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Preface
Since the publication of 25th Edition of Nabhi's Exporters Manual and Documentation in September 2001 following significant changes and developments have taken place. (1) In order to raise the share of Indias exports to at least 1% of world exports in the next five years, Government of India has formulated strategies for export sector at macro level. (2) A large number of export promotion measures have been announced in the Exim Policy and Procedures during last two years. (3) RBI has introduced Electronic Funds Transfer System for inter/intra city transfer of money without any paper. (4) RBI regulations regarding Project and Service Exports have been drastically liberalised. (5) Diamond, Gem and Jewellery Export Promotion Schemes have been revamped. (6) ECGC has introduced major reforms in credit insurance policies. (7) Rate of interest for export financing has been reduced by Reserve Bank of India. (8) RBI has issued Master Circular on Export Financing. (9) More products have been covered under the Export (Quality Control and Inspection) Act, 1963. (10) Issue of Certificate of Origin by ASSOCHAM. (11) CBEC has issued Central Excise and Customs Manuals. These manuals, inter alia, contain consolidated excise/ customs rules for exporters. (12) RBI has issued Master Circular on Export of Goods & Services incorporating liberalised foreign exchange regulations and facilities. (13) Customs Clearance of Export Cargo has been made simpler and faster by relaxation of examination norms, computerisation and status ascertainment through SMS. (14) Foreign Exchange regulations regarding Indian Joint Ventures & Wholly Owned Subsidiaries abroad have been further liberalised and consolidated in RBI Master Circular. (15) Liberal export incentives relating to Import Facilitation and Import Licences. (16) Decentralisation of work relating to Fixation of Brand Rate of Drawback. (17) Ministry of Commerce and Industry has published MDA Code for Export Promotion efforts prescribing revised forms and procedures. MDA Scheme has also been amended from time to time in the recent past. (18) Inland Transport Assistance Scheme for Export of Agricultural Products & Processed Food items from North East Region including Sikkim has been introduced. (19) Jute External Marketing Assistance Scheme has been amended. (20) Liberalised Income Tax Exemptions/Deductions in respect of export and allied activities as per Finance Act, 2003. (21) Revision of application forms under Exim Policy and Procedures. Incorporating these and lot of other useful material We are now presenting 26th edition of Nabhis EXPORTERS MANUAL AND DOCUMENTATION JANUARY 2004. It is a thoroughly revised, rewritten and enlarged edition incorporating information of immense practical utility to all concerned with export trade. The book serves as bible for prospective as well as established exporters in India. The speciality of this edition is that like its earlier editions, the book includes comprehensive information on setting of suitable Business Organisation for export business, International Product Policy & Planning, International Marketing Communications, Export Business Correspondence, Modern Modes of Communication, Appointment of Agents in Overseas Markets, Participation in Trade Fairs/Exhibitions, New Export Policy & Procedures 2002-2007, ECGC, New Financing Schemes, Calculation of Exchange Rates & Exchange Risk Management, ISO 9000, BIS 14000, Marine Insurance, Shipping & Customs Clearance, Foreign Exchange Formalities & Facilities, Import of Capital Goods against Exports, Duty Exemption Scheme, Export of Services, Incentives against Exports, MDA, Tax Exemptions/Deductions, Garment/Textile Entitlement Policy and Dictionary of Important Terms used in International Trade. Further the book contains a number of useful lists of Chambers of Commerce in India & Abroad, World Trade Centres, Trade Points, Indian Missions Abroad, Foreign Missions in India, State Govt. Export Corporations, Niryat Bandhus for Export Promotion Activities in the States, All India and Regional Export Promotion Associations, Research/Testing Laboratories/Institutes and Import Export Consultants in India. The Book begins with providing latest Trends and Commodity-wise Profiles of exports of various commodities from India. Country-wise Directions of Export of Principal Commodities are given for the prospective exporters with special emphasis on export thrust sectors and prospects of exports to new markets. Three Chapters have been devoted to Commercial Relations, Trade Agreements, Trade Barriers in International Trade, International Trade Conferences, GATT and WTO. Question Answers on WTO and Quantative Restrictions have also been added. The chapter on Form of Business Organisation incorporates useful details for setting up a partnership/company form of export establishment. The chapter Preliminary Knowledge About Exporting has been prepared to explain What, Where

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& How to Export. Chapters on International Product Policy & Planning and Contacting Prospective Buyers are extremely useful. The chapter on Registration of Exporters enables new exporters to expeditiously register their export organisation with the Regional Licensing Authorities, Export Promotion Councils, Income Tax & Sales Tax Authorities. Business Correspondence, besides other factors, is a key to success in export business. A separate chapter has been included in the book for this purpose with Specimen Business Letters usually needed while dealing with overseas buyers. Sending/Exporting Samples have also been covered in this chapter. Yet another chapter, dealing with Modern Modes of Communication, i.e., Multimedia, E-mail, Internet and Electronic Data Intercharge has been included. Overseas Agents play an important role to promote exports from India. Their appointment and allied matters are important areas covered in a separate chapter of the Book. Similarly Participation in Trade Fairs/Exhibitions Abroad is one of the pre-requisites for successful marketing of Indian products abroad. This has been thoroughly explained in an exclusive chapter. The New Export Policy and Procedures 2002-07 have been revised by the Government w.e.f. 1.4.2003. Simplified and updated text of new policy provisions and procedures with explanations and export instructions, clarifications, terms and conditions of export of certain commodities and application forms for grant of export licences have been incorporated in a separate chapter for enhancing the practical utility of this Book. The Garment Export Entitlement Policy for 2000-2004 has also been modified from time to time. This has been adequately covered in a separate chapter of this Book. The chapter on Diamond, Gem & Jewellery Export Promotion Schemes has been thoroughly revised incorporating New Schemes, Notifications, Circulars & Clarifications. Yet another speciality of this edition is that the chapters on Export Financing by authorised dealers in foreign exchange has been revised so as to incorporate the latest changes as per RBI Master Circular. The Chapter on Quality Control and Pre-shipment Inspection besides incorporating exemptions from compulsory inspection also provides sufficient information about ISO 9000 (Series) with special reference to the procedures for grant of licences for these standards by the Bureau of Indian Standards and Total Quality Management. The chapter on Excise Procedures has been rewriter in view of CBEC Excise Manual. The chapter on Foreign Exchange Regulations concerning exports has been completely revised incorporating the new liberalised Foreign Exchange Facilities and Procedures under FEMA 1999, FEMA Regulations & RBI Directives as contained in RBI Master Circulars. Correct understanding of the Exchange Rates, Calculation of Merchant Rates and Exchange Risk Management are important for every exporter. In order to acquaint exporters with these matters a separate chapter has also been included. Counter Trade is another area being encouraged by the Government. A separate chapter deals with counter trade arrangements in India. The chapters on Banks Role in Exports, FEDAI Rules, Export Transactions, Project Exports, Shipping and Customs Clearance, Methods of Payment and Documentary Credits, Indian Joint Ventures have been updated by incorporating new literature and latest changes. The New Import Export Policy, 2002-2007 revised with effect from 1.4.2003 has brought out substantial changes in various schemes relating to export promotion. These schemes have been included in this book by devoting separate chapters for this purpose. The chapter on Export/Trading/Star Trading Houses/Super Star Trading Houses provides latest policy, procedure and facilities to such houses. The chapters on Incentives for Deemed Exports, Duty Drawback and Duty Entitlement Pass Book Scheme have been completely revamped. Chapters on Jute External Marketing Assistance Scheme, Financial Assistance Scheme for Agricultural, Horticultural and Meat Exports and Financial Assistance for Marine Products Exports have also been throughly revised. The chapter on Marketing Development Assistance has been revised completely as per Ministry of Commerce and Industry MDA Code and subsequent amendments. The chapter on Availing Tax Exemptions and Deductions under the Income Tax Act and Sales Tax laws has also been updated as per Finance Act, 2003. Moreover, a Dictionary of Important Terms used in international trade has been provided for better understanding of the terms used in foreign trade particularly with reference to Indian context. A detailed subject index has been provided for facilitating easy reference to the various matters covered in the book. Separate Indices for Alphabetical Arrangement of Chapters, Application Forms, Documents, Certificates, Proformae, Specimen Letters and Export Promotion and Facilitation Organisations/Associations and Institutions, etc. will further enhance the practical utility of the Book. The book is expected to be extremely useful to the new as well as established exporters, export promotion agencies, government officials, students and all others concerned with the export trade. The publisher and editors are thankful to S/Shri Vimal Vahan Jain, Dr. Karunesh Singhal and Narinder Kumar Jain for their valuable suggestions from time to time. Though every care has been taken to incorporate authentic information yet some errors might have crept in inadvertently. Kindly bring such errors to the notice of publisher notwithstanding that the publisher is not legally or morally responsible for any error or omission. Suggestions for improvement of future edition are, however, welcome, which may kindly be sent in writing only.

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Alphabetical Arrangement of Chapters

Chapter Name 100% Export Oriented, STP/EHTP and SEZ Units Accounting for Export Transactions Agricultural Export Zones Appointing Sales Agents Abroad and Role of Buyers Agents in India Business and Economic Laws Cargo Insurance and Claims Procedure Central Excise Rules for Exports Commercial Relations and Trade Agreements Counter-Trade Arrangements (Escrow Accounts) Customs Clearance of Export Cargo (By Ship, Air, Road, Post and Courier) Declaration of Exports on GR/PP/SDF/SOFTEX Forms Diamond, Gem & Jewellery Export Promotion Schemes Dictionary of Important Terms used in International Trade Duty Drawback on Goods Exported Duty Entitlement Pass Book Scheme Exim Bank Finance Export Business Correspondence & Sending/Exporting Samples & Exhibits Export Costing and Pricing Export Financing Export Incentives : Income Tax Exemptions/Deductions Export Incentives : Sales Tax Exemption and Reimbursement of CST to 100% EOU/ STP/EHTP and SEZ Units Export Incentives Relating to Import Facilitation and Import Licences Export Promotion Agencies Export Trends and Prospects in India Export/Trading/Star Trading and Super Star Trading Houses Export of Services Financial Assistance for Marine Products Exports Financial Assistance Scheme for Agricultural, Horticultural and Meat Exports Foreign Exchange Regulations & Facilities Concerning Exports Forfaiting Finance (A New Financing Option for Indian Exporter) Garment Export Entitlement Policy 2000-2004 Guidelines for International Business Negotiation How to Avoid Foreign Exchange Risk? How to Ship the Goods? Incentives for Deemed Exports Chapter No. 21 60 47 11 6 33 32 2 27 38 34 20 61 48 49 25 13 9 24 52 51 43 59 1 45 46 57 56 41 26 19 8 28 37 44 Page No. 428-433 1184 1009 195-204 117-121 670-685 645-669 57-74 533-534 780-940 686-705 384-427 1185-1216 1010-1027 1028-1053 505-527 217-229 183-189 480-504 1088-1096 1080-1096 979-997 1137-1183 1-56 1002-1004 1005-1008 1125-1129 1115-1124 958-972 528-532 349-383 177-182 535-551 749-779 998-1001

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Contents Alphabetical Arrangement of Chapters Chapter No. 58 10 42 53 55 31 50 14 40 17 30 22 12 7 35 15 18 29 16 23 54 36 39 3 5 4 Page No. 1130-1136 190-194 973-978 1097-1105 1110-1114 620-644 1054-1079 230-249 948-957 287-328 594-619 434-469 205-216 122-176 706-735 250-255 329-348 552-593 256-286 470-479 1106-1109 736-748 941-947 75-89 111-116 90-110

Chapter Name Incentives to Small & Medium Exporters Indentifying and Contacting Prospective Buyers Indian Joint Ventures & Wholly Owned Subsidiaries Abroad

Inland Transport Assistance Scheme for Export of Agricultural Products & Processed Food Items Jute External Marketing Assistance Labelling, Marking, Packaging and Packing of Export Consignments Marketing Development Assistance (MDA) & Market Access Initiative (MAI) Modern Modes of Communication of Information and Interchange of Documentation Negotiation of Documents under Letter of Credit New Export Policy & Procedures 2002-07 Obtaining Certificate of Origin/GSP Certificate Obtaining Export Credit Limit From ECGC Participating in Trade Fairs/Exhibitions Abroad Preliminary Knowledge about Exporting (What, Where and How to Export?) Preparing/Obtaining Export Documents Processing of an Export Order & Entering into Export Contract Project Exports (Exports of Turnkey Civil Construction, Consultancy and Technical Services) Quality Control, Preshipment Inspection and ISO-9000/BIS 14000 Registration of Exporters Role of Banks in Export Business, FEDAI Rules and Schedule of Charges Spices Export Promotion Schemes Standardised Preshipment Export Documents Tendering Documents to the Bank for Purchase/Collection/Negotiation under Letter of Credit Trade Barriers in International Trade & International Trade Conference What Form of Business Organisation you should adopt? World Trade Organisation (WTO) and Anti-Dumping

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Alphabetical Arrangement of Chapters Index of Documents, Applications, Forms, Certificates, Proformae, Specimen Letters etc. given in the Book Index of Export Promotion and Facilitation Organisations/Associations etc. given in the Book Subject Index CHAPTER 1 EXPORT TRENDS AND PROSPECTS IN INDIA Russia North America Free Trade Agreement (NAFTA) Indo-Latin American Trade The West Asia and North Africa (WANA) Region Trade between India and Sub-Saharan African Countries CHAPTER 3 TRADE BARRIERS IN INTERNATIONAL TRADE & INTERNATIONAL TRADE CONFERENCES 64 65 68 70 72

1-56

Trends in Exports 2 Details of Indias Foreign Trade 5 Commodity Trends 5 Export of Agricultural Products 7 Horticulture and Floriculture Products, Fruits and Vegetables, Processed Fruits and Juices and other Miscellaneous Products 9 Marine Products 13 15x15 Product Matrix of Indias Export 16 Overseas Projects 22 Export Promotion Measures 23 Measures Announced in the Exim Policy for 2003-04 24 Measures Announced in the Exim Policy for 2002-03 27 Central Assistance to States for Developing Export Infrastructure (ASIDE) and Other Allied Activities 31 Export Enhancement and Export Studies Market Access Initiative 32 Trade Facilitation 33 Trade Finance 33 Focus-CIS 34 Focus : Africa 40 Software Exports 51 CHAPTER 2

75-89 75 75 75 76 76 77 77 78 80 81 81 83 84 84 84 86

Trade Barriers Tariff Barriers Non-Tariff Barriers International Trade Conferences World Trade Organisation (WTO) Global System of Trade Preferences (GSTP) SAARC Preferential Trading Arrangement (SAPTA) United Nations Conference on Trade and Development (UNCTAD) Common Fund for Commodities BIMST-EC SAARC Indo-Sri Lanka Free Trade Agreement Bangkok Agreement ASEAN-India Economic Co-Operation Generalised System of Preferences (GSP) Questions and Answers on Quantitative Restrictions CHAPTER 4

COMMERCIAL RELATIONS AND TRADE AGREEMENTS South Asia and SAARC Afghanistan Bangladesh Bhutan Maldives Nepal Pakistan Sri Lanka SAARC North-East Asia South East Asia Indo-Europe Trade

57-74 57 57 58 58 58 58 59 59 60 60 61 62

WORLD TRADE ORGANISATION (WTO) AND ANTI-DUMPING

90-110 90 90 90 90 90 90 91 92 94

World Trade Organisation Objectives Membership Functions of WTO WTO Rules General Agreement on Tariffs and Trade (GATT) 1994 Agreements on Agricultural Questions and Answers : Trade in Agriculture Uruguay Round and After Agreement on Technical Barriers to Trade (TBT)

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Agreement on Sanitary and Phytosanitary Measures (SPS) 95 General Agreement on Trade in Services (GATS) 95 Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) 96 Outcome of Fourth Ministerial Conference of WTO 97 Work Programme 98 Status of Negotiations at Various WTO Bodies 98 Transparency & Interaction with Stakeholders 101 Trade Policy Review Mechanism under the WTO 101 Impact of World Trade Agreements on Indian Trade 102 The WTO Secretariat 102 Safeguard Measures 104 Trade Policy Review Mechanism 105 Anti-Dumping 105 Anti-Dumping Procedures in the US 105 Anti-Dumping Procedures in the EU 106 Anti-Dumping Legislation in India and the Customs Tariff (Amendment) Act, 1994 106 Guide to Anti-Dumping Investigations 107 CHAPTER 5

WHAT FORM OF BUSINESS ORGANISATION YOU SHOULD ADOPT? 111-116 Choice of the Form of Business Establishment Sole Proprietorship Partnership Firm Company Final Choice Other Steps in Formation of Business Appendix 5.I : List of Authorised Dealers in Foreign Exchange CHAPTER 6 BUSINESS AND ECONOMIC LAWS 117-121 111 111 111 113 114 114 116

Industries (Development and Regulations) Act, 1951 117 Central Excises Act, 1944 117 Foreign Collaboration/Investment 118 Customs Act, 1962 118 Export and Import Policy 119 Foreign Exchange Management Act, 1999 (FEMA) 119 Labour Laws 121 CHAPTER 7

PRELIMINARY KNOWLEDGE ABOUT EXPORTING (WHAT, WHERE & HOW TO EXPORT?)

122-176

Advantages of Exporting 122 Risks of Expanding into Domestic or Foreign Markets 122 Risks Unique to Exporting 122

Understanding Export 122 Preliminaries 122 Readiness to Cope with Pressures 122 Firm Determination 122 Objectives : What, Where and How? 122 Top Management Commitment 123 Core Elements of Business Plan for Export 124 Functions Involved in Export Process 124 What to Export? 125 Sources of Information and Statistics on Foreign Markets 125 Obtaining Information regarding Specific Commodities 125 From Where to obtain Market Reports on Specific Products 126 Where to Export ? 126 Factors for Assessing Market 127 How to Assess a Country 128 To Whom to Export ? 129 Getting Addresses of the Overseas Buyers 129 Internet Sources 129 Export Marketing Website 130 World Directories 131 Regional Directories 131 Country Directories 131 Journals/Periodicals 131 Status Report of Overseas Buyers from ECGC, Indian Banks and ITPO 132 Know Your Market 132 Product Requirement 134 Obtaining Market Information through Internet134 International Product Policy and Planning 135 Standardisation vs. Adaptation 136 Product Presentation 136 Branding 136 Product Warranty and Service 136 International Marketing Research 137 Procedures of International Marketing Research 137 Techniques of International Marketing Research 137 Need for more information 137 How to Export ? 138 Exports through Export Consortia 138 Exports through Canalising Agencies 138 Indirect Exporting 138 Direct Export Selling 138 Overseas Sales Agent 138 Sales/Distribution Channels in Different Markets 139 Financing International Marketing 139 Guidelines for Negotiation with Buyers 141 Golden Rules for Successful Exporting 141 Sell the know-how/products 141 Test marketing of products 142 Initial Attack 142 Attitudes 142 Research 142

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Why Export Import Business Fail? 143 Hints for New Exporters-for Marketing 143 The Ten Commandments for Exporters 143 Appendix 7.I : Sources of Information 144 Appendix 7.II : List of Chambers of Commerce & Trade Associations in India and Abroad 149 Appendix 7.III : Some Well Known Credit Information Agencies Abroad 160 Appendix 7.IV : Trade Information Centres 162 Appendix 7.V : Import Promotion Offices and Similar Organisations Abroad 164 Appendix 7.VI : World Trade Centres 165 Appendix 7.VII : Export-Import Organisations Abroad 168 CHAPTER 8 GUIDELINES FOR INTERNATIONAL BUSINESS NEGOTIATION International Business Negotiation Stages of Negotiations Negotiating Plan Points to Remember Negotiating Strategies Market Research Phases of Negotiations Pre-negotiation Phase Negotiations Phase Price Package Hints for a Perfect Price List Post-negotiation Phase Key Negotiating Points Negotiation What do buyers look for when making a buying decision? CHAPTER 9 EXPORT COSTING AND PRICING Costs Associated with Exporting Product Pricing Vs Costing Export Price Special Factors for Export Pricing Factors that Increase Price of Export Products Factors that Reduce Price of Export Product Floor Prices (Minimum Export Prices) Export Prices Segments Ascertaining Exact Benefits from Export Assistance Schemes How to Determine whether the Price Quoted is Competitive Export Costing Sheet Export/Import Costing Sheet Price Quotations Coding of Prices 183-189 183 184 184 184 184 184 184 185 185 185 186 186 188 189

CHAPTER 10 IDENTIFYING AND CONTACTING PROSPECTIVE BUYERS

190-194 190 190 191 191 192 192 193

Identification Business Correspondence Generating Inquiries Making offers to obtain Confirmed Orders International Marketing Communications Advertising Steps in Organising Buyers-Sellers Meetings Advertise in International Newspapers, Magazines and Create your Home Page on the Internet AIDA Technique CHAPTER 11

194 194

177-182 177 177 177 177 178 178 179 179 179 180 180 180 181 181 182

APPOINTING SALES AGENTS ABROAD AND ROLE OF BUYERS AGENTS IN INDIA

195-204 195 195 195 196 197 198 199 203 203 203 203 203 203 203 203 203 203 203 204 204 204

Appointing Sales Agents Abroad Necessity for Appointment Guidelines for Appointment Checklist for Choosing Agent Approaching an Agent Specimen Agency Agreement Selling through Agents : The law in Middle East Market Rate of Commission Declaration on GR/PP/SOFTEX Forms No Objection Certificate Shipment Agents' Entitlement Clean Negotiation Commission on Canalised Items Project Exports/Joint Ventures/Exports Finance under Lines of Credit Remittance/Deduction Buyers Agents in India Getting Business through Buying Houses Located in India Advantages of Working through Buying Houses Pre-requisites for Getting Business through Buying Houses Selecting the Buying Houses CHAPTER 12

PARTICIPATING IN TRADE FAIRS/ EXHIBITIONS ABROAD

205-216

Participation in International Trade Fairs 205 Prelude 205 How to make the most of participation in Fairs 205 Sequence of Activities for Participating Organisation207

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Participation in Trade Fairs : Activity Coordination Chart 207 Common Mistakes 208 Tips for Attending Trade Fairs 209 Procedure for Participation 210 Participation Charges 210 Minimum Space 210 Facilities given by ITPO 210 Despatch of Consignments 211 Documentation 211 Labelling of Exhibits and Captions 211 Packing/Packaging of Exhibits 211 Marking 211 Excise Duty 212 Pre-shipment Inspection 212 Return of Exhibits 212 Collection of Returned Exhibits 212 Sold Exhibits 212 Re-import of Exhibits from Abroad-Duty free Re-import 212 Demurrage 212 Operation of the Booths 212 Disputes 213 RBI Regulation regarding Participation in Trade fairs 213 EEFC Account Holders 213 MDA Grant 213 Import/Export of Exhibits allowed without a Licence214 Export Through Exhibitions/Export Promotion Tours/Export of Branded Jewellery 214 Important Trade Fairs/Exhibitions 215 Appendix 12.I : Application for Participation in Fairs and Exhibitions Abroad (ITPO) 216 CHAPTER 13 EXPORT BUSINESS CORRESPONDENCE & SENDING/EXPORTING SAMPLES & EXHIBITS Export Business Correspondence Business Letters/Correspondence Skills of Correspondence Letterhead Envelope Language Salutations Politeness Printed Price Lists Printed Product Brochures Precautions while writing to a Potential buyer for the First Time Letter to Trade Missions and Agencies Sources Approaching International Organisations Be Precise and Specific Specimen Business Letters

217-229 217 217 217 217 217 217 217 218 218 218 218 218 219 219 219 219

Sending/Exporting Samples & Exhibits 219 Characteristics of Good Samples 219 Commercial Samples vs. Gift Parcels 220 Export of Samples 220 Export of Garment Samples 220 Foreign Exchange Formalities for Export of Samples 220 Limits on Weight 221 Limits on Dimensions 221 Packing 221 Booking at Post Offices 221 Export of Free Samples by Air/Sea but other than by Post 221 Trade Samples against Payment 222 Samples for Testing Abroad 222 Personal Carriage of Samples 222 Gems & Jewellery Samples 222 Export of Samples by EOU/EPZ/EHTP/STP Units 222 Export of Samples by SEZ Units 222 Specimen of Introductory Letter to Importers Abroad 223 Specimen of Acknowledgement to a Letter from a Foreign Buyer 223 Specimen of Acknowledgement to a Letter from a Foreign Buyer and Providing Quotation & Samples 224 Specimen of Acknowledging Indent and Sending Proforma Invoice 224 Specimen Letter asking Quotations from Manufacturers 225 Specimen of Requisition Letter for Opening of a Letter of Credit (L.C) 225 Specimen Letter for Making Arrangements with the Shipping Company 225 Specimen Letter for Arranging Insurance of Goods 226 Specimen Letter to a Prospective Agent/Distributor Abroad 226 Specimen Letter to a Trade Representative 227 Sample Letter to a Foreign Trade Representative Stationed in the Exporter's Country 227 Specimen Letter to an Import Promotion Institution Abroad 228 Appendix 13.I : Forms of Addresses in Four Languages 229 Forms of Letter Endings in Four Languages 229 CHAPTER 14 MODERN MODES OF COMMUNICATION OF INFORMATION AND INTERCHANGE OF DOCUMENTATION (Multimedia, Internet, E-Mail & EDI)

230-249 230 230 230 230 230

Multimedia : Effective Tool for Export Marketing Export Promotion by Means of Multimedia Considerations for Choosing Carriers Diskettes CD-Roms

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Digital Versatile Disk (DVD) 230 Hard Disk 231 Internet 231 Combination of Several (Multi) Media Carriers231 Vital to Keep Up with IT 231 New Media and Fairs & Exhibitions 231 Searching on the Internet 231 Multimedia for Exhibitors 232 Hints for an Effective Presentation 232 Virtual Fairs & Exhibitions 232 Advantages 232 Disadvantages 232 Internet 233 Introduction 233 How Internet Helps Exporters 234 Use of Internet by the Exporters 234 Internet Services Features 235 Internet Jargon Guide 236 How to Design useful Website? 236 Important Tips on Web Hosting 237 Selecting a PC 237 How to Protect your PC? 237 Use of Printers 237 How to use Internet for Data Retrieving? 237 Use of Message Boards 238 How to use your E-mail Services Economically? 238 Important Websites & Bulletin Boards for Exporters 238 Trade Bulletin Boards 238 Sending Foreign Inquiries through Internet 239 Electronic Mail (E-Mail) 241 Electronic Data Interchange (EDI) 241 Computerised Business Communication (EDI) and Product Identification (Bar Code) Systems 242 Implementation of EDI by Directorate General of Foreign Trade 243 Introduction of Computers in DGFT 243 EDI Scenario 244 Advantages 244 Business Process Re-engineering for Automation 245 Computerisation Complete in Various Activity areas of DGFT, New Work Allocation of Sections and Section Codes 245 Section-wise Distribution of Work and their Codes in DGFT 245 E-Commerce for Exporters 247 RBIs Electronic Funds Transfer System 248 CHAPTER 15

Scrutiny 250 Confirmation 250 Clarification 251 Instruction to Factory/Supplier 251 Entering into Export Contract 251 Necessity for a Contract 251 Drafting of Commercial Contracts 251 Elements of Export Contracts 251 Standard Contract Forms 253 Specimen Contract Form 253 Use of Arbitration Clause in Business Contracts 253 Arbitration and Conciliation Act, 1996 253 Inclusion of Suitable Arbitration Clause in the International Contract 254 Role of Arbitral Institutions under New Arbitration and Conciliation Law 254 Network of ICA Service Agreements with Foreign Arbitral Organisations 254 Utilization of the Services of the Indian Council of Arbitration in resolving Commercial Disputes 254 Appendix 15.I : Brief Specimen Contract Form for Sale Purchase Transactions, Exports and Imports 255 CHAPTER 16 REGISTRATION OF EXPORTERS 256-286

PROCESSING OF AN EXPORT ORDER & ENTERING INTO EXPORT CONTRACT Processing of an Export Order Nature Acknowledgement

250-255 250 250 250

Registration with Regional Licensing Authorities (Obtaining IEC Number) 256 Necessity for obtaining IEC Number 256 Persons exempted from obtaining IEC Number 256 Procedure for obtaining IEC 258 Profile of Importer/Exporter 258 Issue of IEC No. and Statement 258 Self Addressed Stamped Envelope 258 Validity of IEC Number 258 Duplicate Copy of IEC No. 258 Surrender of IEC Number 258 Suspension and Cancellation of ImporterExporter Code Number 258 Mandatory Returns 259 IEC Trade Return Format 259 Registration with Export Promotion Councils, etc. 260 Necessity for Registration 260 Authorities issuing RCMC 260 Membership Fee 261 Application for Registration 261 Issue of RCMC 261 Validity of RCMC 261 Furnishing of Returns 261 Intimation regarding Change in Constitution 261 De-registration 261 Appeal against De-registration 262 Directives of DGFT 262 Registration with Sales Tax Authorities 262 Necessity for Registration 262 General Procedure for Registration 262

Contents

Registration Procedure in Delhi 262 Registration under Tatkal Scheme 264 Provisioinal Registration 264 Voluntary Registration 264 Registration under the Central Sales Tax Act 264 Procedure for Claiming Exemption from Sales Tax 265 Appendix 16.I : List of Licensing Authorities and their Jurisdiction 266 Appendix 16.II : Application Form for Allotment of Importer/Exporter Code (IEC) Number and Modification in Particulars of an Existing IEC No. Holder 271 Appendix 16.III : Profile of Exporter/Importer 274 Appendix 16.IV : Format of Importer-Exporter Code Number 275 Appendix 16.V : List of Export Promotion Councils/ Commodity Board 276 Appendix 16.VI : Form of Application for Registrationcum-Membership with Export Promotion Councils 285 Appendix 16.VII : Form of Registration-cum-Membership Certificate 286 CHAPTER 17 NEW EXPORT POLICY & PROCEDURES 2002-07

287- 328

Highlights of the Exim Policy, 2002-07 as announced on 30.3.2003 287 Relevant Text of Export Policy & Procedures 2002-07 as amended upto 15th December 2003 290 Exports and Imports free unless regulated 290 Compliance with Laws 290 Interpretation of Policy 290 Procedure 290 Exemption from Policy/Procedure 290 Principles of Restriction 290 Restricted Goods 290 Terms and Conditions of a Licence/Certificate/ Permission 290 Licence/Certificate/Permission not a Right 291 Penalty 291 State Trading 291 Importer-Exporter Code Number 291 Trade with Neighbouring Countries 291 Transit Facility 291 Trade with Russia under Debt-Repayment Agreement 291 Import on Export basis 291 Execution of BG/LUT 291 Free Exports 291 Export of Samples 292 Export of Passenger Baggage 292 Export of Gifts 292 Export of Spares 292

Third party Exports 292 Export of Imported Goods 292 Export of Replacement Goods 292 Export of Repaired Goods 292 Private Bonded Warehouses for Exports 292 Denomination of Export Contracts 292 Realisation of Export Proceeds 292 Free Movement of Export Goods 292 No seizure of Stock 292 Export Promotion Council 293 Registration-cum-Membership Certificate 293 Central Assistance to States 293 Market Access Initiative 293 Towns of Export Excellence 293 Special Focus on Cottage and Handicraft Sector 294 Agri Export Zones (AEZ) 294 Brand Promotion and Quality 294 Test Houses 294 Quality Complaints/Disputes 294 Trade disputes affecting trade relations 294 Status Certificate 294 Service Exports 295 Electronic Data Interchange 295 Thrust sector 295 Jobbing, Repairing etc. for re-export 295 Countries of Imports/Exports 295 Application Fee 295 Territorial Jurisdiction of Licensing Authorities295 Filing of Application 296 Profile of Importer/Exporter 296 Self Addressed Stamped Envelope 296 Application for Import and Export of Restricted Items 296 Revalidation of Import/Export Licence/ Certificate/Permissions 296 Duplicate Copies of Export-Import Licences/ Certificate/Permissions/CCPs 296 Identity Cards 297 Interviews with Authorised Officers 297 Export of Items Reserved for SSI Sector 297 Warehousing Facility 297 Execution of BG/Legal Undertaking 297 Certificate of Origin 298 Preferential 298 Non-Preferential 299 Automatic Licence/Certificate/Permission 299 Submission of Certified Copies of Documents 299 Advance Payment 299 Export by Post 299 Direct Negotiation of Export Documents 300 Payment through ECGC cover 300 Import/Export of Samples 300 Import/Export through Courier Service 300 Exhibits Required for National and International Exhibitions or Fairs and Demonstrations 300 EXIM Facilitation Committee 300

Contents Application for Grant of Export Licence/ Certificate/Permission 300 Export of Items under State Trading Regime (STR) 301 Exports of Samples/Exhibits 301 Free of Cost Exports 301 Gifts/Spares/Replacement Goods 301 Furnishing of Returns in Respect of Exports in Non Physical form 301 Conversion from One Scheme to Another 301 Offsetting of Export Proceeds 301 Quality Certification 301 Electronic Data Interchange 302 Eligibility 302 Procedure 302 Benefits 302 Appendix 17.I : Export Policy as per ITC (HS) Classification of Import Export Items 303 Appendix 17.II : Text of Appendix 1 of Schedule 2 of ITC (HS) Classification of Import Export Items 2002-07 310 Appendix 17.III : Text of Appendix 2 of Schedule 2 of ITC (HS) Classification of Import Export Items 2002-07 311 Appendix 17.IV : Text of Appendix 3 of Schedule 2 of ITC (HS) Classification of Import Export Items 2002-07 312 Appendix 17.V : Text of Appendix 4 of Schedule 2 of ITC (HS) Classification of Import Export Items 2002-07 319 Appendix 17.VI : Text of Appendix 5 of Schedule 2 of ITC (HS) Classification of Import Export Items 2002-07 320 Appendix 17.VII : Application Form for Grant of Export Licence for items mentioned as restricted for exports in Schedule II of ITC (HS) Classifications of Export and Imports Items 322 Appendix 17.VIII : Application Form for Grant of Export Licence for Export of Special Chemicals, Organisms, Materials, Equipments and Technologies (SCOMET) items mentined as Restricted for Export in Appendix 3 Schedule 2 of ITC (HS) Classifications of Export and Imports Items 323 Appendix 17.IX : Form of Affidavit for obtaining Duplicate copy of Licences which are Lost or Misplaced 326 Appendix 17.X : Form of Application for Identity Card 326 Appendix 17.XI : Form of Application for Revalidation of Licence/Extension in Export Obligation Period of a Licence 327 CHAPTER 18 PROJECT EXPORTS (EXPORTS OF TURNKEY/CIVIL CONSTRUCTION, CONSULTANCY AND TECHNICAL SERVICES ) Introduction Performance of Project Exports

xi Export Performance during April-October, 2002 329 Recent Changes made in RBI Instructions regarding Project and Service Exports 330 Guidelines for Approval 332 PART AGENERAL Constitution of Working Group 333 Criteria for Consideration of Proposals by Working Group 333 Procedure for Clearance of Proposals 333 Declaration of the Exports and Handling of GR/ SDF/PP Forms 334 PART BPROJECT EXPORTS Extension of Deferred Payment Terms 334 Nature of Credit 334 Eligible Goods 335 Period of Deferred Credit 335 Conditions necessary for Clearance of proposals by Authorised Dealers/Exim Bank 335 Post-award Clearance of Proposals 335 Appointment of Sub-contractors 336 Follow-up of Turnkey/Construction Contracts 337 Requirements relating to Completed Projects 337 Buyers Credit Scheme of Exim Bank 337 PART CEXPORT OF SERVICES General 338 Service Contracts Requiring Authorised Dealers/ Exim Banks/Working Groups Approval 338 Pre-requisites for Consideration of Proposals of Service Contracts Involving Cash Payment Terms 339 Pre-requisites for consideration of proposals of Service Contracts on DP terms 339 Clearance of Proposals at Post-award Stages 339 Follow-up of Service Contracts 340 Requirements relating to Completed Projects 340 PART D OTHER MATTERS CONNECTED WITH PROJECT EXPORTS AND SERVICE EXPORTS Foreign Currency Accounts/Site Offices Abroad/ Agency Commission/Financial Requirements 340 Third Country Purchases 341 Inter-project transfer of funds 341 Construction etc. Equipment 341 Import of Equipment/Machinery/Motor Vehicles Purchased Abroad 342 Foreign Travel in connection with Execution of Contracts Abroad 342 Bid Bonds and Guarantees against Project Exports 342 Guarantees for Borrowings Abroad 342 Project Exports to Nepal/Bhutan 342 Standard Conditions to be Stipulated by Exim Bank/ Authorised Dealers for Various Facilities at the time of Conveying Post-Award Approval for Projects/ Service Contracts 343 Quarterly statement showing value of shipments effected and advance/deferred instalments received in respect of exports under Deferred Payment Arrangements 346 Conditions Subject to which Remittance of Agency Commission in Respect of Pure Supply Contracts may be effected by Authorised Dealers 346

329-348 329 329

xii

Contents

Appendix 18.I : List of Goods in respect of which Commercial Export Credit may be offered by Indian Exporter CHAPTER 19 GARMENT EXPORT ENTITLEMENT POLICY 2000-2004

CHAPTER 20 347 DIAMOND, GEM & JEWELLERY EXPORT PROMOTION SCHEMES 349-383

384-427

Distribution of Annual levels 349 Allocation of Quantities Reserved for Woollen and Acrylic Knitwear 349 Procedure for Allotment under Different Systems 349 Slow Moving Items 353 Allocation of Special Quantities Reserved for Handloom Garments for U.S.A. 354 Letter of Credit 354 Validity Period for Export Certification on Shipping Documents 354 Revalidation of Entitlements 354 Earnest Money Deposits 355 Proof of Shipment 356 Allocation of Items not subject to Specific Limits in USA and Canada 356 Conversion of Adult Garments into Children Garments for Export to EU and Canada 357 Short Realisation 357 Procedure for Appeals against Forfeiture of BG/EMD 357 Guidelines for Obtaining Release of Held-up Consignments 358 Procedure to deal with Quota Malpractices by Exporters 358 Enforcement Appeallate Committee with the following composition will hear appeals against the decision of the Enforcement Committee 359 Export of Samples 360 Council Charges 360 Clearance by Customs 361 Export Certificate/Certificate of Origin and Visa 361 Handloom Certificates 362 Exports to Turkey 362 Export of Items Outside Bilateral Agreement (OBA) 362 End of the Year Shipment 362 Supervisory Role of the Textile Commissioner 362 Coordination Committee 362 Right of the Government to make Amendment 362 General Conditions 362 Appendix 19.I : Text of Garment Export Entitlement Policy 2000-2004 364 Appendix 19.II : Addresses of the Apparel Export Promotion Council and Agencies connected with Garments & Textiles 372 Appendix 19.III : On-Line Electronic Transfer Scheme 374 Appendix 19.IV : List of Items under Restraint to Quota Countries 382

Replenishment Licences for Gem & Jewellery Exporters 384 Diamond Imprest Licences 384 Export of Cut & Polished Diamonds for Certification/ Grading 385 Schemes for Gold/Silver/Platinum Jewellery 386 Export against Supply by Foreign Buyer 389 Export through Exhibitions/Export Promotion Tours/ Export of Branded Jewellery 390 Export against Supply by Nominated Agencies 391 Export against Advance Licence 392 Personal Carriage of Export/Import Parcels 392 Private/Public Bonded Warehouse 393 Diamond & Jewellery Dollar Accounts 393 Replenishment License for Import of Consumables 393 Text of Delhi Customs Public Notices on Diamond, Gem & Jewellery Export Promotion Schemes 393 Gold/Silver/Platinum, Alloys, Findings and Mountings of Gold/Silver/Platinum and Plain Semi-Finished Gold/ Silver/Platinum Jewellery Imported by Nominated Agencies or Status-Holders under the scheme for export against supply by Foreign Buyer 405 Silver/Gold/Platinum imported as Replenishment for Export through Exhibitions/Export Promotion Tours/ Export of Branded Jewellery or Imported for Export against Supply by Nominated Agencies 406 Ministry of Finance Revised Instructions regarding Import of Gold/Silver/Platinum by the Nominated Agency under various gold, silver and platinum jewellery export promotion schemes 407 Import of Gold, Silver and Platinum by the Nominated agencies under various Gold, Silver and Platinum Jewellery Export Promotion Schemes 408 Gem and Jewellery Export Promotion Schemes Changes made in the New Exim Policy 2002-07 409 Export Against Supply by Foreign Buyer SchemeBank Guarantee Amount Clarifications 411 Gems, Precious and Semi-Precious Stones, etc. Imports under Replenishment Licences issued under Exim Policy 1997-2002 Clarification for Benefit of Notification No. 60/2002-Cus. 411 Silver, Import of Export against supply by Foreign Buyer Bank Guarantee to be calculated at the rate of Duty Applicable to Nominated Agencies 411 Relevant Extracts from the Customs Notification No. 52/2003 Dt. 31.3.2003 regarding Gem & Jewellery Units 412 Ministry of Finance Instructions regarding Setting up of Private/Public Bonded Warehouses for Import and Re-Export of Cut and Polished/Coloured Gem Stones, Rough Diamonds, etc. 414

Contents

xiii

Appendix 20.I : Replenishment for Gem & Jewellery 415 Appendix 20.II : Application Form for Replenishment Against Exports 417 Appendix 20.IIA : Form of Application for Diamond Imprest Licences 419 Appendix 20.III : Form for Bank Guarantee 420 Appendix 20.IV : Form of Legal Agreement/Undertaking 421 Appendix 20.V : Replenishment Scale for Gem Rep Licence 423 Appendix 20.VI : Bank Certificate of Export and Realisation 424 Appendix 20.VII : Certificate for Claiming Replenishment of Gold/Silver Against Jewellery Sold at Exhibitions Abroad 425 Appendix 20.VIII : Jurisdiction of Licensing Authority and List of Nominated Agencies for the purpose of Gem and Jewellery Export Promotion Scheme 426 CHAPTER 21 100% EXPORT ORIENTED/STP/EHTP AND SEZ UNITS

428-433 428 429 431 433

Export Oriented Unit Scheme Software Technology Parks/Electronic Hardware Technology Parks Special Economic Zones Scheme 100% Export Oriented units for Gold/Silver and Platinum Jewellery and Articles CHAPTER 22

Simplified Procedure for Submission of Shipping Declarations 450 Premium Rates 450 Procedure for Payment of Premium 450 Premium paid on Projected turnover and Premium Payable on actual turnover 450 Specific Policies 451 Buyerwise PoliciesShort Term (BPST) 456 Guarantees to Bank 459 Packing Credit Guarantee 459 Export Production Finance Guarantee 460 Post-Shipment Export Credit Guarantee 460 Export Finance Guarantee 460 Export Performance Guarantee 460 Export Finance (Overseas Lending) Guarantee 461 Special Schemes 461 Transfer Guarantee 461 Overseas Investment Insurance 462 Exchange Fluctuation Risk Cover 462 List of ECGC Offices 463 Appendix 22.I : Proposal for a Shipment (Comprehensive Risks) Policy/Small Exporters Policy 466 Appendix 22.II : Credit Limit Application 467 Appendix 22.III : List of Debt Collecting Agencies 469 CHAPTER 23 ROLE OF BANKS IN EXPORT BUSINESS, FEDAI RULES AND SCHEDULE OF CHARGES

470-479

OBTAINING EXPORT CREDIT LIMIT FROM ECGC

434-469

Payment Risks 434 ECGC Introduces Major Reforms in Credit Insurance Policies 434 Liberalisation of ECGCs Country Underwriting Policy 435 Risk Management Systems in Banks Guidelines on Country Risk Management 437 ECGC Provides on-Line Connectivity to ExporterClients 439 Allotment of D-U-N-S Number Free of Cost to Policy holders of ECGC 439 Covers issued by ECGC 440 Standard Policies 440 ECGCs Small Exporters Policy 445 Points to be Checked on Receipt of a Policy 446 Steps to be taken after Obtaining the Policy 447 Exports to Restricted Cover Countries 448 No Claim Bonus 449 Check List on ECGC 449 Turnover Policies 450 Difference between Turnover Policy and Standard Policy 450

Introduction 470 Financial Services 470 Handling the Export Documents 470 Export Bills for Collection 470 Export Bills under Confirmed Irrevocable Letters of Credit 471 Non-Financial Services 472 Connections 472 Client Information 472 Counselling Services 472 Foreign Exchange Management Facilities 472 Sourcing 473 Clearing House Facilities 473 Guarantees 473 Currency for Invoicing 473 Advising and Confirming Export Letters of Credit 473 Exchange Rates 473 Exchange Risk cover 474 FEDAI Rules on Export Transactions and Charges 474 CHAPTER 24

EXPORT FINANCING Assessing the Financial Needs Bank Finance

480- 504 480 480

xiv

Contents

Special Features of Export Credit 481 Pre-Shipment Credit in Rupee 482 Rupee Pre-Shipment Credit/Packing Credit 482 Rupee Pre-Shipment Credit to Specific Sectors/ Segments 484 Post-shipment Finance in Rupee 487 Rupee Post-Shipment Export Credit 487 Post-shipment Advances against Duty Drawback Entitlements 489 ECGC Whole Turnover Post-shipment Guarantee Scheme 489 Negotiation of Export Documents drawn under Foreign L/Cs 490 Purchase of Export Bills drawn under Confirmed Contracts 490 Advances against Export Bills Sent on Collection 490 Advances against Claims of Duty Drawback 490 Treatment for Overdue Foreign Currency Bills 490 Financing of Project Exports 491 Interest on Export Credit 491 Deemed Exports Concessive Rupee Export Credit495 Special Financial Package or Large Value Exports Rupee Credit Interest Rates 495 Pre-Shipment Export Credit in Foreign Currency 496 Pre-shipment Credit in Foreign Currency (PCFC) 496 Diamond Dollar Account (DDA) Scheme 499 Post-Shipment Export Credit in Foreign Currency 499 Interest on Export Credit (Foreign Currency) 501 Export Credit Customer Service, Procedure and Reporting Requirements 501 CHAPTER 25

Long Term Working Capital Programme for Export Oriented Units 514 Bulk Import Finance Programme (BIF) 514 Import Finance 515 Programme for Financing Research & Development 515 Finance for Export of Computer Software 516 Consultancy and Technology Services Finance Programme 517 Finance for Rupee Expenditure for Project Export Contracts (FREPEC) 518 Suppliers Credit for Deferred Payment Exports 519 Promotional Programmes 519 General Guidelines on Exim Bank's Buyers Lines of Credit 521 Technology Upgradation Fund Scheme for Textile and Jute Industries 522 List of Offices of Exim Bank 526 Appendix 25.1 : Goods Eligible for Finance 527 CHAPTER 26 FORFAITING FINANCE (A NEW FINANCING OPTION FOR INDIAN EXPORTER) 528-532 Definition 528 How Forfaiting works? 528 Role of Exim Bank or Authorised Dealer (A.D.) 528 Forfaiting Costs 528 Customs Public Notice on Forfaiting Discount and Commitment Fees Certification of Net Realisable Value of Exports by Customs 531 Forfaiting by Authorised Dealers 532 Forfaiting Sample Cost Calculation 532 CHAPTER 27 COUNTER-TRADE ARRANGEMENTS (ESCROW ACCOUNTS) Meaning Global Perspectives Counter Trade in India Escrow Accounts Export Finance for Counter-Trade CHAPTER 28 HOW TO AVOID FOREIGN EXCHANGE RISK (EXCHANGE RATES, FORWARD EXCHANGE CONTRACTS, CURRENCY FUTURES & CURRENCY OPTIONS) Terms and Concepts Currencies Rate of Exchange How the Exchange Rates are Quoted and Calculated ?

505-528

EXIM BANK FINANCE

Organisation 505 Exim Bank Finance 505 Financing Programmes 506 Loans to Indian Companies 506 Loans to Foreign Governments, Companies and Financial Institutions 506 Loans to Commercial Banks in India 506 Guaranteeing of Obligations 506 Production Equipment Finance Programme 506 Overseas Investment Finance 507 Equity Investment in Indian Ventures Abroad 508 Asian Countries Investment Partners Programme (ACIP) 509 Export Marketing Finance Programme 509 Export Product Development Programme 510 Programme for Financing Export Vendor Development (EVD) 511 Programme for Export Facilitation 511 Foreign Currency Pre-Shipment Credit (FCPC) 513 Working Capital Term Loan Programme for Export Oriented Units (WCTL) 513

533-534 533 533 533 534 534

535-551 535 535 535 535

Contents

xv

Direct Vs. Indirect Quotation 535 Inter-Bank and Merchant Rates 535 Buying and Selling Rate 536 Spot and Forward Rates 536 Form of Quotation of Spot Rates by Banks 536 Calculation of Rates 537 Setting Exchange Rates 538 Mechanics of Foreign Exchange Operations 538 Foreign Exchange Risk Management 538 Foreign Currency Exposure 538 How to Cover the Foreign Exchange Risk ? 539 Forward Contracts 539 Hedging Translation Exposure/Balance Sheet/ Profit and Loss Figures 540 Check List on Forex Risk Management 540 Minimisation of Exchange Risks by Booking Forward Contracts 541 Exchange Control Regulations 542 Booking of Forward Exchange Contracts 542 Cross Currency Options 542 RBI Clarifications regarding Forward Exchange Contracts 542 Booking of Forward Purchase Contracts 543 Documents required for Booking of Forward Purchase Contract 543 Booking of Forward Sale Contract 544 Extent and Period of Cover 544 Roll-over Forward Cover 544 Cancellation of Forward Contract 544 Substitution of Orders 544 Charges for Early Delivery, Extesion and Cancellation of Forward Contract 544 Legal Contract must for Forex Deals 546 Roll over Forward Contracts 546 Foreign Currency - Rupee Swaps 547 Hedging of Loan Exposures Permitted without Governments/RBIs Prior Approval 547 Option Contracts 547 Necessity for Options 547 Meaning of Option Contract 547 Option Pricing 548 Determinants of Options Value 548 Caps and Bands 548 Types of Currency Options 549 Currency Options and RBI Regulations 549 International Currency Options Market (ICOM) Terms and Guide 550 Internal Control Measures Suggested by FEDAI 550 Cross Currency Options How these are Better over Forward Contracts 550 Instruments of Foreign Currency Options 551 CHAPTER 29

QUALITY CONTROL, PRESHIPMENT INSPECTION AND ISO-9000/BIS 14000

552-593 552 552

Compulsory Preshipment Inspection Exemption from Compulsory Pre-shipment Inspection Procedure

Exemption to ISI Mark/Agmark Units 553 Inspection by Buyer's Agency/Specifications 553 Compulsory Inspection of Textile Goods 553 Simplified Procedure for Authentication of Readymade Garments Samples 553 Textile items exempt from Pre-shipment Scrutiny 554 Voluntary Inspection of Textile Goods 554 Self-certification Okayed for Textile Machinery Exports 555 Compulsory Pre-shipment Quality Inspection for Tea Exports to Russia 555 Revised Quality Assurance System for Fishery Exports 555 New Products Covered under Export (Quality Control and Inspection) Act, 1963 555 Compulsory Quality Control & Pre-shipment Inspection of Honey 556 Guidelines for Exporters under WTOs Preshipment Inspection Programme 556 Types of Pre-Shipment Inspection 556 Consignment to Consignment Inspection 556 In-Process Quality Control 556 Self-Certification Scheme 557 Procedure for Inspection 557 Procedure for Consignment-wise Inspection 557 List of Govt. Export Inspection Agencies 557 In-Process Quality Control Procedure 558 Self-Certification Scheme 559 Comparative Advantages & Disadvantages of Three Systems of Inspection 560 Fumigation 560 International Agencies for Inspection 560 ISO 9000 and Harmonised Standards 561 ISO 9000 Series 561 Answers to Questions about the ISO 9000 Series Standards 562 Equivalent Quality System Standards 563 Quality System Certification by Bureau of Indian Standards 564 Steps for Installation of Quality Management System ISO-9000/IS 14000 Series of Standards 565 How to go for ISO 9000 567 Quality Systems Certification 571 International Certification 571 Benefits of Quality Systems Certification 571 Pre-certification Services of BIS 571 Hazard Analysis Critical Control Point (HACCP) System 571 ECO Labelling 572 Other Important Matters 572 Instruction regarding Black-listing of Exporters of Sub-standard Goods Permanently 572 Institutional Assistance for Quality Management Programmes 573 Govt. Incentives for Brand Promotion and Quality 573 Product Liability : Responsibilities of a Producer 573 Appendix 29.I : List of Commodities covered under the Export (Quality Control & Inspection) Act, 1963 576

xvi Appendix 29.II : List of Commodities under the purview of Export Inpsection Agencies List of Commodities notified under Export (Quality Control and Inspection) Act, 1963 & under the Purview of Inspection by the Directorate of Fruits & Vegetables Preservation Appendix 29.III : Intimation for Inspection Appendix 29.IV : Certificate of Inspection/In-Process Quality Control Appendix 29.V : List of Authorised Agencies to do Fumigation Work Appendix 29.VI : List of Inspection and Certification Agencies Appendix 29.VII : List of IS/ISO 9000 (Series)/ ISO 14000 (Series)/WHOGMP/HACCP/SEI CMM Level II and other Certification Agencies

Contents

583

CHAPTER 31 LABELLING, MARKING, PACKAGING & PACKING OF EXPORT CONSIGNMENTS

586 587 588 589 590

620-644

592

CHAPTER 30 OBTAINING CERTIFICATE OF ORIGIN/ GSP CERTIFICATE

594- 619 594 594 594 594 594 594 594 595 595 596 597 598 598 599 601 601

Preferential Trading Arrangement Necessity Production of True Copy of AWB/BL Issue of Certificates Restrospectively Change of Buyer/Destination Validity Period Postal Consignment Types of Certificates of Origin Prescribed Forms Issue of Certificates of Origin by FIEO Issue of Certificate of Origin by PHD Issue of Certificate of Origin by Assocham Certificate of Origin for Mexico Notes on Completion of GSP Certificate of Origin : Form A Issue of Certificate of Origin under GSP for Eligible Items of Textile Products Requirement of Proof of Shipment Issue of Free Sale and Commerce Certificate for Medical Devices/Equipment etc. Appendix 30.I : List of Agencies Authorised to Issue Certificate of Origin for SAPTA and Bangkok Agreement Appendix 30.II : GSTP Form Appendix 30.III : List of Agencies Authorised to Issue GSP Certification Appendix 30.IIIA : List of Agencies Authorised to Issue Certificates of Origin Non Preferential Appendix 30.IV : GSP Form Appendix 30.V : Application for Certificate of Origin Form B Appendix 30.VI : Form APR Appendix 30.VII : Application for Certificate of Origin Appendix 30.VIII : Certificate of Origin Appendix 30.IX : Indemnity Bond

Meaning and Purpose 620 Labelling for Textiles 620 Textiles Care Labelling Code using Symbols 620 American Care Labelling Amendments 623 European ECO Label for Clothing and Textiles 624 Marking 626 Leading Marks 626 Subsidiary Marks 626 How to Mark Export Consignments? 626 Caution Marks Translated in Leading Languages 627 International Freight Marking Symbols 629 Standardized Mark 630 The Standard Shipping Mark 630 Information Marks 630 Simplified Marking for Different Modes of Transport 631 Methods of Marking 631 Packaging 632 What can Shippers do to Minimise Losses due to Handling Stowage and Transit hazards water Damage and Theft & Pilferage 635 Differing Packaging Regulations in EU Countries 636 Packing 639 How to Pack the Goods for Exports? 640 Protection against Humidity 641 Advice on Packing and Securing Various Goods 641 Packing List 644 Suggestion for Planning Assortment in different Case/Boxes 644 Restriction on Export of Packaged Commodities 644 Bar Coding 644 Bar Coding for Export of Retail Products 644 CHAPTER 32

CENTRAL EXCISE RULES FOR EXPORTS 602 604 605 606 613 615 616 617 618 619

645-669

Export without Payment of Duty 645 General 645 Export to All Countries except Nepal and Bhutan 645 Simplified Export Procedure for Exempted Units 650 Export to Nepal and Bhutan without Payment of Duty 652 Export without Payment of Duty Miscellaneous 656 Manufacture of Export Goods in Bond 657 Export by Advance Licence Holder 659 Export under claim for Rebate 660 Export to all Countries except Nepal and Bhutan 660 Export to Nepal or Bhutan 664

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Special Procedure for Store for Consumption on Board an Aircraft on Foreign Run Miscellaneous Matters relating to Rebate Export under claim for Rebate of Duty on Excisable Material used in the Manufacture of Export Goods Special Procedure for Export of Tea under claim of Rebate CHAPTER 33

666 666

667 669

CARGO INSURANCE AND CLAIMS PROCEDURE

670-685 670 670 670 671 671 671 671 671 672 672 673 673 673 673 673 674 674 674 674 675 677 677 678 681 682 682 682 683 684 684 684 685

Meaning and Purpose Assignment of Marine Cargo Policies Who can Insure ? What are the Special Features of Marine Insurance ? With Whom to Insure ? How to Pay Premium ? Disclosure of Material Facts Duty and Increased Value Insurances Marine-cum-Erection Insurance Insurance Documents Seller's Contingency Insurance Nature and Scope of Cargo Insurance Policy Marine Insurance Contract Parties to the Contract Insured and Insurable Interest Indemnity and Insurable Value Perils and Causa Proxima Scope of Cargo Insurance Policy Kinds of Perils Kinds of Losses Hazards that lead to Losses Cargo Loss at Ports and How it can be Prevented Coverage and Institute Cargo Clauses Duration Clauses War and Strike Exclusion Clause Recoverable Expenses Types of Policies Procedure and Documentation When a Loss Arises Duties of the Insured (Preservation of Recovery Rights) Claims Against Marine Policies The Statutory time Limits for Lodging Notice of Claim and Filing suits Appendix 33.I : Marine Insurance Declaration CHAPTER 34 DECLARATION OF EXPORTS ON GR/PP/SDF/SOFTEX FORMS

Exemption from Furnishing Export Declaration Forms Numbering of Forms Indication of Importer-exporter Code Number Authority to whom Declaration is to be Furnished and the Manner of Dealing with the Declaration Evidence in Support of Declaration Disposal of Copies of Export Documentation Forms Counter signature on PP Forms Terms of Payment Invoicing (Software) Disposal of SOFTEX forms Shut Out Shipments and Short Shipments Consolidation of Air Cargo Exports by Barges/Country Craft/Road Transport Appendix 34.I : Form GR Appendix 34.II : Form SDF Appendix 34.III : Form : PP Appendix 34.IV : SOFTEX Form CHAPTER 35 PREPARING/OBTAINING EXPORT DOCUMENTS

687 687 687 687 688 688 689 689 690 690 690 690 691 695 696 700

706- 735

686-705

The Statutory Basis 686 Furnishing of Export Declarations 686 Declaration as regards Export of Goods & Services 686

Obtaining Documents Connected with Transport of Goods 706 Airway Bill/Air Consignment Note 706 Completion of Air way bill 708 Bill of Lading (B/L) 714 Precautions as to Bill of Lading under Letter of Credit 716 Mate Receipt 717 Combined Transport Document (CTD) 719 Preparing Invoices 719 Proforma Invoice 719 Commercial Invoice 721 Consular Invoice 722 Customs Invoice 722 Canada Customs Invoice 723 US Special Customs Invoice 725 Certificate of Origin for Exports to New Zealand 726 Combined Certificate of Value and of Origin to be Written, Typewritten or Printed on Invoices of Goods for Exportation to the Commonwealth of Australia 727 Legalised/Visaed Invoice 729 Certified Invoice 729 Preparing Bill of Exchange/Draft 729 Meaning of Bill of Exchange/Draft 729 Clean Bill and Documentary Bill 729 Stamp Duty 729 Specimen of Bill of Exchange 729 Guidelines for Drawing Bill of Exchange under L/C 730 Acceptance of Usance Bill of Exchange 730 Noting/Protesting of Foreign Bills 730

xviii

Contents

Obtaining/Preparing Other Documents 731 Black List Certificate 731 Weight Note 731 Packing List 731 Manufacturer's/Supplier's Quality/Inspection Certificate 731 Certificate of Inspection 731 Languages Certificate 731 Manufacturer's Certificate 731 Certificate of Chemical Analysis 731 Certificate of Shipment 731 Health/Veterinary/Sanitary Certificates 731 Certificate of Conditioning 732 GSP Certificate 732 Antiquity Certificate 732 Certificate of Measurement 732 Transhipment Bill 732 Transhipment Permit 732 Shipping Order 732 Cart/Lorry Ticket 732 Shut Out Advance 732 Short Shipment Form 732 Shipping Advice 732 Mandatory Certification of Goods and Services by Russian Federation 732 Preshipment Export Documents and Concerned Commercial Parties & Government Bodies/Departments 733 Documents Required for the Different Modes of Shipment 733 By Air 733 By Sea 733 Through Inland Container Depots and Container Freight Stations 734 By Land and River 734 By Parcel Post 735 Multimodal Transport 735 Manual Preparing of Documents 735 Computer Preparing of Documents 735 EDP Number for Shipping Bills 735 CHAPTER 36

Paper Size and Specifications Reproduction Technique Explanatory Notes on Aligned Preshipment Export Documents Master Document -I Master Document-II Tips for Preparing the Export Documents Revised Forms for Shipping Bills, Bills of Export and Declarations Exchange Control declaration Forms Pre-shipment Inspection Certificate Software for Simplified Export Documents Developed CHAPTER 37

738 738 739 740 743 746 747 747 748 748

HOW TO SHIP THE GOODS?

749-779

STANDARDISED PRESHIPMENT EXPORT DOCUMENTS New Standardised Documents Aligned Documentation System (ADS) Advantages of ADS Standardised and Aligned Preshipment Export Documents Commercial Documents Regulatory Documents Guidelines for Commercial Documents Paper Size and Specifications Reproduction Technique Guidelines for Regulatory Documents

736-748 736 736 736 737 737 737 738 738 738 738

Role of Freight Forwarding Agents in Shipping the Goods 749 Selection of Good and Reliable Agent 749 How to Ship the Goods 750 Reservation of Space 750 Shipping Order 750 Priority in Rail Movement 750 Priority in Wagon Allotment for Genuine Exporters 751 Speedlink Quality Service Network 752 Own Your Wagon Scheme 752 Railways Introduce New Freight Forwarders Scheme 754 Multimodal Transportation of Goods 755 MTD Format Released 756 Order Prescribing the Format of Multimodal Transport Document 756 Standard Conditions Governing Multimodal Transport Documents issued in accordance with Multimodal Transportation of Goods Act, 1993 757 Containerisation 762 Shipping Instructions 763 Shipment Advice to Importer 763 Payment of Freight Charges through Bank Drafts 763 Payment of Rly. freight through Bank Cheques against Bank Guarantee at the Booking Station 763 Exemption of Octroi Duty on Containers Loaded with Export Cargo 763 Organisation of Shipping Services and Structure of Freight Rates 763 Schedule of Export Charges 766 Glossary of Shipping Terms 767 Abbreviations and their Full Forms 771 Precautionary Measures to Prevent Frauds 772 Containerisation 772 Benefits of Efficient Container Packing 773 Tips for Packing Containers 773 Container Types 774 Dimensions 775 Strains Caused by Container Transports 776

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Container Bases Securing Cargo Securing facilities within the container Appendix 37.I : Shipping Instructions Appendix 37.II : Shipment Advice CHAPTER 38

777 777 777 778 779

CUSTOMS CLEARANCE OF EXPORT CARGO (BY SHIP, AIR, ROAD, POST & COURIER) 780-940

General 780 Action by Forwarding Agents 780 8-Digit Classification Code for Classification of Goods by Customs, DGFT & DGCIS 782 Implementation of New Revised 8 Digit HS Codes in Exports Documents and Exports DTRs to be Transmitted to DGCI & S, Kolkata 782 Filling of State Codes for State or Origin of Export Goods 782 IE Codes Standard Codes for Exempted Categories Importers and Exporters under ICES 783 Delhi Air Cargo Now on SMS 783 Shipping Bills/Bills of Entry Status Ascertainment through SMS 785 Bill of Entry/Shipping Bills Status Enquiry on SMS through Mobile 785 Customs Clearance of Export Goods 788 Examination Norms for Export Goods at Port of Export Procedures 791 Customs Clearance of Exports by Air 793 Simplified procedure for Clearance and examination of export and import cargo at Air Cargo Complexes 794 Examination and Clearance of EXIM Cargo Extension of working hours for simplified procedure 794 Movement of export cargo by containers/trucks from hinterland to Ports/Aircargo complexes 795 Movement of Export Cargo from One Port to another by rail procedure 796 Consolidation of Cargo at Gateway Port 796 Export consignment at Air Cargo, New Delhi Procedure for Examination 799 Facility for 7 days Customs Clearance of export at Delhi 799 EDI Service Center at FIEO Office 800 Cargo Terminal of the Indira Gandhi International Airport, New Delhi 800 Customs Clearance of Post Parcel 805 Import and Export through Courier 806 Export by Land/River 808 Computerised Processing of Shipping Bills under EDI System at Indira Gandhi International Airport, New Delhi 808 Revised Drawback Declaration Form for Exporters under EDI System in Cochin 820 Computerised Processing of Shipping Bills under the Indian Customs EDI System (Export) at ICD Patparganj 823

Computerised Processing of Shipping Bills in Mumbai under EDI 843 Procedure for Computerised Processing of Shipping Bills under Indian Customs EDI (ICES) Exports under Custom House, Kolkata 852 Processing of all categories of Bills under EDI System in Chennai 852 Procedure at Internal Container Depots (ICD) (Dry Ports) 858 Computerised Processing of Shipping Bills under the Indian Customs EDI System (ICES) at Air Cargo Complex, Begumpet, Hyderabad 858 Procedure at ICD Hyderabad 859 Procedure at Dashrath, Baroda for Export of Containerised Cargo from ICD 861 Procedure of Trans-shipment of Export Cargo from Gateway Ports like Chennai and JNPT 863 Procedure for Export of Goods from Kandla Port through Gateway Ports like Mumbai, J.N.Port etc. from Kandla as Gateway Port 863 Export Procedure at ICD, Ajni, Nagpur 867 Export Procedure at ICD, Rudrapur 868 Export Procedure to be followed at ICD Dighi and Lohegaon Airport in respect of Clearance of Specified Goods for Export 872 Procedure for Export at ICD Aurangabad 878 Procedure for Examination and Stuffing of Export Consignments Outside the Docks 879 EDI Systems at Ernakulam 883 Procedure for Examination and Stuffing of Export Cargo Consignments outside the Inland Container Depot, Madurai and in respect of Containers brought directly from Gateway Ports 884 Procedure for Examination and Stuffing of Export Cargo Consignments outside the Inland container Depot, Salem and in respect of Containers brought directly from Gateway Ports 885 Facility for in-House Stuffing of Export Cargo restored 887 Export Cargo Aggregation and Ship 887 Examination of the Export Goods at Source or at the Internal Container Depots 888 Import and Export Procedure at ICD, Jamshedpur 889 Export Movement of Export Cargo by Containers/ Trucks from Container Freight Station Mulund to Airport, Ahmedabad 895 Export Cargo Procedure for Movement of Export Cargo by Containers for CFS Mulund to Airport, Amritsar 896 Export Factory/Warehouse Stuffing of Export Goods Single Permission for various Schemes 897 Container Freight Station for Small Exporters (CFS) 900 Export of Jewellery 901 Temporary Export of Goods for Exhibitions and Fairs 902 Guidelines for Exporters/Importers of Drugs and Pharmaceuticals 903

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Contents

Application of Prvention of Food Adulteration Act, 1954 & Other Acts for the Clearance of Consignments of Food Articles 905 Export of Goods to Bangladesh - Part Shipment against Single Letter of Credit 905 Appendix 38.I : Shipping Bill for Export of Duty Free Goods 907 Appendix 38.II : Shipping Bill for Export of Goods under Claim for Duty Drawback 913 Appendix 38.III : Shipping Bill for Export of Goods under Duty Entitlement Pass Book Scheme 921 Appendix 38.IV : Shipping Bill/Dock Challan/Export Application for Export of Goods under Claim for Duty Drawback Port Trust Copy 935 CHAPTER 39 TENDERING DOCUMENTS TO THE BANK FOR PURCHASE/COLLECTION/ NEGOTIATION UNDER LETTER OF CREDIT

941- 947

Methods of Payment 941 Direct Remittance 941 Documentary Collection 941 Documentary Letters of Credit and Drafts 942 Open Account Trade 943 Advance Payments 943 Legal Requirement 943 Instructions to the Bank 944 Documents to be Submitted to the Bank 944 Tendering the Documents for Negotiation under Letter of Credit 945 Letter of Indemnity 945 Transfer of Documents 945 Despatch of Documents 945 Time Limit for Submitting the Documents 945 Delay in Submission of Shipping Documents by Exporters 946 Terms and Conditions for Collection/Negotiation of Documents 946 Checklist for Exporters at the time of Submitting Documents to Authorised Dealers for Negotiation or Collection of Export Bills 946 Receipt of Payment by ECGC 947 CHAPTER 40

Revolving Credit Transit Credit Back-to-Back Credit Deferred Payment Credits and Acceptance Credit Anticipatory Credits Credits Available by Instalments Restricted and Unrestricted Credits Accepting a Letter of Credit Letter of Credit Checklist and Guide for Exporters Importance of Complying with L/C Terms Tender of Documents Draft (Bill of Exchange) Invoice Bill of Lading Air Consignment Note (A.C. Note) Insurance Policy/Certificate Certificate of Origin Packing List Post Parcel Receipts Other Documents Combined Transport Document (CTD) Common Discrepancies Consequences of Discrepant Documents CHAPTER 41

949 949 949 949 949 950 950 950 951 952 953 953 953 954 954 954 955 955 955 955 955 955 956

FOREIGN EXCHANGE REGULATIONS & FACILITIES CONCERNING EXPORTS

958- 972

NEGOTIATION OF DOCUMENTS UNDER LETTER OF CREDIT

948- 957 948 948 948 948 949

Documentary Letters of Credit Parties to a Letter of Credit Uniform Customs and Practice for Documentary Credit Revocable or Irrevocable Letters of Credit Transferable Letter of Credit

Foreign Exchange Regulations for Exporters 958 Manner of Payment of Export Value of Goods 958 Manner of Receipt in Foreign Exchange 958 Manner of Payment for Export in Certain Cases 958 Period within which Export Value of Goods/ software to be Realised 959 Extension of Time Limit 959 Export on Elongated Credit Terms 960 Submission of Export Documents 960 Delay in Submission of Shipping Documents by Exporters 960 Transfer of Documents 960 Check-list for Scrutiny of Forms 960 Trade Discount 961 Payment for the Export 961 Certain Exports requiring Prior Approval 961 Export of Goods on Lease, Hire, etc. 961 Counter-trade Arrangement 962 Delay in Receipt of Payment 962 Advance Payment against Exports 962 Part Drawings 962 Consignment Exports 963 Despatch of Shipping Documents 963 Handing Over Negotiable Copy of Bill of Lading to Master of Vessel/Trade Representative 963 Export Bills Register 963 Follow-up of Overdue Bills 964

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Reduction in Invoice value on account of Prepayment of Usance Bills 964 Reduction of Value 964 Export Claims 964 Change of Buyer/Consignee 964 Shipments Lost in Transit 964 Payment of Claims by ECGC 965 Export of Goods and Services Payment of Claims by ECGC 965 Write off of Unrealized Export Bills 965 Export of Goods and Services Liberalisation 966 Netting off of export receivables against import payments - Units in Special Economic Zones (SEZs) 967 Return of Documents to Exporters 968 Exporters Caution List 968 Agency Commission on Exports 968 Refund of Export Proceeds 968 Forfaiting 968 Export of goods by Special Economic Zone Job work abroad 968 Participation in Trade Fairs Abroad 968 Foreign Exchange Facilities for Exporters 969 Opening, Holding and Maintaining an Exchange Earners Foreign Currency Account 969 Supply of goods from units in Special Economic Zones (SEZs) to units in Domestic Tariff Area (DTA) 969 Foreign Currency Accounts 969 Diamond Dollar Account 969 Appendix 41.I : Form ETX Application for Permission to Extend the Period for Realisation of Export Proceeds 970 Appendix 41.II : Specimen Application for Permission for Export of Goods on Elongated Credit Terms beyond Six Months 971 Appendix 41.III : Form EFC Application for Opening Foreign Currency Account with a Bank in India or Abroad by Exporters 972 CHAPTER 42 INDIAN JOINT VENTURES & WHOLLY OWNED SUBSIDIARIES ABROAD

Investment Abroad by a firm in India 974 Investment in Equity of Companies Registered Overseas/Rated Debt Instruments 975 Approval of the Reserve Bank 975 Block Allocation 975 Investment in the Financial Services Sector 975 Capitalisation of exports and other dues 976 Post investment changes/additional investment in existing JVs/WOS 976 Acquisition of a foreign company through bidding or tender procedure 976 Obligations of Indian Party 976 Transfer by way of sale of shares of a JV/WOS 976 Pledge of Shares 976 Section C Investment in Foreign Securities other than by way of Direct Investment 976 Permission for purchase/acquisition of foreign securities in certain cases 976 Transfer of a foreign security by a person resident in India 977 General permission in certain cases 977 Operational Instructions to Authorised Dealers 977 Designating branches 977 Investments under Regulations 6 and 17B 977 General procedural instructions 977 Investments under Regulation 11 978 Allotment of Identification Number 978 Investments under Regulation 9 978 Investments by Partnership firms under Regulation 17A 978 Remittance towards Earnest Money Deposit or Issue of Bid Bond Guarantee 978 CHAPTER 43

EXPORT INCENTIVES RELATING TO IMPORT FACILITATION AND IMPORT LICENCES

979- 997 979 979 979 979 979 979 979 979 979 979 980 980 980 980 980 980

973- 978 973 973 973 973 973 973 973 974 974 974

Section A General Introduction Statutory basis Prohibitions General Permission Section B Direct Investment outside India Automatic Route Method of Funding Investment out of funds raised through ADR/ GDR issues Investment under swap or exchange of shares arrangement

Import of Capital Goods Definition of Capital Goods Free Importability Import of Second hand Goods Import on Export Basis Re-import of Goods Repaired Abroad Import of Machinery and Equipment used in Projects Abroad Import under Lease Financing Import of Labels, Price Tags and like articles for Export Products Import of Prototypes Sale on High Seas Export Promotion Capital Goods Scheme EPCG Scheme Eligibility Application for EPCG Licence Consideration of Applications

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Condition for Import of Capital Goods 980 Export Obligation 981 Fulfilment of Export Obligation 981 Clearance of Goods from Customs 982 Import of Components and goods in Disassembled Condition/Un-assembed condition 982 Validity Period of EPCG Licence 982 Issuance of EPCG Licences for units which have not commenced manufacturing but have an RCMC as a merchant exporter and a provisional registration 982 Leasing of Capital Goods 982 Re-Export of Capital Goods Imported under EPCG Scheme 983 Replacement of Capital Goods 983 Indigenous Sourcing of Capital Goods and Benefits to Domestic Supplier 983 Fixation of Export Obligation 983 Benefits to Indigenous Supplier of Capital Goods983 Leasing of Capital Goods 983 EOU/EPZ Units under EPCG Scheme 983 Legal Undertaking and/or Bank Guarantee 983 Monitoring of Export Obligation 984 Redemption 984 Automatic Enhancement upto 10% and Prorata Reduction/Enhancement in Export Obligation 984 Extension of Export Obligation Period 984 Export Obligation Shortfall 985 Regularisation of Bonafide Default 985 Maintenance of Records 985 Re-Export of Capital Goods Imported under EPCG Scheme 985 Replacement of Capital Goods 985 Penal Action 985 Duty Exemption/Remission Schemes 985 Advance Licence 985 Advance Licence for Intermediate Supply 986 Advance Release Order for Indigenous Sourcing of Inputs 986 Back to Back Inland Letter of Credit 986 Prohibited Items for Import 987 Re-import of Exported Goods under Advance Licence 987 Clearance of Goods from Customs 987 Application 987 Advance Licence for Free of Cost and Paid Material 987 Licensing for New Comers 987 Self Declared Licences where Standard Input Output Norm (SION) does not exist 988 Entitlement 988 Licence in Excess of Entitlement 988 Financial Powers of the Licensing Authorities and ALC 989 Standardisation of Adhoc Norms 989 Modification of SION 989 Description of an Advance Licence 989

Application for Advance Release Order 990 Facility of Supporting Manufacturers 990 Facility of Co-licensee 990 Value Addition 990 Exports in Anticipation of Licence 990 Acceptance of BG/LUT 990 Port of Registration 991 Facility of Clubbing 991 Enhancement/Reduction in the Value of Licence 991 Export Obligation period and its Extension 992 Revalidation of Licence 992 Monitoring of Obligation 993 Advance Licence for Annual Requirement 993 Fulfilment of Export Obligation 994 Redemption 994 Transitional Arrangement for licences issued upto 31.3.2002 994 Regularisation of Bonafide Default 995 Time period for Depositing Fines, Customs Duty, etc. 995 Maintenance of Proper Accounts 995 Admissibility of Drawback 995 Duty Free Replenishment Certificate (DFRC) 995 Duty Free Replenishment Certificate 995 Declaration by the Exporter 996 Jobbing, Repairing etc. for re-export 996 Export/Imports under DFRC 997 Filing of Application 997 Time Period 997 Frequency of Application 997 Verification by Customs 997 Duty Entitlement Passbook Scheme 997 CHAPTER 44

INCENTIVES FOR DEEMED EXPORTS

998-1001

Deemed Exports 998 Categories of Supply Covered by Deemed Exports 998 Benefits for Deemed Exports 998 Benefits for Supplies made against Duty Free Licence 998 Procedure for Issue of Advance Release Order/ Back to Back Inland Letter of Credit & claiming of Deemed Exports Benefit 999 Conditions for Supplies 999 Additional Conditions for Supplies 999 Supplies to UN Organisation 1000 Supplies to Nuclear Power Project 1000 Benefits to Sub-Contractor 1000 Procedure for Claiming Benefits of Deemed Export Drawback Scheme/Refund of Terminal Excise Duty 1000 Continuance of Deemed Export Benefits for Supply of Turbine and Motor Generator Sets for River Body Project House of Sardar Sarovar Narmada Project in the wake of Withdrawal of OECF Funds 1000 Customs Duty Exemption to Materials Imported for Use in the Goods to be Supplied to UNO, UN

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Aided Programme, Project Aided by Multilateral/ Bilateral Agencies/Funds, FPZ, EOU, FTZ and Fertilizer Plants 1001 Customs Duty Exemption to Materials required for Manufacture of Specified Goods for Supply to a 100% Export-Oriented Undertaking or a unit within a Free Trade Zone 1001 Customs Duty Exemption to Goods Imported for use in setting up Petroleum Refinery, Oil Exploration/ Exploitation, and in connection with Petroleum Operations 1001 CHAPTER 45

Duty Exemption/Remission Scheme Status Information Requirements CHAPTER 48

1009 1009 1009

DUTY DRAWBACK ON GOODS EXPORTED

1010- 1027

EXPORT/TRADING/STAR TRADING AND SUPER STAR TRADING HOUSES

1002- 1004

Advantages of Exporting through Export Trading Companies 1002 Recognition 1002 Eligibility 1002 Criterion of Recognition 1002 Export Performance Level 1002 Special Strategic Packages for Status Holders 1003 Recognition for State Corporations 1003 Application for Grant/Renewal of EH/TH/STH/SSTH 1003 Duty Free Credit Entitlement for Status Holders 1004 Validity Period of Recognition Certificate 1004 Transitional Arrangement 1004 Service Providers 1004 Refusal/Suspension/Cancellation of Certificate 1004 Appeal 1004 Maintenance of Accounts 1004 CHAPTER 46

EXPORT OF SERVICES Definitions Registration EPCG Scheme EOU/EPZ/EHTP/STP Scheme Passenger Baggage Import of items Importer Exporter Code No. Status Other Service Providers Appendix 46.I : List of Services CHAPTER 47 AGRICULTURAL EXPORT ZONES Objective Agri Export Zone DEPB Scheme EPCG Scheme

1005- 1008 1005 1005 1005 1005 1005 1005 1005 1005 1006 1007

1009 1009 1009 1009 1009

Duty Drawback Scheme 1010 Taxes Rebated under Drawback 1010 Administration of Duty Drawback Scheme 1010 Items for which Drawback Admissible 1010 Inadmissibility of Drawback 1011 No Drawback where Value Addition is Negative 1011 No Drawback if Sale Proceeds not Realised within Time Limit 1011 Drawback not Admissible if Cenvat Availed of 1011 Rates of Drawback 1012 Provisional Drawback 1012 Special Brand Rates 1013 Decentralisation of the Work Relating to Fixation of Brand Rate of Drawback under Rule 6 and Rule 7 of the Customs & Central Excise Duties Drawback Rules, 1995 1013 Fixation of Provisional Drawback Rates 1016 Procedure for Claiming Benefit of Deemed Exports Drawback Scheme 1016 Eligibility of Drawback under the Duty Exemption Scheme 1017 Extension of All Industry Rate of Drawback to Export under DEPB Scheme 1018 Brand Rate for Export under Duty Exemption Scheme1018 Brand Rate for Exports under DEPB Scheme 1018 Simultaneous availment of Drawback with DEPB Scheme 1018 Extension of Brand Rate of Drawback to Exports under DEPB Scheme-Relaxation of time-limit prescribed under Duties Drawback Rules, 1995 for filing Brand Rate application under Rule 6/7 of Drawback Rules, 1995 1019 Extension of Brand Rate of Drawback Scheme to Exports under DEPB Scheme - Reimbursement of Additional Customs Duty paid in Cash on Imported Inputs and Excise duty paid on Indigenous Inputs in Export Goods 1019 Extension of Brand Rate of Drawback to exports under DEPB Scheme against DEPB-cum-Drawback Shipping BillsClarification 1019 DEPB-cum-Drawback Scheme Acceptance of Attested Copy of Shipping Bill in lieu of Triplicate Copy 1020 Extension of Brand Rate of Drawback to Exports under DEPB Scheme-Relaxation of Time-Limit for Filing Brand Rate Application under Rule 6/7 of the Customs & Central Excise Duty Drawback Rules, 1995 1020

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Extension of All Industry Rate of Drawback to Exports under DEPB Scheme 1021 Duty Free Replenishment Certificate (DFRC) 1021 Grant of All Industry Rate (AIR) of Drawback Equivalent to Central Excise Duty Portion on Indigenous Inputs used in the Manufacture of Resultant Product Exported under DFRC Scheme 1021 Eligibility of Drawback for Exports made under DFRC Scheme 1022 Procedure for Filing Drawback Claims under Customs and Central Excise Duties (Drawback) Rules, 1995 1022 Declaration under Rule 12(1)(a)(ii) of Drawback Rules for availing AIR of Drawback 1023 Procedure for Filing Drawback Claims under Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995 1024 Filing of Drawback Shipping Bill/Bill of Export in New Standardised Form 1025 Drawback Shipping BillsIrregularities in Entries 1026 Supplementary Claim 1026 Simplified Procedure for Payment of Drawback and New EDI System 1026 Instructions regarding Drawal of Samples 1026 Payment of Drawback & Interest 1027 Repayment of Erroneous or Excess Payment of Drawback and Interest 1027 Recovery of Drawback amount where Export Proceeds not realised 1027 CHAPTER 49

DUTY ENTITLMENT PASS BOOK SCHEME

10281053

Salient Features 1028 What is Duty Entitlement Pass Book Scheme?1028 Conditions for Eligibility under DEPB Scheme 1028 Safeguards against Misuse 1029 Changes made in DEPB Scheme under the Exim Policy 2002-07 (March 2003) 1029 Kelkar Committees Report on DEPB Scheme 1029 Procedure for Grant of DEPB Credit 1029 Application in Prescribed Form 1029 Time Period 1030 Frequency of Application 1030 Single Port of Registration 1030 DEPB Applications Received after Expiry of the Prescribed Date 1030 Verification by Customs 1030 Issue of DEPB Licence 1031 Basic for Computation of the DEPB Rate when the Exchange Rate on the date of let export exceeds the actual realisation rate 1031 Transferability of DEPB Licence 1031 Monitoring of Realisation 1031 Utilisation of DEPB Credit 1031 Restriction on Use of DEPB Credit 1031

Application of FOB Restriction on Imports made under the DEPB Scheme in respect of Clubbing of one or more DEPB 1031 Free Transferability of DEPB/Items Imported 1032 Fast Track Procedure for Status Hodlers 1032 Other Procedural Details 1033 DEPB Credit and Present Market Value 1033 Format of DEPB Licence 1033 Bank Guarantee 1033 Validity 1033 Revalidation 1033 Guidelines in Respect of Grant of Revalidation of DEPB Licences for Embroidered Silk Items 1033 Port of Registration 1034 Grant of DEPB benefits against White Shipping Bill 1034 Procuring Goods through Private Bonded Warehouses 1034 Duplicate Copy of DEPB 1034 Applicability of Drawback 1034 Issue of DEPB against Lost EP Copy of the Shipping Bills 1037 Loss of Original Bank Certificate 1038 Duty Exemption & Customs Procedure 1038 Exemption from Customs Duty in respect of Imports under DEPB 1038 Ministry of Finance Instructions Regarding Duty Entitlement Pass Book Scheme 1038 Clarification regarding Debiting the Element of SAD in DEPB Scrips 1039 SAD in respect of exports made prior to 1.4.2002 1039 DEPB Scrip must be valid on the Date of Actual Debit of Duty 1040 Revised Instructions regarding Verification of DEPB 1040 DEPB Scrips Procedure of Verification 1042 Verification of Supplementary DEPB Scrips issued in terms of DGFT PN No. 62 dated 17.2.2003 1042 Facility for permitting imports under DEPB Scheme at Customs bonded warehouses through TRA Procedure 1042 Facility for permitting imports under DEPB Scheme at various ports/airports/ICDs/LCS through TRA Procedure 1043 Extending TRA (Telegraphic Release Advice) facility under DEPB Scheme to non-notified places 1044 Procedure for issue of TRA/GRA for Faster Clearances 1044 Delay in release of Telegraphic Release Advice (TRA) under Advance License/DEPB/DFRC Scheme 1045 Guidelines for Determination/Verification of the Present Market Value (PMV) 1045

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Determination/Verification of Present Market Value (PMV) under DEPB Scheme Extension of Period upto 90 days in Deserving Cases 1046 Determination/Verification of the Present Market Value (PMV) under DEPB SchemeExtension of Period in Cases of Fraud/Collusion, etc. 1046 Time Limit for Market Verification of the Present Market Value (PMV) under DEPB Scheme 1046 Determination/Verification of the Present Market Value (PMV) under DEPB Scheme is not required if Value Cap is Provided 1046 Market Verification for Duty Drawback Disbursement/DEPB Verification 1047 Market Verification for ascertaining the Present Market Value under DEPB Scheme and Admissibility of DEPB Credit 1047 Market Verification for Ascertaining the Present Market Value under DEPB Scheme and Admissibility of DEPB credit 1048 Admissibility of DEPB credit and Market Verification for Ascertaining the Present Market Value under DEPB Scheme 1048 Payment of Duty in Cash in case of Insufficient Credit Balance 1048 Date of Payment to be included in Period for calculating Interest 1049 Conversion of Free Shipping Bills into Advance Licence/DEPB/DFRC/Drawback shipping Bills and Conversion of Shipping Bills from one Export Promotion Scheme to Another 1049 Conversion of DEPB Shipping Bills to Draw back Shipping Bills 1050 Credit Rates under DEPB Scheme 1050 DEPB Credit Rates 1050 Fixation of DEPB Rates 1050 Review of the DEPB Rates 1050 Instructions for Filling the Data Sheet for Fixation of DEPB Rates 1050 Notified DEPB Rates 1051 Provisional DEPB Rate 1051 Guidelines for the fixation of ad-hoc DEPB Rate 1051 Adoption of FOB value for calculation of DEPB credit 1051 FOB value inclusive of agents commission 1052 FOB value of exports done through land customs stations for calculations of drawback/ DEPB entitlements 1052 Credit under DEPB and Present Market Value 1052 Determination/Verification of the Present Market Value (PMV) under DEPB Scheme is not required if Value Cap is provided 1052 Exports of Products for which DEPB Credit Rates not Notified Not permitted under DEPB 1052 DEPB Rates notified with retrospective effect 1053 Supplementary DEPB on account of the factoring of SAD in the computation of revised DEPB rates for exports made during 1.4.2002 to 31.3.2003 1053

CHAPTER 50 MARKETING DEVELOPMENT ASSISTANCE (MDA) & MARKET ACCESS INITIATIVE (MAI) 1054- 1079 Marketing Development Assistance Scheme (MDA) 1054 Administration of the Scheme 1054 Assistance to Individual Exporters for Export Promotion Activities Abroad 1054 Sale Cum Study Tour 1055 Participation in Trade Fairs/Exhibitions 1055 Publicity through Printed Material 1055 Documentation for Reimbursement of Assistance to Exporters 1056 Examination of Claims and Reimbursement of Assistance 1057 Consortium Marketing Approach Abroad 1057 Assistance to Export Promotion Councils 1058 Promotional Activities Outside India 1058 Development and Promotional Activities within India 1059 Financial Assistance to Contest Countervailing Duty/Anti Dumping Cases Initiated Abroad 1059 Focus LAC Programme 1060 Approved Organisation(s)/Trade Bodies 1060 Pattern of Assistance to Grantee/Approved Organisations other than EPCs 1061 Adhoc Grant-in-Aid 1061 Marketing Development Assistance (MDA) Code for Export Promotion Efforts-Amendments made in March 2002 1061' Marketing Development Assistance (MDA) Code for Export Promotion Efforts - Amendments made in May 2003 1061 Marketing Development Assistance (MDA) Code for Export Promotion Efforts Amendments made in June 2003 1061 Marketing Development Assistance (MDA) Scheme Guidelines Amendments thereto 1061 Scheme for Market Development Assistance for SSI Exporters (SSI-MDA) to include Financial Assistance for Registration for Bar-Coding 1063 Guidelines for Financial Assistance under SSI-MDA Scheme for Registration for Bar-Coding 1063 Market Access Initiative (MAI) 1064 Appendix 50.I : Application Form for Marketing Development Assistance for Sale-cum-Study-Tour Abroad 1066 Appendix 50.II : Application Form for Marketing Development Assistance for Participation in Trade Fairs/Exhibitions Abroad 1066 Appendix 50.III : Application Form for Marketing Development Assistance for Production of Publicity Material 1067 Appendix 50.IV : Sample Approval Letter 1067

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Appendix 50.V : Claim Form for Marketing Development Assistance for Sales-cum-Study Tour Abroad 1068 Appendix 50.VI : Claim Form for Marketing Development Assistance (For Participation in Trade Fairs/Exhibitions abroad) 1069 Appendix 50.VII : Claim Form for Marketing Development Assistance (For Production of Publicity Material) 1070 Appendix 50.VIII : Verification Note for Persual of MDA Committee 1071 Appendix 50. IX : Proforma for Opening of Warehouse/ Foreign Office in Latin American Countries 1072 Appendix 50.X : List of Grantee Organisations (Export Promotion Councils) under the MDA Code 1072 Appendix 50.XI : List of Approved Organisations Who Can Sponsor Proposals from their Members 1073 Appendix 50.XII : Proforma for Application for Recognition as an Approved Organisation/Trade Body 1074 Appendix 50.XIII : Application Form for Availing Financial Assistance for Adoption of International Numbering Standards for Bar Coding and ECommerce 1074 Appendix 50.XIV : Licence Agreement for use of EAN Article Number 1075 Appendix 50.XV : Pre-Receipt 1078 Appendix 50.XVI : Registration Form EAN Article Numbering 1078 Appendix 50.XVII : Self Declaration 1079 CHAPTER 51 EXPORT INCENTIVES : SALES TAX EXEMPTION AND REIMBURSEMENT OF CST TO 100% EOU/STP/EHTP AND SEZ UNITS

CHAPTER 52 EXPORT INCENTIVES : INCOME TAX EXEMPTIONS/DEDUCTIONS

1088- 1096

Deduction in respect of Profits and Gains from Projects outside India (Sec. 80HHB) 1088 Deduction in respect of Export Turnover (Sec. 80HHC) 1088 Deduction in respect of Earnings in Convertible Foreign Exchange (Sec. 80HHD) 1091 Deduction for Export of Computer Software (Sec. 80HHE) 1092 Deduction for Export or Transfer of Film Software etc. (Sec. 80HHF) 1093 Deduction in respect of Royalties, etc. from certain Foreign Enterprises (Sec. 80-O) 1094 Deduction in respect of certain Incomes from Foreign Sources (Sec. 80R, 80RR & 80RRA) 1094 Ten Year Tax Holiday for Newly Established Industrial Undertakings in Free Trade Zones, EHTPs, STPs or SEZs (Sec. 10A) 1095 Ten Year Tax Holiday for New 100% Export Oriented Undertakings (Sec. 10B) 1096 CHAPTER 53

INLAND TRANSPORT ASSISTANCE SCHEME FOR EXPORT OF AGRICULTURAL PRODUCTS & PROCESSED FOOD ITEMS 1080- 1096

1097-1105

Sales Tax Exemption 1080 No Liability under State Sales Tax Law 1080 Exemption under Central Sales Tax Act, 19561080 Registration 1081 Penultimate Sales in the course of export 1081 Sales tax on Transfer of Export Licences 1082 Reimbursement of CST on supplies made to EOUs/ EHTP and STP Units 1082 Reimbursement of CST 1082 Procedure 1082 Appendix 51.I : Draft Format to be Furnished by an Exporter 1084 Appendix 51.II : Form HCertificate of Export for Sales Tax Exemption 1084 Appendix 51.III : Application for Claiming Reimbursement of Central Sales Tax Against C Form for the Goods Brought into the Bonded Premises of EOU/EHTP/STP for the Quarter Ending on........................ 1086 Appendix 51.IV : Chartered Accountant Certificate 1087

Procedure for Grant of Inland Transport Assistance of Horticulture Products from the North East Region including Sikkim for the period of 10th Five Year Plan i.e from 15.07.2002 to 31.03.2007 1097 Statement to be Forwarded by Regional Offices on Fortnightly basis for Approval 1099 Appendix 53.I : Eligible Products for Inland Transport Assistance Scheme 1100 Appendix 53.II : HS Codes for Products Eligible for Transport Assistance Scheme 1100 Appendix 53.III : Application for Inland Transport Assistance 1101 Appendix 53.IV : Details of the Shipment 1101 Appendix 53.V : Summary of Shipment and Claim for Inland Transport Assistance 1102 Appendix 53.VI : Bank Certificate of Export and Realisation 1103 Appendix 53.VII : Check List for Processing of Inland Transport Assistance Claims 1104 Appendix 53.VIII : Prescribed Dates for Submission of Claims 1105

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CHAPTER 54 SPICES EXPORT PROMOTION SCHEMES 1106-1109

CHAPTER 56 FINANCIAL ASSISTANCE SCHEME FOR AGRICULTURAL, HORTICULTURAL AND MEAT EXPORTS 1115-1124 Scheme for Market Development 1115 Scheme for Infrastructure Development 1116 Scheme for Quality Development 1118 Scheme for Research and Development 1121 Appendix 56.I : Application Form for Financial Assistance under APEDA Schemes 1122 Appendix 56.II : Proforma of Chartered Accountants Certificate 1123 Appendix 56.III : Proforma of Chartered Accountants Certificate 1123 Appendix 56.IV : APEDA Offices 1124 CHAPTER 57 FINANCIAL ASSISTANCE FOR MARINE PRODUCTS EXPORTS

Spices Board 1106 Indian Spices Logo 1106 Spice House Certificate 1106 Brand Name Registration 1106 Scheme for Technology Transfer and Process upgradation 1106 Scheme for Assistance for R&D efforts 1107 Scheme for Adoption of High-Tech in Spice Processing 1107 Scheme for Assistance for Stall Rent for Participation in International Food Fairs 1107 Scheme for Setting Up/Upgradation of Lab/ Facilities for Monitoring Pesticide Residues/ Adopting ISO 9000 1107 Scheme for Adopting HACCP Quality Control System 1108 Scheme for Purchase of Power Generator 1108 Scheme for Product Promotion Abroad 1108 Scheme for Packaging Development 1108 Scheme for Assistance for Sales Promotion Tours Abroad 1109 Scheme for Financial Assistance for Printing of Brochures/Folders 1109 Reimbursement of Air Freight/Courier Charges for Sending Samples Abroad 1109 Scheme for Promotion of Gift/Tourist Packs of Indian Spices with Quality Logo 1109 Scheme for Brand Promotion Loan 1109 Scheme for Providing Modern Cleaning, Processing and Storage Facilities at Terminal Markets 1109 CHAPTER 55

1125-1129

Salient Features of the Schemes 1125 Schemes of Ministry of Food Processing Industry Operated through MPEDA 1128 Appendix 57.I : List of MPEDA Offices 1129 CHAPTER 58 INCENTIVES TO SMALL AND MEDIUM EXPORTERS

1130-1136

JUTE EXTERNAL MARKETING ASSISTANCE

1110-1114 1110 1110 1110 1110 1110 1111 1111 1111 1111 1112 1114 1114

Jute EMA Scheme Products Covered Validity Registration Rate ITC (HS) Classification Eligibility Criteria Monthly Return & Documents Disbursement Appendix 55.I : Application for Registration under EMA Scheme Appendix 55.II : Undertaking Appendix 55.III : Return on Export of Jute & Jute products During the Month

Incentives to Small and Medium Exporters 1130 Small Industries Development Corporation (SIDC) 1130 Institutional Framework for Supporting Exports from Small Industries 1130 Indian Institute of Packaging, Mumbai 1131 Pilot Test House (PTH), Mumbai 1131 India Trade Promotion Organisation (ITPO) 1131 Export Promotion Councils 1131 Small Industries Development Bank 1131 How does SIDBI assist small-and medium-sized exporters in export financing 1131 Scheme of Refinance Assistance 1132 Appendix 58.I : Small Industries : Supporting Institutions 1133 Appendix 58.II : Small Industries Development Bank of India 1135 CHAPTER 59 EXPORT PROMOTION AGENCIES Ministry of Commerce Department of Commerce 1137-1183 1137 1137

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Contents

Export Promotion Councils 1138 Commodity Boards 1138 Federation of Indian Export Organisations 1138 Indian Institute of Foreign Trade (IIFT) 1139 Indian Institure of Packaging (IIP) 1140 Export Inspection Council (EIC) 1140 Indian Council of Arbitration (ICA) 1141 Indian Trade Promotion Organisation 1141 National Centre for Trade Information 1141 Chambers of Commerce and Industry 1141 FICCI (Federation of Indian Chambers of Commerce & Industry) 1141 Bureau of Indian Standards 1142 Indian Diamond Institute 1143 Small Industries Development Corporation (SIDC) 1143 Scope Shipping Standing Committee 1143 Textiles Committee 1143 Marine Products Export Development Authority 1143 Agricultural and Processed Food Products Export Development Authority 1144 Indian Investment Centre 1144 Freight Investigation Bureau 1144 Public Sector Undertakings 1144 Trade Representatives 1144 Government Trade Missions 1144 Directorate of Drawback 1144 Board of Trade 1144 Export Promotion Board 1145 Directorate General of Foreign Trade 1145 Trade Point 1145 Directorate General of Commercial Intelligence and Statistics (DGCI&S) 1145 Directorate General of Anti-Dumping & Allied Duties (DGAD) 1145 States Cell 1145 Centre-State Interface 1145 State Liaison Officers 1146 Niryat Bandhu 1146 One-Man Export Promotion Cells in Government Departments 1146 Export Processing Zones (EPZs)/Special Economic Zones (SEZs) 1146 Import Promotion Officers in Foreign Countries 1146 Air Cargo Task Force 1146

Export Facilitation Committee 1146 Other Export Promotion Organisations 1147 Research/Testing Laboratories/Institutes 1147 Institutional Framework for supporting Export from Small Industries 1147 National Awards for Public Recognition of Outstanding Export Performance 1147 Appendix 59.I : FIEOs Head Office & Regional Offices 1150 Appendix 59.II : ITPO Offices & Their Addresses 1150 Appendix 59.III : Foreign Embassies/High Commissions in India 1151 Appendix 59.IV : Indian Embassies/High Commissions Abroad 1161 Appendix 59.V : List of Trade Points Around the World 1168 Appendix 59.VI : State Government Export Trade Corporations 1173 Representatives of State Govt's Export Corporations in New Delhi 1173 State Government Representatives in New Delhi 1173 Emporia of State Govts. in New Delhi 1174 Appendix 59.VII : Niryat Bandhus for Export Promotion Activities in the States 1175 Appendix 59.VIII: Name & Address of One-man Export Promotion Cells Created in Ministries 1176 Appendix 59.IX : All India Export Promotion Associations 1178 All India & Regional Associations 1178 Trading Corporations 1181 Specialised Bodies/Associations/Govt. Offices 1181 Appendix 59.X: Research/Testing Laboratories/ Institutes 1183 CHAPTER 60 ACCOUNTING FOR EXPORT TRANSACTIONS Export Bills and Difference in Exchange Rates Duty Drawback and Licence Premium CHAPTER 61 DICTIONARY OF IMPORTANT TERMS USED IN INTERNATIONAL TRADE

1184 1184 1184

1185-1216

Contents Documents, Applications, Forms, Certificates, Proformae, Specimen Letters etc. Index of

xxix

Index of Documents, Applications, Forms, Certificates, Proformae, Specimen Letters etc.

Form/Application/Letter, etc. Page No. Form/Application/Letter, etc. Page No. Affidavit for Obtaining Duplicate Copy of Licences which are Lost or Misplaced 326 Agency Agreement, Specimen 198 Antiquity Certificate 732 Application for Certificate of Origin 617 Application for Certificate of Origin: Form B 615 Application for Claiming Reimbursement of Central Sales Tax against C Form for the goods brought into the Bonded Premises of EOU/EHTP/STP 1086 Application for Diamond Imprest Licence 419 Application for Identity Card 326 Application for Inland Transport Assistance 1101 Application for Participation in Fairs and Exhibitions Abroad (ITPO) 216 Application for Recognition as an Approved Organisation/Trade Body 1074 Application for Registration under EMA Scheme 1112 Application for Registration-cum-Membership with Export Promotion Councils 285 Application for Revalidation of Licence/Extension in Export Obligation Period of a Licence 327 Application Form for Allotment of Importer-Exporter Code (IEC) Number and Modification in Particulars of an Existing IEC No. Holder 271 Application Form for Availing Financial Assistance for Adoption of International Numbering Standards for Bar Coding and E-Commerce 1074 Application Form for Financial Assistance under APEDA Scheme 1122 Application Form for Grant of Export Licence for Export of Special Chemicals Organisms, Materials Equipments and Technologies items mentioned as restricted for Export 323 Application Form for Grant of Export Licence for Items Mentioned As Restricted for Exports 322 Application Form for Marketing Development Assistance for Production of Publicity Material 1067 Application Form for Marketing Development Assistance for Sales-cum-Study-Tour Abroad 1066 Application Form for MDA Assistance for Participation in Fairs/Exhibitions Abroad 1066 Application Form for Replenishment Against Exports 417 Bank Certificate of Export and Realisation 424, 1103 Bank Guarantee, Form for 420 Bill of Lading for Combined Transport and Port to Port Shipments 715 Black List Certificate 731 Canada Customs Invoice 723 Cart/Lorry Ticket 732 Certificate for Claiming Replenishment of Gold/Silver against Jewellery Sold at Exhibitions Abroad 425 Certificate of Chemical Analysis 731 Certificte of Conditioning 732 Certificate of Inspection 588, 731 Certificate of Measurement 732 Certificate of Origin for Exports to New Zeland 726 Certificate of Origin under GSP for Eligible Items of Textile Products 601 Certificate of Origin 618 Certificate of Shipment 731 Certified Invoice 729 Charterted Accountant Certificate 1087 Claim Form for Marketing Development Assistance for Sales-cum-Study Tour Abroad 1068 Claim Form for Marketing Development Assistance 1069, 1070 Combined Certificate of Value and of Origin to be Written, Typewritten or Printed on Invoices of Goods for Exportation to the Commonwealth of Australia 727 Combined Transport Document (CTD) 719 Commercial Invoice 721 Consular Invoice 722 Credit Limit Application 467 Customs Invoice 722 Declaration Cenvat Not Availed Certificate 821 Declaration Duty Paid Imported Steel Has Been Used in the Manufacture of the Export Product 821 Declaration Form for Export of Goods 838, 853 Declaration Job Workers Declaration required for Exports of Woven Garments 823 Declaration Leather Articles 822 Declaration Mercury Free Hydrochloric Acid 823 Declaration Pharmaceuticals 823 Declaration Power Driven Centrifugal Pumps for Liquids Fitted with Electric Motors 822 Declaration Woven Garments 822 Declaration Form for Export of Duty Free Goods 815, 830 Declaration Form for Export of Goods under Claim for Drawback 816, 830 Declaration Form for Export of Goods under DEPB, 100% EOU and EPCG-White 847 Declaration Form for Export of Goods under EPCG Green (with Drawback) 848 DEEC Declaration 814 Details of the Shipment 1101 Details to be Entered by Examining Officers when Export Goods are Brought for Examination 831 Draft Format to be furnished by an Exporter 1084 Drawback Declaration Form for Exporters under EDI System in Cochin 820 Drawback Declaration 1025 Drawback/DEEC Declaration 814 ECT : Application for Permission for Export of Commodities on Elongated Credit Terms Beyond 180 Days 971 EFC : Application for Opening Foreign Currency Account with a Bank in India or Abroad by Exporters 972

xxx

Contents Index of Documents, Applications, Forms, Certificates, Proformae, Specimen Letters etc. Page No. Form/Application/Letter, etc. Registration-cum-Membership Certificate Return on Export of Jute & Jute Products during the Month Page No. 286 1114

Form/Application/Letter, etc.

ETX : Application for Permission to Extend the Period for Realisation of Export Proceeds 970 Export Costing Sheet 186 Export Register for Shipment of Goods through other Gateway Ports 864, 865 Form APR Form GR Form H Form PP Form SDF Format of Importer-Exporter Code Number GR Declaration GSP Certificate of Origin : Form A, Notes on Completion of GSP Form GSTP Form Handloom Certificate/Garment Certificate Health/Veterinary/Sanitary Certificate IEC Trade Return Indemnity Bond Intimation for Inspection Languages Certificate Legal Agreement/Undertaking, Form of Legalised/Visaed Invoice Licence Agreement for use of EAN Article Number 616 691 1084 696 695, 819, 858 275 814 599 613 604 595 731 260 619 587 731 421 729 1075

Manufacturers Certificate 731 Manufacturers/Suppliers Quality/Inspection Certificate731 Marine Insurance Declaration 685 Master Document I 740 Master Document II 743 Mates Receipt 718 Multimodal Transport Document 757 Packing List 731 Pre-Receipt 1078 Profile of Exporter/Importer 274 Proforma for Application for Recognition as an Approved Organisation/Trade Body 1074 Proforma for Bank Certificate for Export Traffic by Railways 751 Proforma for Opening of Warehouse/Foreign Office in Latin American Countries 1072 Proforma Invoice 720 Proforma of Chartered Accountants Certificate for Assistance under APEDA Schemes 1123 Proposal for a Shipments (Comprehensive Risks) Policy 466 Quarterly Statement Showing Value of Shipments Effected and Advance/Deferred Instalments Received in Respect of Exports under Deferred Payment Arrangements 346 Registration Form EAN Article Numbering 1078

Sample Approval Letter - MDA 1067 Sample Letter to a Foreign Trade Representative Stationed in the Exporters Country 227 Self Declaration 1079 Shipping Advice 732, 779 Shipping Bill for Export of Duty Free Goods 907 Shipping Bill for Export of Goods under Claim for Duty Drawback 913 Shipping Bill for Export of Goods under Duty Entitlement Pass Book (DEPB) Scheme 921 Shipping Bill/Dock Challan/Export Application for Export of Goods under Claim for Duty Drawback 935 Shipping Bill/Dock Challan/Export Application for Export of Goods under Duty Entitlement Pass Book (DEPB) Scheme 929 Shipping Instructions 778 Shipping Order 732 Short Shipment Form 732 Short Shipment Notice 871 Shut Out Advice 732 Softex Form 700 Specimen Airway Bill 707 Specimen Bill of Exchange 730 Specimen Contract Form for Sale Purchase Transactions, Exports and Imports 255 Specimen Letter asking Quotations from Manufacturers 225 Specimen Letter for Arranging Insurance of Goods 226 Specimen Letter for Making Arrangements with the Shipping Company 225 Specimen Letter to a Prospective Agent/Distributor Abroad 226 Specimen Letter to a Trade Representative 227 Specimen Letter to an Import Promotion Institution Abroad 228 Specimen of Acknowledgement to a Letter from a Foreign Buyer and Providing Quotation & Samples 224 Specimen of Acknowledgement to a letter from a Foreign Buyer 223 Specimen of Acknowledging Indent and Sending Proforma Invoice 224 Specimen of Introductory Letter to Importers Abroad 223 Specimen of Requisition Letter for Opening of a Letter of Credit (LC) 225 Summary of Shipment and Claim for Inland Transport Subsidy 1102 Transhipment Bill Transhipment Permit US Special Customs Invoice Verification Note for Persual of MDA Committee Weight Note 732 732 725 1071 731

Contents Export Promotion and Facilitation Organisations/Associations etc. Index of

xxxi

Index of Export Promotion and Facilitation Organisations/Associations etc.

Name of Organisation/Association Page No. Name of Organisation/Association Page No.

Agencies Authorised to Issue Certificate of Origin for SAPTA and Bangkok Agreement, List of 602 Agencies Authorised to Issue Certificates of Origin Non Preferential 606 Agencies Authorised to Issue Certificates of Origin for GSP Schemes, List of 605 Agricultural and Processed Food Products Export Development Authority 1124, 1144 Air Cargo Task Force 1146 All India & Regional Associations 1178 All India Export Promotion Associations 1178 Appareal Export Promotion Council and Agencies Connected with Garments & Textiles, Addresses of 372 Approved Organisations Who can Sponsor Proposals from their Members, List of 1073 Authorised Agencies to do Fumigation Work, List of 589 Authorised Dealers in Foreign Exchange, List of 116 Board of Trade Bureau of Indian Standards

Grantee Organisations (Export Promotion Councils) under the MDA Code 1072 Import Promotion Offices and Similar Organisations Abroad 164 Import Promotion Offices in Foreign Countries 1146 India Trade Promotion Organisation 1141 Indian Cambers of Commerce in India 158 Indian Chambers of Commerce Abroad 158 Indian Council of Arbitration (ICA) 1141 Indian Diamond Institute 1143 Indian Embassies/High Commissions Abroad 1161 Indian Institute of Foreign Trade (IIFT) 1139 Indian Institute of Packaging (IIP) 1140 Indian Investment Centre 1144 Inspection and Certification Agencies, List of 590 Internet Sources 129, 134 ITPO Offices & Their Addresses 1150 266 426 592 1143 1137 1141 1175 1176 1144 1173 1183 1143 1133 1135 1143 1181 1173 1173 1146 1145 1143 215 162 1168 1144 1181 165

1144 1142 Licensing Authorities and Their Jurisdiction, List of Licensing Authority and Nominated Agencies for the Centre State Interface 1145 Purpose of Gem and Jewellery Export Promotion Chambers of Commerce & Trade Associations in India & Schemes Abroad, List of 149 List of IS/ISO 9000(Series) Certification Agencies/ Chambers of Commerce and Industry 1141 WHOGMP Certification Agencies/HACCP Commodity Boards 1138 Certification and other Certification Agencies Credit Information Agencies Abroad, Some well Known 160 Marine Products Export Development Authority 1129, Debt Collecting Agencies, List of 469 Ministry of Commerce Department of Commerce 1137 Directorate General of Anti-Dumping & Allied Duties National Centre for Trade Information (DGAD) 1145 Niryat Bandhu 1146, Directorate General of Commercial Intelligence and Statistics (DGCI&S) 1145 Directorate General of Foreign Trade (DGFT) 1145 One-Man Export Promotion Cells in Government Departments 1146, Directorate of Drawback 1144 Directories, World 131 Public Sector Undertakings ECGC Offices, List of 463 Emporia of State Govts. in New Delhi 1174 Representatives of State Govts Export Corporations in New Delhi EXIM Bank, List of Offices of 526 1147, Export Facilitation Committees 1146 Research/Testing Laboratories/Institutes Export Import Organisations Abroad 168 Export Inspection Council (EIC) 1140 Scope Shipping Standing Committee Small Industries : Supporting Institutions Export Procesing Zones (EPZs)/Special Economic Zones (SEZs) 1146 Small Industries Development Bank of India Export Promotion Board (EPB) 1145 Small Industries Development Corporation (SIDC) Export Promotion Councils 1138 Specialised Bodies/Associations/Govt. Offices Export Promotion Councils/Commodity Boards, List of 276 State Government Export Trade Corporations State Government Representatives in New Delhi State Liaison Officers Federation of Indian Chambers of Commerce and Industry 1141 States Cell Federation of Indian Export Organisation 1138 FIEOs Head Office & Regional Offices 1150 Textiles Committee Foreign Chambers of Commerce Abroad 149 Trade Fairs/Exhibitions, Important Foreign Chambers of Commerce in India 157 Trade Information Centres 1145, Foreign Embassies/High Commissions in India 1151 Trade Points Around the World, List of Freight Investigation Bureau 1144 Trade Representatives Trading Corporations Government Trade Missions 1144 Govt. Export Inspection Agencies, List of 551 World Trade Centres

xxxii

Contents Subject Index

Subject Index
Subject Page No. Subject Page No.
100% Export Oriented units for Gold/Silver and Platinum Jewellery and Articles 433 15x15 Product Matrix of Indias Export 16 8-Digit Classification Code for Classification of Goods by Customs, DGFT & DGCIS 782 Accounting For Export Transactions 1184 Advance Payment against Exports 962 Advance Payment 299, 943 Advances against Claims of Duty Drawback 490 Advances against Export Bills Sent on Collection 490 Advantages of Exporting 122 Advertise in International Newspapers, Magazines and Create your Home Page on the Internet 194 Advertising 192 Affidavit for Obtaining Duplicate copy of Licences which are Lost or Misplaced, Form of 326 Afghanistan 57 Agencies Authorised to Issue Certificates of Origin Non Preferential, List of 606 Agencies Authorised to Issue Certificate of Origin for SAPTA and Bangkok Agreement, List of 602 Agencies Authorised to Issue GSP Certification, List of 605 Agency Agreement, Specimen 198 Agency Commission on Exports 968 Agents Abroad, Appointing Sales 195 Agents Commission, Agents Entitlement 203 Agents Commission, Clean Negotiation 203 Agents Commission, Commission on Canalised Items 203 Agents Commission, Declaration on GR/PP/SOFTEX Forms 203 Agents Commission, No Objection Certificate 203 Agents Commission, Project Exports/Joint Ventures/Exports Finance under Lines of Credit 203 Agents Commission, Remittance/Deduction 203 Agents Commission, Shipment 203 Agreement on Sanitary and Phytosanitary Measures (SPS) 95 Agreement on Technical Barriers to Trade (TBT) 94 Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) 96 Agreements on Agricultural 91 Agri Export Zones (AEZ) 294 Agricultural and Processed Food Products Export Development Authority 1144 Agricultural Export Zones 1009 AIDA Technique 194 Air Cargo Task Force 1146 Air Consignment Note (A.C. Note) 954 Airway Bill/Air Consignment Note 706 Aligned Documentation System (ADS) 736 All India & Regional Associations 1178 All India Export Promotion Associations 1178 Allotment of D-U-N-S Number Free of Cost to Policy holders of ECGC 439 American Care Labelling Amendments 623 Anticipatory Credits 949 Anti-Dumping 105 Anti-Dumping Investigations, Guide to 107 Anti-Dumping Legislation in India and the Customs Tariff (Amendment) Act, 1994 106 Anti-Dumping Procedures in the EU 106 Anti-Dumping Procedures in the US 105 Antiquity Certificate 732 APEDA Offices 1124 Apparel Export Promotion Council and Agencies connected with Garments & Textiles, Addresses of the 372 Application Fee 295 Application for Certificate of Origin Form B 615 Application for Certificate of Origin 617 Application for Claiming Reimbursement of Central Sales Tax Against C Form for the Goods Brought into the Bonded Premises of EOU/EHTP/STP 1086 Application for Diamond Imprest Licences, Form of 419 Application for Grant of Export Licence/Certificate/Permission 300 Application for Identity Card, Form of 326 Application for Import and Export of Restricted Items 296 Application for Inland Transport Assistance 1101 Application for Participation in Fairs and Exhibitions Abroad (ITPO)2 1 6 Application for Permission for Export of Goods on Elongated Credit Terms beyond Six Months, Specimen 971 Application for Registration under EMA Scheme 1112 Application for Registration-cum-Membership with Export Promotion Councils, Form of 285 Application for Revalidation of Licence/Extension in Export Obligation Period of a Licence, Form of 327 Application Form for Allotment of Importer/Exporter Code (IEC) Number and Modification in Particulars of an Existing IEC No. Holder 2 7 1 Application Form for Availing Financial Assistance for Adoption of International Numbering Standards for Bar Coding and ECommerce 1074 Application Form for Financial Assistance under APEDA Schemes 1 1 2 2 Application Form for Grant of Export Licence for Export of Special Chemicals, Organisms, Materials, Equipments and Technologies (SCOMET) items mentioned as Restricted for Export in Appendix 3 Schedule 2 of ITC (HS) Classifications of Export and Imports Items 323 Application Form for Grant of Export Licence for items mentioned as restricted for exports in Schedule II of ITC (HS) Classifications of Export and Imports Items 322 Application Form for Marketing Development Assistance for Participation in Trade Fairs/Exhibitions Abroad 1066 Application Form for Marketing Development Assistance for Production of Publicity Material 1067 Application Form for Marketing Development Assistance for Salecum-Study-Tour Abroad 1066 Application Form for Replenishment Against Exports 417 Approaching International Organisations 219 Approved Organisations Who Can Sponsor Proposals from their Members, List of 1073 Arbitration Clause in Business Contracts, Use of 253 Ascertaining Exact Benefits from Export Assistance Schemes 185 ASEAN-India Economic Co-Operation 84 Asian Countries Investment Partners Programme (ACIP) 509 Assessing the Financial Needs 480 Attitudes 142 Authorised Agencies to do Fumigation Work, List of 589 Authorised Dealers in Foreign Exchange, List of 116 Automatic Licence/Certificate/Permission 299 Back-to-Back Credit Bangkok Agreement Bangladesh Bank Certificate of Export and Realisation Bank Finance Bank Guarantee, Form for Bar Coding Bhutan Bill of Exchange/Draft Bill of Lading (B/L) BIMST-EC Black List Certificate Board of Trade Brand Promotion and Quality Branding Bulk Import Finance Programme (BIF) Bureau of Indian Standards Business and Economic Laws Business Correspondence Business Letters/Correspondence Buyers Agents in India Buying and Selling Rate Buying Houses Located in India, Getting Business through Buying Houses, Advantages of Working through Buying Houses, Pre-requisites for Getting Business through Buying Houses, Selecting the 949 84 58 424, 1103 480 420 644 58 729 714, 954 81 731 1144 294 136 514 1142 117 190 217 203 536 203 204 204 204

Calculation of Rates 537 Canada Customs Invoice 723 Cargo Insurance and Claims Procedure 670 Cart/Lorry Ticket 732 CD-Roms 230 Central Assistance to States for Developing Export Infrastructure (ASIDE) and Other Allied Activities 31 Central Excises Act, 1944 117 Centre-State Interface 1145 Certificate for Claiming Replenishment of Gold/Silver Against Jewellery Sold at Exhibitions Abroad 425 Certificate of Chemical Analysis 731 Certificate of Conditioning 732 Certificate of Inspection 731 Certificate of Inspection/In-Process Quality Control 588 Certificate of Measurement 732 Certificate of Origin 298, 618, 955 Certificate of Origin, Types of 595 Certificate of Origin by Assocham, Issue of 598 Certificate of Origin by FIEO, Issue of 596 Certificate of Origin by PHD, Issue of 597 Certificate of Origin for Exports to New Zealand 726 Certificate of Origin for Mexico 598 Certificate of Origin under GSP for Eligible Items of Textile Products Requirement of Proof of Shipment, Issue of 601 Certificate of Origin/GSP Certificate, Obtaining 594 Certificate of Shipment 731 Certified Invoice 729 Chambers of Commerce & Trade Associations in India and Abroad , List of 149 Chambers of Commerce and Industry 1141 Change of Buyer/Consignee 964

Contents Index Subject

Chartered Accountant Certificate 1087 Check list for Exporters at the time of Submitting Documents to Authorised Dealers for Negotiation or Collection of Export Bills9 4 6 Check list for Processing of Inland Transport Assistance Claims 1104 Check list for Scrutiny of Forms 960 Claim Form for Marketing Development Assistance (For Participation in Trade Fairs/Exhibitions abroad) 1069 Claim Form for Marketing Development Assistance (For Production of Publicity Material) 1070 Claim Form for Marketing Development Assistance (For Sales-cumStudy Tour Abroad) 1068 Coding of Prices 189 Combination of Several (Multi) Media Carriers 231 Combined Certificate of Value and of Origin to be Written, Typewritten or Printed on Invoices of Goods for Exportation to the Commonwealth of Australia 727 Combined Transport Document (CTD) 719, 955 Commercial Documents 737 Commercial Invoice 721 Commercial Relations and Trade Agreements 57 Commission, Rate of 203 Commodities covered under the Export (Quality Control & Inspection) Act, 1963, List of 576 Commodities under the purview of Export Inpsection Agencies 583 Commodity Boards 1138 Commodity Trends 5 Common Discrepancies 955 Common Fund for Commodities 80 Company 113 Completion of GSP Certificate of Origin : Form A, Notes on 599 Compliance with Laws 290 Complying with L/C Terms, Importance of 952 Computerisation Complete in Various Activity areas of DGFT, New Work Allocation of Sections and Section Codes 245 Computerised Business Communication (EDI) and Product Identification (Bar Code) Systems 242 Computerised Processing of Shipping Bills in Mumbai under EDI 8 4 3 Computerised Processing of Shipping Bills under EDI System at Indira Gandhi International Airport, New Delhi 808 Computerised Processing of Shipping Bills under Indian Customs EDI (ICES) Exports under Custom House, Kolkata, Procedure for 8 5 2 Computerised Processing of Shipping Bills under the Indian Customs EDI System (Export) at ICD Patparganj 823 Computerised Processing of Shipping Bills under the Indian Customs EDI System (ICES) at Air Cargo Complex, Begumpet, Hyderabad 858 Confirmed Orders, Making offers to obtain 191 Consequences of Discrepant Documents 956 Consignment Exports 963 Consolidation of Air Cargo 690 Consolidation of Cargo at Gateway Port 796 Consular Invoice 722 Consultancy and Technology Services Finance Programme 517 Container Freight Station for Small Exporters (CFS) 900 Containerisation 762, 772 Contract Form for Sale Purchase Transactions, Exports and Imports, Brief Specimen 255 Contract Form, Specimen 253 Contract Forms, Standard 253 Conversion from One Scheme to Another 301 Core Elements of Business Plan for Export 124 Costs Associated with Exporting Product 183 Counter-Trade Arrangements (Escrow Accounts) 533, 962 Countries of Imports/Exports 295 Country Directories 131 Credit Limit Application 467 Credits Available by Instalments 950 Customs Act, 1962 118 Customs Clearance of Export Cargo (By Ship, Air, Road, Post & Courier) 780 Customs Clearance of Export Goods 788 Customs Clearance of Exports by Air 793 Customs Clearance of Post Parcel 805 Customs Duty Exemption to Goods Imported for use in setting up Petroleum Refinery, Oil Exploration/Exploitation, and in connection with Petroleum Operations 1001 Customs Invoice 722 Debt Collecting Agencies, List of 469 Declaration of Exports on GR/PP/SDF/SOFTEX Forms 686 Deemed Exports Concessive Rupee Export Credit 495 Deemed Exports 998 Deemed Exports, Additional Conditions for Supplies 999 Deemed Exports, Benefits for Supplies made against Duty Free Licence 998 Deemed Exports, Benefits for 998 Deemed Exports, Benefits to Sub-Contractor 1000 Deemed Exports, Categories of Supply Covered by 998 Deemed Exports, Conditions for Supplies 999 Deemed Exports, Continuance of Deemed Export Benefits for Supply of Turbine and Motor Generator Sets for River Body Project House of Sardar Sarovar Narmada Project in the wake of Withdrawal of OECF Funds 1000 Deemed Exports, Customs Duty Exemption to Materials Imported for Use in the Goods to be Supplied to UNO, UN Aided Programme,

xxxiii
Project Aided by Multilateral/Bilateral Agencies/Funds, FPZ, EOU, FTZ and Fertilizer Plants 1001 Deemed Exports, Customs Duty Exemption to Materials required for Manufacture of Specified Goods for Supply to a 100% ExportOriented Undertaking or a unit within a Free Trade Zone 1001 Deemed Exports, Procedure for Claiming Benefits of Deemed Export Drawback Scheme/Refund of Terminal Excise Duty 1000 Deemed Exports, Procedure for Issue of Advance Release Order/Back to Back Inland Letter of Credit & claiming of Deemed Exports Benefit 999 Deemed Exports, Supplies to Nuclear Power Project 1000 Deemed Exports, Supplies to UN Organisation 1000 Deferred Payment Credits and Acceptance Credit 949 Delay in Receipt of Payment 962 Delay in Submission of Shipping Documents by Exporters 946, 960 Delhi Customs Public Notices on Diamond, Gem & Jewellery Export Promotion Schemes, Text of 393 Denomination of Export Contracts 292 Department of Commerce 1137 Despatch of Shipping Documents 945, 963 Details of the Shipment 1101 Diamond & Jewellery Dollar Accounts 393 Diamond Imprest Licences 384 Dictionary of Important Terms used in International Trade 1185 Digital Versatile Disk (DVD) 230 Direct Export Selling 138 Direct Investment outside India 973 Direct Negotiation of Export Documents 300 Direct Remittance 941 Direct Vs. Indirect Quotation 535 Directorate General of Anti-Dumping & Allied Duties (DGAD) 1145 Directorate General of Commercial Intelligence and Statistics (DGCI&S) 1145 Directorate General of Foreign Trade 1145 Directorate of Drawback 1144 Diskettes 230 Documentary Collection 941 Documentary Letters of Credit 948 Documentary Letters of Credit and Drafts 942 Documents Required for the Different Modes of Shipment 733 Documents to be Submitted to the Bank 944 Draft (Bill of Exchange) 953 Draft Format to be Furnished by an Exporter 1084 Drugs and Pharmaceuticals, Guidelines for Exporters/Importers of 9 0 3 Duplicate Copies of Export-Import Licences/Certificate/Permissions/ CCPs 296 Duty Drawback on Goods Exported 1010 Duty Entitlement Passbook Scheme 997, 1028 Duty Exemption/Remission Schemes 985 Duty Free Replenishment Certificate (DFRC) 995 ECGC Introduces Major Reforms in Credit Insurance Policies 434 ECGC Offices, List of 463 ECGC Provides on-Line Connectivity to Exporter- Clients 439 ECGC, Buyerwise PoliciesShort Term (BPST) 456 ECGC, Check List on ECGC 449 ECGC, Covers issued by 440 ECGC, Exports to Restricted Cover Countries 448 ECGC, Guarantees to Bank 459 ECGC, No Claim Bonus 449 ECGC, Points to be Checked on Receipt of a Policy 446 ECGC, Premium paid on Projected turnover and Premium Payable on actual turnover 450 ECGC, Premium Rates 450 ECGC, Procedure for Payment of Premium 450 ECGC, Simplified Procedure for Submission of Shipping Declarations 450 ECGC, Special Schemes 461 ECGC, Specific Policies 451 ECGC, Steps to be taken after Obtaining the Policy 447 ECGC, Turnover Policies 450 ECGCs Country Underwriting Policy, Liberalisation of 435 ECGCs Small Exporters Policy 445 ECO Labelling 572 E-Commerce for Exporters 247 EDI Systems at Ernakulam 883 Effective Presentation, Hints for an 232 Electronic Data Interchange (EDI) 241, 295, 302 Electronic Funds Transfer System, RBIs 248 Electronic Mail (E-Mail) 241 Eligible Products for Inland Transport Assistance Scheme 1100 Emporia of State Govts. in New Delhi 1174 Envelope 217 Equity Investment in Indian Ventures Abroad 508 European ECO Label for Clothing and Textiles 624 Examination and Clearance of EXIM Cargo Extension of working hours for simplified procedure 794 Examination Norms for Export Goods at Port of Export Procedures 791 Examination of the Export Goods at Source or at the Internal Container Depots 888 Exchange Fluctuation Risk Cover 462 Execution of BG/Legal Undertaking 297 Execution of BG/LUT 291 Exemption from Furnishing Export Declaration Forms 687

xxxiv
Exemption from Policy/Procedure 290 Exemption of Octroi Duty on Containers Loaded with Export Cargo 7 6 3 Exhibits Required for National and International Exhibitions or Fairs and Demonstrations 300 Exim Bank Finance 505 Exim Bank, List of Offices of 526 EXIM Facilitation Committee 300 Exim Policy, 2002-07 as announced on 30.3.2003, Highlights of the 287 Export Factory/Warehouse Stuffing of Export Goods Single Permission for various Schemes 897 Export against Advance Licence 392 Export against Supply by Foreign Buyer 389 Export against Supply by Foreign Buyer Scheme-Bank Guarantee Amount Clarifications 411 Export against Supply by Nominated Agencies 391 Export and Import Policy 119 Export Bills for Collection 470 Export Bills Register 963 Export Bills under Confirmed Irrevocable Letters of Credit 471 Export Business Correspondence 217 Export by Land/River 808 Export by Post 299 Export Cargo Procedure for Movement of Export Cargo by Containers for CFS Mulund to Airport, Amritsar 896 Export Cargo Aggregation and Ship 887 Export Claims 964 Export Contract, Entering into 251 Export Costing and Pricing 183 Export Costing Sheet 186 Export Credit Limit From ECGC, Obtaining 434 Export Credit Customer Service, Procedure and Reporting Requirements 501 Export Credit, Special Features of 481 Export Documents, Handling the 470 Export Enhancement and Export Studies Market Access Initiative 3 2 Export Facilitation Committee 1146 Export Finance (Overseas Lending) Guarantee 461 Export Finance Guarantee 460 Export Financing 480 Export Inspection Council (EIC) 1140 Export Marketing Finance Programme 509 Export Marketing Website 130 Export Movement of Export Cargo by Containers/Trucks from Container Freight Station Mulund to Airport, Ahmedabad 895 Export of Agricultural Products 7 Export of Cut & Polished Diamonds for Certification/Grading 385 Export of Gifts 292 Export of Goods and Services Liberalisation 966 Export of Goods and Services Payment of Claims by ECGC 965 Export of Goods by Special Economic Zone -Job work abroad 968 Export of Goods on Lease, Hire, etc. 961 Export of Goods to Bangladesh - Part Shipment against Single Letter of Credit 905 Export of Imported Goods 292 Export of Items Reserved for SSI Sector 297 Export of Items under State Trading Regime (STR) 301 Export of Jewellery 901 Export of Passenger Baggage 292 Export of Repaired Goods 292 Export of Replacement Goods 292 Export of Samples 292 Export of Services 1005 Export of Spares 292 Export on Elongated Credit Terms 960 Export Order, Processing of an 250 Export Oriented Unit Scheme 428 Export Performance Guarantee 460 Export Policy & Procedures 2002-07 as amended upto 15th December 2003, Relevant Text of 290 Export Policy as per ITC (HS) Classification of Import Export Items 3 0 3 Export Price 184 Export Prices Segments 185 Export Product Development Programme 510 Export Production Finance Guarantee 460 Export Promotion Board 1145 Export Promotion Capital Goods Scheme 980 Export Promotion Council 293, 1131, 1138 Export Promotion Councils/Commodity Board, List of 276 Export Promotion Measures 23 Export through Exhibitions/Export Promotion Tours/Export of Branded Jewellery 390 Export Trends and Prospects in India 1 Export under claim for Rebate 660 Export without Payment of Excise Duty 645 Export/Import Costing Sheet 186 Export/Trading/Star Trading and Super Star Trading Houses 1002 Exporters Caution List 968 Export-Import Organisations Abroad 168 Exports and Imports free unless regulated 290 Exports by Barges/Country Craft/Road Transport 690 Exports of Samples/Exhibits 301 Exports requiring Prior Approval, Certain 961 Exports through Canalising Agencies 138 Exports through Export Consortia 138 Extension of Time Limit 959

Contents Subject Index

Facility for in-House Stuffing of Export Cargo restored 887 Factors for Assessing Market 127 FEDAI Rules on Export Transactions and Charges 474 Federation of Indian Export Organisations 1138 FICCI (Federation of Indian Chambers of Commerce & Industry) 1 1 4 1 FIEOs Head Office & Regional Offices 1150 Filing of Application 296 Final Choice 114 Finance for Export of Computer Software 516 Finance for Rupee Expenditure for Project Export Contracts (FREPEC) 518 Financial Assistance for Marine Products Exports 1125 Financial Assistance Scheme for Agricultural, Horticultural and Meat Exports 1115 Financial Services 470 Financing International Marketing 139 Financing of Project Exports 491 Firm Determination 122 Floor Prices (Minimum Export Prices) 184 Focus : Africa 40 Focus : CIS 34 Foreign Collaboration/Investment 118 Foreign Currency Accounts 969 Foreign Currency Pre-Shipment Credit (FCPC) 513 Foreign Embassies/High Commissions in India 1151 Foreign Exchange Management Act, 1999 (FEMA) 119 Foreign Exchange Risk Management 538 Forex Risk Management, Check List on 540 Forfaiting Finance (A new Financing Option for Indian Exporter) 528 Forfaiting 968 Form APR 616 Form EFC Application for Opening Foreign Currency Account with a Bank in India or Abroad by Exporters 972 Form ETX Application Permission to Extend the Period for Realisation of Export Proceeds 970 Form GR 691 Form HCertificate of Export for Sales Tax Exemption 1084 Form of Business Establishment, Choice of the 111 Form of Quotation of Spot Rates by Banks 536 Form PP 696 Form SDF 695 Formation of Business, Other Steps in 114 Forms of Addresses in Four Languages 229 Forward Contracts 539 Forward Contracts, Minimisation of Exchange Risks by Booking 541 Forwarding Agents, Action by 780 Free Exports 291 Free Movement of Export Goods 292 Free of Cost Exports 301 Free Sale and Commerce Certificate for Medical Devices/Equipment etc., Issue of 601 Freight Investigation Bureau 1144 From Where to obtain Market Reports on Specific Products 126 Fumigation 560 Functions Involved in Export Process 124 Furnishing of Returns in Respect of Exports in Non Physical form 301 Garment Export Entitlement Policy 2000-2004, Text of 349, 364 Gem & Jewellery Units , Relevant Extracts from the Customs Notification No. 52/2003 Dt. 31.3.2003 regarding 412 Gem and Jewellery Export Promotion Schemes Changes made in the New Exim Policy 2002-07 409 Gems, Precious and Semi-Precious Stones, etc. Imports under Replenishment Licences issued under Exim Policy 1997-2002 Clarification for Benefit of Notification No. 60/2002-Cus. 411 General Agreement on Tariffs and Trade (GATT) 1994 90 General Agreement on Trade in Services (GATS) 95 General Guidelines on Exim Banks Buyers Lines of Credit 521 Generalised System of Preferences (GSP) 84 Generating Inquiries 191 Getting Addresses of the Overseas Buyers 129 Gifts/Spares/Replacement Goods 301 Global System of Trade Preferences (GSTP) 77 Gold/Silver/Platinum Jewellery, Schemes for 386 Gold/Silver/Platinum, Alloys, Findings and Mountings of Gold/Silver/ Platinum and Plain Semi-Finished Gold/ Silver/Platinum Jewellery Imported by Nominated Agencies or Status-Holders under the scheme for export against supply by Foreign Buyer 4 0 5 Golden Rules for Successful Exporting 141 Goods Eligible for Finance 527 Goods in respect of which Commercial Export Credit may be offered by Indian Exporter, List of 347 Government Trade Missions 1144 Grantee Organisations (Export Promotion Councils) under the MDA Code, List of 1072 GSP Certificate 732 GSP Form 613 GSTP Form 604 Handing Over Negotiable Copy of Bill of Lading to Master of Vessel/ Trade Representative 963 Hard Disk 231 Hazard Analysis Critical Control Point (HACCP) System 571 Health/Veterinary/Sanitary Certificates 731

Contents Index Subject

Hedging Translation Exposure/Balance Sheet/Profit and Loss Figures5 4 0 Hints for a Perfect Price List 180 Hints for New Exporters-for Marketing 143 Horticulture and Floriculture Products, Fruits and Vegetables, Processed Fruits and Juices and other Miscellaneous Products 9 How does SIDBI assist small-and medium-sized exporters in export financing 1131 How to Assess a Country 128 How to Determine whether the Price Quoted is Competitive 185 How to Export ? 138 HS Codes for Products Eligible for Transport Assistance Scheme 1 1 0 0 Identification 190 Identity Cards 297 IE Codes Standard Codes for Exempted Categories Importers and Exporters under ICES 783 Implementation of EDI by Directorate General of Foreign Trade 243 Import and Export Procedure at ICD, Jamshedpur 889 Import and Export through Courier 806 Import Finance 515 Import of Capital Goods 979 Import of Gold, Silver and Platinum by the Nominated agencies under various Gold, Silver and Platinum Jewellery Export Promotion Schemes 407, 408 Import on Export basis 291 Import Promotion Officers in Foreign Countries 1146 Import Promotion Offices and Similar Organisations Abroad 164 Import/Export of Samples 300 Import/Export through Courier Service 300 Importer-Exporter Code Number 291 Importer-Exporter Code Number, Format of 275 Incentives to Small and Medium Exporters 1130 Income Tax Exemptions/Deductions 1088 Indemnity Bond 619 India Trade Promotion Organisation (ITPO) 1131 Indian Council of Arbitration (ICA) 1141 Indian Diamond Institute 1143 Indian Embassies/High Commissions Abroad 1161 Indian Institure of Packaging (IIP) 1140 Indian Institute of Foreign Trade (IIFT) 1139 Indian Institute of Packaging, Mumbai 1131 Indian Investment Centre 1144 Indian Joint Ventures & Wholly Owned Subsidiaries Abroad 973 Indian Trade Promotion Organisation 1141 Indirect Exporting 138 Indo-Europe Trade 62 Indo-Latin American Trade 68 Indo-Sri Lanka Free Trade Agreement 83 Industries (Development and Regulations) Act, 1951 117 Information regarding Specific Commodities, Obtaining 125 Initial Attack 142 Inland Transport Assistance Scheme for Export of Agricultural Products & Processed Food Items 1097 Inspection and Certification Agencies, List of 590 Inspection, Comparative Advantages & Disadvantages of Three Systems of 560 Inspection, Procedure for 557 Institutional Framework for Supporting Export from Small Industries1130, 1147 Instructions to the Bank 944 Insurance Policy/Certificate 954 Inter-Bank and Merchant Rates 535 Interest on Export Credit (Foreign Currency) 501 Interest on Export Credit 491 International Agencies for Inspection 560 International Business Negotiation 177 International Marketing Communications 192 International Marketing Research 137 International Product Policy and Planning 135 International Trade Conferences 76 Internet Sources 129 Internet 231, 233 Interpretation of Policy 290 Interviews with Authorised Officers 297 Intimation for Inspection 587 Investment in Foreign Securities other than by way of Direct Investment 976 Invoice 719, 953 IS/ISO 9000 (Series)/ISO 14000 (Series)/WHOGMP/HACCP/SEI CMM Level II and other Certification Agencies, List of 592 ISO 9000 and Harmonised Standards 561 ISO 9000 Series 561 Items under Restraint to Quota Countries, List of 382 ITPO Offices & Their Addresses 1150 Jobbing, Repairing etc. for re-export 295 Journals/Periodicals 131 Jurisdiction of Licensing Authority and List of Nominated Agencies for the purpose of Gem and Jewellery Export Promotion Scheme 4 2 6 Jute External Marketing Assistance 1110 Key Negotiating Points Know Your Market 181 132

xxxv
Labelling for Textiles 620 Labour Laws 121 Language 217 Languages Certificate 731 Legal Agreement/Undertaking, Form of 421 Legal Requirement 943 Legalised/Visaed Invoice 729 Letter of Credit Checklist and Guide for Exporters 951 Letter of Indemnity 945 Letter to Trade Missions and Agencies 218 Letterhead 217 Licence Agreement for use of EAN Article Number 1075 Licence/Certificate/Permission not a Right 291 Licensing Authorities and their Jurisdiction, List of 266 List of Commodities notified under Export (Quality Control and Inspection) Act, 1963 & under the Purview of Inspection by the Directorate of Fruits & Vegetables Preservation, List of 586 Long Term Working Capital Programme for Export Oriented Units 5 1 4 Maldives 58 Mandatory Certification of Goods and Services by Russian Federation 732 Manner of Payment for Export in Certain Cases 958 Manner of Payment of Export Value of Goods 958 Manner of Receipt in Foreign Exchange 958 Manufacturers Certificate 731 Manufacturers/Suppliers Quality/Inspection Certificate 731 Marine Insurance Declaration 685 Marine Products 13 Marine Products Export Development Authority 1143 Market Access Initiative (MAI) 293, 1064 Market Information through Internet, Obtaining 134 Market Research 178 Marketing Development Assistance Scheme (MDA) 1054 Marking 626 Master Document -I 740 Master Document-II 743 Mate Receipt 717 Measures Announced in the Exim Policy for 2002-03 27 Measures Announced in the Exim Policy for 2003-04 24 Mechanics of Foreign Exchange Operations 538 Methods of Payment 941 Ministry of Commerce 1137 Movement of Export Cargo by Containers/Trucks from Hinterland to Ports/Aircargo Complexes 795 Movement of Export Cargo from One Port to Another by Rail Procedure 796 MPEDA Offices, List of 1129 MTD Format Released 756 Multimedia : Effective Tool for Export Marketing 230 Multimedia for Exhibitors 232 Multimodal Transportation of Goods 755 Name & Address of One-man Export Promotion Cells Created in Ministries National Awards for Public Recognition of Outstanding Export Performance National Centre for Trade Information Need for more information Negotiating Plan Negotiating Strategies Negotiation of Documents under Letter of Credit Negotiation of Export Documents drawn under Foreign L/Cs Negotiation with Buyers, Guidelines for Negotiation Negotiation Phase Nepal Netting off of Export Receivables against Import Payments - Units Special Economic Zones (SEZs) New Media and Fairs & Exhibitions Niryat Bandhu Niryat Bandhus for Export Promotion Activities in the States No seizure of Stock Non-Financial Services Non-Preferential Non-Tariff Barriers North America Free Trade Agreement (NAFTA) North-East Asia 1176 1147 1141 137 177 178 948 490 141 181 179 58 in 967 231 1146 1175 292 472 299 75 65 60

Objectives : What, Where and How? 122 Offsetting of Export Proceeds 301 One-Man Export Promotion Cells in Government Departments 1146 On-Line Electronic Transfer Scheme 374 Open Account Trade 943 Opening, Holding and Maintaining an Exchange Earners Foreign Currency Account 969 Option Contracts 547 Organisation of Shipping Services and Structure of Freight Rates 7 6 3 Other Export Promotion Organisations 1147 Overdue Bills, Follow-up of 964 Overdue Foreign Currency Bills, Treatment for 490 Overseas Investment Finance 507 Overseas Investment Insurance 462 Overseas Projects 22 Overseas Sales Agent 138 Own Your Wagon Scheme 752

xxxvi
Packaging 632 Packing Credit Guarantee 459 Packing List 731, 955 Packing 639 Pakistan 59 Part Drawings 962 Participation in International Trade Fairs 205 Participation in Trade Fairs : Activity Coordination Chart 207 Participation in Trade Fairs Abroad 968 Parties to a Letter of Credit 948 Partnership Firm 111 Payment for the Export 961 Payment of Claims by ECGC 965 Payment of Freight Charges through Bank Drafts 763 Payment of Rly. freight through Bank Cheques against Bank Guarantee at the Booking Station 763 Payment Risks 434 Payment through ECGC cover 300 Penalty 291 Period within which Export Value of Goods/ software to be Realised9 5 9 Personal Carriage of Export/Import Parcels 392 Phases of Negotiations 179 Pilot Test House (PTH), Mumbai 1131 Points to Remember 177 Politeness 218 Post Parcel Receipts 955 Post-negotiation Phase 180 Post-Shipment Export Credit Guarantee 460 Post-Shipment Export Credit in Foreign Currency 499 Post-shipment Finance in Rupee 487 Precautions while writing to a Potential buyer for the First Time 218 Preferential Trading Arrangement 594 Preliminaries 122 Pre-negotiation Phase 179 Pre-Receipt 1078 Prescribed Dates for Submission of Claims 1105 Pre-Shipment Credit in Rupee 482 Pre-Shipment Export Credit in Foreign Currency 496 Preshipment Export Documents and Concerned Commercial Parties & Government Bodies/Departments 733 Preshipment Inspection, Compulsory 552 Pre-Shipment Inspection, Types of 556 Price of Export Product, Factors that Reduce 184 Price of Export Products, Factors that Increase 184 Price Package 180 Price Quotations 188 Pricing Vs Costing 184 Principles of Restriction 290 Printed Price Lists 218 Printed Product Brochures 218 Priority in Rail Movement 750 Priority in Wagon Allotment for Genuine Exporters 751 Private Bonded Warehouses for Exports 292 Private/Public Bonded Warehouse 393 Procedure at Dashrath, Baroda for Export of Containerised Cargo from ICD 861 Procedure at ICD, Ajni, Nagpur 867 Procedure at ICD, Aurangabad 878 Procedure at ICD, Hyderabad 859 Procedure at ICD, Rudrapur 868 Procedure at Internal Container Depots (ICD) (Dry Ports) 858 Procedure for Examination and Stuffing of Export Cargo Consignments outside the Inland Container Depot, Madurai and in respect of Containers brought directly from Gateway Ports 884 Procedure for Examination and Stuffing of Export Cargo Consignments outside the Inland container Depot, Salem and in respect of Containers brought directly from Gateway Ports 885 Procedure for Examination and Stuffing of Export Consignments Outside the Docks 879 Procedure for Export of Goods from Kandla Port through Gateway Ports like Mumbai, J.N.Port etc. from Kandla as Gateway Port 8 6 3 Procedure of Trans-shipment of Export Cargo from Gateway Ports like Chennai and JNPT 863 Procedure to be followed at ICD Dighi and Lohegaon Airport in respect of Clearance of Specified Goods for Export 872 Procedures of International Marketing Research 137 Processing of all categories of Bills under EDI System in Chennai 8 5 2 Product Presentation 136 Product Requirement 134 Product Warranty and Service 136 Production Equipment Finance Programme 506 Profile of Exporter/Importer 274, 296 Proforma for Application for Recognition as an Approved Organisation/Trade Body 1074 Proforma for Opening of Warehouse/ Foreign Office in Latin American Countries 1072 Proforma Invoice 719 Proforma of Chartered Accountants Certificate 1123 Programme for Export Facilitation 511 Programme for Financing Export Vendor Development (EVD) 511 Programme for Financing Research & Development 515 Project and Service Exports, Recent Changes made in RBI Instructions regarding 330 Project Exports (Exports of Turnkey/Civil Construction, Consultancy and Technical Services) 329 Project Exports, Performance of 329

Contents Subject Index

Promotional Programmes 519 Proposal for a Shipment (Comprehensive Risks) Policy/Small Exporters Policy 466 Public Sector Undertakings 1144 Purchase of Export Bills drawn under Confirmed Contracts 490 Quality Certification 301 Quality Complaints/Disputes 294 Quality Control, Preshipment Inspection and ISO-9000/BIS 14000 5 5 2 Quality Systems Certification 571 Quantitative Restrictions, Questions and Answers on 86 Rate of Exchange 535 Readiness to Cope with Pressures 122 Realisation of Export Proceeds 292 Receipt of Payment by ECGC 947 Reduction in Invoice value on account of Prepayment of Usance Bills 964 Reduction of Value 964 Refund of Export Proceeds 968 Regional Directories 131 Registration Form EAN Article Numbering 1078 Registration with Export Promotion Councils, etc. 260 Registration with Regional Licensing Authorities (Obtaining IEC Number) 256 Registration with Sales Tax Authorities 262 Registration-cum-Membership Certificate 293 Registration-cum-Membership Certificate, Form of 286 Regulatory Documents 737 Reimbursement of CST on supplies made to EOUs/EHTP and STP Units 1082 Replenishment for Gem & Jewellery 415 Replenishment Licences for Gem & Jewellery Exporters 384 Replenishment License for Import of Consumables 393 Replenishment Scale for Gem Rep Licence 423 Representatives of State Govts Export Corporations in New Delhi 1 1 7 3 Research 142 Research/Testing Laboratories/Institutes 1147, 1183 Reservation of Space 750 Restricted and Unrestricted Credits 950 Restricted Goods 290 Return of Documents to Exporters 968 Return on Export of Jute & Jute products During the Month 1114 Revalidation of Import/Export Licence/Certificate/Permissions 296 Revised Drawback Declaration Form for Exporters under EDI System in Cochin 820 Revocable or Irrevocable Letters of Credit 948 Revolving Credit 949 Risk Management Systems in Banks Guidelines on Country Risk Management 437 Risks of Expanding into Domestic or Foreign Markets 122 Risks Unique to Exporting 122 Role of Freight Forwarding Agents in Shipping the Goods 749 Russia 64 SAARC 60, 81 Sales Tax Exemption 1080 Sales/Distribution Channels in Different Markets 139 Salutations 217 Sample Approval Letter 1067 Sample Letter to a Foreign Trade Representative Stationed in the Exporters Country 227 Samples & Exhibits, Sending/Exporting 219 Samples, Booking at Post Offices 221 Samples, Characteristics of Good Samples 219 Samples, Commercial Samples vs. Gift Parcels 220 Samples, Export of Free Samples by Air/Sea but other than by Post2 2 1 Samples, Export of Garment Samples 220 Samples, Export of Samples by EOU/EPZ/EHTP/STP Units 222 Samples, Export of Samples by SEZ Units 222 Samples, Export of Samples 220 Samples, Foreign Exchange Formalities for Export of Samples 220 Samples, Gems & Jewellery Samples 222 Samples, Limits on Dimensions 221 Samples, Limits on Weight 221 Samples, Packing 221 Samples, Personal Carriage of Samples 222 Samples, Samples for Testing Abroad 222 Samples, Trade Samples against Payment 222 Schedule of Export Charges 766 Scheme of Refinance Assistance 1132 Scope Shipping Standing Committee 1143 Searching on the Internet 231 Section-wise Distribution of Work and their Codes in DGFT 245 Self Addressed Stamped Envelope 296 Self Declaration 1079 Sell the know-how/products 141 Selling through Agents : The law in Middle East Market 199 Sequence of Activities for Participating Organisation 207 Service Exports 295 Setting Exchange Rates 538 Setting up of Private/Public Bonded Warehouses for Import and Re-Export of Cut and Polished/Coloured Gem Stones, Rough Diamonds, etc., Ministry of Finance Instructions regarding 414 Shipment Advice 779

Contents Index Subject

Shipment Advice to Importer 763 Shipments Lost in Transit 964 Shipping Advice 732 Shipping Bill for Export of Duty Free Goods 907 Shipping Bill for Export of Goods under Claim for Duty Drawback 9 1 3 Shipping Bill for Export of Goods under Duty Entitlement Pass Book Scheme 921 Shipping Bill/Dock Challan/Export Application for Export of Goods under Claim for Duty Drawback Port Trust Copy 935 Shipping Bills/Bills of Entry Status Ascertainment through SMS 7 8 5 Shipping Instructions 763, 778 Shipping Order 732, 750 Shipping Terms, Glossary of 767 Short Shipment Form 732 Shut Out Advance 732 Shut Out Shipments and Short Shipments 690 Silver, Import of Export against supply by Foreign Buyer Bank Guarantee to be calculated at the rate of Duty Applicable to Nominated Agencies 411 Silver/Gold/Platinum imported as Replenishment for Export through Exhibitions/Export Promotion Tours/Export of Branded Jewellery or Imported for Export against Supply by Nominated Agencies4 0 6 Simplified procedure for Clearance and examination of export and import cargo at Air Cargo Complexes 794 Skills of Correspondence 217 Small Industries : Supporting Institutions 1133 Small Industries Development Bank of India 1131, 1135 Small Industries Development Corporation (SIDC) 1130, 1143 Softex Form 700 Software Exports 51 Software Technology Parks/Electronic Hardware Technology Parks 4 2 9 Sole Proprietorship 111 Some Well Known Credit Information Agencies Abroad 160 Sources of Information 144 Sources of Information and Statistics on Foreign Markets 125 South Asia and SAARC 57 South East Asia 61 Special Economic Zones Scheme 431 Special Factors for Export Pricing 184 Special Financial Package or Large Value Exports Rupee Credit Interest Rates 495 Special Focus on Cottage and Handicraft Sector 294 Specialised Bodies/Associations/Govt. Offices 1181 Specimen Business Letters 219 Specimen Letter asking Quotations from Manufacturers 225 Specimen Letter for Arranging Insurance of Goods 226 Specimen Letter for Making Arrangements with the Shipping Company 225 Specimen Letter to a Prospective Agent/Distributor Abroad 226 Specimen Letter to a Trade Representative 227 Specimen Letter to an Import Promotion Institution Abroad 228 Specimen of Acknowledgement to a Letter from a Foreign Buyer 2 2 3 Specimen of Acknowledgement to a Letter from a Foreign Buyer and Providing Quotation & Samples 224 Specimen of Acknowledging Indent and Sending Proforma Invoice2 2 4 Specimen of Introductory Letter to Importers Abroad 223 Specimen of Requisition Letter for Opening of a Letter of Credit (L.C) 225 Speedlink Quality Service Network 752 Spices Export Promotion Schemes 1106 Spot and Forward Rates 536 Sri Lanka 59 Stages of Negotiations 177 Standard Policies 440 Standardisation vs. Adaptation 136 Standardised Preshipment Export Documents 736 State Codes for State or Origin of Export Goods, Filling of 782 State Government Export Trade Corporations 1173 State Government Representatives in New Delhi 1173 State Liaison Officers 1146 State Trading 291 States Cell 1145 Status Certificate 294 Status Report of Overseas Buyers from ECGC, Indian Banks and ITPO 132 Steps in Organising Buyers-Sellers Meetings 193 Submission of Certified Copies of Documents 299 Submission of Export Documents 960 Summary of Shipment and Claim for Inland Transport Assistance 1 1 0 2 Suppliers Credit for Deferred Payment Exports 519 Supply of goods from units in Special Economic Zones (SEZs) to units in Domestic Tariff Area (DTA) 969 Tariff Barriers 75 Technology Upgradation Fund Scheme for Textile and Jute Industries 522 Temporary Export of Goods for Exhibitions and Fairs 902 Ten Commandments for Exporters 143 Tender of Documents 953 Tendering the Documents for Negotiation under Letter of Credit 945 Terms and Conditions for Collection/Negotiation of Documents 946 Terms and Conditions of a Licence/Certificate/Permission 290 Territorial Jurisdiction of Licensing Authorities 295 Test Houses 294 Test Marketing of Products 142 Textiles Committee 1143

xxxvii
Third party Exports 292 Thrust sector 295 Time Limit for Submitting the Documents 945 To Whom to Export ? 129 Top Management Commitment 123 Towns of Export Excellence 293 Trade Barriers 75 Trade between India and Sub-Saharan African Countries 72 Trade Discount 961 Trade Disputes Affecting Trade Relations 294 Trade Facilitation 33 Trade Fairs, Collection of Returned Exhibits 212 Trade Fairs, Common Mistakes 208 Trade Fairs, Demurrage 212 Trade Fairs, Despatch of Consignments 211 Trade Fairs, Disputes 213 Trade Fairs, Documentation 211 Trade fairs, EEFC Account Holders 213 Trade Fairs, Excise Duty 212 Trade fairs, Export through Exhibitions/Export Promotion Tours/ Export of Branded Jewellery 214 Trade Fairs, Facilities given by ITPO 210 Trade fairs, Import/Export of Exhibits allowed without a Licence 214 Trade fairs, Important Trade Fairs/Exhibitions 215 Trade Fairs, Labelling of Exhibits and Captions 211 Trade Fairs, Marking 211 Trade fairs, MDA Grant 213 Trade Fairs, Minimum Space 210 Trade Fairs, Operation of the Booths 212 Trade Fairs, Packing/Packaging of Exhibits 211 Trade Fairs, Participation Charges 210 Trade Fairs, Pre-shipment Inspection 212 Trade Fairs, Procedure for Participation 210 Trade fairs, RBI Regulation regarding Participation in 213 Trade Fairs, Re-import of Exhibits from Abroad-Duty free Re-import 2 1 2 Trade Fairs, Return of Exhibits 212 Trade Fairs, Sold Exhibits 212 Trade Fairs, Tips for Attending 209 Trade Finance 33 Trade in Agriculture Uruguay Round and After, Questions and Answers 92 Trade Information Centres 162 Trade Point 1145 Trade Points Around the World, List of 1168 Trade Representatives 1144 Trade with Neighbouring Countries 291 Trade with Russia under Debt-Repayment Agreement 291 Trading Corporations 1181 Transfer Guarantee 461 Transfer of Documents 945, 960 Transferable Letter of Credit 949 Transhipment Bill 732 Transhipment Permit 732 Transit Credit 949 Transit Facility 291 Trends in Exports 2 Turnover Policy and Standard Policy, Difference between 450 Understanding Export 122 Undertaking 1114 Uniform Customs and Practice for Documentary Credit 948 United Nations Conference on Trade and Development (UNCTAD) 7 8 US Special Customs Invoice 725 Verification Note for Persual of MDA Committee Virtual Fairs & Exhibitions Vital to Keep Up with IT 1071 232 231

Warehousing Facility 297 Weight Note 731 West Asia and North Africa (WANA) Region 70 What do buyers look for when making a buying decision? 182 What to Export? 125 Where to Export ? 126 Why Export Import Business Fail? 143 Working Capital Term Loan Programme for Export Oriented Units (WCTL) 513 World Directories 131 World Trade Agreements on Indian Trade, Impact of 102 World Trade Centres 165 World Trade Organisation (WTO) 76, 90 Write off of Unrealized Export Bills 965 WTO Bodies, Status of Negotiations at Various 98 WTO Safeguard Measures 104 WTO Secretariat 102