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³EXPORT AND IMPORT DOCUMENTATION AND

PROCEDURE´

SUMMER TRAINING REPORT

Roll No:- 361

Batch:- 2009-2011(IV)

In partial fulfillment of the r equir ements f or Master Of Management Studies (MMS) two Year

Full Time Degr ee Course.

R ajiv Gandhi Institute of Technology,

De pt. of Management Studies

(Affiliated to University of Mumbai)

Year 2010



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DECLARATION

I declar e that this r e port entitled µExport and Import Documentation and Procedure ¶ is my

original work and not co pied fr om elsewher e nor su bmitted s bef or e f or any degr ee, diploma or

course to any Institute or University and due acknowledgement has been given in the

bi bliography to all sources be they printed, electr onic or personal.

Name of the Student: - FENALI BHAGAT

Roll No :- 361

Signatur e :-

Date:-



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ACKNOWLEDGEMENT

I EXPRESS MY SINCERE THANKS TO DR.UDHAV BHOSALE, PRINCIPAL OF

RAJIV GANDHI INSTITUTE OF TECHNOLOGY AND MANAGEMENT FOR HIS

VALUABLE SUGGESTIONS AND TO PREPARE THIS PROJECT.

HERE, I WOULD LIKE TO TAKE THIS OPPORTUNITY TO THANK THOSE

PEOPLE WITHOUT THE HELP OF WHOM IT WOULD NOT HAVE BEEN

POSSIBLE TO COMPLETE THIS PROJECT SUCCESSFULLY.

I WOULD LIKE TO EXPRESS MY SINCERE THANKS TO MR. SUNIL LULLA FOR

GIVING ME AN OPPORTUNITY TO WORK IN EROS INTERNATIONAL MEDIA

LIMITED.

I WOULD ALSO LIKE TO THANK MR. FAROOQ GANDHI AND MR. ANAND

SHANKAR AND MRS. SUNDARI RAMAMURTHY FOR PROVIDING ME WITH THE

CURRENT INFORMATION REGARDING THE TOPIC ³EXPORT AND IMPORT

DOCUMENTATION AND PROCEDURE´, AND IN EXPLAINING THE CONCEPTS

AND CLEARING ALL THE DOUBTS REGARDING THE PROJECT.

FINALLY IT IS MY FOREMOST DUTY TO THANK ALL OUR RESPONDENTS WHO

HELPED ME TO COMPLETE THE PROJECT IN SOME OR THE WAY WITHOUT

WHICH THE PROJECT MIGHT NOT HAVE BEEN SUCCESSFUL.



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CONTENTS

Particulars Page No

1.) Introduction

a) Im portance / Significance of the to pic studied

b) O b jectives / Sco pe of the study

2.) Review of Literature

Conce ptual / Theor etical backgr ound of the to pic

3.) A bout the organisation

4.) Findings and Analysis

5.) Conclusion

6.) Bibliography



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ER OS INTER NATIONAL LTD.

CHAPTER 1:- INTR ODUCTION

IMPOR TANCE / SIDNIFICANCE OF SUBJECT STUDIED.

INTRODUCTION ON EXPORTS & IMPORTS

Definition :-

As per Sec 2(e) of the Indian For eign Trade Act(1992), the ter m µEXPOR T¶ may be defined as,

³an act of taking out of India any goods by land , sea or air with pr o per transaction of money.´

³EXPOR TER ́ , means a person who ex ports or intends to ex port and holds an Im porter -

Ex porter Code number (IEC) unless otherwise specifically exem pted.

³Manufactur er Ex porter´, means a person who ex port goods manufactur ed by him or intends to ex port such goods.

³Merchant Ex porter´, means a person engaged in trading activity and ex porting or intending to

ex port goods.

³IMPOR TER ́ means a person who im ports or intends to im port and holds an Im porter -Ex porter

Code Number .

Since 4th

July, 1991 the government of India has made major changes in the Trade policy. The

First five year For eign Trade Policy,2009-14 r einf orces the dir ections set by these Trade Policy

Ref or ms.

The fundamental f eatur e of the policy is freedom. It su bstantially eliminates licensing,

quantitative r estrictions and other r egulatory and discr etionary contr ols both f or im ports and

ex ports.

All goods may be ex ported fr eely without any r estriction exce pt in cases wher e they ar e

r egulated by the pr ovisions of the modified For eign Trade Policy 2009-14.

The item- wise Ex port and Im port Policy shall be , as specified in the book titled ³ITC (HS)

Classifications of Ex port and Im port Items´ pu blished and notified by the Dir ector General of For eign Trade as amended fr om time to time.

Any goods, ex port or im port of which is r estricted under ITC (HS) may be ex ported or im ported

only in accordance with an Authorization or in ter ms of a pu blic notice issued in this r egard.



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WHY NEED TO EXPORT?

Ther e ar e many good r easons f or ex porting:-

The first and the primary r eason f or ex port is to earn f or eign exchange. The f or eign

exchange not only brings pr ofit f or the ex porter but also im pr oves the economiccondition of the country The com panies that ex port their goods ar e believed to be mor e r elia ble than their

counterpart domestic com panies assuming that ex porting com pany has survive the test

in meeting international standards.

Fr ee exchange of ideas and cultural knowledge o pens up immense business and trade

o pportunities f or a com pany.

As one starts visiting customers to sell one¶s goods, he has an o pportunity to startex ploring f or newer customers, state-of -the-art machines and vendors in f or eign lands.

By ex porting goods, an ex porter also becomes saf e fr om offset lack of demand f or

seasonal pr oducts.

In the age of globalization and li beralizations, Ex port has become most lucrative

business in India.

Also if the pr oduct is successful in domestic mark et then it would be successful in

international mark et&

A unique pr oduct may have little com petition and the demand f or it may be high.



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OBJECTIVES OF EXPORT

The ob jectives of ex port ar e as f ollows:-

Conduct r esearch on f or eign mark et.

Overseas design and pr oduct must be studied pr o per ly and consider ed car efully.

Specific laws dealing with international trade and f or eign business must be studied.

Price is an im portant factor .

Identify what you want to achieve fr om ex porting.

List activities you need to undertak e to achieve these ob jectives.

It includes mechanisms f or r eviewing and measuring pr ogr ess.

Hel ps you r emain f ocused on your goals.



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SWOT ANALYSIS OF EXPOR TS

SWOT analysis is a useful method of summaries all the inf or mation generated during the ex port

planning. SWOT stands f or str engths, weakness, o pportunities and thr eats, which hel ps to isolate

the str ong and weak ar eas within an ex port strategy. SWOT also indicates the futur e

o pportunities or thr eats that may exist in the chosen mark ets and is instrumental in strategyf or mulation and selection.

Str engths

Business str engths ar e its r esources and capa bilities that can be used as a basis f or develo ping acom petitive-advantage. Exam ples of such str engths include:

y Patentsy Str ong brand names.

y Good r e putation among customers. y Cost advantages fr om pr o prietary know-how. y Exclusive access to high grade natural r esources. y Favora ble access to distri bution networks.

Weaknesses

The a bsence of certain str engths may be viewed as a weakness. For exam ple, each of the f ollowing may be consider ed weaknesses:

y Lack of patent pr otection. y A weak brand name. y Poor r e putation among customers.

y High cost structur e. y Lack of access to the best natural r esources.

y Lack of access to k ey distri bution channels.



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Opportunities

The external envir onmental analysis may r eveal certain new o pportunities f or pr ofit and gr owth.

Some exam ples of such o pportunities include:

y An unfulfilled customer need. y Arrival of new technologies.

y Loosening of r egulations. y Removal of international trade barriers.

Threats

Changes in the external envir onmental also may pr esent thr eats to the fir m. Some exam ples of such thr eats include:

y Shifts in consumer tastes away fr om the fir m's pr oducts

y Emergence of su bstitute pr oducts. y New r egulations.

y Incr eased trade barriers

A SWOT analysis can be very su b jective, and is an excellent tool f or indicating the negative

factors first in order to turn them into positive factors.



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2. REVIEW OF LITERATURE

Conceptual and theoretical background of the subject studied

EXPORT DOCUMENTS & PROCEDURE

EXPORT LICENCE

Application f or ex port license:-

An ex porter must classify the item by identifying what is called as ITC (HS) classifications.

Ex port license is only issued f or the goods mentioned in the schedule 2 of ITC (HS)classifications of Ex port and Im port items. Application to the Dir ector General of For eign Trade

(DGFT) is to be given.

EXPORT ORDERING

An order is a commercial transaction which is not only im portant to the ex porter and im porter,

but it is also of concern to their r espective countries, since it aff ects the balance of payment

position of both the countries.

The ex porter is r equir ed to pr oduce co pies of ex port order to various Government de partments/

Financial institutions e.g. obtaining ex port licenses when the pr oduct is cover ed under the

r estricted items or canalized items f or ex ports, availing post- shipment finance and other

incentives and dealings with inspection authorities, insurance underwriters, customs offices and

exchange contr ol authorities etc. f or various purposes.



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EXPORT PROCESS

The ex port pr ocess has thr ee stages: f easi bility analysis; planning f or eign mark et entry; andIm plementation. The ste ps in these stages ar e outlined below:-

Feasibility analysisy Analyze domestic perf or mance.

y Assess the fir m¶s capacities.

y Consider the demographics, social, political, and economic factors of target mark ets.

y Conf er with international trade ex perts (e.g. in the fields of mark eting, finance, legal,

y and logistics).

y Select target mark ets

Planning foreign market entry planning

y Conduct mark et r esearch into the industry sector .

y Evaluate mark et r esearch.

y Decide how the pr oduct will be mark eted. y Com ply with target country licensing, standards and certification r equir ements.

y Apply f or the necessary patent, trademark, and co pyright pr otection.

y Identify taxes, tariffs, duties, quotas, or other non-tariff trade barriers.

y Esta blish pricing schedule.

y Seek financing.

Implementation

y Deter mine methods of distri bution.

y Im plement mark eting plan.

y Choose sales r e pr esentatives, or sales methods.

y Negotiate sales contract.

y Pr oduce finished pr oduct.

y O btain insurance cover .

y Com plete the r equir ed paperwork .

y Package and la bel the pr oduct.

y Ship the pr oduct.



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EXPORT PROCESS

In India custom clearance is a com plex and time taking pr ocedur e that every ex porter face in hisex port business. Physical contr ol is still the basis of custom clearance in India wher e eachconsignment is manually examined in order to im pose various types of ex port duties. High

im port tariffs and multiplicity of exem ptions and ex port pr omotion schemes also contri bute incom plicating the documentation and pr ocedur es. So, a pr o per knowledge of the custom rules and

r egulation becomes im portant f or the ex porter . For clearance of ex port goods, the ex porter or ex port agent has to undertak e the f ollowing pr ocess:-

Registration Any ex porter who wants to ex port his goods need to obtain PAN based Business Identification Number (BIN) fr om the Dir ectorate General of For eign Trade prior to filing of shipping bill f or

clearance of ex port goods. The ex porters must also r egister themselves to the authorized f or eignexchange dealer code and o pen a curr ent account in the designated bank f or cr edit of any

draw back incentive.

Registration in the case of ex port under ex port pr omotion schemes: All the ex porters intending to ex port under the ex port pr omotion scheme need to get their

licenses / DEEC book etc.

Processing of Shipping Bill - Non-EDI (Electr onic Data Interchange):-

In case of Non-EDI, the shipping bills or bills of ex port ar e r equir ed to be filled in the f or mat as pr escri bed in the Shipping Bill and Bill of Ex port (For m) r egulations, 1991. An ex porter need to

apply diff er ent f or ms of shipping bill/ bill of ex port f or ex port of duty fr ee goods, ex port of dutia ble goods and ex port under draw back etc.

Pr ocessing of Shipping Bill - EDI: Under EDI System, declarations in pr escri bed f or mat ar e to be filed thr ough the Service Centersof Customs. A check list is generated f or verification of data by the ex porter/CHA. After

verification, the data is su bmitted to the System by the Service Center o perator and the System generates a Shipping Bill Number, which is endorsed on the printed check list and r eturned to the

ex porter/CHA. For ex port items which ar e su b ject to ex port cess, the TR-6 challans f or cess is printed and given by the Service Center to the ex porter/CHA immediately after su bmission of

shipping bill. The cess can be paid on the str ength of the challan at the designated bank . No co pyof shipping bill is made availa ble to ex porter/CHA at this stage.

Quota Allocation

The quota allocation la bel is r equir ed to be pasted on the ex port invoice. The allocation number of AEPC (Appar el Ex port Pr omotion Council) is to be enter ed in the system at the time of shipping bill entry. The quota certification of ex port invoice needs to be su bmitted to Customs

along-with other original documents at the time of examination of the ex port cargo. For deter mining the validity date of the quota, the r elevant date needs to be the date on which the full

consignment is pr esented to the Customs f or examination and duly r ecorded in the Com puter System.



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Arrival of Goods at Docks: On the basis of examination and inspection goods ar e allowed enter into the Dock . At this stage

the port authorities check the quantity of the goods with the documents.

System Appraisal of Shipping Bills:

In most of the cases, a Shipping Bill is pr ocessed by the system on the basis of declarations made by the ex porters without any human intervention. Sometimes the Shipping Bill is also pr ocessedon scr een by the Customs Officer .

Customs Examination of Export Cargo: Customs Officer may verify the quantity of the goods actually r eceived and enter into the system and ther eafter mark the Electr onic Shipping Bill and also hand over all original documents to the

Dock Appraiser of the Dock who many assign a Customs Officer f or the examination andintimate the officers¶ name and the packages to be examined, if any, on the check list and r eturn

it to the ex porter or his agent. The Customs Officer may inspect/examine the shipment along with the Dock Appraiser . The

Customs Officer enters the examination r e port in the system. He then marks the Electr onic Bill along with all original documents and check list to the Dock Appraiser . If the Dock Appraiser is

satisfied that the particulars enter ed in the system conf or m to the description given in the original documents and as seen in the physical examination, he may pr oceed to allow "let ex port" f or the

shipment and inf or m the ex porter or his agent.

Stuffing / Loading of Goods in Containers Ex porter or ex port agent will hand over the ex porter¶s co py of the shipping bill signed by the

Appraiser ³Let Ex port" to the steamer agent. The agent then appr oaches the pr o per officer f or

allowing the shipment. The Customs Pr eventive Officer supervising the loading of container andgeneral cargo in to the vessel may give "Shipped on Board" appr oval on the ex porter¶s co py of

the shipping bill.

Drawl of Samples:Wher e the Appraiser Dock (ex port) orders f or sam ples to be drawn and tested, the Customs

Officer may pr oceed to draw two sam ples fr om the consignment and enter the particulars ther eof along with details of the testing agency in the ICES/E system. Ther e is no se parate r egister f or

r ecording dates of sam ples drawn. Thr ee co pies of the test memo ar e pr e par ed by the CustomsOfficer and ar e signed by the Customs Officer and Appraising Officer on behalf of Customs and

the ex porter or his agent. The disposal of the thr ee co pies of the test memo is as f ollows:-

y Original ± to be sent along with the sam ple to the test agency. y Duplicate ± Customs co py to be r etained with the 2

ndsam ple.

y Triplicate ± Ex porter¶s co py.

The Assistant Commissioner/De puty Commissioner if he considers necessary, may also order f or

sam ple to be drawn f or purpose other than testing such as visual inspection and verification of description, mark et value inquiry, etc.



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Amendments: Any corr ection/amendments in the check list generated after filing of declaration can be made at

the service center, if the documents have not yet been su bmitted in the system and the shipping bill number has not been generated. In situations, wher e corr ections ar e r equir ed to be made after

the generation of the shipping bill number or after the goods have been br ought into the Ex port

Dock, amendments is carried out in the f ollowing manners.

1. The goods have not yet been allowed "let ex port" amendments may be per mitted by the

Assistant Commissioner (Ex ports). 2. Wher e the "Let Ex port" order has alr eady been given, amendments may be per mitted

only by the Additional/Joint Commissioner, Custom House, in charge of ex port section.

In both the cases, after the per mission f or amendments has been granted, the AssistantCommissioner / De puty Commissioner (Ex port) may appr ove the amendments on the system on

behalf of the Additional /Joint Commissioner . Wher e the print out of the Shipping Bill hasalr eady been generated, the ex porter may first surr ender all co pies of the shipping bill to the

Dock Appraiser f or cancellation bef or e amendment is appr oved on the system.

Export of Goods under Claim for Drawback: After actual ex port of the goods, the Draw back claim is pr ocessed thr ough EDI system by the officers of Draw back Branch on first come first served basis without f eeling any se parate f or m.

Generation of Shipping Bills:

The Shipping Bill is generated by the system in two co pies- one as Custom co py and one asex porter co py. Both the co pies ar e then signed by the Custom officer and the Custom House

Agent.

SHIPMENT OF GOODS

The ex port consignment can be send either by sea, post or air . The ex porter should first

scrutinize and check the contents of the contract and the LC ter ms, particular ly whether any part

shipment, transshipment etc. is allowed. He should also f ollow the delivery schedule and the

instructions given by the buyer a bout the marking, la beling & packing etc.

Exports by Sea

Ex ports by sea is the most traditional f or ms of ex porting goods to overseas mark ets.

Sea and Air fr eight



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In r ecent years the use of air fr eight has come into pr ominence and the air com panies¶ claim

quite high in certain circumstances,that while air fr eight cost mor e than sea fr eight, the

advantages of the air fr eight in r educing the period of storage and transit mak e up f or the

diff er ence in cost. However, sea fr eight is still most po pular f or m of transporting goods to

overseas customers, chief ly because of the high volume that can be carried and the r elatively low

fr eight costs. When time is not of primary im portance , sea fr eight is the nor mal method of

transportation to overseas countries.

Freight costs

High fr eight charges will r esult in high prices being charged f or consumer pr oducts. Thus it is in

the inter est of the ex porter to k ee p sea and air fr eight as low as possi ble. The ex porter can avail

the facility of Ocean Fr eight Rebate Discount off er ed by conf er ence lines.

Exports by Post

When goods ar e r equir ed to be send a br oad by parcel post, the ex porter can book the goods fr om

any post office in India su b ject to pr ovision of Im ports and Ex port Trade Regulations and

Exchange Contr ol Regulations.

Exports by Air

Certain type of goods which ar e perisha ble/seasona ble or high in cost but low in bulk can be

ex ported by Air . Shipping by Air has many advantages lik e:-

1) Lesser packing charges ar e involved as ther e would be less handling of goods in transit. 2) Ther e is lik ely to be less risk of pilf erage, damage, &

3) It ensur es faster delivery of goods which in turn leads to quick er payments r esulting into

lower stock and quick er turnover .

For sending the cargo by air, the ex porters ar e r equir ed to get the shipping documents scrutinized

and assessed by the customs authorities at the first instance and then pr esent the cargo along with

these documents to customs office in the city. The pr oof of ex portation is known as µAir Way

Bill¶ issued by the Air Line.

Reservation of Space

The ex porter should contact the Shipping Com pany or its agent, well in advance f or the space

r equir ed f or the consignments, on a particular steamer . The ex porter should give all the

particulars of the consignments lik e type of cargo, gr oss and net weight of packages and total

packages, dimensions of each packages, port of loading and destination and the appr oximate date

of shipment and the name of the steamer . The ex porter can get the necessary inf or mation a bout



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arriving and sailing of the ships fr om their shipping agents. When the r equest of an ex porter f or

the r eservation of space is acce pted, the shipping com pany or its agent will issue ³shipping

order´ containing the instructions r egarding loading and shipment of the consignment and a co py

of which is send to the commanding officer of that particular vessel.

EXPORT DOCUMENTS

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Export order

The ex porter is r equir ed to pr oduce co pies of ex port order to various government de partments /

Financial institutions e.g. obtaining ex port licenses when the pr oduct is cover ed under the

r estricted items or canalized items f or ex ports, availing post- shipment finance and other

incentives and dealing with inspection authorities, insurance underwriters, customs offices andexchange contr ol authorities etc. f or various purposes.

Order Acceptance

The Order Acce ptance is another im portant commercial document pr e par ed by the ex porter

confir ming the acce ptance of order placed by the im porter . The order acce ptance nor mally

covers the name and the addr ess of the consignee, port of shipment, country of final destination,

the description of goods, quantity, price each and total amount of order, ter ms of delivery, details

of fr eight and insurance, mode of transport, packing and marking details, ter ms of payment etc.

Letter of Credit

Letter of cr edit is a document issued by the im porters bank in the favour of the ex porter giving

him the authority to draw bills up to a particular amount(as per the contract price) covering a

specified shipment of goods and assuring him of payment against the delivery of shipping

documents. The o perations of Letter of cr edit have been r egulated and ar e governed by the

Articles of ³Unif or m Customs and Practice f or Documentary Cr edits´ i.e. UCP500 and/or UCP

2002 (Supplement to UCP 500 f or Electr onic Pr esentation) of International Chamber of

Commerce, Paris.

The ex porter should car efully scrutinize the contents, ter ms and conditions of the L/C and pr e par e and su bmit all the documents called f or by the buyer to get immediate payment of his

bill drawn on the buyer fr om the negotiating bank .

Mate¶s Receipt

Mate¶s Receipt is issued by the Chief of Vessel after the cargo is loaded, and it contains the

name of the shipping line, vessel, port of loading, port of discharge, place of delivery, marks and



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numbers, number and kind of containers, description of goods, container status, gr oss weight,

condition of cargo at the time of its r eceipt on board the vessel and the shipping bill number and

date. The mates r eceipt is of transf era ble natur e and must be pr esented immediately at the

shipping com pany¶s office to be exchanged into Bill of Lading.

Transport Documents

The f ollowing documents ar e used in ex port business as transport documents.

y Ocean Fr eight: various types of Bill of Lading

y Air Fr eight : Airway Bill/ Air consignment note

y R ail/Road : R ailway Receipt / consignment note

y Post : Post Parcel Receipt

y Courier : Courier Receipt/ Way Bill

Bill of Lading

The Bill of Lading is a document issued by the shipping com pany or its agent acknowledging the

r eceipt of goods mentioned in the bill f or shipment on board the vessel undertaking to deliver the

goods in the lik e order and condition as r eceived, to the consignee or his order of assignee,

pr ovided the fr eight and other charges specified in the Bill of Lading have been duly paid. The

ex porter or his shipping agent has to fill up this f or m with r elevant details such as the name of

the consignor, date and place of shipment, name and destination of the vessel, the description,

quantity and destination of goods, marks and numbers, invoice number, GR number, gr oss and

net weight, number of packages and amount of fr eight etc. Bills of Lading is usually made out in

sets of f our .

Airway Bill/ Air Consignment Note

Airway Bill or Air Consignment Note is the r eceipt issued by the air line com pany f or the

carriage of goods under certain ter ms and conditions. Airway Bill is generally issued in thr ee

co pies. One co py each f or the carrier, consignee and the consigner .

Post Parcel Receipt

Post parcel r eceipt evidences the r eceipt of goods f or ex ports by the post office. If the post parcel

is sent dir ectly in the name of the buyer, the buyer can tak e immediate possession of the goods

sent by the ex porter .

Bill of Exchange

Bill of Exchange is also known as µdraft¶. A bill of exchange is an instrument in writing

containing an unconditional order, signed by the mak er, dir ecting a certain person to pay a fr om



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certain sum of money only to or to the order of a person or to the bear er of the instrument. A bill

of exchange contains an order fr om the cr editor to the debtor to pay a specified amount to a

person mentioned ther ein. The mak er of a bill is called µDrawer¶, the person who is dir ected to

pay is called the µDrawee¶. The person who is entitled to r eceive the money is called the µPayee¶.

When the ex porter ex pects the im porter to mak e immediate payment upon the pr esentation of the draft, that draft is called a µSight draft¶ or µDraft drawn at first sight¶ or µOn demand¶ or µOn

pr esentation¶. When the draft is drawn f or payment at a date later than pr esentation, it is called a

µUsance Draft¶ or µUsance Bill¶ or µDemand Draft¶.

The Bill of Exchange or Draft is drawn in a set of two. Each one bears a r ef er ence to the other .

When any of the drafts is paid ,- if it is a sight draft and acce pted ± when it is a usance draft by

the drawee, the second draft becomes null and void.

Insurance Policy/ Certificate

In the International trade, when the goods ar e in transit they ar e ex posed to marine perils. Marine

Insurance is intended to pr otect the insur ed against the risk of loss or damage to goods in transit

due to marine perils. Marine Insurance Policy is a contract wher eby the Insur er in considerstion

of payment of a pr emium by the insur ed agr ees to indemnify the latter against loss incurr ed by

him in r espect to goods ex posed to µperils of the sea¶. Marine Insurance Certificate is a document

which gives details of the shipment insur ed.

As soon as the goods ar e r eady f or shipment, the ex porter has to buy an Insurance Policy unless

otherwise advised by the im porter . The ex porter should buy the policy f or the CIF value plus

10% to cover other ex penses which the im porter might have to incur in anticipation of saf e

arrival of goods.

Certificate of Origin

The ex porter should obtain a certificate of origin fr om an r ecognized Chamber of Commerce,

Ex port Pr omotion Council or Government De partment.

Manufacturer¶s Certificate

It is r equir ed in addition to the Certificate of Origin f or f ew countries to show that the goods

shipped have actually been manufactur ed and is availa ble.

Packing list/ Note

It shows the details of goods contained in each parcel / shipment.



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Export Declaration Forms

As per the Exchange Contr ol Regulations , ex porters ar e r equir ed to su bmit declaration in the

f ollowing pr escri bed f or ms to the pr escri bed authority bef or e any ex port of goods fr om India ismade.

GR Form ± For ex ports to all countries made otherwise than post.

PP Form ± For ex ports to all countries by parcel post, exce pt when made on µvalue paya ble¶ or

µcash on delivery¶ basis.

Form SDF - To be used f or declaring ex ports in the case of specified customs offices and

Specified categories of shipping bills under EDI system.

Form SOFTEX- To be used gor declaring softwar e ex ports thr ough data communication links

And r eceipt of r oyalty on the softwar e packages/pr oducts ex ported.

Certificate of Inspection

Certificate of Inspection is Issued by the Inspection Agency concerned, certifying that the consignment has been inspected as r equir ed under the Ex port, Quality Contr ol & Inspection Act,

1963.

Antiquity Measurement

It is issued by Archaeological Survey of India in case of antiques.

Certificate of Measurement

Fr eight can be charged either on the basis of weight or measur ement. When it is charged onweight basis, the weight declar ed by the ex porter is acce pted. A certificate of measur ement fr om

the Indian Chamber of Commerce may be obtained by the ex porter and given to the shippingcom pany f or calculation of necessary fr eight.

Transshipment Bill

It is used f or goods im ported into a customs port/airport intended f or transshipment.

Transshipment Permit

It is the per mission f or transshipment of goods fr om the vessel on which the same ar e book edoriginally to another f or ex port.



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Shipping Order

It is issued by the Shipping (Conf er ence) Line which intimates the ex porter a bout the r eservation of space of shipment of cargo thr ough the specific vessel fr om a specified port and on

a specified date.

Cart/ Lorry Ticket

It is pr e par ed f or admittance of the cargo thr ough the port gate and includes the shipper 's name,

cart/ lorry No., marks on packages, quantity, etc.

Dock Challan /Export Application

Ex port Application is r equir ed at Cochin, Mumbai and Chennai port f or payment of port charges

and instead of Ex port Application, Dock Challan is used at K olkata port.

Export Cargo Ticket

It is used only at Cochin port which gives details lik e name of the vessel, ex port application

number, Transit shed number, shipper¶s name, shipping bill number and dateand the descriptionof cargo.

Shippers Declaration Form

The ex porter has to su bmit this declaration to the Customs Authorities r egarding the value, sort,

specifications, quantity and description of goods being ex ported.

Commercial Invoice

It is issued by the ex porter f or the full r ealisa ble amount of goods as per trade ter m. It is a prima

facie evidence of the contract of sale and purchase.

Consular Invoice

It is mainly needed f or the countries lik e K enya, Uganda, Tanzania, Mauritius, New Zealand,Bur ma, Iraq, Ausatralia, Fiji, Cyprus, Nigeria, Ghana, Zanzi bar etc. It is pr e par ed in the pr escri bed f or mat and is signed/ certified by the counsel of the im porting country located in the

country of ex port. This is the most im portant document which needs to be su bmitted f or certification to the Embassy of the country concerned.

Customs Invoice



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It is mainly needed f or the countries lik e USA, Canada, etc. It is pr e par ed on a special f or m being pr esented by the Customs authorities of the im porting country. It facilitates entry of goods

in the im porting country at pr ef er ential tariff rate.

Legalised Invoice

This shows the seller 's genuineness bef or e the appr o priate consulate or chamber or commerce/embassy.

Certified Invoice

It is r equir ed when the ex porter needs to certify on the invoice that the goods ar e of a particular origin or manufactur ed/ pack ed at a particular place and in accordance with specific contract.

Sight Draft and Usance Draft ar e availa ble f or this. Sight Draft is r equir ed when the ex porter ex pects immediate payment and Usance Draft is r equir ed f or cr edit delivery.

Shut Out Advice

It is a statement of packages which ar e shut out by a ship and is pr e par ed by the concerned shedand is sent to the ex porter .

Short Shipment Form

It is an application to the customs authorities at port which advises short shipment of goods and

r equir ed f or claiming the r eturn.

Shipping Advise

A shipping advise is used to inf or m the overseas customer a bout the shipment of goods. Ther e is

no particular f or m of shipping advise.

Shipping Bill

It is an im portant document r equir ed by the Customs Authorities f or allowing shipment. The

shipping bills ar e of f ollowing types:-

y Duty-free shipping bill:-

This type of shipping bill is printed on white paper and used f or the goods f or whichneither duty nor cess is applica ble.

y Dutiable shipping bill:-

It is used f or goods su b ject to ex port duty/cess which is either entitled or not entitled f or draw back .



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y Drawback Shipping Bill:-

If the ex port of goods is simultaneously by duty fr ee and/or su b ject to ex port

duty/cess, this type of shipping bill is com pulsorily to be used whether alone or alongwith any shipping bill. This type of shipping bill is printed on the Gr een

paper .

y Shipping Bill for Shipment Ex-bond:-

In case of goods r e-ex port and k e pt in bond, this type of shipping bill is used

which is pr onted on yellow paper .

Freight Declaration

It is to be attached to the ex port documents if the im porter agr ees to pay the fr eight.

Health Certificate

Health certificate is r equir ed f or ex ports of f ood pr oducts, seeds, animal meat pr oducts etc. thiscertificate is issued by the Health De partment of ex porting country.

Certificate of Value

Though the value is indicated in the Commercial Invoice.

Certificate of Exports and Realisation

After shipment, the ex porters should get their ex ports certified by an authorized dealer in f or eignexchange. While pr esenting the ex port documents to an authorized dealer, he should fill in and

give to the bank a declaration in the pr escri bed f or m known as µBank Certificate of Ex port andr ealisation¶. The ex porter will get this certificate fr om the negotiating bank only after the

r ealization of pr oceeds.



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Foreign Accounts & Currency Management

Ex porters ar e allowed to o pen f or eign curr ency accounts in India and a br oad. They can de posit

upto 50% & 70% in case of EOUs/EPZ units of their total f or eign exchange r eceipts in those

accounts. For this purpose two types of accounts ar e per mitted:-

1. For eign Curr ency Accounts ± FCA

2. Exchange Earners¶ For eign Curr ency Accounts ± EEFC

3. Escr ow accounts.

4. Other FC accounts.

Foreign Currency Accounts ± FCA

The Reserve Bank of India has granted general per mission to Indian r esidents to o pen, hold, and

maintain with an authorized dealer in India a For eign Curr ency Account, to be known as a

Resident For eign Curr ency R FC Account, out of f or eign exchange r eceived by the way of ±

1. Pension or any other superannuation or other monetary benefits fr om their em ployer

outside India; or

2. For eign exchange on conversion of any f or eign security or immova ble pr o perty situated

outside India or inherited fr om a person who was r esident outside India and r e patriated to

India; or

3. Received as acquir ed gift or inheritance fr om a person who was r esident outside India

and r e patriated to India; or

4. For eign exchange acquir ed or r eceived bef or e the 8th day of July, 1947 or any income

arising or accruing ther eon which is held outside India by any person in pursuance of a

general or special per mission granted by the Reserve Bank .

5. The pr oceeds of lif e insurance policy claims/ maturity/ surr ender values settled in f or eign

curr ency fr om an insurance com pany in India

Types of accounts

By an Individual ± a person may o pen in the f or m of curr ent or savings or ter m de posit account.

By others- Either Curr ent Account or Ter m De posit Account.



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Exchange Earners Foreign Currency Account ±EEFC

A person r esident in India may o pen with, an Authorised Dealer bank in India , an account in

f or eign curr ency called the EEFC Accounts.

The limits of eligi ble cr edits to the EEFC accounts ar e 100% f or

y Status Holder Ex porter .

y a r esident in India f or pr of essional services r ender ed in his personal capacity and

y 100% Ex port Oriented Units, units in Ex port Pr ocessing Zones(EPZs), Softwar e

Technology Parks(STPs), and Electr onic Hardwar e Technology Parks(EHTPS), and 50%

r esident in India.

This account shall be maintained only in the f or m of non ±inter est bearing curr ent account

and no cr edit facilities shall be per mitted against the security of balances held in EEFC

accounts by the Authorised Dealer Banks.

The eligi ble cr edits r e pr esent inward r emittances thr ough nor mal banking chain.

Payments r eceived in f or eign exchange by a unit in DTA f or supplying goods to a unit in

SEZs out of its f or eign curr ency accounts ar e to be tr eated as eligi ble f or eign exchange

earnings f or the purpose of cr edit to the EEFC account.

Authorized dealer banks will per mit their ex porter constituents to extend trade r elated loans /

advances to overseas im porters out of their EEFC balances without any ceiling su b ject to

com pliance of pr ovisions of Notification No. FEMA3/2000-R B dated 3rd

May,2000 as

amended fr om time to time.

Authorized dealer banks will per mit ex porters to r e pay packing cr edit advances whether

availed in rupee or in f or eign curr ency fr om balances in their EEFC account and/or rupee

r esources to the extent ex ports have actually tak en place. The balance in EEFC a/cs will be

exem pt fr om SLR & CRR r equir ements.

Escrow Accounts

Under a Counter trade pr o posal involving adjustment of value of goods im ported into India

against the value of ex ports fr om India in ter ms of an arrangement voluntarily enter ed into

between the Indian party and the overseas party, ther e is a need f or escr ow account to be o pened with a bank in India.



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Other FC Accounts-

Other For eign Curr ency Accounts which ar e per missi ble to be o pened in India ar e-

For eign Curr ency Accounts by air line /shipping cos.

For eign Curr ency Accounts of overseas cos. executing pr o jects in India

For eign Curr ency Accounts of overseas buyers.

TAX DRAWBACK ON EXPORTS OF GOODS

The Duty Draw back Scheme is administer ed by the Dir ectorate of Draw back in the Ministry of

Finance. Draw back admissi ble on ex ports is work ed out and dis bursed to the ex porters by the concerned Commissioners of Customs/Central Excise incharge of the Port/Airport/Land customs

Station or For eign Post office.

Definition

R ule 2 of the customs, central excise duties and service tax draw back rules,1995, as amended by

the Customs, Central Excise Duties and Service Tax Draw back R ules, 2006 defines:-

y ³drawback ́ in r elation to any goods manufactur ed in India and ex ported, means the

r ebate of duty or tax , as the case may be, chargea ble on any im ported materials or

excisa ble materials used or taxa ble services used as input services in the manufactur e of

such goods;

y µexcisable material¶ means any material pr oduced or manufactur ed in India su b ject to a

duty of excise under the Central Excise and Salt Act,1944

y µexport¶, with its grammatical variations and cognate ex pr essions, means taking out of

India to a place outside India or taking out fr om a place in Domestic Tariff Ar ea (DTA)

to a special economic zone and includes loading of pr ovisions or stor e or equipment f or

use on board a vessel or aircraft pr oceeding to a f or eign port.

y µimported material¶ means any material im ported into India and on which duty is

chargea ble under the Customs Act,1962y ³manufacture´ includes pr ocessing of or any other o peration carried out on goods and

the ter m manufactur e shall be construed accordingly.



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Drawback - where admissible

Su b ject to the pr ovisions of :-

y The Customs Act, 1962(52 of 1962) and the rules made ther eunder,

y The Central Excise and Salt Act,1944 (1 of 1944) and the rules made ther eunder,

y These rules, a draw back may be allowed on the ex port of goods at such amount, or at

such rates, as may be deter mined by the Central Government.

A draw back will be allowed on the ex port of goods of such amount or as such rates, as may be

deter mined by the Central Government.

Categories of Drawback

All Industry Rates-

Under R ule 3 of the draw back rules, the Central Government notifies fr om time to time rate or

amount of duty draw back in r espect of certain classes of goods. These ar e commonly known as

µAll Industry R ates¶. These rates ar e pu blished nor mally once in a year, f ollowing the changes in

the duties of Customs/Excise in the Finance Act. The All Industrial R ates ar e deter mined either

in specific ter ms or in ter ms of percentage of FOB value of the ex port pr oduct.

Items and Rates-

The items and draw back rates ar e announced in the month of June/July every year and amended

fr om time to time and notified in the Gazette of India- Part I- Section-I. All manufactur es /ex porters having r egular pr oduction of pr oduct f or which brand rate is being sought f or and who

ar e corporate bodies having a detailed accounting system su b ject to audit under the Com pany

Law ar e eligi ble f or this scheme.

Central Excise Duties Drawback Rules,1995-

Wher e the central government has notified ³All Industry R ate´ in r espect of an ex port pr oduct

listed in Annexur e to the Draw back R ules, any manufactur er or ex porter of such goods may

apply under R ule 6 of the Customs and Central Excise Duty Draw back R ules, 1971 to the central

government f or the deter mination of Brand R ates.

Special Brand Rate-

In r espect of any goods, the manufactur er or ex porter finds that the amount of draw back is less

than f our times of the duty paid on the materials or com ponents used in the pr oduction or

manufactur e of the said goods, mak e an application to the Central Government f or fixation of

appr o priate amount or rate of draw back .



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On r eceipt of application fr om such manufactur er/ex porter the Central Government will, after

making such inquiry as it deem fit , allow payment to draw back to such ex porter at such amount

or rate of draw back , which infact is less than f our -fifth of such amount or rate deter mined upon

application by the manufactur er or ex porter .

However no drawback claim will be allowed-

y If the said goods, exce pt tea chests used as packing material f or ex port of blended

tea, have been tak en into use after manufactur e;

y If the said goods ar e manufactur ed or pr oduced using im ported materials or

exicas ble materials in r espect of which duties have not been paid:

y On jute batching oil used in manufactur e of ex port goods, namely, jute( including

Bimlipatam jute or mesta fi br e) yarn, twist, twine, thr ead, cords and r o pes:

If the said goods being packing materials have been used in or in r elation to the ex port of :-

Jute yarn (including Bimlipatam jute or mesta fi br e) yarn, twist, twine, thr ead,

cords and r o pes in which jute yarn pr edominates in weight.

Jute fa brics (including Bimlipatam jute or mesta fi br e),in which jute pr edominates

in weight.

Jute manufactur ers not elsewher e specified (including Bimlipatam jute or mesta

fi br e),in which jute pr edominates in weight.

y On any of the goods falling within heading 1006 or 2523 of the first schedule to

the Custom Tariff Act,1975 (51 of 1975).

Manner and time for claiming drawback on goods exported other than by post-

For claiming draw back on goods ex ported, ther e is no specific f or m. Triplicate co py of the

Shipping Bill f or ex port of goods under a claim f or draw back shall be deemed to be a claim f or

draw back . Such claim f or draw back should be accom panied by f ollowing documents:-

1. Co py of ex port contract or letter of cr edit, as the case may be,

2. Co py of packing list,

3.

Co py if AR 4 f or m, wher e ever applica ble,4. Insurance certificate wher e ever necessary, and

5. Co py of communication r egarding rate of draw back wher e the draw back claim is

f or a rate deter mined by the Commisioner of Central Excise or the Commissioner

of Customs and Central Excise.



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Payment of Drawback

The Payment of Draw back is made by the Customs House/ Central Excise Collectorate having

jurisdiction over the port/land/airport customs stations thr ough which the ex ports ar e aff ected.

The payment of draw back will be made either by cheque or by cr edit in the ex porters accountmaintained with the Customs House.

Promotional Measures for Exports

Assistance to states for developing export infrastructure and allied activities (ASIDE)

ASIDE is f or mulated to involve the states in the ex port eff ort by pr oviding assistance to the state

governments f or develo pment of infrastructur es f or the develo pment and gr owth of ex ports. The

funds allocated under this scheme ar e utilized f or :-

1. Cr eation of new Ex port pr omotional industrial parks /zones,

2. Setting up of electr onics and other r elated infrastructur e,

3. Meeting of capital outlay in EPIPs/ EPZs/SEZs.and,

4. Develo pment of minor ports and jetties to serve ex port purpose.

Export promotion capital goods (EPCG) scheme

EPCG scheme covers manufactur er -ex porters with or without supporting manufactur es /

vendors, merchant ex porters tied to supporting manufactur ers and service pr oviders.

Zero duty EPCG scheme

Zer o duty EPCG scheme allows im port of capital goods f or pr e- pr oduction and post- pr oduction

at zer o custom duty, su b ject to an ex port obligation equivalent to 6 times the duty saved on

capital goods im ported under EPCG scheme to be fulfilled in 6 years r eck oned fr om

Authorization issue date.

Concessional 3% Duty EPCG Scheme

It allows im port of capital goods f or pr e- pr oduction & post- pr oduction at 3% customs duty,

su b ject to an ex port obligation equivalent to 8 times of duty saved on capital goods im ported

under EPCG scheme.



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Duty Entitlement Passbook Scheme (DEPB)

The ob jective of DEPB is to neutralize incidence of customs duty on im port content of ex port

pr oduct. Neutralization shall be pr ovided by the way of grant of duty cr edit against ex port

pr oduct. Cr edit shall be availa ble against such ex port pr oducts and at such rates as may be

specified by DGFT by the way of pu blic notice. Pr ohi bited items of ex ports mentioned in ITC(HS) Book shall not be entitled f or cr edit. DEPB holder shall have an o ption to pay additional

customs duty in cash as well. Additional customs duty / Excise duty and Special additional duty

paid in cash or thr ough debit under DEPB may also be adjusted as CENVAT Cr edit or Duty

Draw back as per DoR rules. In r espect of pr oducts wher e rate of cr edit entitlement comes to 10%

or mor e, amount of cr edit against each such pr oduct shall not exceed 50% of Pr esent Mark et

Value (PMV) of the ex port pr oduct.

Application for DEPB

An application grant of cr edit under DEP

B may be made to R A concerned in For m ANF 4Galongwith pr escri bed documents. Agency commission shall be allowed f or DEPB entitlement

upto 12.5% of FOB value only.

Duty Exemption and Remission Scheme

Duty exem ption scheme ena bles duty fr ee im port of inputs r equir ed f or ex port pr oduction. Duty

exem ption schemes consist of ±

1. Advance Authorisation and,

2. Duty Fr ee Im port Authorisation (DFIA)

This scheme ena bles post ± ex port r e plenishment / r emission of duty on inputs used in ex port

pr oduct. Duty r emission schemes consist of duty entitlement pass book scheme (DEPB) and duty

draw back scheme (DBK).

Goods ex ported under Advance Authorisation / DFIA/ DEPB may be r e ± im ported in same f or m

su b ject to DoR specified conditions.

Advance Authorisation

An Advance Authorisation is issued to allow duty fr ee im port of inputs, which ar e physically

incorporated in ex port pr oduct. In addition fuel, oil, energy, catalysts which ar e consumed/utilized to obtain ex port pr oduct may also be allowed. Advance authorization is issued f or inputs

and ex ports items given under SION. These can also be issued on the basis of Adhoc nor ms or

self declar ed nor ms. However, advance authorization f or im port of raw sugar, can be issued

either to a manufactur er ex porter or merchant ex porter tied to supporting manufactur ers. In case

wher e CENVAT Cr edit facility on inputs have been availed of the ex ported goods, even after the

com pletion of the ex port obligation, the goods im ported against advance authorization shall be



30

utilized only in the manufactur e of dutia ble goods whether within the same factory or outside, f or

which the authorization holder shall pr oduce a certificate fr om either Jurisdictional Central

Excise Stupdt.or Charter ed Accountant, at the o ption of the ex porter, at the time of filling

application f or EODC to R A concerned. It necessitates ex ports with a minimum value addition

of 15%, exce pt f or items in Gems & Jewellery sector . Ex ports to SEZ Units/ supplies to

Develo pers/ Co- develo pers, irr espective of curr ency of r ealization, would also be cover ed.

Advance Authorisation shall be issued in accordance with Policy and pr ocedur e in f orce on

Authorisation issue date. Validity period of Advance Authorisation f or im port shall be as

pr escri bed in Hand book of Pr ocedur es, Vol. 1.

Duty Free Import Authorisation (DFIA)

DFIA is issued to allow duty fr ee im port of inputs, fuel, oil, energy sources, catalyst which ar e

r equir ed f or pr oduction of ex port pr oduction of ex port pr oduct.

Export Oriented Units (EOUs), Electronic Hardware Technology Parks (EHTPs), Software

Technology Parks (STPs) and Bio-Technology Parks (BTPs).

Units undertaking to ex port their pr oduction of goods and services, may set up under the EOU

Scheme, STP Scheme, EHTP Scheme, BTP Scheme f or manufactur e of goods including r e pair,

r e-making, r econditioning, r e-engineering, and r endering of services. Trading units ar e not

per mitted.

An EOU/EHTP/STP/BTP unit may ex port all kinds of goods and services exce pt that ar e

pr ohi bited in ITC (HS). State trading r egime shall not apply to EOU manufacturing units. Theymay not im port/ pr ocedur e fr om DTA without payment of duty certain specified goods f or

cr eating a central facility. Gems & Jewellery EOUs may source gold/silver/platinum thr ough

nominated agencies on outright/loan purchase basis, shall ex port within 90 days fr om r elease.

Pr ocur ement and ex port of spar es / com ponents upto 5% of FOB value of ex ports may be

allowed to same consignee of ex port article. Second hand capital goods, without any age limit,

may also be im ported duty fr ee. Units can sell upto 50% of pr oduction in DTA & can sell to

other EOU/BTP/EHTP/STP/SEZ.



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PROJECT EXPORTS & SERVICE EXPORTS

Contracts f or ex port of goods against the payment to be r eceived partly or fully beyond the

period statutorily pr escri bed f or r ealization of ex port pr oceeds ar e tr eated as def err ed payment

ex ports. Trunk ey pr o jects involve r endering of services lik e designing, civil construction and

er ection and commissioning of plant/factory along with supply of machinery, equipment andmaterials. Payment in r espect of goods supplied under both turnk ey and civil construction

contracts may be r eceived on µcash¶ basis.

Service contracts f or ex port of consultancy, technical and other services by Indian com panies /

fir ms, also supply of some associated mechanicals wher ewithals, consuma bles and spar es. Indian

ex porters of services have to nor mally undertak e overseas contracts on ³cash´ ter ms and do not

r equir e prior clearance of Reserve Bank . Individuals/ fir ms/ com panies executing service

contracts in com puter softwar e should however r e patriate to India income equivalent to atleast

30% of contract value and the balance 70% of contract value could be r etained f or meeting

contract r elated ex penses a br oad.



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Deemed Exports

³Deemed Ex ports´ r ef ers to those transactions in which goods supplied do not leave the country

and the payment f or such supplies is r eceived either in Indian rupees or in fr ee f or eign exchange.

Categories of Supply:-

y Supply of goods against Advance Authorisation/DFIA, EOUs or STPs or EHTPs

or BTPs and to EPCG Authorisation holders.

y Supply of goods to pr o jects financed by multilateralor bilateral agencies funds as

notified by De partment of Economic Affairs(DEA).

y Supply of capital goods, including in unassembled/disassembled condition as well

as plants, machines, accessories, tools, dies and such goods which ar e used f or

installation purposes.

y Supply of goods to power pr o jects and r efineries;

y Also to pr o jects funded by UN agencies; andy To nuclear power pr o jects thr ough com petitive bidding as o pposed to ICB.

Benefits of Deemed Exports:-

o Supply of goods against Advance Authorisation/ DFIA,

o Deemed Ex port Draw back,

o Exem ption fr om ter minal excise duty wher e supplies ar e made against ICB. In

other cases r efund will be given.

o Suppliers ar e entitled to Advance Authorisation /DFIA f or immediate supplies

o Supply of goods will be eligi ble f or r efund of Ter minal Excise Duty pr ovided

r ecipient of goods does not avail CENVAT Cr edit/r ebate on such goods.

o Sim ple inter est @6% p.a. will be paya ble on delay in r efund of duty draw back

and ter minal excise duty under deemed ex port scheme, if the case is not settled

within 30 days of r eceipt of com plete application.



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IMPORT PROCEDURE & DOCUMENTATION

With the globalisation of Indian economy and consequent upon comf orta ble balance of payment

position Government of India has li beralised the Im portPolicy and practically all Contr ols onim ports have been lifted. Im ports may be made fr eely exce pt to the extent they ar e r egulated by

the pr ovisions of Im port Policy or by any other law f or the time being in f orce.

Import Export Policy

The pr esent im port policy and pr ocedur es in r espect of various commodities/category of im porters, ar e, inter alia, contained in the f ollowing pu blications issued by the Ministry of

Commerce and r evised fr om time to time:

Im port ± Ex port Policy, 1997-2002 as modified upto 31.3.1999 Hand book of Im port- Ex portP

r ocedur es (Vol 1.), 1997-2002 as modified upto 31.3.2000

Hand book of Im port-Ex port Pr ocedur es(Vol.2) Duty Exem ption Scheme: Input- Output andValue Addition Nor ms,1997-2002. ITC (HS) Classification of Im port and Ex port Items.

Registration with Regional Licensing Authority:

Registration with Regional Licensing Authority is a pr e-r equisite f or im port of goods. The Customs will not allow clearance of goods unless:

The im porter has to obtain IE Code Number fr om Regional Licensing Authority. However, no

such r egistration is necessary f or persons im porting goods fr om/ to Ne pal pr ovided Value of asingle Consignment does not exceed R s. 25000/-

Obtaining IEC Code Number

An application f or grant of IEC Code Number should be made in the pr escri bed Perf or ma givenat Appendix 3.I. The application duly signed by the applicant should be supported by the

f ollowing documents:

Bank Receipt (in duplicate)/demand draft f or payment of the f ee of R s.1000/- Certificate fr om the Bank er of the applicant fir m as per Annexur e1 to the f or m. Two co pies of passport size

photographs of the applicant duly attested by the bank er of the applicant.

A co py of Per manent Account Number issued by Income Tax Authorities, if PAN has not been

allotted, a co py of the letter of legal authority may be furnished. If ther e is any non-r esident

inter est in the fir m and NR I investment is to be made with r e patria ble benefits, full particularsther eof along with a photoco py of R BI's appr oval. If ther e is NR I investment without r e patriation



34

benefit, a sim ple declaration indicating whether it is held with the general/specific per mission of the R BI on the letter head of the fir m should be furnished. In case of specific appr oval, a co py

may also be furnished.

Declaration by the applicant that the pr o prietors/partners/dir ectors of the applicant

fir m/com pany, as the case may be, ar e not associated as pr o prietor/partners/dir ectors with anyother fir m/com pany the IEC No. is allotted with a condition that can be ex ported only with the prior appr oval of the R BI.

IMPORT DOCUMENTS

Import order

An im port order is a commercial transaction which is not only im portant to the im porter and the

ex porter, but is also of concern to their r espective countries, since it aff ects the balance of

payment position of both the countries. The im porter is r equir ed to pr oduce co pies of im port

order to various Government de partments / financial institutions.

Order acceptance

Order acce ptance is another im portant commercial document pr e par ed by the ex porter

conf or ming the order r eceived fr om the overseas im porter . The ex porter gives his confir mation

to the order placed by the im porter and commits the shipment of pr oducts cover ed at the agr eed

price during a specified time.

Letter of credit

At the r equest of the im porter his bank issues a letter of cr edit in the favour of the ex porter thr ough its corr espondents in the country of the ex porter giving him the authority to draw bills

upto a particular amount covering a specified shipment of goods and assuring him of payment

against the delivery of shipping documents.

Transport documents

The f ollowing documents ar e used in im port business as transport documents.

y Ocean Fr eight: various types of Bill of Lading

y Air Fr eight : Airway Bill/ Air consignment note

y R ail/Road : R ailway Receipt / consignment note

y Post : Post Parcel Receipt

y Courier : Courier Receipt/ Way Bill

Bill of Exchange



35

Bill of Exchange is also known as µdraft¶. A bill of exchange is an instrument in writing

containing an unconditional order, signed by the mak er, dir ecting a certain person to pay a fr om

certain sum of money only to or to the order of a person or to the bear er of the instrument. A bill

of exchange contains an order fr om the cr editor to the debtor to pay a specified amount to a

person mentioned ther ein. The mak er of a bill is called µDrawer¶, the person who is dir ected to

pay is called the µDrawee¶. The person who is entitled to r eceive the money is called the

µPayee¶.

When the ex porter ex pects the im porter to mak e immediate payment upon the pr esentation of the

draft, that draft is called a µSight draft¶ or µDraft drawn at first sight¶ or µOn demand¶ or µOn

presentation¶. When the draft is drawn f or payment at a date later than pr esentation, it is called a

µUsance Draft¶ or µUsance Bill¶ or µDemand Draft¶.

The Bill of Exchange or Draft is drawn in a set of two. Each one bears a r ef er ence to the other .

When any of the drafts is paid ,- if it is a sight draft and acce pted ± when it is a usance draft by

the drawee, the second draft becomes null and void.

Insurance Policy/ Certificate

In the International trade, when the goods ar e in transit they ar e ex posed to marine perils. Marine

Insurance is intended to pr otect the insur ed against the risk of loss or damage to goods in transit

due to marine perils. Marine Insurance Policy is a contract wher eby the Insur er in consideration

of payment of a pr emium by the insur ed agr ees to indemnify the latter against loss incurr ed by

him in r espect to goods ex posed to µperils of the sea¶.

Marine Insurance Certificate is a document which gives details of the shipment insur ed.

Certificate of Origin

Many countries r equir e a certificate fr om the overseas supplier the origin of goods and certified

by the Chamber of Commerce or any other r ecognized authority in the ex porters country.

Packing list / Note

It includes the date of packing, connecting invoice number, order number, details of shipping.

Certificate of Inspection

It is issued by the Inspection authorities in the ex porters country certifying that the goods have

been inspected under the r ecognized quality contr ol standards, and satisfies the condition r elating

to quality contr ol and inspection as applica ble.

Certificate of Measurement



36

Fr eight can be charged either on the basis weight or measur ement. When it is charged on weight

basis, the weight declar ed by the overseas buyer is acce pted. This certificate contains the name

of the vessel, the port of destination, description of goods, quantity, length, br eadth, de pth etc of

the packages.

Commercial Invoice

An invoice is a document drawn by the ex porter on his overseas im porter which contains

detailed description of the goods consigned, the consigners name, the consignees name, the name

of the steamer, the number and date of bill of lading etc. It is a prima facie evidence of the

contract of sale and purchase.

Freight Declaration

It is r equir ed to be obtained fr om the overseas supplier, in both the cases, when the im porter

agr ees to pay the fr eight or the overseas supplier pays the fr eight.

Bill of Entry

The bill of entry is a document pr e par ed by the im porter or his clearing agent in the pr escri bed

f or m under the Bill of entry r egulations, 1971

Bill of entry f or goods im ported f or home consum ption (white colour ed) ± this kind of Bill of

Entry is used when im ported goods ar e clear ed fr om port on custom duty

Bill of entry f or war ehouse (yellow colour ed) - this kind of bill of entry is used wher e the duty is

not paid but the im ported goods ar e transf err ed to customs r ecognized bonded war ehouses.

Bill of entry f or ex-bond clearance f or home consum ption (gr een colour ed) ± this kind of bill of

entry is used wher e the im porter intends to clear the dutia ble goods fr om a bonded war ehouse.

Interest on Import Bills

The R BI has per mitted authorized dealers to mak e r emittances on account of inter est accur ed on

the usance bills under nor mal inter est rate paid on sight bills f or a specific period not extending

six months fr om date of shipment in r espect of im ports under µcash¶ licenses, without prior

appr oval of Reserve Bank .

Import Follow-Up

To ensur e that f or eign exchange r eleased f or im port of goods is pr o per ly utilized, the authorized

dealers will verify µdocumentary evidence of im port¶in the f or m of either postal wrappers or

customs bill of entry.



37

One of the co pies of bill of entry is called the Exchange contr ol co py and will be designated as

such by means of a notation on the to p of the f or m. This co py has to be su bmitted to the

authorized dealers by the im porter within 90 days fr om the date of r emittance.

Customs Clearance Procedure for Imported Goods

Customs Administration

Under the Ministry of Finance, ther e ar e two inde pendent Boards of Revenue i.e Central board of

dir ect taxes and central board of excise and customs. The two main wings of the custom house

ar e µappraising¶ f or collection of r evenue and pr evention f or pr evention of smuggling.

Import Manifest

In ter ms of sec 30 of the customs act 1962 the person in charge of a conveyance carring im ported

goods should handover within 24 hrs of arrival of the conveyance, an Im port manif est to the

customs. This manif est is a com plete list of all items the conveyance carries on board , includingthose transshipped and those to be carried to the su bsequent ports of call.

Entry in the Import Department of the Customs House

On r eceipt of the inf or mation r egarding the arrival of the goods the im porters or their agents have

to mak e an entry by filling a bill of entry , in the pr escri bed f or m,in the im port de partment of the

customs house. the date of pr esentation is an im portant date as the rate of duty applica ble to the

im ported goods will be the rate which is in f orce on the date of pr esentation.

Presentation of Bill of Entry for Appraisal

After the bill of entry is noted in the im port de partment, the same should be pr esented to the

Appraising counters along with the f ollowing necessary documents :-

1) Im port license, if necessary

2) Ex porters invoice

3) Co py of letter of cr edit

4) Original bill of lading and its non-negotia ble co py

5) Two co pies of packing list

6) Weight specifications

7) Manufactur ers test certificate 8) Certificate of origin

9) Delivery order issued by shipping com pany or its agent

10) Fr eight and insurance amount certificate if the im port is on FOB ter ms

11) A declaration fr om im porter that he has not paid any commission to agents in India

12) Customs declaration

13) Catalogue / drawings etc. f or machinery im ported.



38

In addition to a bove f ollowing documents ar e also to be su bmitted, wher ever necessary:

1) If the spar e parts ar e im ported- ex porters invoice showing unit price and extended total of

each item

2) If the second hand machinery is im ported- charter ed engineers certificate

3) If steel is im ported ± manufactur ers analysis certificate 4) If chemicals and allied pr oducts ar e im ported- literatur e showing chemical consum ption

5) If textiles items ar e im ported- textiles commissioners endorsement/certificate.

Clearance of Goods

After payment of duty the im porter should obtain the duplicate co py of bill of entry on which

order f or examination of the goods is given by Customs and get the goods examined. If the

description of goods is f ound to be corr ect, on the basis of declar ed and acce pted particulars, the

clearance of goods is allowed by the appraiser . This pr ocedur e wher e assessment is com pleted

and duly r ecover ed, prior to the examination of goods is known as ³second check pr ocedur e´. The Appraiser after initial scrutiny of documents r eturns the bill of entry to the im porters with an

order of examination of goods bef or e the assessment of duty, is known as ³first check

pr ocedur e´.

Warehousing the Goods

Under the customs act pr ovision has been made to allow im porters to war ehouse the goods

pending clearance. For this purpose im porters have to pr esent a bill of entry ter med ³ bill of entry

f or war ehousing´. This is r equir ed to be pr esented to the Bonds de partment along with the bond

f or twice the amount of duty paya ble.

Customs Duty

Following types of customs duty ar e levied on goods im ported into or ex ported outside india:

Basic Duty

Basic duty is levied on all goods im ported into India as pr escri bed in first schedule of customs

tariff act. This schedule is amended fr om time to time to modify, alter or vary the natur e of duty.

This duty is levied as a percentage of value of goods im ported or at a specified rate.

Auxiliary Duty

This duty is levied in addition to the basic duty pr escri bed under the finance act every year . But,

this duty has been withdrawn with eff ect fr om 28th

February, 1993.

Additional or Countervailing Duty



39

This duty is levied on the total cost of im ported goods at the rate equal to excise duty on lik e

goods when manufactur ed in India. This duty is levied to pr otect the domestic industry.

Specific Duty

This duty is levied in order to counter balance the excise duty levia ble on the im ports going into the pr oduction of such goods pr oduced in India.

IMPORT PROMOTION SCHEMES

Export promotion capital goods (EPCG)

Zero duty EPCG scheme

This scheme allows im port of capital goods f or pr oduction, pr e- pr oduction, post- pr oduction, at

zer o custom duty, su b ject to an ex port obligation equivalent to 6 times the duty saved on capital

goods im ported under EPCG scheme to be fulfilled in 6 years r eck oned fr om Authorisation

issued date. This scheme will be availa ble f or ex porters of engineering and electr onic pr oducts,

basic chemical & phar maceuticals, apperals & textiles, plastics , handicrafts, chemicals & allied

pr oducts and leather & leather pr oducts. This zer o duty scheme will be in o peration till

31.3.2011

Concessional 3% duty EPCG scheme

This scheme allows im port of capital goods f or pr oduction, pr e- pr oduction, post- pr oduction, at

3% custom duty, su b ject to an ex port obligation equivalent to 8 times of duty saved on capital goods and im ported under EPCG scheme to be fulfilled in 8 years.

In case of agr o units and units in cottage or tiny sector im port of capital goods at 3% custom duty

shall be allowed su b ject to fulfillment of EO equivalent to 6 times of duty saved on capital goods

im ported in 12 years fr om the authorization date.

For SSI units, im port of capital goods at 3% Customs duty shall be allowed su b ject to fulfillment

of EO equivalent to 6 times of duty saved on capital goods in 8 years pr ovided the landed c.i.f .

value of such im ported capital goods under this scheme does not exceed R s 50 lakhs and total

investment in plant& machinery after after such im ports does not exceed SSI limit.

In r espect of EPCG Authorisations with a duty saved amount of R s 100 cr or es o mor e EO will be

fulfilled in 12 years. Capital goods shall include spar es, jigs, fixtur es, dies and moulds. However

im port of motor cars, sports utility vehicles shall be allowed only to hotels, travel agents, tour

o perators and com panies o perating golf r esorts.



40

Im port of r estricted items of im ports mentioned under ITC (HS) shall only be allowed under

EPCG Scheme after appr oval fr om the EFC at Headquarters.

EPCG scheme covers manufactur ers- ex porters with or without supporting

manufactur ers/vendors, merchant ex porters tied to supporting manufactur ers and service

pr oviders.

Duty Exemption & Remission Scheme & Advance Authorisation Scheme

This scheme ena bles duty fr ee im port of inputs r equir ed f or ex port pr oduction. Duty Exem ption

Schemes consist of :-

1. Advance authorization and

2. Duty Fr ee Im port Authorization (DFIA)

A duty r emission scheme ena bles post- ex port r e plenishment / r emission of duty on inputs used

in ex port pr oduct. It consist of :-

1. Duty Entitlement Pass book Scheme (DEPB) and,

2. Duty Draw back (DBK) scheme.

Advance Authorisation

An advance authorization is issued to allow duty fr ee im port of inputs, which ar e physically

incorporated in ex port pr oduction. In addition, fuel, oil, energy, catalyst which ar e

consumed/utilized to obtain ex port pr oduct, may be allowed. DGFT, by means of Pu blic notice

may exclude any pr oducts fr om the purview of Advance Authorization.

Duty fr ee im port of mandatory spar es upto 10% CIF value of authorization which ar e r equir ed to

be ex ported/ supplied with r esultant pr oduct ar e allowed under Advance Authorization. Advance

Authorization is issued f or inputs and ex port items given under SION. These can be issued on

the basis of Adhoc nor ms or self declar ed nor ms. Advance Authorisation can be issued either to

a manufactur er ex porter or merchant ex porter tied to supporting manufactur es f or :-

i. Physical ex ports (including ex ports to SEZ) and /or

ii. Inter mediate supplies

iii. Supply of goods that ar e mentioned in the purview of ³deemed ex ports´ of f or eign trade

policy,

iv. Supply of µstor es¶ on board of f or eign going vessel/aircraft.



41

In case of Authorisation f or im port of Tea, minimum value addition under Advance

Authorisation shall be 50%.

Pr ohi bited items of im port mentioned in ITC(HS) shall not be im ported under Advance

Authorisation.

Duty Free Import Authorisation (DFIA) Scheme

This scheme allows duty fr ee im port of inputs, fuel, oil, energy sources, catalyst which ar e

r equir ed f or pr oduction of ex port pr oduct. DGFT , by means of pu blic notice , may exclude any

pr oducts fr om the purview of DFIA. This scheme came in f orce fr om 1st May, 2006.

Pr ovisions of ³Advance Authorisation Scheme´ shall be applica ble in case of DFIA. However,

these Authorisations shall be issued only f or pr oducts f or which Standard Input and Output

Nor ms (SION) have been notified. In case of actual user DFIA and wher e CENVAT cr editfacility on inputs have been availed f or the ex ported goods, even after com pletion of ex port

obligation, the goods im ported against such DFIA shall be utilized in the manufactur e of dutia ble

goods whether within the same factory or outside.

Pr ovisions of ³Advance Release Orders (AR O)´ and ³Invalidation Letter´, ³Back ± to ± Bank

Inland Letter of Cr edit´, ³Pr ohi bited Items´ and ³Admissi bility of Draw back´ a bove shall be

applica ble f or DFIA holder .

A minimum 20% value addition shall be r equir ed f or issuance of such authorisation exce pt f or

items in Gems and Jewellery sector . Authorisation holder may transf er DFIA or duty fr ee inputs

exce pt fuel and any other items notified by DGFT.

CENVAT cr edit facility shall be applica ble f or inputs either im ported or pr ocur ed indigenously.

An application in For m ANF 4H along with the documents ther ein, shall be su bmitted to R A

concerned. Split Authorisations of DFIA su b ject to a minimum of CIF value of R s 10 lakhs each

and multiples ther eof may also be issued, on r equest at the time of seeking transf era bility. A f ee

of R s 1000/- each shall be paid f or each split authorisation.

Goods im ported against transf era ble DFIA, which ar e f ound def ective or unfit f or use, may be

r e-ex ported as per DoR guidliness. Original DFIA holder shall maintain a true and pr o per

account of consum ption and utilization of duty fr ee im ported / domestically pr ocur ed goodsagainst each authorisation as pr escri bed in Appendix 23 of Hand book of Pr ocedur es ,Vol 1.DFIA

ar e sought to be transf err ed after fulfillment of E.O.



42

Duty Entitlement Passbook (DEPB) Scheme

The ob jective of DEPB to neutralise the incidence of customs duty on im port content of ex port

pr oduct. Neutrilisation shall be pr ovided by the way of grant of duty cr edit against ex port

pr oduct. Duty cr edit under this scheme is calculated by taking into account deemed im port

content of the said ex port pr oduct as per SION.

Cr edit may be utilized f or payment of Customs Duty on fr eely im ported items and/or r estricted

items. DEPB scrip¶s can also be utilized f or payment of duty against im ports under EPCG

scheme. Futhur, DEPB Scrips can also be utilized f or payment of duty against im ports under

EPCG Scheme. Pr ohi bited items of ex ports mentioned in ITC(HS) Book shall not be entitled f or

DEPB cr edit exce pt f or ex ports eff ected under transitional facility wher ever allowed, in ter ms of

paragraph 1.5 of FTP. DEPB holder shall have o ption to pay additional customs duty in cash as

well.

Validity period f or DEPB f or im port shall be pr escri bed in Hand book of Pr ocedur es, Vol1.

DEPB or items against it ar e fr eely transf era ble. In r espect of pr oducts wher e rate of cr edit

entitlement under DEPB Scheme comes to 10% or mor e, amount of cr edit against each ex port

pr oduct shall not exceed 50% of the pr esent mark et value of ex port pr oduct. Agency

Commission shall be allowed f or DEPB entitlement upto 12.5% of FOB value.

For m ANF 4C pr escri bes f or m r egarding fixation of DEPB rates. All applications f or fixation of

DEPB rates shall be r outed thr ough concerned EPCs which shall verify the FOB value of ex portsas well as international price of inputs cover ed under SION. To encourage diversification and to

pr omote ex ports of new pr oducts, DEPB committee would be em power ed to notify pr ovisional

DEPB rates. However, such DEPB rates would be valid f or a limited period of time during which

ex porter would furnish data on ex port and im port f or r egular fixation of rates.

Im port of items r equir ements by Hotels, Restaurants, Travel Agents and Tour Operators

Items mentioned as r estricted f or im ports in ITC(HS) r equir ed by hotels, r estaurants, travel

agents, and tour o perators may be allowed against an Authorisation, based on r ecommendation

of Dir ector General, Tourism, Government of India.

Hotels, including tourist hotels, r ecognized by Dir ector General of Tourism, Government of

India or a State Government shall be entitled to im port Authorisation upto a value of 25% of

f or eign exchange earned by them and f or eign tourists during pr eceding licensing year, f or im port

of essential goods r elated to hotel and tourism industry.



43

Government of India shall be entitled to im port authirisation upto a value of 10% of f or eign

exchange earned by them during the pr eceding licensing year, f or im port of essential goods

which ar e r estricted f or im ports r elated to travel and tourism industry, including office and other

equipment r equir ed f or their own pr of essional use. Duty cr edit scrip may be used f or im port of

any capital goods including spar es, office equipment and pr of essional equipment, office

furnitur es and consuma bles that ar e otherwise fr eely im porta ble under ITC (HS). Duty Cr edit

scrip may also be used f or im port of consuma bles including f ood items and alcoholic beverages.

An application f or grant of an authorisation may be made in the f or m ANF 2B to DGFT thr ough

Dir ector of Tourism, GOI who will f orward application to R A concerned along with their

r ecommendations.

Import of Samples, Gifts and Other Goods

No authorisation shall be r equir ed f or im ports of bonafide technical and trade sam ples of items

mentioned as r estricted in ITC (HS) exce pt vegeta ble seeds, bees and new drugs by any im porter .

However, sam ples of tea not exceeding R s.2000 (CIF) in one consignment shall be allowedwithout an authorisation by any person concerned with tea industry.

Duty fr ee im port of sam ples upto R s. 100000 f or all ex porters shall be allowed as per the ter ms

and conditions of customs notification.

Ex ports of bonafide trade and technical sam ples of fr eely ex porta ble item shall be allowed

without any limit.

Im port under Lease Financing shall be availa ble under EPCG scheme, EOU/SEZ scheme.

Im port/ex port of exhi bits, including construction and decorative materials r equir ed f or tem porarystands of f or eign /Indian exhi bitors at exhi bitions, fair or similar show or display f or a period six

months on r e-ex port/ r e-im port basis, shall be allowed without an Authorisation on su bmission of

a certificate fr om an officer of a rank or an officer of Indian Trade Pr omotion Organisation

(ITPO) duly authorized by its chair man, to the eff ect that such exhi bition, fair or similar show or

display has been sponsor ed by DoC or ITPO and is being held in pu blic inter est.

An application f or grant of Customs Clearance Per mit (CCP) f or im port as gifts of items

appearing as r estricted f or im ports in ITC (HS) shall be made to the DGFT as in For m ANF 2B

along with the documents pr escri bed ther ein.

Bonafide household goods and personal eff ects may be im ported as a part of passenger baggage

as per limits, ter ms and conditions ther eof in Baggage R ules notified by Ministry of Finance.

Capital goods, equipments, com ponents, parts and accessories, whether im ported or indigenous,

exce pt those r estricted under ITC (HS) may be sent a br oad f or r e pairs, testing, quality

im pr ovement and up gradation or standardization of technology and r e-im ported without an

authorisation.



44

Goods im ported, in accordance with FTP, may be ex ported in same or su bstantially same f or m

without an Authorisation pr ovided that item to be im ported or ex ported is not r estricted f or

im port or ex port in ITC (HS).

Transfer of Imported Goods

Fr eely im porta ble goods can be transf err ed by sale or otherwise by im porter fr eely. Transf er of

im ported goods, which ar e su b ject to Actual user condition and have surplus to needs of Actual

user shall be made only with prior per mission of R A concerned. Following documents along

with supporting documents shall be furnished with r equest f or grant of per mission f or transf er, to

R A concerned:-

1. Reasons f or transf er of im ported materials

2. Name, addr ess, IEC number and industrial authorisation r egistration, if any, of transf er ee

3. Description, quantity and value of goods im ported and those sought to be transf err ed

4.

Co pies of im port authorisation and bills of entry r elating to im ports made 5. Ter ms and conditions of transf er as agr eed upon between buyer and seller .

Duty free import of R&D equipment for pharmaceuticals and Bio-technology sector

Duty fr ee im port of goods upto 25% of FOB value of ex ports during pr eceding licensing year,

shall be allowed. The eligi ble unit may furnish an application given in Appendix 15A to R A

concerned duly countersigned by Charter ed Accountant.

Duty fr ee im ports of goods specified in list 28A of customs notification no 21/2002 dated

1.3.2002, upto 1% of FOB value of ex ports made during the pr eceding licensing year, shall be

allowed to agr o chemicals sector unit having ex port turnover of R s. 20 cr or e or a bove during

pr eceding licensing year .



45

CHAPTER 3:- ABOUT THE ORGANISATION

PROFILE

Established in 1977, Eros has over three decades of market leadership in creating a global platform for

Indian cinema. The Company has an enviable distribution network that spans across 50 countries and

has offices in India, UK, USA, Dubai, Australia, Fiji, Isle of Man and Singapore. Eros has built a successful

business model by combining the release of a portfolio of 30-40 new films every year with the

exploitation of a valuable film library of over 1,900 film titles, making it undisputedly one of the largest

content owners in the business.

VISION

Er os International is at an inf lection point, having cr eated the wor ld¶s leading integrated studio

of Indian filmed entertainment. It is our vision to leverage and build on our com petitive mark et

position in the rapidly gr owing Indian media and entertainment sector so as to become the

gateway of Indian content wor ldwide and that of Hollywood content in India.

EVOLUTION

The business of Er os was f ounded in India in 1977 by Arjan Lulla, with a view to ex port Indian

films and tap into the video boom of 1970s and 1980s.

Kishor e Lulla took over the r eins of the business fr om his father, Arjan Lulla, in the 80s to

ex pand business in the UK . Kishor e infused Er os with a vision and strategic dir ection to mak e it

a leading Indian media com pany in the International mark et. He was instrumental in pr o pelling

Indian entertainment into the mainstr eam exhi bition and distri bution ar ena and international



46

platf or ms lik e Cannes Film Festival, BAFTA among others.

EROS PRODUCTS

Ayngaran

Er os acquir ed 51% of the Ayngaran business in October 2007. Ayngaran ar e mark et leaders inthe Tamil filmed entertainment.

EyeQube

Er os set up a state-of -the-art visual eff ects facility in Mumbai of which internationally r enowned

B4UEr os continues to hold 24% stak e in the B4U gr oup, the leading pr emium Bollywood movie and

music channels o perating globally

Hollywood alliancesEr os has set up a joint ventur e with Universal Music in India to tap new talent and give them a

music as well as film platf or m to showcase their talents. This has never been done bef or e andalso ther e is the potential to ex plor e mixing of the new Indian talent with Universal¶s

international artists to cr eate music of wider appeal.

.



47

EROS BOARD AND MANAGEMENT

Kishore Lulla

Chairman & Chief Executive Officer

Vijay Ahuja

Vice Chairman & President ± International

Jyoti Deshpande

Chief Operating Officer & Commercial Director

Sunil Lulla

Executive Director & President ± India

Dilip Thakkar

Senior Non-Executive Director

Naresh Chandra

Senior Non-Executive Director



48

Chapter 4:- FINDINGS & ANALYSIS

EXPORT PRODUCTS IN EROS INTERNATIONAL MEDIA LIMITED

1) DIGITAL BETACAM

2) AUDIO CD

3) COMPACT DISCS

4)

HARD DISC DRIVE

Er os International Media Limited sources all Indian film content f or the Er os Gr oup and ex ploits

such content acr oss f or mats within India, Ne pal and Bhutan. As of December 31, 2009, we have

various rights to over 1,000 films, which include Hindi, Tamil, Marathi and other r egional

language films, including films, such as Mughal-e-Azam, Om Shanti Om, Lage R aho Munna bhai

and Love Aaj Kal, Alladin, God Tussi Gr eat Ho. We own rights to certain English language

films f or home entertainment distri bution within India.

We ex ploit and ex port Indian film content within India, Ne pal and Bhutan and Shrilanka, UK,USA, Du bai, Sydney, Nair obi, Singapor e, Malaysia, New Zealand, Johannes burg thr ough

multiple f or mats, such as theatr es, home entertainment, principally in the f or m of digital versatile

discs (DVDs), video com pact discs (VCDs) and audio com pact discs (CDs).



49

OUR LATEST R ELEASES

GOD TUSSI GR EAT HO

OM SHAANTI OM

VEER

PAATHSHALA

HOUSEFULL

DR ONA

NAMESTEY LONDON

LOVE AAJ KAL

ALLADIN

AND MANY MOR E.

OUR FOR THCOMING R ELEASES

MILENGE MILENGE

KHATTA MEETHA

R OCKSTAR

GOLMAL 3

DESI BOYS and many mor e.



50

Ther e is pr o per filling and maintaining of all the documents r elated to ex ports and im ports done

in our com pany. Ther e is amendment of the rules and pr ocedur es set by the Dir ector General of

For eign Trade.

The ex port ± Im port documentation and pr ocedur e plays an im portant r ole in international

mark et. Thus, without pr o per r egistration and documentation f or eign trade will not be carried out pr o per ly. The ex porter and im porter have to be r egister ed and should obtain an ICE number .

The shipping documents have to be made and counter signed by a CA or an Authorized Dealer;

they ar e to be made in triplet and fr eight and packing charges duly paid on it.

The policy of the government to encourage manufactur ers and ex porters to attain internationally

acce pted standards of quality f or their pr oducts. The government extends support and assistance

to trade and industry to launch a nationwide pr ogramme on quality awar eness and pr omote the

conce pt of total quality management.

With the ob jective of pr omoting ex ports of branded pr oducts, the Government of India has

constituted a Committee f or identification of such pr oducts and upon r ecognition of such brands

by the committee, the ³Rewards and Benefits´ shall become availa ble f or ex ports of such brands.

Also, if the industry and government work in tandem, then the Indian ex ports will become

globally com petitive.



51

CHAPTER:- 5 CONCLUSION

HISTORY OF INDIA¶S FOREIGN TRADE

On the eve of Inde pendence in 1947, f or eign trade of India was typical of a colonial and

agricultural economy. Trade r elations wer e mainly confined to Britain and other Commonwealthcountries. Ex ports consisted chief ly of raw materials and plantation cr o ps while im ports

com posed of light consumer goods and other manufactur es.

Over the last 60 years, India¶s f or eign trade has undergone a com plete change in ter ms of

com position and dir ection. The ex ports cover a wide range of traditional and non-traditional

items while im ports consist mainly of capital goods, petr oleum pr oducts, raw materials, and

chemicals to meet the ever -incr easing needs of a develo ping and diversifying economy. For

a bout 40 years (1950-90, f or eign trade of India suff er ed fr om strict bur eaucratic and

discr etionary contr ols. Similar ly, f or eign exchange transactions wer e tightly contr olled by the

Government and the Reserve Bank of India. Fr om 1947 till mid-1990s, India, with some exce ptions, always faced deficit in its balance of payments, i.e. im ports always exceeded ex ports.

This was characteristic of a develo ping country struggling f or r econstruction and modernization

of its economy. Im ports gallo ped because of incr easing r equir ements of capital goods, def ence

equipment, petr oleum pr oducts, and raw materials. Ex ports r emained r elatively sluggish owing

to lack of ex porta ble surplus, com petition in the international mark et, inf lation at home, and

incr easing pr otectionist policies of the develo ped countries. Beginning mid-1991, the

Government of India intr oduced a series of r ef or ms to li beralise and globalise the Indian

economy. Ref or ms in the external sector of India wer e intended to integrate the Indian economy

with the wor ld economy.

India¶s appr oach to o penness has been cautious, contingent on achieving certain pr econditions to

ensur e an order ly pr ocess of li beralization and ensuring macr oeconomic sta bility. This appr oach

has been vindicated in r ecent years with the gr owing incidence of financial crises elsewher e in

the wor ld. All the same, the policy r egime in India in r egard to li beralization of the f or eign sector

has witnessed very significant change.



52

DGFT or Dir ectorate General of For eign Trade is a government organization in India

r esponsi ble f or the f or mulation of Exim guidelines and principles f or Indian Importers and

Indian Exporters of the country. Bef or e 1991, DGFT was known as the Chief Contr oller of

Im ports & Ex ports (CCI&E).

DGFT is r esponsi ble f or im plementing the Foreign Trade Policy or Exim Policy with the main

ob jective of pr omoting Indian ex ports.

The Reserve Bank of India and the Government of India, issued various notifications, rules,

orders f or f or eign exchange management.

On 1st

June 2000, the For eign Exchange Management Act, 1999 (FEMA) has r e placed the

For eign Exchange Regulation Act, 1973 (FER A).

The ob jective of FER A was to conserve f or eign exchange r eserves wher eas the ob jective of

FEMA is to facilitate external trade & payments & to pr omote order ly maintenance of the

f or eign exchange mark et in India.



CHAPTER 6:- BIBLIOGRAPHY

BOOKS

IMPOR T DO IT YOUR SELF ±M.I.MAHAJAN

EXPOR T DO IT YOUR SELF ± M.I.MAHAJAN

EXPOR T INCENTIVES ASSISTANCE & FACILITIES- ANITA KUMAR I

FOR EIGN EXCHANGE MANAGEMENT MANUAL ± D.T.KHILANI

INTERNET

www.inf odrive.com

www.eximpolicy.com

www.dateyvs.com/customs07.htm

www.nic.in/exim pol.com

www.wikipedia.org

www.er osentertainment.com

www.er osplc.com

Fen Sum Int Proj

Documents

Transcript of Fen Sum Int Proj