Global Trade News

  STP (Software Technology Parks) and EOU ( Export Oriented Unit) procedures fall under import clearance formalities. How can one obtain re-warehousing certificates under import of goods or services under STP (Software Technology Parks) and EOU (Export Oriented Unit)? What are the re-warehousing formalities and how do they work under STP (Software Technology Parks) and EOU (Export Oriented Unit)? As mentioned above, the location of STP (Software Technology Parks) and EOU (Export Oriented Unit) units fall under the Customs Bonded Area under the Customs Department of that government. Each good or service being transported into the said area or moving inside or outside has to be informed to the Customs Department for fulfilling all the necessary formalities involved. Any goods or services that are consumed also must be informed and filed in a specific said format with proper accounts registers. Each goods/item must be filled in the register with inward and outward movement detai...

The Customs & Excise department issues the CT-3 form. This form is issued to the units that fall under STP (Software Technology Parks) and EOU (Export Oriented Unit). Form CT-3 is used for the procurement of indigenous capital goods or services locally, i.e. without any central excise duty. STP (Software Technology Parks) and EOU (Export Oriented Unit) units can directly apply with the help of a pro forma invoice of supplier along with green card for this form depending on the location of the STP (Software Technology Parks) and EOU ( Export Oriented Unit). Post the verification and completion of all the necessary documents, approval is given to issue form CT-3 by the Customs Department or authorities. Once the written entry is done in the records of the Customs Department and Central Excise Department, form CT-3 is issued in three sets. One copy is filed and kept in the records of the Customs and Excise Department and two copies of the forms are delivered to the STP (Softwar...

  As understood, an STP (Software Technology Park) unit falls under the Customs Bonded Area and any movement inside or out needs the required permission from the STP (Software Technology Park) and EOU (Export Oriented Unit). Inter Unit transfer usually means the movement or transfer of goods or services from one STP to another STP unit. This movement of goods from one STP to another STP can either be on permanent basis or loan basis. Each movement inward or outward as mentioned must be entered into the said register at the Customs office. This is for the supervision and monitoring for the Customs authorities. In simple terms, any transfer or movement of goods or services from one STP unit or EOU to another is called Inter Unit Transfer. Any movement of modification can be done only after necessary permissions are granted from the Customs authorities. Import goods or services that are locally procured will not attract any duty fee directly. The above said unit is not allowed to ...

  The full form of DTA is Domestic Tariff Area. In short, DTA or Domestic Tariff Area means a dedicated area or space which does not fall under the Customs Department. This term is generally used by goods or services that are exported or sent outside the country and goods or services that are imported from other countries. This term is also widely used where any form of duty or charge is levied on exported or imported goods or services. DTA or Domestic Tariff Area in the context of foreign trade /international business is when each EOU (Export Oriented Unit) or STP (Software Technology Parks) unit will have a Customs Bonded Warehouse, a space/area that is dedicated and falls under the control of the Customs Department. In case the exporter or importer wishes to transport the goods or services inside or outside the said warehouse, he/she would require the permission of the Customs/Excise Department. These goods or services then tend to attract duties or special charges. EOU’s or S...

  Once the goods or services are shipped, most exporters or sellers discount or negotiate their export bills in import export business with their authorized banks. This process is done by submitting all the important export documents like the BL (Bill of Lading)/AWB (Airway Bill), goods invoice, packing list along with other important export documents. Most world governments support exporters by providing financial aid such as loans against export documents with very low rate of interest especially for exporters. The bank then receives the amount of the said sale from importer or the overseas buyer on or before the due date agreed mutually between the indian exporter and the importer. In a situation where the export invoices are not realized due to various reasons even after 30 days of its maturity, the bank then has no other choice but to draw the advantage of low interest rate by crystallization or by delinking the invoices and charging them the commercial rate of interest. ...

  The meaning of the term Dry Port in import export business is an inland port or a make-shift port that is connected to the main seaport by road or rail. This happens when there is a concentration of Indian exporters and importers but there is no seaport in the vicinity. A dry port then comes to play where all the facilities of a seaport are present in the dry port. This concept of a dry port is to make it hassle free for exporters andimporters to do business with ease. All facilities like inland container depot, container freight stations etc. are all available at the dry port making it easy for exporters and importers. For instance, let’s take Raipur as an example, container freight stations have been set up by Central Warehousing Corporation at a distance of eight kilometres from Raipur. Because of the large number exporters in Raipur due its concentration of deposits and rice, it has great potential for exports.   Via the establishment of this dry port, exporters in...

If one has an IEC (Importer-exporter code), will he/she be able to import from all ports in India? An IEC (Importer exporter code) is a code that has to be obtained by either an Indian exporters or importers to perform business functions in India. An exporter or importer in India with an IEC (Importer exporter code) can export or import according to the terms and conditions that fall under the IEC (importer exporter code). These terms are attached to the Foreign Trade Policy of the Government of India. One can utilise all the ports situated in the In dian subcontinent. However, if one changes to a new port, respective ports have to be mentioned as “branch” in the IEC (importer exporter code). During documentation formalities, one has to mention the branches of the firm if any and also mention the ports that are going to be utilized to perform business operations. DGFT ( Directorate General of Foreign Trade) accordingly updates the Indian exporters /importers IEC (importer export...

  Any business brings with it a certain amount of risk and that is inevitable. It is the businessman’s responsibility to overcome those hurdles and succeed. When it comes to the export and import business, one of the major risks is associated with the loss or damage of goods. How to effectively overcome the risk of loss or damage of goods? Just as one would in any other scenario where a particular item needs protection from destruction or damage, in exports-imports too, insurance can save the seller/buyer from significant losses arising from risks associated with the loss or damage of goods. Whose responsibility is it to insure the goods – the Buyer’s or Seller’s? Depending on the shipment terms and conditions agreed upon by the buyer and seller, either party can opt to insure the goods. If it is an Ex Works (EXW) shipment, where the seller transports the goods to the buyer’s destination that is usually a factory or place of work, then the insurance on exported goods is cov...