Page 145 - DCOM308_DCOM502_INDIRECT_TAX_LAWS

Indirect Tax Laws

Notes (b) such goods may be sold by the proper officer by public auction or by tender, or with the
consent of the owner in any other manner, and the gross sale proceeds shall be deemed to be the
value of such goods.
In India custom clearance is a complex and time taking procedure that every export face in his
export business. Physical control is still the basis of custom clearance in India where each
consignment is manually examined in order to impose various types of export duties. High
import tariffs and multiplicity of exemptions and export promotion schemes also contribute in
complicating the documentation and procedures. So, a proper knowledge of the custom rules
and regulation becomes important for the exporter. For clearance of export goods, the exporter
or export agent has to undertake the following formalities:

Registration

Any exporter who wants to export his good need to obtain PAN based Business Identification
Number (BIN) from the Directorate General of Foreign Trade prior to filing of shipping bill for
clearance of export goods. The exporters must also register themselves to the authorised foreign
exchange dealer code and open a current account in the designated bank for credit of any
drawback incentive.
Registration in the case of export under export promotion schemes:

All the exporters intending to export under the export promotion scheme need to get their
licences/DEEC book etc. registered at the customs station. For such registration, original
documents are required.

Processing of Shipping Bill - Non-EDI

In case of Non-EDI, the shipping bills or bills of export are required to be filled in the format as
prescribed in the Shipping Bill and Bill of Export (Form) Regulations, 1991. An exporter need to
apply different forms of shipping bill/bill of export for export of duty free goods, export of
dutiable goods and export under drawback etc.

Processing of Shipping Bill - EDI

Under EDI System, declarations in prescribed format are to be filed through the Service Centers
of Customs. A checklist is generated for verification of data by the exporter/CHA. After
verification, the data is submitted to the System by the Service Center operator and the System
generates a Shipping Bill Number, which is endorsed on the printed checklist and returned to
the exporter/CHA. For export items which are subject to export cess, the TR-6 challans for cess
is printed and given by the Service Center to the exporter/CHA immediately after submission
of shipping bill. The cess can be paid on the strength of the challan at the designated bank. No
copy of shipping bill is made available to exporter/CHA at this stage.

Quota Allocation

The quota allocation label is required to be pasted on the export invoice. The allocation number
of AEPC (Apparel Export Promotion Council) is to be entered in the system at the time of
shipping bill entry. The quota certification of export invoice needs to be submitted to Customs
along-with other original documents at the time of examination of the export cargo. For
determining the validity date of the quota, the relevant date needs to be the date on which the

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