Q1. What are the mandatory documents for export & import?
Mandatory documents required for export and import are:

  • Bill of Lading/Airway Bill
  • Commercial Invoice cum Packing List
  • Shipping Bill/ Bill of Entry/ Bill of Export

Q2. Whether any other documents in addition to the mandatory documents are required to be furnished?
For specific items of export and import NOC/License or any other documents like Phytosanitary Certificate, Health Certificate, Drug License, etc. as specified document for a specific product to be furnished to ensure legal compliance.

Q3. Whether export/import of goods is permissible through Courier services/Post?
Freely exportable goods through a registered courier service or post are permitted as per Notification(s) issued by DoR. However, the value limit for the same is INR 5,00,000 per consignment.  Similarly, freely importable goods through a registered courier service or post are permitted as per Notification(s) issued under the Customs Act, 1962.

Q4. What is third party exports?
Third party exports means exports made by an exporter or manufacturer on behalf of another exporter(s).

Q5. What is ITC (HS) Codes?
Indian Trade Classification (Harmonized System) [ITC (HS)]is a compilation of codes for all merchandise / goods for export/ import. Goods are classified based on their group or sub-group at 2/4/6/8 digits.

Q6. What are the examination norms for export goods?
The quantum of examination is dependent on the export promotion scheme under which the export is being made as also the destination port. Generally, 5% or 10% of the goods are subjected to examination.

Q7. What is the Let Export Order and how it is given?
When the Customs Officer is satisfied that the particulars entered in the System conform to the description given in the original documents, he gives “Let Export Order”. Once, LEO is given, the Shipping Bill is printed.

Q8. What is Duty Drawback Scheme?
Under the Scheme, exporters are reimbursed the Customs Duty paid on inputs used in export production.

Q9. What is the procedure for claiming Duty Drawback?
Drawback is claimed in the Shipping Bill filed and separate application is required to be filed. After actual export of goods, the Drawback is processed through EDI Systems. The claim amount is directly credited in the designated Bank Account in the designated Bank registered in the System.

Q10. What is the Certificate of Origin (CoO)?
It is an instrument to establish evidence on origin of goods imported into any country. There are two categories of CoO viz. (i) Preferential and (ii) non-preferential.

Q11. What is deemed exports?
The transactions in which goods supplied do not leave the country and payment for the same is either received in INR or in free foreign exchange are categorized under deemed exports.

Q12. Who all are eligible under deemed exports?
Supply of goods under following categories by a manufacturer and by main/ sub-contractors shall be regarded as ‘deemed exports’:-

  • Supply of goods against Advance Authorization/ DFIA/capital goods against EPCG Authorization and to EOU.
  • Supply to Project financed by multilateral/ bilateral agencies, ICB, UN Projects, Nuclear Power Projects, etc.

Q13. What benefits are available under the deemed exports?
Deemed exports shall be eligible for any / all of following benefits in respect of manufacture and supply of goods, qualifying as deemed exports, subject to terms and conditions as given in HBP and ANF-7A: 

  1. Advance Authorisation / Advance Authorisation for annual requirement / DFIA.
  2. Deemed Export Drawback.
  3. Exemption from IGST till 31.03.2022
  4. Refund of terminal excise duty for excisable goods mentioned in Schedule 4 of Central Excise Act 1944 provided the supply is eligible under that category of deemed exports and there is no exemption.

Q14. How are exports be treated under GST?
All exports are deemed as inter-State supplies. Exports of goods and services are treated as zero rated supplies. The exporter has the option either to export under bond/Letter of Undertaking without payment of tax and claim refund of ITC or pay IGST by utilizing ITC or in cash at the time of export and claim refund of IGST paid.

Q15. What is Zero Rated supply under GST?
Zero-rated supply” means export of goods or services or both or supply of goods or services or both to a SEZ developer or a SEZ unit as per section 16 of IGST Act, 2017.  The concept of zero rating of supplies requires the supplies as well as the inputs or input services used in supplying the supplies to be free of GST.

Q16. Can a person claim input tax credit in case of export of exempted goods?
Yes, any zero rated supply is eligible for input tax credit paid by such supplier. As per section 16(2) of the IGST Act, credit of input tax may be availed for making zero-rated supplies; notwithstanding that such supply may be an exempt supply.

Q17. How will imports be taxed under GST?
Import of Goods and Services are treated as deemed inter-state supplies and IGST is levied on import of goods and services in to the country.

Q18. Whether high seas sales treated as supply in GST?
'High Sea Sales' is a common trade practice whereby the original importer sells the goods to a third person before the goods are entered for customs clearance. After the High sea sale of the goods, the Customs declarations i.e. Bill of Entry etc. is filed by the person who buys the goods from the original importer during the said sale. IGST on high sea sale (s) transactions of imported goods, whether one or multiple, shall be levied and collected only at the time of importation i.e. when the import declarations are filed before the Customs authorities for the customs clearance purposes for the first time. Further, value addition accruing in each such high sea sale shall form part of the value on which IGST is collected at the time of clearance.


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