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Author: Financial Analyst

  • Step-by-step: How to file Form INC-22A (ACTIVE)

    INTRO

    Form INC-22A (ACTIVE) — also called the ACTIVE form — is the MCA’s company KYC / registered-office verification form that companies must complete so their status on the MCA portal remains “ACTIVE-Compliant.” cleartax+1

    Who must file (summary)

    • Companies incorporated on or before 31 Dec 2017 were originally required to file INC-22A. Some categories are exempt (struck-off companies, companies ordered to be struck off, etc.). Check current MCA rules for exact applicability. ICSI+1

    Note: MCA has updated INC-22A into a web-based version (effective July 14, 2025) — so the filing experience and data validation have changed from the old PDF/e-form flow. Always use the live MCA web form. https://www.taxmann.com+1

    Key consequences if you don’t file

    • Non-filing can mark the company as “ACTIVE — non-compliant” on MCA. This can block filing of other MCA forms and invite actions including penalties and potential strike-off if not corrected. A late compliance fee / penalty (commonly shown as ₹10,000 in past MCA notices) may be applicable to regain “ACTIVE-Compliant” status. Ebizfiling+1

    What you need before you start

    1. Company CIN and registered office address.
    2. DSC (Digital Signature Certificate) for the director / authorised signatory (INC-22A requires DSC). Legal Dalal
    3. Official company email and mobile (OTP verification may be used). Legal Dalal
    4. Clear photographs of the registered office (outside board with address and inside office with an officer present). Legal Dalal
    5. Utility bills / rent agreement / property papers or other proof of office address (as required).
    6. GPS coordinates (latitude/longitude) for the registered office location (web form may request). Legal Dalal

    Step-by-step filing process (simple language)

    Step 1 — Gather documents & photos

    Collect: company PAN/CIN, current address proof (electricity/telephone/municipal tax bill or rent agreement), recent utility bill, clear outside photo (showing name board with full address), inside photo (showing a director / authorised person present). Have DSC ready. Legal Dalal+1

    Step 2 — Login to MCA portal

    Visit mca.gov.in, sign in with your company account. Since 2025 the INC-22A is a web form — open the INC-22A / ACTIVE link under company filings. Use the company’s registered email and DSC when prompted. https://www.taxmann.com+1

    Step 3 — Fill basic company details

    The form will auto-populate some fields (CIN, company name). Enter/update registered office details, principal place of business, and confirm director / KMP details as requested. Keep earlier filings (INC-22, RUN, DIR-12 etc.) handy to cross-check data. SAG Infotech Official Blog+1

    Step 4 — Upload evidence & photos

    Upload the required office photos, address proof scan(s), and any other supporting documents requested. The web form may ask for GPS coordinates — paste those when required. Follow file size/format instructions shown on the form. Legal Dalal

    Step 5 — OTP / Email verification

    The web form commonly uses OTP verification sent to the company email or mobile; enter the OTP to proceed when prompted. Legal Dalal

    Step 6 — Sign with DSC & submit

    Sign the completed form electronically using the authorised director’s DSC and submit. The web form will validate the inputs in real time; correct any validation errors and re-submit. https://www.taxmann.com+1

    Step 7 — Download acknowledgement and keep records

    After successful submission you will get an acknowledgement / SRN. Download and store the acknowledgement and all uploaded documents for your records. If MCA asks for further clarifications, respond promptly. Legal Dalal

    Common rejection reasons — avoid these

    • Poor quality photos (board not visible / address not legible).
    • Address proof not matching the registered office address or name.
    • DSC mismatch or expired DSC.
    • Incorrect or inconsistent data vs earlier filings (INC-22, DIR-12, AOC-4, MGT-7).
    • Missing OTP verification or wrong email/phone records. Legal Dalal+1

    Practical Saving Mantra tips

    • Take clear, dated photos where the company name and full address are visible; include a director in the interior shot. Legal Dalal
    • Cross-check director names and addresses with MCA records before filing to avoid mismatch rejections. SAG Infotech Official Blog
    • Renew DSC well before filing to avoid last-minute failure.
    • If your company has moved office, first ensure the registered office change (INC-22 / other required forms) is done correctly before filing INC-22A. ICSI+1

    Fees, timelines & late filing (what to expect)

    • Historically MCA allowed filing within specific windows and applied a late compliance fee (public guidance commonly mentions ₹10,000 as the late fee applied to get “ACTIVE-Compliant” status in past rounds). Check the current MCA notice for up-to-date fee / penalty rules before filing. Ebizfiling+1

    Short checklist (copy and use)

    • CIN & company PAN available
    • DSC of director / authorised signatory valid
    • Company registered email & phone active
    • Outside office photo with name board & full address
    • Inside office photo with authorised person present
    • Address proof (utility bill / rent agreement / ownership docs)
    • GPS coordinates of office location
    • Previous MCA filings (INC-22, DIR-12, AOC-4, MGT-7) for cross-check

    Sources / further reading (official & expert notes)

    Key references used while preparing this guide: MCA guidance and reputable compliance write-ups explaining INC-22A (ACTIVE) and the 2025 web-form update. Please consult the MCA portal for the live form and exact instructions. Ebizfiling+4cleartax+4https://www.taxmann.com+4

    Disclaimer

    This guide is for general information only. Rules, applicability, filing method and fees for Form INC-22A (ACTIVE) are set by the Ministry of Corporate Affairs and may change. MCA replaced/updated the form to a web-based flow in 2025 — always use the live MCA portal (mca.gov.in) for filing and check the latest notifications before you act. For complex cases, consult a Company Secretary / CA. Saving Mantra is not responsible for actions taken based on this guide.

  • Step-by-Step Process for Filing Bonus Return

    When a company issues bonus shares to its shareholders, it must file a Bonus Return with the Registrar of Companies (ROC). This confirms that the shares were properly allotted and records the updated share capital.
    Here is a simple guide to help you understand the entire process.

    Step 1: Board Meeting Approval

    The company holds a Board Meeting to:

    • Approve the bonus issue
    • Decide the bonus ratio (example: 1:2)
    • Confirm the source of funds (free reserves)

    Nothing can start without Board approval.

    Step 2: Shareholder Approval (If Needed)

    Some companies may need shareholder approval through a General Meeting.
    This depends on the Articles of Association or company type.

    Step 3: Increase Authorised Share Capital (If Required)

    If the bonus issue exceeds the current authorised capital:

    • A resolution is passed
    • Form SH-7 must be filed with ROC

    Only then can bonus shares be issued.

    Step 4: Allotment of Bonus Shares

    Once approvals are complete, the company allots the bonus shares to all eligible shareholders based on the approved ratio.

    Step 5: File Bonus Return — Form PAS-3

    This is the main step.
    The company must file Form PAS-3 (Return of Allotment) with the ROC.
    This form includes:

    • List of shareholders who received bonus shares
    • Number of shares allotted
    • Board/shareholder resolutions
    • Updated share capital details

    PAS-3 must be filed within the prescribed time limit.

    Step 6: Update Statutory Registers

    After filing PAS-3, the company updates:

    • Register of Members
    • Share certificates (if applicable)
    • Demat credit records

    This completes the allotment process.

    Step 7: Inform Stock Exchange (If Company Is Listed)

    Listed companies must also:

    • Inform the stock exchange
    • Ensure demat credits
    • Receive listing approval for the new shares

    Why Filing Bonus Return Is Important

    • Legally records the new shares issued
    • Updates company’s share capital
    • Maintains transparency
    • Required for compliance under Companies Act

    FAQ

    Q1. Which form is used for Bonus Return?
    Form PAS-3 is used for filing the Return of Allotment.

    Q2. Is shareholder approval always required?
    Not always. It depends on company rules and Articles of Association.

    Q3. What if the company delays filing PAS-3?
    Late fees and penalties may apply.

    ⚠ Disclaimer

    This article provides general information on filing Bonus Return and issuing bonus shares. Actual compliance may vary depending on company type, authorised capital, and MCA rules. Always consult a company secretary or compliance expert before filing any ROC forms.

  • Step-by-step: How to File LLP — Form 11 (Annual Return)

    Introduction (simple)

    Form 11 is the annual return every Limited Liability Partnership (LLP) must file with the Ministry of Corporate Affairs (MCA). It shows who the partners are, the capital contributed, and basic LLP details as on the end of the financial year. Filing Form 11 is mandatory even if the LLP had no business activity. cleartax+1

    Important at-a-glance facts

    • Due date: within 60 days of the financial year end — normally 30 May. cleartax+1
    • Who must file: every LLP registered in India (active, dormant or no-trade). LegalWiz.in
    • Signing: Form 11 must be signed electronically (DSC) by the designated partner(s) or an authorised signatory; MCA enforces DSC usage. CS Pratik K Shah+1
    • Late fee / penalty: late filing attracts a penalty (commonly ₹100 per day) and additional ROC fees — penalties increase with delay. LinkedIn+1

    Step-by-step filing process (simple language)

    Step 1 — Get ready (basic checks)

    1. Confirm your LLPIN and LLP name.
    2. Ensure at least one Designated Partner has a valid DSC (Digital Signature Certificate) ready.
    3. Keep your PAN, LLP agreement, and previous year filings (if any) at hand. CS Pratik K Shah+1

    Step 2 — Collect required details & documents

    Most of Form 11 is data, not heavy attachments. Prepare:

    • Details of all partners and designated partners (names, addresses, DPIN/DIN if any).
    • Total contribution due from each partner and total contribution actually received.
    • Principal business activities (brief description and NIC/industry code).
    • Registered office address and contact details.
    • Any changes in partners or contributions during the year (cross-check with Form 4 filings). LegalWiz.in+1

    Step 3 — Login to MCA portal and open Form 11

    1. Sign in at mca.gov.in with your registered account.
    2. Go to LLP Services → Annual Filings → Form 11 (Annual Return).
    3. Select the correct financial year (for FY ending 31 Mar, choose that year). CS Pratik K Shah

    Step 4 — Fill the form carefully (enter accurate data)

    • Enter LLPIN (it auto-populates LLP name).
    • Add partner details, share of capital, and business activity.
    • Make sure figures match prior filings (mismatches cause rejections). LegalWiz.in

    Step 5 — Save, review & attach (if prompted)

    • Save as draft while filling so you can review.
    • Attach any supporting documents only if the form explicitly asks. In most cases Form 11 is summary data entry. CS Pratik K Shah

    Step 6 — Sign with DSC and pay fees

    • Generate SRN, sign the form electronically using the Designated Partner’s DSC, and complete payment of prescribed fees on MCA portal. If DSC is not uploaded or fee not paid within the MCA timelines, the SRN may be cancelled — so complete these steps promptly. CS Pratik K Shah+1

    Step 7 — Download acknowledgement and keep records

    • After successful submission you will get an SRN / acknowledgement. Download and save the filed copy for your records. Keep all related documents for audits and future references. LegalWiz.in

    Common rejection causes — what to avoid

    • Wrong LLPIN or wrong FY selected.
    • Mismatched partner names or DPIN/DIN compared to earlier filings.
    • Differences in contribution amounts vs Form 4/Form 8 data.
    • Expired/absent DSC or failure to complete payment after SRN generation. CS Pratik K Shah+1

    What if you miss the deadline?

    You must still file the Form — late filing only increases the penalty. The MCA levies daily penalties (commonly ₹100 per day) and there can be higher limits for maximum penalties — file as soon as possible to limit fines. LinkedIn+1

    Quick checklist (ready to use)

    • LLPIN & PAN available
    • DSC of at least one Designated Partner ready
    • List of partners & addresses ready
    • Contribution details (due & received) ready
    • Previous year filings (Form 4 / Form 8) for cross-check
    • Bank / payment details for MCA fees

    Practical Saving Mantra tips

    • Prepare early — start 2–3 weeks before the deadline so corrections are possible.
    • Cross-check numbers against previous filings to avoid rejections.
    • Keep DSCs current — renew before expiry to avoid last-minute problems.
    • If multiple partner changes happened, ensure Form 4s are processed before filing Form 11.
    • Use a practitioner (CA/CS) if this is your first few filings to reduce errors and penalties. LegalWiz.in

    Disclaimer

    This guide is for general informational purposes only. MCA rules, filing formats, due dates, fee structures and penalty amounts can change. Always verify live requirements on the official MCA website (mca.gov.in) or consult a qualified Company Secretary / Chartered Accountant before filing. Saving Mantra is not responsible for actions taken based on this guide.

  • Tea Board Registration: Step-by-Step Process for Businesses

    Step 1: Identify the Type of Tea Board Registration Required

    Depending on your business activity, choose the appropriate license:

    • Manufacturer Registration
    • Exporter Registration
    • Importer Registration
    • Tea Warehouse License
    • Auction Organizer / Buyer Registration
    • Tea Broker License

    Each category has different document requirements.

    Step 2: Create an Account on the Tea Board Licensing Portal

    Visit the official Tea Board of India licensing portal:
    https://licensing.teaboard.gov.in/

    • Click on “Register”
    • Enter business details
    • Verify email and mobile OTP
    • Create username and password

    Step 3: Prepare All Required Documents

    Common documents include:

    • Business PAN
    • Aadhaar / Authorized Signatory ID
    • GST Registration Certificate
    • Trade License / Factory License
    • Incorporation Certificate (Company / LLP)
    • Partnership Deed (if applicable)
    • Address Proof of Business
    • Bank Certificate or Cancelled Cheque
    • Undertaking / Affidavit (specific formats provided by Tea Board)
    • FSSAI Certificate (for tea packaging & processing units)

    Exporter/Importer also require:

    • IEC Certificate
    • Export Performance (for renewal cases)

    Step 4: Fill in the Online Application Form

    Log in to the Tea Board portal and select:
    “Apply for New Registration”

    Provide:

    • Applicant details
    • Factory/warehouse location
    • Production capacity
    • Machinery details
    • Export/Import information
    • Contact details

    Upload all documents in the required PDF/JPG format.

    Step 5: Pay the Application Fee

    The fee depends on the registration type:

    • Exporter License Fee: Usually ₹5,000 (approx.)
    • Manufacturer: Varies by capacity
    • Warehouse: Depends on storage size

    Payment can be made online via:

    • Debit/Credit Card
    • Net Banking
    • UPI

    Save the payment receipt for records.

    Step 6: Physical Verification (If Applicable)

    For factories or warehouses, the Tea Board officer may conduct:

    • Premise inspection
    • Document verification
    • Equipment validation

    Not required for all categories (e.g., exporters may not require inspection).

    Step 7: License Approval & Download Certificate

    After verification, the Tea Board:

    • Approves or requests additional information
    • Issues the Tea Board License online

    Login and download the certificate from the dashboard.

    Post-Registration Compliance

    Businesses must maintain:

    • Periodic returns (monthly/annual depending on category)
    • Export/production records
    • Renewal of registration before expiry
    • Adherence to quality and packaging norms

    Failure to comply may result in suspension or cancellation of the license.

    Conclusion

    Tea Board Registration is mandatory for businesses engaged in tea production, export, import, packaging, warehousing, or trading. By following the above step-by-step process, you can complete the registration smoothly and avoid compliance issues.

    If you need professional assistance, SavingMantra can help streamline the entire licensing process.

    Disclaimer

    The information provided in this blog is for general guidance only. Regulatory requirements, government fees, and processes may change over time. Users are advised to verify details with the official Tea Board of India website or consult a professional before taking any action. SavingMantra is not responsible for any errors, omissions, or subsequent changes in government regulations.

  • Step-by-Step Process for Third Party Export

    Introduction

    Third Party Export is a structure where the manufacturer sells goods to a third-party exporter, who then exports the goods under their own name. This model helps manufacturers focus on production while exporters handle all international documentation, logistics, and compliance. This guide provides a clear, actionable workflow to execute a Third Party Export smoothly and legally.

    Step-by-Step Process

    Step 1: Identify Manufacturer & Third-Party Exporter

    The first step is to finalize:

    • Manufacturer (producer of goods)
    • Third-Party Exporter (registered exporter handling the export process)

    Both parties must have:

    • Valid GST Registration
    • PAN
    • IEC (Importer-Exporter Code) of the exporter
    • Bank details for payment and remittance

    Step 2: Execute Agreement Between Parties

    A written agreement or purchase order helps define roles, pricing, and responsibilities:

    • Goods description & HS code
    • Export pricing terms
    • Delivery terms (Ex-Works/FOB/CIF etc.)
    • Payment terms
    • Quality checks and inspection

    This helps avoid disputes at the time of customs verification.

    Step 3: Manufacturer Issues Tax Invoice to Exporter

    The manufacturer raises a tax invoice to the third-party exporter (not to the foreign buyer).
    Key points:

    • The invoice is raised at the time of supply
    • GST rules for exports apply through the exporter
    • Goods move from manufacturer to port/airport/ICD directly

    This invoice acts as proof of sale between the two parties.

    Step 4: Goods Movement to Port / Customs Station

    Goods can move:

    • Directly from manufacturer to port (most common), OR
    • From manufacturer to exporter’s warehouse (if required)

    The transporter’s e-way bill must include:

    • Manufacturer as supplier
    • Exporter as buyer
    • Port/ICD as the delivery location

    Step 5: Export Documentation Preparation

    The exporter prepares complete export documentation:

    • Commercial Invoice (Exporter → Foreign Buyer)
    • Packing List
    • Shipping Bill
    • Bill of Lading / Air Waybill
    • Certificate of Origin
    • LUT/Bond for GST-free exports
    • Insurance certificate
    • Export contract with foreign buyer

    Accurate documentation is crucial for customs clearance and GST refund claims.

    Step 6: Filing the Shipping Bill

    The exporter files the Shipping Bill on ICEGATE in their own name.
    Documents required include:

    • Exporter’s IEC
    • Manufacturer’s invoice
    • Export invoice
    • Transport documents
    • Regulatory certificates (FSSAI, PQ, BIS, CDSCO if required)

    The shipping bill establishes the exporter as the “shipper of record.”

    Step 7: Customs Clearance & Cargo Examination

    Customs authorities review:

    • HS code
    • Valuation
    • Classification
    • Regulatory approvals
    • Physical examination (if required)

    Upon approval, customs issues the Let Export Order (LEO).

    Step 8: Bill of Lading / Air Waybill Issuance

    Once the goods are loaded on the vessel/aircraft:

    • The carrier issues BL/AWB in exporter’s name
    • Exporter shares documents with the overseas buyer for payment processing

    This confirms that goods have officially left India.

    Step 9: Realisation of Export Proceeds (Payment)

    The exporter receives the foreign payment in their bank account.
    Documents maintained:

    • Foreign Inward Remittance Certificate (FIRC)
    • Bank Realisation Certificate (BRC)

    These are essential for claiming export incentives and GST refund.

    Step 10: Post-Export Compliance

    Both manufacturer and exporter must keep their respective records.
    Exporter responsibilities:

    • File export returns
    • Claim IGST refund or input tax credit
    • Maintain shipping bill, BL, invoice, and payment documents

    Manufacturer responsibilities:

    • Record domestic sale (to exporter)
    • Maintain e-way bill, invoice copy, and delivery records

    Benefits of Third-Party Export

    • Manufacturer avoids export compliance
    • Exporter builds scale in international trade
    • Faster operations through division of responsibilities
    • GST refund eligibility to exporter
    • Easier logistics and documentation handling

    Saving Mantra Support

    Saving Mantra provides end-to-end support for Third Party Export:

    • Documentation drafting
    • Shipment workflow setup
    • HS code classification
    • LUT/Bond registration
    • GST refund assistance
    • Customs coordination
    • Export compliance and incentives advisory

    Disclaimer

    This blog provides general information on the Third Party Export process in India. Export rules, GST treatment, and customs requirements may vary depending on product category, government notifications, and transaction structure. This guide is not legal, tax, or customs advice. For case-specific guidance, please consult DGFT, CBIC, a chartered accountant, or a qualified export advisor. Saving Mantra can assist with personalized solutions for your business.

  • Step-by-Step Process for Freight Forwarding

    Introduction

    Freight forwarding is the backbone of global logistics—ensuring goods move seamlessly across borders through air, ocean, or road transport. A freight forwarder manages documentation, carrier coordination, customs procedures, warehousing, consolidation, and final delivery. This guide explains the freight forwarding process clearly so businesses can optimize supply chains and reduce delays.

    Step-by-Step Process

    Step 1: Shipment Planning & Requirement Analysis

    A freight forwarder begins by understanding the client’s shipment needs:

    • Cargo type (general, perishable, hazardous, machinery)
    • Origin & destination
    • Volume & weight
    • Required transit time
    • Mode of transport (air, ocean, road, rail, multimodal)
    • Budget and preferred carriers

    Accurate planning helps avoid cost overruns and supply chain disruptions.

    Step 2: Freight Quotation & Route Selection

    The forwarder provides a detailed quotation that includes:

    • Freight charges
    • Fuel surcharges
    • Terminal handling fees
    • Documentation charges
    • Customs support
    • Insurance (optional but recommended)

    Route planning includes selecting the optimal carrier, port, and transit schedule.

    Step 3: Cargo Pickup & Warehousing

    Depending on the arrangement (Incoterms), the forwarder may:

    • Pick up goods from the supplier
    • Arrange temporary storage
    • Perform labeling, palletizing, and packaging checks
    • Consolidate multiple shipments (LCL consolidation)

    Proper handling reduces the risk of cargo damage and delays.

    Step 4: Documentation Preparation

    Freight forwarding involves preparing and verifying mandatory documents such as:

    • Commercial Invoice
    • Packing List
    • Shipping Instruction
    • Bill of Lading / Air Waybill
    • Certificate of Origin
    • Export/Import licenses (if applicable)
    • Insurance Certificate

    Correct documentation is essential for customs, port handling, and delivery.

    Step 5: Customs Clearance (Export)

    The freight forwarder or customs broker coordinates export clearance:

    • Filing export declarations
    • Verifying HS codes
    • Checking compliance with export regulations
    • Coordinating with customs officers

    Once clearance is approved, the cargo is handed over for loading.

    Step 6: Freight Booking & Cargo Handover

    The forwarder books space with the shipping line/airline.
    Tasks include:

    • Ensuring cargo meets carrier requirements
    • Managing cut-off times
    • Issuing the Bill of Lading or Air Waybill
    • Coordinating with port/airport operations

    This step confirms the cargo is officially accepted for transport.

    Step 7: Transit Monitoring & Tracking

    Freight forwarders track shipments throughout the journey:

    • Real-time tracking updates
    • Monitoring transshipments
    • Handling delays or route changes
    • Providing status updates to the client

    Proactive monitoring helps prevent disruptions.

    Step 8: Customs Clearance (Import)

    On arrival at the destination country, the forwarder supports the import process:

    • Filing import declarations
    • Duty/tax assessment
    • Coordinating inspections
    • Submitting compliance certificates

    Once customs clears the shipment, the cargo moves toward final delivery.

    Step 9: Last-Mile Delivery

    The final stage includes:

    • Cargo retrieval from port/airport
    • Final transportation to the consignee’s warehouse
    • Handover of documents
    • Delivery confirmation

    This completes the freight forwarding cycle.

    Key Advantages of Using a Freight Forwarder

    • Reduced logistics complexity
    • Cost optimization through consolidation
    • Faster customs clearance
    • Reliable global network
    • End-to-end tracking
    • Professional handling of documentation

    Saving Mantra Support

    Saving Mantra offers complete freight forwarding advisory:

    • Route & carrier planning
    • Cost optimization
    • Air, ocean, and multimodal freight support
    • Export/import documentation
    • Customs coordination
    • Cargo tracking and logistics workflow setup

    Disclaimer

    This article provides general information on the freight forwarding process. Regulations, carrier prices, documentation rules, and customs requirements may vary based on country, transport mode, and product category. This guide is not legal, regulatory, or customs advice. For specific situations, consult a qualified logistics advisor, freight forwarder, or customs professional. Saving Mantra can assist with tailored freight solutions for your business needs.

  • Step-by-Step Process for Custom Clearance

    Introduction

    Custom clearance is a mandatory procedure that every import or export shipment must pass through before entering or leaving India. Proper documentation, HS code classification, duty calculation, and coordination with authorities are essential for avoiding delays, penalties, and demurrage. This detailed guide explains the entire custom clearance workflow, helping businesses manage their logistics more efficiently.

    Step-by-Step Process

    Step 1: Document Preparation

    Before customs filing, ensure all documents are correct and complete.
    Required documents include:

    • Commercial Invoice
    • Packing List
    • Bill of Lading / Air Waybill
    • Importer-Exporter Code (IEC)
    • GST Registration
    • Insurance Certificate
    • Certificate of Origin (if applicable)
    • Product-specific compliance certificates

    Accurate invoices and packing details help avoid assessment disputes and examination delays.

    Step 2: HS Code Classification

    The HS Code determines duties, restrictions, licensing, and compliance checks.
    Key steps:

    • Identify correct HS code
    • Verify rate of duty (BCD, SWS, IGST, Cess)
    • Check compliance requirements (FSSAI, BIS, PQ, CDSCO, WPC, etc.)

    Correct HS code classification prevents penalties and re-assessment.

    Step 3: Filing the Bill of Entry

    Your Customs House Agent (CHA) files the Bill of Entry electronically on ICEGATE.
    During this stage:

    • Documentation is submitted
    • Duty is calculated
    • Risk Management System (RMS) decides if shipment needs assessment or inspection

    Step 4: Customs Assessment

    A customs officer reviews and validates:

    • HS code
    • Valuation
    • Duty calculation
    • Country of origin
    • Licenses and certificates

    If discrepancies appear, customs may request additional documents or justification.

    Step 5: Examination & Inspection (If Ordered)

    Customs may physically examine the shipment to verify:

    • Quantity and weight
    • Declared value
    • Product compliance
    • Packaging

    Not all shipments undergo inspection—RMS often clears compliant cargo automatically.

    Step 6: Duty Payment

    Once the assessment is complete, duties must be paid online.
    Components include:

    • Basic Customs Duty (BCD)
    • Social Welfare Surcharge
    • IGST
    • Anti-dumping duty / Safeguard duty (if applicable)

    Duty payment is mandatory before the release of goods.

    Step 7: Out-of-Charge (OOC) & Cargo Release

    After duties are paid and clearance is approved:

    • Customs issues Out-of-Charge order
    • Terminal/CFS releases the cargo
    • Transport is arranged to move goods to the warehouse

    This completes the clearance cycle.

    Post-Clearance Requirements

    • Maintain all clearance documents for 8 years
    • Claim ITC of IGST (if eligible)
    • Update accounting and inventory
    • Respond to any customs audits or queries

    Common Mistakes to Avoid

    • Wrong HS code → higher duty or penalties
    • Incorrect valuation → reassessment
    • Missing compliance certificates
    • Late duty payment causing demurrage
    • Poor documentation quality

    Saving Mantra Support

    Saving Mantra provides end-to-end custom clearance advisory:

    • HS code classification
    • Documentation support
    • CHA coordination
    • Duty estimation
    • Compliance and licensing support
    • GST & accounting for imports

    Disclaimer

    This article provides general information related to custom clearance procedures in India. Regulations, duty rates, and documentation requirements may change depending on product type, customs notifications, and government policies. This content should not be treated as legal, tax, or customs advice. For case-specific guidance, please consult DGFT, CBIC, a licensed CHA, or a qualified compliance advisor. Saving Mantra can assist with personalized support based on your business needs.

  • Step-by-Step Process for Cereals and Food Grains Export

    Introduction

    India is one of the world’s largest exporters of cereals and food grains such as rice, wheat, maize, millet, sorghum, pulses, and barley. Global buyers prefer Indian grains because of quality, variety, and competitive pricing.

    Exporting food grains involves strict quality checks, proper certification, and compliance with international food safety standards. This Saving Mantra guide explains the export process in a clear and easy way, helping exporters avoid delays and ensure smooth shipments.

    Step-by-Step Process for Cereals and Food Grains Export

    Step 1 — Identify the Grain and Confirm Market Requirements

    Choose the cereal or grain you want to export such as:

    • Rice
    • Wheat
    • Maize
    • Millet
    • Sorghum
    • Barley
    • Pulses

    Check the import rules of the buyer’s country, such as:

    • Quality standards
    • Maximum pesticide limits
    • Whether fumigation is required
    • Packaging and labelling rules

    Step 2 — Obtain Required Registrations

    Before exporting, you must have:

    • IEC (Importer Exporter Code)
    • GST Registration
    • FSSAI Licence (for food trade)
    • APEDA Registration (mandatory for many agriculture exports)

    These registrations allow you to ship food grains legally.

    Step 3 — Choose a Verified Buyer and Finalize the Export Contract

    When finalizing the deal, confirm:

    • Quality grade (A, B, premium, broken percentage, moisture level)
    • Quantity
    • Price
    • Packaging type (PP bags, jute bags, bulk packing)
    • Payment terms (LC, advance, TT)
    • Incoterms (FOB, CIF, CFR)
    • Delivery schedule

    Clear terms prevent misunderstandings later.

    Step 4 — Quality Testing and Inspection

    Cereals and food grains require strict testing.
    Depending on the buyer country, you may need:

    • Quality analysis
    • Moisture test
    • Foreign matter check
    • Phytosanitary certificate
    • Fumigation certificate

    APEDA-approved labs and agencies can conduct these tests.

    Step 5 — Packaging and Labelling

    Food grains must be packed properly to avoid spoilage.
    Use:

    • Food-grade bags
    • Proper weight marking (25kg, 50kg, etc.)
    • Batch number, variety name, and supplier details
    • Country of origin label

    Good packaging protects the grains during long shipping periods.

    Step 6 — Arrange Logistics and Transportation

    Exporters can ship cereals by:

    • Sea freight (most common for bulk grains)
    • Container shipping (for premium or packaged grains)

    Book a freight forwarder for:

    • Container booking
    • Warehousing
    • Transport to port
    • Export documentation assistance

    Step 7 — Prepare Export Documentation

    Documents required for cereals and grains export include:

    • Commercial Invoice
    • Packing List
    • Export Contract
    • Certificate of Origin
    • Phytosanitary Certificate
    • Fumigation Certificate
    • Bill of Lading
    • Insurance Certificate
    • APEDA Registration Certificate

    These documents ensure the shipment meets international standards.

    Step 8 — Customs Clearance in India

    Your customs broker will:

    • File the Shipping Bill
    • Submit all certificates
    • Facilitate customs inspection

    Once approved, customs issues the “Let Export Order (LEO),” allowing the shipment to leave the port.

    Step 9 — Delivery and Payment Completion

    Once the cereal or grain shipment reaches the buyer:

    • The buyer completes customs clearance in their country
    • Payment is completed as per LC or contract
    • Exporter receives settlement through their bank

    Good communication with the buyer ensures smooth delivery.

    Step 10 — Maintain Records and Compliance

    Keep all export certificates and documents for audits.
    Maintain:

    • Shipping documents
    • Payment receipts
    • Quality reports
    • Export invoices

    This also supports future business and compliance checks.

    Document Checklist (Simple Summary)

    Key Certificates

    • APEDA Registration
    • Phytosanitary Certificate
    • Fumigation Certificate
    • Certificate of Origin

    Export Documents

    • Invoice
    • Packing List
    • Bill of Lading
    • Export Contract
    • Insurance Certificate

    Saving Mantra Tips for Smooth Export

    • Ensure grains are properly cleaned and graded.
    • Follow buyer country pesticide and chemical limits.
    • Use APEDA-approved labs for quality testing.
    • Avoid moisture as it reduces grain quality during shipping.
    • Always confirm payment terms before shipping.

    Disclaimer

    This guide is for general informational purposes only. Export regulations, quality standards, certificates, and international requirements may change at any time. Exporters should verify the latest rules with APEDA, FSSAI, Indian Customs, and professional advisors before exporting. Saving Mantra is not responsible for decisions made using this information.

  • Step-by-Step Process for Ocean Shipping Advisory

    Introduction

    Ocean shipping is the most cost-effective and widely used mode for global trade. Whether importing or exporting, businesses need expert advisory support to plan routes, choose the right container, comply with marine regulations, and manage port operations efficiently. This guide explains the full step-by-step process followed in professional Ocean Shipping Advisory, enabling businesses to minimize logistics risks and optimise freight cost.

    Step-by-Step Process for Ocean Shipping Advisory

    1. Cargo Requirement Analysis & Sea Mode Assessment

    The advisory process begins by understanding:

    • Cargo nature (FCL/LCL, dry cargo, liquid, hazardous, oversized, project cargo)
    • Volume & weight estimation
    • Packaging needs (palletised/non-palletised)
    • Export/import country requirements
    • Expected delivery timelines

    This helps determine the best shipping plan for reliability and cost savings.

    2. Container Selection & Equipment Planning

    Selecting the right container is essential for cargo safety and efficient cost management.

    Container Types:

    • 20 ft / 40 ft Standard Containers
    • 40 ft High Cube Container
    • Reefer Container (temperature-controlled)
    • Open Top Container
    • Flat Rack Container (for ODC cargo)
    • Tank Container (for liquids)

    Advisors recommend the most suitable container and equipment based on the cargo profile.

    3. Route Planning & Transit Time Evaluation

    Professional advisory includes evaluating multiple sailing options:

    • Direct vs. trans-shipment routes
    • Transit times & port rotation
    • Shipping line reliability & space availability
    • Seasonal congestion and weather conditions
    • Carrier schedules & cut-off timings

    This ensures optimal routing and reduced transit risks.

    4. Ocean Freight Costing & Shipping Line Selection

    A transparent cost sheet is prepared covering:

    • Ocean freight charges
    • BAF, CAF, THC, LSS, PSS, port charges
    • Documentation fees
    • Container detention & demurrage risk
    • Insurance cost (if opted)

    Advisors compare shipping lines and NVOCCs based on cost, service, and uplift reliability.

    5. Export/Import Documentation & Compliance

    Documentation is a critical part of ocean shipping. Advisors help ensure accuracy across:

    Key Shipping Documents:

    • Commercial Invoice
    • Packing List
    • Bill of Lading (BL)
    • Certificate of Origin
    • Marine Insurance Certificate
    • SLI (Shipper’s Letter of Instruction)
    • Dangerous Goods Declaration (if applicable)

    Regulatory Documents:

    • IEC
    • EDI shipping bill (for exports)
    • Import Bill of Entry (for imports)
    • Licenses/permissions (if category-specific)

    Correct documentation prevents customs delays or penalties.

    6. Booking, Shipping Instructions & Container Release

    Advisory teams coordinate with shipping lines/NVOCCs to:

    • Book container slots
    • Provide Shipping Instructions (SI)
    • Obtain container release order
    • Schedule equipment pickup
    • Verify cut-off times for gate-in, SI submission, and VGM filing

    Proper booking avoids last-minute space issues.

    7. Container Stuffing, VGM & Terminal Gate-In

    Steps include:

    • Supervised loading at warehouse/factory
    • Proper lashing, bracing & packaging
    • VGM (Verified Gross Mass) submission
    • Movement of container to terminal
    • Gate-in formalities at port

    Ensuring correct VGM prevents shipment rejection.

    8. Customs Clearance & Port Operations

    Advisory support includes coordinating:

    • Filing Shipping Bill (export) or Bill of Entry (import)
    • Assessment by customs
    • Duty payment (for imports)
    • Inspection/sampling
    • Bill of Lading release

    For exports, container is moved to the vessel after customs permission.

    9. Vessel Sailing, Tracking & Transit Monitoring

    Once onboard the vessel:

    • Sailing updates are tracked
    • Trans-shipment movements monitored
    • ETA adjustments communicated
    • Irregularities handled (rollovers, delays, port congestion)

    Continuous monitoring ensures visibility throughout the journey.

    10. Destination Port Handling & Delivery Coordination

    For imports:

    • Container unloading from vessel
    • Terminal handling & CFS movement
    • Import customs clearance
    • Detention/demurrage management
    • Final delivery to warehouse

    For exports:

    • Confirmation of vessel arrival at destination
    • POD (Proof of Delivery) status updates

    11. Post-Shipment Review & Cost Optimization

    After shipment closure:

    • Validate freight & port invoices
    • Analyse cost variances
    • Review transit performance
    • Recommend process improvements for future shipments

    This step strengthens long-term logistics efficiency.

    Benefits of Ocean Shipping Advisory

    • Lower freight cost through optimized routing
    • Better container planning & reduced damage risk
    • Accurate documentation for smooth customs clearance
    • Reduced detention & demurrage charges
    • Transparency in sailing schedules & transit updates
    • End-to-end operational visibility
    • Risk mitigation through proper insurance & compliance

    How Saving Mantra Supports Ocean Shipping Advisory

    Saving Mantra provides full-spectrum ocean logistics advisory services:

    • Route & container planning
    • Shipping line negotiation
    • Freight costing & budgeting
    • Documentation & customs compliance
    • VGM filing & port coordination
    • Tracking & shipment visibility
    • Post-shipment reporting

    Ideal for importers, exporters, manufacturers, traders, and logistics partners.

    Disclaimer

    This blog offers general information about the Ocean Shipping Advisory process. Regulations, port rules, carrier policies, and documentation requirements may vary by country, cargo type, and shipping line. The content should not be considered legal, marine, or customs advice. For case-specific requirements, consult customs authorities, shipping lines, port operators, or a certified logistics professional. Saving Mantra offers customised advisory solutions tailored to your business needs.

  • Step-by-Step Process for Import from Japan

    Introduction

    Japan is known worldwide for its high-quality products, especially automobiles, auto parts, electronics, machinery, robots, tools, chemicals, and advanced technology items. Importing from Japan is trusted because Japanese goods offer superior quality, long life, and strong reliability.

    This Saving Mantra guide explains the complete import process from Japan in simple, easy-to-follow steps.

    Step-by-Step Process to Import from Japan

    Step 1 — Choose Your Product and Check Import Rules

    Start by selecting the product you want to import.
    Before buying, check:

    • If the item is allowed in India
    • If it needs BIS certification (for electronics, appliances)
    • If FSSAI or CDSCO approval applies (for food or medical items)
    • Whether any restrictions or safety requirements exist

    Understanding the rules early helps avoid customs problems.

    Step 2 — Identify the Correct HS Code

    Every product is classified using an HS code.
    This code is important because it decides:

    • How much customs duty you pay
    • Whether extra licences are required
    • What documents you must submit

    A correct HS code ensures a smooth import experience.

    Step 3 — Obtain Import Registrations

    Before importing, make sure you have:

    • IEC (Importer Exporter Code)
    • GST Registration
    • AD Code registration at the port
    • Digital Signature Certificate

    These are compulsory for customs filing and clearance.

    Step 4 — Finalize Purchase with the Japanese Supplier

    When buying from Japan, confirm:

    • Product price and quantity
    • Technical specifications
    • Quality standards (Japanese goods follow strict norms)
    • Incoterms (EXW, FOB, CIF, CIP, DAP, etc.)
    • Payment terms (TT, LC, etc.)
    • Delivery schedule

    Most Indian importers choose CIF, where the Japanese exporter handles shipping and insurance.

    Step 5 — Arrange Shipping

    Japan has fast and efficient transport systems.

    Air Freight

    Best for:

    • Electronics
    • Small machinery
    • High-value goods
    • Spare parts

    Sea Freight

    Best for:

    • Vehicles
    • Heavy equipment
    • Industrial machinery
    • Large-volume shipments

    Choose based on product size, cost, and urgency.

    Step 6 — Collect Export Documents from the Supplier

    Your Japanese supplier must provide:

    • Commercial Invoice
    • Packing List
    • Air Waybill (for air) or Bill of Lading (for sea)
    • Certificate of Origin
    • Insurance Certificate (if shipping under CIF/CIP)
    • Technical or test certificates (if required)

    Check these documents carefully to avoid delays at Indian Customs.

    Step 7 — Customs Clearance in India

    Once goods arrive at an Indian port or airport:

    Filing the Bill of Entry

    Your customs broker uploads all import documents.

    Paying Customs Duties

    You will need to pay:

    • Basic Customs Duty
    • Social Welfare Surcharge
    • IGST
    • Any anti-dumping duty (only for certain products)

    Inspection by Customs

    Customs may check:

    • Product value
    • Product type
    • Safety compliance
    • HS code accuracy

    Release of Goods

    Once payment and verification are completed, customs gives “Out-of-Charge” and the goods are released.

    Step 8 — After the Goods Arrive

    After customs clearance:

    • Keep documents safely for 5 years
    • Update GST input records
    • Check the goods for quality and quantity
    • Confirm safety labels and instructions (especially electronics and tools)
    • Follow India’s rules for selling or using the imported goods

    Proper documentation helps in future audits or returns.

    Document Checklist (Simple Summary)

    Documents from Japanese Supplier

    • Invoice
    • Packing List
    • Air Waybill or Bill of Lading
    • Certificate of Origin
    • Insurance Certificate
    • Technical/Test Reports (if needed)

    Documents for Indian Customs

    • IEC
    • GST Registration
    • AD Code
    • Bill of Entry
    • Duty Payment Receipt
    • Necessary Regulatory Licences (BIS, FSSAI, CDSCO, etc.)

    Saving Mantra Tips for Easy Import

    • Japan follows very strict quality standards — always request product test documents.
    • Avoid under-invoicing — it may lead to heavy penalties.
    • Work with experienced logistics partners familiar with Japanese ports.
    • Keep communication clear with the supplier to avoid shipment mistakes.
    • Maintain soft and hard copies of all documents for future audits.

    Disclaimer

    This guide is for general informational purposes only. Import rules, duties, compliance requirements, and documentation procedures may change at any time. Always verify the latest rules from DGFT, Indian Customs, logistics providers, and certified professionals before importing. Saving Mantra is not responsible for decisions made using this information.