The document discusses the process and documentation required for customs clearance of export shipments in India. It involves 10 steps: 1) registration for a Business Identification Number, 2) electronic filing of the shipping bill, 3) generation of the shipping bill, 4) checking of documents at the customs house, 5) physical examination of cargo, 6) drawl of samples if required, 7) generation of shipping bills, 8) loading of goods under customs supervision, 9) obtaining the mate's receipt, 10) collection of the bill of lading upon exchange of the mate's receipt. The exporter must submit various documents like the shipping bill, commercial invoice, exchange control form, packing list, certificate of origin etc. to customs for

1. CUSTOM CLEARANCE

2. Custom Clearance
 Every exporter is required to obtain customs
clearance in respect of export goods before
they are sent to buyer, irrespective of the
mode of shipment.
 The mode of shipment could be either by sea, air,
rail or road.

3. Custom Clearance
 According to Section 40 of the Customs
Act,
 person-in-charge of the conveyance vessel,
aircraft or vehicle cannot permit loading of
goods, without permission of the Customs
Authorities.
 The exporter through the clearing and forwarding
agent, also known as Customs House Agent (CHA),
normally, obtains the customs clearance.

4. EXCHANGE CONTROL
DECLARATION FORM
 Under Customs Act, every exporter is required
to declare export value of shipment and give
an undertaking that the export proceeds would
be realized within a period of six months from
the date of shipment or due date, whichever is
earlier.
 If customs clearance for the shipment is made
manually, declaration is made in GR form, in
duplicate.
 If the clearance is computerised, SDF form, in
duplicate, is used in place of GR form.

5. CUSTOMS CLEARANCE OF
EXPORT SHIPMENT

6. Documentary Requirements
 Shipping Bill (Appropriate
type) in quadruplicate, if
clearance is manual or
 Commercial Invoice (2
copies);
 Exchange Control Form-
GR Form or SDF as
applicable, in duplicate.
 Copy of Letter of
Credit/Copy of Export
Order/ Export contract,
duly attested by bank
 Packing List;
 Certificate of Origin or GSP
certificate of Origin;
 Shipper’s declaration form
for export of goods;
 ARE-1, duly approved by
the Central Excise office
(ARE-1 has replaced AR-
4);
 Original copy of Certificate
of Insurance, wherever
necessary;
 Marine Insurance Policy;
 Export Licence, where
required
Exporter or CHA has to submit the following documents to the
customs department for securing customs clearance:

7. INDIAN CUSTOMS ELECTRONIC
DATA INTERCHANGE SYSTEM
(ICES)
 The computerised processing of Shipping Bills
under the Indian Customs EDI (Electronic
Data Interchange) System- (Exports) has
come into force w.e.f. 15.09.2004. The system
is known as ICES (Exports).

8. Electronic Data Inter-Change
System
 Customs authorities have introduced
computerised processing of export documents,
replacing manual processing at many customs
centres. The main objective is to ensure
expeditious processing and provide efficient
customs clearance service to exporters.
 This system is known as Indian customs EDI
System (Electronic Data Inter-Change System).

9. Customs clearance procedure in respect of shipment
by sea, when processing of documents is
computerised is as under:

10. 1. Registration for Business
Identification Number
 Exporters have to obtain PAN based Business
Identification Number (BIN) from the
Directorate General of Foreign Trade, prior to
filing for customs clearance of export goods.
 Under the EDI System, PAN based BIN is
received from the DGFT online.

11. 2. Electronic Filing of
Shipping Bill
 Exporters/CHAs are required to register their Import
Export Codes, Customs House Agent Licence Nos., and
the Bank A/c No. (for credit of Drawback amount) in the
Customs Computer Systems, before an EDI Shipping
Bill is filed.
 Exporters/CHAs would be required to submit the
following documents at the Data Entry Centre of the
Customs Station (Service Centre):
 A declaration in the specified format (Applicable annexure A or
B);
 SDF(Statutory declaration form) declaration;
 Quota/Inspection certificate and
 Drawback/DEEC/DFRC/DEPB Declarations etc., as applicable

12. 3. Shipping Bill
 Under computerised system, exporter is not required to file
shipping bill. It is rather generated through computer system.
 The information is filled in the applicable two forms- Annexure
A and B. If exports are duty free goods, Annexure A is filled in.
If exports are under claim of duty drawback (duty is paid first
and refunded after shipment), Annexure B is to be filled in.
The applicable annexure is submitted at Service Centre- Data
entry Centre of Customs Station.
 Once the data is fed into the computer, a checklist is generated.
Checklist is verified by the exporter/CHA and if the data is in
order, they sign in token of approval. After correct data is entered
into the system, Shipping Bill is processed, automatically, by the
System on the basis of declaration made by Exporter. Then, the
service centre generates shipping bill for noting and further
processing. Service centre assigns a number to the shipping bill,
which is endorsed on the printed checklist and returned to
exporter/CHA.

13.  The shipping bill so generated is used as the basic document for issue of “Let Export
 Order”, later. The Exporter/CHA at Service Center can check status of the Shipping
Bill.
 They should also check whether any query has been raised in respect of their
Shipping Bill.
 In case of any query, they should file a reply to the query through Service Centre. It
is
 important to note that the shipping Bill is only generated in the computer and no print
out
 is taken at this stage. Endorsements are not made manually until „Let Export Order‟
stage
 but entered on Shipping Bill, in computer system. Computer print out is taken only
after
 the issuance of “Let Export Order”.
 The Assistant Commissioner assesses the following categories of Shipping Bill
(Export):
 (a) Shipping Bills where the FOB value is more than Rs. 10 Lakhs.
 (b) Shipping Bills relating to free trade samples whose value is more than Rs.
20,000.
 (c) Drawback Shipping bills where drawback amount is more than Rs. 1 Lakh.

14. 4. Checking of Documents at
Customs House
 (a) Shipping bills involving foreign exchange are sent to the Appraisement section. In
 appraisement section, Dutiable and Drawback Shipping Bills are allotted to appraisers
 for scrutiny and examination order. Free Shipping Bills are sent to examiners.
 (b) Verification of Shipping Bill is made to ascertain whether quantity and value of
 goods are as per export order/letter of credit. Input-output norms (wherever
 applicable) and details of drawback rate are checked by the inspector and
 superintendent of customs. Further, verification is also made in respect of the
 compliance of formalities as regards Exchange Control, Licensing, Pre-Shipment
 Inspection, if applicable, and other statutory requirements.
 (c) The customs appraiser/examiner assesses value of goods. The value of goods assessed
 by the appraiser is considered in all future transactions, especially for settlement
 of incentive claims.
 (d) After verification, the customs appraiser/examiner feeds “Examination Order” on
 the Shipping Bill into the system. The examination order determines the extent of
 physical examination of goods at Docks and assigns the official to conduct
 examination. This “order” enables the Dock Appraiser to conduct physical
 examination of the goods in the docks. The principal appraiser also countersigns
 the “examination order”.
 (e) The CHA, in turn, can enquire about the status of his documents from his own
 system. He can view any memo or objections on his documents as they are posted
 in the system.
 (f) The shipping bill number is put on the GR/SDF forms. SDF form is used in place
 of GR form if the customs operations are computerised at that customs centre.
 (g) Where export duty is to be paid, exporter/agent has to pay at Cash & Accounts
 section of the customs.

15. 5. Physical Examination of Export
Cargo by Dock Appraiser
 (a) Export goods are transported into the shed, after completing port formalities.
 (b) The exporter/agent presents the following documents to Dock Appraiser along with
 check List.
 (i) Packing List
 (ii) Invoice
 (iii)ARE-Forms
 (iv) Agmark Certificate, if applicable
 (c) The shed Appraiser/Examiner conducts physical examination of goods as per the
 examination order.
 (d) If the examination is satisfactory, the shed Appraiser/Examiner records the report
 of physical examination on the shipping bill through the computer system.
 (e) The Appraiser also signs and stamps the original & duplicate copies of SDF. He
 returns exporter copy and second copy of SDF to exporter or his agent.
 (f) In case of any variation between the declaration in the Shipping Bill and physical
 documents/examination report, the Appraiser may mark Electronic Shipping Bill to
 the Assistant Commissioner/Deputy Commissioner of Customs (Exports). He may
 also forward physical documents to Assistant Commissioner/Deputy Commissioner
 of Customs (Exports) and instruct the exporter or his agent to meet the Assistant
 Commissioner/Deputy Commissioner of Customs (Exports) for settlement of dispute.
 (g) Documents once entered and submitted are then reviewed by different officers of
 the Custom House at various stages of processing and final clearance is accorded
 on the computer system after all formalities are over for physical examination of
 goods at the Sheds. ICES keeps track of officers who have handled the documents
 at various stages of processing. The trail of processing cycle is available to superior
 officers at any time.
 (h) In case, exporter agrees with the views of Department, the Shipping Bill is processed
 accordingly. Where, however, the exporter disputes the view of the Department,
 principles of natural justice are required to be followed, before finalisation of the
 issue.

16. 6. Drawl of Sample
 Where the Appraiser Dock (export) orders for samples to be drawn and tested, the
 Customs Officer may proceed to draw two samples from the consignment and enter
 particulars thereof. There is no separate register for recording dates of samples
drawn.
 Three copies of test memo are prepared and signed by the Customs Officer and
Appraising
 Officer on behalf of Customs and the exporter or his agent. The disposal of three test
memo
 copies is as follows:
 (i) Original—to be sent along with the sample to the test agency.
 (ii) Duplicate—Customs copy to be retained with the second sample.
 (iii) Triplicate—Exporter’s copy.
 The Assistant Commissioner/Deputy Commissioner if he considers necessary, may
also
 order for sample to be drawn for purpose other than testing such as visual inspection
and
 verification of description, market value inquiry, etc.
 Results of testing agency are fed in the ICES-Export System.

17. (7) Generation of Shipping
Bills
 (a) After examination of goods and scrutiny of documents, if every thing is found to be
 in order, the Appraiser feeds “Let Export Order” into system on the Shipping Bill.
 Then, Shipping Bill is generated by the system in two copies i.e., one Customs copy
 and one exporter‟s copy.
 (b) After obtaining the print out, the appraiser obtains the signatures of representative
 of the CHA on both the copies of shipping bill. It is necessary as the shipping bill
 has been computer generated and does not bind exporter, in the absence of signature.
 The name and Licence No. of the CHA should be clearly mentioned below his
 signature. The Appraiser thereafter signs & stamps both the copies of the shipping
 bill at the specified place.
 (c) In case of discrepancy, the matter is reported to the Assistant Collector of Customs
 for further instructions/decision.
 (d) Exporter gets Export Promotion Copy and Exporter’s copy of shipping bill, duly
 signed by the competent authority.
 (e) Customs copy of Shipping bill and original copy of SDF are forwarded by the
 Appraiser to Export Department of Customs House. Original copy of SDF is sent
 to RBI.

18. 8. Loading of Goods under
Supervision of Preventive
Officer
 (a) Exporter submits his copy of Shipping Bill to the
Preventive Officer of Customs.
 (b) Preventive Office makes an endorsement “Let Ship Order”
on the exporter’s copy
 of Shipping Bill.
 (c) The above endorsement is an authorisation from customs
to the shipping company
 to accept cargo on the vessel for loading.
 (d) Goods are loaded under the supervision of Preventive
Officer.
 (e) Preventive Officer supervises the loading of container
general cargo into the vessel
 and gives “Shipped on Board” endorsement on the exporter‟s
copy of shipping bill.

19. 9. Mate’ Receipt
 (a) Shipping Company hands over mate’s
receipt to Port.
 (b) Exporter collects the mate’s receipt after
paying dues to Port.

20. 10. Post Loading Certification
 (a) Exporter presents mate’s receipt to
Preventive Officer.
 (b) Preventive Officer, earlier, recorded
certificate of shipment on exporter’s copy of
 shipping bill. Now, he records the fact of
shipment on other copies of shipping bill
 and on copies of ARE-1 and returns them to
exporter/CHA.

21. 11. Collection of Bill of
Lading
 Exporter/CHA submits the mate‟s receipt to the
shipping company and requests it to issue the
Bill of Lading (Negotiable and non-negotiable
copies).

22. Port Procedures

23.  Export cargo can be brought into the port after the
ship has been allotted a berth and
 declared for loading. Shippers have to pay the port
charges dependent on the procedure
 followed by each port. Some ports collect port charges
before loading while Bombay port
 offers the facility of collecting port charges, after
loading.
 (A) Carting Permission: Before bringing cargo to
the shipment shed, it is necessary
 to take “Carting permission” from superintendent of
the shed and agent of the
 shipping company.

24.  (B) Vehicle Ticket: At the port gate, while entering
with cargo, shipper has to show
 carting permission and vehicle ticket, in duplicate, to
the Gate Inspector. Gate
 inspector examines goods and documents to ensure
permitted goods in the documents
 only are entering into port. The packages, bundles,
cases mentioned in the vehicle
 ticket are tallied with those in the vehicles before
goods are allowed in. Necessary
 entry is made in the registers in respect of cargo
passed through the gate.

25.  (C) Mate’s Receipt: Soon after goods are cleared by customs,
exporter/CHA obtains
 “Let Ship Order” from the Preventive officer of customs on the exporter‟s
copy of
 Shipping Bill. The master of the vessel allows loading of cargo on board, in
 consultation with Preventive Officer of Customs. The master of the vessel
issues
 mate‟s receipt to Port authorities in respect of shipment taken on board,
indicating
 the condition of goods at the time of receipt. After payment of port dues,
shipper
 collects the mate‟s receipt. Mate‟s receipt is an important document as it is
to be
 exchanged to Bill of Lading. So, shipper has to collect it from the
superintendent
 of the shed, immediately, soon after it is received to avoid the delay and
problems
 in negotiation.

26.  (D) Bill of Lading: Shipper collects blank copies of Bill of
Lading from the shipping
 company and prepares two/three negotiable and required
non-negotiable copies of
 Bill of Lading. Shipping Company issues Bill of Lading to the
shipper in exchange
 of mate‟s receipt. Bill of Lading may be marked “Freight Paid”
if shipper has paid
 freight and “Freight to Pay” when freight is to be collected
from importer. Shipping
 Company incorporates those clauses that are appearing in
the mate‟s receipt, before
 Bill of Lading is issued.