UNIT 13 SHIPMENT OF EXPORT CARGO

Transcription

1 UNT 3 SHPMENT OF EXPORT CARGO ) Flng of documents wth tle customs authortes for checkng genuneness ot the transacto~ and for obtanng examnaton order; 2) Pay~e~t of port charges; Structure 3) Obtanng permsson of the shppng company to brng cargo nto the shpment shed; 3.0 Ol?jectves 4) Obtanng permsson from the shed superntendent for brngng the cargo nto the shpment shed; 3. ntroducton 3.2 Stages of Shpment 5) Arrangng for transport of cargo to move nto the shpment shed through Port Gate; 3.3 Central Excse Formaltes 3.3. Excse Rebate Polcy 6) Permsson of the Gate nspector to move cargo nto the port area; Procedural For~naltes 7) Unloadng of cargo n the shprrrent shed; 3.4 Customs Clearance Formaltes ' 3.4. Legal Framework 8) Exa~~~ato~ of cargo by the Customs Authortes and obtanng "Let Export" Order; CUS~OS Clearance Stages 9) Obtanttg "Let Shp" Order from the customs preventve offcer pror to loadng; Docu~nentary Rcqure~nents Procedural Formaltes 0) ssuance of Mate's Recept by the Master of the vessel. 3.5 Port Procedures : ) Obtanng "fact of shpment" certfcate from the Customs Preventve Offcer. 3.6 Let Us Sum Up 3.7 Key Words 3.8 Answers to Check Your Progress 3.3 CENTRAL EXCSE FORMALTES 3.9 Termnal Questons 3.0 OBJECTVES After studyng ths unt, you should be able to: e explan stages nvolved n shpment of goods e dscuss the polcy for central excse rebate on exports 0 descrbe procedural formaltes n clamng the central excse rebate 0 explan polcy, procedures and documentaton requrements n customs clearance of / 3.3. Excse Rebate Palcy export cargo, and 0 descrbe port procedures nvolved n tle shpment of export cargo. t s common practce all over the world that the exports are not to bear the burden of ndrect taxes. Export goods are ether exempted from such taxes or these taxes are ; refunded, f exempton s not possble. n nda, ndrect taxes are leved at the central, state and local levels on the nputs as well as on the tnal products. mport and excse j dutes leved on producton and packng nputs are refunded under the Drawback Rules. Central Excse dutes on the nputs used n manufacturng export products as well as on fnal export products s ether exempted through producton under bond or s refunded, atter export. The Government of nda has lad down procedure for ether gettng the duty 'reflnded or exempton from payment of duty. The scheme under whch the Central Excse exempton or refund s provded s popularly, known as Rebate of Central Excse. Ths scheme operates under secton 37 of the Central Excse and Salt Act, 944;as amended from tme to tme as well as the relevant Excse Rules. Accordng to the recent amendment n leu of the Ryles 2, 2A and 9A of the 3 NTRODUCTON Central Excse Rules, only one Rule 2 operates for exports unde clam for rebate of duty. You have learnt n unt the process, procedures and documentaton formaltes n prepar. ng goods for export as well as movement of goods from the nland producton centres to the port of loadng. At the port of loadng, two man formaltes are nvolved: ) Gettng permsson from the customs authortes to shp the goods; and ) Gettng permsson fro the port authortes to brng the cargo nto the shpment shed where the goods wll have to be brought for loadng nto the carrer. After the goods have been loaded, the exporter, through [he clearng and forwardng agent, wll proceed to obtan "fact of shpment" certfcaton on dfferent documents. Ths wll help the exporter n clamng solle of the major export ncentves. n ths unt, you wll learn varous stages nvolved n the shpment of goods and polcy and procedure of central excse formaltes, You wll also be acquanted wth tle for~naltes of custo~ns clearance. The rebate s granted on the duty leved at fnshed product and on nputs for ths fnshed product. Rule 3, 9BB of Central Excse Rules has been ntegrated nto Rule Prockdural Formattes Let us now dscuss varous procedural formaltes of excse rebate. Refund Procedure under Ruk 2: The authortes nvolved n the Rule are: ) Jursdctonsl Central Excse Authorty known as Central Excse Range Superntendent under whose jursdcton the manufacturng unt s located; ) Martme Central'Excse Authorty located at the port. Rebate may be ether clamed from Jursdctonal Assstant Collector of Central Excse or Martme collector. 3.2 STAGES OF SHPMENT The documents requred under Rule 2 are: ) lnvoces to be flled n four copes. For effectng shpment from ports n nda, the exporter, generally through hs clearng and ) AR 4AR 5 Form to be flled n sx copes.. forwardng agent, has to comply wth procedural formaltes of the customs and port authortes separately. n addton, he has also to obtan permsson frotn the shppng colnpanes The procedure followed s as under: (or ther agents) for brngng the cargo nto the shpment shed accordng to the "loadng plan" of the shp. Spectcay, the stages of tle shpment process are: ) The exporters prepare four copes of nvoces gvng all detal of the consgnment. 33 e,

2 ';'rl'rt '"'p(ln lrrlluoln.~tlrl~ ) The excsable goods. whch are to be enported under clam Sor rebate, are be ~narked as export cargo n ndvdual packages. These marks and numbers are to be specfed on AR4AR5 Forms. all the 6 copes. Personal Ledger Account (PLA) s to be flled n specfy~lg the amount of duty applcable to the export consgnment as debt. n PLA the credl balance of thc depost account spent by the ndvdual manulhcturer wth the central excse authorty s shown Each tme when goods are cleared, the amount of duty applcable to the goods to be cleared s debted and the balance s slown n the balance column. v),4 6 copes of AR4 AR5 For~us are to,be presented to the Range Superntendent before clearance of the cargo. Under tle SelfRenloval Procedure (SRP) Presence of the central excse offcer at the factory at the tme of clearance s not necessary. But n those cases where physcal examnaton by thle central excse offcer s solcted before tle cleararce of the cargo, 6 copes of AR4AR5 Forms should be presented to the Range Superntendent at least 24 hours before the goods are to be removed from the factory. v) v) :xcept that nstead of pettng refund amount, the exporter gets release tom the bond after zxporter. Yo wll lcarn detal procedure for Excse clearance n Unt6, Block 4.. Check Your Progress A ) Lst four documents requred ~lnder Rule 2 for excse refund.... 2) State whether the followng statements are True or False.. ) Export goods are ether kxernpted from'bdrect taxes or these taxes are refunded. After verfyng the detals gven n tle afore~nentoner doculnents, tle Range ) AR 4/AR5 Forms are submtted n 8 copessupelsntendent allows clearance of the cargo from tle factory for onward transmsson to the Port of shpment. Followns end0rst:ment are to be gven n al[ ~~~~oces need not be submtted under Rule23 the 6 copes of AR4/ AR5 Forms. Mantenance of publc Ledger Account s allowed under Rule "Allowed to export under clam for Central Excse Rebajtr:". The orgnal and duplcate copes of AR4/ ARS Forrns are handed over to the exporter; the trplcate copy s sent to the Martme Cert'.n. Excse Collectorate Refund secton, havngul.sdcto~~ over the otz whel.efr.om the goods are to be the fourth COPY s sent to the Chef Accounts offrcer (CAO) of the Martlne Central Excse Collectorate concerned; the 5"' copy s retaned by Range Superntendent for hs record and future reference. The sxth copy s also to be gven to exporter or hs authorsed agent. varous aspects of custonls forlnalfes. v The orgnal, duplcate and sxtuplcate copes of AR4/AR5 For~ns are to be submtted to the Export Department of Custons House alongwth other shppng 3.4. Legal Framework docurnents to prove that formal central excse clearance has been obtaned from the jursdctonal Central Excse Authorty. x) lfcusto~n offcer s satsfed, he would make endorsements n the ol.rgnal, duplcate and sxtuplcate copes of AP4ARS Forms. The offcer retturns or,gnal and sxtuplcate copes to the exporter and sends duplcate coply to the Rebate sanctonng Authorty. x) Rebate clam may be fled ether from Martme Collector or Jursdctonal Assstant Collector of Central Excse. x) Followng docurnents should be fled for clamng rebate: a) Applcaton n prescrbed form. b) Orgnal copy of AR4/ARS Form. c) Duplcate copy of AR4 n sealed cover receved fro customs offcer, f requred d) Duly attested copy of Bll'of ladng e) Duly attested copy of shppng Bll (Export promot'on copy) f) Dsclamer certfcate n case where cla~nant s otkter thn exporter,, Under secton 40 oftle llldan Customs AC~, an overseas carrer cannot permt loadng of wtllout perlnsson from the customs authortes. The permsson s to be obtaned b tle exporter, generally through hs clearng and forwardng agent Let us now dscuss Secton 50 of the ndan Custo~ns Act requres the exporter to fle a declaraton n a prescrbed form and submt supportng doclments to enable the customs authortes to check declaratons made by the exporter. Tlle objectves of the custo~ns control are: ) to ensure that nothng goes out of the country aganst the laws of the land and that prol~btons and restrctons regardng outward cargo are duly enforced by the custonls authortes; ) to ensure authentcty of the value of outward cargo accordng to the customs valuaton ules to check over and under nvocng; ) to assess and realse export duty/cess/cbarge accordng to the customs Tarff Act and any other fscal legslaton; j to check that all the relevant regulatory provsons enforced by varous authortes n the country have been duly colllpled wth n respect of export; and to provde export data through the customs returlls Customs Clearance Stages There are bur stages of customs nvolvement, These are: ) Processng of doculnents at the Customs House.e. the man offce. Ths stage Exempton under Bond under Rule 3: The procedure under ths Rule s slnl ar to tte nvolves: ) clleckllg up of documents to ensure that all relevant documents have one under Rule 2, except that under ths Rule approprate borrd s tb be executecj. been submtted; ) verfcaton of quantty and value of goods; verfcaton and detemnaton of rate of duty and collecton of the duty amount; ( drecton for the Under ths Rule there s no PLA (Publc Ledger Account) as no duty s pnd. Tle nnn documents are nvoce and AR4 AR5 Fonns. Same procedure s followed as undeer Rule 2, 34, custo~~s offcer n the docks for physcal examnaton of goods; Sllpmcnt of Export Cargo

3 l:xnelat ll0rt.'~:~c OPW~~~JN ) Physcal examnaton of goods n the docks n accordance wth the examnaton order gven at the Customs House; Supervson of loadng by the Customs Preventve Offcer; and Postslplnent endorsements by the Customs Preventve Offcer Documentary Requrements For movement of goods by ar or by sea, the customs permsson for shpment s gven on a prescrbed document, known as Shppng Bll. n other cases (.e. by roadlral) the document s known as Bll of Export. There are four types of Shppng BllBll of export. These are: ) Dutable Shppng BlllBll of Export for those goods whch attract export dutyl cess; ) Drawback Shppng BlllBll of Export for those goods whch are covered by the Duty Drawback scheme; Free Shppng BlllBll of Export for those goods whch nether attract export dutyl cess nor are covered by the Duty Drawback scheme; EXbond Shppng BlVBll of Export for those goods, whch are shpped from,the customs, bonded warehouse. Exporter or hs agent submts the followng documents to the customs department. ) Shppng Bll (n duplcate, trplcate or quadruplcate) duly flled n and sgned. ) ) Declaraton regardng truth of statement made n the Shppng Bll nvoce copy GR Form v) Export Lcence (wherever requred) ' v) Qualty Control nspecton Certfcate (wherever requred) ' v) Orgnal Contract wherever avalable or correspondence leadng to contract v Contract regstraton certfcate (wherever applcable) x) Letter of credt (wherever applcable) x) Packng Lst x) AR4lAR5 Forlns (orgnal and Duplcate) x) Any other documents Procedural Formaltes The Shppng Bll and the other documents are submtted to the Custom House as soon as the Rotaton No. has been gven to the carrer. As soon as the documents are fled n the,' Custom House, the Recevng clerk wll stamp the Shppng Blls wth date and tme and number them accordng to ther category. Tle Shppng Blls nvolvng foregn exchange wll be sent to the Apprasement Secton where they are allotted to Apprasers and Examners for scrutny and gvng examnaton order. Whle the Apprasers wll examne the Dutable and Drawback Shppng Blls, Free Shppng Bll wll be examned by the Examners. Tle verfcaton ofthe shppng blls wll be carred out wth reference to value and quantty of goads, export lccnce/quota/permt, complance wth other statutory requrements, rate and amount of export duty, etc. After verfcaton of shppng bll, the customs AppraserExamner wll gve an "examnaton order" on the Duplcate shppng bll. Ths "order" wll enable the customs offcer to carry out physcal examnaton of goods n the docks. The "examnaton order" wll also be counterendorsed by the prncpal Appraser. After completon of formaltes at the Apprasement secton,she documents are gven to the GR Form Clerk who puts the shppng bll no. On the GR form and detaches the orgnal to be sent to the RB. Further, where export duty s to be pad, the documents are gven to the exporterlagent to pay t at the cash and accounts Department. After payment of duty, Shppng Bll (orgnal) s detached and other documents are gven to the exporterlagent. n other cases. shppng bll (orgnal) s retaned at customs house and other documents are gven to the exporterlagent for brngng the goods to the shpment shed and make shpment arrangement. The second stage of customs formaltes s to carry out physcal examnaton of goods n the shed. Tle ~oods can be brought nto the shed only after completng port formaltes. Once the goods have been brought n, the exporterlagent wll present the shppng bll to the custo~n shed AppraserlExamner along wth the followng documents. ) nvoce, )..Packng lst, A RWAR5 forms, Apmark certfcate (wherever applcable). The shed AppraserlExamner would carry out physcal examnaton accordng to the "examnaton order" gven on shppng bll (duplcate). Once ths actvty s over, the Examner wll gve. "Let Export7' order on the shppng bll (duplcate) whch consttutes the physcal examnaton report. After the physcal examnaton report, the customs preventve offcer at the docks gves permsson for shpment on the shppng bll (Duplcate) n the form of "Let Shp" order. Ths copy s then presented to the master of the carrer, who then n consultaton wth the concerned customs preventve offcer, commences loadng operaton. The master of the carrer, after recevng consgnments on board ssues "Mate's Recept", whch s obtaned by the exporter or hs agent through the shed superntendent after payng port dues. The Mate's Recept provdes the bass for certfcaton of the "fact of shpment" on those documents where t s needed for clam of export ncentves. These documents are AR4lAR5 Form, Export promoton copy of shppng bll, GR (duplcate) and Commercal nvoce. 3.5 PORT PROCEDURES Export cargos can be brought nto the port only after the shp has been allotted a berth and declared for loadng. Some port authortes n nda requre the shppers to pay port charges and have ther shppng blls passed by the Customs House before brngng goods to the docks. At the Bombay port, however, shppers have the faclty of payng charges after shpment. Before brngng the cargo to the shpment shed, the shpper has to obtan "cartng permsson, from the shed superntendent and also the shp's agent on the prescrbed document. Ths document s known dfferently at dfferent ports, e.g., Dock challan at Calcutta, Port Trust Copy of the shppng bll at Bombay and Export Applcaton at other ports n nda. When goods are brought at the dock gate, the shpper has to present the port document and the Vehcle Tcket (n duplcate) to the Gate nspector. At the gate, the documents are compared and checked to ensure that such goods as have been permtted are brought to the docks for shpment. The packages; bundles, cases n each vehcle are counted to see that ther number talles wth the number mentoned n the respectve vehcle tckets. Vehcles Shlpmcnt of Export Cnrgo

4 LCsport mport 'l'r:~dc Operatons are then allowed to move to the concerned shpment shed and partculars of cargo passed through the gate recorded n a regster mantaned at ths pont. Concdng wth the arrval of the vehcles n the shpment shed, the shpper submts the Vehcle Tcket duly endorsed by the Gate nspector, Export ApplcatonDock ChallanPol? Trust copy of shppng bll, shppng bll (duly passed by customs) and a recept n leu of payment of port charges, where necessary, to the shed superntendent. As cargo s unloaded n the shpment shed, detals of the cargo receved are entered n the 'Shed Export Cargo Regster' whch s mantaned shpperwse and shpwse. The shpper then approaches the customs Appraser and the customs preventve offcer for physcal Examnaton of Goods and obtans 'Let ExportlLet Shp' endorsements n the Port Trust's documents also. The cargo s then allowed to be shpped. On completon ol shpment, detals of cargo actually shpped are recorded n the 'Shed Export Cargo Regster; from the 'Shppng Tally Sheets' whch are mantaned by the port Trust and also tle shppng lnes. On of cargo on board, the Master of the vessel ssues a document called the 'Mate's Recept' respect of every shpment taken on board. At some ports, the ssuance of Mate's s preceded by another document, whch has to be exchanged for the Mate's The Mate's Recept s subject to the terms and condtons stated n the shppng conl~an~'s regular Bll of Ladng. At most ports n nda, the port authortes collect the Mate's Recepts from the Master or the chef offcer otthe vessel and pass them on to the respectve only after ensurng recept of all port dues. The port authortes accept no claused Mate's Recepts, unless authorsed by the shpper (. After collectng the Mate's Recept, the shpper (exporter or hs agent) prepares the Bll of Ladng on blank forms suppled to hm by the shppng company. He presents 23 orgnals and some nonnegotable copes of the document at the shppng company's offce for sgnature of the authorsed offcer alongwth the Mate's Recept. The Mate's Recept s an mportant document because t s requred to be exchanged for the bll of ladng. The shpper must, therefore, collect ths document from the shed superntendent m~nedately after t has been receved by the latter to avod delays and problems. whch mght follow f ths s not collected n tme. Blls of Ladng may be marked ' Freght pad' or Freght to pay'. f the freght s prepad,.e., pad by the exporter, the Bll of Ladng s marked or stamped to that effect and where freght s not prepad, the Bll of Ladng s marked ' Freght to pay' or 'Freght collect'. The shppng company retans the Mate's Recept. Before sgnng and pan~~g wth the blls of ladng, the shppng company ensures that all the clauses appearng on the Mate's Recept are reproduced on the Blls of Ladng also. Check Your Progress B. Wrte two man objectves of the customs control. 'Let Export; orderon shppng bll shows the physcal examnaton report of the goods. 3. Fll n tlae blanks: Cartng permsson s obtaned from the shed superntendent. ) Tle relevant excse Rule under whch central excse duty pad on fnal products s refunded n full s... )... Requres the exporter to fle a declaraton n a prescrbed form and submt supportng documents to enable the customs authortes to check declaratons made by the exporter. For movements of goods by ar or sea, the customs permsson for shpment s gven on..... The master of the carrer, after recevng consgnments on board,... ssues LET US SUM UP to procedural formaltes ofthe custolns and port authortes slpment ofthe goods. Export goods are ether exemptedfrom ndrect taxes Or befpre thes taxes are efunded. rle schetne under wllch the central excse exempton Or lefund s known as rebate on central excse. The rule under whch central excse duty s pad on fjllal products s refunded n full.s Rule. Under Secton 40 of the ndan Custo~ns Act, an oversras carrer cannot ~errnt loadng of goods wtlout pelrasron from the custons authortes. Custom control ensures that nothng goes out of the country aganst the laws of the land. Varous stages of customs cleara~ce ~lvolve () processng of documents of customs house () physcal examnaton of goods ll tle dock ( supervson of loadng by the customs preventve offcer. After the plyscal exa~nnaton report, the customs preventve offcer at the docks gves permsson for rhp!nent on the shppng bll n the form of "Let Shp" order. When consgnlllents ore receved on board tle master of the carrer ssues Mate's Recept. 3.7 KEY WORDS Mate's Recept: A recept ssued by tle master of the carrer after recevng consgn~nents on board. Rebate of Central Excse: The scheme under whch the central excse exe~nptons or refund s provded. Sl~p~nc~~t uf Export Cnrgo 2, State whether the followng statements are True or False. ) Under secton 40 of the ndan customs Act, an overseas carrer cannot permt loadng of goods wthout permsson from the customs authorty. ) The goods can be brought nto the shed wthout completng port formaltes. 3.8 ANSWERS TO CHECK YOUR PROGRESS A 2 ) True ) False False False B 2 ) True ) False True True 3 ) Rule 2 ) Secton 50 of ndan Customs Act Shppng Bll Mate's Recept 3.9 TERMNAL QUESTONS.!, ) uescrbe varous stages nvolvkd n the shpment of export cargo. 2) Descrbe the procedures of obtanng excse rebate under excse rebate polcy.

5 Ekport ~t~port 'l'rndc op~ 3, Can YOU expon the goods wthout permsson from the cushm; suthortesl What are the objectves of customs control? 4) Descrbe varous stages nvolved n customs cleamnncc. UNT 4 CUSTOM CLEA~NC~ OF MPORT CARGO Structure 4.0 Objectves 4. ntroducton 4.2 0b.jectves of Custom Clearance 4.3 Legal Framework 4.4 Bnsc l~lformaton. Documents and Dutes Basc lnformnton Documents Dutes 4.5 Stages of Custom Clearance 4.6 Procedure of Custom Clearance 4.7 Electronc Data nterchange (ED) 4.8 Let Us Sum UP 4.9 Key Words 4.0 Answers to Check Your Progress 4. l l Ter~n~al Questons After st~dy~g ths unt, you should be able to: e descrbe the ob.jectves of custom clearance a explan the legal framework o dscuss the basc nfanatm;docurnents and rlated descrbe the stages of custom clearance 0 explan the procedure of custom dscuss the Electronc Data nterchange System. 4. NTRODUCTON The concept of customs operaton s as old as tho trade tself. n the olden days, there was a tradton followed by traders of offerng gfts, etc. to kngs to be able to sell ther merchandse n dfferent terrtores. The same practce has been formalzed n the modem economc and poltcal systems. Goods are subjected to levy of dutes, whenever they cross the natonal fronterslboundares of a country. Despte all efforts n favour of free trade, collecton of revenue s stll on prorty of the Commssoner n charge of a Custqmhouse. n ths unt, you wll learn the objectves, legal framework, basc nformaton, documents and dutes related to custom clearance of mport cargo. You wll further shfdy the stages and procedure of custon~ clearance and the operaton of Electronc Data nter6hange System. 4.2 OBJECTVES OF CUSTOM CLEARANCE Apart from beng a source of revenue, the major objectves of customs clearance ate as follows: Check smugglng: Those transactons whch do not take place n accardancd wth pmvsons of dfferent laws n force n lndaamounts to smugglng. t s the duty of customs admnstraton.to check such transactons.