is levied in order to counter balance the excise duty levia ble on the im ports going into the pr oduction of such goods pr oduced in India.
IMPORT PROMOTION SCHEMES
Export promotion capital goods (EPCG)
Zero duty EPCG scheme
This scheme allows im port of capital goods f or pr oduction, pr e- pr oduction, post- pr oduction, at
zer o custom duty, su b ject to an ex port obligation equivalent to 6 times the duty saved on capital
goods im ported under EPCG scheme to be fulfilled in 6 years r eck oned fr om Authorisation
issued date. This scheme will be availa ble f or ex porters of engineering and electr onic pr oducts,
basic chemical & phar maceuticals, apperals & textiles, plastics , handicrafts, chemicals & allied
pr oducts and leather & leather pr oducts. This zer o duty scheme will be in o peration till
31.3.2011
Concessional 3% duty EPCG scheme
This scheme allows im port of capital goods f or pr oduction, pr e- pr oduction, post- pr oduction, at
3% custom duty, su b ject to an ex port obligation equivalent to 8 times of duty saved on capital goods and im ported under EPCG scheme to be fulfilled in 8 years.
In case of agr o units and units in cottage or tiny sector im port of capital goods at 3% custom duty
shall be allowed su b ject to fulfillment of EO equivalent to 6 times of duty saved on capital goods
im ported in 12 years fr om the authorization date.
For SSI units, im port of capital goods at 3% Customs duty shall be allowed su b ject to fulfillment
of EO equivalent to 6 times of duty saved on capital goods in 8 years pr ovided the landed c.i.f .
value of such im ported capital goods under this scheme does not exceed R s 50 lakhs and total
investment in plant& machinery after after such im ports does not exceed SSI limit.
In r espect of EPCG Authorisations with a duty saved amount of R s 100 cr or es o mor e EO will be
fulfilled in 12 years. Capital goods shall include spar es, jigs, fixtur es, dies and moulds. However
im port of motor cars, sports utility vehicles shall be allowed only to hotels, travel agents, tour
o perators and com panies o perating golf r esorts.
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Im port of r estricted items of im ports mentioned under ITC (HS) shall only be allowed under
EPCG Scheme after appr oval fr om the EFC at Headquarters.
EPCG scheme covers manufactur ers- ex porters with or without supporting
manufactur ers/vendors, merchant ex porters tied to supporting manufactur ers and service
pr oviders.
Duty Exemption & Remission Scheme & Advance Authorisation Scheme
This scheme ena bles duty fr ee im port of inputs r equir ed f or ex port pr oduction. Duty Exem ption
Schemes consist of :-
1. Advance authorization and
2. Duty Fr ee Im port Authorization (DFIA)
A duty r emission scheme ena bles post- ex port r e plenishment / r emission of duty on inputs used
in ex port pr oduct. It consist of :-
1. Duty Entitlement Pass book Scheme (DEPB) and,
2. Duty Draw back (DBK) scheme.
Advance Authorisation
An advance authorization is issued to allow duty fr ee im port of inputs, which ar e physically
incorporated in ex port pr oduction. In addition, fuel, oil, energy, catalyst which ar e
consumed/utilized to obtain ex port pr oduct, may be allowed. DGFT, by means of Pu blic notice
may exclude any pr oducts fr om the purview of Advance Authorization.
Duty fr ee im port of mandatory spar es upto 10% CIF value of authorization which ar e r equir ed to
be ex ported/ supplied with r esultant pr oduct ar e allowed under Advance Authorization. Advance
Authorization is issued f or inputs and ex port items given under SION. These can be issued on
the basis of Adhoc nor ms or self declar ed nor ms. Advance Authorisation can be issued either to
a manufactur er ex porter or merchant ex porter tied to supporting manufactur es f or :-
i. Physical ex ports (including ex ports to SEZ) and /or
ii. Inter mediate supplies
iii. Supply of goods that ar e mentioned in the purview of ³deemed ex ports´ of f or eign trade
policy,
iv. Supply of µstor es¶ on board of f or eign going vessel/aircraft.
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In case of Authorisation f or im port of Tea, minimum value addition under Advance
Authorisation shall be 50%.
Pr ohi bited items of im port mentioned in ITC(HS) shall not be im ported under Advance
Authorisation.
Duty Free Import Authorisation (DFIA) Scheme
This scheme allows duty fr ee im port of inputs, fuel, oil, energy sources, catalyst which ar e
r equir ed f or pr oduction of ex port pr oduct. DGFT , by means of pu blic notice , may exclude any
pr oducts fr om the purview of DFIA. This scheme came in f orce fr om 1st May, 2006.
Pr ovisions of ³Advance Authorisation Scheme´ shall be applica ble in case of DFIA. However,
these Authorisations shall be issued only f or pr oducts f or which Standard Input and Output
Nor ms (SION) have been notified. In case of actual user DFIA and wher e CENVAT cr editfacility on inputs have been availed f or the ex ported goods, even after com pletion of ex port
obligation, the goods im ported against such DFIA shall be utilized in the manufactur e of dutia ble
goods whether within the same factory or outside.
Pr ovisions of ³Advance Release Orders (AR O)´ and ³Invalidation Letter´, ³Back ± to ± Bank
Inland Letter of Cr edit´, ³Pr ohi bited Items´ and ³Admissi bility of Draw back´ a bove shall be
applica ble f or DFIA holder .
A minimum 20% value addition shall be r equir ed f or issuance of such authorisation exce pt f or
items in Gems and Jewellery sector . Authorisation holder may transf er DFIA or duty fr ee inputs
exce pt fuel and any other items notified by DGFT.
CENVAT cr edit facility shall be applica ble f or inputs either im ported or pr ocur ed indigenously.
An application in For m ANF 4H along with the documents ther ein, shall be su bmitted to R A
concerned. Split Authorisations of DFIA su b ject to a minimum of CIF value of R s 10 lakhs each
and multiples ther eof may also be issued, on r equest at the time of seeking transf era bility. A f ee
of R s 1000/- each shall be paid f or each split authorisation.
Goods im ported against transf era ble DFIA, which ar e f ound def ective or unfit f or use, may be
r e-ex ported as per DoR guidliness. Original DFIA holder shall maintain a true and pr o per
account of consum ption and utilization of duty fr ee im ported / domestically pr ocur ed goodsagainst each authorisation as pr escri bed in Appendix 23 of Hand book of Pr ocedur es ,Vol 1.DFIA
ar e sought to be transf err ed after fulfillment of E.O.
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Duty Entitlement Passbook (DEPB) Scheme
The ob jective of DEPB to neutralise the incidence of customs duty on im port content of ex port
pr oduct. Neutrilisation shall be pr ovided by the way of grant of duty cr edit against ex port
pr oduct. Duty cr edit under this scheme is calculated by taking into account deemed im port
content of the said ex port pr oduct as per SION.
Cr edit may be utilized f or payment of Customs Duty on fr eely im ported items and/or r estricted
items. DEPB scrip¶s can also be utilized f or payment of duty against im ports under EPCG
scheme. Futhur, DEPB Scrips can also be utilized f or payment of duty against im ports under
EPCG Scheme. Pr ohi bited items of ex ports mentioned in ITC(HS) Book shall not be entitled f or
DEPB cr edit exce pt f or ex ports eff ected under transitional facility wher ever allowed, in ter ms of
paragraph 1.5 of FTP. DEPB holder shall have o ption to pay additional customs duty in cash as
well.
Validity period f or DEPB f or im port shall be pr escri bed in Hand book of Pr ocedur es, Vol1.
DEPB or items against it ar e fr eely transf era ble. In r espect of pr oducts wher e rate of cr edit
entitlement under DEPB Scheme comes to 10% or mor e, amount of cr edit against each ex port
pr oduct shall not exceed 50% of the pr esent mark et value of ex port pr oduct. Agency
Commission shall be allowed f or DEPB entitlement upto 12.5% of FOB value.
For m ANF 4C pr escri bes f or m r egarding fixation of DEPB rates. All applications f or fixation of
DEPB rates shall be r outed thr ough concerned EPCs which shall verify the FOB value of ex portsas well as international price of inputs cover ed under SION. To encourage diversification and to
pr omote ex ports of new pr oducts, DEPB committee would be em power ed to notify pr ovisional
DEPB rates. However, such DEPB rates would be valid f or a limited period of time during which
ex porter would furnish data on ex port and im port f or r egular fixation of rates.
Im port of items r equir ements by Hotels, Restaurants, Travel Agents and Tour Operators
Items mentioned as r estricted f or im ports in ITC(HS) r equir ed by hotels, r estaurants, travel
agents, and tour o perators may be allowed against an Authorisation, based on r ecommendation
of Dir ector General, Tourism, Government of India.
Hotels, including tourist hotels, r ecognized by Dir ector General of Tourism, Government of
India or a State Government shall be entitled to im port Authorisation upto a value of 25% of
f or eign exchange earned by them and f or eign tourists during pr eceding licensing year, f or im port
of essential goods r elated to hotel and tourism industry.
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Government of India shall be entitled to im port authirisation upto a value of 10% of f or eign
exchange earned by them during the pr eceding licensing year, f or im port of essential goods
which ar e r estricted f or im ports r elated to travel and tourism industry, including office and other
equipment r equir ed f or their own pr of essional use. Duty cr edit scrip may be used f or im port of
any capital goods including spar es, office equipment and pr of essional equipment, office
furnitur es and consuma bles that ar e otherwise fr eely im porta ble under ITC (HS). Duty Cr edit
scrip may also be used f or im port of consuma bles including f ood items and alcoholic beverages.
An application f or grant of an authorisation may be made in the f or m ANF 2B to DGFT thr ough
Dir ector of Tourism, GOI who will f orward application to R A concerned along with their
r ecommendations.
Import of Samples, Gifts and Other Goods
No authorisation shall be r equir ed f or im ports of bonafide technical and trade sam ples of items
mentioned as r estricted in ITC (HS) exce pt vegeta ble seeds, bees and new drugs by any im porter .
However, sam ples of tea not exceeding R s.2000 (CIF) in one consignment shall be allowedwithout an authorisation by any person concerned with tea industry.
Duty fr ee im port of sam ples upto R s. 100000 f or all ex porters shall be allowed as per the ter ms
and conditions of customs notification.
Ex ports of bonafide trade and technical sam ples of fr eely ex porta ble item shall be allowed
without any limit.
Im port under Lease Financing shall be availa ble under EPCG scheme, EOU/SEZ scheme.
Im port/ex port of exhi bits, including construction and decorative materials r equir ed f or tem porarystands of f or eign /Indian exhi bitors at exhi bitions, fair or similar show or display f or a period six
months on r e-ex port/ r e-im port basis, shall be allowed without an Authorisation on su bmission of
a certificate fr om an officer of a rank or an officer of Indian Trade Pr omotion Organisation
(ITPO) duly authorized by its chair man, to the eff ect that such exhi bition, fair or similar show or
display has been sponsor ed by DoC or ITPO and is being held in pu blic inter est.
An application f or grant of Customs Clearance Per mit (CCP) f or im port as gifts of items
appearing as r estricted f or im ports in ITC (HS) shall be made to the DGFT as in For m ANF 2B
along with the documents pr escri bed ther ein.
Bonafide household goods and personal eff ects may be im ported as a part of passenger baggage
as per limits, ter ms and conditions ther eof in Baggage R ules notified by Ministry of Finance.
Capital goods, equipments, com ponents, parts and accessories, whether im ported or indigenous,
exce pt those r estricted under ITC (HS) may be sent a br oad f or r e pairs, testing, quality
im pr ovement and up gradation or standardization of technology and r e-im ported without an
authorisation.
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Goods im ported, in accordance with FTP, may be ex ported in same or su bstantially same f or m
without an Authorisation pr ovided that item to be im ported or ex ported is not r estricted f or
im port or ex port in ITC (HS).
Transfer of Imported Goods
Fr eely im porta ble goods can be transf err ed by sale or otherwise by im porter fr eely. Transf er of
im ported goods, which ar e su b ject to Actual user condition and have surplus to needs of Actual
user shall be made only with prior per mission of R A concerned. Following documents along
with supporting documents shall be furnished with r equest f or grant of per mission f or transf er, to
R A concerned:-
1. Reasons f or transf er of im ported materials
2. Name, addr ess, IEC number and industrial authorisation r egistration, if any, of transf er ee
3. Description, quantity and value of goods im ported and those sought to be transf err ed
4.
Co pies of im port authorisation and bills of entry r elating to im ports made 5. Ter ms and conditions of transf er as agr eed upon between buyer and seller .
Duty free import of R&D equipment for pharmaceuticals and Bio-technology sector
Duty fr ee im port of goods upto 25% of FOB value of ex ports during pr eceding licensing year,
shall be allowed. The eligi ble unit may furnish an application given in Appendix 15A to R A
concerned duly countersigned by Charter ed Accountant.
Duty fr ee im ports of goods specified in list 28A of customs notification no 21/2002 dated
1.3.2002, upto 1% of FOB value of ex ports made during the pr eceding licensing year, shall be
allowed to agr o chemicals sector unit having ex port turnover of R s. 20 cr or e or a bove during
pr eceding licensing year .
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CHAPTER 3:- ABOUT THE ORGANISATION
PROFILE
Established in 1977, Eros has over three decades of market leadership in creating a global platform for
Indian cinema. The Company has an enviable distribution network that spans across 50 countries and
has offices in India, UK, USA, Dubai, Australia, Fiji, Isle of Man and Singapore. Eros has built a successful
business model by combining the release of a portfolio of 30-40 new films every year with the
exploitation of a valuable film library of over 1,900 film titles, making it undisputedly one of the largest
content owners in the business.
VISION
Er os International is at an inf lection point, having cr eated the wor ld¶s leading integrated studio
of Indian filmed entertainment. It is our vision to leverage and build on our com petitive mark et
position in the rapidly gr owing Indian media and entertainment sector so as to become the
gateway of Indian content wor ldwide and that of Hollywood content in India.
EVOLUTION
The business of Er os was f ounded in India in 1977 by Arjan Lulla, with a view to ex port Indian
films and tap into the video boom of 1970s and 1980s.
Kishor e Lulla took over the r eins of the business fr om his father, Arjan Lulla, in the 80s to
ex pand business in the UK . Kishor e infused Er os with a vision and strategic dir ection to mak e it
a leading Indian media com pany in the International mark et. He was instrumental in pr o pelling
Indian entertainment into the mainstr eam exhi bition and distri bution ar ena and international
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platf or ms lik e Cannes Film Festival, BAFTA among others.
EROS PRODUCTS
Ayngaran
Er os acquir ed 51% of the Ayngaran business in October 2007. Ayngaran ar e mark et leaders inthe Tamil filmed entertainment.
EyeQube
Er os set up a state-of -the-art visual eff ects facility in Mumbai of which internationally r enowned
B4UEr os continues to hold 24% stak e in the B4U gr oup, the leading pr emium Bollywood movie and
music channels o perating globally
Hollywood alliancesEr os has set up a joint ventur e with Universal Music in India to tap new talent and give them a
music as well as film platf or m to showcase their talents. This has never been done bef or e andalso ther e is the potential to ex plor e mixing of the new Indian talent with Universal¶s
international artists to cr eate music of wider appeal.
.
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EROS BOARD AND MANAGEMENT
Kishore Lulla
Chairman & Chief Executive Officer
Vijay Ahuja
Vice Chairman & President ± International
Jyoti Deshpande
Chief Operating Officer & Commercial Director
Sunil Lulla
Executive Director & President ± India
Dilip Thakkar
Senior Non-Executive Director
Naresh Chandra
Senior Non-Executive Director
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Chapter 4:- FINDINGS & ANALYSIS
EXPORT PRODUCTS IN EROS INTERNATIONAL MEDIA LIMITED
1) DIGITAL BETACAM
2) AUDIO CD
3) COMPACT DISCS
4)
HARD DISC DRIVE
Er os International Media Limited sources all Indian film content f or the Er os Gr oup and ex ploits
such content acr oss f or mats within India, Ne pal and Bhutan. As of December 31, 2009, we have
various rights to over 1,000 films, which include Hindi, Tamil, Marathi and other r egional
language films, including films, such as Mughal-e-Azam, Om Shanti Om, Lage R aho Munna bhai
and Love Aaj Kal, Alladin, God Tussi Gr eat Ho. We own rights to certain English language
films f or home entertainment distri bution within India.
We ex ploit and ex port Indian film content within India, Ne pal and Bhutan and Shrilanka, UK,USA, Du bai, Sydney, Nair obi, Singapor e, Malaysia, New Zealand, Johannes burg thr ough
multiple f or mats, such as theatr es, home entertainment, principally in the f or m of digital versatile
discs (DVDs), video com pact discs (VCDs) and audio com pact discs (CDs).
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OUR LATEST R ELEASES
GOD TUSSI GR EAT HO
OM SHAANTI OM
VEER
PAATHSHALA
HOUSEFULL
DR ONA
NAMESTEY LONDON
LOVE AAJ KAL
ALLADIN
AND MANY MOR E.
OUR FOR THCOMING R ELEASES
MILENGE MILENGE
KHATTA MEETHA
R OCKSTAR
GOLMAL 3
DESI BOYS and many mor e.
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Ther e is pr o per filling and maintaining of all the documents r elated to ex ports and im ports done
in our com pany. Ther e is amendment of the rules and pr ocedur es set by the Dir ector General of
For eign Trade.
The ex port ± Im port documentation and pr ocedur e plays an im portant r ole in international
mark et. Thus, without pr o per r egistration and documentation f or eign trade will not be carried out pr o per ly. The ex porter and im porter have to be r egister ed and should obtain an ICE number .
The shipping documents have to be made and counter signed by a CA or an Authorized Dealer;
they ar e to be made in triplet and fr eight and packing charges duly paid on it.
The policy of the government to encourage manufactur ers and ex porters to attain internationally
acce pted standards of quality f or their pr oducts. The government extends support and assistance
to trade and industry to launch a nationwide pr ogramme on quality awar eness and pr omote the
conce pt of total quality management.
With the ob jective of pr omoting ex ports of branded pr oducts, the Government of India has
constituted a Committee f or identification of such pr oducts and upon r ecognition of such brands
by the committee, the ³Rewards and Benefits´ shall become availa ble f or ex ports of such brands.
Also, if the industry and government work in tandem, then the Indian ex ports will become
globally com petitive.
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CHAPTER:- 5 CONCLUSION
HISTORY OF INDIA¶S FOREIGN TRADE
On the eve of Inde pendence in 1947, f or eign trade of India was typical of a colonial and
agricultural economy. Trade r elations wer e mainly confined to Britain and other Commonwealthcountries. Ex ports consisted chief ly of raw materials and plantation cr o ps while im ports
com posed of light consumer goods and other manufactur es.
Over the last 60 years, India¶s f or eign trade has undergone a com plete change in ter ms of
com position and dir ection. The ex ports cover a wide range of traditional and non-traditional
items while im ports consist mainly of capital goods, petr oleum pr oducts, raw materials, and
chemicals to meet the ever -incr easing needs of a develo ping and diversifying economy. For
a bout 40 years (1950-90, f or eign trade of India suff er ed fr om strict bur eaucratic and
discr etionary contr ols. Similar ly, f or eign exchange transactions wer e tightly contr olled by the
Government and the Reserve Bank of India. Fr om 1947 till mid-1990s, India, with some exce ptions, always faced deficit in its balance of payments, i.e. im ports always exceeded ex ports.
This was characteristic of a develo ping country struggling f or r econstruction and modernization
of its economy. Im ports gallo ped because of incr easing r equir ements of capital goods, def ence
equipment, petr oleum pr oducts, and raw materials. Ex ports r emained r elatively sluggish owing
to lack of ex porta ble surplus, com petition in the international mark et, inf lation at home, and
incr easing pr otectionist policies of the develo ped countries. Beginning mid-1991, the
Government of India intr oduced a series of r ef or ms to li beralise and globalise the Indian
economy. Ref or ms in the external sector of India wer e intended to integrate the Indian economy
with the wor ld economy.
India¶s appr oach to o penness has been cautious, contingent on achieving certain pr econditions to
ensur e an order ly pr ocess of li beralization and ensuring macr oeconomic sta bility. This appr oach
has been vindicated in r ecent years with the gr owing incidence of financial crises elsewher e in
the wor ld. All the same, the policy r egime in India in r egard to li beralization of the f or eign sector
has witnessed very significant change.
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DGFT or Dir ectorate General of For eign Trade is a government organization in India
r esponsi ble f or the f or mulation of Exim guidelines and principles f or Indian Importers and
Indian Exporters of the country. Bef or e 1991, DGFT was known as the Chief Contr oller of
Im ports & Ex ports (CCI&E).
DGFT is r esponsi ble f or im plementing the Foreign Trade Policy or Exim Policy with the main
ob jective of pr omoting Indian ex ports.
The Reserve Bank of India and the Government of India, issued various notifications, rules,
orders f or f or eign exchange management.
On 1st
June 2000, the For eign Exchange Management Act, 1999 (FEMA) has r e placed the
For eign Exchange Regulation Act, 1973 (FER A).
The ob jective of FER A was to conserve f or eign exchange r eserves wher eas the ob jective of
FEMA is to facilitate external trade & payments & to pr omote order ly maintenance of the
f or eign exchange mark et in India.
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CHAPTER 6:- BIBLIOGRAPHY
BOOKS
IMPOR T DO IT YOUR SELF ±M.I.MAHAJAN
EXPOR T DO IT YOUR SELF ± M.I.MAHAJAN
EXPOR T INCENTIVES ASSISTANCE & FACILITIES- ANITA KUMAR I
FOR EIGN EXCHANGE MANAGEMENT MANUAL ± D.T.KHILANI
INTERNET
www.inf odrive.com
www.eximpolicy.com
www.dateyvs.com/customs07.htm
www.nic.in/exim pol.com
www.wikipedia.org
www.er osentertainment.com
www.er osplc.com