Export procedure and sealing of containerized cargo in the GST Law – Hunny Munjal


The Purpose of this article is clarify the export procedure defined in the Customs Circular No. 26/2017 Dated 01th.July.2017 in the Current GST Regime. Export/Import procedureis a major concern for the exporters & importers. The supplies of the goods and service for the exports has been categorized as “Zero Rated Supply” in the GST Law. The supplies can be made under Bond/LUT without payment of the IGST followed by refund of the unutilized input tax credit or on payment of IGST. The export procedure laid down in the previous Notification No. 42/2001- CE (N.T.) too 45 /2001- C.E. both dated 26.06.2001 detailing the procure for the export of the goods without payment of the duty and 19/2014- C.E. (N.T.) and 20/2004- C.E. (N.T.) relating to the export of the goods on payment of the Duty are now dispensed off.

  1. Export Procudure

Under the GST Regime, the export of the goods will be termed as Zero Rated Supply and will be eligible to claim the refund under any of the following options as under:

  1. He may supply goods or services or both under bond or Letter of Undertaking subject to such conditions, safeguards and procedure as may be prescribed without payment of integrated tax and claim refund of unultilzed input tax credit or
  2. He may supply goods or services or both subject to such conditions, safeguards and procedure as may be prescribed on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied in accordance with the provisions of section 54 (Refunds) of the Central Goods and Services Tax Act or the rules made there under (i.e. the central Goods and Service Tax Rules 2017).

For the option (a), Procedure to file refund has been outlined in the Central Goods and Service Tax Rules 2017 under GST. The exporter claiming refund of IGST will file an application electronically through the Common Portal, either directly or through a Facilitation Centre notified by the GST Commissioner. The application shall be accompanied by documentary evidences as prescribed in the said rules.Application for refund shall be filed only after the export manifest or an export report, as the case may be, is delivered under section 41 of the Customs Act, 1962 in respect of such goods.

For the option (b),the registered person is not required to file any application for the refund of IGST paid. The shipping bill filed by an exporter shall be deemed to be an application for refund of integrated tax paid on the goods exported out of India and such application shall be deemed to have been filed only when the person in charge of the conveyance carrying the export goods duly files an export manifest or an export report covering the number and the date of shipping bills or bills of export and the applicant has furnished a valid return.

In both the options (a) and (b), the exporters is required to give details invoice in the shipping bills. The shipping bills format have been modified to make them compliment with the IGST law. ARE-1 procedure has been dispensed except in respect of the commodities still covered under Central Excise Act.

  1. Sealing of Containers:

            In the GST law, the CBEC has decide to simplify the procure relating to factory stuffing hitherto carried out under the supervision of the Central Excise Officers. CBEC has decided to do away with the sealing of containers with the export goods by govt. officials. Instead Self sealing procedure shall be followed subject to the following

  1. The exporter is required to inform the details of the premises whether a factory or warehouse or any other place where container stuffing is to be carried out, to the jurisdictional customs officer.
  2. The exporter should be registered under the GST and should be filing GSTR1 and GSTR2. Where exporter is not a GST registrant, he shall bring the export goods to a Container Freight Station/Inland Container Depot for stuffing and sealing of container. However, in certain situations, the unregistered exporter like Status Holders under a valid status holder certificate can also opt for self-sealing.
  3. Any exporter desirous of availing this procedure shall inform the jurisdictional Custom Officer of the rank of Superintendent or Appraiser of Customs, at least 15 days before movement of a consignment from his/her factory/ premises, about the intention to follow self- sealing procedure to export goods from the factory premises or warehouse. The jurisdictional Superintendent or an Appraiser or an Inspector of Customs shall visit& inspect the premises from where the export goods will be stuffed & sealed for export and submit a report to the jurisdictional Deputy Commissioner of Customs. The principal commissioner shall grant such permission. Once the permission is granted, the exporter shall furnish only intimation to the jurisdictional Superintendent or Customs each time self-sealing is carried out at approved premises. The intimation, in this regard shall clearly mention the place and address of the approved premises, description of export goods and whether or not any incentive is being claimed
  4. Where the visit report of the Superintendent or an Appraiser / premises is not favorable, the exporter shall bring the goods to the Container Freight Station /Inland Container Depot/Port for sealing purposes.
  5. Self-Sealing permission once given shall be valid for export at all the customs stations.
  6. The exporter shall seal the container with the electronic seal which have a unique number which should be declared in the Shipping Bill. The exporter intending to clear export goods on self-clearance shall file the Shipping Bill under digital signature.
  7. All consignments in self-sealed containers shall be subject to risk based criteria and intelligence, if any, for examination / inspection at the port of export.

The abovesaid procedure relating to the self-sealing of the containers will be applicable from 01.09.2017 up till then the existing procedure sealing the container with the bottle seal under Central Excise Supervision would still continue.

The Link of the Circular is below.

Customs Circular No. 26/2017 Dated 01th.July.2017


Leave A Comment