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Import,export procedure

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Import,export procedure

  1. 1. Ritesh Parmar (I.E.H.E.)
  2. 2. DEFINATION An export of a good occurs when there is a change of ownership from a resident to a non-resident; this does not necessarily imply that the good in question physically crosses the frontier. However, in specific cases national accounts impute changes of ownership even though in legal terms no change of ownership takes place (e.g. cross border financial leasing, cross border deliveries between affiliates of the same enterprise, goods crossing the border for significant processing to order or repair). Also smuggled goods must be included in the export measurement.
  3. 3. 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 to be submitted.
  4. 4. DECLARATION Declaration in case of export of goods under claim for drawback. Declaration in case of export of goods under DEEC scheme. Declaration in case of export of goods in anticipation of issue of advance license. Declaration for consignment covered by AR-4 pending weighment at docks.
  5. 5. 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
  6. 6. 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
  7. 7. DOCUMENTARYCOLLECTION
  8. 8. BILL OF LADING As 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 carrier’s care for transportation. As a contract of carriage, the bill of lading defines the contracts terms between the shipper and his carrier.
  9. 9. SHIPPER’SEXPORTDECLARATIONFORM
  10. 10. DEFINITION Section 2(23) of the customs act ,defines import , “Import means bringing into India from a place outside India”.
  11. 11. RESTRICTED IMPORT Import of agriculture Food adulteration Act Restricted old motor car’s Canalized import
  12. 12. 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
  13. 13.  Clearing of goods Getting delivery order Payment of custom duties
  14. 14. IMPORTENT DOCUMENT INIMPORT TRADE Import license (if required) Indent Letter of credit Bill of Entry Bill of sight
  15. 15. DOCUMENT TO BE SUBMITTED BYIMPORTER Invoice Packing list Bill of lading Delivery order Copy of license attested Insurance policy
  16. 16. CONFIRMED L/C
  17. 17. FINALLETTEROFCREDIT
  18. 18. FOBFREE ON BOARDSeller Buyerrisk riskcost cost FREE ON BOARD means the seller fulfills its obligation to deliver when the goods have passed over the ships rail at the named port of shipment The buyer has to bear all costs and risks of loss of or damage to the goods from that point.
  19. 19.  FREE ON BOARD requires the seller to clear the goods for export. FREE ON BOARD can only be used for sea or inland waterway transport.
  20. 20. Cost and freightSeller BuyerRisk RiskCost CostCOST 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 toevents 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 shipsrail in the port of shipment.
  21. 21.  If the buyer does not insure the shipment and if the goods are damaged, 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 are important for the health and fitness of goods when they are shipped and 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.
  22. 22. CIFCOST, INSURANCE, & FREIGHT Seller Buyer Risk Risk Cost Cost COST, INSURANCE AND FREIGHT means the seller has the same obligations as under CFR - COST AND FREIGHT and the seller also has to procure marine insurance against the buyers risk of loss of or damage to the goods during the carriage.  The seller contracts for insurance and pays the insurance premium.  The seller is only required to obtain insurance on minimum coverage.
  23. 23. Computation of assessable value of goodsComputation of custom duty
  24. 24. QUESTIONPrice of machine $ 10000Air freight paid $ 2500Transit insurance not ascertainableCost of development work in india Rs.40000Agents commission Rs.10000Exchange rate applicable 1$=Rs.45Compute the assessable value of the machine .
  25. 25.  Compute the assessable value and the custom duty payable of the machine imported by m/s export India pvt. Ltd.Cost of machine $30000Importer 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 $1000Importer paid brokerage to agent of exporter Rs.1000001 $=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%
  26. 26. Any Question ?
  27. 27. Thank you E.mail-riteshparmar0807@yahoo.com

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