Export or import of goods can be done through various channels e.g. Air, Sea, Road, Post and courier. Every channel has separate guideline set by regulatory authorities i.e. Central Bank (RBI) and Central Board of Indirect Taxes and Customs(CBIC). Here I am going to discuss on regulatory guidelines for export and import through post.
There are 24(Twenty four) locations /city through which Postal Department approves export through post.
| Sl No. | Region | State | City |
| 1 | South | Andhra Pradesh | Vijayawada |
| 2 | South | Karnataka | Bangaluru |
| 3 | South | Kerlara | Kochi |
| 4 | South | Tamilnadu | Chennai |
| 5 | South | Telangana | Hyderabad |
| 6 | South | Puducherry | Puducherry |
| 7 | East | Assam | Guwahati |
| 8 | East | West Bengal | Kolkata |
| 9 | East | Bihar | Patna |
| 10 | East | Chattisgarh | Raipur |
| 11 | East | Jharkhand | Rachi |
| 12 | East | Meghalaya | Shillong |
| 13 | East | Odissa | Bhubaneswar |
| 14 | North | Delhi | New Delhi |
| 15 | North | Leh | Leh |
| 16 | North | Uttar Pradesh | Kanpur, Agra, Varanasi |
| 17 | North | Chandigarh | Chandigarh |
| 18 | North | Jammu & Kasmir | Srinagar |
| 19 | North | Punjab | Ludhiana |
| 20 | North | Rajasthan | Jaipur |
| 21 | Central | Madhya Pradesh | Bhopal |
| 22 | West | Gujrat | Ahmedabad |
| 23 | West | Maharashtra | Mumbai |
| 24 | West | Goa | Panaji |
Regulatory Guidelines as per Customs for exports through post
1. Goods which are not prohibited for export means which are exempt from the prohibitions under the FTP or the Customs Act, 1962. Goods like wild animals, wild birds and parts of wild animals and birds, ivory, arms like revolvers and pistols and hand guns and ammunitions and narcotic drugs are strictly prohibited.
2. Bonafide commercial samples (duty free genuine commercial samples) and goods supplied free of charge of a value not exceeding Rs.50,000/- and which do not involve transfer of foreign exchange.
3. Bonafide gifts of articles for personal use of a value not exceeding Rs.25,000/- and which do not involve transfer of foreign exchange.
4. Export of purchases made by the foreign tourists subject to proof that the payment has been made in foreign exchange.
5. The rate of duty and tariff value will be applicable based on the date on which the exporter delivers such goods to Postal Authorities for exportation.
6. Drawback can also be availed for export through post and also through other export promotion schemes like Advance License, DFRC, EPCG etc.
7. Exports made by post of Indian and Foreign currency, bank drafts, cheques, National Saving Certificates and other negotiable instruments that are not allowed unless the goods carry a valid permit that is issued by an authorized dealer in foreign exchange in India.
8. Indian currency notes of Rs. 500 and Rs. 1,000 denominations are banned by the Government of Nepal. Hence, the Indian currency notes of Rs. 500 and Rs. 1,000 denominations are not permitted for exportation to Nepal.
Procedure for postal exports
1. Articles that are exported by posts have to be covered by a declaration in the prescribed form i.e. P.P form along with commercial invoice.
2. If exports made by posts are more than Rs. 50 and if the payment has to be received, then the articles have to be mentioned on the exchange control form, which is the P.P. Form.
3. If the postal article is covered by a certificate that is issued by an authorized dealer in foreign exchange that the export does not evolve any transaction in foreign exchange up to Rs. 500, the declaration in a P.P. Form is not required.
4. The letters and parcels that are produced by the postal authorities to Customs Officer in the Foreign Post Office. After conducting the preliminary survey of the letters and declarations, the concerned officer makes sure that there are no prohibited goods otherwise the suspected parcels would be detained and other letters and parcels are handed over to the postal authorities for sending to their destination.
5. The detained parcels will be opened by Customs Officer in the presence of the postal authorities and if the same does not contain any prohibited or restricted goods and if there is no mis-declaration of value or drawback, the parcels are repacked and handed over to the postal authorities for export.
6. If the detained parcels hold restricted or prohibited goods or mis-declared goods for a purpose to avail inadmissible export benefits, the case will be investigated.
7. The procedure to claim Drawback through posts is mentioned in Rule 11 of Customs and Central Excise Duties Drawback Rule, 1995. The outer packing of the consignment will be labelled ‘Drawback Export’ and the exporter delivers the postal authorities a claim in Annexure I in quadruplicate.
8. If the claim is incomplete, a deficiency memo will be issued within 15 days and the exporter should comply with the deficiencies within 30 days and based on acknowledgement and the date of issue of acknowledgement would be considered as the date of filing the claim for the purpose of Section 75A of the Customs Act, 1962.
9. The drawback for exports through posts is sanctioned in the Foreign Post Office.
Flow Chart
Regulatory Guidelines as per Central Bank (RBI) for exports through post
1. Postal Authorities shall allow export of goods by post only if the original copy of the EDF has been countersigned by an AD.
2. EDF should be first presented by the exporter to an AD for countersignature.
3. AD shall countersign EDF after ensuring that the parcel has been addressed to their branch or correspondent bank in the country of import and return the original copy to the exporter.
4. Exporter shall then submit the EDF to the post office with the parcel.
5. The duplicate copy of EDF shall be retained by the AD for receipt of relevant documents together with an extra copy of invoice.
6. All documents should be submitted within the prescribed period of 21 days from the date of dispatch.
7. The concerned overseas branch or correspondent shall be instructed to deliver the parcel to consignee against payment or acceptance of relative bill.
8. AD may, however, countersign EDF covering parcels addressed direct to the consignees, provided:
a. There is an irrevocable letter of credit for the full value of export has been opened in favor of the exporter and has been advised through the AD concerned. OR
b. The full value of the shipment has been received in advance by the exporter through an AD. OR
c. The AD is satisfied, on the basis of the standing and track record of the exporter and the arrangements made for realization of the export proceeds.
9. Any alteration in the name and address of consignee on the EDF form should also be authenticated by AD under its stamp and signature.
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