Export Value Declaration is a document submitted at the export port by the exporter, which contains information about shipment, type and value. Learn more about it in this blog.
In International trade, shipment and related documentation is important. Understanding the requirements and planning as per this will decrease blockers in the export logistics process. Among the mandatory licenses and documents, Export Value Declaration is an important one.
What is Export Value Declaration?
An export declaration form is a document that exporters submit at the port from where the goods are shipped to the importer. This form provides crucial information about shipment like content, type, value and number. The customs officer uses this information to compile essential statistical information regarding the country’s foreign trade1. There are various ways to issue an export declaration of goods such as verbal, electronic, and conclusive customs declarations. Electronic registration is the most preferred and standard procedure to follow if the shipment weight and value are under a certain number. The application can also be made verbally depending upon the value and type of goods being shipped.
Contents of Export Value Declaration form
Below are some of the key details to be included in the declaration form:
· Shipping bill number and date: It is the unique identification number mentioned on the shipping bill and the date on which the bill is issued. · Invoice number: It is the unique number of a shipment invoice. · Nature of the transaction: This information consists of details like sale, sale on consignment, gift, samples, etc. · Method of valuation: There are various methods to declare the value of export goods. In this section, the exporter must mention which declaration rule is used to declare the export value. · Exporter-import relationship: This part of the form mentions whether the exporter and importer have any previous business relationship. · Terms of payment: These are the terms of payment opted by the importer. · Term of delivery: These are the terms of how the shipment will be delivered. · Previous export of similar or identical goods: This part clarifies if the exporter has previously exported similar or identical products. · Miscellaneous information · Signature of the exporter and the signatory
What is the need to declare export value?
To empower Indian exporters, the Government of India has launched various initiatives, schemes, and offers. To make the process of exporting easier for Indian exporters, the government introduced the Customs Valuation (Determination of Value of Export Goods) Rules in 2007. The value declaration aims to ensure a hassle-free export procedure, according to the legal guidelines. Below are some of the reasons why it is essential to declare export value2:
To determine export value
The primary goal of export declaration is to determine the value of goods being shipped, which helps the parties estimate the worth of goods. Depending on this, exporters pay various tariffs and charges.
To determine contents of a shipment
To maintain trade transparency and avoid discrepancies in paperwork, the exporter needs to declare export value. They can use an export declaration form to declare the number and nature of goods in the shipment. As certain goods require special permits to enter a particular country, declaring export value helps identify content of the shipment and ensure whether it is allowed to be imported.
To control export of illegal or restricted goods
Goods like tobacco, alcohol, and petroleum products often fall into restricted goods for most countries. Exporters must submit the declaration form to avoid any consequences of exporting restricted or illegal goods.
How to fill an Export Value Declaration?
Below are a few steps that can be followed to fill declaration: · Enter shipping bill number and date of declaration · Enter invoice number and related details · Enter the nature of the transaction – a direct sale, sale on a consignment basis, gift, samples, etc. · Enter the method used for evaluation of goods’ value · Enter whether the exporter has any relation with the importer · Enter terms of payment and delivery · Review the declaration and sign it · Submit the form to the authorized person to get a signature
The exporter must declare goods’ nature, number, content and value before exporting them. The decorations ensure the packaging doesn't contain any restricted or illegal items and the shipment follows all the necessary guidelines and compliance of exports. It will ensure that the importer receives the shipment on time and without hassles.
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Frequently Asked Questions
Is it necessary to declare the value of an export package?
Yes, it is essential to declare the value of the export package to determine its content, value, weight and legality.
What is the difference between an export value declaration and Bill of entry?
The declaration of export is a form to declare the value, weight, and content of your shipment and confirm the payment from the importer; on the other hand, the bill of entry is the document filled during the import, which contains information like invoice number, date, the volume of the goods and the invoice amount. The importer files it upon the arrival of the goods.
What is the SDF form in export?
SDF stands for Statutory Declaration Form. It is used at the time of processing the shipping bills electronically at the customs office.
Who should make an export declaration?
The declaration of export goods should be made by the exporter or the export agent.
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