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Processing of an Export Order
An Export order is an offer to sell made by the exporter and its acceptance by foreign buyer. It is a documents communicating decision of the foreign buyer to purchase certain item (s) from the exporter. It specifies: Description of Items Their Quantity and quality Specifications Unit Prices Delivery terms Shipping Marks Insurance requirement
Labeling Packaging and packing Payment terms Pre-Shipment Inspection requirements
Export Agreement and Export Contract It
is an exchange of promisesexporter promises to supply goods as per specifications and buyer promises to make the payment. Contract is an agreement enforced by the law
Processing of Export Order 1. 2. 3. 4. 5. 6. 7.
Exporter locates trade enquiry The exporter then sends his profile to know the interests of buyer Buyer likes to have details of certain products Exporter then sends the quotation Buyer specifies his requirements regarding shape and size and other terms Exporter send the Performa Invoice Buyer confirms the Performa Invoice
Standard Clauses of Export Contract Product and its description 2. Product specifications - quality 3. Quantity 4. Incoterms 2000 5. Delivery Schedule-Time period, Part/complete dispatch 6. Mode of shipment-Sea, Ship or air 7. Type of shipment: Direct/Trans 8. Inspection 9. Labeling-Packaging-Packing, Marking requirements 10. Insurance-By Exporter/Importer 1.
Standard Clauses of Export Contract 12 Documents required 13 Escalation Clause: Sharing of increase in cost 14 Arbitration Clause: Clause of settlement of disputes 15 Fines/Penalties 16 Applicability of Law
Shipment of Export Goods The exporter should arrange for shipment of goods as soon as they have been cleared by the inspection agency. The process of shipment of goods involves essentially their clearance by the Central Excise Clearance and Customs Clearance of the Shipments.
Incentives
linked to Export Performance: Duty Drawback Duty Free Replenishment Certificate Duty Entitlement Pass Boom Scheme Special Import License Green Card
Incentives for Marketing of Export Goods: Marketing Development Assistance Air Freight Subsidies on export of horticulture and floriculture products Assistances for product promotion and packing development scheme of the Spices Board Subsidy for the marketing of marine products Subsidy schemes of APEDA for Agricultural, Horticultural and meat products
Fiscal Incentives: Exemption from Sales Tax Exemption from Income Tax
Import Facilitation for Exports: Duty Exemption Scheme Export Promo ton Capital Goods Scheme 100% EOU units
Export Financing: Pre-shipment at con-cessional rate of Interest Post-shipment at con-cessional rate of Interest Recognition of Exporters: Export House, Trading House, Star Trading Houses and Super Star Trading houses International Service Export House, International Service Trading House, International Service star Trading Houses and International Service Super Star Trading House
DUTY DRAWBACK Duty Drawback refers to the refund in respect of Central Excise and Customs Duty paid in respect to the raw material and other inputs used in the manufacture of product prior to its export. Exporters can claim the amount of duty drawback as soon as the exports of goods take place.
Type of Drawback Rates All
Industry Rate Brand Rate Special Brand Rate
Filing Duty Drawback: The processing of drawback is done by customs authorities after the EXPORT GENERAL MANIFEST is filed. Time for Claiming Drawback Claim: Within 3 months from the date of LET EXPORT ORDER. Exporter can seek extension by requesting Assistant Commissioner and if he is satisfied with the reasons stated he will grant the extension for MAXIMUM of 3 months.
Duty remission schemes Duty remission schemes consist of (a) Duty Free Replenishment Certificate (DFRC) and (b) Duty Entitlement Passbook Scheme (DEPB). DFRC permits duty free replenishment of inputs used in the export product. DEPB allows drawback of import charges on inputs used in the export product
DEPB: Duty Entitlement Pass Book Scheme The objective of the DEPB is to neutralize the incidence of Customs duty on the import content of the export product. Under the DEPB scheme, an exporter may apply for credit or claim of duty credit as a specified percentage of FOB value of exports, made in freely convertible currency. The Credit is granted against such export products and at such rates as may be specified by the Director General of Foreign Trade.
DEPB The exporter can use this credit to pay for the import duty on the import of inputs whether required for the manufacture of the export product or not. Blue Shipping Bill to get benefit under DEPB scheme. valid for a period of 12 months from the date of its issuance. Application should be within 180 days from the date of exports or within 90 days from the date of realization, whichever is later.
DEPB Freely transferable It should be noted that the imports under DFRC should be made from the same port from where the exports have been made. The application for grant of DEPB should be submitted to the Regional concerned Licensing Authority in prescribed format along with the following documents: Bank Draft for Payment of Application Fee Export Promotion Copy of the Shipping Bill(Blue) Bank Certificate of Export and Realization in prescribed form Self Attested Copy of the RCMC
Duty Free Replenishment Certificate (DFRC): DFRC is issued for the import of inputs used in the manufacture of goods without payment of basic customs duty. However, such inputs shall be subject to the payment of additional customs duty equal to the excise duty at the time of import. DFRC shall be issued on a minimum value addition of 25% only in respect of products covered under the SION as notified by Directorate General of Foreign Trade (DGFT).
DFRC The exporter who wants to avail of this facility should give a declaration in the Export promotion Copy of Shipping Bill indicating the serial number and the product group as per the Standard Input Output Norms (SION) at the time of seeking custom clearance of the export shipment. Documentation: Submitted to the Regional concerned Licensing Authority in prescribed format along with the following documents: Bank Draft for Payment of Application Fee Export Promotion Copy of the Shipping Bill Bank Certificate of Export and Realization in prescribed form Statement of Export giving separately each shipping number and date, FOB Value in Indian Rupees as per shipping bill and description of the resultant product.
DFRC
Filing of the application within a period of 90 days from the date of realization of export proceeds can be extended to 180 days in case of export shipment sent under irrevocable Letter of Credit. The exporter should register the export contract with the port from where the shipment is to be sent as the DFRC is issued with the single port of registration i.e. the port form where the export is made. The validity of DFRC is 18 months. Freely transferable. Imports under DFRC should be made from the same port from where the exports have been made. The cif shall be arrived at- after discounting 25% from the Fob Value calculated on the basis of BRC. FOB prices shall be calculated on the basis of the bank realization certificate. The value of DFRC is determined keeping in view the minimum value addition of 33%.
SPECIAL IMPORT LICENSE Under
this scheme, certain specified categories of exporters were granted the facility of Special Import License which will enable them to import items specifically ear marked for import against this license.
GREEN CARD: Introduced to reduce the transaction costs. Facility of Green Card: Automatic issue of Import License Automatic customs clearance for exports Automatic customs clearance for imports related to exports
Green Card is valid for 3 years and a firm/company can obtain up to 5 Green Cards.
Green Card Eligibility: All Status Holders (i.e. Export Houses) Manufacturer exporter exporting more than 50% of their production subject to a minimum turnover of Rs. 1 crore in the preceding year. Service providers rendering services in free foreign exchange for more than 50% of their services turnover subject to a minimum volume of Rs. 35 lakhs in free foreign exchange in the preceding year.
MARKETING DEVELOPMENT ASSISTANCE The
main thrust is to provide for development of marketing of Indian products and commodities in foreign markets by providing grants in aid for the eligible marketing activities to the eligible exporters.
Marketing Activities -MDA
Sales Cum Study Tours Participation in Fairs and Exhibition abroad. Publication/Publicity Research and Product development Opening of foreign offices Opening of Warehouses,
Eligibility of Exporters:
The exporters who have export turnover (Export of physical goods and services including software but excluding deemed exports) of the FOB value of Rs. 5 crores and above in the preceding licensing year or an average of FOB value of Rs. 2 crores and above during the preceding 3 licensing years, OR Small Scale exporters holding the certification under ISO 9000 series or IS 90000 series of quality certification, should have export turnover of FOB value ors Rs. 3 crores and above in the preceding year or an average of Rs. 1 corer or above during the preceding 3 licensing years. Export Houses, Trading houses, Star Trading houses and Super Star Trading houses
Marketing Activities and the scale of Assistance
Sales cum Study Tour Abroad: Maximum 90% of the Actual Fare for SSI exporters and 75% for other than SSI exporters subject to a limit of Rs 60,000/- for travel in economy class for all class of exporters. Participation in fairs/Exhibitions abroad: Maximum 90% of the total expenditure incurred on items of expenditure viz., air travel in economy class, space rent, decoration, electricity, interpreters, etc. in case of SSI Exporters and 75% of total expenditure in the case of non-SSI exporters subjected to the maximum of Rs. 90,000/- in all the cases.
Marketing Activities and the scale of Assistance
Publications/Publicity (for bringing out publications for use abroad and insertion of advertisement in the foreign media to promote brand publicity: Maximum of Rs. 50,000/- in financial year or 25% of the actual cost, whichever is less. Research and Product Development: 50% of expenditure approved for this activity by the Office of the Dy. Director (EAC), Ministry of Commerce, Udyog Bhawan, New Delhi. Opening of Foreign Office: For the first year, 25% of the salary of the staff (One senior and one junior) and 20% of the office rent. Opening of warehouse: Grant at the rate of 25% for three years.
Application for the grant of marketing development Assistance
The exporters approved as Export Houses, Trading Houses, etc should apply to Federation of Indian export Organizations (FIEO),New Delhi. Other Exporter should apply to the concerned Export Promotion Council/Commodity Boards under the Ministry of Commerce/APEDA/MPEDA. The application for the grant of financial assistance under MDA should be submitted within 2 weeks of the completion of the activity for which grant is applied for.
Application for the grant of marketing development Assistance
The claim should be supported by the following documents: A brief report on the result achieved and the business transacted during the fair/sales cum study tour. Copies of the passport highlighting the entries showing departure from/arrival in India. Original air tickets along with the photo copy Date wise stay in each of the countries visited. Any other document as may be presented by the sanctioning authority The proposal for grant of assistance in respect of research and product development activities, opening of foreign office/warehouse should be submitted in advance to the office of Deputy Director (EAC), Ministry of Commerce, New Delhi.
General Conditions Governing the Grant of MDA:
The application should be submitted within the prescribed time limit as laid down by FIEO/EPCs/CBs/APEDA/MPEDA from time to time. The journey should be performed as far as possible by Air India in economy class. A complete proposal indicating the nature of activity and how the funds should be utilized should be submitted along with the application.
AIR FREIGHT SUBSIDY ON HORTICULUTRE AND FLORICULTURE EXPORTS:
For Selected Fruits and Vegetables: Quantum of Subsidy: West Asia, South East Asia and CIS Countries: Least of the following: Rs 6 per kg 25% of the air freight rate approved by IATA 1/3rd of the FOB Value North America, Far East Countries and Europe and other than CIS Countries: Rs10 per kg 25% of the air freight rate approved by IATA 1/3rd of the FOB
Sales Tax Exemption
Eligible to claim exemption from levy of sales tax on the supplied taken by them for manufacture of goods meant for production of export product or supplies of goods for exports against specific export orders. This facility is available under Central Sales Tax Act and Local Sales Tax of the specific states. The exporter will give Form H to suppliers of goods from another state and exemption form prescribed by the Sales Tax Dept of the State concerned in case of supplies procured from within the state. The 100% export oriented units and the units in export processing zones, special economic zones, electronic hardware technology park and software technology park are entitled to full reimbursement of Central Sales Tax paid by them on purchases made by them from within the state in which they are located for the purpose of goods meant for exports.
Income Tax Exemption Assessment Year 2001-02 2002-03 2003-04 2004-05 2005-06
Extent of Deduction
80% 70% 50% 30% Nil
RECOGNTION OF EXPORTERS Export
firm can seek recognition as follows: Export House Trading House Star Trading House Super Start Trading house
CRITERIA Category
Average FOB value of during the preceding three licensing years in Rupees (Crores)
FOB value during the preceding Year in Rupees (Crore)
Average NFE earning made during the preceding three licensing years in Rupees (Crore)
NFE Earned during the preceding Year in Rupees (Crore)
Export House
15
22
12
18
Trading House
75
112
62
90
Star Trading House
375
560
312
450
Super Star Trading House
1125
1680
937
1350
Calculation of NFE: Net Foreign Exchange earned on exports is equal to the FOB value of exports minus the value of all licenses including 2.5 times the DEPB credit earned/granted. However, the value of freely transferable Special Import Licenses, EPCG Licenses and the value of Licenses surrender during the validity of the license is not to be deducted.
Validity Period: 3 years starting from 1st April of the licensing year during which the application is made for the grant of recognition. On expiry application for renewal to be made within 6 months of expiry.
Benefits
Golden Status Certificate is granted to the export firms having recognized status. Such export firms are exempt from eh requirement of compulsory pre-shipment inspection. The various licenses as provided under the Export-Import Policy are issued automatically to the exporter holding this status. The export firms holding status are allowed to submit legal undertaking instead of bank guarantee at the time of custom clearance of their import consignments under different schemes given in the Export-Import Policy.
An Export order is an offer to sell made by the exporter and its acceptance by foreign buyer. It is a documents communicating decision of the foreign buyer to purchase certain item (s) from the exporter. It specifies: Description of Items Their Quantity and quality Specifications Unit Prices Delivery terms Shipping Marks Insurance requirement
Labeling Packaging and packing Payment terms Pre-Shipment Inspection requirements
Export Agreement and Export Contract It
is an exchange of promisesexporter promises to supply goods as per specifications and buyer promises to make the payment. Contract is an agreement enforced by the law
Processing of Export Order 1. 2. 3. 4. 5. 6. 7.
Exporter locates trade enquiry The exporter then sends his profile to know the interests of buyer Buyer likes to have details of certain products Exporter then sends the quotation Buyer specifies his requirements regarding shape and size and other terms Exporter send the Performa Invoice Buyer confirms the Performa Invoice
Standard Clauses of Export Contract Product and its description 2. Product specifications - quality 3. Quantity 4. Incoterms 2000 5. Delivery Schedule-Time period, Part/complete dispatch 6. Mode of shipment-Sea, Ship or air 7. Type of shipment: Direct/Trans 8. Inspection 9. Labeling-Packaging-Packing, Marking requirements 10. Insurance-By Exporter/Importer 1.
Standard Clauses of Export Contract 12 Documents required 13 Escalation Clause: Sharing of increase in cost 14 Arbitration Clause: Clause of settlement of disputes 15 Fines/Penalties 16 Applicability of Law
Shipment of Export Goods The exporter should arrange for shipment of goods as soon as they have been cleared by the inspection agency. The process of shipment of goods involves essentially their clearance by the Central Excise Clearance and Customs Clearance of the Shipments.
Incentives
linked to Export Performance: Duty Drawback Duty Free Replenishment Certificate Duty Entitlement Pass Boom Scheme Special Import License Green Card
Incentives for Marketing of Export Goods: Marketing Development Assistance Air Freight Subsidies on export of horticulture and floriculture products Assistances for product promotion and packing development scheme of the Spices Board Subsidy for the marketing of marine products Subsidy schemes of APEDA for Agricultural, Horticultural and meat products
Fiscal Incentives: Exemption from Sales Tax Exemption from Income Tax
Import Facilitation for Exports: Duty Exemption Scheme Export Promo ton Capital Goods Scheme 100% EOU units
Export Financing: Pre-shipment at con-cessional rate of Interest Post-shipment at con-cessional rate of Interest Recognition of Exporters: Export House, Trading House, Star Trading Houses and Super Star Trading houses International Service Export House, International Service Trading House, International Service star Trading Houses and International Service Super Star Trading House
DUTY DRAWBACK Duty Drawback refers to the refund in respect of Central Excise and Customs Duty paid in respect to the raw material and other inputs used in the manufacture of product prior to its export. Exporters can claim the amount of duty drawback as soon as the exports of goods take place.
Type of Drawback Rates All
Industry Rate Brand Rate Special Brand Rate
Filing Duty Drawback: The processing of drawback is done by customs authorities after the EXPORT GENERAL MANIFEST is filed. Time for Claiming Drawback Claim: Within 3 months from the date of LET EXPORT ORDER. Exporter can seek extension by requesting Assistant Commissioner and if he is satisfied with the reasons stated he will grant the extension for MAXIMUM of 3 months.
Duty remission schemes Duty remission schemes consist of (a) Duty Free Replenishment Certificate (DFRC) and (b) Duty Entitlement Passbook Scheme (DEPB). DFRC permits duty free replenishment of inputs used in the export product. DEPB allows drawback of import charges on inputs used in the export product
DEPB: Duty Entitlement Pass Book Scheme The objective of the DEPB is to neutralize the incidence of Customs duty on the import content of the export product. Under the DEPB scheme, an exporter may apply for credit or claim of duty credit as a specified percentage of FOB value of exports, made in freely convertible currency. The Credit is granted against such export products and at such rates as may be specified by the Director General of Foreign Trade.
DEPB The exporter can use this credit to pay for the import duty on the import of inputs whether required for the manufacture of the export product or not. Blue Shipping Bill to get benefit under DEPB scheme. valid for a period of 12 months from the date of its issuance. Application should be within 180 days from the date of exports or within 90 days from the date of realization, whichever is later.
DEPB Freely transferable It should be noted that the imports under DFRC should be made from the same port from where the exports have been made. The application for grant of DEPB should be submitted to the Regional concerned Licensing Authority in prescribed format along with the following documents: Bank Draft for Payment of Application Fee Export Promotion Copy of the Shipping Bill(Blue) Bank Certificate of Export and Realization in prescribed form Self Attested Copy of the RCMC
Duty Free Replenishment Certificate (DFRC): DFRC is issued for the import of inputs used in the manufacture of goods without payment of basic customs duty. However, such inputs shall be subject to the payment of additional customs duty equal to the excise duty at the time of import. DFRC shall be issued on a minimum value addition of 25% only in respect of products covered under the SION as notified by Directorate General of Foreign Trade (DGFT).
DFRC The exporter who wants to avail of this facility should give a declaration in the Export promotion Copy of Shipping Bill indicating the serial number and the product group as per the Standard Input Output Norms (SION) at the time of seeking custom clearance of the export shipment. Documentation: Submitted to the Regional concerned Licensing Authority in prescribed format along with the following documents: Bank Draft for Payment of Application Fee Export Promotion Copy of the Shipping Bill Bank Certificate of Export and Realization in prescribed form Statement of Export giving separately each shipping number and date, FOB Value in Indian Rupees as per shipping bill and description of the resultant product.
DFRC
Filing of the application within a period of 90 days from the date of realization of export proceeds can be extended to 180 days in case of export shipment sent under irrevocable Letter of Credit. The exporter should register the export contract with the port from where the shipment is to be sent as the DFRC is issued with the single port of registration i.e. the port form where the export is made. The validity of DFRC is 18 months. Freely transferable. Imports under DFRC should be made from the same port from where the exports have been made. The cif shall be arrived at- after discounting 25% from the Fob Value calculated on the basis of BRC. FOB prices shall be calculated on the basis of the bank realization certificate. The value of DFRC is determined keeping in view the minimum value addition of 33%.
SPECIAL IMPORT LICENSE Under
this scheme, certain specified categories of exporters were granted the facility of Special Import License which will enable them to import items specifically ear marked for import against this license.
GREEN CARD: Introduced to reduce the transaction costs. Facility of Green Card: Automatic issue of Import License Automatic customs clearance for exports Automatic customs clearance for imports related to exports
Green Card is valid for 3 years and a firm/company can obtain up to 5 Green Cards.
Green Card Eligibility: All Status Holders (i.e. Export Houses) Manufacturer exporter exporting more than 50% of their production subject to a minimum turnover of Rs. 1 crore in the preceding year. Service providers rendering services in free foreign exchange for more than 50% of their services turnover subject to a minimum volume of Rs. 35 lakhs in free foreign exchange in the preceding year.
MARKETING DEVELOPMENT ASSISTANCE The
main thrust is to provide for development of marketing of Indian products and commodities in foreign markets by providing grants in aid for the eligible marketing activities to the eligible exporters.
Marketing Activities -MDA
Sales Cum Study Tours Participation in Fairs and Exhibition abroad. Publication/Publicity Research and Product development Opening of foreign offices Opening of Warehouses,
Eligibility of Exporters:
The exporters who have export turnover (Export of physical goods and services including software but excluding deemed exports) of the FOB value of Rs. 5 crores and above in the preceding licensing year or an average of FOB value of Rs. 2 crores and above during the preceding 3 licensing years, OR Small Scale exporters holding the certification under ISO 9000 series or IS 90000 series of quality certification, should have export turnover of FOB value ors Rs. 3 crores and above in the preceding year or an average of Rs. 1 corer or above during the preceding 3 licensing years. Export Houses, Trading houses, Star Trading houses and Super Star Trading houses
Marketing Activities and the scale of Assistance
Sales cum Study Tour Abroad: Maximum 90% of the Actual Fare for SSI exporters and 75% for other than SSI exporters subject to a limit of Rs 60,000/- for travel in economy class for all class of exporters. Participation in fairs/Exhibitions abroad: Maximum 90% of the total expenditure incurred on items of expenditure viz., air travel in economy class, space rent, decoration, electricity, interpreters, etc. in case of SSI Exporters and 75% of total expenditure in the case of non-SSI exporters subjected to the maximum of Rs. 90,000/- in all the cases.
Marketing Activities and the scale of Assistance
Publications/Publicity (for bringing out publications for use abroad and insertion of advertisement in the foreign media to promote brand publicity: Maximum of Rs. 50,000/- in financial year or 25% of the actual cost, whichever is less. Research and Product Development: 50% of expenditure approved for this activity by the Office of the Dy. Director (EAC), Ministry of Commerce, Udyog Bhawan, New Delhi. Opening of Foreign Office: For the first year, 25% of the salary of the staff (One senior and one junior) and 20% of the office rent. Opening of warehouse: Grant at the rate of 25% for three years.
Application for the grant of marketing development Assistance
The exporters approved as Export Houses, Trading Houses, etc should apply to Federation of Indian export Organizations (FIEO),New Delhi. Other Exporter should apply to the concerned Export Promotion Council/Commodity Boards under the Ministry of Commerce/APEDA/MPEDA. The application for the grant of financial assistance under MDA should be submitted within 2 weeks of the completion of the activity for which grant is applied for.
Application for the grant of marketing development Assistance
The claim should be supported by the following documents: A brief report on the result achieved and the business transacted during the fair/sales cum study tour. Copies of the passport highlighting the entries showing departure from/arrival in India. Original air tickets along with the photo copy Date wise stay in each of the countries visited. Any other document as may be presented by the sanctioning authority The proposal for grant of assistance in respect of research and product development activities, opening of foreign office/warehouse should be submitted in advance to the office of Deputy Director (EAC), Ministry of Commerce, New Delhi.
General Conditions Governing the Grant of MDA:
The application should be submitted within the prescribed time limit as laid down by FIEO/EPCs/CBs/APEDA/MPEDA from time to time. The journey should be performed as far as possible by Air India in economy class. A complete proposal indicating the nature of activity and how the funds should be utilized should be submitted along with the application.
AIR FREIGHT SUBSIDY ON HORTICULUTRE AND FLORICULTURE EXPORTS:
For Selected Fruits and Vegetables: Quantum of Subsidy: West Asia, South East Asia and CIS Countries: Least of the following: Rs 6 per kg 25% of the air freight rate approved by IATA 1/3rd of the FOB Value North America, Far East Countries and Europe and other than CIS Countries: Rs10 per kg 25% of the air freight rate approved by IATA 1/3rd of the FOB
Sales Tax Exemption
Eligible to claim exemption from levy of sales tax on the supplied taken by them for manufacture of goods meant for production of export product or supplies of goods for exports against specific export orders. This facility is available under Central Sales Tax Act and Local Sales Tax of the specific states. The exporter will give Form H to suppliers of goods from another state and exemption form prescribed by the Sales Tax Dept of the State concerned in case of supplies procured from within the state. The 100% export oriented units and the units in export processing zones, special economic zones, electronic hardware technology park and software technology park are entitled to full reimbursement of Central Sales Tax paid by them on purchases made by them from within the state in which they are located for the purpose of goods meant for exports.
Income Tax Exemption Assessment Year 2001-02 2002-03 2003-04 2004-05 2005-06
Extent of Deduction
80% 70% 50% 30% Nil
RECOGNTION OF EXPORTERS Export
firm can seek recognition as follows: Export House Trading House Star Trading House Super Start Trading house
CRITERIA Category
Average FOB value of during the preceding three licensing years in Rupees (Crores)
FOB value during the preceding Year in Rupees (Crore)
Average NFE earning made during the preceding three licensing years in Rupees (Crore)
NFE Earned during the preceding Year in Rupees (Crore)
Export House
15
22
12
18
Trading House
75
112
62
90
Star Trading House
375
560
312
450
Super Star Trading House
1125
1680
937
1350
Calculation of NFE: Net Foreign Exchange earned on exports is equal to the FOB value of exports minus the value of all licenses including 2.5 times the DEPB credit earned/granted. However, the value of freely transferable Special Import Licenses, EPCG Licenses and the value of Licenses surrender during the validity of the license is not to be deducted.
Validity Period: 3 years starting from 1st April of the licensing year during which the application is made for the grant of recognition. On expiry application for renewal to be made within 6 months of expiry.
Benefits
Golden Status Certificate is granted to the export firms having recognized status. Such export firms are exempt from eh requirement of compulsory pre-shipment inspection. The various licenses as provided under the Export-Import Policy are issued automatically to the exporter holding this status. The export firms holding status are allowed to submit legal undertaking instead of bank guarantee at the time of custom clearance of their import consignments under different schemes given in the Export-Import Policy.
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