If you are exporting products, the Export General Manifest (EGM) is a term you must have heard. It is a type of major document that makes sure your shipments are recorded as exports. If you do not apply for this document, then expect delays, tax overpayment refunds hanging in the balance, or even penalties.
Simply put, the EGM will establish proof in the eyes of the customs that the goods have actually left the country. In this blog, the importance of the Export General Manifest, its format, advantages, key conditions for filing, how it differs from a shipping bill, etc. Read to know more!
The Export General Manifest (EGM) is a legal document that must be filed by the carrier (the shipping line, an airline, or a freight forwarder) with the customs authorities following the loading of cargo on the vessel, aircraft, or any other transport means for export. It constitutes conclusive proof of export, confirming that all goods declared for export have physically exited from the country.
The EGM clears the customs records for proper alignment with the shipping bill details. If the EGM is not properly filed, the exporters will be hard-pressed to obtain export incentives like duty drawback and GST refund.
The Export General Manifest (EGM) must be filed by whoever is in charge of the vessel or aircraft that is carrying the export shipment. The responsible person may appoint an agent to carry out the filing, but he or she remains responsible for the compliance. The EGM might draw penalties for discrepancies, making it critically important that it be filled with accurate information.
In terms of Section 148 of the Customs Act, the EGM can be filed by an authorized agent acting on behalf of the person in charge, provided that he is accepted as such by a proper customs officer. The agents that assume this responsibility are to carry out all the obligations and are answerable for the penalties thereof in case of non-compliance.
The EGM entry should be submitted before the vessel leaves the port and no later than seven days after the vessel’s departure. However, the customs officer can extend this limit on the grant of sufficient security and surety by the agent of the carrier.
It is a legal document, which means that the owner or his agent must be legally correct regarding the EGM's contents. The Customs Act allows for amendments and supplements, provided there is no intention to commit fraud. False representations or failure to file the EGM can incur penalties.
Based on the Export Manifest (Vessels) Regulations, 1976, and the Export Manifest (Aircraft) Regulations, 1976, an Export General Manifest (EGM) is filed and issued. These regulations explain the types of forms needed for the filing of an EGM. There are four forms for EGM, each having its own purpose:
These regulations should be issued to ensure proper documents and adherence during the export process in terms of vessels and aircraft.
Shipping Bill and Export General Manifest (EGM) are important documents in the export procedure, but they carry different meanings and perform opposite functions at different stages.
The exporter or his/her authorized agent must file and submit the required document to the customs authorities for approval and processing.
The Shipping Agent or any Agent can file after the shipment is loaded.
Both documents play a vital role in ensuring smooth export operations and regulatory compliance.
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With Export General Manifest in hand, it is not just another entry in the paperwork system- it represents a ticket to smooth, problem-free export processing. This helps ensure that your shipments are correctly recorded to help you achieve export benefits and stand the correct way when it comes to customs regulations. Without it, you face the risk of delays, unclaimed tax refunds, or even penalties - definitely not worth the risk.
The EGM process is a game-changer for the export business. To add more efficiency to this, teaming up with a well-renowned logistics provider, Velocity Express, will go a long way. The peace of mind of knowing that your shipments will be discharged at their destination smoothly and on time gives you some relief, all because of a well-established network and experience.
So even if you are very knowledgeable in exportation, you may refer to the EGM so that your business grows without any unnecessary barriers.