Export of Goods Through Post
Export of Goods Through Post
The goods that are not prohibited or restricted for export as per FTP can be exported by post through specified Foreign Post Offices or Sub-Foreign Post Offices or Export Extention Counters. The goods under the claim of Drawback can also be exported through posts but not under export promotion schemes like DEPB, Advance License, DFRC, EPCG etc. Commercial samples, prototypes of goods and free gifts can also be exported via post. In this article, we look at the procedure and regulations pertaining to export of goods through post.
Legal Provisions and Exemptions for Postal Exports
- The rate of duty and tariff value that is applicable to any goods that are exported by post shall be at the rate and valuation in force on the date on which the exporter delivers the goods to the Postal Authorities for exportation.
- Bona fide commercial samples and prototype of goods that are supplied free of charge of a value not more than Rs. 50,000, if subjected to any prohibition or restriction for export under FTP and that does not involve the transfer of foreign exchange, can be exported through posts.
- Bona fide gifts of articles for personal use of a value that are not more than Rs. 25,000 and are not subject to any prohibition or restriction on their export under FTP and that does not involve the transfer of foreign exchange, can be exported through posts.
- Exports made by post of Indian and Foreign currency, bank drafts, cheques, National Saving Certificates and other negotiable instruments that are not allowed unless the goods carry a valid permit that is issued by an authorised dealer in foreign exchange in India.
- Indian currency notes of Rs. 500 and Rs. 1,000 denominations are banned by the Government of Nepal. Hence, the Indian currency notes of Rs. 500 and Rs. 1,000 denominations are not permitted for exportation to Nepal.
- Restrictions/ prohibitions under the FTP and the Customs Act, 1962 is applicable for exporting various articles by post. Some of these articles include arms and ammunition, explosives, inflammable material, intoxicants, obscene literature, certain crude and dangerous drugs, antiquities, narcotic drugs, etc.
- Export of purchases that are made by foreign tourists is allowed through posts if there is proof that the payment has been made in foreign exchange.
Procedure for Postal Exports
- Articles that are exported by posts have to be covered by a declaration in the prescribed form.
- If exports made by posts are more than Rs. 50 and if the payment has to be received, then the articles have to be mentioned on the exchange control form, which is the P.P. Form.
- If the postal article is covered by a certificate that is issued by the RBI or by an authorised dealer in foreign exchange that the export does not evolve any transaction in foreign exchange up to Rs. 500, the declaration in a P.P. Form is not required.
- The letters and parcels that are produced by the postal authorities to Customs Officer in the Foreign Post Office. After conducting the preliminary survey of the letters and declarations, the concerned officer makes sure that the prohibited goods like narcotic drugs, foreign exchange, currency, etc are not sent through the parcel. The suspected parcels would be detained and other letters and parcels are handed over to the postal authorities for sending to their destination.
- The detained parcels will be opened by Customs Officer in the presence of the postal authorities and if the same does not contain any prohibited or restricted goods and if there is no mis-declaration of value or drawback, the parcels are repacked and handed over to the postal authorities for export.
- If the detained parcels hold restricted or prohibited goods or mis-declared goods for a purpose to avail inadmissible export benefits, the case will be investigated and adjudication proceedings are initiated.
Procedure to Claim Drawback on Export Through Post
The procedure to claim Drawback through posts is mentioned in Rule 11 of Customs and Central Excise Duties Drawback Rule, 1995. The outer packing of the consignment will be labelled ‘Drawback Export’ and the exporter delivers the postal authorities a claim in Annexure I to the given rules in quadruplicate. The date of receipt of the said claim to the concerned officer of CUstoms is relevant to the date for filing of claiming purpose as per Section 75A of the Customs Act, 1962.
If the claim is incomplete, a deficiency memo will be issued within 15 days and if the exporter complies with the deficiencies within 30 days, an acknowledgement will be issued. The date of issue of acknowledgement would be considered as the date of filing the claim for the purpose of Section 75A of the Customs Act, 1962. The drawback for exports through posts is sanctioned in the Foreign Post Office.
Drawbacks of Goods Re-Exported Through Post
The goods that are imported on payment of duty can be re-exported through posts and the applicable rates of Drawback under Section 74 of the Customs Act, 1962 is claimed. The Drawback of the duty has to be paid when the import is permitted abiding by the conditions of Section 74 of the Customs Act, 1962 and Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995. The concerned Customs Officer at the Foreign Post Office shall be satisfied with the identity of the goods that are re-exported and if cannot be established, no drawback is payable.
The procedure to be followed for claiming Drawback on goods that are re-exported through posts is given below.
- Rule 3 of Re-export of Imported Goods Rules 1995 (Drawback of Customs Duties) needs an outer packing of the parcel to carry the words ‘Drawback Export’ and the exporter gives a claim according to Annexure I of the Rules in quadruplicate to the Postal authorities. The date of receipt of the given Annexure I by Customs from Postal authorities would be the date of receipt of the claim for the purposes of Section 74 of the Customs Act, 1962 and the exporter would be informed.
- If the claim is incomplete, a deficiency memo would be issued in 15 days and if the claim is filed again by the exporter after agreeing with the deficiencies within 30 days, the receipt would be acknowledged and this date would be treated as the date of filing the claim for purposes of Section 74 of the Customs Act, 1962.
- The drawback under Section 74 of the Customs Act, 1962 would be paid by the Customs Officer in Foreign Post Office.
Re-export of Partial Consignment
- If the addressee takes the delivery of parcels on payment of duty and then wishes to return to the sender, they can do it under the claim for Drawback after following the prescribed procedure.
- Allowing an addressee to open a parcel and to take the delivery of part contents on payment of duty and repack the balance of the contents for re-export without the payment of duty thereon that is not authorised and irregular.