What is LET EXPORT order in export trade?


The information provided here is part of Online export import business guide course

Let us learn this interesting topic ‘Let Export Order’ and how does it work in an export trade.

What is LET EXPORT ORDER in Export in India? How to obtain ‘Let Export Order’.

Let Export Order is the final export legal procedure to move goods out of India under Export shipment. This procedure is to be completed with Indian Customs Department by assessing the value of goods and inspection of goods to be exported.

Let us discuss ‘Let Export Order’ in simple language.

As you are aware, any cargo crossing out of boarder of a country has to be regulated or monitored by government of each country. The government authority involved to handle export import trade in a country is Customs department of such country. The cargo to be exported can be moved out of country, only after completion of necessary legal export customs formalities of exporting country.

Let us find, what happens in customs while filing shipping documents.

You may appoint a customs house agent to handle your export shipments smoothly. As per government, it is not necessary to appoint a customs house agent (CHA), exporter can directly complete the customs procedures and formalities . However, in order to save time and concentrate in export business, most of the exporters appoint clearing and forwarding agents (customs house agents).

Once you (exporter) have prepared commercial invoice and packing list, you deliver the same with a declaration called SDF to your appointed Customs House Agent. Now days, the filing of shipping documents can be done through on line 24 hours a day. Normally, CHA will have the said software downloaded in their office or residence to save maximum time for exporters and serve better. Once after receiving the invoice, packing list and SDF declaration, Customs House Agent files shipping bill online. The generation of shipping bill is a centralized process which is automatically generated serial wise at one place in the country, as all customs offices are linked with this location.

Once after filing shipping bill with customs, cargo is moved to the airport, sea port, or CFS where in customs facility available to complete export procedures. The slot to unload cargo has to be discussed with carriers, because different carriers may have their own different handling locations under customs bonded area. The cargo isWhat is LET EXPORT order in export trade unloaded at the allotted slot, the CHA or you (exporter) approaches customs inspector to register goods online for inspection of cargo. The inspector physically inspect the cargo and makes sure that you (exporter) are exporting the cargo as per shipping documents and verifies quantity, marks and numbers and other required parameters. After physical inspection of cargo, examiner/ inspector of customs prepares inspection report online and await to get approval from appraising officer of goods or higher officials of customs by online. The value of goods is assessed by appraiser. Means, the value you (exporter) have mentioned in your invoice should not be abnormal with market price. Means, either should not be too law or too high.

Why should exporter declare market value of goods in documents for Exports and Imports?

Some of the importing countries levy tax/duty against the products importing to their country. If your product falls under that category, and you have under invoiced to save duty/tax for your overseas buyer, you will be penalized.

As you are aware, exporter avails various export benefits on value basis. If any export benefit is provided on the basis of value of goods, a possibility of manipulation on documents by over invoicing are there. Here, exporter declares value higher than their actual sales and avails government export benefits. Am I right?

Ok, let us come back to procedures on ‘Let export order’. Once after assessment and inspection completed, the report will be updated with the computer system and customs allows the said goods to move out of country by mentioning as ‘Let Export’. This is widely called as “Let export order”. Then, the prints out of shipping bill is generated under the said shipment and signs physically by the authorized customs officials.

The physical copies of original shipping bill contain exchange control copy and shipping bills for transporters who move the cargo to ship or air. Once after cargo moved out of country, the carrier of goods files with customs, brief details of goods exported. This document is called Export General Manifest (EGM. Based on Export General Manifest, the customs officials issue proof of export of shipping bill called Export Promotion copy of shipping bill. Customs also duly signs, the required central excise documents like ARE etc., EP copy of shipping bill is the proof of export of customs document, which is required for exporters to claim any incentives or other financial assistance from various government agencies.  Also read  Export customs clearance procedures and formalities in India       When does exporter get EP copy of shipping bill after customs clearance

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The above information is a part of Guide on howtoexport and import 

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Pooja shedge: what is form 13 filed at the time of containers are gated in the terminal

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venkat jangala : Sir, this is venkateshwarlu.I done online purchase.My order no is1801206332 and tracking no is RF519495165SG.presently customs hand in chennai.so please tell how I will take my order from customs.what I will do sir. Thanking sir, Venkateshwarlu

VINOD KUMAR YADAV : Sir, I am interested to take CHA as a career in customs department. Please tell me details of career prospects and average income of CHA in India.

Alok Mishra: Good Morning, we have goods for exports and the same was "Let export". Customer in the mean time cancelled the contract and we had to return the goods back to the factory from the Dry port. Please advise procedure for the same. Do we have to file Bill of Entry?

Shakir Warshi: what is G/F pending after LEO ready

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