Steps for the Clearance of Exportation Goods

ENTRY OF GOODS FOR EXPORTATION [SECTION 50]

The exporter is, under section 50 of the Customs Act, required to present electronically on the customs automated system to a proper officer of customs a shipping bill in case of export by a vessel or by air and a bill of export, in case of export by a vehicle.

With this extent of automation, Customs expects that filing of shipping bill and payment of duty is on the automated system of customs department or CAS.

However, the Commissioner of Customs may, in cases where it is not feasible to make entry by presenting electronically, allow an entry to be presented in any other manner. Hence, manual submission of shipping bill/bill of export is allowable in cases where electronic submission is not feasible.

The form of the shipping bill is prescribed under the Shipping Bill and Bill of Export (Forms) Regulations, 2017. Normally a shipping bill is permitted to be filed only after an entry outward has been granted for the particular vessel or aircraft by which the goods are to be exported.

However, under special circumstances the Principal Commissioner/Commissioner of Customs may permit advance shipping bill to be filed. The exporter of any goods, while presenting a shipping bill or bill of export, shall make and subscribe to a declaration as to the truth of its contents.

CLEARANCE OF GOODS FOR EXPORTATION [SECTION 51]

After the shipping bill is filed, they are presented for the customs appraisal. The officer of customs checks that the goods are not prohibited for export and whether they are liable to any export duty. Physical check is carried out in terms of prevailing instructions.

After the customs officer is satisfied that the goods are not prohibited,and the exporter has paid the duty and other charges payable in respect of same, he makes the order for shipment on the duplicate copy of the shipping bill. This is known as “Let Export” order.

However, Central Government may permit certain class of exporters to make deferred payment of said duty or any charges in such manner as may be provided by rules, in which case ‘let export’ can be ordered before duty is paid.

Further, in case of deferred payment of duty, where the exporter fails to pay the export duty, either in full or in part, by such due date as may be specified by rules, he will have to pay interest on said duty not paid or short-paid till the date of its payment. The Central Government will notify the rate of interest within a range of 5% p.a. to 36% p.a.