Air Imports process:

Majority of the imports & Exports are done through Sea only because it is the cheapest way of transportation and coming to Air its very costly compared to Sea. Firstly the goods are consolidated because there are many customers of same origin or many goods are to be sent to the same origin by different suppliers. Air Imports are done when there is a customer who wants the product urgent or it is perishable in nature. Our company is one of the Indias leading Freight forwarding company and having branches all over the world. For the Air Import our agent should be there in abroad also to continue our forwarding. Firstly the MAWB (Master Airway Bill) is to be prepared it will be between the Agent abroad, agent in destination and airlines people. Based on the HAWBs the MAWB is prepared and the No. of goods are entered in the MAWB also.

After this a pre-alert will be sent by our agent that xxxx shipment of order number RES///YYY///1234 is sent to the airlines and the MAWB, HAWB & Flight no. will be sent by him via mail. We have forward the same mail to the consignee also according the given consignee details. We have to check with the customs authority be using ICEGATE which is a base to go to the customs online the while entering all the details like MAWB No., port of origin, port of destination, total packages, gross weight, shipment type, & item description. Then by considering all these items the customs will generate a code that is known as IGM No. After this we have to prepare a CAN (Cargo Arrival Notice) which plays a major role it consists of Freight costs, FSC, Security charges etc. Before the flight lands we have to check in the online about the flight landing details. After the flight lands in the port the airlines authority will hand over the goods to the customs authorities along with the Doc. Then they will issue an Master D.O based on the MAWB from there they will hand over the goods to airport authorities there the airport authorities will segregate according to the MAWB already sent by our agent and the will be keeping in warehouse according to the nature of goods the continues number is given for the goods. Then the consignee CHA will come to us to take the D.O generated by us. By taking both D.Os, MAWB, HAWB, Invoice, Packing list then the goods should be examined under the supervision of customs authority, then the goods will be finally handover to the customer.

PROCEDURE TO APPLY IN ICE GATE: First we have to track the shipments and then we have to open the software to file the shipment in customs site that is ICE GATE. We have to note the job number. Then we have to enter the MAWB number, date, destination, No. of packages, qty. Then in the same way we have enter the details of consol HAWB. Then we have to open the check list in that type the job No. and check the shipment. Then it will give a message that your shipment is submitted. Then we have to select job & create the file of 1.5v Now we have to open the customs ICE GATE site (www.icegate.gov.in) We have to login and upload the file that you have saved previously and submit. Before the flight lands the airlines will issue the IGM number which is very important to know about our shipments.

Preparation of CAN: CAN means Cargo Arrival Notice one of the most important doc. Prepared by the freight forwarders the following are the contents in the CAN: Shipper Consignee Origin port Destination port MAWB No. HWAB No. IGM No/ Date Flight No/ Date Description of goods Weight No. of Pieces Freight charges (FSC+ SSC+ EXW+ Storage+ Screening) Destination charges D.O Fees Break Bulk Charges CC Fee The CC Fee is collected only on the resolution passed by the IATA(International Air Transport Authority) that the Charges Collect Fee should be min of 10 USD or 5% on the freight levied from the consignee. IMPORT CONSOLE: Import console means the process done between the origin airport to destination airport or from the shippers godown to airport. A person is appointed to look after all the things that should be taken care before the flight lands in the destination. IMPORT CHA: CHA means The Custom House Agent he clears the cargo from the customs on behalf of the consignee. He will file the bill of entry in ICE GATE after the flight lands only the authorized person can do this thing. We have to approach the AAI for location cum Forwarding slip. Then the goods are moved from location to Examination area. Then we have to approach the Apprising Officer along with the Docs. With the Bill of Entry then he will check the goods and send them to the Examination Officer. Then the E.O will again check the goods physically and get confirmed whether the goods are according to the HAWB or not. After getting it confirmed we have to pay the customs duty. Then they will issue the customs out charge order. Then we have to pay the AAI charges in the bank counter. After that they will issue the gate pass after handling the goods.

AIR EXPORT PROCESS:

A sales person of freight forwarding company approaches a person who is interested in export of his goods, or else the client may directly approaches the freight forwarding company. If the customer approves and gives business the companys sales person has to reproduce the details to his organization regarding the goods, export date, destination etc. After this, the freight forwarder will start negotiating with liner for the carriage of goods. Then the carrier will offer the rates for the freight forwarder, basing on his feasibility he will shift to another liner. If the customer is interested and is willing to go with the rate offered to him them he will forward his goods to freight forwarding agent. He will collect the goods from shippers warehouse to the consignees warehouse basing on the Terms Of Trade. The clear description should be given by the shipper then only freight forwarder will accept for export. To export any product from one country to another country there are certain rules that to export the goods they are: The exporter should have the PAN otherwise he have to get it from INCOME TAX office.

After acquiring PAN number we have to get the IEC code (Import Export code) from DGFT. Before acquiring the IEC code he can search for consignees and can get the purchase order number. Based on the purchase order the shipper will raise the invoice with the contents like

Purchase order number Invoice numb & date Shipper name & address Consignee name & address Description of goods No. of packages Gross weight Net weightPrice per unit

Shipper will hand over the invoice & packing list to the CHA. CHA file the invoice in customs ICE GATE by filing we will be getting the shipping bill number. Then after getting applied in ICE GATE the invoice & packing list along with the shipping bill number will be sent to the Freight Forwarders. First we have to do the air booking in which we will enter the no. of packages, weight, that are mentioned in the Invoice & Packing list. After getting the shipping bill number we have to prepare the HAWB and basing on HAWB we have to make a consolidated MAWB after this a consolidation manifest should be done. Simultaneously the space is also booked in the airlines through online or manually because only few carriers like EK, LH, CATHAY has the chance to book the space in online for rest of all the carriers booking should be done manually and the payment is done via cash. Then the THC/ TC (Terminal handling charges) has to be raised in order to enter the goods inside the airport. The CHA will have to fill the annexure C because it is ment for the registration of cargo into customs.Annexure C consists of the following: Airway bill details. No. of Packages Destination Details Invoice, Packing list & Shipping bill Checklist. After that the goods should be moved from shippers godown to cargo airport. Along with the docs. Like (Invoice, packing list & SDF for free shipment and invoice, packing list, order confirmation, annexure 3&4, & drawback Declaration) Then the goods are weighed and if only the goods weight & the weight mentioned in the AWB is tallied then we can close the MAWB. Then the goods are taken to Examination officer (E.O) he will examine the goods according to the given docs. Then he will check manually by selecting the packages randomly. After checking a report will be sent online to the Apprising officer.

Then based on the report given by the E.O, A.O will examine again and Apprising officer will be issuing the LEO (Let Export Order). After this the goods are taken to the customs bonded area and from there the goods are handed over to airlines authority along with necessary docs. From there the airlines will be taken goods & palletize them according to the destination places. The airway bill docs. has to be transferred to the respected carries. After handling the goods to the airlines then we will raise the CCL to the shipper. We have to follow the goods up to they have received by the agent in the overseas

Preparation of Debit/Credit Note: Shipper Consignee Origin port Destination port MAWB No. HWAB No. Shipping bill Number No. of Packages Description Airway bill charges AAI charges Documentation charges Transportation charges Handling charges Agency charges EDI charges Loading & Unloading charges Clearing charges Processing charges Miscellaneous charges Service Tax CHA services EDU CESS on CHA services High EDU CESS on CHA services

Practical Observations: According to the terms & conditions if the MAWB is prepaid and the HAWB is collect then we have to collect charges (airlines charges, freight charges etc) from our overseas agent. If both are prepaid then we have to collect charges from the shipper/ consignor/ exporter. If both are collect we have to collect the charges from our overseas agent. If it is direct shipment without the involvement of agent we have to collect all the charges from our overseas agent.

PROCEDURE OF TRANS- SHIPMENT: The flight lands in the destination airport then the airlines people will hand over the goods to the airport authority and they will segregate according to the given docs. Then the CHA will apply Bill of Entry then they will approach the customs people with necessary docs. Then the Apprising officer will check the HAWB numb. And No. of packages like that and he will check the goods and send the goods to the Examination Officer (E.O). Then the E.O will check the goods physically according to the given docs. Then if the packages doesnt match with the given docs. Then they wont accept to clear the shipment. Then we should send a letter to our agent, consignor and consignee that the goods are wrongly sent, then they will send a confirmation letter. We have to approach the banker for guarantee the shipment (it may be the consignee or consignor banker based on the mistake done). We have to file the ITSA/ ETSA (Import / Export Trans shipment Application). With the confirmation send by them and we have to add our confirmation, ITSA/ ETSA and banks guarantee letter, we have to approach the customs for getting permission to transship the cargo to the preferred destination. After getting customs approval we can move the cargo to the preferred destination. The process will be same as export like the preparation of Airway bill, and other charges should paid as same as normal export. After the shipment lands then the customs over there will issue a Landing remark certificate (it describes that the goods are landed safely without any damage). Then we have to approach the customs with that certificate for the cancelation of the bond, if not the bond will be running and we have to pay the interest to the bank.

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India Export Performance:

Year2003 - 20042004 20052005 - 20062006 - 20072007 20082008 - 20092009 - 2010

Value138541831422840346156663899689220711.39

Growth rate39%32%25%52%93%50%121.40%

Export: A function of international trade whereby goods produced in one country are shipped to another country for future sale or trade. Exports are exchanged for other products or services. Exports are one of the oldest forms of economic transfer and occur on a large scale between nations that have fewer restrictions on trade. Exports goods helps an economy to grow by selling more overall goods and services.

STEPS INVOLVED IN EXPORT PROCESS: Step 1: In the case of first time exporters importers, they need to apply to the Director General of Foreign Trade (DGFT) regional office for getting Importer-Exporter Code (IEC) Number. Step 2 : The exporter has to register with the concerned export promotion council in order to obtain various permissible benefits given by the government. ,they need to get registered with sales tax office, and even Export Credit Guarantee Corporation. Step 3: The exporter can now go in for procuring orders, by first sending a sample, if required. The importer sends a purchase order once both exporter and importer have agreed upon the terms and conditions of the contract like pricing, documents, freight charges, currency etc. Step 4: With export order in hand, the exporter starts manufacturing goods or buying them from other manufacturers. Step 5: The exporter makes arrangements for quality control and obtains a certificate confirming the quality of the goods from inspector of quality control. Step 6: Exportables are then dispatched to ports/airports for transit. Step 7: The export firm has to apply to an insurance company for marine/air insurance cover.(The exporter asks the importer to take marine/ air insurance under cost and freight , free on board etc., terms of contract.) Step 8: The exporter contacts the clearing and forwarding agent (C & F) for storing the goods in warehouses. A document called Shipping Bill, required for allowing shipment by Customs Authority is presented by the forwarding agent. Step 9: Once the goods are loaded into the ship ,a receipt called Mates Receipt is issued by the captain to the ship superintendent of the port. Step 10: The superintendent calculates port charges and handover to the exporter /C&F agent. Step 11: After making the port payments , the C&F agent or exporter gets the Bills of Lading or Airway Bill from the official agent of the shipping company or the airline Step 12 : The exporter applies to the relevant Chamber of Commerce for obtaining Certificate of Origin, stating that the goods originated from India. Step 13: The exporter sends a set of documents to the importers, stating the date of shipment, name of vessel ,etc. Step 14: Within 21 days after shipment the exporter must present all the documents at his bank which scrutinizes these documents against the original letter of credit /purchase order. Step 15: The exporters bank sends these documents to the importers bank which should make the payment on of before the due date.Requirements of Form 13: Covering letter. Liner booking sheet. Checklist copy. Then he will take the same empty container to the shipper for the stuffing of goods into the container. Then he will take the cargo to the CFS for clearance. The following are the docs. That are to be submitted for the examination of cargo if the stuffing is done in the warehouse & Factory Stuffing. Invoice. Packing list. Shipping bill checklist.Types of Shipments:The following are the types of shipments. FCL. LCL. Break Bulk. Etc..FCL Full Container Load: A Full Container Load is a standard (20 or 40 ft length) depending on location of origin country, but sometimes it is standard container that is stuffed (loaded) and un-stuffed (discharged) under the risk and account of one shipper and only one consignee. It means whole container is intended for one consignee. FCL container shipment attracts lowe freight rates than an equivalent weight of Cargo in Bulk. The loading reaches its allowable maximum weight or full measurement. LCL Less than Container load: LCL means there are more company goods than one company say for ex: in FCL shipment only one companys goods will be transported in the total container. This LCL concept is introduced because to earn more profits and the shippers those who have lesser quantity to export they can use this LCL type of export. The liner will wait until they have got the enough of orders to fill a 20 foot container. The companies will have a chain link to collect the cargo and make it as a consolidated container.Break Bulk: When your cargo doesnt fit into the regular container then we have to sent the cargo in a break bulk container which is having a larger dimension. This container having more weight capacity. The items having irregular shape we can use this break bulk container. For this type of containers, the equipments for loading or unloading comprises only basic equipments such as overhead cranes, ship side cranes & fork lifts.

Flow Chart for Sea Export Operations

Sea Exports operations: The sea exports operations has certain functional and operational procedures, filing of documents and getting the forwarding and clearance for the cargo. where Initially the shipper sends the scanned copy of invoice and packing list through mail. And self declaration form and order copy is attached to the file if sent. When the booking is done the empty plot is allotted where the container will be placed (loading point). The software used in DACHSER INDIA PVT. LTD. Is E-Customs which is commercially called in the market as 4s, in this the details like job no. shipping bill no. and all other informations that is mention in the invoice and the packing list of the shipment and it is saved. New page is opened from the options in the main page informations like shipper name, address and consignee details. Cargo lists description, number of packages, and value of the cargo. And save the above details. Then the second step is to get in to the general info page, where informations about the destination port, place of delivery, Date and time of the cargo reaching the port of destination. In the invoice menu, invoice no. Invoice value, currency involved, exchange rate, terms of invoice, unit value. Product details, HS code (Harmonized System Code) RITC & ITCHS code to know the tariffs from the book that has the classifications of Export and Imports items with customs Act 1964. After filing this all the details and datas will be saved and this will be stored in the data base for later review purpose. The Government of India is maintaining the webpage named ICE GATE where we can check the status of the shipment. After the functional procedures and formalities of the customs, shipping bill can be retrieved, and also the shipping bill can be tracked when it is under the customs house. Whether Appraising Officer, Deputy Commissioner assessed the cargo. At the same time the clearance will be made ready to clear the cargo. The export cargoes will come from factory where in case of FCL (Full Container Load) the cargo will be loaded in the factory as such. LCL (Less Container Load) will be brought to the CFS / Ware house and then stuffed. The assessment is done checking and verifying the documents for the values, pricing. After which the Examination Officer (EO), Appraisal Officer (AO), Preventive Officer (PO) have their role in the warehouse/ container freight station and port, PO will be in gate to check the cargo and in the cargo inside the premises. Then AO will verify the documents and give the examination order, the cargo is been examined by the examination officer then it is registered in the system and the report is made ready. Examination will be done physically for marks, cargo numbers, etc Appraising Officer will issue the Let Export Officer (LEO) and all the signatures and attestations is made, CFS formalities and payments are done finally the forwarder will stuff the cargo in the container. And the Liner and Customs will seal the container and it will be out to the port. The Liner will issue the form: 13 (port permission). The port permission will be given to the liner by CCT (Chennai Container Terminal)/ CCTPL (Chennai Container Terminal Private Limited) which is undertaken by DP world pvt.ltd./ port of Singapore authority and then it will be given to the forwarder the copy will given to transport person to make sure that the cargo container getting in the port premises. After which the cargo will be loaded and placed onboard the vessel.

House Bill of Lading: Original Exchange control copy (shipping bill). House Bill of Lading is one which is given by liner (container incharge) regarding shipment inside the container. HBL should be created by ourselves in our software and we release the HBL. According to their terms & conditions (Shipper & Consignee) they will be telling us whether to release the cargo or only after surrendering the originals to the freight forwarders, we will send the message to our overseas agent to release the cargo at the destination.Master Bill of Lading: MBL is one which is given by the vessel owner (ship incharge) regarding container inside the vessel (container list) After completion of HBL, We have to send the details to the Liner then basing on the details send by us they will be sending us a MBL draft and we have to cross check the details which they have send us. If the draft is ok then we can request for B/L. MBL instruction should be given by us to the LINER, then he will be issuing the MBL draft. We have to go through it for corrections. If all the things are ok then ask them for MBL. We have to pay the freight to the liner we have to send the payment details and ask for the SEAWAY bill.Surrender B/L: Surrender B/L is a bill issued by the carrier after surrendering the OBL. Then the carrier will send a message to his overseas agent that to release the cargo without demanding for OBL. Sea way Bill: This is a bill given inspite of OBL based on this document the consignee can clear the shipment without the OBL. Sea Way bill is a receipt given by the liner itself. If the SeaWay bill is there is no need of having a original BL for releasing the cargo.

Switch B/L: Switch Bill of Lading are a second set of bill of lading issued by the carrier in substitution for the set issued at the time of shipment. The agent who is asked to produce the second set is often not at the load port. The holder of the bills may decide, for one reason or another, that the first set of bills is unsuitable, and the carrier is put under commercial pressure to issue switch bills to satisfy his new requirements. SEA IMPORT: Imports are an inflow of goods from foreign nations into a particular nation. This process is very essential for the economic growth and development of a country, as foreign investments and currency come into a nation. Sea imports have minimum documentations and operations are not that tedious. In Sea Imports the process of exports will be carried out by persons(agents) in the other nation when the goods get on board of the sealiner, the process of imports begin. Historical data for India Imports:

IMPORT PROCEDURES Once we receive all mandatory documents from importer we could start the job First task is to obtain Vessel details from steamer agents on receipt of the same check list is prepared threw DACHSER E-CUSTOMS software Once the check list is prepared the same is send to IMPORTER for verification and after prior approval is received we could FILE B/E. On the Filing of B/E an number gets generated .if the importer is an ACP CLIENT (ACCREDITED CLIENT PROGRAMME) then we could expect the bill to assesses under RMS (RISK MANAGEMENT SYSTEM) If the same assessed under OPEN then that particular shipment bill has to pass on to customs assessment here customs officials would verify the value & item description &Write up and all mandatory documents once the same is checked then he would release the bill. We could take print out of the bill and duty could be paid If the bill is under RMS then the procedure would be as: Obtain endorsement from CFS Obtain A/O (APPRAISING OFFICER) signature register the bill with E/O (EXAMINATION OFFICER) Finally we could obtain PRINT from A/O Then do billing in CFS and match the tally sheet in cfs last stage cargo could be loaded in to truck and dispatched to customers premisesIf the bill is under OPEN then below is the Procedure: Obtain the signature from A/O in B/E and register the bill with E/O Obtain open chit to open the container and to do physical examination of the cargo Next the bill is taken to E/O to obtain report this would be forwarded to A/O Finally A/O would give print out for the consignment Then do billing in CFS and match the tally sheet in cfs last stage cargo could be loaded in to truck and dispatched to customers premises.

SEA IMPORTS FORWARDING: Receive the documents from Overseas Agents / Branch Offices Checking the documents for correctness, in case of discrepancies, message needs to be sent to Overseas Office for correct set of document Once, the correct set of documents received, the same will be forwarded to carrier / Co-loader to file the manifest on actual consignee name. Received the pre-alert documents will be punched in shatranj Regular follow ups with carrier /co-loader for vessels arrival details Once, vessel connection secured, information will be punched in shatranj package with information of feeder vessel Invoice will be raised to customers as per information received from our CS and our origin routed shipments, sales invoice will be raised as per our agreed tariff and same will be dispatched to customers through courier In case of consol container, we need to obtain main line number from carrier and based on it we have to file the sub line numbers with customs as per customs prescribed format. In case of shipment have been co loaded through other consolidator, we need to check with them for details of IGM number, Line number, CFS movement and De-stuffing date of the container. With regard to our consol container, once the sub line number has been filled, we need to arrange the mail line delivery order from the carrier for De-stuffing of the container. We need to monitor /push CFS to move the container to CFS on priority basis Once the container moved to CFS, De-stuffing will be taken place in the presence of our representative and our nominated surveyor After the completion of De-stuffing, our surveyor will provide us the details of the cargo which is loaded according to the details of the cargo condition. In case of any damage, short landing, excess landing, we need to keep informing our customer service, concerned sales person, customer and overseas agent immediately In case of short landing shipment, we need to check with our overseas agent as to know the missing cargo status to keep inform our customer In case of excess landed cargo, we need to Re-export the cargo to same origin/ to different port as per the direction received from our overseas agent In case of damage, customer will claim the damage cargo loss either through insurance company or from the service provided by means of filing the claim notice After the completion of de-stuffing, consignee or consignees nominated Customs broker will approach our office for taking the delivery order Our d/o counter will issue the delivery order upon the collection of payment along with correct set of documents Once the delivery order has been issued, remittance documents will be sent to CCO office within next 7 working days from date of d/o issued In Case any shipment which is un cleared for more than 15 days, We need to send our first reminder notice to customer .Second reminder notice will follow after 30 days and final reminder notice will be sent to customer after 60 days of period Uncleared shipments status needs to be informed to our overseas agents also to seek the assistance of shippers to push consignee to clear the shipment as early as possible And in the event of consignee is not clearing the shipment within the stipulated period ,we can debit the cost involved to our overseas agent as per our agreement

Documents required for import clearance: Bill of Lading This document gives us the nature of shipment Invoice-This document gives us the value of the shipment Packing list- This document gives us package details of the cargo Certificate of origin: This document gives us the origin of cargo Write up: This document gives us the detailed product of description Catalogue: T his document gives us the photographic explanation of the cargo IEC: Import Export Code DUTY PAYMENT Once we receive print of the bill customs duty is to be paid .We have attached separate sheet for a clear explanation. There are around 17 banks nominated by government of India through which duty could be paid onlineCFS EXAMINATION Once duty is paid bill has to be taken to CFS for physical examination of the cargo there are around 28 CFS in and around Chennai Customs officials would verify and do physical examination of the cargo.BILLING PART Once the cargo is dispatched billing part is the next process on collection of all documents like CFS RECEIPT & D/O RECEIPT & TRANSPORT DOCUMENT billing job starts .generally lead time taken for billing is around 02 days on receipt of all documentsICEGATE:

The declarations (Bill of Entry, Shipping Bills and Consol, IGM, EGM) can be filed remotely using EDI technology through the Indian Customs & Excise Gateway (ICEGATE). The users can prepare the declarations from their in-house application as per the format specified by customs and upload through ICEGATE. NIC provides software for preparation of Bill of Entry, Shipping Bill and Consol Manifest documents which can be freely downloaded from htpp://ices.nic.in/ by the trading partners after registration. The CHA/Importers/Exporters requires registration with ICEGATE (http://icegate.gov.in) before submitting the declarations in EDI format. The ICEGATE ID provided by ICEGATE is used to login to the ICEGATE portal for submission of messages. The acknowledgement to the declarations are also forwarded to the registered e-mail of the user.

ICES:

The declarations submitted through Service Centre or ICEGATE are moved to ICES for validation and further processing. If no error is found, Bill of entry number/shipping bill number is assigned and information is forwarded to ICEGATE. If errors are found during validation, errors are intimated. The SB/BE No. or Error reports are integrated with the portal for view by the user after login and forwarded as an e-mail attachment.DOCUMENTS DISPATCH Once the billing part is completed our last procedure is dispatch .our dispatch department verifies all documents given below are the documents to be dispatched to our customers CFS RECEIPT DELIVERY ORDER TRANSPORT BILL B/E & TR6 CHALAN (ORIGINAL) INVOICE & B/L COPY

IMPORT UNDER LOWER RATE OF DUTY: There are two types of Imports under the lower rate of duty. They are: Project Imports ATA Carnet

PROJECT IMPORTS: This type of Imports is normally allowed on Payment of Lower Import duties for those who would like to setup/ expand the manufacturing activity. Unlike EPCG, project. Imports dont need commitment of export volumes ATA CARNET: This type of benefits is allowed for temporary imports against carnet issued by the origin country. Imports are allowed normally to those who participate in exhibition/ sales promotion. The Importer needs to give an undertaking. These are allowed for Import without payment of import duty with a condition that it should be exported with in specified time frame. DOCUMENT REQUIRED FOR ATA CARNET CLEARANCE ATA CARNET CERTIFICATE. WAYBILL .( MAWB/HAWB/BL) IMPORT INVOICE & PACKING LIST. CARGO ARRIVAL NOTICE. AUTHORITY LETTER TO CHA ADDRESSED TO CUSTOMS.

REGULAR IMPORTS:

HOME CONSUMPTION Most usual way of Imports where-in the Importer presents documents to the customs, pays duty. As per prescribed tariff and clear the goods, either for captive consumption or for trading purposes. BOND & EX-BOND This is a type of Import where normally Importer undertakes to Import in Bulk where he gets qty discounts & Ex-Bonds (Take goods out of Bonded Warehouse) Partial Quantities as and when required after payment of customs Import duties. This allows Importer to streamline Hiscash flow. As duties are paid only for quantities Ex-Bonded. This process also helps the Importer /Trader the much needed JIT supply. SVB IMPORTS: Whenever there are Imports into India where both Exporter & Importer being related special valuation branch (SVB) would monitor transactions. The SVB cell looks into transfer pricing policy. Registration with customs are mandatory. Documents assessed under this registration normally are assessed provisionally with an extra 1% deposit which are refundable on finalization of the screening of rates etc.

HIGH SEA SALE: This is a process where Importer Imports the goods in Bulk & Sells it to other parties on high seas i.e. before the ships arrives into the destination port, the ultimate buyer complets all customs formalities and clears the shipment. Goods can be sold on high seas partly to one or many parties under split bill of lading. THIRD PARTY IMPORT: This is a type of import where the original importer imports the goods and sells it to ultimate buyer at the destination before clearance but after arrival of the shipment (After endorsement) The ultimate buyer completes all customs formalities by himself. All Import benefits are availed by the ultimate buyer.RE-IMPORT: These type of imports are allowed for exporting the defective and re-import the same (return after repair) without payment of duty. Re-import of goods under nil duty can be availed if defective goods are exported within 6 months from the date of imports and the goods identified are same as the ones exported.

EXPORT IMPORT DOCUMENTATION Proforma Invoice: Proforma Invoice, as the name suggests ,is a proforma of the invoice. It is prepared by an exporter and sent to the importer for necessary acceptance. It suggests to a buyer what the actual invoice would look like and is sent to him when he is ready to purchase the goods. Packing List: This statement gives the packing details of goods in a prescribed format. It is a very useful document for customs at the time of examination and for warehouse keeper of the buyer to maintain a record of inventory and to effect delivery. Commercial Invoice : An invoice is very important as it contains the names of the exporter, importer, and the consignee, and the description of goods. It has to be signed by the exporter. Other documents are prepared by deriving information from the invoice. It is required to be presented before different authorities for different purposes. Certificate of Origin : This certificate issued by the local Chamber of Commerce indicates that the goods, which are being exported, are actually manufactured in a specific country mentioned therein. It is sent by the exporter to the importer and is useful for the clearance of the goods from the customs authority of the importing country. Generalized System of Preference Certificate of Origin : It indicates that the goods being exported have originated/ manufactured in a particular country . country and is mainly useful for taking advantage of a preferential duty concession ,if available. It is issued by government-authorized agencies like The Directorate General of Foreign Trade and its regional offices, Development Commissioners, Export Promotion Councils etc.

Shipping Bill/Bill of Entry : It is a requisite for seeking the permission of customs to export goods .It contains a description of export goods by sea/air. It contains a description of export goods, number and kind of packages, shipping marks, and number numbers, value of goods, the name of the vessel, the country of destination ,etc. On the other hand, importers have to submit copies of document called Bill of Entry for customs clearance.Later, a copy has to be given to the bank for verification. ARE-1 Form : This form is an application for the removal of excisable goods from the factory premises for export purposes. The ARE-1 form has multiple copies which are distributed to different authorities, including Customs, Range office of Excise, Refund office of Excise , etc. Exchange Declaration Form (GR/SDF Form): The RBI has prescribed has prescribed a GR form (SDF) , a PP form, and SOFTEX forms to declare the export transactions. The GR form contains : a) Name and address of the exporter and description of goods. b) Name and address of the authorized dealer through whom proceeds of the exports have been or will be realized. c) Details of commission and discount due to foreign agent or buyer. d) The full export value, giving break up of FOB, Freight, Insurance, Discount , and Commission ,etc. Bills of Exchange: It is an instrument in writing, containing an order ,signed by the maker , directing a certain person to pay a certain sum of money only to the order of a person to the bearer of the instrument. It is commonly known as a draft. Inspection Certificate: It is required by some importers and countries in order to get the specifications of the goods shipped attested. The attestation is usually performed by a government agency or by independent testing organizations.

Bill of Lading: This document is issued by the shipping company acknowledging the receipt of the goods mentioned in the bill, for shipment on board of the vessel. The B/L is the legal document to be referred in case of any dispute over the shipment. It contains : The shipping companys name and address The consignees name and address The port of loading and port of discharge Shipping marks and particulars Number of packages and the goods Gross weight and net weight Freight details and name of the vessel Signature of the shipping companys agent Airway Bill This receipt issued by an airlines company or its agent for carriage of goods is a contract between the owner of the goods and the carrier. It should indicate freight pre-paid or freight to collect. The first three digits of the Airway Bill Number represents the code, which identifies the carrier. Insurance Certificate: This document ,obtained from the freight forwarder , is used to assure the consignee that insurance will cover the loss or damage to the cargo during transit (marine/air insurance). Consular Invoice: This invoice is needed to be submitted for certification to the embassy of the country concerned .Its main purpose is to enable the importers country to collect accurate and authenticated information about the value, volume, quantity, source etc. of the import for assessing import duties and for statistical purposes. It helps the importer to get goods cleared through customs without any undue delay. Customs Examination of Export Cargo: Customs officer may verify the quantity of goods actually received and enter into the system and thereafter mark the Electronic shipping bill and also handover all the original documents to the dock appraiser of the dock who may assign customs officer for examination and intimate officers name and packages to be examined.

The Customs officer may inspect/examine the shipment along with Dock Appraiser. The customs officer enters the examination report in the system. Then marks the Electronic shipping Bill along with all original documents and check list to Dock Appraiser. If the dock appraiser is satisfied with documents, examination and system details, he may proceed to allow let export for the shipment. Shipping Bill generated by the system three copies, one as customs copy, one as exporter copy and exchange control copy, all the copies are signed by the Custom Officer and the Custom House Agent.

HS code: This is a code derived from the customs tariff book depending on the description of goods mentioned in invoice. HS code stands for Harmonized Commodity Description and Coding System . The HS code is used by Customs agencies world wide to assess duties, collect trade statistics and generally to control imports and exports. GR form:This is a certificate which acts as a guarantee to the exporter for getting his money from the importer. This certificate is issued by the bank GR form (Guaranteed Remittance Inward form). If we have uploaded in ICEGATE then the customs will give a exchange control copy on behalf of GR form. If the shipping Bill is done manually via SEZ online the GR form is generated. We will get the GR form from the RBI site.

Practical observations in CFS: Exports.Step 1: On receipt of cargo in Lorries after confirmation of S/B copy receipt the in pass will prepare by security staff and the vehicle will send to respective godown.Step 2: The go-down in-charge arranges to unload and makes entries in his register. After unloading the cargo he gives for the vehicle to go out, and he prepares carting order in the system and files the same in the godown file.Step 3: CHAs will come for inspection of cargo, matches the carting order with the S/B and takes the cargo admission from CFSs admission officer. After that the P.O will verify the marks & nos of the cargo before registration.Step 4: Customs E.O will register the S/B in the system and go to respective go downs for inspection of cargo.Step 5: After due inspection and let export will be given by both A.O and E.O the CHA takes permission from P.O for stuffing the container. Then the cargo is duly stuffed in the container in the presence of the surveyor and sealed by customs P.O.Step 6: The surveyor gives his tally sheet for stuffing of the container. With the help of tally sheet the gate pass is prepared in CFS office. After payment of CFS charges the gate pass is give to CHAs rep for getting P.Os sign.Step 7: After getting P.Os signature the vehicle is checked by security and allowed to move to port. The duty in charge in CFS office enters the container stuffing details in the register.Step 8: Weekly statement will be forwarded to D.C (docks) through P.O.STUFFING:There are two type of Stuffing the Cargo in Container: Ware House Stuffing Factory Stuffing Ware House Stuffing: We have to pick up the cargo separately and the container is bought to CFS separately. The physical examination is done before the stuffing of cargo. On the presence of the customs officials we can stuff the cargo into the container. Then the A.O will give the L.E.O & Shipping bill is also to be get printed. The same things should be submitted to the P.O for the stuffing of cargo, and the customs seal will be kept beside the shippers seal. Then he will give a container out permission along with date & time in gate pass. Then by taking these docs. The transporter will go to port & hand over the container. Then the port authority will stamp on the EIR (form 13) with the received seal. The transporter will submit the doc. To us. Original Exchange Control Copy will be with us and should submit to the shipper. The Exporter Copy is given to the liner after having a copy for our reference.

Factory Stuffing:If the stuffing is done at factory, it will undertaken by preview of central excise officers One seal will be of liners seal and another will be of shippers seal. We have to forward the endorsement to CFS to get the shipping bill. Then we have to approach preventive officer for getting the container out permission he will be issuing the gate Pass along with the date & time. By this we can take the container to port. But here if there is any problem with the packages they will taken out for examination and the shippers seal will be broken for the examination. Then after the cargo got cleared from the customs our person will take printout of shipping bill copies like EXPORTER COPY, EXCHANGE CONTROL COPY, and also form 13 and hand over it to the transporter.Customs Clearance for Import:Step 1 Documentation Filing Bill of Entry Tracking & Placing of ContainerStep 2 Inspection (Technical Write Up) Step 3 Assessment and Assessment Approval Assessment Approval Pre Audit (Concurrent Audit)Step 4 Payment of Customs Duty Release order Terminal handling & Gate PassStep 5 Transport to Consignees DoorPractical observations in CFS: ImportsStep 1: Trailers will come from the port on PNR movement are entered in register at the security gate. P.O will verify the time taken and seals of the container. After obtaining permission from the P.O gate pass will be prepared by security and import containers are offloaded in import yard.Step 2: After the container is offloaded in the yard import department enters the details in the register and issue gate out pass to the trailer.

Step 3: CHA will come with B/E for inspection import dept. prepares the open order sheet and CHA will get approval from A.O and P.O.Step 4: Container seal is verified & cut in the presence of P.O and CHAs representative. After the inspection done by A.O/E.O the containers are sealed. After completing all customs formalities and payment is done to CFS the gate pass will be issued to CHAs rep. for getting sign from P.O.Step 5: After P.O signed on the gate pass the import dept. allows the container to leave the CFS premises. Import dept. collects the D.O, copies of B/E, out of charge from A.O and file the bills for their records.Step 6: Daily and weekly reports on container arrivals and balance containers are being forwarded to DC (Docks).

Import Cargo Process in CFS:Bonding: Receipt to all documents. Confirm vessel details from liner and forward checklist to customs for approval. Once approval receive file warehouse B/E Once B/E number allotted Bill under customs assessment. Once customs formalities completed we have to process double duty bond in customs. Once double duty completed bill is moved to cfs examination. Once CFS examination process is completed obtain escort in customs. And container could be picked up only on the next day and bonded in concerned CFS.

Ex-Bond Formalities: Prior intimation to be given by customer wheather cargo to be taken in duty or scheme bills. On confirmation received firm customer with check list file BOE. Next assessment formalities to be completed in customs. Customer to pay duty and take delivery of the cargo.