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As per the Central Excise Tariff Act, excise duty is payable on the
materials used in manufacturing goods. The exporter, therefore, has to
apply to the concerned Excise Commissioner in the region with an
invoice.
If the Excise Commissioner is satisfied, he may issue the excise
clearance. But in many cases the government exempts payment of
excise duty or later on refunds it if the goods so manufactured are
meant for exports.
The idea underlying such exemption or refund is to provide an incentive
to the exporters to export more and also to make the export products
more competitive in the world markets.
The refund of excise duty is known as duty drawback. This scheme of
duty drawback is presently administered by the Directorate of Drawback
under the Ministry of Finance which is responsible for fixing the rates of
drawback for different products.
ix. Reservation of shipping space:
The exporting firm applies to the shipping company for provision of
shipping space. It has to specify the types of goods to be exported,
probable date of shipment and the port of destination.
On acceptance of application for shipping, the shipping company issues
a shipping order. A shipping order is an instruction to the captain of the
ship that the specified goods after their customs clearance at a
designated port be received on board.
x. Packing and forwarding: The goods are then properly packed and
marked with necessary details such as name and address of the
importer, gross and net weight, port of shipment and destination,
country of origin, etc.
The exporter then makes necessary arrangement for transportation of
goods to the port. On loading goods into the railway wagon, the railway
authorities issue a ‘railway receipt’ which serves as a title to the goods.
The exporter endorses the railway receipt in favour of his agent to
enable him to take delivery of goods at the port of shipment.
xi. Insurance of goods:
The exporter then gets the goods insured with an insurance company to
protect against the risks of loss or damage of the goods due to the perils
of the sea during the transit.
xii. Customs clearance:
The goods must be cleared from the customs before these can be loaded
on the ship. For obtaining customs clearance, the exporter prepares the
shipping bill. Shipping bill is the main document on the basis of which
the customs office gives the permission for export.
Shipping bill contains particulars of the goods being exported, the name
of the vessel, the port at which goods are to be discharged, country of
final destination, exporter’s name and address, etc.
Five copies of the shipping bill along with the following documents are
then submitted to the Customs Appraiser at the Customs House: