Stephanie Duong

The CIP price is the price or cost which is chargeable or quoted to the buyer by the seller during the trade process. Under CIP the seller has to pay for freight, carriage and all other charges till the destination port out of his own pocket and cannot recover it as shipping cost from the buyer, however he may consider these costs and accordingly arrive at the price which he wants to quote to the buyer.

When exporting any wooden products, exporters have to carry out fumigation and exhibit the certificate. Additionally, if you’re using wooden packing materials like wooden pallets or stands, they need to undergo fumigation as well. A lot of exporters have shifted to using plastic packing materials to eliminate the risk of pest infestation and the need to fumigate all the different types of containers that they use for their shipments.

However, fumigation is only mandatory for wooden products. Exporters do not need to fumigate wooden derivative products like cardboard, particleboard, etc. Exporters can switch to using these materials as packaging materials to circumvent fumigation.

Domestic Tariff Area (DTA) refers to all areas other than SEZs and EOUs.

The DTA units have no obligation to export, except when they obtain any duty free inputs or duty free capital goods for export production.

They have no restriction on how much they can sell in DTA. Within the DTA, the manufacturers in some regions get some special concessions and incentives, like duty exemptions or refunds.

A Special Economic Zone (SEZ) is a specially delineated geographical enclave, which is deemed to be a foreign territory for the purpose of certain economic laws.

The idea is to help build world class infrastructure and offer a package of incentives in notified areas where manufacturers, service providers and traders can operate in a hassle free environment and boost exports.

Many other allied laws relating to excise, customs, service tax, central sales tax, value added tax, income tax etc. have also been amended suitably to give necessary inducements to SEZ developers who build and maintain necessary infrastructure and SEZ units who operate in the processing areas within the SEZ.

All products, technology, and software being exported need to have an ECCN assigned in order to determine if a license is required. An ECCN is also required when completing the Automated Export System (AES) online export information.

Also, when you have an EAR-controlled document, the ECCN number should be clearly identified on the cover page or other appropriate place, depending on the medium.