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Q 452: We refer to Question No. 401 where you had answered our query. We would like to know more details about the changes in documents.
A: 1. Question No. 401was regarding change of buyer.
2. Suppose, an original buyer is “A” and he has refused to accept the goods and, therefore, as an exporter you are forced to find out an alternate buyer.
3. The new buyer is “B”.
4. As per your understanding with buyer “B”, you will have to prepare a new set of documents.
5. Commercial invoice is to be prepared in the name of “B” indicating the address and details of “B”.
6. The quantity, net weight, gross weight, number of packages etc. will be the same as per originally prepared Customs invoice.
7. The rate and the total amount may be the same or it can be reduced as decided with “B”.
8. In FEMA, there are enabling provisions to handle the situation.
9. Packing list is to be copied and is to be made in the name of “B”.
10. There will be no requirement for any change in the shipping bill which is already filed and passed as per original invoice of “A”.
11. Certificate of Origin, if it is obtained for buyer “A”, then you have to surrender the original to the issuing agency and apply for Certificate of Origin based on new invoice drawn on “B”.
12. If Certificate of Origin is not obtained, then immediately apply for the same based on invoice of “B”.
13. Export declaration form, submitted at the time of shipment, will remain the same and no changes will be made.
14. Insurance policy, if already taken in the name of “A”, will require appropriate amendment from the insurance company to give effect of new buyer “B”. Insurance company is to be provided with a letter with the explanation about the fact of the case as to change of the buyer.
15. Exporter is required to follow the procedure of insurance company for the same.
16. Exporter is also required to approach the shipping company and/or its agent for the change in the name of buyer/consignee from “A” to “B”.
17. The shipping company will require all supporting document to change BL from “A” to “B”.
18. Different shipping companies will have their own internal procedure to change the name of the consignee.
19. As an exporter, you have to understand the requirement of shipping line/agent and comply with the same.
20. Shipping company will always follow abundant precaution before replacing/amending the BL.
21. If shipping company insists for a confirmation from “A”, then it will be a challenge for the exporter.
22. Shipping company will always indemnify its interest and protect against probable claim from “A”.
23. Exporter has to send full set of shipping documents through his bank to the overseas bank of buyer “B”.
24. In case original documents are already sent to the bank of buyer “A”, then documents are required to be called back.
25. Certain documents like Inspection Certificate/Fumigation Certificate/Quality Certificate/MSDS etc. are to be handled as per situation.
26. Bill of Exchange is to be prepared in the name of “B”.
27. As an exporter, you should have sufficient documentary evidence regarding refusal of goods/non-acceptance of the goods by buyer “A”.
28. When the payment is to be received from “B” and the shipping bill is in the name of “A”, you have to inform your banker with details of change of buyer.
29. Your bank will knock off EDPMS entry after taking on record the change of buyer.
30. The actual procedure of change of documents may vary from case to case basis.
31. This guideline has been given considering general situation of change of buyer.
32. In case you have claimed/received higher Duty Drawback, then you have to return the excess amount to the Customs department along with interest.
Q 453: Could you elaborate on Tools of Custom Classification (HS Code)?
A: Custom Classification is to be done based on the following:
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1
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Assign Chapter
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2 |
Refer to Chapter Notes
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3
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Refer to Section Notes
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4
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Assign Heading & Subheading
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5
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Technical Dictionary
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6 |
General Science Dictionary
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7 |
English Dictionary |
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Presidencies |
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9 |
Exemption Notifications |
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General Exemptions |
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11 |
Specific Exemptions |
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Amendments |