Customs Clearance EXPORT Role of Customs EARLIER ENFORCER

Customs Clearance ( EXPORT )

Role of Customs- EARLIER ENFORCER 1) Is the commodity properly declared ? 2) Is this an exportable cargo ? 3) Is the value / weight properly declared ? ………

CHALLENGE # 1 Shrinkage in Global Trade

Ease of Doing Business India’s Ranking ( among 190 countries ) 2006 2007 2014 2015 2016 130 134 142 INDIA’s TARGET 50 131

Ease of Doing Business One of the 10 parameters => Trading across borders 1) no of documents 2)cost 3) time necessary to export & import

CHALLENGE # 2 Increase in Security threats

Role of Customs NOW… FACILITATOR LEGITIMATE TRADE ENFORCER ILLEGITIMATE TRADE

Role of Customs Broker • Self assessment regime • Greater responsibility on Custom Broker by Customs • Assist Customs to execute these two functions - Facilitation - Enforcement

Facilitations initiated by Indian Customs ( Export ) 1) RMS ( Risk Management System ) 2) 24 x 7 Customs clearance at select Ports 3) Direct Port Entry 4) AEO (Authorised Economic Operator) certification 5) Elimination of printing of documents Example – - export promotion copy - exchange control copy

Risk Management System (RMS) • Random Checking • Based On Risk Parameters - Type of stuffing - Commodity - Destination - Exporter track record - Other market intelligence ( Since Nov 2013 )

24 x 7 Customs clearance ( at Select Ports ) • Factory stuffed containers • CFS stuffed Free shipping Bills ( Since Jan 2015 )

AEO Certification Tier 1 -> Tier 2 -> Tier 3 Benefits • Reduced Examination • Priority ( revamped & simpler AEO since July 2016 )

Direct Port Entry Factory stuffed Export container • Registration at Custom facility inside Port limit • Registration at CFS not Mandatory • Likely from April 2107 at Tuticorin

Customs Clearance ( EXPORT )

Are all Goods permitted to be exported ? ? As per DGFT, classes of goods are… • • • Prohibited Restricted ( exportable under license ) State trading enterprises Restriction on countries of Export Freely Exportable goods

EXPORT Stuffing options • Factory Stuffing – Under Central excise supervision & sealing (A) – Self sealing (after approval from Customs & Central excise) (S) • CFS Stuffing (W)

EXPORT Documentation • Shipping Bill - Free Shipping Bill - Drawback Shipping Bill - EOU( Export Oriented Unit ) Shipping Bill • Documents needed for preparing shipping Bill - Invoice cum packing list ( HS code of commodity / Value / Quantity / Mode of packing ) • Filing through Customs online portal & Shipping Bill number is obtained ( valid for 15 days )

EXPORT Documentation & Flow • Registration • RMS ( Risk Management System ) = A) Facilitated = B) Examination ( system selected specific packages ) • Let Export Order ( at place of registration ) • Allowed for Shipment ( after entry at Port gate )

Post Shipment documentation Exports • Exchange Control Copy (for negotiation purpose) • Export Promotion copy ( EP Copy ) - Export General Manifest filed by Shipping Line - Errors / mismatch if any to be corrected • Drawback – scroll published in - Amount remitted to Exporter’s bank ac • Incentive claim ( MEIS ) Documents needed ( EP Copy / Bank Realisation certificate )

RBI - FOREX regulation on Export Transaction : • Bank will issue Bank realisation certificate upon receipt of payment from buyer to RBI • If payment not received from buyer , it’s the responsibility of shipper to inform Customs & repay drawback amount with interest of 18% P. A

To do … by Exporters • Appoint Licensed Custom brokers ( Custom Broker name in Shipping Bill ) • Timely & Accurate information in Invoice cum packing list Benefits 1) Possibilities for greater facilitation 2) Reduction in Cost & Time 3) Regular updates on Customs facilitation , change in procedures, benefits etc