Last updated: December 13th, 2022 11:26 AM

Export of Goods Through Post

The goods that are not prohibited or restricted for export as per FTP can be exported by post through specified Foreign Post Offices or Sub-Foreign Post Offices, or Export Extention Counters. The goods under the Drawback claim can also be shipped through posts but not under export promotion schemes like DEPB, Advance License, DFRC, EPCG, etc. Commercial samples, goods prototypes, and gifts can also be exported via post. In this article, we look at the procedure and regulations for the export of goods through the post.

Legal Provisions and Exemptions for Postal Exports

• The rate of duty and tariff value that applies to any goods exported by post shall be at the speed and valuation in force on the date the exporter delivers the goods to the Postal Authorities for exportation.
• Bona fide commercial samples and prototypes of goods that are supplied free of charge of a value not more than Rs. 50,000, if subjected to any prohibition or restriction for export under FTP and that does not involve the transfer of foreign exchange, can be exported through posts.
• Bona fide gifts of articles for the personal use of a value that are not more than Rs. 25,000 and are not subject to any prohibition or restriction on their export under FTP and that do not involve the transfer of foreign exchange can be exported through posts.
• Exports are 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 issued by an authorized dealer in foreign exchange in India.
• The Government of Nepal bans Indian currency notes of Rs. 500 and Rs. 1,000 denominations. Hence, the Indian currency notes of Rs. 500 and Rs. 1,000 denominations are not permitted for exportation to Nepal.
• Restrictions/ prohibitions under the FTP and the Customs Act 1962 is applicable for exporting various articles by post. These articles include arms and ammunition, explosives, flammable material, intoxicants, obscene literature, certain crude and dangerous drugs, antiquities, narcotic drugs, etc.
• Export of purchases that foreign tourists make is allowed through posts if there is proof that the payment has been made in foreign exchange.

Procedure for Postal Exports

• Articles that are exported by posts have to be covered by a declaration in the prescribed form.
• 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.
• Suppose the postal article is covered by a certificate issued by the RBI or by an authorized dealer in foreign exchange that the export does not evolve any transaction in foreign exchange up to Rs. 500. In that case, the declaration in a P.P. Form is not required.
• The letters and parcels produced by the postal authorities to Customs Officer in the Foreign Post Office. After the preliminary survey of the letters and declarations, the concerned officer ensures that prohibited goods, like narcotic drugs, foreign exchange, currency, etc., are not sent through the parcel. The suspected parcels would be detained, and other letters and properties would be handed over to the postal authorities for shipping to their destination.
• Customs Officer will open the detained parcels in the presence of the postal authorities. Suppose the same does not contain prohibited or restricted goods, and there is no misdeclaration of value or Drawback. In that case, the parcels are repacked and handed to the postal authorities for export.
• Suppose the detained parcels hold restricted or prohibited goods or mis-declared goods to avail inadmissible export benefits. In that case, the case will be investigated, and adjudication proceedings will be initiated.

Procedure to Claim Drawback on Export Through Post

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 labeled 'Drawback Export,' and the exporter delivers to the postal authorities a claim in Annexure I to the given rules in quadruplicate. The date of receipt of the said claim to the concerned officer of CUstoms is relevant to the date for filing of claiming purpose as per Section 75A of the Customs Act, 1962. If the claim is incomplete, a deficiency memo will be issued within 15 days, and if the exporter complies with the deficiencies within 30 days, an acknowledgment will be given. The date of issue of exposure would be considered as the date of filing the claim for Section 75A of the Customs Act, 1962. The Foreign Post Office sanctions the Drawback for exports through posts.

Drawbacks of Goods Re-Exported Through Post

The goods imported on payment of duty can be re-exported through posts, and the applicable Drawback rates under Section 74 of the Customs Act, 1962 are claimed. The Drawback of the duty has to be paid when the import is permitted abiding by the conditions of Section 74 of the Customs Act, 1962, and Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995. The concerned Customs Officer at the Foreign Post Office shall be satisfied with the identity of the goods re-exported, and if it cannot be established, no drawback is payable. The procedure for claiming Drawbacks on goods re-exported through posts is given below.

• Rule 3 of Re-export of Imported Goods Rules 1995 (Drawback of Customs Duties) needs an outer packing of the parcel to carry the words 'Drawback Export,' and the exporter gives a claim according to Annexure I of the Rules in quadruplicate to the Postal authorities. The date of receipt of the given Annexure I by Customs from Postal charges would be the date of receipt of the claim for Section 74 of the Customs Act, 1962, and the exporter would be informed.
• A deficiency memo will be issued in 15 days if the claim is incomplete. If the exporter files the claim again after agreeing with the deficiencies within 30 days, the receipt will be acknowledged. This date would be the date of filing the claim for purposes of Section 74 of the Customs Act, 1962.
• The Drawback under Section 74 of the Customs Act, 1962 would be paid by the Customs Officer in Foreign Post Office.

Re-export of Partial Consignment

1. If the addressee takes the delivery of parcels on payment of duty and then wishes to return them to the sender, they can do it under the claim for Drawback after following the prescribed procedure.
2. They are allowing an addressee to open a parcel and to take the delivery of part contents on payment of duty and repack the balance of the contents for re-export without the payment of duty thereon that is not authorized and irregular.

Exports by Post (Amendment) Regulations, 2022

The Central Board of Indirect Taxes and Customs (CBIC), on December 09, 2022, issued a notification to further amend the Exports by Post Regulations, 2018. This shall come into force on December 09, 2022. The following has been amended :

• In regulation 3, which states “Definitions” in sub-regulation (1), for the words “international credit and debit cards and as specified,” the words “various electronic means and by the guidelines issued” shall be substituted.
• Various forms shall be substituted with the forms attached to the document.

The official notification about Exports by Post (Amendment) Regulations, 2022 is attached here for reference:

Import Export Code

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