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Flow Chart

FLOW CHART FOR EXPORTS

MOVEMENT OF AN EXPORT CONSIGNMENT FROM FACTORY ONWARDS

PRODUCT: PHARMACEUTICALS

 

STEP I:

Goods readiness & documentation

§ Once the goods are ready duly packed in cases/cartons (depending upon the mode of dispatch), the Invoice is prepared by the Exporter.

§  If the number of packages is more than one, a packing list is also required 

§  Even If the goods to be exported are excisable, no excise duty need be charged at the time of Export, as export goods are exempt from Central Excise, but the ARE-I (earlier AR4) procedure is to be followed for claiming such an exemption. 

§  Similarly, no VAT is payable for export of goods. Exporters applies for exemption through VAT Form 15 or CST Form H.

§  Exporters applies for Certificate of Origin (Non –Preferential)or Preferential ,if required by buyer.

§  In case of non-schedule drug, No Objection Certificate is obtained from the office of the State Drug Controller.

§  All the cartons are marked by stencil and numbers in increasing order are given.

§  Bar codes are pasted on cartons giving all the details.

§ Airway Bill/ Shipping Bill number is written on the cartons. AWB stickers issued by airlines/ freight forwarder are pasted on cartons.

 

STEP II :

Goods removal from works

There are different procedures for removing Export consignments to the Port, following the ARE I procedure, but Factory stuffing under Excise Supervision is preferred so that physical inspection by Customs authorities at the Port can be avoided.

If export consignments are removed from the factory of manufacture, following the ARE-I procedure, claiming exemption of excise duty, there is an obligation cast on the exporter to provide proof of export to the Central Excise authorities

 

STEP III :

Documents for Clearing & Forwarding agent

§ The Exporter provides the following documents to the Clearing & Forwarding Agents, who are entrusted with the task of shipping the consignments, either by air or by sea.

§  Invoice or Invoice-cum-packing list

§  Packing List ( if not with invoice)

§  ARE- I copy (For excisable products)

§  Any other declarations, as required by Customs

 

STEP IV:

Customs Clearance EDI

§ After receiving documents from exporter, Customs broker files shipping bill through customs online software system electronically. This can be done at home, office or private EDI (electronic data information) centers appointed by government, as the filing software can be downloaded from ICEGATE electronically. The generation of shipping bill number is as per serial order all over the country, as the said software is a centralized one.

§ The agents are required to file with Customs the shipping documents, through a particular format, which will vary depending on the nature of the shipment. Broad categories of export shipments are:

§  Shipping Bill for export of duty free goods.

§  Shipping bill for export of goods under claim for duty drawback.

§  Shipping bill for export of duty free goods ex-bond i.e. from bonded warehouse.

§  Shipping Bill for export of dutiable goods.

 

STEP V:

Arrival of Goods at Docks

On the basis of declaration and check List, goods are allowed enter into the Dock. For this, TC is generated, which requires S/B No., date and name of driver and vehicle number which is to carry the cargo to the port.

In order to avoid rush at the port, time slot is taken in advance during which cargo is required to be reached at the port. At this stage the port authorities check the quantity of the goods with the documents. Cargo is weighed by the port staff which is to be matched with the weight declared in P/L and S/B.

A No Objection Certificate is required to be obtained from the office of Drug Controller at port, who is empowered to examine the documents. The following documents are put for obtaining NOC :

    (i)        Duly filled-in and signed form commonly known as ADC Sheet

  (ii)        Copy of manufacturing licence

 (iii)     Copy of Export NOC already obtained from the office of the State Drug Controller (in case of non-schedule drugs)

 (iv)        Sample of Export Product

  (v)        Copy of blister pack, cartons, inserts etc.

 (vi)        In case, these documents are in language other than English, translation thereof

 

STEP VI:

Let Export Order

After the receipt of the goods in the dock, CHA contact the Customs Officer designated for the purpose and present the checklist with the endorsement of Port Authority and other declarations along with all original documents. Customs Officer may verify the quantity of the goods actually received and thereafter mark the Electronic Shipping Bill and also hand over all original documents to the Dock Appraiser, who may assign a customs officer for the examination of the goods. If the Dock Appraiser is satisfied that the particulars entered in the system conform to the description given in the original documents, he proceeds to allow "let export" for the shipment. 

If the goods are cleared by manufacturer for export, the goods are to be accompanied by ARE-1 (earlier AR-4). This form is submitted to customs authorities. The Customs Officer certifies that the goods under this form have indeed been exported. This form has then to be submitted to Maritime Commissioner for obtaining ‘proof of export’. The bond executed by Manufacturer-exporter with excise authorities is released only when ‘proof of export’ is accepted by Maritime Commissioner or Assistant Commissioner, where bond was executed.

 

STEP VII:

Loading of Goods

The exporter or export agent hand over the exporter’s copy of the shipping bill signed by the Appraiser “Let Export" to the steamer agent. The agent then approaches the proper officer for allowing the shipment. The Customs Preventive Officer supervising the loading of container and general cargo in to the vessel may give "Shipped on Board" approval on the exporter’s copy of the shipping bill.

 

STEP VIII:

Once the goods are loaded into the ship,a receipt called ‘Mate’s Receipt ’is issued by the captain to the ship superintendent of the port.

 

STEP IX:

The port charges are calculated and handover to the exporter /C&F agent.

 

STEP X:

After making the port payments , the C&F agent or exporter gets the Bills of Lading or Airway Bill from the official agent of the shipping company or the airline

 

STEP XI:

Export General Manifest – EGM

After obtaining the prints – hard copy - of said original shipping bills, the respective customs officials involved in the said process signs on the shipping bills and return to the exporter or their appointed Customs House Agent. Once after movement of goods from exporting country, the shipping carrier files necessary export general manifest (EGM) with customs and based on the same, customs department issue proof of export – Export promotion copy of shipping bill.

 

STEP XII:

Generation of Shipping Bills:

The Shipping Bill is generated by the system and the copies are then signed by the Custom officer and the Custom House Agent.

 

STEP XIII:

Document Forwarding:

§  After completing the shipment formalities, the C & F Agents are expected to forward to the Exporter the following documents:

§  Customs signed Export Invoice & Packing List 7

§  Shipping Bill/ Bill of Exports

§  Bill of Lading or Airway bill, as the case may be.

 

STEP XIV:

Bills negotiation

With these authenticated shipping documents, the Exporter will have to negotiate the relevant export bill through authorized dealers of Reserve Bank, viz., Banks within 21 days from the date of exports .

 

STEP XV:

Bank To bank documents forwarding

The negotiating Bank will scrutinize the shipping documents and forward them to the Banker of the importer, to enable him clear the consignment.

It is expected of such authorized dealers of Reserve Bank to ensure receipt of export proceeds, which factor has to be intimated to the Reserve Bank by means of periodical Returns.

 

STEP XVI:

Customs obligation discharge

Exporters are also expected to provide proof of export to the Central Excise authorities, on the basis of the Customs endorsements made on the reverse of AREs and get their obligation, on this score, discharged.

 

STEP XVII:

Receipt of Bank certificate

Authorized dealers issue, e BRC once the payment is received and only with the issuance of the e BRC, the export transaction becomes complete.

 

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