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Registration Process

Obtaining Reserve Bank Code number Registration with Export Promotion Councils or Regional Licensing Authority Importer Exporter Code Number

Compulsory Quality Control


Objectives of quality Control for exports: Promoting and ensuring the image of Indian goods exported to other countries Ensuring goods of assured quality only move into the export markets Observing conformity of rules and regulations of the importing countries.

Quality Standards
Unless quality characteristics are assessed specified and measured, quality control cannot be implemented. Specifications can be given by the buyer himself. For several products ,there are Indian standards, specified by the Indian Standards Institution International Standards Organization (ISO), International Electro Chemical Commission(IEC)

Pre-shipment quality Inspection

Export (Quality Control inspection) Act, 1963.

This Act, which is intended to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith, the central government to:

Notify commodities which shall be subject to quality control or inspection or both prior to export. Specify the type of quality control or inspection which will be applied to a notified commodity Establish, adopt or recognized one or more standard specifications for a notified commodity.

Institutional set up for quality control and inspection


Export Inspection council Export Inspection Agencies Other Agencies: Indian standards Institution, National Test House and private agencies like Lloyds register in Shipping ltd.

Methods of Quality/Inspection:
2 Methods: In-process Quality control. The manufacturers themselves are entrusted with the entire responsibility of producing export consignments conforming to the standard specification by exercising requisite control on various levels like raw material, preservation control and packaging control. E.g paints and printing ink

Methods of Quality/Inspection
Consignment-wise Inspection: Export consignment in packed condition is subjected to detailed inspections to ensure conformity to recognized specification. If it is found export worthy, a certificate is issued to the exporter.

Export production and packing


Packing be given due care and pay greater importance because the goods have to reach a long distance, traveling for a number of days and handling by many people. Packed properly, necessary packing material used and to ensure commercial acceptable condition at a standard quality.

Packing
Packing refers to the external casing and material used to transport the product or a number of products. If the cargo is too heavy and large in size: transported by sea and packing may be done in wooden case or a crate. Lighter weight and short life span product may be dispatched by air.

Packing must have the following features


Easy to handle at all stages of transportation Protection : protect export packing will protect the product against temperature, climate conditions and time involved in transportation and storage. E.g : Seafood is packed in thermo coal with ice cubes and saw dust and flowers in bamboo baskets.

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Storing : Easy to store. Markings on the package help in placing at the right position to avoid damage. Materials used according to product features, traveling time, weather condition, method of Transportation and handling of goods. Redistribution: each product has to be prepacked in accordance with the buyers specifications. e.g Dell.

Customs and Shipment procedure


The export goods have to go through various formalities before they are put on board the ship or an aircraft. Some of the important formalities are mentioned here: Exports by Air, Sea and Post Post: Book the goods from any post office subject to the provisions of imports and Exports Control regulation Act

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Samples of value not exceeding Rs. 200 can be sent by post without any formal approval. When samples are more than Rs 200 and less than Rs 4000, a certificate from the bank to the effect that there is no foreign exchange involved will be necessary. When the value is more than Rs 4000, a no-objection certificate from the RBI is required.

Documentation required
Export license, if required Custom declaration form

Customs and shipment procedures


There are customs house approved clearing and forwarding agents who take up the work: getting the goods passed through customs and other formalities and organizing the shipping space. Shipping space should be booked in advance and give all the details of the product. When the request of the exporter is accepted, the shipping company or the agent issues a shipping order containing instructions regarding loading and shipping. A copy is sent to the Commanding Officer of

Import conditions for claiming the rebate are:


Goods are exported not more than two years after removal from the producing factory or within shorter period as may be specified. For claiming the rebate of duty : the application should be made within 6 months if the export is by sea or air (from the date of loading or ship leaving India). If exports are by land application should be made within 6 months from the date on which they cross the frontier.

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In the case of goods liable for excise duty and export, application for removal of goods should be made in Form AR4 where the examination is required to be done by central excise officials at the export factory. The remaining officer will put a seal on the packages and make endorsement of all the copies of form AR4. This form is used when goods are to be examined at the port.

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At the port of export, customs officials check the packages with the reference to the description of AR4. After the goods leave the country, the exporter has to make an application to the Finance Ministry producing copies of AR4, original copy of the gate pass and application for refund.

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Export under bond: In this case the exporter has to execute a bond in the presence of Superintendent of Central excise, the gate pass should be in another form indicating the rate of duty and the amount of duty and with the words Goods for export on the top. Central excise Inspector examines the goods, seals the packages and makes endorsement.

Duty Drawback

Did you know that if you export goods you may be able to recover 99% of all Customs duties paid on any imported materials contained in those products? And you can do it for up to three years? As defined in Drawback Rules, drawback in relation to any goods manufactured, or processed or on which any operation has been carried out in India and exported, means the rebate of duty chargeable on any imported materials or excisable materials used in the manufacture of such goods in India.

Duty Drawback
Drawback is : (i) a refund of import (customs) duty paid on indigenous or imported inputs (raw materials, components, parts, packing materials, etc.) used in export products, (ii) a refund of duty of customs or excise paid on production inputs and not refund of duty paid on finished products.