Meaning of Important terms used in export process:
- Entry outwards: As per section 39 the master of a vessel shall not permit the loading of any export goods other than baggage and mail backs , until an order has been given by the P.O. granting entry outwards to such vessel
As per section 40 the person in charge of a conveyance shall not permit the loading at a custom station of export goods other than baggage and mail backs unless a shipping bill or bill of export or a bill of transhipment duly passed by PO has been handed over to him by exporter and ion case of baggage and mail backs , unless their export has been duly permitted by PO
2. Export General Manifest(EGM): As per section 41 the person in charge of a conveyance carrying export goods shall before departure of the conveyance form a custom station delivers to the PO and export manifest by presenting electronically (in case of vessel/aircraft) or export report (in case of vehicle ) in prescribed form
The principal commissioner or commissioner of customs in case where it is not feasible to deliver export manifest by presenting electronically allow the same to be delivered in any other manner
The person delivering the export manifest/report shall at the foot thereof make and subscribe to a declaration as to truth of its contents
If the PO is satisfied that the export manifest/report is in any way incorrect or incomplete and that there was no fraudulent intention he may permit such manifest /report to be amended or supplemented.
3. Transit of goods : As per section 53 any goods imported in a conveyance and mentioned in the import manifest/report , as for transit in the same conveyance to any place outside India or any custom station may be allowed to be so transited without payment of duty . However the goods should not have been prohibited under section 11 of the custom Act
4. Transhipment of Goods : As per section 54 transhipment refers to transfer of goods from one conveyance to another . It may be from one custom station to any custom station in India. section 54 provides that –
a. Where any goods imported into a customs station are intended for transhipment, the person in charge of conveyance will have to pretend a bill of transhipment to the proper officer in the prescribed form;
b. Where any goods imported into a customs station are mentioned into the import manifest /report as for transhipment to any place outside India such goods shall be allowed to be so transhipped without payment of duty. However the goods should not have been prohibited under section 11 of the custom Act.
c. Where any goods imported into a custom station are mentioned are in the import manifest/report for transhipment to any major port or to customs airport or to custom port(as notified by Board) or to any other custom station and the PO is satisfied about the bonafide intention for transhipment of the goods to such custom stations, the PO may allow the goods to be transhipped without payment of duty.
5. Project Imports: These are the imports of machinery, instruments, and apparatus etc. falling under different classifications, required for initial set up of a unit or for substantial expansion of an existing unit. In a project several different items are required, each of which is importable at different rates of custom duties. Hence, it becomes very complicated to make assessment for such project imports. Therefore, one consolidated rate of customs duty has been made applicable for all items imported under a project irrespective of the nature of the goods and their customs classification.
The items eligible for a project import are specified in Heading 9801 of the customs Tariff Act, 1975. These, include all items of machinery, instruments, apparatus and appliances, components, or raw –materials etc. for initial setting up of a unit or for substantial expansion of the same. The spare parts, raw materials and consumables stores up to 10 % of the value of the goods can be imported.
Few of the eligible projects are :
- Industrial Plant
- Irrigation project
- Power project
- Mining Project
- Oil & Mineral Exploration Project
- Other Projects as notified by CG from time to time.
6. Liability in case of Transit and transhipment of Goods: Where any goods are allowed to be transited under section 53 or transhipped under section 54 to any customs station, then, on their arrival at such customs station,-
- They shall be liable to duty,
- They shall be entered in the like manner as the goods are entered on the first importation, and
- The provisions of this Act and any rules and regulations shall apply in relation to such goods.
Transport of certain classes of goods subject to prescribed conditions [section 56]: Imported goods may be transported without payment of duty from one land customs station to another, and any goods may be transported from one part of India to another part through any foreign territory, subject to conditions prescribed for the due arrival of such goods at the place of destination.