Customs & Trade Documentation Support: After Approval: What Continues
Customs & Trade Documentation Support does not end at approval — a set of obligations continues afterwards. The questions below are the ones raised most often in practice; the full scope of the service is on the Customs & Trade Documentation Support page.
What happens if my product is misclassified under the wrong HS code?
Misclassification can produce the wrong Basic Customs Duty (overpaying wastes cash; underpaying creates a demand liability with interest and penalty on audit), the wrong RoDTEP rate on export, and — in the more serious cases — a shipment of a product that is actually Restricted or Prohibited under its correct classification moving without the required DGFT licence, which is a compliance breach rather than merely a duty issue.
In practice: We check classification against the current ITC-HS Schedule for every new product line rather than assuming a prior classification, used casually or carried forward from an earlier shipment, remains correct.
Is a Letter of Credit required for every export shipment, or are there other accepted payment terms?
No, a Letter of Credit is one of several accepted payment mechanisms — others include advance payment, open account terms, and documents against acceptance or payment. Whichever term is used, it should be reviewed against FEMA's current account trade rules, since certain terms (deferred payment for exports beyond a prescribed period, for instance) carry specific conditions that need to be tracked for FEMA compliance.
In practice: We review the payment term on the underlying contract as part of the pre-shipment profile review, so any FEMA-relevant condition is flagged before the shipment moves, not after realisation is already overdue.
What is the difference between Duty Drawback and RoDTEP, and how does documentation differ between them?
Duty Drawback refunds Customs duty already paid on inputs used in export production, claimed against the Shipping Bill after export. RoDTEP (Remission of Duties and Taxes on Exported Products) refunds embedded central, state, and local duties/taxes not otherwise refunded through GST, at a rate notified against each HS code. The scheme has been continued in six-month blocks, most recently to 30 September 2026 (DGFT Notification 74/2025-26); confirm the position for exports after that date. Both claims are reconciled against the Shipping Bill's declared classification and value, so accurate classification at the point of filing directly determines the accuracy of either claim.
In practice: We confirm which scheme — or combination — applies to a specific product before the Shipping Bill is filed, since the correct claim mechanism depends on the classification and the business's underlying cost structure.
How does PNPC charge for customs documentation support?
Engagements are typically quoted per shipment or as a short-term project for a specific consignment, classification review, or query response — with the exact scope and fee confirmed in writing before work begins. For businesses with recurring shipment volume, a monthly or quarterly retainer covering ongoing documentation review is also available and is usually the more cost-effective option once shipment frequency reaches a certain volume.
In practice: We would rather scope a specific engagement accurately after understanding your product range and shipment pattern than quote a generic number upfront. Ask us for a written scope and fee before any engagement begins.
What records should we retain after a shipment clears, and for how long?
Importers and exporters are generally required to retain shipment-related records — Bills of Entry, Shipping Bills, invoices, and supporting documents — for a prescribed period under Customs law, commonly referenced as five years, though the applicable period can depend on the specific provision and whether an audit, investigation, or claim is pending. GST law separately requires retention of related records for its own prescribed period. Where a RoDTEP, Duty Drawback, or Advance Authorisation matter remains open, records should be retained until that matter is fully closed, regardless of the general retention period.
In practice: We recommend retaining shipment documentation for at least the longer of the applicable statutory period or until any linked scheme claim or licence obligation is fully closed — audits and licence-closure reviews can reach back further than a business initially expects.
Where this sits in the wider engagement
Customs & Trade Documentation Support rarely arrives on its own. The statutory basis and the current requirements are set out on the Customs & Trade Documentation Support service page, and the related services are grouped under Fema Rbi.
What PNPC does
PNPC Global has practised since 1986 across India and the UAE. On Customs & Trade Documentation Support we take the work end to end — reviewing the facts, preparing and filing what is required, and dealing with the authority through to closure.