Export Charges & Requirements

Export charges:
A limited number of items, mostly primary commodities or processed agricultural products, are subject to duties. Currently, the only products subject to an export tax (at the rate of 10%) are goat, sheep and bovine leathers. Products may also be subject to a minimum export price. The list of products subject to minimum prices includes basmati and non-basmati rice, cotton, and hard and soft cotton waste. Most minimum export prices are specified in dollars on an fob basis.

Settlement of Bills: The Government prescribes conditions for exchange control and settlement of bills related to exports under the authority of the Foreign Exchange Regulation Act, 1973. For normal commercial exports to all countries, except Nepal and Bhutan, exporters are required to complete the GR Form in duplicate. The GR Form covers exports not made by post.

With few exceptions, all exports must be declared on the appropriate form and the exporter's code number as assigned by the Reserve Bank of India must be shown on the form.

The payment arrangements are letter of credit, sight draft, time draft and shipment on consignment. The time limit for settlement of export proceeds, that is, the amount representing the full export value of the goods, is six months. A maximum of 15 months is allowed for exports to Indian-owned warehouses abroad.

Documents: The following documents are required for exports:

1. GR form;
2. export licence;
3. export declaration;
4. customs entry form;
5. customs invoice;
6. commercial invoice;
7. certificate of origin;
8. bill of lading/air waybill;
9. packing list.

Special documents may be required depending on the type of product or destination. Certain export products may require a quality control inspection certificate from the Export Inspection Agency. Some food and pharmaceutical product may require a health or sanitary certificate for export.

To cover products under GSP (generalized system of preferences) a certificate of origin may be required. The Export Inspection Agency, the various export promotion councils, chambers of commerce or the regional offices of the Chief Controller of Imports and Exports are the responsible bodies for issuing the certificate of origin.