A Complete Guide on Export Declaration Form

As an Indian exporter, you will feel great pride in the way you help shape our economy by bringing in foreign currency. On the other hand, as exporters, you must follow all the guidelines that apply to your business to meet all the compliance requirements that your business faces.

In this article, we will examine the Export Declaration Form (EDF), which is crucial to the export process. Let’s dive right in and examine some aspects of the EDF.

What is the purpose of EDF?

Exporters use the EDF to declare the goods or services they are exporting.

1. Details of export: It lists all the details of the goods or services to ensure compliance with the Directorate General of Foreign Trade (DGFT) and other related authorities.

2. Customs clearance: As an exporter, you need to get clearance from customs authorities, who examine the goods exported, the value of the shipment, and other required details.

3. Bank or authorized dealer: Once the goods have cleared customs, the exporter needs to secure FIRC from the authorized dealer or bank. The AD bank must review the details of the export transaction and facilitate the movement of funds back to India within the prescribed time.

4. EDPMS: The Export Data Processing and Monitoring System, an online portal that the Reserve Bank of India (RBI) requires exporters to submit the EDF. As an exporter, you must first register with the EDPMS to submit EDF online.

5. FEMA compliance: All exporters must ensure that all export transactions comply with the Foreign Exchange Management Act (FEMA). One such requirement is that exporters submit the EDF on time and that the funds related to the export transactions are moved to India within the assigned period.

6. EDF details: The export declaration form must include relevant information, such as the exporter's name and address, and other pertinent details, such as the description of goods, the Harmonized System (HS) code, invoice value, transaction currency, and shipment mode.

7. Avoid penalties: Exporters face penalties if they do not submit the EDF on time or if the information in the EDF is incomplete. These penalties include legal action or fines and affect the future transactions of the exporter.

8. Dealing with changes: In business, it is natural to make changes or amendments if required, and this is the case with exporters when the deal details change. You need to update the authorized dealer bank and the customs authorities about these changes in the EDF to ensure compliance.

● Also read: Documents required for Cross-border trade

Now that we have looked at EDF's role and its importance to an exporter, let's also understand the details that go into it. The EDF is detailed and has several sections, and it may not be possible to detail all of them here. However, we can offer a snapshot of the details on the EDF.

Details of the exporter

1. Name and complete address, including the contact details of the exporter

2. The unique 10-digit code or the IEC (Importer Exporter Code) assigned by the Directorate General of Foreign Trade

3. The Goods and Services Tax Identification Number is also to be included

Buyer name and address

1. Name and address of the consignee or the foreign buyer

2. Destination country to which the goods or services are being delivered

Invoice details

1. The date of the commercial invoice and reference number

2. The FOB (free on board) value of the goods in the currency specified

3. Details of the currency

Shipment description

1. Provide the details of the Indian port from where the goods are being shipped

2. The destination port where the goods will be landed and unloaded

3. Specifics of the transportation mode through which the goods are being shipped

4. The unique number (bill of lading or airway bill number) needs to be added

5. Harmonized System (HS) code for the exported goods

Details of the exported goods

1. Provide a detailed description of the goods being exported

2. The quantity and dimensions of the goods being exported

3. Unit of measurement of the goods (in meters, kilograms, etc.) in the shipment

Financial and banking aspects

1. The authorized dealer (AD) code of the bank which will deal with export proceeds

2. The bank account number where the export proceeds will be realized

3. The mode of payment, like a Letter of Credit, card, or other modes, needs to be specified

Declaration

1. The exporter has to provide a statement certifying that all the details provided are accurate and in compliance with the applicable regulations

2. The exporter must sign the form along with the date of the submission of the EDF

Custom-related details

1. Provide information about the Customs House Agent (CHA) where applicable

2. There will be section for custom authorities to verify and approve the declaration

As an exporter, you must fill out all the details in EDF to ensure seamless transactions. Did you find the above information helpful? At LeRemitt, we strive to help all our clients with a user-friendly platform and other support. Want to learn how we can help? Click here to connect with our friendly and intelligent team!