Customs Procedures & Formalities for Export of Handicraft Products# By SN Panigrahi,

4
SN Panigrahi is a Versatile Practitioner, Strategist, Energetic Coach, Learning Enabler.
He is an International-Corporate Trainer, Mentor & Author
He has diverse experience and expertise with around 30 Yrs of Experience in
Project Management, Contract Management, Lean Six Sigma, Supply
Chain Management, Procurement, Strategic Sourcing, Global Sourcing,
Logistics, Exports & Imports, Indirect Taxes – GST etc.
He had done more than 150 Workshops Globally on above
Published more than 500 Articles; More than 60 Youtube Presentations &
70 SlideShares
He is an Engineer + MBA +PGD ISO 9000 / TQM with around 30 Yrs of
Corporate Experience.
He is a certified PMP® from PMI (USA) and become PMI India
Champion in 2016.
Also a Certified Lean Six Sigma Green Belt & Black Belt
Have been Trained in COD for 31/2 Yrs. on Strategy & Leadership
GST Certified – MSME – Tech. Dev. Centre (Govt of India)
ZED Consultant – Certified by QCI – MSME (Govt of India)
Member Board of Studies, IIMM
Member, Indirect Tax Committee & International Trade FTCCI
Empanelled Faculty in NI MSME & MSME –TDC PPDC
He has shared his domain expertise in various forums as a speaker & presented a number of papers in various national and
international public forums and received a number of awards for his writings and contribution to business thoughts.
SN Panigrahi
9652571117
snpanigrahi1963@gmail.com
Hyderabad

SN Panigrahi, Essenpee Business Solutions, India 5
“Item or product produced through skills that are manual, with
or without mechanical or electrical or other processes, which
appeals to the eye, due to the characteristics of being artistic or
aesthetic or creative or ethnic or being representative of cultural
or religious or social symbols or practices, whether traditional or
contemporary.
These items or products may or may not have a functional utility
and can be used as a decorative item or gift”.

How to
Start
Export
Business
6.
Payment
Realization
1.
Setting
Up
Business
2.
What to
Export
3.
Where to
Export
5.
Fulfilling
Export
Order
4.How to
Get
Export
Orders

7
Establish an
Organization
Formal Setting
up of
Organization
Obtain
PAN & Open a
Bank Account
Obtain IEC &
RCMC of EPC
Register with
GST & Customs
AD Registration
Selection of
Product /
Service
Freely
Exportable /
Restricted /
Prohibited?
Any Restrictions
in Importing
Country?
Study the
Demand &
Supply Trend;
Competition
Select the
Product
Considering
Competitiveness
Selection of
Markets &
Finding Buyers
Which Country to
go?
Understand
Market; Market
Research
Business Trips
Understand Level
of Competition &
Competitors
Offerings
Find a Distributor,
Agent, Wholesaler
or Engage
Representative
Sending Offers,
Negotiating &
Getting Orders
Receive Inquires
Send Offers /
Samples
Negotiate Price,
Delivery,
Payment & Other
Terms
Thoroughly
Understand &
Finalize
Agreement & Get
Formal Order
Confirm Order if
in Agreement &
Receive Payment
/ DC / LC
Execution of
Orders / Export
Source /
Manufacture
Required Goods
Check Quality &
Other
Documentary
Requirements
Engage CHA /
Forwarder for
Customs, Port &
Shipping
Formalities
Export & Get
Shipping
Documents After
Export
Post Export
Formalities
Delivery
Intimation to
Customer
Presenting
Shipping
Documents to
Bank
Realization of
Export Proceeds
Lessons Learned
Are you Ready for
Export Business?
Plan your Market Entry and
Finalize the Right
Agreements
Order Fulfilment &
Post Export
FormalitiesSN Panigrahi
Setting Up
Organization
What to
Export
Where to
Export
Executing
Export Order
How to Get
Export Orders
Payment
Realization

Complete Your Export
Documentation & other
Formalities
Develop Your Export
Strategy
Negotiate & Finalize
Contracts
Review and Understand
Export and Import
Regulations
Source or Prepare Your
Goods for Shipment
Negotiate Documents in
Bank for Getting
Payments
Export Marketing is the practice by which a company sells products or services to a foreign country.
Products are produced or distributed from the company’s home country to buyers in international
locations.
SNPanigrahi

9
Identify Products /
Services
Identify Markets
Evaluate
Distribution
Export Pricing &
Payment
Familiarizing
Export
Formalities
Identify key
Foreign
Markets for
your products
through
Market
Research
Evaluate
Distribution
and
Promotional
Options and
Establishing
an Overseas
Distribution
System
Determine
Export Prices,
Payment
Terms,
Methods and
Techniques;
Identify the
Products /
Services that
has Potential
for Export
Familiarize
yourself with
Shipping
Methods,
Delivery Terms,
Export
Documentation
Procedures,
Export Financing
and other
Requirements for
Exporting.
Getting Ready for Exports
SNPanigrahi

10
1. Explore the
Target (Two
or Three)
Countries
you think
have the best
market
potential for
your product.
2. Review
the market
factors for
each
country.
3.
Research
Data /
Information
for each
country.
4. Rate
each factor
on a scale
of 1 to 5
with 5
being the
best.
5. Prioritize
your target
market
countries /
regions
based on
your
ratings.
SN Panigrahi

11
• Nodal Authority for Trade Facilitating – Developing & Regulating Trade
• Matters Related to Multilateral and Bilateral Commercial Relations
Ministry of Commerce
and Industry
• Responsible for the Formulation of Guidelines and Principles for Importers as
well as Exporters of Country
• FTP, HBP Vol -1 & 2; ITC (HS)
Directorate General of
Foreign Trade (DGFT)
• Under Ministry of Finance is the Controlling Authority to handle Custom Duty
related matters & Physical Movement of Cargo Outward & Inward to the
Country.
• Customs Act, 1962; Customs Tariff Act 1975; IGST Act 2017
Central Board of Indirect
Taxes & Customs (CBIC)
• Monetary Authority - Manages Foreign Exchange;
• Facilitate External Trade and Payment and Promote orderly development and maintenance
of Foreign Exchange in India
• FEMA
Reserve Bank of India

12
Organizations
Supporting to
Exporters
DGFT
GST / Customs
EPCs / Commodity Boards /
FIEO
Ports/ICD / CFS/ Shipping /
Air lines
EIC / Other Inspection
Agencies
RBI / Banks / ECGCIIFT & IIP
Chambers of Commerce's
/ Trade Bodies
ITPO / ITP
DGTR
QCI / BIS / DGCIS

13
Directorate General of Foreign Trade (DGFT) under Foreign Trade
(Development and Regulation) Act, 1992.
DGFT Headquarter in Delhi and 35 Regional offices in the country
with about 2400 employees.
DGFT
Organization
Formulation of FTP & Import / Export controls;
ExportPromotion;
Issuance & monitoring of Certificates / authorization;
Trade Facilitation AND Grievance RedressalAND RSCQC
Enforcement
DGFT
Functions
FOREIGN TRADE POLICY(FTP)
HANDBOOK OF PROCEDURES
VOLUME -I - Procedures; the Appendices& Aayat Niryat forms.
VOLUME – II - SION (Standard Input Output Norms)
•ITC (HS) CLASSIFICATION OF EXPORT AND IMPORT ITEMS
All these Policy documents are available in DGFT website: dgft.gov.in
DGFT
Publications
FTP

14
Chapter -1: LEGAL FRAMEWORK AND TRADE FACILITATION
Chapter 2 : GENERAL PROVISIONS REGARDING IMPORTS AND EXPORTS
Chapter 3 : EXPORTS FROM INDIA SCHEMES
Chapter 4 : DUTY EXEMPTION / REMISSION SCHEMES
Chapter 5 : EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME
Chapter 6 : EOUs, EHTPS, STPS & BIO-TECHNOLOGY PARKS (BTPS)
Chapter 7 : DEEMED EXPORTS
Chapter 8 : QUALITY COMPLAINTS AND TRADE DISPUTES
Chapter 9 : DEFINITIONS
Chapter 7A : TRANSPORT AND MARKETING ASSISTANCE (TMA)

15
ITC-HS Codes
Schedules
Schedule – I
ITC(HS)
Import
Schedule – II
ITC(HS)
Export
Divided into 21 Sections and each section is
further divided into chapters. The Total 98
Number of Chapters in the schedule I
Contain 97 Chapters giving all the details about
the guidelines related to the export policies.
ITC-HS Codes or better known as Indian Trade Clarification based on Harmonized
System of Coding was adopted in India for import-export operations. Indian
custom uses an Eight Digit ITC-HS Codes

16
The item wise export and import policy shall be, as specified in ITC(HS) published and notified by
Director General of Foreign Trade which Specifies Conditions according to which any goods
are allowed for Export or Import.
Schedule 1 of ITC (HS) Provides for Import and
Schedule 2 of ITC (HS) Provides for Export - Click
➢These Items
can’t be
Exported /
Imported at all.
➢ Allowed only
through Designated
State Trading
Enterprises like
STC; MMTC
➢ Must get
Authorization
Explicitly
Permitting such
Goods
➢ No
Permission
Required
Freely
Allowed
Restricted
Items
Prohibited
Items
Channelized
Items
ITC
(HS)

17
Sl.
No.
ITC HS
Code
Description
1 33019031 ATTARS OF ALL KINDS IN FIXED OIL BASE
2 33074100
AGARBATTI" & OTHR ODORIFEROUS PRPNS
WHICHOPERATE BY BURNING
3 33074900
OTHER ODORIFEROUS PRPNS USD FOR
DEODORIZING ROOM (EXCL AGARBATTI)
4 34060010 CANDLES
5 39231020
WATCHBOX JEWELLERY BOX AND SIMILAR
CONTAINER OF PLASTICS
6 42022910
HANDBAGS OF OTHER MATERIALS EXCLUDING
WICKER WORK OR BASKET WORK
7 42023110 JEWELLERY BOX - SURFACE OF LEATHER
8 42023910 JEWELLERY BOX - OTHER SURFACE OF LEATHER
9 44140000
WOODEN FRAMES FOR PAINTING,
PHOTOGRAPHS, MIRRORS OR SIMILAR OBJECTS
10 44190010 TABLEWARE
11 44190020 KITCHENWARE OF WOOD
12 44201000 STATUTTES & OTHER ORNAMENTS OF WOOD
13 44209010 WOOD MARQUETRY & INLAID WOOD
14 44209090
OTHERS-WOOD MARQUETRY & INLAID WOOD;
CASKETS & CASESFOR CULTRY & OTHR SIMILAR
ARTICLES OF WOOD; STATUETTES AND OTHER
ORNAMENTS, OF WOOD; WOODEN ARTICLES OF
FURNITURE NOT FALLING IN CHAPTER 94
15 44219060
PARTS OF DOMESTIC DECORATIVE ARTICLES
USED AS TABLEWARE & KITCHENWARE
16 46012010 COIR MATS & MATTING BOUND IN PARALLEL STAND
17 46019900
PLNTS & SMLR PRDCTS OF PLATNG MATRLS PLATS&
SMLR PRODCTS PLACD SIDE BY SIDE & BOUND
TOGETHER IN FORM OF SHEETS (E.G.MATS ETC)
18 46021100
BASKETWORK, WICKERWORK AND OTHER ARTICLES,
OF BAMBOO.
19 46021200
BASKETWORK, WICKERWORK AND OTHER ARTICLES,
OF RATTAN.
20 46021911 PALM LEAF BASKET ETC.
21 46021919 PALM LEAF ITEMS OTHER THEN BASKETS
22 46021990
OTHERS - BASKETWORK, WICKERWORK AND OTHER
ARTICLES, MADE DIRECTLY TO SHAPE FROM
PLAITING MATERIALS OR MADE UP FROM GOODS OF
HEADING 4601; ARTICLES OF LOOFAH.
23 48021010 HAND MADE PAPER
24 48021020 HAND MADE PAPERBOARD
25 48237030
ARTICLES MADE OF PAPER MACHE OTHER THAN
ARTWARE.
26 48239018
PRODUCT CONSISTINGS OF SHEETS OF PAPER/
RBORD, IMPREGNGTED,COTED OR COVERED WITH
PLASTICS
27 56050020 IMITATION ZARI THREAD
28 56050090 OTHERS
29 58041090 TULLS AND OTHR NET FBRCS OF OTHR TXTL MATRLS
30 58043000 HAND MADE LACE
SN Panigrahi, Essenpee Business Solutions, India

31 58050010
HAND WOOVEN TAPESTRIES HAND MADE OR
NEDDLE WORKED BY HAND, OF COTTON -
EMBRODIERY
32 58081090 BRAIDS, IN PCS OTHER THAN OF COTTON
33 58090010 ZARI BORDERS
34 58090090 OTHERS
35 58101000
EMBORIDERY IN THE PIECE, IN STRIPS OR IN
MOTIFS - EMBRODIERY WITHOUT VISIBLE
GROUND
36 58109210
EMBROIDERY BADGES, MOTIFS AND THE
LIKE
37 58110010 KANTHA - EMBROIDERY
38 58110020 QUILT WADDING - EMBROIDERY
39 61043100
ENSAMBLES OF WOOL OR FINE ANIMAL HAIR
- CROCHETTED
40 61171020 SHAWLS OF WOOL
41 63041100 BEDSPREADS,KNITTED OR CROCHETED
42 63049190
OTHER - FURNISHING
ARTICLS,KNTD/CROCHETED
43 63079011 DRESS MATERIAL HANDPRINTED OF COTTON
44 63079012 DRESS MATERIAL HANDPRINTED OF SILK
45 63079013
DRESS MATERIAL HANDPRINTED OF MAN
MADE FIBER
Sl.
No.
ITC HS Code Description
46 63079019 DRESS MATERIAL HANDPRINTED OTHERS
47 63079020 MADE UP ARTCLS OF COTTON
48 63079090 DRESS MATERIAL HANDPRINTED OTHERS
49 64032040 KOLAPURI CHAPPALS AND SIMILAR FOOTWEAR
50 64061010 EMBROIDERED UPPERS OF TEXTILE MATERIALS
51 65040000
HATS & OTHR HEADGEAR PLTD/MADE BY
ASSMBLNGSTRIPS OF ANY MATRLS W/N
LIND/TRMMD
52 65059000
OTHER HEADGEAR, HATS, KNITTED /
CROCHETTED MADE UP FROM LACES ETC W/N
LIND/TRMMD
53 66020000
WALKING STICKS, SEAT STICKS, WHIPS, RIDING
CROPS, AND THE LIKE
54 67010010 FEATHERS DUSTERS
55 67029090 ARTIFICIAL FLOWERS ETC OF OTHER MATERIALS
56 68159990
OTHERS-OTHER ARTCLS OF STONES/OTHR
MINRLS
57 69111011
TABLEWARE OF BONE CHINA AND SHOFT
PORCELAIN
58 69111019
TABLEWARE OF OTHER THAN BONE CHINA &
SFTPRCLN
59 69111021 KITCHENWARE OF BON CHINA & SFT PRCLN
60 69111029
KITCHENWARE OF OTHER THAN BON CHINA &
SFT PRCLN

Sl.
No.
61 69119010 TOILET ARTICLES OF PRCLN CHINA
62 69119020
OTHERS -WATER FILTERS OF A CAPACITY
NOT EXCEEDING 40 LTRS. OF PORCELAIN
63 69119090
OTHER OF OTHER HSEHLD & TOLT ARTCLS
OF PRCLN
64 69120010
CERAMIC TABLEWARE (E.G. OF IMITATION
PORCELAIN/OR SEMI-PORCELAIN)
65 69120020 CEREMIC KITCHENWARE
66 69120030
TOILET ARTICLES OTHER THAN PORCELAIN
/CHINA
67 69120040
CLAY ARTICLS AS TABLEWARE,
KITCHENWARE ETC
68 69120090 OTHERS
69 69131000 STATUETTES ETC OF PORCELAIN/CHINA
70 69139000
OTHER STATUETTE ETC (EXCL OF PORCLAIN
/CHINA
71 69141000
OTHER CERMC ARTCLS OF PORCELAIN /
CHINA
72 69149000
OTHER CERMC ARTCLS EXCL OF PORCELAIN
/ CHINA
73 70099200 OTHR GLASS MIRRORS, FRAMED
74 70132800 OTHER
75 70133300
OF LEAD CRYSTAL; OTHER DRINKING
GLASSES, OTHER THAN OF GLASS
CERAMICS
76 70133700 OTHERS
77 70134100
GLSSWR FR TBL KTCHN,TOLT,OFFC INDOR
DCORTION (EXCL GOODS OF HDG NO 7010/7018)
78 70134900
GLSSWR FR TBL KTCHN,TOLT,OFFC INDOR
DCORTION (EXCL GOODS OF HDG NO 7010/7018)
79 70139100 OF LEAD CRYSTAL: OTHER GLASSWARE
80 70181010 BANGLES
81 70181020 BEADS
82 70181090
OTHERS -GLSS BEADS,IMTN PERLS,IMTN PRCS
STONES/ SEMI PRCS STONES & SMLR GLSS
SMALLWARES
83 70189010 GLASS STATUE OF OTHR ARTCLE OF HDG 7018
84 70200011 GLOBES FOR LAMPS & LANTERNS
85 70200029 OTHER GLS CHIMENEYS
86 70200090 OTHER ARTICLES OF GLASS NES
87 71131110 SILVER FILLIGREE WORK
88 71171100 CUFFLINGS AND STUDS
89 71171910 BANGLES
90 71171920 GERMAN SILVER JEWELLERY

20
Sl.
No.
91 71171990
OTHERS - IMMITATION JEWELLERY
CATEGORY
92 71179010
JEWELLERY STUDDED WITH IMITATION
PERALS OR IMITATION OR SYN. STONES
93 71179090
OTHERS - IMMITATION JEWELLERY FOR
PERSONAL ADORNMENT
94 73239200
OTHER HOUSEHOLD ARTICLES OF CAST
IRON ENAMELLED
95 73239420 UTENSILS
96 73239490
OTHER HOUSEHOLD ARTICLES OF IRON
N.E.S. (OTHER THAN CAST IRON)OR
STEEL,ENAMELLED
97 74181021 UTENSILS OF BRASS
98 74181022 COPPER UTENSILS
99 74181023 UTENSILS OF OTHER COPPER ALLOYS
100 74181024 EPNS WARES
101 74181031
Of EPNS; TABLE, KITCHEN OR OTHER
HOUSEHOLD ARTICLES AND PARTS THEREOF
102 74181039
OTHER TABLE, KITCHEN OR OTHER
HOUSEHOLD ARTICLES
103 74199920
UTENSILS ARICLES OF COPPER ALLOYS
ELECTROPLATED WITH NICKLE SILVER
104 74199930 ARTICLE OF BRASS
105 74199940 COPPER WORKED ARTICLES
106 76151030 OTHER TABLE AND KITCHENWARE OF ALUMINIUM
107 76151090
OTHER HOUSEHOLD ARTICLES & PARTS THERE
OF
108 83061000 BELLS GONGS AND THE LIKE
109 83062190 OTHER ORNMNT PLTED WITH PRCS METAL
110 83062910 OTHR STATUETTES(EXCLUDING WORKS OF ART)
111 83062990 OTHERS - OTHER STATUETTES AND ORNAMENTS
112 83063000 PHOTOGRPH,PICTURE/SMLR FRAMES,MIRORS
113 83089020 IMITATION ZARI SPANGLES
114 83089031
FOR GARMENTS, MADEUPSM KNITWARE, PLASTIC
AND LEATHER GOODS - BUCKLES
115 83089039 OTHER BEADS AND SPANGLES OF BASE METAL
116 92029000 OTHER STRING MUSICAL INSTRUMENTS
117 92059010 FLUTES
118 92059090 OTHERS WIND MUSICAL INSTRUMENTS
119 92060000
PERCUSSION MUSICAL INSTRUMENTS (E.G.
DRUMS, XYLOPHONES, CYMBOLS, CASTENETS,
MARACAS)
120 94033010 CABINETWARE

Sl.
No.
121 94033090
OTHERS -WOODEN FRNTR OF A KND USED IN
OFFICES
122 94035010 BED STEAD
123 94035090
OTHER WOODEN FURNITURE USED IN
BEDROOM
124 94036000
OTHER WOODEN FURNITURE WITH OR
WITHOUT EMBELLISHMENTS OF OTHER
MATERIAL
125 94038100 FURNTIURE OF RATTAN/BAMBOO
126 94038900
OTHER - FURNITURE OF OTHER MATERIALS,
INCLUDING CANE, OSIER, BAMBOO PR
SIMILAR MATERIALS
127 94039000 PARTS OF FURNITURES OF HEADING 9403
128 94049099
HANDMADE POUFFES/ARTICLES OF
BEDDING, CUSHIONS ETC
129 94051010 HANGNG LMPS COMPLETE FITNGS
130 94051020 WALL LAMPS
131 94053000
LGHTNG SETS OF A KIND USD FR CHRISTMS
TREE
132 94055010 HURRICANE LANTERNS
133 95030010 DOLLS OF WOOD
134 95030090 OTHER
135 95051000 ARICLES OF CHRISTMAS
136 95059010 OTHER MAGICAL EQUIPMENTS
137 96011000 WORKED IVORY AND ARTICLES OF IVORY
138 96019010 WRKD TORTOISE-SHELL AND ARTCLS THEREOF
139 96019020 WRKD MOTHR OF PEARL & ARTCLS THEROF
140 96019030 WRKD BONE(EXCL WHALE BONE)& ARTCLS THROF
141 96019040 WRKD HRN,CORL ETC ANML CRVNG MTRL & ARTCLS
142 96019090 OTHR UNDER HDNG 9601
143 96020010
WORKED VEGETABLE CARVING MATERIAL & ARTICLES
THEREOF
144 96020020
MOULD/CRVD ARTCLS OF WAX,STEARN,NTRL GUMS
AND RESINS AND OTHR MOULD/CRVD ARTCLS
145 96020040 OTHR ARTCLS OF UNHRDND GELATIN
146 96020090
OTHER WORKED VEGITABLE OR MATERIAL CARVING
MATERIAL AND ARTICLES OF THESE MATERIALS
MOULDED OR CARVED
147 96031000
BROOMS & BRUSHES,CONSTNG OF TWIGS/OTHR
VGTBL MTRLS BOUND TOGTHR,WTH/WTHT HNDLS
148 96062200
BUTTONS OF BASE METAL NOT COVERED WITH
TEXTILE MATERIAL
149 96089910
PEN HOLDERS PENCIL HOLDERS AND SIMILAR
HOLDERS
150 96140000
SMOKING PIPES AND CIGAR OR CIGARETTE HOLDER
AND PARTS THEREOF.

22
151 97011010 MADHUBANI PAINTINGS(ON TXTLS)
152 97011020 KALAMKARI PAINTINGS(ON TXTLS)
153 97011030 RAJASTHANI PAINTINGS(ON TXTLES)
154 97011090 OTHERS-PAINTINGS,DRAWINGS & PASTELS
155 97019091 DOMESTIC ARTICLES OF WOOD HAND DECORATED
156 97019092 RESTAURANT DECORATION OF PLASTICS
157 97019099 OTHER HAND DECORATED MANUFACTURED ARTICLES
158 97020000 ORIGNL ENGRVNGS,PRNTS & LITHOGRPHS
159 97030010 ORIGINAL SCULPTURE & STATUARY IN METAL
160 97030020 ORIGNL SCLPTRS & STATUARY IN STONE
161 97030090 ORIGNL SCLPTRS & STATUARY IN OTHR MATRLS
162 97040010 USED POSTAL STAMP
163 97040020 USED OR UNUSED FIRST-DAY COVERS FOR PHILAT
164 97040090 OTHR UNDER SUB-HEADING 970400
165 97050010 STUFFED ANIMALS & BIRDS (TAXIDERMY)
166 97050090
OTHERS-COLECTNS & COLLECTRS PIECS OF ZOOLOGICL
BOTANICL,MINERALOGICL,ANATOMICL,HISTORICL
ARCHAEOLOGICL,ETHNOGRAPHC/NUMSMATC INTERST
167 97060000 ANTIQUES OF AN AGE EXCDNG ONE HUNDRED YRS
Sl.
No.
ITC HS
Code
Description

24
Ministry of Finance, Government of India
Department of Revenue
Functions Administrative
Authority
Formulation of Policy
Concerning Levy
and Collection of Customs
Duty, Goods and Service Tax
(GST) and Central Excise
duties, Prevention
of Smuggling and
Administration of Matters
Relating to Customs, Goods
and Service Tax (GST),
Central Excise, and
Narcotics to the Extent under
CBIC’s Purview.
Custom Houses
Customs Preventive
Commissionerate's
Central Goods and
Service Tax (CGST)
Commissionerate's
Central
Revenues Control
Laboratory
CBIC

25
Collection of Customs Duties on Imports and Exports as per the Customs
Act, 1962 and the Customs Tariff Act, 1975;
1
Export of Cargo, baggage, Postal Articles and arrival and departure of
vessels, aircrafts etc.;
2
Discharge of agency functions and Enforcing Prohibitions and
Restrictions on Imports and Exports under various legal enactments
3
Prevention of Smuggling including interdiction of narcotics drug
trafficking; and
4
International Passenger Clearance.5

26
Customs functions cover substantial areas of activities involving international
passengers, general public, importers, exporters, traders, custodians,
manufacturers, carriers, port and airport authorities, postal authorities and various
other government and semi-government agencies, banks etc.
Customs is continuously rationalizing and modernizing its procedures through
adoption of EDI and global best practices.
Also, as a member of the World Customs Organization (ECO), Indian Customs
has adopted various International Customs Conventions and procedures including
the Revised Kyoto Convention, Harmonized Classification System, GATT based
Valuation etc.

27
Custom duty is a kind of an indirect tax that is imposed on both exported
and imported goods and services. The tax imposed on the import of goods is
known as the import duty. Whereas, the tax imposed on the export of goods is
known as the export duty. The government charges these taxes during the export
or import of goods and services to raise money and / or to shield the domestic
establishments from the competitors from other countries.
Entry No. 83 of List 1 to Schedule VII of the Constitution of India, empowers
the Union Government to legislate and collect duties on imports and exports.
Accordingly, the Customs Act, 1962, effective from 1-2-1963 provides vide its
Section 12 for the levy of duties on goods imported into or exported from India.
The items and the rates of duties leviable thereon are specified in two Schedules
to the Customs Tariff Act, 1975.
The First Schedule specifies the various import items in systematic and well
considered categories, in accordance with an international scheme of
classification of internationally traded goods known as “Harmonized System of
Commodity Classification” and specifies the rates of import duties thereon, as
prescribed by the legislature. The duties on imported items are usually levied
either on specific or advalorem basis, but in few cases specific-cum-ad-
valorem duties are also levied.
The Second Schedule incorporates items that are subject to exports duties and
the rates of duties thereof.
First
Schedule
Duty on
Import
Second
Schedule
Duty on
Export
Customs Tariff
Act, 1975
Value-based Duties are called
Ad-Valorem Duties,
Quantity-based Duties are
called Specific Duties.
In few cases Specific-cum-Ad-
Valorem duties are also levied

28
The predominant mode of levy of duties is on ad-
valorem basis i.e., with reference to value. For this
purpose, the value of the imported goods is required
to be determined as per Section 14 of the Customs
Act, 1962 read with the Customs Valuation
(Determination of Value of Imported Goods)
Rules, 2007.
These provisions are essentially the adoption of
GATT based valuation system (now termed WTO
Valuation Agreement) which is being followed
globally.
Likewise, the value of export goods is required to be
determined as per provisions of Section 14 of the
Customs Act, 1962 read with the Customs
Valuation (Determination of Value of Export
Goods) Rules, 2007.
Customs Valuation
Import
Customs
Valuation
(Determination
of Value of
Imported
Goods) Rules,
2007
Export
Customs
Valuation
(Determination
of Value of
Export Goods)
Rules, 2007
Customs
Valuation
Section 14 of the
Customs Act, 1962

29
Sea Cargo Manifest & Transhipment Regulations, 2018
Central Board of Indirect Taxes and Custom (CBIC) vide Notification No. 38/2018-Cus (NT)dated 11.05.2018
read with Notification No. 65/2018-Cus (NT) dated 30.07.2018 and 88/2018-Cus(NT) dated 30.10.2018 have
notified Sea Cargo Manifest and Transshipment Regulations 2018, which come into force on 1st of March,
2019.
This regulation supersedes the earlier regulations of Import Manifest (Vessels) Regulations, 1971, Export
Manifest (Vessels) Regulation, 1976 and Transportation of Goods (Through Foreign Territory)
Regulations of 1965. The new regulation stipulates changes in timelines and requirements for advance notice
by shipping lines (vessels) arriving in India and Exports through shipping lines (vessels) out of India.
The Indian Entity representing the Master of the vessel shall have to be registered with the Indian
Customs to transact business under the new regulations and shall be called Authorised Sea Carriers(ASC).
The agents acting on behalf of the Authorised Sea Carrier(ASC) shall be called as Authorised Sea Agents.
As per the new regulations, the Authorised Sea Carrier (ASC) / Authorised Sea Agent (ASA) shall submit an
Arrival Manifest electronically, prior to departure from the last port of call to the Indian Port of call. And
submit a Departure Manifest electronically before departure from the Indian Port of call.
The submission of Arrival and Departure Manifest shall have to be complied with by the ASC/ASA before
departure from the last port/customs station of call to every Indian customs station and Departure then on
respectively.

30
Arrival Manifest
(Import General
Manifest (IGM))
Section 30 of the
Customs Act 1962
Departure
Manifest
(Export General
Manifest (EGM))
Section 41 of the
Customs Act 1962
Authorized Sea Carrier
(ASC)/Authorized Sea
Agent (ASA) shall
Submit an Arrival
Manifest electronically,
prior to departure from
the last port of call to
the Indian Port of call
Authorized Sea Carrier
(ASC) / Authorized Sea
Agent (ASA) shall
submit a Departure
Manifest electronically
before departure from
the Indian Port of call
Sea Cargo Manifest

31
❖ Covers reporting of all cargo in the ship rather than import/ export cargo (coastal
❖ cargo, same bottom cargo)
❖ Seeks additional details about every cargo reported (invoice value, HSN etc.)
❖ Time of reporting is advanced to the port of departure
❖ Ensures track and trace of the cargo reported
❖ Includes features necessary for movement of vessel within India
❖ Electronic capture of details sought manually through paper (Crew List etc.)
❖ Online Application for Entry Inward
❖ Enhanced, Real-time information exchange
Sea Cargo Manifest & Transhipment Regulations, 2018
Salient Changes

32
Self-assessment of Imported and Export Goods
Section 17 of the Customs Act, 1962 provides that an importer entering any
imported goods under section 46 or an exporter entering any export goods under
section 50 shall self-assess the duty.
Thus, under self-assessment, it is the importer or exporter who will ensure that
he declares the correct classification, applicable rate of duty, value, benefit
of exemption notifications claimed, if any, etc. in respect of the imported /
export goods while presenting Bill of Entry or Shipping Bill.
Entry of Good for
Importation
Section 46 of Customs
Act, 1962
Entry of Good for
Exportation
Section 50 of Customs
Act, 1962
Presenting Bill of Entry
Presenting Shipping Bill
(exported in a vessel or
aircraft), a Bill of Export
(exported by land)
Self-Assessment
Sec 17 of
Customs Act,
1962

33
The declaration filed by the importer or exporter may be verified by the proper officer when so
interdicted by the Risk Management Systems (RMS).
Such verification will be done selectively on the basis of the RMS, which not only
provides assured facilitation to those importers having a good track record of
compliance but ensures that on the basis of certain rules, intervention, etc., high risk
consignments are interdicted for detailed verification before clearance.
On the basis of interdictions under RMS, Bills of Entry may either be taken up for verification
of assessment or for examination of the imported goods or both. If the self-assessment is
found incorrect, the duty may be reassessed.
In cases where there is no interdiction by RMS or non existence of any other factor, there will
be no cause for the declaration filed by the importer to be taken up for verification, and such
Bills of Entry will straightaway be facilitated for clearance without assessment and
examination, on payment of applicable duty, if any.
Self-assessment : Risk Management Systems (RMS)

34
The verification of a self-assessed Bill of Entry or Shipping Bill, which are interdicted by the
RMS, shall be with regard to correctness of classification, value, rate of duty, exemption
notification or any other relevant particular having bearing on correct assessment of imported or
export goods. For the purpose of verification, the proper officer may order for examination or testing
of the imported or export goods. The proper officer may also require production of any relevant
document or ask the importer or exporter to furnish any other relevant information. Thereafter, if the
self-assessment is not found to have been done correctly, the proper officer may re-assess the
duty. This is without prejudice to any other action that may be warranted under the Customs Act,
1962. On re-assessment, contrary to the self-assessment done by the importer or exporter, the
proper officer shall pass a speaking order, if so desired by the importer or exporter, within 15 days
from the date of re-assessment of bill of entry or shipping bill.
When verification of self-assessment in terms of Section 17 requires testing / further documents /
information, and the goods cannot be re-assessed quickly however, the importer or the exporter
requires the goods to be cleared on urgent basis. In such cases, provisional assessment may be
done in terms of Section 18 of the Customs Act, 1962, once the importer or exporter, as the
case may be, furnishes such security as deemed fit by the proper officer of Customs for payment of
deficiency, if any, between the duty as may be finally assessed or re-assessed as the case may be,
and the duty provisionally assessed.
Self-assessment : Risk Management Systems (RMS)

35
e-Sanchit
In recent years, India witnessed major reforms in the taxation system via digitalization. From Income
Tax to GST, most of the things are now available online. To ensure ease of doing business,
the CBIC (Central Board of Indirect taxes and Customs), has launched e-SANCHIT, which an online
platform for paperless processing, uploading of the documents enables registered persons to
file their customs related documents online without approaching other regulatory agencies for
requisite permissions if any.
The e-SANCHIT initiative is made mandatory. Only the ICEGATE registered users can use the e-
SANCHIT application by accessing e-SANCHIT link.
Under this new scheme, hard copies of the uploaded documents are not required to be
produced to the assessing officers.
The objective here is to minimize the physical interface between the customs agencies and trade and
to maximize the pace of clearance.

36
e-Sanchit
It has already been made available to importers and exporters in the country and as a next step, CBIC is
extended this facility to PGA (Participating Government Agencies).
This will enable PGAs to provide necessary clearances, in the form of certificates, through the
document upload facility to the beneficiaries (importer and exporters). Beneficiaries shall be
accordingly notified of the uploaded documents.
•The Integrated Declaration compiles the information requirements of Seven governmental agencies, namely,
• 1. Customs,
• 2. Food Safety and Standards Authority of India (FSSAI)
• 3. Plant Quarantine,
• 4. Animal Quarantine,
• 5. Drug Controller,
• 6. Wild Life Control Bureau (WCCB) and
• 7. Textile Committee
and Replaces nine different or separate forms required by said different agencies.
•The proposed “Single Window Interface for Trade (SWIFT), would reduce interface with Governmental
agencies, reduce precious time & the cost of doing business in India.

39
S1
Cotton
Yarn
S2
Fabric S3
Garments
FC
CustomerBasic Supply
Value = Rs 100
GST @ 5 = Rs 5
Total Invoice
Value = Rs 105
Inward Inv Value = Rs 105
Less ITC = Rs 5
Total Cost Value = Rs 100
Value Addition = Rs 50
Basic Supply Value=Rs 150
GST @ 5 =Rs 7.5
Total Inv Value =Rs 157.5
Inward Inv Value = Rs 157.5
Less ITC = Rs 7.5
Total Cost Value = Rs 150
Basic Supply Value=Rs 210
GST @ 5 =Rs 10.5
Total Inv Value =Rs 220.5
Inv Value= Rs 220.5
Less ITC = Rs 0
Total Cost
Value = Rs 220.5
Tax Paid = Rs 7.5
Less ITC = Rs 5
Net Tax Paid = Rs 2.5
GST on VA @5% = Rs 2.5
Net Tax Paid is Tax Paid on Value Addition. Therefore called Value Added Tax
Net Tax Paid = Rs 5 + Net Tax Paid = Rs 2.5 + Net Tax Paid = Rs 3 = Total Tax = 10.5
Tax Paid = Rs 10.5
Less ITC = Rs 7.5
Net Tax Paid = Rs 3
GST on VA @5% = Rs 3
Credit of Tax Paid at Every Stage is Available as Setoff for Payment of Tax at Subsequent Stage
C1
C2
1. GST is a Mutli-Point Taxation
2. GST is a Value Added TAX
3. Seamless Credit is allowed
as long as the Value Chain
Continues with Furtherance of
Business;
4. No Credit is allowed in case
No Furtherance of Business or
Exempted Supply

40

S.No. Chapter, Heading,
Subheading or Tariff
item
Description of Goods Rate
(1) (2) (3) (4)
1. 3406 Handcrafted candles 12 %
2. 4202 22, 4202 29, 4202
31 10, 4202 31 90,
4202 32, 4202 39
Handbags including pouches and purses; jewellery box 12 %
3. 4416, 4421 99 90 Carved wood products, art ware/decorative articles of wood (including inlay work, casks, barrel, vats) 12 %
4. 4414 00 00 Wooden frames for painting, photographs, mirrors etc 12 %
5. 4420 Statuettes & other ornaments of wood, wood marquetry & inlaid, jewellery box, wood lathe and
lacquer work [including lathe and lacquer work, ambadi sisal craft]
12 %
6. 4503 90 90 4504 90 Art ware of cork [including articles of sholapith] 12 %
7. 4601 and 4602 Mats, matting and screens of vegetable material, basketwork, wickerwork and other articles of
vegetable materials or other plaiting material, articles of loofah (including of bamboo, rattan, canes
and other natural fibres, dry flowers (naturally dried), articles thereof, ringal, raambaan article, shola
items, Kouna/chumthang (water reeds) crafts, articles of Water hyacinth, korai mat]
5 %
8. 4823 Articles made of paper mache 5 %
9. 5607, 5609 Coir articles 5 %
10. 5609 00 20, 5609 00 90Toran, Doorway Decoration made from cotton yarn or woollen yarn and aabhala (mirror) with or
without hanging flaps
5%
11. 57 Handmade carpets and other handmade textile floor coverings (including namda/gabba) 5 %
12. 5804 30 00 Handmade lace 5 %
13. 5805 Hand-woven tapestries 5 %
14. 5808 10 Hand-made braids and ornamental trimming in the piece 5 %
15. 5810 Hand embroidered articles 5 %
16. 6117, 6214 Handmade/hand embroidered shawls of sale value not exceeding Rs. 1000 per piece 5 %
17. 6117, 6214 Handmade/hand embroidered shawls of sale value exceeding Rs. 1000 per piece 12 %

42
Subheading or Tariff item
(1) (2) (3) (4)
18. 6802 Carved stone products (e.g., statues, statuettes, figures of animals, writing sets, ashtray, candle stand) 12 %
19. 6815 99 90 Stone art ware, stone inlay work 12 %
20. 6912 00 10 6912 00 20 Tableware and kitchenware of clay and terracotta, other clay articles 12 %
21. 6913 90 00 Statuettes & other ornamental ceramic articles (incl blue potteries) 12 %
22. 7009 92 00 Ornamental framed mirrors 12 %
23. 7018 10 Bangles, beads and small ware 5%
24. 7018 90 10 Glass statues [other than those of crystal] 12 %
25. 7020 00 90 Glass art ware [ incl. pots, jars, votive, cask, cake cover, tulip bottle, vase ] 12 %
26. 7113 11 10 Silver filigree work 3 %
27. 7117 Handmade imitation jewellery (including natural seeds, beads jewelry, cardamom garland) 3 %
28. 7326 90 99 Art ware of iron 12 %
29. 7419 99 Art ware of brass, copper/ copper alloys, electro plated with nickel/silver 12 %
30. 7616 99 90 Aluminium art ware 12 %
31. 8306 Bells, gongs and like, non-electric, of base metal; statuettes, and other ornaments, of base metal; photograph, picture
or similar frames, of base metal; mirrors of base metal; (including Bidriware, Panchloga artware, idol, Swamimalai
bronze icons, dhokra jaali)
12 %
32. 9405 10 Handcrafted lamps (including panchloga lamp) 12 %
33. 9401 50, 9403 80 Furniture of bamboo, rattan and cane 12 %
34. 9503 Dolls or other toys made of wood or metal or textile material [incl wooden toys of sawantwadi, Channapatna toys,
Thanj avur doll)
12 %
35. 9504 Ganjifa card 12 %
36. 9601 Worked articles of ivory, bone, tortoise shell, horn, antlers, coral, mother of pearl, seashell other animal carving
material
12 %
37. 9602 Worked vegetable or mineral carving, articles thereof, articles of wax, of stearin, of natural gums or natural resins or
of modelling pastes etc, (including articles of lac, shellac)
12 %
38. 9701 Hand paintings drawings and pastels (incl Mysore painting, Rajasthan painting, Tanjore painting, Palm leaf painting,
basoli etc)
12 %
39. 9703 Original sculptures and statuary, in metal, stone or any other material 12 %

43
Subheading or Tariff
item
12 4420 STATUTTES & OTHER ORNAMENTS OF WOOD - Wood Deities Nll
67 69120040 CLAY ARTICLS AS TABLEWARE, KITCHENWARE ETC Nil
80 70181010 BANGLES - Glass Bangles/ lac / shellac ( except those made from precious metals ) Nil
88 71171100 CUFFLINGS AND STUDS - IMITATION JEWELLERY Nil
89 71171910 BANGLES - IMITATION JEWELLERY Nil
90 71171920 GERMAN SILVER JEWELLERY - IMITATION JEWELLERY Nil
91 71171990 OTHERS ‐ IMMITATION JEWELLERY CATEGORY - Nil
92 71179010 JEWELLERY STUDDED WITH IMITATION PERALS OR IMITATION OR SYN. STON
ES
Nil
93 71179090 OTHERS ‐ IMMITATION JEWELLERY FOR PERSONAL ADORNMENT Nil
147 96031000 BROOMS & BRUSHES,CONSTNG OF TWIGS/OTHR VGTBL MTRLS BOUND TOG
THR,WTH/WTHT HNDLS
(INCLUDING BRUSHES CONSTITUTING PARTS OF MACHINES, APPLIANCES OR
VEHICLES), HAND‐OPERATED MECHANI
Nil
148 96062200 BUTTONS OF BASE METAL NOT COVERED WITH TEXTILE MATERIAL -
BUTN,PRS‐FSTNR,SNP‐FSTNR AND PRSS‐STUD ETC
18%
150 96140000 Smoking pipes (including pipe bowls) and cigar or cigarette holders, and parts thereof 28%

Definition
of Export
Export of Services
Section 2 (6) of IGST Act, 2017 :
(i) The Service Provider is situated in India;
(ii) The Recipient of Service is situated Outside India;
(iii) The Place of Supply of that service is also Outside India;
(iv) The Payment for such service has been received by the supplier of
service in Convertible Foreign Exchange or in Indian rupees
wherever Permitted by the Reserve Bank of India; and
(v) The supplier of service and the recipient of service are Not Merely
Establishments of a Distinct Person in accordance with Explanation 1
in section 8; .
Export of Goods
Section 2 (5) of IGST Act, 2017 :
“Taking Goods out of India to a place outside India”
Explanation.––For the purposes of this Act, where a person has,––
(i) an establishment in India and any other establishment outside India;
(ii) an establishment in a State or Union territory and any other establishment outside that State or Union territory; or
(iii) an establishment in a State or Union territory and any other establishment being a business vertical registered within
that State or Union territory, then such establishments shall be treated as establishments of distinct persons.

46
Sec 7(4)
of IGST
Act,
2017
Sec 7(2)
of IGST
Act,
2017
Sec 7(5)
of IGST
Act,
2017
Export or
Import of Goods
or Services
Treated as
Inter-State
Transaction
Exporter / Importer Need
to Register Compulsorily
Sec 24 of CGST Act
IGST
Applicable

47
Sec 2(23) of IGST Act: “zero-rated supply” shall have the meaning assigned to it in section 16;
Sec 16. (1) of IGST Act : “zero rated supply” means any of the following supplies of goods or
services or both, namely:––
(a) export of goods or services or both; or
(b) supply of goods or services or both to a Special Economic Zone developer or a Special
Economic Zone unit.
Zero Rated
Supply Supply of Goods or Services
To SEZ / SEZ Dev.
Export of Goods or Services

Sec 16. (2) of IGST Act : Subject to the provisions of sub-section (5) of section 17 of the
Central Goods and Services Tax Act, credit of input tax may be availed for making
zero-rated supplies, notwithstanding that such supply may be an exempt supply.
Zero Rated Supply:
Export / Supplies to
SEZ
Taxable
Supply
ITC
Allowed
Exempt
Supply
OR

49
Exporter
Without Payment
of Tax
Under Bond / LUT
FORM GST RFD-11
With Payment of
IGST
Payment of
IGST
Refund of
ITC
Refund of
IGST
Option - 1
Option - 2
Sec 16. (3)(a)
Sec 16. (3)(b)
File Separate
Application
In RFD -01A
No Separate
Application
S/B Treated as
Application
File Separate
Application
In RFD - 01A
Export of Goods
Export of Services /
Supplies to SEZ
Circular No. 17/17/2017- GST dated 15.11.2017 and
Circular no. 24/24/2017-GST dated 21.12.2017
Zero Rated Supply
Export / Supplies to
SEZ / SEZ Dev.
ITC
Allowed
ITC
Allowed
Accumulated ITC can be Claimed as Refund
Credit Ledger Debited to the Extent of Refund Claimed
ITC Utilized towards Payment of IGST
SNPanigrahi
GST Paid
Inward Supply

Receipt of Enquiry &
Sending Offers &
Negotiation
Receipt of Export
Order / Contract or
Indent
Assess Credit
Worthiness of
Customer
Verify whether the
Export order is in Line
with Agreed Terms-
Acknowledge &
Accept if in Order
Receiving Advance
Payments or L/C etc
Obtaining Pre-
Shipment Finance &
Obtaining Export
Licenses /
Authorizations
Arrange / Source /
Manufacture Required
Goods
Get Goods Ready
with Proper Packing &
Marking
Appoint / Engage CHA
/ Forwarder
Arrange Pre-Shipment
Inspection if Required
or other Formalities
Reservation of
Shipping Space
Prepare Necessary
Documents - Dispatch
of Goods & Arranging
Insurance etc if
Required
Receipt of Goods in
the Port & Make
Customs Clearance
Obtain S/B & Bill of
Lading / Air Waybill
Negotiate the
Documents in the
Bank
Realize the Export
Proceedings

Register @
Customs
IEC & AD
Register @
Customs
Export
Promotion
Schemes if any
Filing of
Declaration (S/B)
in EDI
By Exporter /
CHA
Checklist is
Generated for
Verification
Data is
Submitted to the
System by the
Service Center
Operator
System
Generates a
Shipping Bill No.
Generation of
Shipping Bills;
Issue of B/L or
AWB by
Shipping / Air
Lines
Customs
Examination of
Export Cargo if
Required &
Allow Let Export
System Appraisal
of Shipping Bills
RMS
Arrival of Goods
at Docks
Customs
Registration
Processing of
Shipping Bill
ProcessingofShippingBill

Factory Stuffing
One Time
Approval from
GST official for
FCL Cargo
Dock / CFS /
ICD Stuffing
In case Exporter
doesn’t have
Permission for
Factory Stuffing
or LCL Cargo
Air Cargo
Carting
The Export Cargo
is Carried at the
Airport Nominated
Warehouse of the
Airlines

Export Clearance Procedure
Factory Stuffing of Containers
Intimation to Superintendent or
Customs for stuffing of
cargo from factory.
Empty Container picked up
from CY / ICD and Transported
to Factory .
Container stuffing
Self Sealing.
Export Documentation
Made Ready at Factory
Invoice & Packing List;
Shipper Declaration;
Purchase Order
Loaded and Sealed container moves
to port of Loading / ICD / CFS.
S/B filed along with other docs
for Customs Clearance at
Gateway port / CFS / ICD.
Documents cleared.
Container seals Intact.
‘Let Export’ Order given. .
Container moves to designated
Terminal for loading on vessel.
SN Panigrahi

Circular No. 26/2017-Customs, dated the 1st July, 2017
SN Panigrahi

Purchase of RFID
Embedded E-
Seals from the
Authorized
Vendors
Intimation to
Concerned
Authorities when
self-sealing is
carried out
Prepare &
Declare Serial
Number of e-
seal in S/B
Feed Data in the
e-seal through
web based
module Provided
by the Vendor
Following Data
Should be fed:
IEC; S/B No. &
Date; E-seal
No.; Date &
Time of Sealing;
Customs Port;
Container No.;
Trailer No.
Container
Moves to Dock.
Readers Provided
at the Port Reads
the Data
Customs
Clearance Subject
to RMS. Container
Seals Inspected. If
Un-Tampered “Let
Export” order given
Containers Move
to Designated
Terminal for
Loading on
Vessel
One Time Factory Stuffing Approval
Empty Container
Picked up from
CY & Transported
to Factory for
Stuffing

SN Panigrahi 57
Commercial
Documents
To discharge respective
Legal and other incidental
Responsibilities under
Sales Contract.
Regulatory
Documents
These are prescribed by
various Government
Departments / Bodies for
compliance of formalities
under relevant Laws
Governing Transactions in
Exporting Country &
Importing Country.
Documents
Required by
Exporting Country
Documents
Required by
Importing Country
Export Assistance
Documents
These are the documents
which are required for
claiming assistance under
the various Export
Assistance / Promotion
Measures

Principal Documents
Commercial Invoice
Packing List
Certificate of Inspection
Certificate of Origin
Insurance Certificate
Bill of Exchange
Bill of Lading / Airway Bill
Shipping Advice
Auxiliary Documents
Proforma Invoice
Intimation for Inspection
Shipping Instructions
Insurance Declaration
Application for Certificate of Origin
Mate’s Receipt
Letter to Bank for Collection
Shipping Order
SN Panigrahi

1 Name, Address,GSTIN No of Supplier
2
Unique Serial Number of Each Invoice in one or multiple series (Can have Dash -orSlash
/.But it should be different series for each year
3 Date of Issue of Invoice
4 Name , Address ,GSTIN of recipient If Registered
5
In Case of Unregistered Buyer, Name, Address, State, Place of Delivery is compulsorily
required if Invoice Value before taxes is more than 50000
6 HSN Code of Goods
7 Description of Goods
8 Quantity as well as Quantity Code or Units
9 Total Value
10 Discount if any and Taxable Value (Total Value-Discount)
11 Rate of Tax IGST & Tax Amount (if opted for Payment)
12 Country of Origin & Country of Destination
13 Address for Delivery
14 Whether Tax is Payable Under Reverse Charge
15 Signature/Digital Signature of Authorized Signatory

60
Export Tax Invoive
(Under Sec 31 of CGST Act; Rule 46)
SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS ON PAYMENT OF INTEGRATED TAX”
Or
“SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF
INTEGRATED TAX”
Exporter / Consignor / Beneficiary
Name & Address
GSTIN :
Invoice No. & Date Exporters Ref. / Sales Contract
Buyers Order No. & Date
Other Reference(s)
Importer / Consignee Buyer (if other than Consignee) Notify Party
Name and Address of the Other Party Involved
other than Buyer
Pre-Carriage by: Place of Receipt
by Pre-Carriage:
Country of Origin:
Port Code :
Country of Final Destination
Vessel / Flight Details Port of Loading Terms of Delivery :
Payment Terms :
L/C No. & Date :
Usance :
Port of Discharge Final Destination
Marks & Nos No. & Kind of Pkgs Description of Goods HSN
Code
Qty UoM
Foreign Currency Indian Currency
Price Value Price Value
Container No.
Discount
Taxable Value (FOB)
GST Rate
GST Amount
Exchange Rate : Total
LUT No. & Date
Bank Details Grand Total
Amount Chargable (Rs in Words)
For
Place
Date Authorised Signatory

61
Provided also that in the case of the export of goods or services, the invoice
shall carry an endorsement
“SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS ON
PAYMENT OF INTEGRATED TAX”
or
“SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS
UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX”,
as the case may be, and shall, in lieu of the details specified in clause (e), contain the following details, namely,-
(i) name and address of the recipient;
(ii) address of delivery; and
(iii) name of the country of destination
Tax Invoice – Export
Rule 46

Before
Commencement
of Movement of
Goods
Every
Registered
Person who
Causes
Movements of
Goods
•In Relation to
Supply or
•Reasons other
than Supply or
•Inward supply from
unregistered person
•Furnishing
Information
Relating to
Transaction in
Part A of Form
GST EWB-01
•Information
Relating to
Transport in
Part B of Form
GST EWB-01
Consignment
Value Exceeding
Rs. 50,000/-.
Timing Who How When
Consignment
value
To be declared in
Invoice, a bill of
supply or delivery
challan (Sec 15)
CGST
SGSTIGST
Union territory
tax
Value of
Exempt
Supply and
Goods SN Panigrahi

SN Panigrahi 64
Required
for Value
> Rs 50,000
Cargo to
Move Along
with E-Waybill
+ Other
Documents
Like Invoice
E-Waybill Not
Required in
Case of
Customs
Sealing
E-Waybill Not
Required
Transport of
Exempted
Goods

FORM GST EWB-01
(Rule 138) E-Way Bill
PART-A : Transaction Details
A.1 GSTIN of Supplier
A.2 GSTIN of Recipient
A.3 Place of Delivery (PIN Code of place of delivery)
A.4 Document Number
A.5 Document Date
A.6 Value of Goods
A.7 HSN Code
A.8 Reason for Transportation (1.Supply; 2 Export or Import; 3 Job Work;
4 SKD or CKD; 5 Recipient not known; 6 Line Sales; 7 Sales Return; 8
Exhibition or fairs; 9 For own use; 10 Others)
PART-B : Transport Details
B.1 Vehicle Number for Road
B.2 Transport Document Number (Transport Document number
indicates Goods Receipt Number or Railway Receipt Number
or Airway Bill Number or Bill of Lading Number)
E-Way Bill No. :
E-Way Bill date :
Generator :
Valid from :
Valid until :
SN
Panigrahi

AWB
(Airway Bill)
A transport
document used
for Air Freight
B/L (Bill of
Lading)
A transport
document for
Sea Freight
L/R
a transport
document for
Road Freight
SN Panigrahi

Types of
Shipping
Bill
Free
Shipping Bill
Dutiable
Shipping Bill
Drawback
Shipping Bill
Shipping bill
for Shipment
Ex-Bond
Coastal
Shipping Bill
Shipping Bill/ Bill of Export is the main document required by the Customs Authority for allowing shipment.
There are following Types of Shipping Bills:

NumberofCopiesof
ShippingBill
Customs Copy
Exporter's Copy
Exchange Control
Copy
Export Promotion
Copy
The customs authorities endorse the duplicate copy of the shipping bill with
"Let Export Order" and "Let Ship Order".
After the clearance or customs, exporter can load the goods on ship.
Generated After
“Let Export Order”
is Generated
Optional - Generated
after submission of
EGM

Circular No. 55/2016-Customs; Dated 23rd November, 2016
Shipping Bill (Exchange Control copy and Export Promotion copy)
After the Appraiser grants LEO (Let Export Order) in the system, printout of the Shipping
Bill is generated by the system in triplicate i.e. (i) Customs copy (ii) Exporter's copy and (iii)
Exchange Control Copy. The fourth copy namely the Export Promotion Copy is generated
after submission of EGM. Further, with regard to Shipping Bill:
a. detailed copy of the Shipping Bill is not required by the Authorised Dealer. It is
enough if a summary copy is printed.
b. CBEC provides copies of digitally signed Shipping Bills to DGFT.
c. The data of Shipping Bill is integrated with EDPMS (Export Data Processing and
Monitoring System) of RBI.
In the light of the above, printing of the Exchange Control copy and Export Promotion
copy of the Shipping Bill does not serve any useful purpose.
Printing of the Exchange Control copy and Export Promotion copy
of the Shipping Bill

Registered
Merchant
Exporter
Registered
Supplier
Intra-State Supply
0.05% CGST + 0.05% SGST
(OR)
Inter-State
Supply
0.1% IGSTPhysical
Movement
of Goods Export within 90 Days
From Tax Invoice of Supplier
Indicate in S/B –
1. Suppliers GSTIN
2. Suppliers Invoice No. & Date
Port / ICD /
Airport
LCS
Registered
Warehouse
(OR)
Aggregate Supplies
from Multiple
Registered Suppliers
Merchant Exporter Procuring from Domestic Supplier
Notification No. 40/2017-Central Tax (Rate), 23rd October, 2017
Notification No. 41/2017--Integrated Tax (Rate), 23rd October, 2017c
Registered with an
Export Promotion
Council or a
Commodity Board
w.e.f 23rd October, 2017
Warehouse
to Port
In a Major Relief
to the Merchant
Exporters, Partial
Exemption of
GST was
Provided on
Procurement from
Domestic
Suppliers, w.e.f
23rd October, 2017
Tax Invoice
SN Panigrahi

72
Registered
Merchant
Exporter
Registered
Supplier
Jurisdictional
Tax
Officer
1. Purchase Order Placed
2. Copy of
Purchase Order
5. After
Export
Copy of S/B or
Bill of Export
+
Proof of EGM /
Export Report
6. After Export
Copy of S/B or
Bill of Export
+
Proof of EGM /
Export Report
7. Supplier Shall not be
Eligible for the Tax
Exemption if the Registered
Recipient fails to Export the
said goods within a period
of 90 Days from the date of
issue of Tax Invoice.
Merchant Exporter Procuring from Domestic Supplier
Notification No. 40/2017-Central Tax (Rate), 23rd October, 2017
Notification No. 41/2017--Integrated Tax (Rate), 23rd October, 2017
4.Exports Made
Within 90 Days
3. Supplies Made with GST Payment – Rate 0.1%
8. Supplier to Pay
Differential GST amount in
case Merchant Exporter
Fails to Export within 90
Days SN Panigrahi

73
According to Notification No. 40/2017-Central Tax (Rate), 23rd October, 2017 and Notification No. 41/2017--
Integrated Tax (Rate), 23rd October, 2017, notification No. 3/2018-Central Tax, dated 23.01.2018 and Circular No.
37/11/2018-GST; Dated the 15th March, 2018 the benefit of procuring at Concessional Rate of 0.1% allowed to
Merchant Exporters subject to condition that the Merchant Exporter of such goods can Export the goods only
under LUT / bond and cannot export on payment of integrated tax per Rule 96(10) of the CGST Rules.
Registered
Merchant
Exporter
Registered
Supplier
(OR)
Inter-State
Supply
0.1% IGST
Supply
Tax Invoice
Export
Without Payment
of Tax under
LUT / Bond
Intra-State Supply
0.05% CGST +
0.05% SGST
Export
With Payment
of IGST
Claim
ITC
Refund
This Option
Not Available
Sec 16. (3)(a) of IGST Act
Sec 16. (3)(b)
of IGST Act
SN Panigrahi

Export
Benefits
Duty
Drawback
Advance
Authorization
EPCG
MEIS
MSME
Interest Subvention
As per Section 75 under the Customs Act, 1962.
Aims to provide the refund / recoupment of custom and
excise duties paid on inputs or raw materials used in the
manufacture of export goods. Rates are Generally as per
AIR
Chapter 3 of FTP: To offset infrastructural inefficiencies and
associated costs involved in export of goods/products,
which are produced / manufactured in India
Chapter 4 of FTP: Issued to allow duty free import of
inputs, which are physically incorporated in export product
(making normal allowance for wastage).
Chapter 5 of FTP: Allows Import of Capital Goods for pre-
production, production and post-production at 0%
customs duty.
This scheme is to boost MSME sector exports provide
Interest Subsidy on the post - and pre-shipment export
credit @ 5 percent and for merchant exporters with
an interest subsidy of 3 percent for exports of Specified
416 products

75
To offset infrastructural inefficiencies and associated costs
involved in export of goods/products, which are produced /
manufactured in India
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76
Chapter 3 of
FTP
EXPORTS
FROM INDIA
SCHEMES
Objectives
To offset infrastructural inefficiencies
and associated costs involved in
export of goods/products, which are
produced/ manufactured in India,
especially those having high export
intensity, employment potential and
thereby enhancing India’s export
competitiveness
Incentive
Duty Scrips are issued for Value
Ranging from 2 - 7% of FOB Value
of Exports as per Para 3.02 of FTP.
Two
Schemes
Merchandise Exports
from India Scheme
(MEIS)
Service Exports
from India Scheme
(SEIS)
For Notified Goods /
Products X Markets
APPENDIX -3B of HB
For Notified Services
APPENDIX- 3D of HB
Own Imports
Offset Towards
Customs Duty
Transfer
- Exempted
from GST
Options1 2
For
Goods
For
Services
SN Panigrahi

77

78

79

80

81
As per Section 75 under the Customs Act, 1962.
Aims to provide the refund / recoupment of custom and excise duties paid on
inputs or raw materials used in the manufacture of export goods. Rates are
Generally as per AIR
SN Panigrahi

82

83

84

85

86
Chapter 4 of
FTP
DUTY
EXEMPTION /
REMISSION
SCHEMES
Objectives
Schemes under this Chapter
enable duty free import of inputs
for export production, including
replenishment of inputs or duty
remission.
Duty Exemption
Issued to allow duty free import of
input, which is physically
incorporated in export product
(making normal allowance for
wastage).
In addition, fuel, oil, catalyst which is
consumed / utilized in the process of
production of export product, may
also be allowed.
Two
Schemes
Issued based
on SION
Advance
Authorization Scheme
Para 4.03 of FTP
Actual User Condition
Duty Free Import Authorization
Scheme (DFIA)
Para 4.25 of FTP
Transferable
Import : Customs Duty +
GST Exempted
Import Validity : 12 Months
Export Obligation (EO) Min. 15% or As
Prescribed to be Fulfilled over a Period
of 18 Months
Import : Exempted Basic Customs Duty only
Import Validity : 12 Months
Export Obligation (EO) Min. 20% or As
Prescribed to be Fulfilled over a Period
of 12 Months
SN Panigrahi

87

88
Chapter 5 of
FTP
Export
Promotion
Capital Goods
(EPCG)
Scheme
Objectives
The objective of the EPCG Scheme is to
facilitate import of capital goods for
producing quality goods and services
and enhance India’s manufacturing
competitiveness.
Duty Exemption
EPCG Scheme allows import of
capital goods (except those
specified in negative list in
Appendix 5 F) for pre-production,
production and post-production at
zero customs duty.
Two
Options
Import
Validity : 24 months from the
date of issue of Authorisation.
No Revalidation permitted.
Customs Duty + GST Exempted
Domestic Procurement
Supplies are Treated as Deemed
Exports.
GST First Payable, then can be
Claimed as Refund
Actual User Condition
Imported CG shall be subject to
Actual User condition till export
obligation is completed and
EODC is granted.
Export Obligation
6 times of Duties, Taxes and Cess saved To
be fulfilled in 6 years reckoned from date of
issue of Authorisation.
Conditions &
Export
Obligation

89

GOODS TO BE IMPORTED IN THE MANUFACTURING OF HANDICRAFTS ITEMS FOR EXPORT PURPOSES.
Notification No.50/2017-Customs, dated the 30th June, 2017
Amended vide Notification No. 34/2019-Customs, dated the 30th September, 2019 & Notification No. 37/2019-
Customs; 30th December, 2019
(a) Electric parts and wire rolls for fitting on electric lamp / table lamp /
wall lamp / ceiling lamp / door lamp / window lamp / garden lamp
(b) Hinges, metal locks and back of photo frames, and fittings for
photo frame / box;
(c ) Wax items for candle holder / votive / cup;
(d) Chemicals / lacquer required for improved finish of export product ;
(e) Motifs for attachment on export product;
(f)Severe atmospheric corrosion inhibitor (SACI) used as rust
preventive concentrate for coating on ornamental painted and
unpainted cast iron artware ;
(g) Heat resistant paint used on cast iron items for ornamental fire
place accessories;
(h) Wood polish materials ; and
(i) Poly films used for shrink wrapping and cling – wrapping of artwares
(j) Wooden biscuit (splings -joining accessory for wooden board);
(k) Decorative paper for lamp shade;
(l) Sea shell, Mother of Pearl (MOP), Cattle horn and Bone Materials;
(m) Prints for photo frames
(n) Animal hair materials for brushes;
(o) Copper adhesive tape ½ ” or less;
(p) adhesive copper foil1/8 ” to 1;
(q) Patina and patina bronze;
(r ) Analog clock movement;
(s) Hardware brass and metal fittings for furniture;
(t) Handles/blades for cutlery;
(u) Glass sheet (clear or opaque or cloured glass) for
use with mosaic;
(v) Air and electric operated screw driver with hose and
couplings;
(w) Tool bits, for motorizer and screw driver;
(x) Glue applicator;
(y) Moisture measuring tools;
(z) Air operated guns and tools for inserting fasteners
for brads, flexi - points, pins, staples, nails and hinges;
(za) Power operated mitre saw;
Vide above Notifications Following Items may be Imported @ Nil Rate of Duty Subject to the Conditions
(Sr. No 229: 32, 34, 38, 83 or any other Chapter)

GOODS TO BE IMPORTED IN THE MANUFACTURING OF HANDICRAFTS ITEMS FOR EXPORT
PURPOSES.
amended vide Notification No. 34/2019-Customs, dated the 30th September, 2019 & Notification No.
37/2019-Customs; 30th December, 2019
If,- (a) the goods are imported,-
(i) by a manufacturer of handicrafts;
(ii) by a merchant exporter tied up with supporting manufacturer of handicrafts; or
(iii) on behalf of the said manufacturer or merchant exporter by the Export Promotion Council for Handicrafts,
for use in the manufacture of handicrafts for export by the said manufacturers or as the case may be, the
merchant exporter and the said manufacturers or as the case may be, merchant exporter is registered with the
Export Promotion Council for Handicrafts;
(b)the value of the goods imported does not exceed 5% of the FOB value of handicrafts exported during the
preceding financial year; and
(c)the importer produces a certificate from the Export Promotion Council for Handicrafts certifying the value of
exports made during the financial year mentioned in clause (b) above and also the description, value and
quantity of the item(s) already imported under this notification during the current financial year.
Conditions for Importing @ Nil Rate of Duty

92
Machinery or equipment for Effluent Treatment Plant for Handloom Sector or Handicraft
Sector.
Conditions:
If, the importer furnishes a certificate from an officer not below the rank of Deputy Secretary to the
Government of India in the Department of Industrial Policy and Promotion in the Ministry of
Commerce and Industry to the effect that goods being imported are required for effluent treatment
plant for leather industry or handloom sector or handicraft sector, as the case may be.
GOODS TO BE IMPORTED IN THE MANUFACTURING OF HANDICRAFTS ITEMS FOR EXPORT
PURPOSES.
amended vide Notification No. 34/2019-Customs, dated the 30th September, 2019 & Notification No.
37/2019-Customs; 30th December, 2019
Vide above Notifications Following Items may be Imported @ Nil Rate of Duty Subject to the Conditions
Sr No : 433;84 or any chapter

93
Design Development Facilities
To provide design development inputs to the interested
exporters, the Council has set up a separate organization
namely National Centre for Product & Design
Development [NCDPD] which provides design input to
the members. For more information you may kindly visit
their website ( www.ncdpd.in )

Import
Services
Goods
Section 2 (10) of IGST Act,
2017 – bringing goods into
India from a place outside
India.
Section 2 (11) of IGST Act,
2017 :
1. Supplier - located outside
India;
2. Recipient - located in India;
and
3.The place of supply of service
is in India
Article 269 A : Import Treated as Inter-State Supply
Levy of Tax
Registered Recipient
on Reverse Charge
Levy of Tax
BCD + IGST + Com.
Cess
Under the
Customs Act, 1962
read with the
Custom Tariff Act,
1975
Levy of Tax
OIDAR by
Unregistered
Person
Payable by Supplier /
Appointed Person
SN Panigrahi

Import Clearance Procedure
Upon Cargo Arrival, the Importer has
Two Options:
To Clear Immediately
for
Home Consumption
To Store under Bond
&
Clear Later
Cargo is put in Customs Bonded Warehouse
without Payment of Duty and Cleared later
On Filling Ex-Bond B/E on payment of
applicable duties.
Bonded Warehouse storage charges will be
Applicable during the period of storage.
Cargo is cleared for delivery upon
payment of applicable duties.
Importer takes away his cargo and no
storage charge is applicable, if done so
During the free period.
File B/E for Home Consumption File B/E for Into Bond
SN Panigrahi

Arrival of Goods
& Filling of IGM
Filling of BE
In ICEGATE
Assessment of
BE by Appraisal
(System)
Payment of
Customs Duty
Physical
Examination as
Examination
order (RMS)
Release Order
Clearance of
Goods for Home
Consumption
SN Panigrahi

Types
of Bill
of Entry
BE for Home
Consumption
BE for Ex-
Bond
Clearance
BE for
Warehousing
SN Panigrahi

99
Import Duty : under GST w.e.f 2-02-2018
A Ass. Value 100
B Basic Customs Duty (on A) @ 7.5% 7.5
C
Social Welfare Surcharge
(on B)
@ 10% 0.75
D
IGST
(on A+B+C)
@ 12% 13
E
Total Customs Duty
(B+C+D)
21.24
F
Customs Duty Net-off Credit
(E-D)
8.25
Note : Compensation Cess if any shall be calculated on (A+B+C). Input Tax Credit of this Cess can
only be utilized towards Cess payment towards outward supply.
SN Panigrahi

100
ICEGATE stands for
Indian Customs Electronic commerce
Gateway. It’s a e-commerce portal of
Central Board of Indirect Taxes & Customs.
https://www.icegate.gov.in/Webappl/
How to Calculate Import Duty
SN Panigrahi

101
Introduction
The handicrafts sector is important for the Indian economy as it is one of the largest employment
generators and accounts for a significant share in the country’s exports. The state and regional
clusters contribute significantly to handicrafts export. The Indian handicrafts industry is
fragmented, with more than seven million regional artisans and more than 67,000 exporters /
export houses promoting regional art and craftsmanship in the domestic and global markets.
KEY MARKETS AND EXPORT DESTINATIONS
Handicraft exports from India increased by 6.44 per cent year-on-year during 2018-19 with US$
3.80 billion. During April 2019-February 2020, export stood at US$ 3.39 billion. During this period, the
exports of various segments like woodwares at US$ 719.48 million, embroidered & crochetted goods
at US$ 549.1 million, misc. handicrafts at US$ 969.8 million, handprinted textiles & scarves at US$
329.34 million, imitation jewellery at US$ 210.6 million and artmetal wares at US$ 444.41 million.
Indian handicrafts are exported across geographies, with the top 10 destinations being the US,
the UK, the UAE, Germany, France, Latin American countries (LAC), Italy, the Netherlands,
Canada and Australia.

Export of Handicrafts : A Ray of Hope
Let’s Explore More & More Opportunities to
create a more Stable, Sustainable and
productive socioeconomic environment

104

Contact Details:
SN Panigrahi
9652571117
snpanigrahi1963@gmail.com 107

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