If you are an exporter, it is imperative to know that moving perishable cargo across international borders is a bit complex. You must adhere to the varied rules and regulations of the different countries as imposed by the international government. The Customs Department monitors all import and export activities and adheres to the legal guidelines. Your cargo will receive a Let Export Order (LEO) upon completion of the necessary customs formalities.
What is Let Export Order in Export?
The LEO full form in export stands for Let Export Order, which represents the final legal step in the export process for transporting perishable goods from one port to another. This LEO procedure, handled by the Indian Customs Department, assesses the value of your perishable goods and examines them before they can be officially exported from India.
Who issues the Let Export Order?
The customs department is responsible for inspecting your perishable cargo moving in and out of India. Once an exporter or CHA completes the legal export formalities, the customs department issues a Let Export Order for the specific cargo.
What are the steps involved in filling out the shipping documents for the customs department?
These are as follows:
- As stated by the government, it is not mandatory to hire a house agent; you can directly complete the customs formalities. But it is better to take help from a licensed professional house agent to lessen the risk of customs-related complications arising from paperwork errors or technicalities. These licensed professionals act as intermediaries between the customers and the customs department to check that all the import and export documents are maintained correctly.
- The exporter, after preparing the commercial invoice and packing list, submits these documents along with the Statutory Declaration Form (SDF) to the Customs House Agent (CHA). In today’s world, shipping documents can be filed online, and the process is quite easy. Once the CHA receives the invoice, packing list, and SDF, they file the shipping bill online . This Let Export Order process is centralized, making it accessible and convenient for customs offices across the country.
- You can move your perishable cargo after generating the shipping bill online, where the customs officials will be available to examine the goods and complete the entire export process.
- For the customs-bonded areas, you need to collaborate with carriers to determine the unloading slot for your cargo, as different carriers may have different handling locations.
- The moment the cargo is unloaded at the given slot, the CHA or an exporter should contact a customs official to register the perishable goods online. The concerned inspector physically examines the goods, making sure that you are shipping them with the required documents and that the quantity, numbers, and other relevant parameters align with international standards.
- The customs officer creates an inspection record online after verifying the cargo and waits to get approval online from the higher customs authorities. The evaluation of your perishable goods is done by an appraiser. Keep in mind that the value of the goods mentioned in the invoice should tally with the market price.
Why is it important for an exporter to declare the market value of goods in import and export documents?
Exporters are able to receive government benefits based on the product value, which might lead to over-invoicing and other document exploitation. Once the goods are checked thoroughly, the report is uploaded to the centralized system. The Customs Department grants approval to move the cargo out of the country by issuing a "Let Export" document. This process is commonly known as the "Let Export Order." After the issuance of the Let Export Order, a printout of the shipping bill is generated, which is signed by the authorized customs officials.
The original shipping bill contains an exchange control copy and a shipping bill for the exporters to ship their goods by sea transport. After the perishable cargo is exported from India, the carrier files an Export General Manifest (EGM) with customs, briefing the details of the goods. In accordance with the EGM, the Export Promotion (EP) copy of the shipping bill issued by the customs department is considered export evidence. Central excise documents like ARE, duly signed by the customs officials along with the EP copy, are needed for exporters to claim incentives or financial assistance from government agencies.
What is Leo Copy in Export to fill out the online procedure?
- The CBIC has implemented digital copies of the shipping bill to make customs processes faceless, contactless, and paperless, as stated on July 22, 2020.
- Printing three copies of the shipping bill (customs, exporter, and export promotion) will no longer be considered.
- A digital PDF out-of-charge (OOC) replaces the traditional method.
- The final Let Export Order (LEO) copy of the shipping bill will be sent via mail to customs brokers and exporters.
- This electronic copy can be shared with the Directorate General of Foreign Trade (DGFT) banks, DGFT, and others for various purposes.
The final Let Export Order (LEO) of the shipping bill consists of the following:
- The PDF shipping bill will be electronically signed and include an inaccessible QR code that can be scanned with the ICETRACK mobile app to verify the authenticity of the document. The QR Code includes details like SB No., SB Date, FOB Value, and Package Details.
- The QR Code also has a version number to check the document version via ICEGATE .
- Although printing transference copies is now optional, many logistics operators still use printouts. Thus, the Directorate General of Systems has made it compulsory to send the eGatepass PDF copy of the shipping bill by email.
Conclusion
The "Let Export Order" is a crucial document that has major significance in the export and import operations. With the introduction of digital processes, the final Let Export Order (LEO) is now issued digitally, simplifying the complexities of the export process.
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