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What is Let Export Order: Guide on how to obtain LEO in export trade

Let export order is a document that permits the clearance and loading of goods for export from India. Learn about importance of Let Export Order and how to obtain it.
what is let export order
Export procedures have been simplified with paperless transactions and easy online applications in the past few years. This has made obtaining licenses and documents easier, making export procedures hassle-free.

One of the key documents required before the shipment of goods is a Let Export Order. Once the goods are ready for export, an exporter is expected to arrange for customs clearance of the goods. This procedure starts with the submission of the shipping bill along with other documents. In the next stage, the customs officer checks the paperwork, assesses the value of goods, completes the inspection, and issues the Let Export Order to the exporter.

What is a Let Export Order (LEO)?

A Let Export Order is an important document that is presented in the final step within compliance authorized by the designated customs officer when exporting goods from India. It can be obtained from the customs department after completing a set of formalities including inspection and verification .

Once these formalities are completed, the customs Department passes the Let Export Order and hands it over to the exporter or the customs handling agent (CHA). An exporter doesn't necessarily need to appoint a CHA. They can also fulfill the formalities of the Customs Department and get Let Export Order. However, businesses hire clearing and forwarding agents to save time and effort in getting the paperwork in order1.

Who issues a Let Export Order?

The customs department is the government authority responsible for monitoring cargo moving in and out of India. Once an exporter or CHA completes the required legal export formalities, the customs department issues a LEO (Let Export Order) for the particular cargo.

How to obtain a Let Export Order?

An exporter can apply for and obtain a Let Export Order online. Below are the steps to obtain a LEO from the customs department2:

1. The exporter must prepare a commercial invoice and packing list and submit it with an SDF Declaration.
2. The respective CHA or exporter files shipping documents and shipping bills online on the customs portal – ICEGATE. The centralized customs software automatically generates the shipping bill .
3. Post this, cargo is moved to the location where it needs to be shipped from – this could be an airport, seaport or Container Freight Station (CFS).
4. Once the cargo is unloaded, exporter or CHA must register online for the inspection of goods.
5. A customs officer checks the goods and ensures that all formalities have been completed. Post this, an online inspection report is sent to authorities for approval. An appraiser checks the value of goods that are being exported.
6. After the inspection and valuation are completed, an online report is uploaded. Basis that, a Let Export Order is issued.

Points to note when applying for a LEO

• It is important for the exporter to obtain a Let Export Order before the shipping date.
• Whether you are applying on your own or through a CHA, the value of the goods being declared must match the actual value of the goods. If any deviation is noticed by the customs department, penalties will be issued. This might also delay the shipping process.
To ensure a smooth passage, it is essential to keep your paperwork in order and make the right declarations ahead of the shipping date. With e-commerce exports, the process of selling internationally has become simpler with assistance at every step.

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Frequently Asked Questions

What is LEO?
LEO stands for Let Export Order. It is the final compliance requirement for exporting goods from India.
How do I get a copy of my LEO?
You need to submit shipping bills to the customs department and request the physical inspection of goods. After the inspection is complete and the value of goods has been checked, customs issues a Let Export Order.
What is LEO in shipping?
LEO in shipping stands for LET Export Order. The customs department issues LEO after inspecting the quantity and value of goods being shipped, along with other mandatory paperwork.
Is LEO necessary for export?
Yes. LEO is necessary to export goods from India.
What is the full form of LEO in shipping?
LEO in shipping stands for Let Export Order.
Published on July 22, 2022.

Sources:
1. https://howtoexportimport.com/What-is-LET-EXPORT-order-in-export-trade--43.aspx
2. https://www.cbic.gov.in/resources/htdocs-cbec/customs/cs-circulars/cs-circulars-2020/Circular-No-30-2020.pdf
3. https://www.dripcapital.com/resources/blog/what-is-let-export-order
4. https://agriexchange.apeda.gov.in/Ready%20Reckoner/Procedure_for_Clearance.aspx
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*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.

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