Export Import Procedures and Documentation Assignme nt A 1. What are INCO terms? Ex pl ai n all INCO terms indicat ing the r espo nsibilit o! the bue r and seller at "arious stages o! the export ccle. A.1 Inco terms or inte rnational commerce terms are a series o! internatio nal sales terms# pub lished bIntern at ional Chamber o! Commerce $ICC% and &i del used in int ern ational commercial tra nsacti ons. 'hese are accep ted bgo"ernments# leg al authori tie s and practitioners &orld&ide !or the interpretation o! most commonlused terms in international trade. 'his reduces or remo"es altogether uncertainties arising !rom di!!erent interpretation o!suc h terms in di !! ere nt cou ntries. (cope o! this is limited to matters rel ati ng to rig ht and obligation s o! the parties to the contract o! sale &ith respect to the deli"ero! goods sold. 'heare used to di"ide transaction costs and responsibilities bet&een buer and seller and re!lect state)o!)the)art transportation practices. 'hecloselcorrespond to the *.N. Con "en tion on Contracts !or the International (ale o! +oods . 'he !irst "ersion &as introduced in 1,-and the present dates !rom /000. ecentlthe ICC changed basic aspects o! the de!initions o! a number o! INCO'E2(# buers and sellers should be a&are o! this. 'erms that ha"e changed ha"e a star alongside them. E3)Wor4s One o! the simples t and most basi c ship men t arra nge ment s pla ces the minimum responsib iliton the seller &ith greater responsib iliton the buer. In an E3)Wor4s transaction# goods are basicallmade a"ailable !or pic4up at the shipper5seller6s !actoror &arehouse and 7deli" er7 is acc omp lished &h en the merchandis e is released to the consi gnee6s !re igh t !or&arder . 'he buer is responsible !or ma4ing arrangemen ts &ith their !or&arder !or insurance# export clearance and handling all other paper&or4. DE( $Deli" ered Ex (hi p% In this tpe o! transac tion # it is the selle r6s respon sibi litto get the goods to the port o! destination or to engage the !or&arder to the mo"e cargo to the port o!destination uncleared. 7Deli"er7 occurs at this time. Andestination charges that occur a!ter the ship is doc4ed are the buer6s responsibilit. DE8 $Deli"ered Ex 8ua%9 In this arrangement# the buer5consign ee is responsib le !or duties and charges and the seller is responsible !or deli"ering the goods to the :ua# &har! or port o!destinatio n. In a re"ersal o! pre "io us pra ctice# the buer must also arrange !or custo ms clearance. DE( $Deli" ered Ex (hi p% In this tp e o! transac tion # it is the selle r6s respon sibi litto get the goods to the port o! destination or to engage the !or&arder to the mo"e cargo to the port o!destination uncleared. 7Deli"er7 occurs at this time. Andestination charges that occur a!ter the ship is doc4ed are the buer6s responsibilit. DE8 $Deli"ered Ex 8ua%9 In this arrangement# the buer5consign ee is responsib le !or duties and charges and the seller is responsible !or deli"ering the goods to the :ua# &har! or port o!destinatio n. In a re"ersal o! pre "io us pra ctice# the buer must also arrange !or custo ms clearance. DD* $Deli"ered Dut*npaid% 'his arrangement is basicallthe same as &ith DDP# except !or the !act that the buer is responsible !or the dut# !ees and taxes. DDP $Deli"ered DutPaid% DDP terms tend to be used in intermodal or courier)tpe shipments. Whereb# the shipper5seller is responsible !or dealing &ith all the tas4s in"ol"ed in mo"ing goods !rom the manu!acturing plant to the buer5consignee6s door. It is the shipper5seller6s
1. What are INCO terms? Explain all INCO terms indicating the responsibilit o! the buer and seller at "arious stages o! the export ccle.
A.1 Inco terms or international commerce terms are a series o! international sales terms#published b International Chamber o! Commerce $ICC% and &idel used in internationalcommercial transactions. 'hese are accepted b go"ernments# legal authorities andpractitioners &orld&ide !or the interpretation o! most commonl used terms in internationaltrade. 'his reduces or remo"es altogether uncertainties arising !rom di!!erent interpretation o! such terms in di!!erent countries. (cope o! this is limited to matters relating to right andobligations o! the parties to the contract o! sale &ith respect to the deli"er o! goods sold. 'heare used to di"ide transaction costs and responsibilities bet&een buer and seller and re!lectstate)o!)the)art transportation practices. 'he closel correspond to the *.N. Con"ention onContracts !or the International (ale o! +oods. 'he !irst "ersion &as introduced in 1,- and thepresent dates !rom /000.
ecentl the ICC changed basic aspects o! the de!initions o! a number o! INCO'E2(# buersand sellers should be a&are o! this. 'erms that ha"e changed ha"e a star alongside them.
E3)Wor4s One o! the simplest and most basic shipment arrangements places the minimumresponsibilit on the seller &ith greater responsibilit on the buer. In an E3)Wor4s transaction#goods are basicall made a"ailable !or pic4up at the shipper5seller6s !actor or &arehouse and7deli"er7 is accomplished &hen the merchandise is released to the consignee6s !reight!or&arder. 'he buer is responsible !or ma4ing arrangements &ith their !or&arder !or insurance#export clearance and handling all other paper&or4.DE( $Deli"ered Ex (hip% In this tpe o! transaction# it is the seller6s responsibilit to get thegoods to the port o! destination or to engage the !or&arder to the mo"e cargo to the port o! destination uncleared. 7Deli"er7 occurs at this time. An destination charges that occur a!ter theship is doc4ed are the buer6s responsibilit.DE8 $Deli"ered Ex 8ua%9 In this arrangement# the buer5consignee is responsible !or dutiesand charges and the seller is responsible !or deli"ering the goods to the :ua# &har! or port o! destination. In a re"ersal o! pre"ious practice# the buer must also arrange !or customsclearance.DE( $Deli"ered Ex (hip% In this tpe o! transaction# it is the seller6s responsibilit to get thegoods to the port o! destination or to engage the !or&arder to the mo"e cargo to the port o! destination uncleared. 7Deli"er7 occurs at this time. An destination charges that occur a!ter theship is doc4ed are the buer6s responsibilit.DE8 $Deli"ered Ex 8ua%9 In this arrangement# the buer5consignee is responsible !or dutiesand charges and the seller is responsible !or deli"ering the goods to the :ua# &har! or port o!
destination. In a re"ersal o! pre"ious practice# the buer must also arrange !or customsclearance.DD* $Deli"ered Dut *npaid% 'his arrangement is basicall the same as &ith DDP# except !orthe !act that the buer is responsible !or the dut# !ees and taxes.DDP $Deli"ered Dut Paid% DDP terms tend to be used in intermodal or courier)tpe shipments.Whereb# the shipper5seller is responsible !or dealing &ith all the tas4s in"ol"ed in mo"inggoods !rom the manu!acturing plant to the buer5consignee6s door. It is the shipper5seller6s
responsibilit to insure the goods and absorb all costs and ris4s including the pament o! dutand !ees.
/. Examine the steps in"ol"ed in processing o! an export order. A./ (tep 1(crutini;e the order &ith re!erence to the terms and conditions o! the contract.< 'heexport order must speci! the mode o! pament in unmista4able terms such as the=etter o! Credit# Documents# on Pament# Documents against Acceptance. 'he most importantdocuments re:uired b an importer are> a% ill o! Exchange b% Commercial In"oice c% On oardClean ill o! =ading d% 2arine Insurance Polic e% Pac4ing list and !% Certi!icate o! Origin. 'heseshould be gi"en to the negotiating ban4.
(tep /@or a manu!acture)exporter# a!ter the export order has been con!irmed# a deli"er note6 shouldbe sent to the &or4s manager.< 'his note should contain all rele"ant details pertaining to thespeci!ications5re:uirements o! the importer. Nothing should be le!t at the discretion o! the&or4s5!actor manager. A merchant)exporter# &ho purchases the re:uired goods !rom themar4et or gets them produced b other manu!acturers# also has to pro"ide the necessarspeci!ications5re:uirements5instructions to the supplier o! the goods to be exported.
(tep - A!ter the goods ha"e been manu!actured5procured# the !ollo&ing is to be done><B Clearance !rom the Central Excise authorities b obtaining the +ate Pass $+P%)1 !orm i! goodsare to beremo"ed under claim !or rebate o! dut# +P)/ !orm i! goods are to be remo"ed under a bond i.e.as per the terms and conditions o! the Collector o! Customs or A)5A)A !orm i! the exporter&ishes to a"ail the ser"ices o! the Central Excise O!!icer !or the purpose o! ha"ing a phsical"eri!ication at the !actor and therea!ter sealing o! pac4agesB 'he concerned Export Inspection c% A ail&a eceipt has to be obtained i! the goods aredispatched b train to the port o! shipment.
(tep Once the goods ha"e been dispatched to the port# the Wor4s5@actor manager is supposed tosend a dispatch ad"ice6 to the !irm6s Export Department. 'hen marine insurance co"er issolicited. At this stage# !ormalities regarding !loor price regulations# canalisation#certi!icate o! origin# EC+C $Export Credit +uarantee Commission% co"er need to be completed.'herea!ter# the Export Department sends the !ollo&ing documents to its Clearing @or&ardingagent $hence!orth called the agent%>B Commercial In"oiceB Original Export orderB Original =etter o! CreditB + !rom sho&ing I Code Number o! the exporterB AFA5A)!orm
(tep G A!ter the agent has ta4en control o! the consignment# a shipping bill is prepared b him.< 'hree4inds o! shipping bills are to be prepared depending on the categor o! export goods. 'hese are@ree# Dutiable and Dra&bac4 shipping bills.
(tep Once the shipping bill has been cleared b Customs# the agent !or&ards a cop o! the shippingbill to the (hed (uperintendent o! the concerned Port 'rust and thera!ter a Doc4 Challan ismade# &hich is then released to the agent a!ter debiting the exporter6s account &ith theconcerned Port Commissioners.
(tep H A 2ate6s eceipt is prepared b the ship6s export cler4 and is gi"en to the agent once portcharges ha"e been paid. 'he agent then !or&ards the rele"ant documents to the exporter.
(tep A!ter recei"ing the abo"e documents !rom the agent# the exporter !iles a claim &ith the 2aritimeCollector o! Central Excise !orbade o! excise dut.< In the meantime# a shipment ad"ice shouldbe sent to the importer. Documents are then presented to the negotiating ban4. 'herea!ter thedocuments are transmitted to the ban4er o! the importer# a!ter &hich the importer &ould ta4ecustod o! the consignment once the goods reach their destination and other rele"ant!ormalities are completed are completed at that end.
8.- $a% rie!l explain the di!!erence bet&een
1. D/P and D/ADOCUMENTS AGAINST PAYMENT: In the documents against pament $D5P% documents onpament $DOP or D5P% the documents attached to the dra!t $bill% dra&n b the exporter andneeded to obtain goods are deli"erable to the importer onl a!ter he5she has paid the dra!t. 'hedocuments against pament $D5P% applies to a sight dra!t.
DOCUMENTS AGAINST ACCEPTANCE> In the documents against acceptance $D5A%documents on acceptance $DOA or D5A% the documents attached to the dra!t $bill% dra&n b theexporter and needed to obtain goods are deli"erable to the importer onl a!ter he5she hasaccepted the dra!t !or pament later. 'he documents against acceptance $D5A% applies to a termdra!t.
/. DD* and DDP>DDU Delivered Duty Unpaid: 'he deli"er o! goods and the cargo insurance to the !inal pointat destination# &hich is o!ten the proJect site or buer6s premises# at seller6s expense. uerassumes the import customs clearance and pament o! customs duties and taxes. 'he sellerma opt not to insure the goods at his5her o&n ris4s.
In the export :uotation# indicate the point o! destination $discharge%.
DDP> Delivered Duty Paid: 'he seller is responsible !or most o! the expenses# &hich includethe cargo insurance# import customs clearance# and pament o! customs duties and taxes at thebuer6s end# and the deli"er o! goods to the !inal point at destination# &hich is o!ten the proJectsite or buer6s premises. 'he seller ma opt not to insure the goods at his5her o&n ris4s.
In the export :uotation# indicate the point o! destination $discharge% a!ter theacronm DDP.
-. Principal and egulator Documents
Principle Docuent!: 'hese documents need to be prepared in order to help export)importtrade. Out o! 1 commercial documents# 1 documents ha"e been standardi;ed and aligned
&ith one another. Principle documents ha"e the !ollo&ing obJecti"es>
A% 'o !acilitate trans!er o! title o! goods and propert !rom the exporter to the importer.
% 'o ensure sa!e trans!er o! goods !rom the countr o! the exporter to the countr o! the
importer.
C% 'o help the exporters to reali;e paments &ithout problem dela.
Commercial documents include commercial in"oice# certi!icate o! origin# bill o! lading#
certi!icate o! inspection# etc.
"e#ulatory Docuent!: egulator documents are needed under the la& as the are
prescribed b "arious go"ernment departments and bodies co"ering !oreign exchange
regulations# export inspection# custom !ormalities etc. Out o! regulator documents ha"e been
standardi;ed.
. Custom In"oice and Consular In"oice>Cu!to Invoice: Extended !orm o! commercial in"oice re:uired b customs $o!ten in aspeci!ied !ormat% in &hich the exporter states the description# :uantit and sellingprice# !reight# insurance#and pac4ing costs# terms o! deli"er and pament# &eight and5or "olume o! the goods !or
the purpose o! determining customs import "alue at the port o! destination.
Consular Invoice: A document certi!ing a shipment o! goods and sho&s in!ormationsuch as the consignor# consignee and "alue o! the shipment. A consular in"oice can beobtained through a consular representati"e o! the countr ou6re shipping to. 'heconsular in"oice is re:uired b some countries to !acilitate customs and collection o!taxes.
G. e"ocable and Irre"ocable letter o! credit>"evoca$le letter o% credit: =5C that ma be amended or canceled an time bthe buer $the account part% &ithout the appro"al o! the seller $the bene!iciar%. (ince it
does not pro"ide an protection to the seller# it is rarel used. (ome ban4s e"en re!useto issue such =5Cs because o! the !ear o! getting in"ol"ed in the possible litigation bet&eenthe buer and the seller.
Irrevocable Letter Of Credit: A letter o! credit that can6t be canceled. 'his guarantees thata buer6s pament to a seller &ill be recei"ed on time and !or the correct amount. @irmcommitment b an issuing ban4 to pa an accepting ban4 a speci!ied sum in aspeci!ied currenc# pro"ided the conditions included in the =5C document are met &ithin a
speci!ied time!rame. 'his =5C cannot be canceled $or its terms amended% &ithoutthe seller6s $bene!iciar6s% prior &ritten appro"al# and comes usuall as a con!irmedirre"ocable letter o! credit.
b% Write a short note
&' ill o! lading> A bill o! lading $sometimes re!erred to as a O=# or 5=% is a document issued
b a carrier to a shipper# ac4no&ledging that speci!ied goods ha"e been recei"ed on board as
cargo !or con"eance to a named place !or deli"er to the consignee &ho is usuall identi!ied.
A thorough bill o! lading in"ol"es the use o! at least t&o di!!erent modes o! transport !rom road#
rail# air# and sea. 'he term deri"es !rom the "erb 7to lade7 &hich means to load a cargo onto a
ship or other !orm o! transportation.
A bill o! lading can be used as a traded obJect. 'he standard short !orm bill o! lading is e"idence
o! the contract o! carriage o! goods and it ser"es a number o! purposes>
It is e"idence that a "alid contract o! carriage# or a chartering contract# exists# and it ma
incorporate the !ull terms o! the contract bet&een the consignor and the carrier b re!erence $i.e.
the short !orm simpl re!ers to the main contract as an existing document# &hereas the long
!orm o! a bill o! lading $connaissement intKgral% issued b the carrier sets out all the terms o! the
contract o! carriage%
(' )EMA: 'he @oreign Exchange 2anagement Act $1,,,% or in short @E2A has beenintroduced as a replacement !or earlier @oreign Exchange egulation Act $@EA%. @E2Acame into act on the 1st da o! Lune# /000.
'he main obJecti"e behind the @oreign Exchange 2anagement Act $1,,,% is toconsolidate and amend the la& relating to !oreign exchange &ith obJecti"e o! !acilitatingexternal trade and paments and !or promoting the orderl de"elopment andmaintenance o! !oreign exchange mar4et in India.
@E2A is applicable to the all parts o! India. 'he act is also applicable to all branches#o!!ices and agencies outside India o&ned or controlled b a person &ho is resident o!India.
@E2A head)o!!ice also 4no&n as En!orcement Directorate is situated in Ne& Delhi andis headed b a Director. 'he Directorate is !urther di"ided into G ;onal o!!ices at Delhi#omba# Calcutta# 2adras and Lalandhar and each o!!ice is headed b a DeputDirectors. Each ;one is !urther di"ided into H sub);onal o!!ices headed b the AssistantDirectors and G !ield units headed b the Chie! En!orcement O!!icers
*' EPCG !c+ee: 'he scheme allo&s import o! capital goods !or pre production# productionand post production $including CMD5(MD thereo! as &ell as computer so!t&are sstems% at G
Customs dut subJect to an export obligation e:ui"alent to times o! dut sa"ed on capitalgoods imported under EPC+ scheme to be !ul!illed o"er a period o! ears rec4oned !rom thedate o! issuance o! licence. Capital goods &ould be allo&ed at 0 dut !or exports o!agricultural products and their "alue added "ariants.
o&e"er# in respect o! EPC+ licenses &ith a dut sa"ed o! s.100 crore or more# the same
export obligation shall be re:uired to be !ul!illed o"er a period o! 1/ ears.
In case CD is paid in cash on imports under EPC+# the incidence o! CD &ould not be ta4en!or computation o! net dut sa"ed pro"ided the same is not Cen"ated .
'he capital goods shall include spares $including re!urbished5 reconditioned spares% # tools# Jigs#!ixtures# dies and moulds. EPC+ licence ma also be issued !or import o! components o! suchcapital goods re:uired !or assembl or manu!acturer o! capital goods b the licence holder.
(econd hand capital goods &ithout an restriction on age ma also be imported under theEPC+ scheme.
(pares $including re!urbished5 reconditioned spares%# tools# re!ractories# catalst andconsumable !or the existing and ne& plant and machiner ma also be imported under theEPC+ scheme.
Duty %ree !+ippin# $ill Q 'his tpe o! shipping bill is printed on &hite paper and used !or thegoods !or &hich neither dut nor cess is applicable. It is also used !or the goods manu!acturedout o! material imported under the dut !ree importDutia$le S+ippin# $ill - 'his tpe o! shipping bill is used !or the goods subJect to exportdut5cess on &hich dut dra&bac4 &ill be either allo&ed or not allo&ed. 'his is to be printed onello& paper.
Dra.$ac S+ippin# ,ill Q 'his tpe o! shipping bill is to be used !or the export o! goods on&hich Dut Dra&bac4 is a"ailable or to be made a"ailable !or !ixation. It is to be printed ongreen paper.
S+ippin# ,ill %or S+ipent o! Excise ond) 'his tpe o! shipping bill is used &hen goods areimported !or re)export and 4ept in bond. 'his is to be printed on blue paper.
Coa!tal S+ippin# ,ill 0 Export Coastal shipping ill Q 'his is used !or shipment o! goods !romone port to another b sea &ithin India
1' "ole o% Clearin# and )or.ardin# A#ent: 'heir main Job is doing the documentation &or4 &ith the
procedural approach to the concerned !or an import or export. It depends upon theirin!luences experiences things &ill be get done &ith their o&n ser"ice charges
8. Discuss "arious methods that are used !or ma4ing pament in International 'rade. A. Popular Payent Met+od!
'here are man &as in &hich an importer can pa to the exporter. ut the !our basic mode o!paments# &hich ta4es "arious shapes o! paments# are Pament in Ad"ance# Open Account
Pament# Documentar Collections and Documentar Credits 5 =etter o! Credit. Each method isexplained belo&>
Payent in Advance In 6pament in ad"ance6 method# the entire ris4 is put on the importer. *nder this term o!purchase# the importer ma4es !ull pament to the supplier be!ore the shipment o! goods is done.'he importer trusts the supplier that the shipment o! the product &ill be on time and the goods&ill be as ad"ertised. 'his method o! pament generall ta4es place under the !ollo&ingcircumstances>
• I! the importer has not been long established.
• I! the credit status o! the importer is doubt!ul# unsatis!actor and5or the political and
economic ris4s o! the countr are "er high.• I! the product is in high demand and the seller does not ha"e to accommodate the
importer6s !inancing re:uest in order to sell the product.
'his method o! pament do not in"ol"e an commercial ban4 and is there!ore inexpensi"e. ut#the buer !aces a high degree o! pament ris4 as he can do nothing i! the seller sends poor
:ualit goods or incorrect or incomplete documentation.
Open Account Payent'his method allo&s the importer to ma4e paments to the exporter at some speci!ic date in the!uture &ithout issuing an negotiable instrument# onl e"idencing his legal commitment to pa atthe committed time. *suall# this method ta4es place &hen either the importer has a strongcredit histor or is &ell)4no&n to the seller.
'his mechanism do not o!!ers the seller an protection in case o! non)pament. o&e"er# theexporter can structure this sale to minimi;e the ris4 o! non)pament. e can reduce therepament period and can retain title to the goods until the pament is made.
'hough all the ris4s but still open account pament is more pre"ailing in the international trade.'hose exporters &ho o!!er such terms are increasingl obtaining credit insurance to mitigate thepotential open account credit ris4s.
Docuentary Collection! 'his term o! pament o!!ers an important ban4 pament mechanism. It ser"es the need o! both#the exporter as &ell as the importer. In this mode o! pament# the sale transaction is settled bthe ban4 through an exchange o! documents. ence# it enables the pament and trans!er o! titlesimultaneousl.
Docuentary Credit! / 2etter o% CreditIt is a credit instrument li4e letter o! credit or bac4)to)bac4 letter o! credit. In this mode o!pament# the buer6s ban4 underta4es to pa the seller &hen the terms and conditions ha"ebeen met. 'he ban4 issues documentar credits to a customer according to hiscredit&orthiness.
=etters o! credit are used primaril in international trade transactions o! signi!icant "alue# !ordeals bet&een a supplier in one countr and a customer in another. 'he are also used in theland de"elopment process to ensure that appro"ed public !acilities $streets# side&al4s# storm&ater ponds# etc.% &ill be built. 'he parties to a letter o! credit are usuall a bene!iciar &ho is torecei"e the mone# the issuing ban4 o! &hom the applicant is a client# and the ad"ising ban4 o!
&hom the bene!iciar is a client. Almost all letters o! credit are irre"ocable# i.e.# cannot beamended or cancelled &ithout prior agreement o! the bene!iciar# the issuing ban4 and thecon!irming ban4# i! an. In executing a transaction# letters o! credit incorporate !unctionscommon to giros and 'ra"eler6s che:ues. 'picall# the documents a bene!iciar has to presentin order to recei"e pament include a commercial in"oice# bill o! lading# and documents pro"ingthe shipment &as insured against loss or damage in transit.
8.G Examine the steps in"ol"ed in Custom Clearance o! Export Cargo. A.G In India custom clearance is a complex and time ta4ing procedure that e"er export !ace inhis export business. Phsical control is still the basis o! custom clearance in India &here eachconsignment is manuall examined in order to impose "arious tpes o! export duties. ighimport tari!!s and multiplicit o! exemptions and export promotion schemes also contribute incomplicating the documentation and procedures. (o# a proper 4no&ledge o! the custom rulesand regulation becomes important !or the exporter. @or clearance o! export goods# the exporteror export agent has to underta4e the !ollo&ing !ormalities>
"e#i!tration An exporter &ho &ants to export his good need to obtain PAN based usiness Identi!icationNumber $IN% !rom the Directorate +eneral o! @oreign 'rade prior to !iling o! shipping bill !orclearance o! export goods. 'he exporters must also register themsel"es to the authorised!oreign exchange dealer code and open a current account in the designated ban4 !or credit o!an dra&bac4 incenti"e.
egistration in the case o! export under export promotion schemes> All the exporters intending to export under the export promotion scheme need to get theirlicences 5 DEEC boo4 etc.
Proce!!in# o% S+ippin# ,ill - Non-EDI: In case o! Non)EDI# the shipping bills or bills o! export are re:uired to be !illed in the !ormat as
prescribed in the (hipping ill and ill o! Export $@orm% regulations# 1,,1. An exporter need toappl di!!erent !orms o! shipping bill5 bill o! export !or export o! dut !ree goods# export o!dutiable goods and export under dra&bac4 etc.
Proce!!in# o% S+ippin# ,ill - EDI:*nder EDI (stem# declarations in prescribed !ormat are to be !iled through the (er"ice Centerso! Customs. A chec4list is generated !or "eri!ication o! data b the exporter5CA. A!ter"eri!ication# the data is submitted to the (stem b the (er"ice Center operator and the (stemgenerates a (hipping ill Number# &hich is endorsed on the printed chec4list and returned tothe exporter5CA. @or export items &hich are subJect to export cess# the ') challans !or cessis printed and gi"en b the (er"ice Center to the exporter5CA immediatel a!ter submission o!shipping bill. 'he cess can be paid on the strength o! the challan at the designated ban4. No
cop o! shipping bill is made a"ailable to exporter5CA at this stage.
3uota Allocation'he :uota allocation label is re:uired to be pasted on the export in"oice. 'he allocation numbero! AEPC $Apparel Export Promotion Council% is to be entered in the sstem at the time o!shipping bill entr. 'he :uota certi!ication o! export in"oice needs to be submitted to Customsalong)&ith other original documents at the time o! examination o! the export cargo. @ordetermining the "alidit date o! the :uota# the rele"ant date needs to be the date on &hich the
!ull consignment is presented to the Customs !or examination and dul recorded in theComputer (stem.
Arrival o% Good! at Doc!:On the basis o! examination and inspection goods are allo&ed enter into the Doc4. At this stagethe port authorities chec4 the :uantit o! the goods &ith the documents.
Sy!te Apprai!al o% S+ippin# ,ill!:In most o! the cases# a (hipping ill is processed b the sstem on the basis o! declarationsmade b the exporters &ithout an human inter"ention. (ometimes the (hipping ill is alsoprocessed on screen b the Customs O!!icer.
Cu!to! E4aination o% E4port Car#o:Customs O!!icer ma "eri! the :uantit o! the goods actuall recei"ed and enter into the sstemand therea!ter mar4 the Electronic (hipping ill and also hand o"er all original documents to theDoc4 Appraiser o! the Doc4 &ho man assign a Customs O!!icer !or the examination andintimate the o!!icersR name and the pac4ages to be examined# i! an# on the chec4 list and returnit to the exporter or his agent.
'he Customs O!!icer ma inspect5examine the shipment along &ith the Doc4 Appraiser. 'heCustoms O!!icer enters the examination report in the sstem. e then mar4s the Electronic illalong &ith all original documents and chec4 list to the Doc4 Appraiser. I! the Doc4 Appraiser issatis!ied that the particulars entered in the sstem con!orm to the description gi"en in theoriginal documents and as seen in the phsical examination# he ma proceed to allo& 7letexport7 !or the shipment and in!orm the exporter or his agent.
Stu%%in# / 2oadin# o% Good! in Container!'he exporter or export agent hand o"er the exporterRs cop o! the shipping bill signed b the
Appraiser S=et Export7 to the steamer agent. 'he agent then approaches the proper o!!icer !orallo&ing the shipment. 'he Customs Pre"enti"e O!!icer super"ising the loading o! container andgeneral cargo in to the "essel ma gi"e 7(hipped on oard7 appro"al on the exporterRs cop o!
the shipping bill.
Dra.al o% Saple!:Where the Appraiser Doc4 $export% orders !or samples to be dra&n and tested# the CustomsO!!icer ma proceed to dra& t&o samples !rom the consignment and enter the particularsthereo! along &ith details o! the testing agenc in the ICE(5E sstem. 'here is no separateregister !or recording dates o! samples dra&n. 'hree copies o! the test memo are prepared bthe Customs O!!icer and are signed b the Customs O!!icer and Appraising O!!icer on behal! o!Customs and the exporter or his agent. 'he disposal o! the three copies o! the test memo is as!ollo&s>)
Original Q to be sent along &ith the sample to the test agenc.
Duplicate Q Customs cop to be retained &ith the /nd sample.
'riplicate Q ExporterRs cop.
'he Assistant Commissioner5Deput Commissioner i! he considers necessar# ma also order!or sample to be dra&n !or purpose other than testing such as "isual inspection and "eri!icationo! description# mar4et "alue in:uir# etc.
Aendent!: An correction5amendments in the chec4 list generated a!ter !iling o! declaration can be made atthe ser"ice center# i! the documents ha"e not et been submitted in the sstem and the shippingbill number has not been generated. In situations# &here corrections are re:uired to be madea!ter the generation o! the shipping bill number or a!ter the goods ha"e been brought into theExport Doc4# amendments is carried out in the !ollo&ing manners.
'he goods ha"e not et been allo&ed 7let export7 amendments ma be permitted b the Assistant Commissioner $Exports%.
Where the 7=et Export7 order has alread been gi"en# amendments ma be permitted onlb the Additional5Loint Commissioner# Custom ouse# in charge o! export section.
In both the cases# a!ter the permission !or amendments has been granted# the AssistantCommissioner 5 Deput Commissioner $Export% ma appro"e the amendments on the sstemon behal! o! the Additional 5Loint Commissioner. Where the print out o! the (hipping ill hasalread been generated# the exporter ma !irst surrender all copies o! the shipping bill to theDoc4 Appraiser !or cancellation be!ore amendment is appro"ed on the sstem.
E4port o% Good! under Clai %or Dra.$ac: A!ter actual export o! the goods# the Dra&bac4 claim is processed through EDI sstem b theo!!icers o! Dra&bac4 ranch on !irst come !irst ser"ed basis &ithout !eeling an separate !orm.
Generation o% S+ippin# ,ill!:'he (hipping ill is generated b the sstem in t&o copies) one as Custom cop and one asexporter cop. oth the copies are then signed b the Custom o!!icer and the Custom ouse
1. What are the !eatures o! Export Processing Tones 5 (pecial Economic Tones? o& arethe help!ul in promoting export !rom India?
A.1 'he )eature! o% E4port Proce!!in# 5one! exhibits the reason behind the setting up o!more EPTs in India and the de"elopment the ha"e brought &ithin the countr. In general#Export Processing Tones $EPT% can be de!ined as the labor)intensi"e and export)orientedproduction centers o! a countr. 'he go"ernment o! India con"erted all the Export ProcessingTones in the countr to (pecial Economic Tones according to a ne& scheme in the E3I2 Polic#/000.
'he Indian go"ernment since the 1,0s has encouraged the setting up o! Export ProcessingTones in India. 'he main obJecti"es o! setting up Export Processing Tones in India are topromote !oreign exchange earnings and exports.EPTs in India are supported b &orld)class e!!icient and modern in!rastructure# non)!iscal and!iscal concessions# and a business en"ironment that is !ree !rom corruption. 'he "arious@eatures o! Export Processing Tones are that the are exempted !rom paing duties on allimports that are made !or the purpose o! proJect de"elopment# li4e exemption !rom A'# importdut# and also "arious other taxes.
@urther the other @eatures o! Export Processing Tones includes# income tax holidas on thebusiness income# !acilities !or in house Customs clearance# and exemption !rom paing A'5excise dut on the capital goods that are sourced !or proJect de"elopment. Also the "arious@eatures o! Export Processing Tones comprise o! mar4ets# clubs# recreation centers#plagrounds# and residential areas &ithin the premises o! the Tone. 'he "arious other @eatureso! EPTs are li4e# !oreign direct in"estment up to 100 is allo&ed through the automatic route !or the acti"ities that are related to the manu!acturing sector# tax holida !or a period o! 10 ears#and abundant suppl o! manpo&er.
@eatures o! Export Processing Tones includes eas access to rail&a station and airport# anen"ironment that is pollution !ree &ith proper se&erage and drainage sstems# and sel!)certi!ication and simpli!ication o! procedures in the labor acts. @urther the "arious @eatures o!EPTs are e!!icienc and procedural ease that lead to speed clearances# appro"als# disputeresolution# and customs procedures. Also the "arious @eatures o! Export Processing Tones arethat a number o! pri"ate and public ban4 chains set up their branches in the EPTs in order topro"ide !inancial assistance to the business houses. 'he "arious Export Processing Tones inIndia are>
• Cochin Export Processing Tone $CEPT%# Cochin# Merala
• isa4hapatnam Export Processing Tone $EPT%# isa4hapatnam# Andhra Pradesh
• @alta Export Processing Tone $@EPT%# @alta#West engal
• 2adras Export Processing Tone $2EPT%# 2adras# 'amil Nadu
• Noida Export Processing Tone $NEPT%# Noida# *ttar Pradesh
@eatures o! Export Processing Tones thus sho& the "arious incenti"es that the go"ernmento! India has been pro"iding to these Tones. 'he Indian go"ernment must continue to pro"idethe best !acilities to the Export Processing Tones !or this &ill gi"e a maJor boost to the Indianeconom in the coming das.
'he (pecial Economic Tone in India &as launched in April /000 .(ection ,)A o! the Exim policde!ines policies related to setting up (ETs in India. 'he main !eatures o! (ET( India are>
1. 'he (pecial Economic Tone &ould be a speci!icall delineated dut !ree encla"e and shall bedeemed to be !oreign territor !or the purposes o! trade operations and duties and tari!!s.
/. +oods going into the (ET area !rom D'A shall be treated as deemed exports and goodscoming !rom the (ET area into D'A shall be treated as i! the goods are being imported.
-. (ET units can be set up !or manu!acture o! goods and rendering o! ser"ices# production#processing# assembling# trading# repair# rema4ing# reconditioning# and re)engineering includingma4ing o! gold 5 sil"er5platinum Je&eller and articles thereo! or in connection there&ith.
. (ETs ma be set up in the public# pri"ate or Joint sector or b (tate +o"ernments
G. (ET should ha"e an area pre!erabl o! 1000 hectares
. (ET units &ould ha"e to be positi"e Net @oreign Exchange Earners and &ould not besubJect to an minimum "alue addition norms or export obligations.
H. 100 @DI &ould be permitted !or all in"estments in (ETs except !or acti"ities under thenegati"e list
. 'he 2inistr o! Commerce and Industr through issue o! a noti!ication can also con"ertthe existing Export Processing Tones $EPTs% into (ET.
,. 'he De"elopment Commissioner &ould be responsible !or administrati"e control o! the;one
India has o"er 10// (ET units currentl under the structural !ormatting. It has more than ,!ull !unctional (ETs and o"er H Export Processing Tones $EPTs% &hich ha"e beentrans!ormed into (ETs. Each entirel !unctional (ETs has a standard dimension o! /00
acres and are spread in di!!erent parts o! India.
'he need !or a (pecial Economic Tone &as reali;ed b India in April /000 in order toaugment the !oreign direct in"estment in the nation# to trigger its exports re"enues and topro"ide a global plat!orm to local !irms and manu!acturers. Indian go"ernment has al&asbeen upbeat about the expansion o! (ETs and to supplement their plans it has alsointroduced policies &hich are assessed on :uarterl basis. 'his ensures the suppl o!enough !acilities to the (ET de"elopers along &ith the !irms establishing their business unitsin it.
/. What is EPC+ scheme? What are the main pro"isions in the scheme? o& has the schemehelped in promoting export !rom our countr?
A. Export Promotion Capital +oods (cheme $EPC+% According to this scheme# a domestic manu!acturer can import machiner and plant &ithoutpaing customs dut or settling at a concessional rate o! customs dut. ut his underta4ingsshould be as mentioned belo&
10 times exports $on @O basis% o!CI@ "alue o! machiner.
Gears
Nil in case CI@ "alue is s/00mn ormore.
times exports $on @O basis% o!CI@ "alue o! machiner or G timesexports on $N@E% basis o! CI@"alue o! machiner.
ears
Nil in case CI@ "alue is sG0mn ormore !or agriculture# a:uaculture#animal husbandr# !loriculture#horticulture# poultr and sericulture.
times exports $on @O basis% o!CI@ "alue o! machiner or G timesexports on $N@E% basis o! CI@"alue o! machiner.
ears
Note>)• N@E stands !or net !oreign earnings.
• CI@ stands !or cost plus insurance plus !reight cost o! the machiner.
• @O stands !or @ree on oard i.e. export "alue excluding cost o! !reight and insurance.
'he scheme allo&s import o! capital goods !or pre production# production and post production$including CMD5(MD thereo! as &ell as computer so!t&are sstems% at G Customs dut subJect
to an export obligation e:ui"alent to times o! dut sa"ed on capital goods imported underEPC+ scheme to be !ul!illed o"er a period o! ears rec4oned !rom the date o! issuance o!licence. Capital goods &ould be allo&ed at 0 dut !or exports o! agricultural products and their "alue added "ariants.
o&e"er# in respect o! EPC+ licences &ith a dut sa"ed o! s.100 crore or more# the sameexport obligation shall be re:uired to be !ul!illed o"er a period o! 1/ ears.
In case CD is paid in cash on imports under EPC+# the incidence o! CD &ould not be ta4en!or computation o! net dut sa"ed pro"ided the same is not con"erted.
'he capital goods shall include spares $including re!urbished5 reconditioned spares% # tools# Jigs#!ixtures# dies and moulds. EPC+ license ma also be issued !or import o! components o! suchcapital goods re:uired !or assembl or manu!acturer o! capital goods b the licence holder.
(econd hand capital goods &ithout an restriction on age ma also be imported under theEPC+ scheme.
(pares $including re!urbished5 reconditioned spares%# tools# re!ractories# catalst andconsumable !or the existing and ne& plant and machiner ma also be imported under theEPC+ scheme.
'he !ollo&ing conditions shall appl to the !ul!illment o! the export obligation>)
1. 'he export obligation shall be !ul!illed b the export o! goods capable o! being manu!acturedor produced b the use o! the capital goods imported under the scheme.
'he export obligation ma also be !ul!illed b the export o! same goods# !or &hich EPC+ licensehas been obtained# manu!actured or produced in di!!erent manu!acturing units o! the licenseholder5speci!ied supporting manu!acturer $s%.
When Capital +oods are imported !or pre5 post) production or license is ta4en !or import o!spares# the license holder shall !ul!ill the export obligation b export o! products manu!actured!rom the plant 5 proJect to &hich the pre5 post) production capital goods5 spares are related.
'he import o! capital goods !or creating storage and distribution !acilities !or productsmanu!actured or ser"ices rendered b the EPC+ license holder &ould be permitted under the
EPC+ (cheme.
'he export obligation under the scheme shall be# o"er and abo"e# the a"erage le"el o! exportsachie"ed b him in the preceding three licensing ears !or same and similar products except !orcategories mentioned in andboo4 $ol.1%.
Alternati"el# export obligation ma also be !ul!illed b exports o! other good$s% manu!actured orser"ice$s% pro"ided b the same !irm5compan or group compan5 managed hotel &hich has theEPC+ license.
o&e"er# in such cases# the additional export obligation imposed under EPC+ scheme shall beo"er and abo"e the a"erage exports achie"ed b the unit5compan5group compan5 managed
hotel in preceding three ears !or both the original and the substitute product$s% 5ser"ice $s%e"en in cases &here the a"erage is exempt !or the substitute product $s%5 ser"ice $s% as gi"en inpara G.H. o! the andboo4 $ol 1%.
'he incremental exports to be !ul!illed b the license holder !or !ul!illing the remaining exportobligation can include an combination o! exports o! the original product5 ser"ice and thesubstitute product $s%5 ser"ice $s%. 'he exporter o! goods can opt to get the export obligationre!ixed !or the export o! ser"ices and "ice "ersa.
'he a!oresaid !acilities shall onl be a"ailable to manu!acturer exporters5 ser"ice pro"ider on allthe licences &here export obligation period including extended export obligation period is "alidon the date o! application. In this regard# exports made onl on or a!ter submission o!
application !or alternate item and5 or re)!ixation o! the export obligation based on dut sa"edamount &ill be ta4en into account !or !ul!illment o! export obligation.
/. 'he export obligation under the scheme shall be# in addition to an other export obligationunderta4en b the importer # except the export obligation !or the same product under Ad"ance=icense# D@C# DEP or Dra&bac4 scheme.
-. 'he export obligation can also be !ul!illed b the suppl o! I'A)1 items to the D'A pro"ided thereali;ation is in !ree !oreign exchange.
. Exports shall be phsical exports. o&e"er# deemed exports as speci!ied in paragraph ./$a%# $b%# $d%# $!%# $g% $J% o! Polic shall also be counted to&ards !ul!illment o! export obligation
along &ith the usual bene!its a"ailable under paragraph .- o! the Polic.
oalt paments recei"ed in !reel con"ertible currenc and !oreign exchange recei"ed !or D ser"ices shall also be counted !or discharge under the EPC+ scheme. Pament recei"ed inrupee terms !or the port handling ser"ices# in terms o! Chapter , o! the @oreign 'rade Policshall also be counted !or export obligation discharge under the (cheme.
8.- Describe "arious principal and auxiliar documents used in International trade.
In case exporters do not need inspection# exporter has to get inspection through pri"ateinspection agenc or an other arrangement agreed bet&een exporter and importer.
Insurance Polic Q terms and condition o! insurance o! goods
Open polic
is4 co"ered
Au4iliary docuent!:
&' Per%ora InvoiceIndicates details o! documents to be exported.O!!er to sell made b an exporter to importer.ecomes an export order once the o!!er is accepted b importer.
Prepared a!ter negotiation bet&een exporter and importer
(' Intiation %or in!pection
Prescribed !orm o! notice b export inspection agenc
Uou are an exporter o! +old and Diamond Le&eller in India. Approximatel G o! our productis sold in the domestic mar4et and 1G is being exported. Uou are not a"ailing an 4ind o!incenti"e !or our exports.
No& ou &ant to upgrade our production !acilit and also &ish to a"ail the incenti"es gi"en tothe exporter under @'P.
8uestion>Prepare a !easibilit report to ma4e our products more competiti"e in the export mar4et ba"ailing the pro"isions in the @oreign 'rade Polic
An!.er' A copre+en!ive )orei#n Trade Policy =)TP> %or (??7-?@ .a! announced on *&!tAu#u!t (??7 and it! Annual Suppleent %or t+e year (??9-? .a! relea!ed on&@t+ April (??9' T+e $a!ic o$Bective o% t+i! policy i! to dou$le t+e erc+andi!ee4port! $y (??@ and to ae e4port! an e%%ective in!truent o% econoic#ro.t+ $y #ivin# t+ru!t to eployent #eneration particularly in !ei ur$anand rural area! t+rou#+ a nu$er o% policy initiative!' T+e!e include!ipli%ication o% procedure! reduction in tran!action co!t neutraliation o% incidence o% levie! and dutie! on input! u!ed %or e4port! and developent o% #lo$al +u$! %or anu%acturin# tradin# and !ervice!' eepin# in vie. t+eintere!t! o% t+e doe!tic entrepreneur %arer! trader! a! .ell a! India;!international coitent! and $ilateral treatie! aendent!/c+an#e! inpolicy are ade %ro tie to tie a! and .+en t+e!e $ecoe nece!!ary inpu$lic intere!t'
It is important to ta4e an initiati"e to di"ersi! our export mar4ets and o!!set the inherentdisad"antage !or our exporters in emerging mar4ets o! A!rica# =atin America# Oceania and CI(
countries such as credit ris4s# higher trade costs etc.# through appropriate polic instruments.We ha"e endea"ored to di"ersi! products and mar4ets through rationali;ation o! incenti"eschemes including the enhancement o! incenti"e rates &hich ha"e been based on the percei"edlong term competiti"e ad"antage o! India in a particular product group and mar4et. Ne&emerging mar4ets ha"e been gi"en a special !ocus to enable competiti"e exports. 'his &ould o! course be contingent upon a"ailabilit o! ade:uate exportable surplus !or a particular product.
Additional resources ha"e been made a"ailable under the 2ar4et De"elopment Assistance(cheme and 2ar4et Access Initiati"e (cheme. Incenti"e schemes are being rationali;ed toidenti! leading products &hich &ould catal;e the next phase o! export gro&th.
On basis o! abo"e polic &e ha"e to increase the export o! out product according to it to a"ail
more bene!it.
1. Export to emerging mar4ets o! A!rica# =atin America# and Oceania> According to @'Pthere is more incenti"e to export in these countries.
2. 2anu!acturing *nit in semi urban and rural areas> generating emploment in theseareas b ha"ing manu!acturing unit &e can a"ail more bene!its.
3. 'o get the bene!it !rom 2ar4et De"elopment Assistance (cheme> We can ha"e morebene!its under this scheme i! &e &ill export more products.
4. 2ar4et Access Initiati"e (cheme> 'his is the scheme !or the initiati"e ta4er and &e canget more bene!its and incenti"e under this scheme.
Assignment C
1. (pecial Economic Tones &ere created to>)a% oost manu!acturing # Augment exports +enerate emplomentb% Promote production !or consumption in the domestic mar4etc% Promote import into the countrd% Promote imports !rom some special ;ones
/. *nder Ad"ance =icense goods imported cannot be used in the unit o!>)a% =icense older b% Lobberc% (upporting manu!acturer
-. Which o! the !ollo&ing is not a maJor !unction o! Export Promotion Council $EPC%
a% !ree on boardb% !or billingc% !ree original barbecued% @or on board
11. @ree alongside ship $@A(% means that...
a% ... the goods ha"e to be deli"ered b sailboat.b% ... the seller has to pa !or the transport until the goods are being unloaded
at the port o! destination. c% ... the goods don6t belong to anbod as long as the are alongside the
ship.d% ... the buer is responsible !or the transportation o! his goods as soon as
the are being loaded aboard.
1/. Which terms appl to DDP?
a% 'he seller pas all costs# including customs dut.b% 'he seller pas all the costs and bears the ris4 until the goods ha"e been deli"ered
on his side o! the border.c% 'he buer has to co"er all the costs# including marine insurance and customs dut.
d% 'he seller pas insurance and transport costs up to the port o! destination.
1-. 2atch the de!inition &ith the INCO terms>7'he seller pas the transport costs up to the port o! shipment. e bears the ris4 until the goodsha"e passed the ship6s rail at the port o! shipment.7
1G. Which o! the statement$s% about E3W is $are% true?
a% 'he buer pas transport costs !rom the seller6s premises on.
b) 'he seller ma4es the goods a"ailable at his premises.c% 'he buer ma4es the goods a"ailable at his premises.d% 'he seller pas the transport costs up to the port o! shipment.
1. Which o! the !ollo&ing is a regulator Document?a% Pac4ing =istb% (hipping Instructionsc% Insurance Declarationd% + @orm
1H. In case o! pament through open account# pament is madea% Immediatel on deli"er o! goodsb% In ad"ance be!ore deli"er o! goodsc% At a !uture dated% 'hrough barter sstem
1. When pament is made through =etter o! credita% Exporter has minimum ris4b% Exporter has maximum ris4c% Importer has minimum ris4d% Importer has maximum ris4
1,. In case o! pament under D5A goods are deli"ereda% e!ore pament is madeb% A!ter pament is madec% On maturit o! dra!t
/0. Which o! the !ollo&ing document is issued b the 2ate Chie! O!!icer o! the ship toac4no&ledge the loading o! cargo on the ship?
a% 2ateRs eceiptb% (hipping Instructionc% (hipping Order d% (hipping Ad"ice
/1. As per the pro"isions in the @oreign 'rade Polic o! India 2inimum si;e o! the (ET shall notbe less than 1000 hectares expect
a% existing EPTs con"erted into (ETsb% product speci!ic (ETs or c% port5airport based (ETs# on a case to case basisd% (ET set up b state go"ernment
//. *nless other &ise speci!ied in a =etter o! Credit &hich is issued subJect to *CPDC G00 andalso *CPDC 00# documents must be presented !or negotiation &ithin )))))) das !rom the dateo! shipment>
a% 10 dasb% H dasc% 1G dasd% reasonablee% /1 das
/-. Which o! the !ollo&ing is not true regarding an AW?
a% It is prima !acie e"idence o! receipt o! cargo.b% It is a document o! title to goods.c% 'he date o! dispatch indicated on the AW &ill be deemed to be the date o!
shipmentd% AW ser"es as an instruction sheet gi"ing all the instruction needed !or mo"ing the
goods.e% AW is made out in three originals
/. Premier 'rading ouse should ha"e minimum export per!ormance o! s.FFFFFFFF.
a% 10000 Crsb% HG00 Crsc% G000 Crsd% ,000 Crs
/G. *nder 2ar4et De"elopment Assistance +o"ernment does not pro"ides
a% Expenses !or participation in trade !airs abroadb% Expenses !or participation in buer 5sellers meetc% @oreign tra"eld% Importing Capital +oods
/. Which o! the !ollo&ing bene!its are not gi"en to (tar Export ouses are
a% Custom clearances on (el! Declaration basisb% @ixation o! Input)Output norms on priorit &ithin 0 das
/H. Which o! the !ollo&ing is not a tpe o! letter o! credita% e"ocable =etter o! Creditb% (tandb =etter o! Creditc% 2o"ing =etter o! Creditd% ac4)to)bac4 =etters o! Credit
/,. Export Promotion Capital +oods scheme helps in promoting througha% Import o! Capital +oodsb% Import o! ra& materialc% Participation in trade !airsd% Export o! capital goods
-0. ObJecti"e o! DEP is to
a) Allo& dut !ree import o! inputs &hich are phsicall incorporated in export product
b) Neutrali;e incidence o! customs dut on import content o! export productc% Pro"ide assistance to states !or export promotion acti"itiesd% Control dumping in the India
-1 'ripur in 'amil Nadu is 'o&n o! Export Excellence !ora% osier Productsb% (ea !oodc% andicra!tsd% Coir Products
-/. 2ain obJecti"e o! (er"ed !rom India (cheme is to promote export o!a% (er"icesb% 'eac% Co!!eed% andicra!ts
--. ObJecti"e o! M+*U is to promote exports o! a% Engineering Productsb% 2inor @orest Produce and their "alue added "ariantsc% Chemical Productsd% 2arine Products
-. D+@' helps in promoting export !rom India ba% Implementing the @oreign 'rade Polic5Exim Policb% Collects !oreign 'rade statisticsc% Issues licenses to exporters and monitors their corresponding obligationsd% @acilitating exporters in regard to de"elopments in international trade i.e. W'O
agreements# ules o! Origin and (P( re:uirements# anti)dumping issues# etc
a% the tpe and :uantit o! the goods to be shippedb% "alue o! the goodsc% total cost o! the transaction based on the terms o! saled% details that are re:uired !or negotiation 5 collection o! the shipping documents
-. Consular In"oice isa% "eri!ied b Embassb% Prepared as per the !ormat o! the customs authorit o! the importing countrc% Prepared in consultation &ith the ban4d% Prepared !or the 2inistr o! commerce
-H. An EO* ma opt out o! the scheme &ith appro"al o!a% De"elopment Commissioner b% Commerce 2inister c% Directorate +eneral o! @oreign 'raded% +o"ernor# I
-. 2ar4et De"elopment Assistance is gi"en to Exporters ha"ing annual Export turno"er up tos.FFFFFFFF.
a% G Crsb% 1G Crsc% 10 Crsd% /G Crs
-,. A &hole range o! acti"ities that can be !unded under 2AI scheme includes>a% (etting up o! sho&room 5 &arehouseb% (ales promotion campaignsc% Import o! capital goodsd% International departmental stores
0. 'o encourage (tate +o"ernments to participate in promoting exports !inancial assistance isadministered b Department o! Commerce $DoC% to
a% De"eloping in!rastructure such as roads connecting production centers &ithports#
