export import procedures

1. Import & Export Procedures
under Customs Law
CMA Intermediate – Indirect Taxation

2. Introduction
• Customs Act, 1962 regulates imports and exports.
• Ensures revenue collection and protects domestic industry.
• Procedures balance ease of trade with regulatory control.

3. Import Procedure
• Importer files Bill of Entry (Sec. 46).
• Types: Home Consumption / Warehousing.
• Declaration of classification, value, and duty.
• Customs assessment & examination.
• Duty payment → goods cleared.

4. Goods Cleared for Home
Consumption
• Green Channel: Self-assessment, no examination.
• First Check: Assessment after physical examination.
• Second Check: Assessment before verification.
• Clearance after duty payment.

5. Warehousing Procedure
• Goods deposited in bonded warehouse.
• Into-bond Bill of Entry filed.
• Bond executed for duty liability.
• Ex-bond Bill of Entry (Sec. 68) for clearance.
• Defers duty payment until clearance.

6. Export Procedure
• Exporter files Shipping Bill / Bill of Export.
• Types: Free, Dutiable, Drawback, Ex-bond.
• Customs checks classification, valuation, restrictions.
• Entry Outwards → Loading permitted.
• Goods shipped + Export General Manifest filed.

7. Deemed Exports
• Supplies treated as exports without physical movement.
• Examples: Supplies to EOUs, SEZs, World Bank funded projects.
• Benefits: Duty drawback, GST refund, exemptions.

8. Duty Drawback
• Refund of duty on imported inputs used in exports.
• Types: All Industry Rate (notified), Brand Rate (application-based).
• Negative List: Certain goods excluded.

9. Special Procedures
• 100% EOUs: Duty-free imports with export obligations.
• SEZs: Duty-free imports for authorized operations.
• Project Imports: Concessional duty on industrial machinery/equipment.

10. Simplified Flow (Import)
• 1. Arrival of goods.
• 2. Filing Bill of Entry.
• 3. Assessment & Examination.
• 4. Duty Payment.
• 5. Clearance/Home consumption OR Warehousing.

11. Simplified Flow (Export)
• 1. Export contract & goods prepared.
• 2. Filing Shipping Bill.
• 3. Entry Outwards & Loading.
• 4. Customs Examination (if required).
• 5. Shipment & filing Export General Manifest.

12. Case Law Examples
• Garden Silk Mills v. Union of India (1999) – Import taxable at customs
barrier.
• Tirupati Udyog v. UOI (2011) – DTA to SEZ supplies not export duty liable.

13. Key Takeaways
• Imports → Bill of Entry, assessment, duty payment.
• Exports → Shipping Bill, entry outwards, shipment.
• Duty drawbacks and exemptions incentivize exports.
• EOUs/SEZs get special benefits.

14. References
• Customs Act, 1962.
• ICAI CMA Intermediate Notes (Indirect Taxation).
• CBIC Circulars & Notifications.