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Legal Framework : Section 50 of the Indian Customs Act requires the exporter to file a declaration in a prescribed form and submit supporting documents to enable the customs authorities to check declarations made by the exporter. The objectives of the customs control are:
i) To ell sure that nothing goes out of the country against the laws of the land and that prohibitions and restrictions regarding outward cargo are duly enforced by the customs authorities;
ii) To ensure authenticity of the value of outward cargo according to the customs valuation rules to check over and under invoicing;
iii) To assess and realise export duty /cess / charge according to the Customs Tariff Act and any other fiscal legislation;
iv) To check that all the relevant regulatory provisions enforced by various authorities in the country have been duly complied with in respect of export; and
v) To provide export data through the customs returns.
KINDS OF PERILS : The cargo insurance policy can be as wide as to cover all possible kinds of risk and losses to which cargo could be exposed in transit. The event which lead to l
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Remittances Connected with Exports : Exporters are permitted to retain upto 25% (50% in the case of EOUs located in EPZI Software Technology Parks/Electronics Hardware Technology
Prohibition of Export : Export of all goods either directly or indirectly to any place outside India other than Nepal and Bhutan is prohibited unless the exporter furnishes to the
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TT (Telegraphic Transfer) Rate : Telegraphic Transfer rate may be either TT in detail. T.T. Buying Rate: This rate is applied for purchase of foreign currency by banks where cover
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Amount: The loan amount is decided on the basis of export order and the credit rating of the exporter by the bank. Generally the amount of packing credit will not exceed FOB value
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