How to Export from SEZ

Today we are going to talk to talk about EXPORT PROCESS IN SEZ (Special Economic Zone). If you don't know what is SEZ click on this link

We will only cover process in this article not documentation and clearance. Means shipment flow step by step. We also attached a video in below article on SEZ export process in Hindi Language.

There is below very simple step by step export process in SEZ Special Economic Zone and explain as well.

Do you know know in Import / Export depends upon Payment terms, Delivery Terms.

Step By Step Export Process In SEZ

1- For example in this image we assumed ABC KOLKATA is company which is registered in  special economic zone India and they have T-shirt manufacturer plant in Kolkata unit. This ABC company have multiple selling units in the world and once selling unit in Italy. When T-shirt will be ready all manufactured cost included then they will ship this to Italy for selling.

Here you can say ABC Kolkata will be known as Exporter and ABC Italy whose is sell unit will be known as a Importer.

Remember every country have different guidelines in import / export. We must follow the all otherwise shipment can be stuck at any place.

Do you know custom charged the Import Duty depend upon the materials but for the sez units its completely exempted by the Indian Government to Increase the International Business.

Step By Step Export Process In SEZ

2-  There is one normal confusion. What happens if ABC kolkata want to sell these T-shirt in India to any local seller. Yes he can but this trading took place like international trading not local.

For Selling it to local seller then Local seller will be known as Importer and ABC exporter.

You know why, because government given license for working in special economic zone for enhance international trading not for domestic. So ABC have to do clearance in sez custom even if they selling T-shirts local anywhere in India as well.

Do you know in SEZ unit used only foreign currency in invoicing. Even this transaction happening between two SEZ unit locally in India. 

Step By Step Export Process In SEZ

3- Supposed T-shirt is ready to dispatch then first process by ABC means exporter will coordinate to CHA (Custom House Agent) to clearance.

After complete packing for this T-shirts in to cartons or container as per size.

Exporter give necessary documents to CHA will entry online on custom portal and pick the shipment from the exporter.

CHA is a kind of agency who help you to clearance on your behalf for the commission.

Before handover the shipment to CHA exporter must apply a seal on each boxes or Containers. This Seal is provided by special economic zone authorities to exporter as a stamp.

This is also is safety purpose because CHA cannot open that box.

CHA just verify the invoice and submit the docs on government site ICEGATE, and generate the shipping bill number. Mostly works is turns in to the digitize in clearance office. Before all work was offline and time taking. So government initiating to reduce the time in clearance. 

Export also submit same documents on SEZ custom website accordingly.

How to Import in SEZ

Do you know Export need IEC code for the export by Indian Government without this export can not be possible for commercial uses.

Step By Step Export Process In SEZ

4 - Next step custom house agent submit these documents and box to SEZ clearance warehouse for custom clearance. It's a warehouse situated in every sez units.

Custom officer superintendent will verify the invoices and shipment. If he found any miss match or weight difference as per invoice ans boxes then he can open the seal and verify the qty as per invoices. But before opening the box exporter have to be present there.

Before open the seal one person from ABC company should be present there. 

If superintendent found everything is Ok and exporter followed all guidelines then he approved the shipment for the clearance. And put one more seal of custom office on the shipment which means this shipment has been verified. 

Please Note - Every shipment have two SEAL on the boxes Ist by the Exporter and Second by the Customer officer.

Do you know without CHA you can not import/export the shipment. They are authorized by the Indian Government. 

Step By Step Export Process In SEZ

5 - After clearance CHA will dispatch the shipment to respective airport and informed to exporter that clearance done. Kindly provide the CRO (container release order.)

  

On the same time Exporter already contacted with Freight forwarder. 

Freight forwarder will provide the CRO to exporter and exporter forward the same to CHA.

Now CHA place the shipment on the port according to CRO with the help of port agent.

And hand over the all documents to exporter. From here CHA responsibility over.

Do you know You can use courier company in Import and Export instead of Freight Forwarder.

Step By Step Export Process In SEZ

6 - Now exporter share these document with freight forwarder and tell shipment is place on port kindly raise the BL bill of lading.

Now FF will share the Draft bill of lading if everything are OK in BL as per deal between exporter and FF. then exporter acknowledge that BL is OK. Please proceed it.

Step By Step Export Process In SEZ

7- Then FF will dispatch the shipment for Importer. and share the tracking details with exporter and importer.

Then export process will be complete from India after this import process will start in Italy when shipment reached there. as per inco terms. 

After the import process shipment will be delivered to import and now then can sell these T-shirt to consumer.

How to understand Payment Terms

This topic is covered in below video in Hindi. You can check this presentation. It will help you.

Do you know for the delaying in IMPORT / EXPORT buyer or seller have to pay penalty to the custom departments.

If you have any confusion please comment us we will help you.

If you have any suggestion regarding this article let us know we shall consider the same.

Same topic is covered in below video in Hindi.