Handling Export Declaration from India

General Information

An Export Declaration form is a document that exporters submit at the port from where the goods are shipped to the importer. This form provides information about the goods being shipped including type, value and number. Customs officials in the country of export use the information on the declaration form to help track and control the level and nature of exports. The details on the form will also be used to compile data about that country’s export trade. You must complete all mandatory fields on the Export Declaration before the export of goods.

Since the “exporter" of the order in Customs is the Vendor(s), the original Export Declaration will contain the actual vendor’s prices that AdvaCare purchased the products. Therefore, it creates an issue since we do not want to provide our Customer with our vendor’s price.

The number of Export Declarations within one order can vary depending on how many vendors were producing the products. Every Export Declaration is vendor-based and contains information of all products exported from that vendor.

Export Declaration can be requested by the Customer as a part of the set of shipping documents. Unlike China shipments where this document is being handled by the Logistics Person and Designer, and because the shipment process is mostly being arranged by the Purchasing Dept. of India Office, the export declaration(s) will be coming from the Purchasing Dept. under request of the Account Manager.

The purpose of this SOP is to explain how to complete the revision of the Export Declaration in order to provide it to the Customer, which has to match with the rest of the shipping documents data in the shipping documents set provided to them. The task is being completed by the following stakeholders:

● Purchasing Specialist: provides original document shared by Vendor and saves it under the Shipping Documents folder. For example:

Z:\Shared drives\AdvaCare Purchase India Control\AdvaCare Purchasing\Orders\Shipping Documents\SO833 - AFR\FOR CLIENT\Export Declarations

● Account Manager (Sales person): calculates the products related data that needs to be revised based on the Commercial Invoice used for this shipment and checks that it is matching throughout all shipping documents

● Designer: revises the digital document and saves under “REVISED” folder

Z:\Shared drives\AdvaCare Purchase India Control\AdvaCare Purchasing\Orders\Shipping Documents\SO833 - AFR\FOR CLIENT\Export Declarations\REVISED

The export declaration is issued after the shipment has departed and is a 6 page digital document which is digitally signed and has a unique QR-code which proves the authenticity and allows to track the document (Note: before 2022, India Customs were issuing the Export Declarations as hard copies).

To begin with, the main points about the export declaration with India origin are:

● Traceable (Salesperson needs to be sure if the Customer is submitting this document anywhere or uses for his reference only. The revisions made on the document will not match with the real data recorded at Customs).

Designer has to revise the QR-code and check via APP “ICETRAK” by scanning the revised QR-code with a phone camera where the APP is installed. The revised QR-code must NOT be valid or working.

● Currency of the document: INR

The 1st page of the Export Declaration will show that the shipment is done with USD Currency:

However, all data in export declaration will always be in INR.

In order to complete the revision correctly, Account Manager needs to check on page 2 what the exchange rate was used when issuing the declaration:

Getting started with revisions

1. Firstly, Salesperson needs to send a task to Purchasing to get Export Declaration(s) from all vendor(s) who manufactured the products of the order. Once received, the assigned Purchasing Specialist will provide a link to the saved Export Declaration(s):

2. Locate the relevant folder:

3. Open the Document on Page 2 to check the exchange rate used for this export:

4. Open the Commercial Invoice confirmed by Customer for this shipment (it can be actual Commercial Invoice, Undervalue or Overvalue Invoice) to check on the products costs that the export declaration information has to match to:

In the above example, the Customer is using CI UV and we will need to match the export declaration to these amounts.

Take the total amount and multiply it by the exchange rate from Export Declaration page 2 to revise FOB VALUE:

$3,290.11 x 76.8 = 252680.45 INR

5. Copy the same amount from “FOB VALUE” to “IGST VALUE”

6. Copy “INV AMT” from CI:

7. Calculate 12% of “FOB VALUE” and put under “IGST AMT”

252680.45/100 x 12 = 30321.6

8. Go to page 2 and put matching to the CI amount under “INVOICE VALUE”, “FOB VALUE” and “VALUE(F/C);

9. Check the declared quantity

Both of the above points will be product-based. If 1 vendor has more than 1 product declared, then it has to be calculated for each product separately.

10. Go to page 3 and revise “VALUE(F/C)” to match the CI amount in USD

11. Revise “FOB (INR)” according to the already calculated before amount on page 1 under “IGST VALUE”

12. Take the already calculated 12% amount from page 1 under “IGST AMT” and put under “IGST AMOUNT” under page 3.

Note: The difference between page 1 and page 3 for these revisions is that if Vendor has more than 1 product declared, page 3 will have calculations separately for each product alone. The total amount of all products on page 3 have to match with the total amount on page 1.

13. Go to page 4 and put the “FOB VALUE” under “VALUE”; Check the quantity

14. Calculate 93.9% from the INV. AMT in USD and put under “DBK AMT”

15. On the same page 4, put the “INVOICE AMOUNT” in USD again (matching the CI)

16. Page 5-6 do not require revision of data.

17. Once the calculation is done, revise the data with Designer including the aforesaid revision of QR-code and the number code below on EACH PAGE.

18. Check with the Designer that the QR-code on each page is no longer working.

19. Save the revised Declarations under the relevant folder.

20. Send a task to the Purchasing Dept. with the revised Export Declarations IF the customer requires ECTN Form for the shipment.

Note: If ECTN form is required for the shipment, some agents who are issuing the ECTN will ask to share the export declaration. We CANNOT use these agents. We previously have done ECTN without showing Export Declarations (as the revised value is not matching the actual) with Navio.