Article & Research by Our Indian Correspondent.

The following are guidelines which refer to the customs formalities for your international shipments.

Courier-On-Board Exports :

The following are the items allowed to be sent as a C-O-B export shipment:

1. Documents

2. Free Gifts - up to a value of Indian Rs 25,000

3. Samples - up to a value of Indian Rs10,000 (where no Foreign  Exchange Remittance is involved )

4. Commercial Shipments (with Foreign Exchange Remittance involved) where the Shipper has obtained a GR1 Form Waiver from the Reserve Bank of India.

5. All shipments are forwarded under courier Shipping Bill for Exports, and are subject to    examination and appraisal by the relevant customs authorities. Customs are liable to detain shipments where the values are in question, and could permit export only upon receiving proof of values or, in the event the Shipper is unable to substantiate proof of value, release the shipment back to the Shipper after levy of a fine/penalty for value  misdeclaration.

6. The Bureau of Civil Aviation Security (BCAS) and Airline Security restrictions apply for Courier-On-Board Export shipments where Electronics, Bulk Drugs and Chemicals are restricted for carriage. Further, packages above 32 kgs are also restricted for carriage due to requirements at the destination.  This is because the carriage of shipments on the Courier-on-Board Export Mode are subject to customs paperwork requirements specified by the destination.

Freight Mode Exports :

The following items which cannot be sent via Courier-On-Board method can be shipped as Freight Mode Exports.  This could mean to include:

1. Gifts having a value in excess of Indian Rs 25,000

2. Samples having a value in excess of Indian Rs 10,000.

3. All shipments which are of a commercial nature and where foreig exchange remittance is involved.

4. Items being sent out of the country for Repair and Return

5. Any item falling under the classification of Dangerous Goods is not accepted for carriage on the International Priority service on the Federal Express network.

6. Carriage of shipments on the Freight Mode is subject to customs paperwork requirements specified by both Origin and Destination. This paperwork will have to be provided by the Shipper.

You will need the following documentary evidence for clearing the customs formalities under the Freight Mode Exports in India :

a. Shipper's Letter of Instruction which is basically a document the shipper is required to fill out on his Company Letterhead, along with his list of instructions to his courier service provider which could mean to include the documents handed over, type of Shipping Bill, documents to be forwarded to destination etc. Shipments received at the courier's gateway for customs clearance (usually, most reputed services use Bombay as the hub) without the Shipper's Letter of Instruction will face unnecessary delays.

b. One Time Registration with Customs EDI Systems is mandatory for shippers wishing to have their shipments cleared through the Mumbai Customs.  This procedure requires that the shipper register their IEC (Importer Exporter Code) Certificate with Indian Customs EDI Systems (where upto 5 branch addresses can be registered with the Customs).  This being a one-time requirement the shipper has to submit the following evidence:-

- the original IEC certificate (xerox copies and attested copies will not be accepted - it is usually returned at the end of one working day which is how long it takes for the process to be completed).

- the additional Annexure A which should be duly filled out, signed and stamped by the Shipper.

c. Bank's authorisation which means registration of the shipper's Bank Account Number with the Bank's Authorised Dealer Code Number (the Dealer Code is in turn is secured in the form of a letter on the Bank's printed letterhead which is to be signed and stamped by a competent authority in the shipper's bank). Unless this requirement is adhered to, a first time shipper will not be able to export out of Mumbai Airport.

d. The SDF Form (which falls under Appendix I) has replaced the erstwhile GR1 Form.  This new SDF Form requirement is made out in duplicate, duly filled out, signed and stamped, and has to be submitted by Shippers, for all shipments where Foreign Exchange Remittance is involved.

e. The Export Invoice which should be presented in and that the EI should be :

- stating the Freight and Insurance Amounts separately, if value is declared on the Export Invoice

- stating only the freight amount separately if the shipment is forwarded on a CIF {Cost Insurance Freight} basis,

- stating the value is declared on the Export Invoice and if the shipment is forwarded on a C&F {Cost and Freight} basis which is legally different

- stating the Importer Exporter Code, mentioning the AD {Authorised Dealer}Code Number of the Shipper's bank which is allocated to the bank to which the foreign exchange remittance would be forwarded by the Consignee. The AD Code number is a 14 digit hyphenated number which has to be absolutely accurate for even a mistake in code declaration would result in delays in customs clearance, as the document would be rejected by the Customs EDI Systems.

- should be printed, signed and stamped by the Shipper for hand-written EIs' are not accepted by the customs.  It is an essential and crucial document.

- having the Bank Account Number which is the Shipper's Account Number with his bank be mentioned clearly - it is this account to which the Foreign Exchange Remittance would be forwarded by the Consignee

- having the marks and numbers as stated on the packages of the shipment in order that the purposes of easy identification are served.

- stating clearly the nature and period of payment clearly.

f. The Shipping Bill for Exports, which is an essential Customs document could be of one of the following types:

- Free shipping bill is one where the shipper does not claim any export benefits.  For this kind of bill the shipper has to be registered with the Customs EDI Systems besides including the Commercial Invoice, Bank Authorised Dealer Code number and Bank Account number.

- Drawback Shipping Bill is for a shipment where the shipper claims Drawback as an export benefit. For availing himself of this benefit the shipper would have to compulsorily maintain an account with the State Bank of India branch in the Air Cargo Complex at the Mumbai Airport to which the drawback amount will get credited and where a minimum deposit of Rs. 5,000/- will have to be maintained by the shipper.

All the above except the Dutiable Shipping Bills for Exports are computerised documents though the 'Repair-and-Return' shipments, and those shipments which are sent by individuals, may be done manually.  Shipper who want to clear their shipments throught customs will have to duly fill out, sign and stamp with the company seal the following documents :

- Annexure B Form, Appendix III Form, Appendix 1V Form (applicable only in the case of certain items).

- DEPB Shipping Bill (Duty Entitlement Passbook Scheme) is a different kind of shipping bill of export in that the rate is fixed for the serial number of the item being exported.  For this the shipper will require an Annexure D Form (dully filled out and signed by the shipper and stamped with the company seal with careful attention being paid to the filling out of the Column 11 correctly),

a Purchase Bill or AR4 Form (for value verification),

a DEEC Shipping Bill (Duty Exemption Entitlement Certificate can be filed one time by filling out the Annexure For DEEC Declaration,

the Advance Licence in original,

the DEEC Book or copy of complete application along with the Joint Director Foreign Trade {JDFT} acknowledgement of receipt of registration,

the DEEC declaration stating it is an exempted material provided it is not already stated on the Invoice and finally,

the  Appendix III, if claiming Drawback with DEEC  for which as already discussed a State Bank of India account at the Air Cargo Complex branch, Mumbai, is essential).

After completing the DEEC Registration the shipper has to file DEEC Declaration Appendix II and a Declaration stating it is an exempted item (if this is not already stated on the Invoice).  The  Indian Customs at Mumbai Airport require a Chartered Engineer's Certificate for all shipments containing "Engineering Products" forwarded under DEEC Shipping Bills.

- Bond Shipping Bill is for those shippers who have the status of 100% EOU (Export Oriented Unit).  In such a case they must export their shipments under the Bond Shipping Bill.  For exporting under a Bond Shipping Bill they will need the Annexure C1 Form, duly filled out, signed and stamped with the seal of the Examination Officer of the Excise Department and countersigned by the Superintendent of the Excise Department.

- Dutiable Shipping Bill is the only manually handled shipping bill and has to be paid by the shipper.  It is for those shipments on which duty is levied for exports by the shipper on the export of items like coffee, mica, raw cotton, raw wool, tea, tobacco, and other items mentioned in the more exhaustive official list.

g. Repair and Return Items are those which a shipper has imported but found to be defective in whole or part and consequentially unacceptable.  To do this he has to have for customs clearance documents which comprise the Original Import Bill of Entry, Original customs-attested Import Invoice which should clearly state the serial/part number of the item imported and the certificate for Repair and Return from any Bank though it is worth noting that the customs may request a Chartered Engineer's Certificate for export.  The Export Shipping Bill will show the serial/part number of the item that will be used when the item is returned after repairs. Duty will be levied only on the "repair cost plus to-and-from freight/insurance".

h. Gifts & Samples by the Freight Mode may also be sent by those shippers wishing to send bonafide samples or free gifts by the freight mode for which facility they will have to obtain a Certificate from any bank that should state the nature of the shipment, and that no foreign exchange is involved in the transaction.

i. Export of Pharmaceuticals will require the additional documentation over and above those required in the earlier kinds of shipments and necessarily includes the Drug Licence Copy, the Form 20/21B, a sample of the contents for inspection by the Additional Drug

Controller and a Sample of the label affixed on the package.

j. Chemicals which fall under the Dangerous Goods definition are not acceptable for carriage.  But those which do not are accepted for carriage subjects to the availability of the certain additional documents are required which are over and above the normal customs paperwork. 

These include Toxic Substances Control Act (TSCA) Certificate, the Certificate from the Shipper certifying that the goods are not covered under the latest   edition of the IATA Dangerous Goods Regulations, and are non-hazardous, non-  toxic and non-corrosive, and can be carried on a passenger aircraft.

k. Garments/Fabrics with the USA as their destination require addtional documents for clearance by the customs at the USA and these include Quota Charge Statement (for all shipments to the USA of Garments, Fabric, Made-ups, a 'Single Country Declaration' has

to be submitted which must contain details of   whether the material is Knitted or Woven, whether the item is meant for Females, Males or Unisex, what kind of neck it has which could be crew, no neck opening or V-neck, the number of stitches per centimetre, whether it is long or short sleeved, the type of bottom used which could be hemmed, ribbed or drawstring.

l. Negative Declaration is also needed to export to the US for such a declaration is required to be made by the shipper when exporting Silk Garments, Fabric, Made-ups, where the natural fabric content is more than 70% of the garment

m. Packaging of the shipment has to be attended to with the utmost care in order to ensure the items shipped are in good, air-worthy packaging which will withstand the weight of the contents while in transit to destination and that they have the Name and Address of the Shipper and Consignee arked on at least two sides of each package to easy identification with the Marks and Numbers (as stated on the Invoice) legibly printed on at least two sides of each package, also to ensure easy identification. Poor packaging will cost the shipper more than the price of transport, it will result in loss/damage to the goods besides disrepute to the businessman.

Gifts and Samples  which are permitted duty free up to a value of INR 5,000 which is indicative of the actual value of the shipment or the price at which it is expected to be sold in the marketplace.  It is the Customs who have the right to adjudicate correct market values and should the shipper have quoted a lower price, duty would be levied on the basis of the assessment made by the Customs Authorities alone. Shipments are opened and checked randomly during clearance and clearance is not guaranteed as immediate - the goods are sometimes retained for further paperwork or valuation.

All other shipments must come with a printed Commercial Invoice which clearly states the market value of the goods.  Again adjudication lies with the customs and duty is levied on what is percieved as the "fair value".

Life saving drugs which may be imported without the payment of duties.

Customs Clearance Hours:

Clearance of all Samples, Gifts, Packages is undertaken by customs during the normal working hours i.e. between 1030 hours to 1700 hours only. Every second Saturday of the month is a holiday, and so are all Sundays.

Transit Time : between any destination in India and the US, for most reputed courier companies, the transit time is usually between 36-48 hours give or take a few hours depending on the city specific location and which company you are dealing with - some of them deliver sooner in their premium/more expensive options.

Weight Specifics : most courier companies give better bulk rates and insist on some minimum weight for special concessions.  A certain service tax is built into the pricing which is mandatory as per Government rules.  Charges are based on the weight of the shipment in kilos or fractions thereof (could be upto 0.5 kilos onwards upto as many kilos as fit into their bulk box rates - varies from company to company and can go upto 10 kilos).  Weighing is done on gross terms or on  the volume/dimensional weight of the shipment, whichever may be higher.

Contact Addresses:

(The order here is alphabetical and not on the basis of merit. Certainly multinational operations with tie-ups or affiliates across the world are bigger and appear better organised in terms of responsiveness and range of services.  They also have the added advantage of running their own infrastructure as opposed to acting as feeders who get the work done through more established set-ups.  The [Bombay] addresses given below are to facilitate ease of access.  Should you prefer a far wider list of options, with organisations of all sizes and claims, you could go through the Yellow Pages of any city directory and make an independent own choice from numerous names advertised there)

BLUE DART EXPRESS LTD

Blue Dart Centre
Sahar Airport Road
Andheri East
MUMBAI - 400099

Telephone 8241234
Fax 022- 8244098
Email csbom@bluedart.com

DTDC (DESK TO DESK COURIER SERVICES)

For Mumbai
Phone numbers : 91-022- 6191552, 6191553, 6191557, 6111821
Fax : 91-022- 6191556
E- Mail  dtdcmum@vsnl.com

DHL WORLWIDE EXPRESS
Airfreight House
Lok Bharati Complex
Marol Maroshi Road
Andheri (E)
MUMBAI - 400 059
Tel: 8502037/38/39 or 8505050/5151

FEDEX

Blue Dart and FEDEX have a symbiotic working relationship, the same job gets done through either of them.  If you wish to contact Fedex directly, then their Mumbai number is 91-022-5708888

Conclusion

With a whole multitude of choices, you are encouraged to experiment and get into a more stable arrangement after judging responsiveness in a business where even phone lines are engaged almost all the time.  Moreover, staff courtesy and attitude varies from company to company, location to location (only the multinational operations respond promptly to e-mailing, with the rest its better to enquire verbally).  Of course, some of the services have the same effect though they are labelled/presented differently by different companies in what is essentially a very cut-throat market and happily enough, this results in the best deals for the customer.  Quite understandably, you also get a better rate and service if you are a regular bringing in lots of business.




© The Law Office of Sheela Murthy, P.C.