The document discusses export procedures from India, including tariffs, customs duty calculation, determining import duty, export shipment steps, factory stuffing of containers, dock/CFS stuffing, and air cargo carting. It provides details on documentation requirements, official procedures and interventions at various stages of export. It also addresses some frequently asked questions about invoicing currency, export proceeds realization timeline, accumulating proceeds in foreign accounts, and RBI permission for short realization.

1. Exporting from India
Part III

2. Tariffs
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A Tariff (duty) is the tax levied by governments on the value
including freight and insurance of imported products.
• Tariffs increase the product’s cost to the importer
• Tariffs increase the cost of a foreign product in the domestic market
• Hence, tariff affects the product’s cost-competitiveness
• Knowledge about tariff can help the exporters in market placement
• Components include - Basic customs duty, additional customs duty, special
additional customs duty and education cess

3. Calculating Customs Duty
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Duties Steps to calculation
Assessable Value CIF Value + Landing Charges (@1% of CIF Value)
Basic Duty of Customs (%) (AV x BD rate) / 100
Basic Duty Pref (%) (AV x BD Pref rate) / 100
Additional Duty of Customs(CVD) (Including Cess,
if any) (%)
(AV + BD. Amt.) x CVD rate / 100 CVD=10%
Central Excise Education Cess (%) (CVD Amt.) x Central Excise Edu. Cess Rate / 100 Edu Cess= 3%
Customs Education Cess (if any) (%)
(BD Amt. + CVD Amt. + Edu. Cess. Amt.) x Custom Edu. Cess Rate / 100
Edu Cess= 3%
Special Additional Duty of Customs(Spl.CVD) (if
any) (%)
(AV + BD Amt. + CVD Amt. + Edu. Cess. Amt. + Custom Edu. Cess Amt.) x
Spl. CVD Rate / 100 Special CVD=4%
Total Customs Duty
BD Amt. + CVD Amt. + Edu. Cess Amt. + Custom Edu. Cess Amt. + Spl.
CVD Amt.

4. Determining Import duty
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• Determine the HS code
• Access the tariff details on WTO tariff database/respective country’s customs
websites
• Data is also accessed on WITS-Trains, Tariff Analysis Online, Eurostat Online
Database, Directorate of Trade Statistics- IMF, OECD-WTO Trade in Value Added

5. Steps in Export Shipment
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Exporter has to file his bill of shipment
Check the documents thoroughly
Goods need to be physically examined
Assess the goods qualitatively and
quantitatively
Goods need to be loaded on carrier

6. FrontalRain Technologies Pvt Ltd.
Factory stuffing of containers
Factory
Goods for export
Official Intervention
before loading to container
(Excise/ Customs Official)
Container Stuffing
Under official vigilance
Document
Verification
‘Let Export’ order to
Move goods to shipping terminal
Container is loaded in ship

7. Factory stuffing of containers
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• Excise officials are intimated about the cargo carting from factory.
• Empty container from the container yard is transported to the factory.
• Commercial invoice, packing list, shipper declaration, purchase order, Statutory Declaration
Form (SDF), Authorized Dealer Code (ADC), Excisable goods (AR-4), shipping bill and
Importer Exporter Code (IE code) are kept ready for inspection.
• Container stuffing proceeds with the official vigilance. Documentation is endorsed after
checking.
• Physical checking of goods is also done and goods are permitted to trucking.
• Loaded and sealed container moves to port of loading.
• All the documents are filed for customs clearance at the gateway port/ Container Freight
Station (CFS). Subject to document clearance and inspection of container seals, ‘Let Export’
order is given.
• Container is moved to its designated terminal for loading on vessel.

8. FrontalRain Technologies Pvt Ltd.
Factory Goods for export
Official Intervention
before loading to container into vessel
(Excise/ Customs Official)
Container Stuffing
Under vigilance
Document
Verification
‘Let Export’ order to
Move goods to shipping terminal
Export cargo is moved to port
Stuffing
permission
Dock/ Container Freight Station (CFS) stuffing

9. Dock/ Container Freight Station (CFS) stuffing
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• Commercial invoice, packing list, shipper declaration, purchase order, Statutory Declaration
Form (SDF), Authorized Dealer Code (ADC), Excisable goods (AR-4), shipping bill and
Importer Exporter Code (IE code) have to be filed at the dock/CFS.
• Export cargo is moved from factory to designated port.
• Appraisal of shipping bill with all its export documents is done and permissibility of export is
verified.
• Post Cargo evaluation, duty is calculated and verification of incentive is claimed when
applicable.
• Stuffing/consolidation permission is granted.
• Cargo is stuffed in the container on dock.
• Cargo undergoes examination under official supervision, and container is sealed.
• Documents are released with ‘Let Export’ order.

10. FrontalRain Technologies Pvt Ltd.
Factory Goods for export
Official Intervention
(Excise/ Customs Official)
Cargo loaded
After
Cooling period
Document
Verification
At airport
‘Let Export’ order to
Move goods to airline shed
Export cargo is moved to
airport
Stuffing
permission
Air Cargo Carting

11. Air Cargo Carting
FrontalRain Technologies Pvt Ltd.
• Export documentation including commercial invoice, packing list, shipper declaration,
purchase order, Statutory Declaration Form (SDF), Authorized Dealer Code (ADC), Excisable
goods (AR-4), shipping bill and Importer Exporter Code (IE code) have to be filed at Customs
at Airport.
• Export cargo is moved from factory to Airport warehouse.
• Appraisal of shipping bill with all its export documents is done and permissibility of export is
verified.
• After cargo evaluation, duty is calculated and verification of incentive is claimed when
applicable.
• Stuffing/consolidation permission is granted after which cargo is stuffed in the container on
dock where the cargo undergoes examination under official supervision, and container is
sealed.
• Documents are then released with ‘Let Export’ order after which the cargo is carted to
Airline shed and loaded after cooling period.

12. Frequently Asked Question 1
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Should the exporter send an invoice to the buyer in Indian
rupees or the foreign currency?
• There is no restriction put for invoicing. It can either be done in Indian rupees or
foreign currency
• Export proceeds shall be realized in freely convertible currency
• Vostro account of a non-resident bank other than ACU or Nepal or Bhutan uses
Rupees for transactions

13. FAQ 2
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What’s the timeline for realizing the export proceeds?
• Repatriation within 12 month period from the date of export is obligatory on the
part of the exporter
• Exception of another three months for exporter from the date of shipment if the
destination of your goods exported is a warehouse established outside India

14. FAQ 3
FrontalRain Technologies Pvt Ltd.
Can export proceeds be accumulated in the exporter’s foreign
bank? Should the exporter convert the proceeds in Indian rupee
or foreign currency?
• A person residing in India may open with, an AD Category – I bank in India, an
account in foreign currency called the Exchange Earners’ Foreign Currency (EEFC)
Account, in terms of various RBI regulations

15. FAQ 4
FrontalRain Technologies Pvt Ltd.
Is RBI permit required in case of short realization for export
proceeds, or can the exporter himself write it off?
• For export proceeds due within the prescribed period during a financial year all
exporters (Including Status Holder exporters) have been allowed to write-off
(including reduction in invoice value) outstanding export dues and extend the
prescribed period of realization beyond 12 months or further period as applicable,
subject to certain conditions

16. FrontalRain Technologies Pvt Ltd.