Tuesday, September 7, 2010

SENDING/EXPORTING SAMPLES

As the overseas buyers generally insist for the samples before placing confirmed orders, it is essential that the samples are attractive, informative and have retention and reminder value.  Besides, the exporter should know the Government policy and procedures for export of samples from India.  He should also be aware about the cheapest modes of samples.  In this connection, it is advised that the postal channel is comparatively cheaper than sending samples by air.  While sending samples through postal channel due regard should be given to weight and dimension of the post parcels as postal authorities have prescribed maximum weight and dimension for the post parcels handled by them.  Where it is not possible to send the samples by post parcels, the same may be sent by air.
So far as the Government policy regarding export of samples is concerned, distinction has been made between export of commercial samples and gift parcels.
In terms of Para 11.4 of the Import Export Policy as modified upto 31,3,2000, goods including edible items of value not exceeding Rs. 1,00,000 in a licensing year may be exported as a gift.  Items mentioned as restricted for exports in the ITC (HS) Classifications of Export & Import Items shall not be exported as a gift without a Licence except in the case of edible items.
Export of bonafide trade and technical sample having indelible marking as “sample not for sale” is allowed freely without any limit.  However, in such cases where indelible marking in not available, the samples may be allowed for a value not exceeding US$ 10,000, per consignment.  In addition the exporter has the option to avail the facility of free sample upto US$ 5,000 or 1% of the preceding year’s exports, whichever is higher.
An application for export of gift/samples in excess of the limits specified above may be made to the DGFT.
Special provisions have been made for export of garment samples.  Garment samples are allowed to be exported only by exporters who are registered with the Apparel Export Promotion Council (AEPC) or the Wool and Woollen Export Promotion Council for woollen knitwear.
Export of samples to be sent by post parcel or air freight are further divided into following categories, namely:
1.                  Samples of value upto Rs. 10,000.
2.                  Samples of value less than Rs. 25,000.
3.                  Samples of value more than Rs. 25,000.
4.                  Samples of Jewellary.
Where the value of the articles is less than Rs. 10,000, the exporter should file a simple declaration that the sample does not involve foreign exchange and its value is less than Rs. 10,000.
Where the value of samples is more than Rs. 10,000 but less than Rs. 25,000 you should obtain a value certificate from the authorised dealer in foreign exchange (i.e. your bank).  For this purpose, you should submit a commercial invoice certifying thereon that the parcel does not involve foreign exchange and the aggregate value of the samples exported by you does not exceed Rs. 25,000 in the current calendar year.
If the value samples exceeds Rs. 25,000 you should obtain GR/PP waiver from the Reserve Bank of India.
In the case of samples of Jewellery, please that the authorised dealer certificates on the PP form.
Export of trade samples is allowed by sea/air (as distinguished from sea/air mail) without any value restriction, provided the customs authorities are satisfied about the bona fide of the gods that they do not fall in the export control restrictions.  However, customs authorities may ask for suitable documentary evidence in this regard viz, correspondence etc. with the overseas buyer.
Trade samples against which the foreign buyer agrees to make payment can be exported in the same manner in which normal exports are effected.  Samples can also be carried personally by you while travelling abroad provided these are otherwise permissible or cleared for export as explained earlier.  However, in case of precious jewellery/stone items, you should declare the same to the customs authorities while leaving the country and obtain necessary endorsement on export certificate issued by the Jewellary Appraiser of the Customs.


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