EXPORT COMPLIANCE

[Audio] EXPORT COMPLIANCE 1) Export Registration IEC Code Overview: The Importer-Exporter Code ( IEC) is a key business identification number and is mandatory for exporting or importing in India. The IEC code is allotted by the Directorate General of Foreign Trade ( DGFT) and should be obtained before making any import or export. It can be applied online at the DGFT website. Benefits of obtaining an IEC code: a. An IEC code enables an exporter to import or export in India b. Exporters need an IEC code to avail export benefits under the Foreign Trade policy schemes Validity of an IEC code: IEC is valid, until cancelled. However, there has been a recent change in regulations mandating that the IEC code is required to be updated every year. AD Code Overview: Authorized dealer (AD) code is a 14 digit unique code allotted to banks dealing in foreign currency by RBI. Exporters are required to obtain an AD code letter from the bank in which their business has a current account. Further, the AD code letter needs to be registered at the Customs port from where the goods will be exported. AD Code registration helps banks and Custom authorities to keep a track on the export transactions. Benefits of AD code Registration: a. An AD code is mandatory for generation of the shipping bill and thus necessary for Custom clearance of the shipment b. An AD Code is required to avail any export related government benefits in India. Validity of an AD code: An AD Code is valid with Customs authority for lifetime. However, any change in the banking details of the exporter will need an update to AD Code registration with Custom authorities Registration steps: Please follow the below steps for AD code registration- 1. Exporter needs to request their bank to provide an AD code letter.

. . 2. Exporter needs to register their AD code at the Customs port with the following.

. .  GST portal: https://www.gst.gov.in.  Format of LUT: https://www.cbic.gov.in/resources//htdocs-cbec/excise/cx-forms/UT- 1.pdf.

. . b. IOR is needed to file regulatory documents with authorities for importing specific.

[Audio] View Shipping Workflow View shipping requirements Shipping Requirements Details on the mandatory shipping documents for custom clearance: Courier mode Cargo mode Details Commercial Invoice The commercial invoice provides details of the items in the shipment such as the complete description of the goods sold, their HS code, the quantities of the goods sold, value of the goods as agreed between the parties to the transaction, country of origin along with name & addresses of the exporter, manufacturer and importer of the goods. Packing List An export packing list provides product and packaging details such as description of goods, marks and numbers, quantity, gross weight, net weight, number of packages, types of packages (such as pallet, box, crates, drums etc.) contained in each shipment Shipper Letter of Instruction Shipper Letter of Instruction ( SLI) is required to convey transportation and documentation instructions to the logistic partners. The SLI allows and permits the logistic partner to arrange for the transportation of the goods and for filing of custom related documents. The format of this document can vary from one logistic partner to another. Not applicable Export Value Declaration Export Value Declaration ( EVD) provides information about the goods being shipped, including type, number, and value. To understand more on the Customs process, please refer to the Custom manual.

[Audio] Depending on the product being exported, a few additional documents may be required by your Logistic partner. A few being: a. Product specific documents: Certain products and categories are regulated and have specific requirements to be exported from India to USA. Please find the requirements specific to your products here b. Importer on Record (IOR): An IOR is needed for importing products under certain conditions into USA. Please visit and find more details on IOR here Download shipping templates Below are the shipping document templates of a few carriers for reference. Please contact your logistic partner to understand the required documents. Ship with Amazon partnered carriers 1. FBA The Partnered Carrier program allows you to send your Fulfillment by Amazon (FBA) inventory from India to fulfillment centers in the US.View more details 2. MFN You can use Amazon's buy shipping services to send your seller-fulfilled orders directly to customers in the US.View more details( You will need an Amazon seller account to view this page. ) Request assistance.

[Audio] Payment Reconciliation Export in India is subject to several compliances as stipulated under the Foreign Exchange Management Act 1999, Foreign Exchange Management ( Current Account Transactions) Rules, 2000, and the Foreign Exchange Management ( Export of Goods and Services) Regulations, 2015. Such compliances are required to be adhered by every exporter in India. Repatriation and Realization of Export proceeds: Exporters are required to declare the value of the goods to be exported. In case it is not possible to determine the full value of the goods at the time of export, then the fair market value of the goods to be exported (at the time of export) should be ascertained by the exporter. Exporters are required to adhere to the following time limits for realization and repatriation of goods and services:  Timeline for repatriation and realization of goods is typically 9 months from the date of exports.  However, the above timeline would be decided by RBI on a case to case basis. The RBI stipulates these timelines: o When goods are exported to a warehouse established outside India (with the permission of RBI), the value of the exported goods should be paid as soon as it is realized to the authorized dealer bank, which should not be more that 15 months from the date of shipment (unless otherwise specified by RBI in consultation with the Government of India). o If the period is extended, then an application must be made to the AD Bank for a sufficient and reasonable cause shown. Proof of payment received: After receiving all payments of a shipping bill, exporters need to submit their export documents, eFIRC to their bank for closing their open entries in EDPMS and obtaining their eBRC. 1. eFIRC (electronic Foreign Inward Remittance Certificate) Banks need to report all inward remittances under EDPMS received against export of goods/ software. When the exporter proceeds for export of goods are received by a bank other than the one through which documents are submitted, e-FIRC is required for connecting the two. Here, the banks that received the payment would issue electronic eFIRC to EDPMS at specific request of exporter. 2. eBRC (electronic Bank Realization Certificate) Once all the payments against a shipping bill are received, exporter can request their bank to close the entry in EDPMS and obtain an eBRC. Any firm applying for benefits under Foreign Trade Policy is required to furnish valid BRC as a proof of realization of payment against exports made. Reference links:  RBI Circular  Guidelines for Amazon Payments( You will need an Amazon seller account to view this page. ).

[Audio] Tax Documentation Tax requirements in India GST Treatment on Export Sales: As per Central Board of Indirect taxes & Customs, export of goods from India is treated as GST free subject to certain conditions. Exporters have 2 options in paying GST: 1. Export with a Letter of Undertaking ( LUT) without payment of IGST 2. Export with payment of IGST and claim a refund after the goods have been exported View CBEC booklet on GST for Exports here 1. Exports against Letter of Undertaking (LUT) a. Exporters registered under GST are required to generate a Letter of Undertaking (LUT) on GST portal for each financial year. Further, they can generate GST free export invoice and provide the acknowledgement number of generated LUT to their logistic partner. The logistic partner shall file the shipping bill against LUT and shall not show any liability of GST on the sale in the shipping bill b. Any GST paid on the procurement of goods/ raw material for exports can be claimed as input tax credit by the exporter while filing the GST Returns. Exporters can subsequently explore refund of such GST from GST authorities 2. Exports with payment of IGST (without LUT) a. Without a LUT, exporters are required to show the GST liability on their export invoice and hence it needs to be declared in the shipping bill (filed by the logistic partner). Exporters can claim their input tax credit for the GST paid on the procurement of raw material and adjust it while paying the GST liability on export sales in their GST returns b. After the valid filing of returns and shipping bill, exporters will receive the refund of their GST in full from custom authorities Note: The above is an extract from details available in the public domain and may be subject to change from time to time. This should not be viewed as tax guidance by Amazon. Please reach out to your tax consultant for detailed/ nuanced guidance..

[Audio] Sales Tax requirements in USA Sellers are responsible for understanding the tax policies and any remittance obligations that apply to their business. This includes registering with any applicable tax authorities, setting up applicable tax calculation settings, and/or filing with a tax authority. For products destined to a state or jurisdiction where Marketplace Tax Collection laws apply, Amazon will calculate, collect, and remit applicable sales tax automatically. Your business may have certain direct tax reporting obligations, such as federal/state/local income tax or state/local gross receipts tax, based on your sales on Amazon's marketplace, other marketplaces, or direct sales to the US. Amazon is not responsible for reporting those taxes as any direct tax obligation is yours that you must report separately. For products destined to a state or jurisdiction where Marketplace Tax Collection laws do not apply, Amazon does not automatically calculate, collect, and remit applicable sales tax and any calculation, collection and remittance remains the seller's responsibility. Amazon provides Tax Calculation Services to professional sellers to assist with their sales tax obligation in instances where it is still their obligation to calculate, collect and remit sales tax. Please refer to more details at United States Tax and Regulatory Considerations and Amazon's tax policies. Amazon sellers can find the tax paid on their products in Sales Tax information in seller reports (you will need an Amazon seller account to view this page). Note: Information on this page does not constitute tax, legal, or other professional advice and must not be used as such. You should consult your professional advisers if you have questions..