Frequently Asked Questions

Dumping means company export a product at a price lower than the price charged on its own domestic market. An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. Main purpose behind imposing such duty is protecting the domestic industry of importing country against the unfair trade practices and unhealthy competition.

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FOB stands for Free on board and CIF stands for Cost, Insurance and Freight.

In layman language,

FOB = Product value + Transportation charges from factory to port + CFS/Origin port charges + Custom Clearance Charges + Shipping Line charges at origin port

CIF = FOB Value + Marine Insurance + Vessel Freight (Transportation cost from one country to another country)

Generally FOB value used at the time of export and CIF value used at the time of Import.

 For the first time of export following basics and mandatory documents are required:

a)IEC Code and Branch Serial Number

b) GST Number

c) PAN Card Number

d) Bank Account Details

e) Authorized Dealer (AD) Code registration Number

f) Partnership/Company Documents

g) Registration Cum Membership Certificate (RCMC)

MOOWR stands for “Manufacturing & Other Operations In Warehouse”. The MOOWR scheme is essentially a duty deferment scheme. When you clear goods manufactured in a bonded warehouse, you have to pay duty on the inputs used in the manufacture of the goods - the duty that you did not pay at the time you imported the inputs.

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Factory Stuffing :- 

Exporter move empty container from CFS to the factory premises. Stuffing of cargo will be undertaken at factory premises. Once stuffing is completed container move to CFS for seal and verification by custom officials.

If exporter has a prior obtained self-sealing permission, in that case stuffing cargo sealed at factory premises and directly move to the terminal rather than CFS.

Dock Stuffing :-

In this case, the truck carrying goods for export enters in the area of Container Freight Station. The customs official inspects the goods and then those goods are directly loaded in to container for further movement towards terminal.

a) Commercial Invoice

b) Packing List

c) Tax Invoice/LUT

d) Booking Copy

e) Transporter Details

f) Verified Gross Margin (VGM)

g) DG Copy/DG Declaration, in case of Hazardous cargo

h) License details such as EPCG, Advance Authorization etc.

i) Self-sealing Permission, If taken

j) Shipping Bill/Instruction or Bill of Lading

Preferential trade arrangements (PTAs) in the WTO are unilateral trade preferences. Term used in the WTO for trade preferences, such as lower or zero tariffs, which a member may offer to a trade partner unilaterally.

A free trade agreement is an agreement between two or more countries that creates a free trade zone.

The fundamental difference between a free trade agreement and a preferential trade agreement is that a preferential trade agreement can be unilateral. In other words, they are relaxations on trade restrictions from one country towards another, without the other country necessarily reciprocating. Typically extended by developed countries towards developing countries as a form of diplomatic patronage, preferential trade agreements typically need waivers granted by the World Trade Organization, at least for member states.

Under GST regime, the exporter has either of the two options:

a)Export under LUT/Bond without payment of tax

:- Exporter can make export without payment of IGST by submission of Letter of Undertaking (LUT) or Bond. Such LUT shall be availed through GST Common portal of Exporter.

b)Export along with tax payment and claim refund later

At the time of filing GST return Exporter make payment of IGST and then such invoice details are compared with details submitted on ICE-Gate portal at the time of filing shipping bill. If details are match, Custom Department issue IGST refund directly to the exporter’s bank account.

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