Flyjac - Karthik s

7/27/2019 Flyjac - Karthik s

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CUSTOMS CLEARANCE IN EXPORTS

CLEARANCE OF GOODS BY CUSTOMS AUTHORITIES

Generally the central excise duties are payable on

manufactured goods at the time of their removal from the

factory premises. However goods exported are exempted from

paying central excise duties. The following are two ways in

which goods meant for export can be cleared.

1.Pay and Refund Method

Under this method, the exporter pays the excise duty at

the time removal of goods from the factor and when the goods

are exported, claims of the same when excise duty is paid the

exporter sends the central excise authorities five copies of AR4

form, three copies of the gate pass, 1 (GP1) form Excise

Inspection then visit the factory and insect the goods on the

basis of the AR4 and GP1 form. If the inspectors are satisfied,

AR4 and GP1 form and the first and second of the AR4 form are

returned to the exporter.

2.Clearance Under Bond

Under this method, the exporter enters into a bond

with the collector of central excise. The bond is executed for a

sum equal to the amount of duty that would have been payable

on the goods.


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Organisation structure

DEPARTMENTS OPERATING UNDER MSA

1) Sales: Under this department the sales activities are

carried on and this department mainly deals with leasing of

containers to various parties who needs it.

2) Marketing: All the marketing activities are controlled

under the guidance of this department.

3) Accounts: All the MSAs accounting works are being

carried on by this department.

RegionalManager

Operatingstock

FinanceManager

Sales

Manager

Operational

Executive

Assistant

Manager

A/Cs

Deputy

Manager

Assistant

Manager

Operating

Assistant

Executive

of A/Cs

Document

Executive

Operating stockFinance Manager

Assistant

Manager

A/Cs

Manager


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4) Administration: The administration and over all control of

various department is being done through this department.

The main decision making activities is also done by

administrative department.

5) Document stock operation: This department under MSA

looks after all the documentation work needed at the time

of exports and imports.

Handling of Export Document

The following are the main export documents handled by

the company.

a)Letter of Credit :

Letter of credit is a document issued by the importers

bank in favour of the exporter giving him the authority to draw

bills up to a particular amount covering a specified shipment of

goods and assuring him of payment against the delivery of

shipping documents. This is a written document under taken

issued by buyers bank agreeing to pay a sum of money within a

specified period.

b) Export order :

An order is a commercial transaction which is not only

important to the exporter respective countries, since it affects

the balance of payment position of both the countries. It is,

therefore, not just a matter of product, manufacturing,


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packaging, shipment and payment but also one of the concerns

to licensing authorities, exchange control authorities and banks

dealing in export trade.

c) Bill of Lading :

Bill of lading is a document issued by the Shipping

Company or its agent acknowledging the receipt of goods

mentioned in the bill for shipment on board the vessel, and

undertaking to deliver the goods in the like order and condition

as received to the consignee or his order of assignee, provided

the freight and other charges as specified in the Bill of Lading

have been duly paid. There are two types. A straight B/L is

nonnegotiable. A negotiable or shippers order B/L can be

bought, sold on traded while goods for L/C transactions.

d)Certificate Of Origin :

This certificate is issued by the chamber of commerce

stating the goods being exporter are of Indian origin. Certain

nations require a signed statement as to the origin of the export

item.

e) Shipping Bill :

Shipping Bill is an important document required by the

customs authorities for allowing shipment. It is prepared by the


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exporter and it contains the name of vessel, master or agents,

flag, port at which goods are to be discharged, country of final

destination, exporter name and address, details about packages,

number and description of goods, marks and numbers, quality,

details of each case, FOB price, real value as defined in the Sea

customs Act, whether Indian or Foreign merchandise to be re-

exported, total number of packages with total weight and value

and the name and address of the importer.

f) Order of Acceptance :

The Order Acceptance is prepared by the exporter

confirming the acceptance of order placed by the importer.

Under this document he commits the shipment of goods covered

at the agreed price during a specified time. Sometimes theexporter needs a copy of his order of acceptance signed by the

importer. The order acceptance normally covers the name and

address of the indenter, name and address of the consignee,

port of shipment, country of final destination, the description of

goods, quantity, price each and total amount of the order, terms

of delivery, details of freight and insurance, mode of transport,

packing and marking details, terms of payment etc.

g) Insurance certificate :


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In the international trade, which the goods are in transit,

they are exposed to marine perils, Marine Insurance is intended

to protect the insured against the risk of loss or damage to

goods in transit due to marine perils. Marine Insurance Policy is a

contract where by the insurer in consideration of a payment on

premium by the insured agrees to indemnify the latter against

loss incurred by him in respect of goods exposed to perils of the

sea. If the seller provides insurance, the insurance certificate

states the types and amount of coverage. The instrument is

negotiable

Handling of import documents

The following are the main import documents handled by

the company.

a) Import Order

An order is a commercial transaction which is not

only important to the importer. But is also of concern to their

respective countries, since it affects the balance of payment


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position of both the countries. Exchange control authorities and

banks dealing in import trade.

b) Commercial Invoice :

An invoice is a document which contains the detailed

description of goods consigned, the consignors name,

consignees name, name of the steamer, number and date of bill

of lading, date of sailing, order of acceptance or contract

number and date, country of origin, marks and number of

packages, special markings, if any, quantity shipped, selling

price to the buyer for each unit and total price, terms of

payment, terms of sale amount of freight and insurance.

Commercial invoice is a prima facie evidence of the

contract of sale and purchase. The invoice should be strictly in

accordance with the contract of sale and should be on the paper

of seller and must be signed by the exporter or by the personacting on his behalf.

c) Bill of Exchange / Draft :

Bill of Exchange is also known as Draft. A bill of exchange

is an instrument in writing containing an unconditional order,

signed by the maker directing a certain person to pay a certain


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sum of money only to or to the of a person or to the bearer of

the instrument.

d) Packing List :

A packing list contains the date of packing, connection

invoice number, order number details of shipping such as the

name of streamer, bill of lading number and date of sailing, case

number to which the list / note relates, the details of goods such

as quantity, weight etc.

Importing Countries

CHINA

JAPAN

SOUTH AFRICA

U.S.A

UAE

OMAN

QATAR

Exporting Countries

CHINA

U.K


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U.S.A

FRANCE

SINGAPORE

OMAN

UAE

QATAR

Major Exporting Goods

The major exporting goods are

GARMENTS

MACHINERIES

HANDICRAFTS

SPICES

FOOD STUFFS

Major Importing Goods

The major importing goods are

ELECTRONIC ITEMS

HOME APPLIANCES


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MACHINERIES

HARD WARES

SCRAPS

Mode of payments

The most commonly known trade terms are INCOterms,

which are published by the International Chamber of Commerce.

These are often identical in form to domestic terms.

FOB

A trade term requiring the seller to deliver goods on board

a vessel designated by the buyer. The seller fulfills its

obligations to deliver when the goods have passed over the

ship's rail.

"Free on Board" means that the sellerdelivers when thegoods pass the ship's rail at the named port of shipment. This

means that the buyer has to bear all costs and risks of loss of or

damage to the goods from that point. The FOB term requires the

seller to clear the goods for export. This term can be used only

for sea or inland waterwaytransport. If the parties do not intend

to deliver the goods across the ships rail, the FCA term should

be used.

When used in trade terms, the word "free" means the

seller has an obligation to deliver goods to a named place for

transfer to a carrier. Contracts involving international
http://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Delivery_(commerce)http://en.wikipedia.org/wiki/Goodshttp://en.wikipedia.org/wiki/Porthttp://en.wikipedia.org/wiki/Buyerhttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Goodshttp://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Customs_clearancehttp://en.wikipedia.org/wiki/Exporthttp://en.wikipedia.org/wiki/Sea_freighthttp://en.wikipedia.org/wiki/Inland_waterwayhttp://en.wikipedia.org/wiki/Transporthttp://en.wikipedia.org/wiki/Delivery_(commerce)http://en.wikipedia.org/wiki/Goodshttp://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Delivery_(commerce)http://en.wikipedia.org/wiki/Goodshttp://en.wikipedia.org/wiki/Porthttp://en.wikipedia.org/wiki/Buyerhttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Goodshttp://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Customs_clearancehttp://en.wikipedia.org/wiki/Exporthttp://en.wikipedia.org/wiki/Sea_freighthttp://en.wikipedia.org/wiki/Inland_waterwayhttp://en.wikipedia.org/wiki/Transporthttp://en.wikipedia.org/wiki/Delivery_(commerce)http://en.wikipedia.org/wiki/Goods


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transportation often contain abbreviated trade terms that

describe matters such as the time and place of delivery and

payment, when the risk of loss shifts from the seller to the

buyer, as well as who pays the costs of freight and insurance.

CIF

A trade term requiring the seller to arrange for the

carriage of goods by sea to a port of destination, and provide the

buyer with the documents necessary to obtain the goods from

the carrier. Cost, Insurance and Freight means that the sellerdelivers when the goods pass the ships rail in the port of

shipment.

The seller must pay the costs and freight necessary to

bring the goods to the named port ofdestination BUT the risk of

loss of or damage to the goods, as well as any additional costs

due to events occurring after the time of delivery, are

transferred from the seller to the buyer. However, in CIF the

seller also has to procure marine insurance against the buyers

risk of loss of or damage to the goods during the carriage.

Consequently, the seller contracts for insurance and pays

the insurance premium. The buyer should note that under the

CIF term the seller is required to obtain insurance only on

minimum cover. Should the buyer wish to have the protection of
http://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Delivery_(commerce)http://en.wikipedia.org/wiki/Goodshttp://en.wikipedia.org/wiki/Porthttp://en.wikipedia.org/wiki/Shipmenthttp://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Freighthttp://en.wikipedia.org/wiki/Goodshttp://en.wikipedia.org/wiki/Porthttp://en.wikipedia.org/wiki/Destinationhttp://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Goodshttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Delivery_(commerce)http://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Buyerhttp://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Marine_insurancehttp://en.wikipedia.org/wiki/Buyerhttp://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Goodshttp://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Marine_insurancehttp://en.wikipedia.org/wiki/Insurance_premiumhttp://en.wikipedia.org/wiki/Buyerhttp://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Marine_insurancehttp://en.wikipedia.org/wiki/Buyerhttp://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Delivery_(commerce)http://en.wikipedia.org/wiki/Goodshttp://en.wikipedia.org/wiki/Porthttp://en.wikipedia.org/wiki/Shipmenthttp://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Freighthttp://en.wikipedia.org/wiki/Goodshttp://en.wikipedia.org/wiki/Porthttp://en.wikipedia.org/wiki/Destinationhttp://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Goodshttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Delivery_(commerce)http://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Buyerhttp://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Marine_insurancehttp://en.wikipedia.org/wiki/Buyerhttp://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Goodshttp://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Marine_insurancehttp://en.wikipedia.org/wiki/Insurance_premiumhttp://en.wikipedia.org/wiki/Buyerhttp://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Marine_insurancehttp://en.wikipedia.org/wiki/Buyer


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greater cover, he would either need to agree as much expressly

with the seller or to make his own extra insurance

arrangements.

The CIF term requires the seller to clear the goods for

export.

This term can be used only for sea and inland waterway

transport. If the parties do not intend to deliver the goods across

the ships rail, the CIP term should be used.

C&F

Cost and Freight means that the seller delivers when the

goods pass the ships rail in the port of shipment. The seller

must pay the costs and freight necessary to bring the goods to

the named port of destination BUT the risk of loss of or damage

to the goods, as well as any additional costs due to events

occurring after the time of delivery, are transferred from the

seller to the buyer.
http://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Marine_insurancehttp://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Customs_clearancehttp://en.wikipedia.org/wiki/Exporthttp://en.wikipedia.org/wiki/Sea_freighthttp://en.wikipedia.org/wiki/Inland_waterwayhttp://en.wikipedia.org/wiki/Transporthttp://en.wikipedia.org/wiki/Delivery_(commerce)http://en.wikipedia.org/wiki/Goodshttp://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Marine_insurancehttp://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Customs_clearancehttp://en.wikipedia.org/wiki/Exporthttp://en.wikipedia.org/wiki/Sea_freighthttp://en.wikipedia.org/wiki/Inland_waterwayhttp://en.wikipedia.org/wiki/Transporthttp://en.wikipedia.org/wiki/Delivery_(commerce)http://en.wikipedia.org/wiki/Goods

Documents

Flyjac - Karthik s