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This is a simple question, but an interesting one. Do you know the meaning of Exports? I guess more than 95% of you do not . Read this article and ask yourself - ‘Did I know till reading this page?’
Almost all of us know the meaning of exports in general terms is ‘ any goods moved out of the country is called exports’. But some of you who studied academically about exports may say, ‘ If any goods crossing border of a country is called exports’.
In India, “as per section 2(18) of Customs Act defines "export" as meaning, with its grammatical variations and cognate expressions, taking out of India to a place outside India”.
Ok, Let me explain with an example. An exporter moves cargo from New Delhi to Mumbai port after completing necessary legal customs export formalities and obtaining ‘let export order’. The cargo was loaded in to a container and confirms ‘On board’ the Vessel. The Vessel carrying the said cargo sails from the land of Mumbai port. It is clear that the cargo crossed out the land border of India. Based on the above definition, can we call ‘exports’ now? Answer is ‘No’. Why?
Although the cargo crossed out the land border of India, it has not been moved outside ‘India’. Why?.
Export means ‘taking out of India to a place outside India'. Here we need to find out the definition of ‘India’. 'India' is defined in section 2(27) of Indian Customs Act ‘to include the territorial waters of India’. Then what is the territorial waters limit of India? Territorial water is up to 12 nautical miles (1 nautical miles = 1.852 kilo meters) in to the sea from the coast of India.
In the above example, once after moving vessel carrying the said cargo cross 12 nautical miles in to the sea from the coast of Mumbai port, we can call the said shipment “exported”.
I would like to conclude the article as below:
a) Export means ‘Taking out of India to a place outside territorial waters of India which is 12 nautical miles into the sea from the coast of India”. (This definition is redefined by the author of this blog)
b) Import means ‘Bringing in to India from a place inside territorial waters of India which is 12 nautical miles in to the sea from the coast of India’ (Redefined by the author of this blog.) The liability to pay import duty commences as soon as the goods entered 12 nautical miles in to the sea from the coast of India.
Update: For the purpose of determination of rate of customs duty, concept of territorial waters limit is not relevant.
To know more about the term ‘ Export’ , ‘Import’, ‘Territorial water of India’ etc. read the following court judgments:
Judgement about Export,Import and Territorial waters of India -1
http://www.howtoexportimport.com/Judgement-about-Export-Import-and-Territorial-wate-256.aspx
Judgement about Export,Import and Territorial waters of India -2
http://www.howtoexportimport.com/-Judgement-about-Export-Import-and-Territorial-wat-257.aspx
Judgement about Export,Import and Territorial waters of India -3
http://www.howtoexportimport.com/Judgement-about-Export-Import-and-Territorial-wate-258.aspx
Judgement about Export,Import and Territorial waters of India -4
http://www.howtoexportimport.com/Judgement-about-Export-Import-and-Territorial-wate-259.aspx
Judgement about Export,Import and Territorial waters of India -5
http://www.howtoexportimport.com/Judgement-about-Export-Import-and-Territorial-wate-260.aspx
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