Import Export from India Becoming Easier

The Government has taken several steps to improve the ease of business in India. Key amongst those measures are steps taken by the DGFT and Customs Department to make import-export procedures easy. This article examines some measures introduced to make import-export from India easy.

Fast Customs Clearance

The Customs Department has introduced a 24 x 7 customs clearance facility for goods covered under 'facilitated' Bills of Entry and specified exports, namely, factory-stuffed containers and goods exported under free shipping bills. This measure has resulted in faster customs clearance of goods, reduced time, and lower transaction costs.

Digital Signature to Reduce Paper Work

To reduce paperwork, enhance the use of automation, and reduce processing and transaction costs, the Customs Department has implemented the use of digital signatures. Customs process documents like Bills of Entry, Shipping Bills, Import General Manifest (IGM), Export General Manifest (EGM), and Consol General Manifest (CGM) can now be digitally signed and submitted online. Importers, exporters, customs brokers, shipping lines, airlines, or their agents have been given the facility to use Digital Signature Certificates for filing Customs process documents.

Reduction in Documentation

An importer/exporter in India is required to submit a commercial invoice and packing list along with the customs declaration form,m viz. Bill of Entry or Shipping Bill. The commercial invoice is used to assess the value of the import/ export goods,s while the packing list is used to calculate the duty and quantity. However, many identical data fields exist in commercial invoices and packing lists. Hence, it has been decided that if an importer/exporter submits a commercial invoice cum packing list, a separate packing list would not be required.

Duty Exemptions

In addition to some of the above measures to make import or export from India easier, the Government has also introduced the following duty exemptions:

Goods imported for the setting up Mega Power Projects are fully exempt from customs duties, subject to certain terms and conditions.
Bulk drugs used in the manufacture of the specified drugs have either been exempt from basic customs duty or attract a concessional rate of 5% basic customs duty, subject to actual user conditions under the relevant Customs Rules.
Specified road construction machinery imported for roadside construction is fully exempt from customs duties, subject to the condition that the importer shall not sell or otherwise dispose of the said goods for five years from the date of importation.
Life-saving drugs and medicines imported by an individual for personal use are fully exempt from basic customs duty and additional duty of businesses subject to the condition that the importer produces a certificate, in each case, that the goods are life-saving drugs or medicines issued by the specified Authority.

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Frequently Asked Questions

Common questions about Import Export from India: Simplified Procedures and Duty Exemptions.

The government has implemented several measures to facilitate import-export procedures, including 24x7 customs clearance for facilitated Bills of Entry and specified exports, introduction of digital signatures for customs documents, reduction in documentation by allowing commercial invoice cum packing list, and duty exemptions for specific goods like those imported for mega power projects, bulk drugs, road construction machinery, and life-saving drugs for personal use.

The 24x7 customs clearance facility for facilitated Bills of Entry and specified exports like factory-stuffed containers and free shipping bills results in faster customs clearance of goods, reduced time, and lower transaction costs for importers and exporters.

The use of digital signatures for customs documents like Bills of Entry, Shipping Bills, Import General Manifest (IGM), Export General Manifest (EGM), and Consol General Manifest (CGM) aims to reduce paperwork, enhance automation, and reduce processing and transaction costs for importers, exporters, customs brokers, shipping lines, airlines, and their agents.

Importers and exporters can now submit a combined commercial invoice cum packing list instead of separate documents, eliminating the need for a separate packing list. This measure reduces the documentation burden and simplifies the import-export process.

The government has introduced duty exemptions for certain goods, such as full customs duty exemption for goods imported for setting up mega power projects, concessional 5% basic customs duty for bulk drugs used in specified drug manufacturing, full customs duty exemption for road construction machinery imported for roadside construction (with conditions), and full exemption from basic customs duty and additional duty for life-saving drugs and medicines imported by individuals for personal use (with conditions).

The measures mentioned in the article, such as faster customs clearance, reduced paperwork, digital signatures, and duty exemptions for specific goods, can significantly improve the ease of doing import-export business in India. These initiatives can help streamline operations, reduce costs, and enhance competitiveness for new businesses venturing into the import-export domain.

Yes, to obtain full exemption from basic customs duty and additional duty for life-saving drugs and medicines imported for personal use, the importer must produce a certificate issued by a specified authority certifying that the goods are life-saving drugs or medicines.

Yes, the full customs duty exemption for specified road construction machinery imported for roadside construction is subject to the condition that the importer shall not sell or otherwise dispose of the said goods for five years from the date of importation.

The commercial invoice cum packing list serves two purposes for importers and exporters. The commercial invoice is used to assess the value of the import/export goods, while the packing list is used to calculate the duty and quantity. By combining these documents, the need for separate packing list documentation is eliminated, simplifying the process.

By implementing digital signatures for customs documents, stakeholders like importers, exporters, customs brokers, shipping lines, airlines, and their agents can submit documents online without the need for physical paperwork. This automation can significantly reduce processing times and associated transaction costs, leading to increased efficiency and cost savings.