kyg 2_royal wings 1

8/6/2019 Kyg 2_royal Wings 1

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KNOW YOUR GLOBE 2

Product: 1) Textile woollen Yarns2) Dairy Products

Country: Finland


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PRESENTEDBY

ROYAL WINGS1


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Export Procedures

Procedures have to be followed by (a) person-in-charge of conveyance and (b) the exporter. The

procedures

are similar to procedures for import, of course, in reverse direction.

NO STOPPAGE OF EXPORT CONSIGNMENT - Exports are vital for our economy. Any stoppage in

export

consignment means loss of export orders to the exporter and loss of foreign exchange to the country. Henceit

has been provided that movement of export consignment will not be interrupted and no export consignment

shall be withheld for any reason whatsoever. In case of any doubt, customs authorities may ask for an

undertaking that the export is on sole responsibility of the exporter. [Highlights of EXIM policy 1997-2002

as

amended on 13.4.1998].

Procedures by person in charge of conveyance Any new airline, shipping line, steamer agent should be

registered in Customs Systems for electronic processing of shipping bills etc.

The person in charge of conveyance has to follow prescribed procedures.

Entry Outward - The vessel should be granted Entry Outward. Loading can start only after entry outward

is

granted. (section 39 of Customs Act). Steamer Agents can file application for entry outwards 14 days in

advance so that intending exporters can start submitting Shipping Bills. This ensures that formalities are


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completed as quickly as possible and loading in ship starts quickly.

LOADING WITH PERMISSION - Export goods can be loaded only after Shipping Bill or Bill of Export

duly

passed by Customs Officer is handed over by Exporter to the person-in-charge of conveyance. In case of

baggage and mail bags, shipping bill is not necessary, but permission of Customs Officer is required

(section

40).

Export Manifest - As per section 41, an Export Manifest/Export Report in prescribed form should be

submitted

before departure. [The report is popularly called as Export General Manifest - EGM]. The details required

are

similar to import manifest. Such manifest/report can be amended or supplemented with permission, if therewas

no fraudulent intention. Such report should be declared as true by the person-in-charge signing the export

manifest. This report is not required if the conveyance is carrying only luggage of occupants.

Procedures to be followed by Exporter Export procedures have been summarized in Chapter 3 Part II o

CBE&Cs Customs Manual, 2001.

Every exporter should take following initial steps -

Obtain BIN (Business Identification Number) from DGFT. It is a PAN based number

Open current account with designated bank for credit of duty drawback claims


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Register licenses / advance license / DEPB etc. at the customs station, if exports are under Export

Promotion Schemes

Exporter has to submit shipping bill for export by sea or air and bill of export for export by road. Goods

have

to be assessed for duty, even if no duty is payable for most of exports, as Nil Duty assessment is also an

assessment.

Shipping Bill to be submitted by Exporter - Shipping Bill and Bill of Export Regulations prescribe form

of

shipping bills. It should be submitted in quadruplicate. If drawback claim is to be made, one additional copy

should be submitted. There are five forms : (a) Shipping Bill for export of goods under claim for duty

drawback

- these should be in Green colour (b) Shipping Bill for export of dutiable goods - this should be yellow

colour

(c) shipping bill for export of duty free goods - it should be white colour (d) shipping bill for export of duty

free

goods ex-bond - i.e. from bonded store room - it should be pink colour (e) Shipping Bill for export under

DEPB

scheme - Blue colour.

The shipping bill form requires details like name of exporter, consignee, Invoice Number, details of

packing,

description of goods, quantity, FOB Value etc. Appropriate form of shipping bill should be used.

Relevant documents i.e. copies of packing list, invoices, export contract, letter of credit etc. are also to be

submitted. In case of excisable goods, from ARE-1 prepared at the time of clearance from factory should


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also be

submitted.

Customs authorities give serial number (called 'Thoka Number') to shipping bill, when it is presented.

Excise formalities at the time of Export - If the goods are cleared by manufacturer for export, the goods

are

accompanied by ARE-1 (earlier AR-4). This form should be submitted to customs authorities. The Customs

Officer certifies that the goods under this form have indeed been exported. This form has then to be

submitted to

Maritime Commissioner for obtaining proof of export. The bond executed by Manufacturer-exporter with

excise authorities is released only when proof of export is accepted by Maritime Commissioner or

Assistant

Commissioner, where bond was executed.

Duty drawback formalities - If the exporter intends to claim duty drawback on his exports, he has to

follow

prescribed procedures and submit necessary papers. The procedures are discussed in the chapter on Export

Incentives'. He has to make endorsement of shipping bill that claim for duty drawback is being made. If he

fails

to do so due to genuine reasons, Commissioner of Customs can grant exemption from this provision.

[proviso to

rule 12(1)(a) of Duty Drawback Rules].

G R / SDF / SOFTEX Form under FEMA - Reserve Bank of India has prescribed GR / SDF form under

FEMA.

G R stands for Guaranteed Receipt form, while SDF stands for 'Statutory Declaration Form). SDF form

is


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to be used where shipping bills are processed electronically in customs house, while GR form is used when

shipping bills are processed manually in customs house.

Other documents required for export - Exporter also has to prepare other documents like (a) Four copies

of

Commercial Invoice (b) Four copies of Packing List (c) Certificate of Origin or pre-shipment inspection

where

required (d) Insurance policy. (e) Letter of Credit (f) Declaration of Value (g) Excise ARE-1/ARE-2 form a

applicable (h) GR / SDF form prescribed by RBI in duplicate (i) Letter showing BIN Number.

RCMC certificate from Export Promotion Council - Various Export Promotion Councils have been set

up to

promote and develop exports. (e.g. Engineering Export Promotion Council, Apparel Export Promotion

Council,

etc.) Exporter has to become member of the concerned Export Promotion Council and obtain RCMC -

Registration cum membership Certificate.

Check in customs Document submitted is processed by customs authorities, and following are checked -

Value and classification of goods under drawback schedule in case of drawback shipping bills

Export duty / cess if applicable

Advance License shipping bills are checked to ensure that description in invoice and final product specified

in Advance License matches. If necessary, samples may be drawn and assessment may be done after visual

inspection or testing

Exportability of goods under EXIM policy and other laws - Some exports are totally prohibited under

various


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Acts e.g. items restricted or prohibited under Foreign Trade (Regulation) Act; antiques; art treasures; Arms

narcotics etc. Some items like tea, coffee and coir products can be exported only against

authorisation/licence

under respective Acts.

Examination of goods before export - After shipping bill is passed by export department, the goods are

presented to shed appraiser (exports) in dock for examination. Goods will be examined by examiner. This

inspection is necessary (a) to ensure that prohibited goods are not exported (b) goods tally with description

and

invoice (c) duty drawback, where applicable, is correctly claimed.

Let Export Order by Customs Authorities - Customs Officer will verify the contents and after he is

satisfied

that goods are not prohibited for exports and that export duty, if applicable is paid, will permit clearance.

(section 51) by giving let ship or let export order.

GR-1, ARE-1, octroi papers, quota certification for export etc. are also signed. Exporters copy of shipping

Bill,

GR-1, ARE-1 etc. duly certified are handed over to exporter or CHA. Drawback claims papers are also

processed.

Processing under EDI system Under EDI system, declarations in prescribed form are to be filed through


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Service Centre of customs. After verification, shipping bill number is generated by the system, which is

endorsed on printed checklist generated for verification of data. Goods are inspected at docks on the basis o

printed check list. All documents are submitted to Customs Officer along with checklist. If goods and

documents are found in order, let export order is issued. Then two copies of Shipping Bill are generated

one

customs and other exporters copy. Exporters copy is generated only after EGM (Export General Manifest

is

submitted by shipping agent. These are signed by CHA and customs officer and then by Appraiser. SDF,

ARE-

1, octroi papers, quota certification for export etc. are also signed. Exporters copy of Shipping Bill, SDF,

ARE-

1 etc. duly signed are handed over to exporter

Conveyance to leave on written order - The vessel or aircraft which has brought imported goods or which

carry

export goods cannot leave that customs station unless a written order is given by Customs Officer. Such

order is

given only after (a) export manifest is submitted (b) shipping bills or bills of export, bills of transhipmentetc.

are submitted (c) duties on stores consumed are paid or payment of the same is secured (d) no penalty is

leviable

(e) export duty, if applicable, is paid. - - Such permission is not required if the conveyance is carrying only

luggage of occupants.

Other Customs Procedures


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Besides the aforesaid procedures, various other procedures have been prescribed. These are mainly to be

followed by the person in charge of conveyance.

Boat Notes - If the vessel has to unload only a small cargo, it may not spend time in having berth in the

port. If

the small cargo is to be sent to shore, it may be loaded in a small boat and sent to shore. As per section 35,

such

small boat must be accompanied by a Boat Note. Boat Notes Regulations provide that such Boat Notes

will be

issued by Customs Officer. It will be maintained in duplicate and should be serially numbered. Boat Note

should be in prescribed form.

In case of export, if small export cargo is to be loaded in ship through small boat, no Boat Note is required i

the

cargo is accompanied by the Shipping Bill, otherwise, Boat Note is required. Boat Note is also required

for

transhipment of cargo, i.e. transfer from one ship to another or for re-shipment.

Transit Goods - Section 53 provide that any goods imported in any conveyance will be allowed to remain

on

the conveyance and to be transited without payment of customs duty, to any place out of India or any

customs

station. However, all these goods must be mentioned in import manifest or import report submitted by

person in

charge of conveyance. Such goods should not be prohibited goods under section 11 of Customs Act. [The

conveyance may be vehicle, ship or aircraft]. After transit, the goods may go to another customs station.

On arrival at customs station, the goods will be liable to customs duty as if it is first importation in India. -


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section 55.

Transhipment of Goods

Goods imported in any customs station can be transhipped without payment of duty,

u/s 54 of Customs Act. Transhipment means transfer from one conveyance to another. [The conveyance

may be

vehicle, ship or aircraft]. Such transhipment may be to any major port or airport in India. The goods can be

transhipped to any other customs station in India if customs officer is satisfied that the goods are bonafide

intended for transhipment to any customs station. The facility is available at all customs ports and Inland

Container Depots (ICDs).

Goods to be transhipped must be specified in Import Manifest or Import report and a Bill of Transhipment

should be submitted to Customs Officer. In case of goods being transhipped under an international treaty or

bilateral agreement between Government of India and Government of a foreign country, a Declaration of

Transhipment shall be submitted instead of Bill of Transhipment. [section 54(1)]. [India has such bilateral

agreement with Nepal].

Such goods should not be prohibited goods under section 11 of Customs Act. The goods should be sealed

during transhipment by customs officer. A bond has to be executed for the purpose. After execution of

bond, a

certificate from customs officer has to be submitted within one month that goods have been properly


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transferred. [Goods Imported (Conditions of Transhipment) Regulations, 1995]. On arrival at customs

station,

they will be liable to customs duty as if it is first importation in India. - section 55.

TRANSIT AND TRANSHIP - Distinction between transit and transhipment is that in 'transit' goods

continue to

be on same vessel, while in transhipment, goods are transferred to another vessel / vehicle. Hence,

procedures

are also different.

Coastal goods - Coastal goods means goods transported from one port in India to another port in India, but

does

not include imported goods. Thus, coastal goods means goods taken by ship from one Indian port to

another. No

export or import is involved, but control is necessary to ensure that coastal goods are not diverted illegally

for

export.

LOADING OF COASTAL GOODS - The Consignor should submit bill of coastal goods to Customs

Officer

(section 93). Form of the bill has been prescribed. These will be loaded by master of vessel only after bill

of

coastal goods is passed (section 93). Master of Vessel will carry an Advice Book where entries will be

made

by Customs Officer. This Advice Book has to be presented for inspection of Customs Officers, if calledfor.

After loading, the vessel can leave only after obtaining written order from Customs Officer. As per

notification

No 15/98-NT dated 27.2.1998, exemption has been granted for delivery of 'Advice Book' at each port of

call.


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However, the 'Advice Book' will have to be submitted for inspection on board of vessel, when called for.

UNLOADING OF COASTAL GOODS - Unloading of coastal goods should be done only at Customs

Port or

coastal port appointed by CBEC under section 7 of Customs Act. On arrival, all bills relating to goods

which are

to be unloaded will be delivered to Customs Officer. Unloading can be done only after obtaining permission

from Customs Officer. Customs Officer can inspect goods and ask for questions and documents relating to

goods. Goods will be unloaded at approved place under supervision of Customs Officer.


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EXPORT PROCEDURES AND DOCUMENTATION

FOR TEXTILES AND APPAREL PRODUCTS

1. Consult with a Quota Allocation Officer at the Trade Board Ltd. as to the

products that have an available quota for exportation under the

US/Jamaica Bilateral Textile Agreement.

2. If there is an available quota for the product that you wish to export, or if

you are planning to export to a non-US market, then visit

or the JAMPRO offices and register to become an

exporter. The registration process usually takes three to five days.

3. Consult with the Bureau of Standards for information regarding proper

labelling requirements.

4. Purchase and complete Form JN2/JN3 for export to non-US and US

marketsrespectively, as well as the Certificate of Jamaican

Origin/Certificate of Exemption (where applicable), all of which are

available from the Trade Board Ltd. Furthermore, for 807 products a

commitment letter is required.

5. Purchase and complete Export Entry Form C82, which is available from

the Trade Board or the Jamaica Exporters Association. Complete all

relevant commercial and export forms.

6. You may consult with the Trade Boards Certification Unit to determine

whether the product you wish to export qualifies for preferential treatment

in any overseas market. If so, purchase the relevant form and obtain the

required Certificate of Origin.

7. Check shipping/air cargo rates and schedules as well as provisions for


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insurance coverage. Complete Tally Sheet (by air) or Wharf/Dock Receipt

and Cargo Integrity Form (by sea).


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Contact JAMPRO

to registeras an

exporter

EXPORT PROCESS FOR TEXTILES

AND APPAREL

SUMMARY FLOW CHART

Contact the Trade Boards

Quota Allocation Officer to find

out about available quotas to

the US, if you wish to export to

that market

Contact Trade Board for, and

to non-US and US markets

respectively. For 807 products

submit a commitment letter

Contact Trade Board

for export forms and

certificate of origin

(where applicable)

EXPORT


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complete, form JN2/JN3 for export

Opportunities And Challenges in the Indian Dairy Industry

Dairy industry is of crucial importance to India. The country is the worlds largest milk producer, accounting for more

than 13% of worlds total milk production. It is the worlds largest consumer of dairyproducts, consuming almost 100% of its

own milkproduction. Dairy products are a major source ofcheap and nutritious food to millions of people in India and the only

acceptable source of animal protein for large vegetarian segment of Indian population, particularly among the landless,

small and marginal farmers and women. Dairying has been considered as one of the activities aimed at alleviating the poverty

and unemployment especially in the rural areas in the rain-fed and drought-prone regions. In India, about three-fourth of the

population live in rural areas and about 38% of them are poor. In 1986-87, about 73% of rural households own livestock

Small and marginal farmers account for three-quarters of these households owning livestock, raising 56% of thebovine

and 66% of the sheep population. According to the National Sample Survey of 1993-94, livestocksector produces regular employmen

to about 9.8million persons in principal status and 8.6 million in subsidiary status, which constitute about 5% of the total work force

The progress in this sector will result in a more balanced development of the rural

economy.


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Policy

The total amount of milk produced has more than tripled from 23 million tonnes back in 1973 to 74.70 million tonnes 26 years later

in 1998. Thetremendous rise in milk production is primarily the fallout of the dairy farming policy reflected in Operation Floo

Following the success of dairy farming policy, the Government has set up a dairy processing policy, reflected in the Milk and Milk

Products Order. In addition, the Government uses a variety of import restrictions to protect itsdomestic dairy market.Milk

Processin The milk processing industry is small compared to the huge amount of milk produced every year. Only10% of

all the milk is delivered to some 400 dairyplants. A specific Indian phenomenon is theunorganised sector of milkmen,

vendors who collectthe milk from local producers and sell the milk inboth, urban and non-urban areas, which handles

around 65-70% of the national milk production.In the organised dairy industry, the cooperative milkprocessors have a

60% market share. Thecooperative dairies process 90% of the collected milkas liquid milk whereas the private dairies

processand sell only 20% of the milk collected as liquid milkand 80% for other dairy products with a focus on value

products,

Domestic Consumption

The huge volume of milk produced in India is consumed almost entirely by the Indian population itself, in a 50- 50

division between urban and non- urban areas. Increasingly, important consumers of the dairy industry are fast-food

chains and food and non-food industries using dairy ingredients in a wide range of products.

Trade

In spite of having largest milk production, India is a very minor player in the world market. India was primarily an import

dependent country till early seventies. Most of the demand-supply gaps of liquid milk requirements for urban consumers

were met by importing anhydrous milk fat / butter and dry milk powders. But with the onset of Operation Flood

Programme, the scenario dramatically changed and

Key Areas of Concern in the Dairy Industry

(i) Competitiveness, cost of production, productivity of animals etc.

The demand for quality dairy products is rising and production is also increasing in many developing countries. The countries

which are expected to benefit most from any increase in world demand for dairyproducts are those which have low cost of

production.Therefore, in order to increase the competitivenessof Indian dairy industry, efforts should be made toreduc

cost of production. Increasing productivity ofanimals, better health care and breeding facilities andmanagement of dair

animals can reduce the cost ofmilk production. The Government and dairy industrycan play a vital role in this direction


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(ii) Production, processing and marketinginfrastructure

If India has to emerge as an exporting country, it isimperative that we should develop properproduction, processing and

marketing infrastructure,which is capable of meeting international qualityrequirements. A comprehensive strategy for

producing quality and safe dairy products should beformulated with suitable legal backup.

(iii) Focus on buffalo milk based specialityDairy industry in India is also unique with regard toavailability of large

proportion of buffalo milk. Thus,India can focus on buffalo milk based specialityproducts, like Mozzarella cheese,

tailored to meetthe needs of the target consumers.

(iv) Import of value-added products and export oflower value productsWith the trade liberalisation, despite the attempt

ofIndian companies to develop their product range, itcould well be that in the future, more value-addedproducts will b

imported and lower value productswill be exported. The industry has to preparethemselves to meet the challenges.

Export Logistics

India is being touted as the land of opportunity for logistics service providers all over the world.

The Indian logistics market represents $ 50billion and is growing at a rate of 7 percent annually.

Environment Scan

Export Documentation

The following documents are normally used in exports: -

1. E-Form

2. Shipping Bill

3. B/L or AWB

4. Commercial Invoice

5. Packing List

6. Certificate Country of origin6(a) GSP

(Through authorised Commercial Bank).

(Through authorised Clearing agents).(Through Clearing agents)

(Through Chamber) or

(Through EPB)

7. Textile quota Export licence/visa document required for textile items under quota

restraint8. Pre-shipment certificate through EPB for certain textile item s for exports to

management textile item.

9. Export contract registration details


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POST SHIPMENT DOCUMENTS

1. Textile quota Export licence/visa document required for textile items under quota

restraint 4th copy of shipping (through customs) bill to be used for rebates onbank/sales tax refund/textile quota.

2. BCA (Bank Credit Advice) to be received from commercial banks after foreign exchange

is received. The BCA is considered proof for the purpose of rebates, refinance scheme

etc.

HOW TO CLAIM DUTY DRAWBACKS

Duty Drawback is the most commonly availed incentive by exporters.It is the amount

reimbursed by the government to exporters as compensation for Customs Duty collected at

the time of import. For the purpose, CBR sets aside a certain percentage of customs duty

collected on imported raw material for incentivitising export production. The following

documents must be in order when Exporter files the claim for export rebate and submitsthe file to the customs rebate section

1. Bank Credit Advice ( B.C.A )2. Bill of Lading (First Original).3. Railway Receipt (Attested by the Railways).

4. Customs Signed Invoice with Two Photocopies.5. Packing List.6. Exchange Rate Certificate

7. Copy of Shipping Bill.8. Photo Copy of Form E.9. Laboratory Test Report. (if required)

10. Photocopy of SRO. (relevant to exporters product)11. Copy of Cross Border Certificate (In case of export through land route).


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12.Sales Tax Return of clearing agent of previous month (if claim launched throughclearing agent)

Export Regulations

SELECTION OF A PRODUCTIf you want to enter export trade, the first thing you have to do is to decide about theproduct, which you intend to trade. You should have intimate knowledge about the

product and sources of supply. If you have varied sources of supply, you will have no

problem in procurement and shipment. But if you produce the product yourself at effective

cost and exercise quality control, then you can become a successful exporter within

shortest possible time. You can also analyse which products are exported to whichcountry. This information is available in the IAC of EPB.

OPENING OF AN OFFICE

After selection of product, you may open an office, give it a name, print letterheads, install

phone and fix a signboard on your business premises.

REGISTRATION FOR EXPORT

Previously it was mandatory to register your firm as an exporter for-five years from the

nearest office of the EPB against payment of nominal fee.

However registration procedures for both imports and exports have been abolished and now

registration is

not required for either export or import.

SELECTION OF MARKET

The exporter cannot go to every country in the world to persuade people to buy his

product.Even the largest international firms do not trade with the whole world and not everycountry can or will buy what a particular exporter may sell to them. In view of scarce

resources and shortage of experienced marketing personnel, the exporters should be

selective and concentrate on markets, which could yield the best results. For this one has

to examine

i. The economic position of the country

ii. Size of the Market and whether it is expanding or shrinking

iii. Market growth in a given product.

iv. Unit price of the product. Whether it is more or less than other countries

v. Import regime in the importing country.

vi. Location of the market etc

QUOTING A PRICEIt is easy to quote price at home. For this one has just to calculate cost of production with

packing and transportation charges and add profit. But in case of export, quoting of price

means many things. For this one has to examine several things including the following: -

i. What price to charge to remain competitive abroad?


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aid up to that point and the rest of the freight is paid by the buyer. Terms ofdelivery are not only important for quoting price but it also makes clear as to who is

responsible for the goods if anything goes wrong. The most frequently used terms ofdelivery are as under: -

FINANCING FOR EXPORTThe exporter should accept order, which he can fulfil easily. He should have thenecessaryfinances or access to finances for effecting shipment and the capacity to wait till the sale

proceeds are received. In this connection, term of payment plays an important role, as itshould be timed to keep you solvent at the time of need. For export pre-shipment and

post-shipment credits are available from the Govt. on concessionaire rate. The exporter

can make use of it.

PACKINGPacking should be sea, air and roadworthy. The container should be in a position to carry

contents to the destination in perfect condition. For reduction in cost most economical

packing material be used. Pakistan Packing Institute can help you.

TRANSPORTLight and costly items are normally sent by air whereas as heavy items are shipped bysea.

In each case the most economical mode should be used to reduce cost.

INSURANCEInsurance is necessary to recover cost in case of loss. But where the exporters are sure

that the chances of loss are minimum they do not insure consignment. In case the buyerinsists on Insurance then it must be done.

.

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