Shipping and Customs Formalities

Shipping and Customs Formalities
 

According the Section 40 of the Customs Act, the person in-charge of the conveyance vessel, vehicle, aircraft, etc., cannot permit loading of export cargo at the Customs Station unless and until a formal permission to the export given by the authorised Customs Officer is presented.

Before granting the permission, the Customs Officer ensures that the goods being exported are in accordance with different regulations, particularly in terms of the following:

(a) The exporter. goods are of the same type sort and value as have been declared by the exporter.

(b) The duty or cess leviable thereon has been properly determined and paid.

(c) Provisions of Export (Control) Order, Export (Quality Control and Inspection) Act and Foreign Exchange (Regulation) Act are complied with.

The Procedure for shipping and customs clearance is as under:

 

(a) Preparation and Submission of Export Documents: For the clearance of cargo from customs, the exporter or his agent is required to submit the following set of documents along with five copies of shipping NI to the Customs Appraiser at the Customs House.

Letter of Credit along with export contract or export order.

Commercial Invoice (2 copies)

Packing List or Packing Note.

Certificate of Origin.

GR Form (original and duplicate)

ARE-I Form.

Original copy of Certificate of Inspection, where necessary.

Marine Insurance Policy.
 

(b) Verification of Documents: The Customs Appraiser verifies the details listed in each document and ensures that all the formalities relating to exchange control, pre-shipment inspection and licensing have been complied with by the exporter. If satisfied, he issues a 'Shipping Bill Number', which is very important from exporter's point of view.
 

 

(c) Valuation of the Goods: The Customs Appraiser assesses the shipping bill and values the goods. The value of goods as determined by the Customs Appraiser is considered for all future transactions, especially for the claim of Incentives. All documents are returned to the exporter or his agents except:

Original copy of GR to be forwarded to the RBI.

Original copy of Shipping Bill.

One copy of Commercial Invoice.

The validity of assessed shipping bill is for one month only. If the exporter fails to deliver the goods in that period, he will have to undergo the above procedure again.
 

(d) Obtaining 'Carting Order' from the Port Trust Authorities: The C&F agent, then, approaches the Superintendent of the concerned Port Trust for Obtaining the 'Carting Orders for moving the cargo inside the dock. After obtaining the Carting Order, the cargo is physically moved into the port area and stored in the appropriate shed.
 

 

(e) Customs Examination and Issue of 'Let Export Order': The Customs Examiner at the port of shipment physically examines the goods and seals the packages in his presence. The same can be arranged for at the factory or warehouse of the exporter by making an application to the Assistant Collector of Customs. The Customs Examiner, if satisfied, issues a formal permission for the loading of cargo on the ship in the form of a 'Let Export Order'. The above procedure is now processed through Electronic Data Interchange (EDI) System.
 

(f) Obtaining 'Let Ship Order' from the Customs Preventive Officer: 'Let Export Order' must be supplemented by a 'Let Ship Order' issued by the Customs Preventive Officer. The C&F agent submits the duplicate copy of Shipping Bill, duly endorsed by the Customs Examiner, to the Customs Preventive Officer who endorses it with the 'Let Ship Order'.
 

 

(g) Obtaining Mate's Receipt and Bill of Lading: The goods are then loaded on board the ship for which the Mate or the Captain of the ship issues Mate's Receipt to the Port Superintendent. The Port Superintendent, on receipt of port dues, hands over the Mate's Receipt to the C&F Agent. The C&F Agent surrenders the Mate's Receipt to the Shipping Company for obtaining the Bill of Lading. The Shipping Company issues two to three negotiable and two to three non-negotiable copies of Bill of Lading.

 
 

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