A revocable letter of credit can be cancelled or amended by the issuing bank without any notification to or the consent of the

beneficiary. This type of letter of credit is rarely used because it offers no real assurance to the beneficiary that the letter will, in fact, be honored. Irrevocable letters of credit may not be changed in any way. The letter guarantees the beneficiary that, as long as he conforms to all of terms of the letter for receiving funds, the bank will issue the funds.

A transferable letter of credit is used to transfer the rights and obligations of the beneficiary to a third party. For instance, a vendor who is unable, for some reason, to purchase merchandise from the manufacturer and carry out the sale, may name the manufacturer the beneficiary of a letter of credit. The vendor, in effect, uses the buyer's letter of credit to guarantee the manufacturer that he will be paid.

An unconfirmed letter of credit is issued, usually by a foreign bank, with no verification by a bank in the beneficiary's country. Like the revocable letter of credit, this type of letter offers the beneficiary no real protection if the foreign buyer's bank fails to honor the buyer's commitment. Unlike the unconfirmed letter, a confirmed letter adds protection for the seller because the foreign bank is verified and the funds covered by the letter of credit are guaranteed by a bank in the beneficiary's own country.

 The right to the proceeds of a letter of credit can sometimes be assigned where the beneficiary of a letter of credit is not the actual supplier of all or part of the letter of credit and wants the bank to pay the supplier out of funds received from the letter of credit. The beneficiary may choose this option if he or she Does not want to request a transferable letter of credit from a buyer in order to keep the buyer from knowing who is the actual supplier of the goods. Does not have the necessary credit with the bank to issue a new letter of credit to a supplier. An assignment of proceeds takes the form of an irrevocable instruction from the beneficiary to the bank requesting that it pay the supplier out of the proceeds of the letter of credit which becomes due when documents are presented in compliance with the terms of the letter of credit.

A revolving letter of credit is recyclable. The letter may be used several times, for several identical transactions occurring at different times. If a vendor buys a product every month from the same seller, purchasing the same amount of product at the same price, a revolving letter of credit means that a new letter for each transaction is not needed.

As is the case with the revolving letter of credit, standby letters of credit are infrequently used today. A standby letter of credit is one which is issued as a back-up or form of insurance for the seller should the buyer default on the agreed-upon payment terms. A standby letter of credit is issued in the same way a documentary credit is in that the collateral needed for issuance is required by the issuing bank and the beneficiary must comply with every detail as outlined in the letter of credit. The problem with this instrument is that the applicant has no guarantee, other than the sellers word, that the standby will not be drawn against even if payment is made as agreed. This situation is challenging, especially if the letter of credit is confirmed and the advising bank sees only documents pertaining to the shipment as outlined in the letter of credit and has no knowledge of other payments being made. If the beneficiary is not paid by the buyer, he may withdraw the necessary funds from the buyer's bank using the standby letter of credit : A bank guarantee and a letter of credit are similar in many ways but they're two

different things. Letters of credit ensure that a transaction proceeds as planned, while bank guarantees reduce the loss if the transaction doesn't go as planned. A letter of credit is an obligation taken on by a bank to make a payment once certain criteria are met. Once these terms are completed and confirmed, the bank will transfer the funds. This ensures the payment will be made as long as the services are performed. A bank guarantee, like a line of credit, guarantees a sum of money to a beneficiary. Unlike a line of credit, the sum is only paid if the opposing party does not fulfill the stipulated obligations under the contract. This can be used to essentially insure a buyer or seller from loss or damage due to nonperformance by the other party in a contract. For example a letter of credit could be used in the delivery of goods or the completion of a service. The seller may request that the buyer obtain a letter of credit before the transaction occurs. The buyer would purchase this letter of credit from a bank and forward it to the seller's bank. This letter would substitute the bank's credit for that of its client, ensuring correct and timely payment. A bank guarantee might be used when a buyer obtains goods from a seller then runs into flow difficulties and can't pay the seller. The bank guarantee would pay an agreedupon sum to the seller. Similarly, if the supplier was unable to provide the goods, the bank would then pay the purchaser the agreed-upon sum. Essentially, the bank guarantee acts as a safety measure for the opposing party in the transaction. These financial instruments are often used in trade financing when suppliers, or vendors, are purchasing and selling goods to and from overseas customers with whom they don't have established business relationships. The instruments are designed to reduce the risk taken by each party.

A check written by a financial institution on its own funds. It is then signed by a representative of the financial institution and made payable to a third party. A customer who purchases a cashier's check pays for the full face value of the check and usually also pays a small premium for the service. These checks are secured by the funds of the issuer - usually a bank - and include the name of a payee (the entity to which the check is payable), and the name of the remitter (the entity that paid for the check). An individual could use a cashier's check instead of a personal check to guarantee that his or her funds for payment are available. A cashier's check is secured because the

amount of the check must first be deposited by the individual into the issuing institution's own account. The person or entity to whom the check is made out is then guaranteed to receive the money when cashing the check. Cashier's checks differ from certified checks in that the funds owing on a cashier's check are taken from the issuer's account, while the funds owing on a certified check are taken from the remitter's account.

he Section covers the documents that are commonly used in exporting, but specific requirements vary by destination and product. It is divided in the following sections: common export-related documents, certificates of origin, other certificates for shipments of specific goods, Export licenses and Temporary shipment documents.. Common Export Documents Certificates of Origin Other Certificates for Shipments of Specific Goods Export Licenses Other Export Related Documents Temporary Shipments

Air freight shipments require Airway bills, which can never be made in negotiable form. Airway bills are shipper-specific

A contract between the owner of the goods and the carrier (as with domestic shipments). For vessels, there are two types: a straight bill of lading, which is non-negotiable, and a negotiable or shipper's order bill of lading. The latter can be bought, sold, or traded while the goods are in transit. The customer usually needs an original as proof of ownership to take possession of the goods.

A bill for the goods from the seller to the buyer. These invoices are often used by governments to determine the true value of goods when assessing customs duties. Governments that use the commercial invoice to control imports will often specify its form, content, number of copies, language to be used, and other characteristics

Considerably more detailed and informative than a standard domestic packing list, it lists seller, buyer, shipper, invoice number, date of shipment, mode of transport, carrier, and itemizes quantity, description, the type of package, such as a box, crate, drum, or carton, the quantity of packages, total net and gross weight (in kilograms), package marks, and dimensions, if appropriate. Both commercial stationers and freight forwarders carry packing list forms. A packing list may serve as conforming document. It is not a substitute for a commercial invoice.

The Certificate of Origin (CO) is required by some countries The Certificate of Origin (Non preferential) is issued by Chambers of Commerce and authorities specified in Appendix 4 C of the Hand Book of Procedures, Vol I. Some countries have preferential agreements with some other countries. As a result, the importing country will levy a preferential tariff as per its agreement with another Partner country. In order to avail this, Certiifcate of Origin (Preferential) has to be obtained. The organizations which can issue CoO (Preferential) are noted in Appendix 4 A of the Handbook of Procedures, Vol I Note: Some countries (i.e. Middle East) require that certificate of origin issued by the competent authority (Sale and Commerce Certificate) which appears in Appendix- 39 of the HBP, Vol I. The Commerce Certificate should be attested by the Counsel of the Consulate of the Import Country, otherwise it is not allowed to be unloaded. . : A certificate of analysis is required for seeds, grain, health foods, dietary supplements, fruits and vegetables, and pharmaceutical products.

Certificate of free sale may be issued for biologics, food, drugs, medical devices and veterinary medicine.. Health authorities in some states as well as some trade associations also issue Certificates of Free Sale.

Exports submitted for handling by air carriers and air freight forwarders classified as dangerous goods need to be accompanied by the Shippers Declaration for Dangerous Goods (sample) required by the International Air Transport Association (IATA). The exporter is responsible for accuracy of the form and ensuring that requirements related to packaging, marking, and other required information by IATA have been met. For shipment of dangerous goods it is critical to identify goods by proper name, comply with packaging and labeling requirements (they vary depending upon type of product shipper and country shipped to). More information on labeling/regulations is available from the International Air Transportation Association or Department of Transportation HAZMAT websites.

Some countries insist for Fisheries Certificate which is issued by the Fisheries authorities.

The Fumigation Certificate provides evidence of the fumigation of exported goods (esp. agricultural products, used clothing, etc). This form assists in quarantine clearance of any goods of plant or animal origin. The seller to fumigate commodity at their expense a maximum of fifteen (15) days prior to loading.

Required by most countries in the Middle East, this certificate states that the fresh or frozen meat or poultry products were slaughtered in accordance with Islamic law. Certification by an appropriate chamber and legalization by the consulate of the destination country is usually required.

For shipment of live animals and animal products (processed foodstuffs, poultry, meat, fish seafood, dairy products, and eggs and egg products).

A certificate of ingredients may be requested for food products with labels that are inadequate or incomplete. The certificate may be issued by the manufacturer and must give a description of the product, contents and percentage of each ingredient, chemical

data, microbiological standards, storage instructions, shelf life, and date of manufacture. If animal fats are used, the certificate must state the type of fat used and that the product contains no pork, artificial pork flavor, or pork fat. All foodstuffs are subject to analysis by Ministry of Health laboratories to establish their fitness for use.

Weight and Quality certificates should be provided in accordance with governing regulations for loading at port and loading at source/mill site as appropriate. A certificate of origin certified by local chamber of commerce at load port and a Phytosanitary certificate issued by Ministry of Agriculture and Fumigation certificate are to be provided to buyer. Costs of all inspection, certificates/ documents at the load port are usually the responsibility of the seller.

Used to assure the consignee that insurance will cover the loss of or damage to the cargo during transit (Sample). These can be obtained from your freight forwarder or publishing house. Note: an airway bill can serve as an insurance certificate for a shipment by air. Some countries may require certification or notification.

All shipments of fresh fruits and vegetables, seeds, nuts, flour, rice, grains, lumber, plants, and plant materials require a federal phytosanitary certificate. The certificate must verify that the product is free from specified epidemics and/or agricultural diseases. Additional information and forms are available from Ministry of Agriculture.

Some counties including Saudi Arabia may require this certificate for some plant and animal imports. The certificate is statement that the products are not contaminated by radioactivity.

A declaration attached to a bill of lading or airway bill stating that the shipper will not stop at an unscheduled port, attesting to the accuracy of the shipping route and providing other shipping information such as name of vessel/plane, nationality of vessel/plane, owner of vessel/plane, names of ports of call including port of leading and discharge.

Shaving brushes and articles made of raw hair must be accompanied by a recognized official certificate showing the consignment to be free from anthrax germs. Used clothing requires a disinfection certificate. Grain requires a fumigation certificate, and grain and seeds require a certificate of weight. Many countries in the Middle East require special certificates for imports of animal fodder additives, livestock, pets, and horses.

Certificate of weight is a document issued by customs, certifying gross weight of the exported goods.

Import/Export are free, unless regulated. A person who desires to export goods, need to register by getting an Import-Export Code from the authority(Director General of Foreign Trade) who holds jurisdiction over the territory, and this is gone into Appendix I of HBP,Vol I. There are certain items which are regulated for export. Prior authorization need to be obtained from DGFT through various channels prescribed in the Policy.

Required in some countries, it describes the shipment of goods and shows information such as the consignor, consignee, and value of the shipment. If required, copies are available from the destination country's Embassy or Consulate in India.

Used to transfer accountability when the export item is moved by the domestic carrier to the port of embarkation and left with the ship line for export.

Import licenses are the responsibility of the importer and vary depending upon destination and product. However, including a copy of an import license with the rest of your documentation may in some cases help avoid problems with customs in the destination country.

The International Standards for Phytosanitary Measures Guidelines for Regulating Wood Packaging Material in International Trade (ISPM15) is one of several International Standards for Phytosanitary Measures adopted by the International Plant Protection Convention (IPPC). The IPPC is an international treaty to secure action to prevent the spread and introduction of pests of plants and plant products, and to promote appropriate measures for their control. The authorities which issue phytosanitary certificate for wood package materials are notified.

The governments of a number of countries have contracted with international inspection companies to verify the quantity, quality, and price of shipments imported into their countries. The purpose of such inspections is to ensure that the price charged by the exporter reflects the true value of the goods, to prevent substandard goods from entering the country, and to deflect attempts to avoid payment of customs duties. Requirements for pre-shipment inspection are normally spelled out in letter-of-credit or other documentary requirements.. Some countries require pre-shipment inspection certificates for shipments of used merchandise.

Issued by the carrier or the forwarder includes shipping instructions for air or ocean shipment . When preparing for Export Documentation and Export Shipping, the exporter needs to be aware of packing, labeling, documentation, and insurance requirements. Because the goods are being shipped by unknown carriers to distant customers, the new exporter must be sure to follow all shipping requirements to help ensure that the merchandise is packed correctly so that it arrives in good condition; labeled correctly to ensure that the goods are handled properly and arrive on time and at the right place;

documented correctly to meet local and foreign government requirements as well as proper collection standards; and insured against damage, loss, and pilferage and, in some cases, delay. Because of the variety of considerations involved in the physical process, most exporters, both new and experienced, rely on an international freight forwarder to perform these services.

The international freight forwarder acts as an agent for the exporter in moving cargo to the overseas destination. These agents are familiar with the import rules and regulations of foreign countries, methods of shipping, government export regulations, and the documents connected with foreign trade. Freight forwarders can assist with an order from the start by advising the exporter of the freight costs, port charges, consular fees, cost of special documentation, and insurance costs as well as their handling fees - all of which help in preparing price quotations. Freight forwarders may also recommend the type of packing for best protecting the merchandise in transit; they can arrange to have the merchandise packed at the port or containerized. The cost for their services is a legitimate export cost that should be figured into the price charged to the customer. When the order is ready to ship, freight forwarders should be able to review the letter of credit, commercial invoices, packing list, and so on to ensure that everything is in order. They can also reserve the necessary space on board an ocean vessel, if the exporter desires. If the cargo arrives at the port of export and the exporter has not already done so, freight forwarders may make the necessary arrangements with customs brokers to ensure that the goods comply with customs export documentation regulations. In addition, they may have the goods delivered to the carrier in time for loading. They may also prepare the bill of lading and any special required documentation. After shipment, they forward all documents directly to the customer or to the paying bank if desired.

In packing an item for export, the shipper should be aware of the demands that exporting puts on a package. Four problems must be kept in mind when an export shipping crate is being designed: breakage, weight, moisture, and pilferage. Most general cargo is carried in containers, but some is still shipped as break-bulk cargo. Besides the normal handling encountered in domestic transportation, a break-bulk shipment moving by ocean freight may be loaded aboard vessels in a net or by a sling,

conveyor, chute, or other method, putting added strain on the package. In the ship's hold, goods may be stacked on top of one another or come into violent contact with other goods during the voyage. Overseas, handling facilities may be less sophisticated than in your country and the cargo may be dragged, pushed, rolled, or dropped during unloading, while moving through customs, or in transit to the final destination. Moisture is a constant problem because cargo is subject to condensation even in the hold of a ship equipped with air conditioning and a dehumidifier. The cargo may also be unloaded in the rain, and some foreign ports do not have covered storage facilities. In addition, unless the cargo is adequately protected, theft and pilferage are constant threats. Since proper packing is essential in exporting, often the buyer specifies packing requirements. If the buyer does not so specify, be sure the goods are prepared with the following considerations in mind: Pack in strong containers, adequately sealed and filled when possible. To provide proper bracing in the container, regardless of size, make sure the weight is evenly distributed. Goods should be packed in oceangoing containers, if possible, or on pallets to ensure greater ease in handling. Packages and packing filler should be made of moisture-resistant material. To avoid pilferage, avoid mentioning contents or brand names on packages. In addition, strapping, seals, and shrink wrapping are effective means of deterring theft. One popular method of shipment is the use of containers obtained from carriers or private leasing concerns. These containers vary in size, material, and construction and can accommodate most cargo, but they are best suited for standard package sizes and shapes. Some containers are no more than semi-truck trailers lifted off their wheels and placed on a vessel at the port of export. They are then transferred to another set of wheels at the port of import for movement to an inland destination. Refrigerated and liquid bulk containers are readily available. Normally, air shipments require less heavy packing than ocean shipments, but they must still be adequately protected, especially if highly pilferable items are packed in domestic containers. In many instances, standard domestic packing is acceptable, especially if the product is durable and there is no concern for display packaging. In other instances, high-test (at least 250 pounds per square inch) cardboard or tri-wall construction boxes are more than adequate. For both ocean and air shipments, freight forwarders and carriers can advise on the best packaging. Marine insurance companies are also available for consultation. It is

recommended that a professional firm be hired to package for export if the exporter is not equipped for the task. This service is usually provided at a moderate cost. Finally, because transportation costs are determined by volume and weight, special reinforced and lightweight packing materials have been devised for exporting. Care in packing goods to minimize volume and weight while giving strength may well save money while ensuring that goods are properly packed.

Specific marking and labeling is used on export shipping cartons and containers to meet shipping regulations, ensure proper handling, conceal the identity of the contents, and help receivers identify shipments. The overseas buyer usually specifies export marks that should appear on the cargo for easy identification by receivers. Many markings may be needed for shipment. Exporters need to put the following markings on cartons to be shipped: Shipper's mark. Country of origin (exporters country). Weight marking (in pounds and in kilograms). Number of packages and size of cases (in inches and centimeters). Handling marks (international pictorial symbols). Cautionary markings, such as "This Side Up" or "Use No Hooks" (in English and in the language of the country of destination). Port of entry. Labels for hazardous materials (universal symbols adapted by the International Maritime Organization). Legibility is extremely important to prevent misunderstandings and delays in shipping. Letters are generally stenciled onto packages and containers in waterproof ink. Markings should appear on three faces of the container, preferably on the top and on the two ends or the two sides. Old markings must be completely removed. In addition to port marks, customer identification code, and indication of origin, the marks should include the package number, gross and net weights, and dimensions. If more than one package is being shipped, the total number of packages in the shipment should be included in the markings. The exporter should also include any special handling instructions on the package. It is a good idea to repeat these instructions in the language of the country of destination. Standard international shipping and handling symbols should also be used.

Exporters may find that customs regulations regarding freight labeling are strictly enforced; for example, most countries require that the country of origin be clearly labeled on each imported package. Most freight forwarders and export packing specialists can supply necessary information regarding specific regulations.

Exporters should seriously consider having the freight forwarder handle the formidable amount of documentation that exporting requires; freight forwarders are specialists in this process. The following documents are commonly used in exporting; which of them are actually used in each case depends on the requirements of both our government and the government of the importing country. As in a domestic transaction, the commercial invoice is a bill for the goods from the buyer to the seller. A commercial invoice should include basic information about the transaction, including a description of the goods, the address of the shipper and seller, and the delivery and payment terms. The buyer needs the invoice to prove ownership and to arrange payment. Some governments use the commercial invoice to assess customs duties. Bills of lading are contracts between the owner of the goods and the carrier (as with domestic shipments). There are two types. A straight bill of lading is nonnegotiable. A negotiable or shipper's order bill of lading can be bought, sold, or traded while goods are in transit and is used for letter-of-credit transactions. The customer usually needs the original or a copy as proof of ownership to take possession of the goods. Certain nations require a consular invoice, which is used to control and identify goods. The invoice must be purchased from the consulate of the country to which the goods are being shipped and usually must be prepared in the language of that country. Certain nations require a signed statement as to the origin of the export item. Such certificates are usually obtained through a semiofficial organization such as a local chamber of commerce. A certificate may be required even though the commercial invoice contains the information. Some purchasers and countries may require a certificate of inspection attesting to the specifications of the goods shipped, usually performed by a third party. Inspection certificates are often obtained from independent testing organizations.

These receipts are used to transfer accountability when the export item is moved by the domestic carrier to the port of embarkation and left with the international carrier for export. This statement appears on the commercial invoice, ocean or air waybill of lading, and SED to notify the carrier and all foreign parties that the item may be exported only to certain destinations. If the seller provides insurance, the insurance certificate states the type and amount of coverage. This instrument is negotiable.

Considerably more detailed and informative than a standard domestic packing list, an export packing list itemizes the material in each individual package and indicates the type of package: box, crate, drum, carton, and so on. It shows the individual net, legal, tare, and gross weights and measurements for each package . Package markings should be shown along with the shipper's and buyer's references. The packing list should be attached to the outside of a package in a waterproof envelope marked "packing list enclosed." The list is used by the shipper or forwarding agent to determine (1) the total shipment weight and volume and (2) whether the correct cargo is being shipped. In addition, customs officials (both local and foreign) may use the list to check the cargo. Documentation must be precise. Slight discrepancies or omissions may prevent merchandise from being exported, result in exporting firms not getting paid, or even result in the seizure of the exporter's goods by local or foreign government customs. Collection documents are subject to precise time limits and may not be honored by a bank if out of date. Much of the documentation is routine for freight forwarders or customs brokers acting on the firm's behalf, but the exporter is ultimately responsible for the accuracy of the documentation. The number of documents the exporter must deal with varies depending on the destination of the shipment. Because each country has different import regulations, the exporter must be careful to provide proper documentation. If the exporter does not rely on the services of a freight forwarder, there are several methods of obtaining information on foreign import restrictions: Foreign government embassies and consulates can often provide information on import regulations.

The Air Cargo Tariff Guidebook lists country-by-country regulations affecting air shipments. Other information includes tariff rules and rates, transportation charges, air waybill information, and special carrier regulations. The National Council on International Trade Documentation (NCITD) provides several low-cost publications that contain information on specific documentation commonly used in international trade. NCITD provides a free listing of its publications. Contact National Council on International Trade Documentation, 350 Broadway, Suite 1200, New York, NY 10013; telephone 212-925-1400.

The handling of transportation is similar for domestic orders and export orders. The export marks should be added to the standard information shown on a domestic bill of lading and should show the name of the exporting carrier and the latest allowed arrival date at the port of export. The exporter should also include instructions for the inland carrier to notify the international freight forwarder by telephone on arrival. International shipments are increasingly being made on a through bill of lading under a multimodal contract. The multimodal transport operator (frequently one of the modal carriers) takes charge of and responsibility for the entire movement from factory to the final destination. When determining the method of international shipping, the exporter may find it useful to consult with a freight forwarder. Since carriers are often used for large and bulky shipments, the exporter should reserve space on the carrier well before actual shipment date (this reservation is called the booking contract). The exporter should consider the cost of shipment, delivery schedule, and accessibility to the shipped product by the foreign buyer when determining the method of international shipping. Although air carriers are more expensive, their cost may be offset by lower domestic shipping costs (because they may use a local airport instead of a coastal seaport) and quicker delivery times. These factors may give the exporter an edge over other competitors, whose service to their accounts may be less timely. Before shipping, the firm should be sure to check with the foreign buyer about the destination of the goods. Buyers often wish the goods to be shipped to a free-trade zone or a free port where goods are exempt from import duties. Documents Required Certain documentation takes place while exporting from India. Special documents may be required depending on the type of product or destination. Certain export products

may require a quality control inspection certificate from the Export Inspection Agency. Some food and pharmaceutical product may require a health or sanitary certificate for export

Shipping Bill/ Bill of Export is the main document required by the Customs Authority for allowing shipment. Usually the Shipping Bill is of four types and the major distinction lies with regard to the goods being subject to certain conditions which are mentioned below: Export duty/ cess Free of duty/ cess Entitlement of duty drawback Entitlement of credit of duty under DEPB Scheme Re-export of imported goods The following are the documents required for the processing of the Shipping Bill: GR forms (in duplicate) for shipment to all the countries. 4 copies of the packing list mentioning the contents, quantity, gross and net weight of each package. 4 copies of invoices which contains all relevant particulars like number of packages, quantity, unit rate, total f.o.b./ c.i.f. value, correct & full description of goods etc. Contract, L/C, Purchase Order of the overseas buyer. AR4 (both original and duplicate) and invoice. Inspection/ Examination Certificate. The formats presented for the Shipping Bill are as given below: White Shipping Bill in triplicate for export of duty free of goods. Green Shipping Bill in quadruplicate for the export of goods which are under claim for duty drawback. Yellow Shipping Bill in triplicate for the export of dutiable goods. Blue Shipping Bill in 7 copies for exports under the DEPB scheme. Note: - For the goods which are cleared by Land Customs, Bill of Export (also of 4 types white, green, yellow & pink) is required instead of Shipping Bill

1. Registration: The exporters have to obtain PAN based Business Identification Number (BIN) from DGFT prior to filing of shipping bill for clearance of export goods. Under the EDI system, PAN based BIN is received by the Customs System from DGFT online. The exporters are also required to register authorized foreign exchange dealer code(through which export proceeds are expected to be realized) and open a Current a/c in the designated bank (nominated by Customs department) for credit of any drawback incentive. All exporters intending to export under the export promotion scheme need to get their licences/DEEC book, etc registered at the Customs EDI System. For such registration, original documents are required. Under Manual System, shipping bill is to be submitted as prescribed in the Shipping Bill and Bill of Export (Form) Regulations, 1991. Invoice, AR-4, packing list should be appended. The officer in Export Section/Shed checks the value of goods, classification under DDB schedule in case of DDB Shipping bills, rate of duty/cess where applicable, exportability of goods under FTP and other laws. The DEEC/DEPB shipping bills are processed in the DEEC group. After check, the exporter/his agent present the goods to the shed appriser/supdt (export) for examination. If satisfied, let export order is released, and escort officer for supervising of load on to aircraft takes over. If the authorities are finding an ill match, an amendment in description/value is required or any other action need be taken need be initiated or the shipping bill is sent back to the Appraiser (Export-Assessment). : Under EDI, declarations in the prescribed format are to be filed through the Service centre of Customs. A check list is generated for verification of data by the exporter/CHA. After verification, the data is submitted to the System, and the system generates a shipping bill number, which is endorsed on the printed check list and returned to the Exporter/CHA. For export items, subject to export cess, the TR-6 challans for cess is printed and given after the submission of shipping bill. The cess can be paid on the basis of the challan to the designated bank. No copy of the shipping bill is made available to the exporter/CHA at this stage.

: Shipping bill is processed by the system on the basis of declarations made by the exporter. SB when processed on screen by Customs officer, he may call for samples, if required, for checking the declared value for checking classification under DDB. He may also instruct for special examination of goods.

: If the shipping bill is cleared, the goods are brought into shed for examination and export. In case of any ambiguity, doubts need to be cleared at the Service centre or by CHA having EDI connectivity through his terminal. Customs officer passes the shipping bill on satisfaction.

Customs officer will see all the documents, and may verify the quantity of goods received and entered into the system and thereafter mark the Electronic Shipping Bill, and all documents are handed over to the Shed Appraiser who may assign Custom Inspector for examination and endorses his name, and packages to be examined to the Exporter. Customs Inspector inspects/examines the shipment along with the shed appriser. Examination report is fed to the system. He then marks the electronic bill along with all original documents and check list to Shed Appraiser. If everything is in order, Shed Appraiser allows let export for the shipment after duly informing the Exporter/agent If any discrepancy or variation is noticed, Asst Commr/Dy Commr meets the exporter/CHA and if they concur with Customs observations, the Shipping Bill is processed accordingly. In case of dispute, it is finalized according to principles of natural justice. : The exporter/agent hands over the exporter copy of the shipping bill, duly signed by the Appraiser permitting, let export, to the Examiner/Inspector for allowing shipment. The supervisor who is in charge of loading the Container/general cargo into the vessel gives the endorsement stamped on the exporters copy of the shipping bill as .

Appriser (Export) orders samples to be drawn and tested; the Customs Examiner/Inspector draws two samples from the consignment and enters the particulars thereof along with the testing agency in the ICES/E system. 3 copies of the test memo are prepared by Customs duly signed by Examiner/Inspector and exporter/agent. Original- to be sent with the sample to the test agency Duplicate: customs copy to be retained with the 2nd sample

Triplicate: Exporters copy Asst Commr/Dy Commr, may also order to be drawn for the purpose other than testing such as visual inspection and verification of description, market value, enquiry

If the goods have not been allowed let export amendment may be permitted by Asst Commissioner; Where the let export order has already been given, amendments may be permitted only by the Additional/Jt Commr (in charge of Export section) In both cases, after the permission for amendments have been granted, Asst/Dy Commr may approve amendments on the system on behalf of Addln/Jt Comm. print copy of the shipping bill has been released, the exporter shall surrender all copies of shipping bill to Shed Appraiser for cancellation before amendment is approved on the system

After actual export of goods, DDB claim is processed through EDI system by the officers of the DDB branch on FCFS. There is no need for filing separate drawback claims. If any query/deficiency is noticed, the exporter needs to clarify the issue. All claims sanctioned on a particular day are enumerated in a scroll and transferred to the Bank through the system. The bank credits the DDB amounts in the respective accounts of the exporters. Bank sends a fortnightly statement of such credits to its constituents.

After the let export order is given on the system by the Appriser, the Shipping Bill is generated by the system in two copies, one Customs copy, two, Exporters copy (E.P. copy is generated after submission of EGM). After obtaining the print, Appraiser obtains the signature of Customs Examiner/Inspector on the examination report and agent of the exporter on both copies of the shipping bill and examination report. The appraiser, thereafter, signs and stamps both the copies of the shipping bill at the specified place. The Appraiser also signs and stamps the original/duplicate copy of statutory declaration form (SDF) Customs copy of the Shipping Bill and original copy of SDF is retained along with the original declarations by the Appraiser and forwarded to Export dept of Customs. Exporters copy and second copy of SDF is handed over to Exporter/his agent.

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Export House (EH) Star Export House (SHE) Trading house (TH) Star Trading House (STH) Premier Trading House (PTH)

Rs 20 Cr Rs 100 Cr Rs 500 Cr Rs 2,500 Cr Rs 10,000 Cr

Under MAI scheme, financial assistance is provided for export promotion activities on focus country, focus product basis. Financial assistance is available for Export Promotion Councils (EPCs), Industry and Trade Associations (ITAs), Agencies of State Government, Indian Commercial Missions (ICMs) abroad and other national level institutions/eligible entities as may be notified. A whole range of activities can be funded under MAI scheme. These include, amongst others, i. Market studies/surveys, ii. Setting up of showroom / warehouse, iii. Participation in international trade fairs, iv. Displays in International departmental stores, v. Publicity campaigns, vi. Brand promotion, vii. Reimbursement of registration charges for pharmaceuticals and expenses for carrying out clinical trials etc., in fulfillment of statutory requirements in the buyer country, viii. Testing charges for engineering products abroad. ix. Assistance for contesting Anti Dumping litigations etc.

Each of these export promotion activities can receive financial assistance from Government ranging from 25% to 100% of total cost depending upon activity and implementing agency. Full text of guidelines is available at http://commerce.nic.in.

Under MDA Scheme, financial assistance is provided for a range of export promotion activities implemented by EPCs and Trade Promotion Organizations on the basis of approved annual action plans. The scheme is administered by DOC. Assistance includes, amongst others, participation in: i. Trade Fairs and Buyer Seller meets abroad or in India, and ii. Export promotions seminars. iii. Financial assistance with travel grant is available to exporters traveling to focus areas, viz., Latin America, Africa, CIS region, ASEAN countries, Australia and New Zealand. In other areas, financial assistance without travel grant is available. MDA assistance is available for exports having an annual export turnover as prescribed in MDA guidelines. Full text of guidelines is available at http://commerce.nic.in. Meeting expenses for statutory compliances in buyer country for Trade Related Matters DOC provides for reimbursement of charges/expenses for fulfilling statutory requirements in the buyer country, including registration charges for product registration for pharmaceuticals, bio-technology and agro-chemicals products on recommendation of EPCs. Financial assistance is also provided for contesting litigation(s) in the foreign Country concerning restrictions/anti dumping duties etc on particular product(s) of Indian origin, as provided under the Market Access Initiative (MAI) Scheme of DOC.

Export promotion continues to be a major thrust area for the Government. In view of the prevailing macro economic situation with emphasis on exports and to facilitate various measures being undertaken to stimulate and diversify the countrys export trade, Marketing Development Assistance (MDA) Scheme is under operation through the Department of Commerce to support the under mentioned activities: (i) Assist exporters for export promotion activities abroad (ii) Assist Export Promotion Councils (EPCs) to undertake export promotion activities for their product(s) and commodities (iii) Assist approved organizations/trade bodies in undertaking exclusive nonrecurring innovative activities connected with export promotion efforts for their members (iv) Assist EPCs to contest Countervailing Duty/Anti Dumping cases initiated abroad (v) Assist Focus export promotion programmes in specific regions abroad like FOCUS (LAC), Focus (Africa), Focus (CIS) and Focus (ASEAN + 2) programmes. (vi) Residual essential activities connected with marketing promotion efforts abroad. 2. Administration of the Scheme (i) The utilization of scheme is administered by the E&MDA Division in the Department of Commerce, Government of India, Udyog Bhavan, New Delhi 110 011. Recognized EPCs on product grouping basis, Commodity Boards and Export Development Authorities are eligible for MDA assistance for development and promotional activities to promote exports of their products and commodities from India. (ii) MDA budget allocation to recognized EPCs and other export promotion organizations for export promotion activities including specific special development and promotional projects are finalized in annual meetings with the respective EPCs, which are chaired, by the Additional Secretary and Financial Advisor (AS&FA), Department of Commerce. Proposals for adhoc grants for exclusive innovative export promotional activities, which are considered helpful to promote exports of Indian products and commodities are examined by the E&MDA Division and decided with the approval of the AS&FA. (iii) Proposals of individual exporters for eligible MDA supported activities like participation in EPC led Trade Delegations/BSMs/Trade Fairs/Exhibitions for reimbursement of MDA assistance are considered and approved by the Chief Executive

Officer of the Export Promotion Councils/FIEO etc. The MDA Committee in the Deptt. of Commerce shall test check 10% of the cases approved by the EPCs etc. through a random selection method, based on the monthly progress reports to be send by the EPCs. (iv) Proposals received from concerned EPCs for assistance to contest countervailing duty and anti dumping duty proceedings initiated abroad are considered by a specific committee constituted in this regard under the chairmanship of AS&FA. 3. Assistance to individual exporters for export promotion activities abroad Participation in EPC etc. led Trade Delegations/BSMs/ Trade Fairs/Exhibitions: (i) Exporting companies with an f.o.b. value of exports of up to Rs. 5 crore in the preceding year will be eligible for MDA assistance for participation in EPC etc. led trade delegations/BSMs/fairs/exhibitions abroad to explore new markets for export of their specific product(s) and commodities from India in the initial phase. This will be subject to the condition that the exporter is having complete 12 months membership with concerned EPC etc. and filing of returns with concerned EPC/organization regularly. Assistance would be permissible on travel expenses by air, in economy excursion class fair and/or charges of the built up furnished stall, @ 90% for exporters having valid SSI registration certification and @ 75% for others including merchant exporters. This would, however, be subject to an upper ceiling mentioned below in the table per tour.

(ii)

(1) 1. 2.

(2) Focus LAC Focus Africa(incl Wana

(3) 1 1

(4) 90,000 60,000

(5) 50,000 50,000

(6) 1,40,000 1,10,000

3. 4. 5.

countries) Focus CIS Focus ASEAN General Areas :

1 1 1 5

60,000 60,000 -

50,000 50,000 50,000

1,10,000 1,10,000 50,000

The participation of individual companies in the above activities shall be subject to the following conditions: (1) For EPC etc. led Trade Delegations/BSMs only air-fare by Economy Excursion class as indicated in Column 4 above shall be permissible. For participation in Trade Fairs/Exhibitions stall charges in addition to travel expenditure shall also be permissible subject to ceilings mentioned in the column 6 in the above table. (2) Maximum number of permissible participations shall be five in a financial year as indicated in above table (No travel grant is permissible for one visit to General Areas). (3) Assistance shall be permissible to one regular employee/director/ Partner/proprietor of the company. Assistance would not be available to exporter of foreign nationality or holding foreign passport. (4) Intimation application must be received in the concerned EPC etc. with a minimum of 14 days clear advance notice excluding the date of receipt of application in the office of the concerned organization and the date of departure from the country. (5) The company shall not be under investigation/charged/prosecuted/debarred/black listed under EXIM Policy of India or any other law relating to export and import business. (6) Maximum MDA assistance shall be inclusive of MDA assistance received from all Govt. bodies/FIEO/EPCs/Commodity Boards/Export Development Authorities/ITPO etc., (7) A Maximum of three participations in a particular trade fair/exhibition would be eligible for MDA assistance and exporting companies after availing assistance three times including past cases for a particular fair/exhibition, have to participate in that fair, if any, on self-financing basis. 4. :

(i)

Export Promotion Councils (EPCs) are autonomous in administrative matters and no financial assistance is provided to them from MDA from administrative expenditure (non-code). List of recognized EPCs is given in Annexure-I. The EPCs can, however, be considered for one time assistance for computerization for data collection, analysis, dissemination under MDA.Maintenance and updating of systems shall be the responsibility of the EPCs. EPCs are required to send their detailed annual action plan to E&MDA Division three months in advance. The activities approved in the annual meetings with each EPC well before the start of the financial year shall only be financed from MDA funds. EPCs shall have to utilize the MDA funds in a financial year for purposes for which these are sanctioned. Earmarked grant for the financial year but not claimed within the year or wherein complete information has not been provided to facilitate its release, would lapse and shall not be carried over to the next financial year.

(ii)

EPCs shall have to furnish detailed accounts activity-wise for each approved code activity certified by a Chartered Accountant and the utilization certificate for the funds released in a financial year by 30th September of the succeeding financial year positively. The EPCs shall qualify for release for second installment of funds of the year only after their accounts for the preceding year have been finalized. (iv) The EPCs shall plan development and export promotion activities in overseas markets for export promotion of particular products, based on the findings of the desktop studies/findings of the strategy papers on potential of exports and data available with institutes like NCTI etc., to penetrate into new potential markets and to consolidate in the already explored export markets. Eligible activities shall be trade delegations to potential markets, organizing participation in the important trade fairs/exhibitions in the focus markets associated with BSMs, focused publicity for the event etc. (v) Role of the EPCs shall be to diversify the export promotion activities to new emerging potential markets wherein the participation by the Indian companies is yet to be established. The trade fairs/exhibitions organized and participated by the EPCs on three or more occasions shall be left to the exporters for participation individually. For such established trade fairs/exhibitions, EPC shall organize booking of the space/stalls for its members based on the pre-accessed requirement, construction/furnishing of stalls, publicity for the event etc. Member exporters of the council shall participate individually in the space/stall allotted to them by the EPC. MDA assistance to the EPC shall be available for a particular fair/exhibition up to a maximum of three participations and thereafter, participation in such established fairs/exhibitions shall be on self-financing basis.

(iii)

(vi) Export Promotion Councils with the prior approval of the E&MDA Division, based on the recommendations of the concerned Commodity Division(s) of the Department of Commerce/Ministry of Textiles can undertake promotional& export development activities abroad and within India with assistance from MDA to stimulate and diversify the exports of Indian products and commodities as fol lows:

. S No (i)

Permissible items of expenditure Percentage of under MDA Funding under MDA Participation in fairs/Exhibitions abroad by EPCs etc
1. Central Stall of Council 60% of (i) + (ii) subject to a (i)Rent of Councils area ceiling of Rs 10 lakhs per (ii)* Other organizing event expenditure(maximum 30% of Rent of Councils area Air fare for one official of 100% One official of EPC in Economy class (visa charges to be met by the Council) DA for one official of EPC. As 100% Per Notified MEA rates for Govt officials of equivalent status Hotel stay for 1 official of 100% EPC. On scales applicable to Equivalent Govt officials on duty abroad and subject to furnishing of original bills (with upper class ceiling of US $ 150/per night stay) Entertainment: (i) EPC sponsored activity led US $ 500 by Chairman (ii) For EPC sponsored activity led by Vice US $ 250 Chmn/ED/Addln ED(production of bills) 60% of (i)+(ii) (subject to a ceiling of Rs 10 lakhs per event)

2.

3.

4.

5.

(ii)
1. (i) Venue Cost (ii)* All other organizing Expenditure(max: 30% of

Venue cost) 2. Air fare, DA,Hotel stay of one Official of EPC 3. Entertainment

As applicable in the case of participation in fairs/exhibitions As applicable in the case of participation in fairs/exhibitions 60% (subject to a maximum ceiling of Rs 75,000/- per event)

(iii)
1. Organizing Seminars, workShops etc on quality up-gradation, awareness creation etc, with a focus on export promotion (i) Venue Cost (ii) All other organizing expenses (max: 30% of Venue cost) 2. Organizing of important international fairs/exhibitions of India(except from MDA only for 3 years) (i) Venue Cost (ii) *All other organizing Expenditure(max:30% of venue cost) 3. Buyer-Seller Meet in India Venue Cost *All other organizing Expenditure (Max: 30% of venue cost) (i) (ii)

60% of (i)+(ii)(subject to a ceiling of Rs 10 lakh per event)

60% of (i)+(ii) (subject to a ceiling of Rs 110 lakh per event)

(iv)
1. Publicity/publicity with focus On export promotion & circulated/ Use of overseas buyers/Orgzns (ii)Advertisement abroad (iii)Publication for circulation To members/publicity Within the country 60% of net approved expenditure after accounting for revenue generated thro sales, advt, etc (iii) Not eligible

Note: (1) Expenses relating to stay, per diem allowance, local travel, etc of Councils official, etc., for activities within India are to be met by the EPCs (2) MDA grant required for exporters accompanying the EPCs led delegation/Trade fair/exhibition is required to be shown along with budget activity in the Annual Action Plan *(Vide MoC amendment letter 2/1/2004-E&MDA dated 12-4-2005 w.e.f 1-4-2005, for event within India/ or abroad, venue cost, other organizing expenditure 60% of actual expenditure shall be reimbursed, subject to a ceiling of Rs 10 lakhs per event.) :
At present 4 Focus Area programmes viz. Focus (LAC), Focus (Africa), Focus (CIS) and Focus (ASEAN+2) are under operation in the Department. In addition to activities in non focus areas, special provision has been made under Reverse Trade Visits for visit of prominent delegates and buyers (one person from each organization) from these Focus Area Regions for participation in buyer cum seller meets, exhibitions etc. in India. The foreign delegates/buyers/ journalists would be assisted in meeting their return air travel expenses in economy excursion class up to the entry point in India. This would, however, be subject to financing only the well planned participations wherein the potential of the incoming delegate(s)/buyer(s)/journalist(s) have been screened by the concerned EPC and Territorial Division. The following activities are eligible to be undertaken under Focus Area Programmes:

1.

(i) Participation in international Fairs/exhibitions organized by EPCs (ii)Sponsoring Buyer-Seller Meets /Trade Delegation abroad by EPCs

As applicable in non-focus area with a ceiling of Rs 10 lakhs

2.

3. 4.

Reverse Trade visits of prominent Foreign buyers/delegates/journalists to India for participation in BSM/exhibition (i) Return air fare travel expenses in economy excursion class up to the entry point in India( MoC amendment letter 2/1/2004-E&MDA dtd 12-04-2005 w.e.f 1-42005, MDA grant shall be considered for return air fare(in economy excursion class) and hotel charges with ceiling of Rs 90,000(for LAC) and Rs 60,000/-(for other focus areas) per buyer (ii) Venue charges (iii) All other organizing expenditure (iv) All other expenses relating to stay, per diem allowance, local travel of delegates invited from abroad are to be met by the EPC or by sharing between the organizers & delegates Translation facilities in foreign languages and vice versa Product catalog in CD ROM

(i) 100% (subject to a ceiling of Rs 90,000(LAC) and Rs 60,000(Other Focus areas) (ii)& (iii) As applicable in non focus areas with ceiling of Rs 10 lakhs

60% 60%

(vide MoC Amendment Letter 2/1/2004-E&MDA, dated 12-4-2005 wef 1-4-2005, when EPC conducts an event abroad in more than one country during the same tour, additional event cost shall be allowed @ Rs 10 lakhs per country subject to 60% reimbursement)

Participation/organization of export promotional activities shall be subject to the following conditions: (i) The exporters participating in EPC sponsored trade delegations and fairs/exhibitions/buyer cum seller meets etc. abroad shall receive the MDA assistance on reimbursement basis on scales. (ii) One official of the EPC (subject to an upper ceiling of two visits in one financial year by individual official) can accompany EPC sponsored trade delegation/organized participation in trade fair/exhibition followed by BSM. This would, however, be subject to the condition that a minimum of five exporters participates in such events. In rare circumstances, the Joint Secretary of the concerned commodity/territorial division can relax the condition of a maximum of two visits by an individual official in a financial year.

(iii) Per diem allowance, hotel charges etc. would not be permissible from MDA funds to exporters/elected office bearers of the EPCs etc. traveling abroad. (iv) MDA assistance shall be limited to 60% of the total approved cost and the remaining has to be met by the EPCs from the contributions from participants, members, trade etc. (v) For Reverse Trade Visits the air-fare by economy excursion class for invited delegates would be subject to the upper ceilings of Rs.90,000/- for LAC region and Rs.60,000/- for CIS, Africa and ASEAN+2 regions. 6.

(i) No distinction need be made between CVD and AD investigations since both types of cases have intended to involve various export incentives granted by the Government e.g. income tax concessions, export credit concessions, advance licensing, drawback etc. (iii)No MDA grant will be given for fighting such cases to exporters directly and assistance would be given only to the Export Promotion Councils to the maximum extent of 50% of the expenditure involved with upper ceilings of Rs. 10.00 lakh in each case and that too only for fighting generic cases having wider ramifications. The remaining expenses would be met by the respective councils/trade. (iv)To be eligible for assistance, councils should appoint lawyers for fighting such cases through the concerned Embassy or High Commission of India in consultation with the Commodity division andE&MDA Division in the Department of Commerce. (iv) There should be prima facie evidence available on the chances of success of the Anti-dumping cases. As dumping is defined as the difference between the price at which the item is sold in India and the price at which it is exported, at the ex-factory level, prima facie information should be available with all the Councils about the difference and the possible reasons for the differences. (v) The Councils are also required to furnish information intimating: (a) Quantity, value and weighted average unit price (f.o.b.) of the product exported globally and to the country alleging dumping during last 3 years. (b) Quantity and value, weighted average unit price (excluding excise duty) of the product/equivalent product sold in the

domestic market during the last 3 years. (c) Ex-factory price of the product cleared for home consumption. (d) Expenses incurred on exports between the factory gate and till put on f.o.b. (e) Subsidy for export product, if any. (vi)The Committee consisting of Additional Secretary & Financial Adviser (Chairman), Jt. Secretary, MDA, Jt. Secretary of concerned Commodity division, Jt. DGFT, (Anti Dumping) as members and Director, MDA as Member Secretary would decide the extent of financial assistance in each case which would be provided from MDA. 7. (a) Approved organization/trade body means an organization, institution or association engaged in development and promotion of exports and approved by the E&MDA Division in the Department of commerce for this purpose. These Organizations can organize programme/activity for specific purpose of development and promotion of exports of Indian products and commodities with the prior approval of the Government (E&MDA Division in the Department of Commerce) for its members. These are of following two types: (i) Approved organizations who can sponsor MDA proposals of its member exporters:List of the approved organizations is given in Annexure-II. No MDA grant on annual basis would be given to these organizations for their export promotion activities. However, organizations can sponsor requests of their member exporters for participation in fairs/exhibitions/BSMs/Trade delegations led by these organizations for MDA assistance. (ii)Other approved trade bodies: List of organizations approved under this heading is at Annexure-III. These organizations cannot sponsor proposals of their member exporters for MDA assistance. However, with the prior approval of the E&MDA Division of the Department of Commerce, their proposals for organizing non-recurring specific promotional activity for export growth of Indian Products and Commodities abroad can be considered for MDA assistance.

Any other organization, institution or association desirous of getting itself registered as an approved organization, may apply to the Department of Commerce (E&MDA Division) with full particulars in the prescribed proforma (Annexure-IV).

Residual essential activities or proposals connected with the export effort, which qualify for the grant-in-aid but not covered by this Code will also be considered on merits for assisting from the Marketing Development Assistance scheme

: Intimation application duly completed and signed in the prescribed format (Annexure-V) shall be submitted by the exporter to the concerned EPC etc. giving clear 14 days advance notice. (ii) Concerned Organization (FIEO, EPC etc.) on receipt of application shall examine and issue approval letter to the exporter preferable within 5 working days of the receipt of the application form in the prescribed format (Annexure-VI). (iii) Claim along with the declaration duly completed shall be submitted by the exporter to the concerned Organization (FIEO), EPC etc.) in the prescribed format (Annexure-VII) along with under mentioned papers immediately on return to India after completion of the activity but positively within 3 months of their return to India: (iv) Details of activity undertaken earlier with MDA assistance to the same country/countries. (v) Self-certified copy of the export house/trading house certificate, if applicable. (vi) Self-certified copy of SSI registration certificate issued by the concerned Directorate of Industries, if applicable. (vii) Legible photocopy of passport highlighting the entries about departure from and arrival into India and also the countries visited. In case, passport does not have arrival/departure dates regarding visits to various countries, some documentary evidence such as Hotel Bills, Boarding pass, lodging pass etc. be submitted. (viii)Original air ticket/jacket used during the journey. If Original air Ticket/jacket is lost, a legible photocopy of the same along with a certificate from the concerned airline indicating following may be sent: (i)

a) Name of the traveler b) Ticket number c) Flight No. d) Date of departure from India e) Sectors/countries visited f) Class in which traveled g) Economy excursion class fare for sectors/countries visited. (ix) Self certified f.o.b. value export figures during the last three financial years, year wise. (x) Brief report about the activity participated and achievements made. (xi) Claim form received after 3 months of return to India or wherein the deficiencies in the claim as intimated by the concerned EPC, EIEO etc., are not fully completed within 30 days of the date of directions given in this regard by the concerned EPC, FIEO etc., would not be entertained and rejected -o-o-o-o-o-o-o

The government has introduced a few notifications on 31 March 2011 under Service tax and Cenvat credit laws in order to iron out some of the pain points faced by the industry. Here we summarized the key amendments introduced vide these notifications with effect from 1 April 2011. Point of taxation

The Point of Taxation Rules effective from 1 April 2011 determining point of tax will not apply whereProvision of service is complete prior to 1 April 2011; Or Invoice is issued prior to 1 April 2011 An option has been provided to the tax payer to continue to pay service tax on receipt of payment where - provision of service is complete on or before 30 June 2011; or invoice is issued on or before 30 June 2011

The general rule to determine point of taxation shall be earlier of issuance of invoice; or receipt of payment, including advance; or the date of completion of service, where invoice is not issued within 14 days of completion of service. The rule determining point of tax in case of change of rate of tax has been amended to mean change in effective rate of tax. It is further provided that such change shall also include a change in taxable value under a notification.

In case of continuous supply of service the point of tax shall be earlier of issuance of invoice; or receipt of payment, including advance; or the date of completion of service, where invoice is not issued within 14 days of completion of service; or Where under a contract, provision of service is determined periodically on the completion of an event, the date of completion of such event shall be deemed to be the date of completion of service. Following services are notified as continuous supply of service: Telecommunication service Commercial or industrial construction service Construction of residential construction service Internet Telecommunication service Works contract service The rule determining point of tax in case of continuous supply of service will have overriding effect over the general rule determining point of tax, the rule determining point of tax in case of change of rate and the rule determining point of tax for copyright service.

For following services or persons, the point of tax shall continue to be on receipt of payment for the service Services qualifying export under Export of Services Rules, 2005 and payment for which is received within the period specified by RBI? The person requiring to pay service tax under revere charge and payment for which is made within six months of the invoice date

Individuals, proprietary firms or partnership firms providing taxable services of Architect, Interior Decorator, Chartered Accountant, Cost Accountant, Company Secretary, Scientific or technical consulting and Legal services. This rule will have overriding effect over the other rules determining point of tax.

For services received from associated enterprise located outside India, the point of tax shall be earlier of payment date; or date of credit in the books of account of service recipient This rule will have overriding effect over the other rules determining point of tax.

Cenvat credit will be allowed on receipt of invoice as against on payment of value of taxable service along with service tax. It is also provided that if payment of value of input service and service tax thereon remains unpaid for 3 months from the invoice date, the amount of credit initially availed needs to be paid. The amount so paid will be subsequently available as credit upon payment of value of input service and service tax thereon. Where service tax is payable under reverse charge, the Cenvat credit will be allowed only upon payment of value of input service and service tax thereon. As a transition provision, for invoices issued prior to 1 April 2011, Cenvat credit will continue to be available upon payment of value of input service and service tax thereon.

It has been provided that the value in case of trading shall be higher of the following: difference between the sale price and the cost of goods sold (COGS); or 10% of COGS COGS have to be determined as per generally accepted accounting principles without including the expenses incurred towards its purchases. Cenvat credit on input service will be denied where service tax on such input service became recoverable from the input service provider on account of fraud or collusion or willful mis-statement or suppression of facts or contravention of any of the provisions with intention to evade such tax.

It has been provided that the value of taxable service in the case of forex trading shall be the difference between the buying / selling rate and the RBI reference rate at a given time. Earlier this provision applied the rate for the given day. This change is to provide basis of valuation for the transactions taking place on a given day prior to issuance of the reference rate by the RBI for that day. However, there is no such amendment introduced where neither of the currencies exchanged (bought or sold) is Indian rupee.

The rule requiring issue of invoice now provides that an invoice should be issued within 14 days of completion of service. In the case of continuous supply of service the invoice should be issued within 14 days of completion of event specified in the contract requiring payment to be made by the service receiver. The facility of self adjustment of any excess service tax paid due to non-provision of service is now also available to cases where invoice amount is renegotiated due to deficient provision of service or any terms contained in a contract. The option to pay service tax by a foreign exchange broker including an authorized dealer or money changer has now been amended from 0.1% of the gross amount of currency exchanged to the following: 0.1 per cent of the gross amount of currency exchanged for an amount up to rupees 100,000, subject to the minimum amount of rupees 25; and Rupees 100 and 0.05 per cent of the gross amount of currency exchanged for an amount of rupees exceeding rupees 100,000 and up to rupees 10, 00,000; and Rupees 550 and 0.01 per cent of the gross amount of currency exchanged for an amount of rupees exceeding 10,00,000, subject to maximum amount of rupees 5000: The option under this scheme once exercised shall be applicable for the entire financial year. The exemption in relation to inter-bank forex trading earlier available only for the transactions between two scheduled banks is now applicable to the taxable service provided to any bank, including a bank located outside India or money changer, by any other bank or money changer

-o-o-o-o-o-

[File No.01/91/180/179/AM09/Export Cell)

In exercise of powers conferred under paragraph 2.4 of the Foreign Trade Policy, 2009-14, the Director General of Foreign Trade hereby makes, with immediate effect, the following amendments in the Handbook of Procedures, Vol. 1: 2. At the end of sub-para of Para 2.49 in the Handbook of Procedures Vol. I/200914, relating to Free Sale and Commerce Certificate the following shall be added: RAs may also issue, on application, Free Sale and Commerce Certificate for export of any other item which is not restricted or prohibited for export. Validity of such certificate shall be two year from date of issue unless otherwise specified. An application for grant of Free Sale and Commerce Certificate for these items may be made to RA concerned as per format in Annexure 39-A of HBP Vol. I along with Annexure A therein. RA shall issue Free Sale and Commerce Certificate as per Annexure B of Appendix 39-A 3. Appendix 39A shall be added to HBP Vol.I, as per specimen annexed with this Public Notice. 4. This issues in public interest.

(R.S. GUJRAL) Director General of Foreign Trade & Ex-Officio Special Secretary to the Govt. of India

1. Name of the firm / Company

2. Address of Registered Office (i) Tel No (ii) Fax No (iii) email ID

: : : : :

3. Importer Exporter Code No (i) Code No. (ii) Name & Address of issuing authority
4. Registration cum-Membership Certificate (RCMC ) details (i) Name of the Council (ii) Registration No and date (iii) Validity

5. Brief Description of exports (i) Details of foreign buyer with complete address, e-mail ID etc. (ii) Brief description of items to be exported under the certificate

6. Details of items for which Free Sale & Commerce Certificate is sought to be obtained (Annexure A to be attached duly self-certified) 7. I hereby declare that items listed in Annexure A,

(i) are not prohibited or restricted for export under Schedule 2 of ITC (HS) and are free for export; (ii) the export of the items does not violate any of the provisions of the laws/Acts established by any of the Ministries/Departments/Offices of the Central/State Governments; and We further undertake to abide by any of the provisions under FTP, FT(D&R) Act, 1992 or any other law established by any of the Ministries/Departments/Offices of the Central/State Governments relating to export of these items.

1. I / We hereby declare that the particulars and the statements made in this application are true and correct to the best of my / our knowledge and belief and nothing has been concealed or held there from. 2. I / We fully understand that any information furnished in the application if found incorrect or false will render me / us liable for any penal action or other consequences as may be prescribed in law or otherwise warranted. 3. I / We undertake to abide by the provisions of the FT (D & R) Act, 1992, the Rules and Orders framed there under, FTP, HBP v 1 and HBP v2 and ITC (HS). 4. a. I / We hereby certify that the firm / company for whom the application has been made has not been penalized under Customs Act, Excise Act, FT (D & R) Act 1992 and FERA / FEMA. b. I / We hereby certify that none of the Proprietor / Partner(s) / Director(s) / Karta / Trustee of firm / company, as the case may be, is / are a Proprietor / Partner(s) / Director(s) / Karta / Trustee in any other firm / Company which has come to adverse notice of DGFT. c. I / We hereby certify that the Proprietor / Partner(s) / Director(s) / Karta / Trustee, as the case may be, of the firm/company is / are not associated as Proprietor / Partner(s) / Director(s) / Karta / Trustee in any other firm / company which is in the caution list of RBI. d. I / We hereby certify that neither the Registered Office / Head Office of the firm/company nor any of its Branch Office(s) / Unit(s) / Division(s) has been declared a defaulter and has otherwise been made ineligible for undertaking import / export under any of the provisions of the Policy. 5. I / We hereby declare that I / We have not obtained nor applied for such benefits (including issuance of an Importer Exporter Code Number) in the name of our Registered / Head Office or any of our Branch(s) / Unit(s) / Division(s) to any other Regional Authority. 6. I / We hereby declare that I/we have perused the list of SCOMET items as contained in the Appendix 3 to the Schedule 2 of the ITC (HS) and that the item(s) exported / proposed to be exported does not fall within this list and

that I / We agree to abide by the provisions of FTP for export of SCOMET items contained in the FTP, Schedule 2 of ITC (HS) and the HBP v1, irrespective of the scheme under which the item is exported / proposed to be exported. 7. I / We solemnly declare that I / We have applied for / obtained a RCMC to the EPC which pertains to our main line of business. In case we have applied to any other council, the application has been made within the purview of the provisions of Para 2.67 and Para 2.67.1 of the HBP v1. 8. I hereby certify that I am authorized to verify and sign this declaration as per Paragraph 9.9 of the Policy.

Signature of the Applicant Name Designation Official Address Telephone Residential Address Email Address

Note: This form with Annexure-A may be submitted without other parts of the Aayat Niryat Form. -------------------------------------------------------------------------------------------------------------------

Annexure A

S. No.

Name of Product

ITC (HS) Code

Manufacturers / Exporters name and address

Is the product licensed under the provisions of the laws / Acts established by any of the Ministries / Departments / Offices of the Central / State Governments for manufacture and sale,

Description of the product including use (attach literature, if required.)

and if so please specify

Government of India Ministry of Commerce & Industry Department of Commerce Directorate General of Foreign Trade

The items as per Annexure (Total items) manufactured by M/s. (Name of the firm & full address) are freely sold in India and are freely exportable. This certificate is valid for a period of two year from the date of issue. Encl: As above. Place: Date:

[Note: This certificate is based on declaration by the above firm that items of export shown in Annexure are neither restricted nor prohibited for export.]

Notification No. 24/2011 Customs (N.T.), 29th March, 2011 [F.No.468/5/2011-Cus.V]

S.O. (E). In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.14/2011-CUSTOMS (N.T.), dated the 24thFebruary, 2011 number S.O. 430 (E), dated the 24th February, 2011, except as respects things done or omitted to be done before such supersession, the Central Board of Excise and Customs hereby determines that the rate of exchange of conversion of each of the foreign currency specified in column (2) of each of Schedule I and Schedule II annexed hereto into Indian currency or shall, be the rate mentioned against it in the corresponding entry in column (3) thereof, for the purpose of the said section, relating to imported and export goods.

S.No.

Foreign Currency

Rate of exchange of one unit of foreign currency equivalent to Indian rupees (3) (a) (For Imported Goods) (b) (For Export Goods)

(1)

(2)

1. 2. 3. 4. 5. 6. 7. 8.

Australian Dollar Canadian Dollar Danish Kroner EURO Hong Kong Dollar Norwegian Kroner Pound Sterling Swedish Kroner

46.55 46.25 8.60 63.70 5.80 8.10 72.65 7.10

45.30 44.95 8.30 62.00 5.65 7.80 70.75 6.85

9. 10. 11.

Swiss Franc Singapore Dollar US Dollar

49.25 35.95 45.20

47.85 34.95 44.30

S.No.

Foreign Currency

Rate of exchange of 100 units of foreign currency equivalent to Indian rupees (3) (a) (For Imported Goods) (b) (For Export Goods)

(1)

(2)

1.

Japanese Yen

55.55

53.90

Sd/ (Abhinav Gupta) Under Secretary to the Govt. of India Tele: 2309 4610