import and export procedure

8/11/2019 import and export procedure

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Ritesh Parmar

(I.E.H.E.)


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DEFINATION An export of a good occurs when there is a change of

ownership from a resident to a non-resident; this does notnecessarily imply that the good in question physically

crosses the frontier. However, in specific cases nationalaccounts impute changes of ownership even though inlegal terms no change of ownership takes place (e.g. crossborder financial leasing, cross border deliveries betweenaffiliates of the same enterprise,goods crossing the borderfor significant processing to order or repair). Alsosmuggled goods must be included in the exportmeasurement.


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PROCEDURE exporter has to submit shipping bill for export by sea

or air and bill of export for export by road.

Relevant documents i.e. copies of packing list,invoices, export contract, letter of credit etc. are also tobe submitted.


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DECLARATION Declaration in case of export of goods under claim for

drawback.

Declaration in case of export of goods under DEECscheme.

Declaration in case of export of goods in anticipationof issue of advance license.

Declaration for consignment covered by AR-4 pendingweighment at docks.


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DOCUMENTS Four copies of commercial invoice.

Four copies of packing list.

Certificate of origin. Insurance policy

Letter of credit.

Declaration of value.

GR/SDF form prescribed by RBI in duplicate


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DOCUMENTS Four copies of commercial invoice.

Four copies of packing list.

Certificate of origin. Insurance policy

Letter of credit.

Declaration of value.

GR/SDF form prescribed by RBI in duplicate


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DOCUMENTARY

COLLECTION


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BILL OF LADINGAs a document of title, it is a certificate of

ownership that allows a holder or consignee to

claim the merchandise described.As a receipt of goods, it is issued by the carrier to

the shipper for goods entrusted to the carriers carefor transportation.

As a contract of carriage, the bill of lading definesthe contracts terms between the shipper and hiscarrier.


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SHIPPERS

EXPORT

DECLARATIONFORM


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DEFINITION

Section 2(23) of the customs act ,defines import ,Import means bringing into India from a placeoutside India.


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PROCEDURE Preliminary formalities Trade enquires

Getting proforma invoice

Obtaining import license Placing the order Placing the indent

Opining later of credit

Getting document of titles Receiving advice note

Making payment

Receiving documents of title


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Clearing of goods Getting delivery order

Payment of custom duties


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IMPORTENT DOCUMENT IN

IMPORT TRADE Import license (if required)

Indent

Letter of credit Bill of Entry

Bill of sight


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DOCUMENT TO BE SUBMITTED BY

IMPORTER Invoice

Packing list

Bill of lading Delivery order

Copy of license attested

Insurance policy


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CONFIRMED L/C


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FOB

FREE ON BOARDSeller Buyer

risk risk

cost cost

FREE ON BOARD means the seller fulfills its obligation todeliver when the goods have passed over the ship's rail atthe named port of shipment

The buyer has to bear all costs and risks of loss of ordamage to the goods from that point.


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FREE ON BOARD requires the seller to clear the goodsfor export.

FREE ON BOARD can only be used for sea or inlandwaterway transport.


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os an re g

Seller Buyer

RiskCost

RiskCost

COST AND FREIGHT means the seller must pay the costs and freight necessary tobring the goods to the named port of destination.

The risk of loss or of damage to the goods, as well as any additional costs due to

events occurring after the time the goods have been delivered on board thevessel, is transferred from the seller to the buyer when the goods pass the ship'srail in the port of shipment.


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If the buyer does not insure the shipment and if the goods aredamaged, you may run the risk of not being paid.

This rule applies to all types of shipments including fragile items, diet

plans, furniture and all other varieties of products. Exporting rules areimportant for the health and fitness of goods when they are shippedand the wellness for the companies involved.

COST AND FREIGHT requires the seller to clear the goods for export.

COST AND FREIGHT can only be used for sea or inland waterway

transport.


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Computation of assessable value of goods

Computation of custom duty


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QUESTIONPrice of machine $ 10000Air freight paid $ 2500

Transit insurance not ascertainableCost of development work in india Rs.40000

Agents commission Rs.10000

Exchange rate applicable 1$=Rs.45

Compute the assessable value of the machine .


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Compute the assessable value and the custom duty payableof the machine imported by m/s export India pvt. Ltd.

Cost of machine $30000

Importer sent goods for manufacturing Rs.3000000f machine

Design and development charges $9000

Packing charges $2000

Transportation and insurance $4500

importer paid commission to his agent

to settle the price of machine $1000

Importer paid brokerage to agent of exporter Rs.100000

1 $=Rs. 45(notified by the board ) 1 $=Rs. 45.50(notified by the R.B.I.)

Info. 1.Basic custom duty @ 10 % ,additional custom duty @10%,edu. Cess @3%

SAD @ 4%


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Any Question ?


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Thank you

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import and export procedure

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