LOGISTICS PROCEDURES FOR IMPORT EXPORT
DEFINITIONS
IMPORT: Any goods brought into Indian territory from a place outside India. EXPORT: Any goods sent to another country from Indian territory.
GOODS : Means Vessels, Aircrafts and Vehicles, Stores, Baggage, Currency and negotiable instruments and any other kind of movable property. INDIA : Includes territorial waters (waters extending into the sea upto a limit of contiguous zone exclusive specified in Territorial waters,economic zone, continental shelf Maritime Zones Act)
TYPES OF GOODS PROHIBITED: Import / export of these goods are completely
banned/prohibited.
RESTRICTED : Permitted to be imported / exported subject to conditions
like Licensing or through only certain permitted agencies etc.
FREE : In general anybody can Import / export by following the procedures
prescribed. Import / export is allowed without restrictions.
Acts Applied
DEPARTMENT OF CUSTOMS ENFORCES THE PROVISIONS OF THE FOLLOWING ACTS/ REGULATIONS 1. Standard of Weights and Measures (packaged commodity) Rules, 1997. Imported packaged commodities shall carry the names, addresses of the importer, net quantity, month and year of packing and retail sales price etc.. 2. Environment protection act. 3. Indian Trade Merchandise Act. 4. Arms Act. 5. Wildlife Act. 6. Plants, fruits, seeds (Regulation of import into India) Orders (PFS) Order 1989 used under Destructive Insects and Pests Act. 7. The live stock importation Act. 1898. 8. Prevention Food Adultration Act, 1954 etc.
Custodian
The goods imported into India and exported out of India are allowed through designated sea ports / land custom station / Airports. Custodians for goods imported / exported by sea is Port Trust Authorities of India. Custodians for goods imported by air, Air Port Authority of India. For places other than points of landing Inland Container Depot (ICD).
INCO TERMS
EX- WORKS FAS ( Free Alongside Ships ) FOB ( Free on Board ) CFR ( Cost and Freight ) CIF ( Cost Insurance Freight ) DDU ( Delivered Duty Unpaid ) DDP ( Delivered Duty Paid )
Ex Works
Seller delivered goods up to his own premises. Buyer's responsibility to bought goods from that sellers premises to his own premises. Following Expenditure will be bear by the buyer in Ex Works. Pick up charges from seller's premises ( Inland movement charges up to Air / Sea Port) Terminal Handling Charges (THC) Custom Clearing on port of loading Bill of lading Sea Freight Piracy Charges
In addition to the above charges Air imports cost Increase by Airport Tax Air Freight ( Basic ) Fuel surcharge / War surcharge Air way bill fee X- ray / scanning charges Security charges Destination charges Collection charges fees Courier charges Cartage charges Import general Manifest Charges Custom clearing at Port of destination
FOB (Free on Board)
Sellers responsibility end once goods pass the ship's rail at the named port of shipment. All the risk will bear by the buyer. Sea freight Piracy charges In addition to the above charges Air Import cost increase by Air Freight ( Basic ) Fuel surcharge / war surcharge Destination charges Collection charges fees Courier charges Cartage charges Import General Manifest charges Custom Clearing at port of destination
CIF ( Cost, Insurance and Freight )
Seller will deliver goods at the buyer's named port Cost insurance and freight is responsibility of the seller up to the named port Cost will bear by the seller but not risk, he only cover the minimum insurance or pre-existed terms of insurance Cost to the buyer Destination charges Collection charges fees Courier charges Cartage charges Import general Manifest Charges Custom Clearing at Port of Destination
Custom Clearing
Custom House Agent will do the custom clearing CHA will take care of Customs Air/sea Port Trust Shipping line/ Air line Local transporter
Following expenditure will bear by the buyer for custom clearing Custom duty, stamp duty Shipping/ Air line charges ( Terminal handling + Delivery Order Charges + Ground rent etc ) Examination charges Transportation charges ( Domestic ) if required Agency/ Service Charges
Preparation of Invoice
UCPDC : Export Invoice should be prepared as per the uniform Customs and practices for documentary credit ( UCPDC ) issued by International Chamber of Commerce. Last revision of UCPDC is UCP600 Proforma invoice
Documents required for the Import / Export
Import Export code no. Export Promotion Council Registration Certificate. Commercial Invoice of Seller. Packing List. Bill of Lading/ Air Way Bill issued by the shipping line/ Airline. Insurance Certificate Authority letter in favor of Dy. Comm. Of Custom for CHA. Purchase Order / Etter of Credit. Catalogue/ Boucher/ Product Literature/ Analyzing certificate. Any other documents required as per the amended law such as chartered Engineering Certificate.
Post Shipment Documents
Certificate of Origin/ GSP issued by the Chamber of the Commerce or Export promotion Council. Air Way Bill / Bill of Lading issued by the Airline / Shipping line. Original Statutory Declaration Form procured by the CHA.
