EXIM HEALTH CHECK
CONCEPT
Exim Health Check’ is aimed at checking compliances with various laws connected to International Trade. Compliance with various Laws is gaining more and more importance in view of “Corporate Governance” particularly because of adaptation of global practices under WTO regime. The corporate world is facing cut-throat competition globally and therefore, following right systems ultimately result in reduction of various costs like interests, demurrages, fines, penalties and transaction costs.
WHY NECESSARY?
In our day-to-day operations, we are always focused on immediate and urgent tasks. Because of the work pressure, many a time mistakes occur unintentionally, particularly in documentation. Such mistakes are very difficult to correct at a later stage because of emergence of Electronic Data Interchange.
All mistakes necessarily have a cost attached to them to be paid immediately or subsequently. Most companies do not have well documented operating systems. In absence of such systems if a person leaves the company for whatever reason, the successor finds it difficult to continue the operations in right manner.
The success of international trade depends on clear, transparent and hygienic documentation supported by systemically designed procedures. Any company desirous of having a clear record should aim at creating such systems and should put in place the follow-up measures.
exim health checK
methodology
If the client is EOU or SEZ unit, the complete procedural check-up with reference to Foreign Trade (Development and Regulation) Act, 1992, SEZ Act, 2005 and SEZ Rules, 2006 etc.
All the affiliated procedures like sub-contracting, job work, third party exports, deemed exports etc., will also be checked. Trade current scenario and related issues
1.
Understanding Client’s Industry, Business Set-up, Business Environment, Identifying the areas which need improvement.
2.
Evaluation of internal systems - whether all the benefits available under ForeignTrade Policy and Customs Regulations are being availed, whether legal requirement are complied with, whether records are properly maintained or not, reporting as required is done or not plus any other compliances that may be necessary.
3.
Study of various duty exemption/neutralisation schemes like Advance Authorisation, Duty Free Import Authorisation, Export Promotion Capital Goods Scheme, Duty Drawback etc., with reference to specific products of the client.
3A.
If the client is EOU or SEZ unit, the complete procedural check-up with reference to Foreign Trade (Development and Regulation) Act, 1992, SEZ Act, 2005 and SEZ Rules, 2006 etc.
3B.
All the affiliated procedures like sub-contracting, job work, third party exports, deemed exports etc., will also be checked. Trade current scenario and related issues
EXIM HEALTH CHECK process
gNBC will undertake EXIM Health Check and concentrate on legal compliances particularly with reference to the Foreign Trade Policy and Customs Operations (which are relatively neglected areas compared to Excise and Income Tax).
The Process of Health Check would consist of
1.
Detailed discussions and interaction with cutting-edge level officers and relatedstaff
2.
Checking and examining actual documents and practices followed, on random basis.
3.
Review of legal compliances and examination of internal controls and procedures thereto
4.
Preparing detailed report for management
The Detailed Report will consist of
1.
Existing and likely problems
2.
Tailor-made solutions to such problems
3.
Systemic changes required
4.
Preparation of guidelines for future operations with practical tips
5.
Preparation of Check-lists to avoid repetitive mistakes and to ensure legal compliances
benefits to the companies
Legal Compliance would be monitored, which will avoid getting Show-cause-notices from various Government Departments
Will have an idea of areas which need drastic improvement (gNBC will also prepare an action plan in consultation with Senior Management)
Appropriate procedural framework would be in place, which ultimately results into saving of time and loss
Proactive measures would be possible
Reduce transaction cost substantially
duration & fees
It will depend upon the actual requirements and man-hours involved.
contact us
Registered Office:
A-203, Everest Chambers,
Near Marol Naka,
Andheri Kurla Road,
Andheri (East), Mumbai – 400 059.
Phone : +91 22 2859 7430/ 22 2925 2771
E-mail : mumbai@gnbc.co.in
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