Import export assignment

ASSIGNMENT ONEXPORT AND IMPORT PROCEDURES
OF FLYING KING EXPORTS AND IMPORTS COMPANY

INDIAN INSTITUTE OF FOREIGN TRADE
NEW DELHI

SUBMITTED BY

SUBMITTED TO

Hitesh Bharti

Prof Ram Singh

Roll No. 24
2nd Semester
PGDIM 2012-14

FLYING KING EXPORTS AND
IMPORTS COMPANY
ABOUT COMPANY
Flying King Exports and Imports Company was incorporated by Abdul Samad B
which is located inKollam, Kerala and from then onwards a never ending
journey started to reach, satisfy and keep longlasting relationship with old as
well as new clients. This is not just for business purpose but also to
gainconfidence in the clients. Client satisfaction and confidence gives them
self-motivation, to keep onimproving and performing better and better, which
ultimate leads to excellence.

OBJECTIVE
The basic objective of developing business both In India and overseas by
maintaining the qualityof the products, ensuring price competitiveness and
enhancing service standards still remain thesame. To all the company
members the highest standard service is as important now as they werewhen
the business was incorporated.

QUALITY POLICY / PROCEDURES
Flying King Business Group aims to achieve and sustain excellence in all their
activities. Theyare committed to total customer satisfaction by providing
products and services, which meet orexceed the customer’s expectation.
Modernization, stress on Technological innovation andtraining of employees at
all levels shall be continuous process. A motivated workforce with asense of
pride in the organization shall lead to towards total quality. They believe in
principle which guides it for the continuous development of its products and
services. It also aims at making committed efforts to achieve Total Quality
Management to offer maximum satisfaction to customers.

AIM / VISION / MISSION
Flying King Business Group is set to deliver top quality and comprehensive
rates for all the products of export and endeavour to reach the top notch of
quality maintenance, top quality product and liberation.

PRODUCTS AND SERVICES
Food products:Frozen fish&crustaceans, frozen meat and chicken(in all categories)
Dry fruits &nuts,cocoa,basmati rice, coconut oil

General products:Rubber
Articles of wood & timber

Major businesses-metal scraps & ores
Railway line scraping & recycling
Abandon ships(ship breaking & demolition) scraps & recycling
Aluminium scraps & ore (bauxite) extraction and recycling
Copper scraps & ore (chalcocite) extraction and recycling
Iron scraps & ore extraction and recycling
Steel and steel articles extraction and recycling
Tin ,zinc, nickel-articles scraps & recycling

EXPORT AND IMPORT PROCEDURES
EXPORT PROCEDURE
Here the company acts as both types of exporter - merchant exporters who
buy goods from the market or from manufacturers and sell them to foreign
buyers and a manufacturer exporter who manufactures the goods he exports.
Once the company receives an export order it will be processed and a contract
that lists item specifications, payment conditions, marketing requirements,
arbitration, shipping and insurance will be drawn out. Like any other exporting
company, this company can also face risks such as credit risk, currency risk,
carriage risk and country risk which can be countered through steps like
insisting upon an irrevocable letter of credit from the overseas buyer and

taking out a marine insurance policy. All exporters have toregister with a
regional licensing authority that provides them with an Import Export Code
(IEC) number. To get benefits and concessions under the export-import policy,
exporters’should register with an appropriate export promotion agency by
obtaining a registration-cum-membership certificate. Goods that are exported
are eligible for exemption from both Sales Taxand Central Sales Tax. For this
purpose they have registered with the Sales Tax Authority ofKerala.
Agricultural products go through quality control and pre-shipment inspections
beforeexport. Under the Export (Quality Control and Inspection) Act, 1963
(External website that opens in a new window), about 1,000 commodities
under the major groups of food and agriculture, fishery, minerals, organic and
inorganic chemicals, rubber products, jute products and coir are subject to
compulsory pre-shipment inspection. However, products that have an ISI
Certification Mark (External website that opens in a new window) or Agmark
(External website that opens in a new window) do not need to be inspected by
any agency. All goods have beenlabelled, packaged, packed and marked before
export addition and re-exportation.

IMPORTPROCEDURE
Imports to India are governed by the foreign trade (development and
regulation) act 1992(external website that opens in a new window). Under this
act, imports of all goods are free except for the items regulated by the policy or
any other law in force. The present, foreign trade arrangements for different
commodities are stated in the Exim policy of 2004-2009 (externalwebsite that
opens in a new window). This policy is announced once every five years
withannual supplements coming out every year. It is also known as the foreign
trade policy or exportimport policy. Items on the prohibited list like tallow, fat
or oils of any animal origin, animalrennet and wild animals including their parts
and products and ivory cannot be imported. Forimport of items that appear in
the restricted list you need secure an import license. Imports ofitems that are
enumerated in the canalized list of items are permitted to be imported
throughcanalizing agencies. All other products can be freely imported.
Registration with a regional licensing authority is a precondition for the import
of goods. Customs officials will not permit clearance of goods unless the
importer gets an import export code (IEC) number from the regional licensing
authority.

PROCEDURE FOR CLEARANCE OF IMPORTED AND
EXPORTED GOODS
I. IMPORT
1. Bill of entry – cargo declaration:
Goods imported in a vessel/aircraft attract customs duty and unless these are
not meant for customs clearance at the port/airport of arrival by particular
vessel/aircraft and are intended for transit by the same vessel/aircraft or
transhipment to another customs station or to any place outside India,
detailed customs clearance formalities of the landed goods have to be
followed by the importers. In regard to the transit goods, so long as these are
mentioned in import report/IGM for transit to any place outside India, customs
allows transit without payment of duty. Similarly for goods brought in by
particular vessel aircraft for transhipment to another customs station detailed
customs clearance formalities at the port/airport of landing are not prescribed
and simpletranshipment procedure has to be followed by the carrier and the
concerned agencies. The customs clearance formalities have to be complied
with by the importer after arrival of the goodsat the other customs station.
There could also be cases of transhipment of the goods after unloading to a
port outside India. Here also simpler procedure for transhipment has been
prescribed by regulations, and no duty is required to be paid. (Sections 52 to
56 of the customsare relevant in this regard).
2. For other goods, which are offloaded importers, have the option to clear the
goods for home consumption after payment of the duties levi-able or to clear
them for warehousing without immediate discharge of the duties levi-able in
terms of the warehousing provisions built in the customs act. Every importer is
required to file in terms of the section 46 an entry (which is called bill of entry)
for home consumption or warehousing in the form, as prescribed by
regulations.
3. If the goods are cleared through the EDI system no formal bill of entry is
filed as it is generated in the computer system, but the importer is required to
file a cargo declaration having prescribed particulars required for processing of
the entry for customs clearance.

4. The bill of entry, where filed, is to be submitted in set, different copies
meant for different purposes and also given different colour scheme, and on
the body of the bill of entry the purpose for which it will be used is generally
mentioned in the non-EDI declaration.
5. The importer clearing the goods for domestic consumption has to file bill of
entry in four copies; original and duplicate are meant for customs, third copy
for the importer and the fourth copy is meant for the bank for making
remittances.
6. In the non-EDI system along with the bill of entry filed by the importer or his
representative the following documents are also generally required: Signed invoice
Packing list
Bill of lading or delivery order/airway bill
GATT declaration form duly filled in
Importers/CHA declaration
License wherever necessary
Letter of credit/bank draft/wherever necessary
Insurance document
Import license
Industrial license, if required
Test report in case of chemicals
Adhoc exemption order
DEEC Book/DEPB in original
Catalogue, technical write up, literature in case of machineries, spares or
chemicals as may be applicable
Separately split up value of spares, components machineries
Certificate of origin, if preferential rate of duty is claimed
No commission declaration
7. While filing the bill of entry and giving various particulars as prescribed
therein the correctness of the information given has also to be certified by the
importer in the form adeclaration at the foot of the bill of entry and any misdeclaration/incorrect declaration has legal consequences, and due precautions
should be taken by importer while signing these declarations.
8. Under the EDI system, the importer does not submit documents as such for
assessment but submits declarations in electronic format containing all the

relevant information to the service enter. A signed paper copy of the
declaration is taken by the service centre operator for non-reputability of the
declaration. A checklist is generated for verification of data by
theimporter/cha. After verification, the data is submitted to the system by the
service centreoperator and system then generates A, BILL OF ENTRY number,
which is endorsed on the printed checklist and returned to the importer/cha.
No original documents are taken at this stage. Original documents are taken at
the time of examination. The importer/cha also needs to sign on the final
document after customs clearance.
9. The first stage for processing a bill of entry is what is termed the noting of
the bill of entry,vis-à-vis, the IGM filed by the carrier. In the non-EDI system the
importer has to get the bill of entry noted in the concerned unit which checks
the consignment sought to be cleared having been manifested in the particular
vessel and a bill of entry number is generated and indicated on all copies. After
noting the bill of entry gets sent to the appraising section of the custom house
for assessment functions, payment of duty etc. in the EDI system, the steamer
agents get the manifest filed through EDI or by using the service centre of the
custom house and the noting aspect is checked by the system itself – which
also generates bill of entry number.
10. After noting/registration of the bill of entry, it is forwarded manually or
electronically to the concerned appraising group in the custom house dealing
with the commodity sought to be cleared. Appraising wing of the custom
house has a number of groups dealing with earmarked commodities falling
under different chapter headings of the customs tariff and they take up further
scrutiny for assessment, import permissibility etc. angle.

ASSESSMENT:
11. The basic function of the assessing officer in the appraising groups is to
determine the duty liability taking due note of any exemptions or benefits
claimed under different export promotion schemes. They have also to check
whether there are any restrictions or prohibitions on the goods imported and if
they require any permission/license/permit etc. and if so whether these
areforthcoming. Assessment of duty essentially involves proper classification of
the goods imported in the customs tariff having due regard to the rules of
interpretations, chapter and sections notesetc., and determining the duty
liability. It also involves correct determination of value where thegoods are

assessable on ad valorem basis. the assessing officer has to take note of the
invoice andother declarations submitted along with the bill of entry to support
the valuation claim, and adjudge whether the transaction value method and
the invoice value claimed for the basis of assessment is acceptable, or value
needs to be redetermined having due regard to the provisions of section 14
and the valuation rules issued there under, the case law and various
instructions onthe subject. He also takes note of the contemporaneous values
and other information on valuation available with the custom house.
12. Where the appraising officer is not very clear about the description of the
goods from the document or as some doubts about the proper classification,
which may be possible only to determine after detailed examination of the
nature of the goods or testing of its samples, he may give an examination order
in advance of finalization of assessment including order for drawing of
representative sample. this is done generally on the reverse of the original
copy of the bill of entry which is presented by the authorized agent of the
importer to the appraising staff posted in the docks/air cargo complexes where
the goods are got examined in the presence of the importer’s representative.
13. On receipt of the examination report the appraising officers in the group
assesses the bill of entry. He indicates the final classification and valuation in
the bill of entry indicating separately the various duties such as basic,
countervailing, anti-dumping, safeguard duties etc. that may believable.
Thereafter the bill of entry goes to assistant commissioner/deputy
commissioner for confirmation depending upon certain value limits and sent to
copyist who calculates the duty amount taking into account the rate of
exchange at the relevant date as provided under section 14of the customs act.
14. After the assessment and calculation of the duty liability the importer’s
representative has to deposit the duty calculated with the treasury or the
nominated banks, where after he can go and seek delivery of the goods from
the custodians.
15.Where the goods have already been examined for finalization of
classification or valuation no further examination/checking by the dock
appraising staff is required at the time of giving delivery and the goods can be
taken delivery after taking appropriate orders and payment of dues to the
custodians, if any.

16.In most cases, the appraising officer assesses the goods on the basis of
information and details furnished to the importer in the bill of entry, invoice
and other related documents including catalogue, write-up etc. he also
determines whether the goods are permissible for import or there are any
restriction/prohibition. He may allow payment of duty and delivery of the
goods on what is called second check/appraising basis in case there are no
restriction/prohibition. in this method, the duties as determined and
calculated are paid in the custom house and appropriate order is given on the
reverse of the duplicate copy of the bill of entry and the importer or his agent
after paying the duty submits the goods for examination in the import sheds in
the docksetc., to the examining staff. if the goods are found to be as declared
and no otherdiscrepancies/mis-declarations etc., are detected, the importer or
his agent can clear the goods after the shed appraiser gives out of charge
order.
17. Wherever the importer is not satisfied with the classification, rate of duty
or valuation as maybe determined by the appraising officer, he can seek an
assessment order. an appeal against theassessment order can be made to
appropriate appellate authority within the time limits and in themanner
prescribed.

EDI ASSESSMENT:
18. In the EDI system of handling of the documents/declarations for taking
import clearances as mentioned earlier the cargo declaration is transferred to
the assessing officer in the groups electronically.
19. The assessing officer processes the cargo declaration on screen with regard
to all the parameters as given above for manual process. However in EDI
system, all the calculations aredone by the system itself. In addition, the
system also supplies useful information for calculation of duty, for example,
when a particular exemption notification is accepted, the system itself givesthe
extent of exemption under that notification and calculates the duty
accordingly. Similarly, it automatically applies relevant rate of exchange in
force while calculating. Thus no copyist isrequired in EDI system. If assessing
officer needs any clarification from the importer, he mayraise a query. The
query is printed at the service centre and the party replies to the query
through the service centre.

20. After assessment, a copy of the assessed bill of entry is printed in the
service centre. UnderEDI, documents are normally examined at the time of
examination of the goods. Final bill of entry is printed after ‘out of charge’ is
given by the custom officer.
21. In EDI system, in certain cases, the facility of system appraisal is available.
Under this process, the declaration of importer is taken as correct and the
system itself calculates duty which is paid by the importer. In such case, no
assessing officer is involved.
22. Also, a facility of tele-enquiry is provided in certain major customs stations
through whichthe status of documents filed through EDI systems could be
ascertained through the telephone. If any query is raised, the same may be got
printed through fax in the office of importer/exporter/CHA.

EXAMINATION OF GOODS
23. All imported goods are required to be examined for verification of
correctness of description given in the bill of entry. However, a part of the
consignment is selected on random selection basis and is examined. In case the
importer does not have complete information with him at the time of import,
he may request for examination of the goods before assessing the duty liability
or, if the customs appraiser/assistant commissioner feels the goods are
required to be examined before assessment, the goods are examined prior to
assessment. This is called first appraisement. The importer has to request for
first check examination at the time of filing the bill of entry or atdata entry
stage. The reason for seeking first appraisement is also required to be given.
Onoriginal copy of the bill of entry, the customs appraiser records the
examination order and returns the bill of entry to the importer/cha with the
direction for examination, which is to take it to the import shed for
examination of the goods in the shed. Shed appraiser/dock examiner
examinesthe goods as per examination order and records his findings. In case
group has called forsamples, he forwards sealed samples to the group. The
importer is to bring back the said bill ofentry to the assessing officer for
assessing the duty. Appraiser assesses the bill of entry. It iscountersigned by
assistant/deputy commissioner if the value is more than Rs. 1 lakh.
24. The goods can also be examined subsequent to assessment and payment
of duty. This iscalled second appraisement. Most of the consignments are
cleared on second appraisement basis. It is to be noted that whole of the

consignment is not examined. Only those packages which areselected on
random selection basis are examined in the shed.
25. Under the EDI system, the bill of entry, after assessment by the group or
first appraisement, as the case may be, need to be presented at the counter
for registration for examination in the import shed. A declaration for
correctness of entries and genuineness of the original documentsneeds to be
made at this stage. After registration, the BILL OF ENTRY is passed on to the
shed appraiser forexamination of the goods. Along-with the BILL OF ENTRY, the
challan is to present all the necessary documents. After completing
examination of the goods, the shed appraiser enters the report in system
andtransfers first appraisement BILL OF ENTRY to the group and gives out of
charge in case of already assessedBILL OF ENTRY. thereupon, the system prints
bill of entry and order of clearance (in triplicate). All thesecopies carry the
examination report, order of clearance number and name of shed appraiser.
Thetwo copies each of BILL OF ENTRY and the order are to be returned to the
cha/importer, after the appraisersigns them. One copy of the order is attached
to the customs copy of BILL OF ENTRY and retained by theshed appraiser.

GREEN CHANNEL FACILITY:
26. Some major importers have been given the green channel clearance
facility. It means clearance of goods is done without routine examination of the
goods. They have to make a declaration in the declaration form at the time of
filing of bill of entry. The appraisement is doneas per normal procedure except
that there would be no physical examination of the goods. Onlymarks and
number are to be checked in such cases. However, in rare cases, if there are
specificdoubts regarding description or quantity of the goods, physical
examination may be ordered bythe senior officers/investigation wing.

EXECUTION OF BONDS:
27. Wherever necessary, for availing duty free assessment or concessional
assessment underdifferent schemes and notifications, execution of end use
bonds with bank guarantee or othersurety is required to be furnished. These
have to be executed in prescribed forms before theassessing appraiser.

PAYMENT OF DUTY:
28. The duty can be paid in the designated banks or through tr-6 Challans.
Different customhouses have authorized different banks for payment of duty.

It is necessary to check the name ofthe bank and the branch before depositing
the duty. Bank endorses the payment particulars inChallans which is submitted
to the customs.

AMENDMENT OF BILL OF ENTRY:
29. Whenever mistakes are noticed after submission of documents,
amendments to the bill ofentry is carried out with the approval of
deputy/assistant commissioner. The request foramendment may be submitted
with the supporting documents. For example, if the amendment ofcontainer
number is required, a letter from shipping agent is required. Amendment in
documentmay be permitted after the goods have been given out of charge i.e.
goods have been cleared onsufficient proof being shown to the
deputy/assistant commissioner.

PRIOR ENTRY FOR BILL OF ENTRY:
30. For faster clearance of the goods, provision has been made in section 46 of
the act, to allowfiling of bill of entry prior to arrival of goods. This bill of entry is
valid if vessel/aircraft carryingthe goods arrive within 30days from the date of
presentation of bill of entry.
31. The importer is to file 5 copies of the bill of entry and the fifth copy is called
advance notingcopy. The importer has to declare that the vessel/aircraft is due
within 30 days and they have topresent the bill of entry for final noting as soon
as the IGM is filed. Advance noting is available toall imports except for into
bond bill of entry and also during the special period.

MOTHER VESSEL/FEEDER VESSEL:
32. Often in case of goods coming by container ships they are transferred at an
intermediate port (like Ceylon) from mother vessel to smaller vessels called
feeder vessels. At the time of filing ofadvance noting BILL OF ENTRY, the
importer does not know as to which vessel will finally bring the goodsto Indian
port. In such cases, the name of mother vessel may be filled in on the basis of
the bill oflading. On arrival of the feeder vessel, the bill of entry may be
amended to mention names ofboth mother vessel and feeder vessel
specialized schemes.
33. The import of goods is made under specialized schemes like DEEC or EOU
etc. the importer insuch cases is required to execute bonds with the customs

authorities for fulfilment of conditions of respective notifications. If the
importer fails to fulfil the conditions, he has to pay the dutyleviable on those
goods. The amount of bond would be equal to the amount of duty leviable
onthe imported goods. The bank guarantee is also required along with the
bond. However, theamount of bank guarantee depends upon the status of the
importer like super star tradinghouse/trading house etc.

BILL OF ENTRY FOR BOND/WAREHOUSING:
34. A separate form of bill of entry is used for clearance of goods for
warehousing. Alldocuments as required to be attached with a bill of entry for
home consumption are also requiredto be filed with bill of entry for
warehousing. The bill of entry is assessed in the same mannerand duty payable
is determined. However, since duty is not required to be paid at the time
ofwarehousing of the goods, the purpose of assessing the goods at this stage is
to secure the duty incase the goods do not reach the warehouse. The duty is
paid at the time of ex-bond clearance ofgoods for which an ex-bond bill of
entry is filed. The rate of duty applicable to imported goodscleared from a
warehouse is the rate in-force on the date on which the goods are
actuallyremoved from the warehouse.

II. EXPORT:
For clearance of export goods, the export or his agents have to undertake the
followingformalities:
(A) REGISTRATION:
35. The exporters have to obtain pan based business identification number
(bin) from thedirectorate general of foreign trade prior to filing of shipping bill
for clearance of export goods. Under the EDI system, pan based bin is received
by the customs system from the DGFT online.The exporters are also required
to register authorized foreign exchange dealer code (throughwhich export
proceeds are expected to be realized) and open a current account in the
designatedbank for credit of any drawback incentive.
36. Whenever a new airline, shipping line, steamer agent, port or airport
comes into operation, they are required to be registered into the customs
system. Whenever, electronic processing ofshipping bill etc. is held up on
account of non-registration of these entities, the same is to bebrought to the

notice of assistant/deputy commissioner in-charge of EDI system for
registeringthe new entity in the system.
(B) REGISTRATION IN THE CASE OF EXPORT UNDER EXPORT PROMOTION
SCHEMES:
37. All the exporters intending to export under the export promotion scheme
need to get their licenses/DEEC book etc. registered at the customs station. For
such registration, originaldocuments are required.
(C) PROCESSING OF SHIPPING BILL-NON-EDI:
38. Under manual system, shipping bills or, as the case may be, bills of export
are required to be filed in format as prescribed in the shipping bill and bill of
export (form) regulations, 1991. The bills of export are being used if clearance
of export goods is taken at the land customs stations. Different forms of
shipping bill/bill of export have been prescribed for export of duty free goods,
export of dutiable goods and export under drawback etc.
39.Shipping bills are required to be filed along with all original documents such
as invoice, ar-4,packing list etc. the assessing officer in the export department
checks the value of the goods, classification under drawback schedule in case
of drawback shipping bills, rate of duty/cesswhere applicable, exportability of
goods under Exim policy and other laws enforce. TheDEEC/depb shipping bills
are processed in the DEEC group. In case of DEEC shipping bills, theassessing
officer verifies that the description of the goods declared in the shipping bill
andinvoice match with the description of the resultant product as given in the
DEEC book. If theassessing officer has any doubts regarding value, description
of goods, he may call for samplesof the goods from the docks. He may also call
for any other information required by him forprocessing of shipping bill. He
may assess the shipping bill after visual inspection of the sampleor may send it
for test and pass the shipping bill provisionally.
40. Once, the shipping bill is passed by the export department, the exporter or
his agents presentthe goods to the shed appraiser (export) in docks for
examination. The shed appraiser may markthe document to a custom officer
(usually an examiner) for examining the goods. Theexamination is carried out
under the supervision of the shed appraiser (export). If the descriptionand
other particulars of the goods are found to be as declared, the shed appraiser
gives a ‘letexport’ order, after which the exporter may contact the preventive
superintendent for supervisingthe loading of goods on to the vessel.

41. In case the examining staffs in the docks finds some discrepancy in the
goods, they may markthe shipping bill back to export department/DEEC group
with their observations as well as sampleof goods, if needed. The export
department re-considers the case and decide whether export canbe allowed,
or amendment in description, value etc. is required before export and whether
anyother action is required to be taken under the customs act, 1962 for misdeclaration of descriptionof value etc.
(D) PROCESSING OF SHIPPING BILL-EDI:
42. Under EDI system, declarations in prescribed format are to be filed through
the servicecentres of customs. A checklist is generated for verification of data
by the exporter/cha. Afterverification, the data is submitted to the system by
the service centre operator and the systemgenerates a shipping bill number,
which is endorsed on the printed checklist and returned to theexporter/cha.
For export items which are subject to export cess, the tr-6 Challans for cess
isprinted and given by the service centre to the exporter/cha immediately after
submission ofshipping bill. The cess can be paid on the strength of the Challans
at the designated bank. Nocopy of shipping bill is made available to
exporter/cha at this stage.
(E) OCTROI PROCEDURE, QUOTA ALLOCATION AND OTHER CERTIFICATION
FOR EXPORT GOODS:
43. The quota allocation label is required to be pasted on the export invoice.
The allocationnumber of aepc is to be entered in the system at the time of
shipping bill entry. The quotacertification of export invoice needs to be
submitted to customs along-with other originaldocuments at the time of
examination of the export cargo. For determining the validity date ofthe quota,
the relevant date needs to be the date on which the full consignment is
presented to thecustoms for examination and duly recorded in the computer
system. In EDI system at Delhi air cargo, the quota information is automatically
verified from the aepc/texprocil system.
44. Since the shipping bill is generated only after the let export order is given
by customs, theexporter may make use of export invoice or such other
document as required by the octroiauthorities for the purpose of octroi
exemption
(F) ARRIVAL OF GOODS AT DOCKS:

45. The goods brought for the purpose of examination and subsequent let
export is allowedentry to the dock on the strength of the checklist and other
declarations filed by the exporter inthe service centre. The port authorities
have to endorse the quantity of goods actually received onthe reverse of the
check list.
(G) SYSTEM APPRAISAL OF SHIPPING BILLS:
46. In many cases the shipping bill is processed by the system on the basis of
declarations madeby the exporters without any human intervention. In other
cases where the shipping bill isprocessed on screen by the customs officer, he
may call for the samples, if required forconfirming the declared value or for
checking classification under the drawback schedule. Hemay also give any
special instructions for examination of goods, if felt necessary.
(H) STATUS OF SHIPPING BILL:
47. The exporter/cha can check up with the query counter at the service centre
whether theshipping bill submitted by them in the system has been cleared or
not, before the goods arebrought into the docks for examination and export. In
case any query is raised, the same isrequired to be replied through the service
centre or in case of Chas having EDI connectivitythrough their respective
terminals. The customs officer may pass the shipping bill after all thequeries
have been satisfactorily replied to.
(I) CUSTOMS EXAMINATION OF EXPORT CARGO:
48.After the receipt of the goods in the dock, the exporter/cha may contact the
customs officerdesignated for the purpose present the check list with the
endorsement of port authority and otherdeclarations as aforesaid along with
all original documents such as, invoice and packing list, ar-4, etc. customs
officer may verify the quantity of the goods actually received and enter into
thesystem and thereafter mark the electronic shipping bill and also hand over
all original documentsto the dock appraiser of the dock who many assign a
customs officer for the examination andintimate the officers’ name and the
packages to be examined, if any, on the check list and returnit to the exporter
or his agent.
49. The customs officer may inspect/examine the shipment along with the
dock appraiser. The customs officer enters the examination report in the
system. He then marks the electronic bill along with all original documents and

checklist to the dock appraiser. If the dock appraiser issatisfied that the
particulars entered in the system conform to the description given in the
originaldocuments and as seen in the physical examination, he may proceed to
allow "let export" for theshipment and inform the exporter or his agent.
(J) VARIATION BETWEEN THE DECLARATION & PHYSICAL EXAMINATION:
50. The check list and the declaration along with all original documents are
retained by theappraiser concerned. In case of any variation between the
declarations in the shipping bill andphysical documents/examination report,
the appraiser may mark the electronic shipping bill tothe assistant
commissioner/deputy commissioner of customs (exports). He may also
forward thephysical documents to assistant commissioner/deputy
commissioner of customs (exports) andinstruct the exporter or his agent to
meet the assistant commissioner/deputy commissioner ofcustoms (exports)
for settlement of dispute. In case the exporter agrees with the views of
thedepartment, the shipping bill needs to be processed accordingly. Where,
however, the exporterdisputes the view of the department principles of
natural justice is required to be followed beforefinalization of the issue.
(K) STUFFING / LOADING OF GOODS IN CONTAINERS:
51. The exporter or his agent should hand over the exporter copy of the
shipping bill duly signedby the appraiser permitting "let export" to the steamer
agent who may then approach the properofficer (preventive officer) for
allowing the shipment. In case of container cargo the stuffing ofcontainer at
dock is dome under preventive supervision. Loading of both containerized and
bulkcargo is done under preventive supervision. The customs preventive
superintendent (docks) mayenter the particulars of packages actually stuffed in
to the container; the bottle seal numberparticulars of loading of cargo
container on board into the system and endorse these details onthe exporter
copy of the shipping bill presented to him by the steamer agent. If there is
adifference in the quantity/number of packages stuffed in the
containers/goods loaded on vesselthe superintendent (docks) may put a
remark on the shipping bill in the system and that shippingbill requires
amendment or changed quantity. Such shipping bill also may not be taken up
for thepurpose of sanction of drawback/DEEC logging, till the shipping bill is
suitably amended for thechanged quantity. The customs preventive officer
supervising the loading of container andgeneral cargo in to the vessel may give
"shipped on board" endorsement on the exporter’s copyof the shipping bill.

(L) DRAWAL OF SAMPLES:
52. Where the appraiser dock (export) orders for samples to be drawn and
tested, the customsofficer may proceed to draw two samples from the
consignment and enter the particulars thereofalong with details of the testing
agency in the ices/e system. There is no separate register forrecording dates of
samples drawn. Three copies of the test memo are prepared by the
customsofficer and are signed by the customs officer and appraising officer on
behalf of customs and theexporter or his agent. The disposals of the three
copies of the test memo are as follows: Original – to be sent along with the sample to the test agency.
Duplicate – customs copy to be retained with the 2nd sample.
Triplicate – exporter’s copy.
53. The assistant commissioner/deputy commissioner if he considers
necessary, may also orderfor sample to be drawn for purpose other than
testing such as visual inspection and verificationof description, market value
inquiry, etc.
(M) AMENDMENTS:
54. Any correction/amendments in the checklist generated after filing of
declaration can be madeat the service centre, provided, the documents have
not yet been submitted in the system and theshipping bill number has not
been generated. Where corrections are required to be made after
thegenerations of the shipping bill no. or after the goods have been brought
into the export dock, amendments is carried out in the following manners:
If the goods have not yet been allowed "let export" amendments may be
permitted by the assistant commissioner (exports).
Where the "let export" order has already been given, amendments may
be permitted only by the additional/joint commissioner, custom house,
in charge of export section.
55. In both the cases, after the permission for amendments has been granted,
the assistantcommissioner/deputy commissioner (export) may approve the
amendments on the system onbehalf of the additional /joint commissioner.
Where the print out of the shipping bill has alreadybeen generated, the
exporter may first surrender all copies of the shipping bill to the dockappraiser
for cancellation before amendment is approved on the system.

(N) EXPORT OF GOODS UNDER CLAIM FOR DRAWBACK:
56. After actual export of the goods, the drawback claim is processed through
EDI system by theofficers of drawback branch on first come first served basis.
There is no need for filing separatedrawback claims. The status of the shipping
bills and sanction of DBK claim can be ascertainedfrom the query counter set
up at the service centre. If any query has been raised or deficiencynoticed, the
same is shown on the terminal. A print out of the query/deficiency may be
obtainedby the authorized person of the exporter from the service centre. The
exporters are required toreply to such queries through the service centre. The
claim will come in queue of the EDI systemonly after reply to
queries/deficiencies is entered by the service centre.
57. All the claims sanctioned on a particular day are enumerated in a scroll and
transferred to thebank through the system. The bank credits the drawback
amount in the respective accounts of theexporters. Bank may send a
fortnightly statement to the exporters of such credits made in theiraccounts.
58. The steamer agent/shipping line may transfer electronically the EGM to the
customs EDIsystem so that the physical export of the goods is confirmed, to
enable the customs to sanctionthe drawback claims.
(O) GENERATION OF SHIPPING BILLS:
59. After the "let export" order is given on the system by the appraiser, the
shipping bill isgenerated by the system in two copies i.e., one customs copy,
one exporter’s copy (e.p. copy isgenerated after submission of EGM). After
obtaining the print out the appraiser obtains thesignatures of the customs
officer on the examination report and the representative of the cha onboth
copies of the shipping bill and examination report. The appraiser thereafter
signs & stampsboth the copies of the shipping bill at the specified place.
60. The appraiser also signs and stamps the original & duplicate copy of SDF.
Customs copy ofshipping bill and original copy of the SDF is retained along with
the original declarations by theappraiser and forwarded to export department
of the custom house. He may return the exportercopy and the second copy of
the SDF to the exporter or his agent.
61. As regards the aepc quota and other certifications, these are retained along
with the shippingbill in the dock after the shipping bill is generated by the
system. At the time of examination, apart from checking that the goods are

covered by the quota certifications, the details of thequota entered into the
system needs to be checked.
(P) EXPORT GENERAL MANIFEST:
62. All the shipping lines/agents need to furnish the export general manifests,
shipping bill wise, to the customs electronically within 7 days from the date of
sailing of the vessel.
63. Apart from lodging the EGM electronically the shipping lines need to
continue to file manual EGM along with the exporter copy of the shipping bills
as per the present practice in the exportdepartment. The manual EGM need to
be entered in the register at the export department and theshipping lines may
obtain acknowledgements indicating the date and time at which the EGM
werereceived by the export department.
64. The above is the general procedure for export under EDI systems. However
specialprocedures exist for specified schemes, details of which may be
obtained from the publicnotice/standing orders issued by the respective
commissioner rates.

BIBLIOGRAPHY
International Trade Operation: - Dr Ram Singh
Export Documentation & Procedure – Nabhi Kumar Jain
Export/import procedures and documentation- Thomas E
Johnson
REFERENCES – INTERNET
www.dgft.gov.in
www.google.co.in
www.eximkey.com
www.commerce.nic.in
www.cbec.gov.in

Import export assignment

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