Capital Engineering Goods: Overview

Capital Engineering Goods include:

• Industrial machinery
• Machine tools
• Power equipment
• Construction machinery
• Mining and material handling equipment
• Automation systems

These are high-value, often customized items used for industrial production or infrastructure development.

✅ Export Procedure for Capital Engineering Goods

1. Product Readiness

• Ensure product meets international standards (ISO, CE, etc.)
• Perform quality inspection and testing
• Obtain necessary certifications and user manuals

2. Market Selection and Buyer Confirmation

• Research target market (duty structure, demand, regulations)
• Finalize order with buyer (proforma invoice, payment terms, delivery method)

3. Export Order and Contract

• Sign formal export contract
• Include terms: delivery (Incoterms), payment (LC/Advance/DP), warranty, and after-sales service

4. Product Customization and Packing

• Manufacture/assemble as per order
• Use robust export packaging (wooden crates, vacuum packing)
• Labeling and marking as per buyer country standards

5. Logistics Planning

• Choose FCL or LCL container shipment
• Coordinate with freight forwarders for shipping route, freight cost, and container booking

6. Pre-Shipment Inspection & Certification

• Conduct third-party inspection (SGS, BVQI, Intertek if required)
• Obtain Pre-Shipment Inspection Certificate (PSIC) if demanded

7. Export Documentation Preparation

• Commercial Invoice
• Packing List
• Bill of Lading / Airway Bill
• Export License (if required under DGFT)
• Certificate of Origin
• Inspection Certificate
• Technical Literature / Drawings
• Insurance Certificate
• Shipping Instructions
• GST Invoice (if claiming IGST refund)
• Bank Documents (LC, BRC, AD Code)

8. Customs Clearance

• File Shipping Bill via ICEGATE (Indian Customs Portal)
• Submit documents to CHA (Customs House Agent)
• Get Let Export Order (LEO) and load cargo

9. Shipment & Post-Shipment

• Vessel sails with cargo
• Send documents to buyer/bank for payment release
• Follow up for Bill Realisation Certificate (BRC)

📦 Import Procedure for Capital Engineering Goods

1. Import Planning & Supplier Finalization

• Identify supplier/exporter
• Sign contract or PO with terms

2. Import Licenses & Approvals

• Check if product falls under Restricted Items (need DGFT license)
• Register with IEC, AD Bank, and Customs

3. Pre-Shipment by Supplier

• Supplier packs and ships goods
• Provides key documents:
  • Invoice
  • Packing List
  • Bill of Lading
  • Certificate of Origin
  • Insurance
  • Technical Documents

4. Bill of Entry Filing

• File Bill of Entry (BOE) through CHA
• Pay customs duty, IGST, CVD, etc.

5. Customs Clearance in India

• Physical or RMS (Risk Management System) assessment
• Release of goods after duty and verification

6. Inland Transportation and Installation

• Transport to site
• Use original manuals and drawings for installation and commissioning

📋 Key Documents Summary

Export Documents	Import Documents
Commercial Invoice	Commercial Invoice
Packing List	Packing List
Bill of Lading / AWB	Bill of Lading / AWB
Export License (if required)	Import License (if required)
Certificate of Origin	Certificate of Origin
Inspection Certificate	Technical Documents
ARE-1 / GST Invoice	BOE (Bill of Entry)
Insurance Certificate	Insurance Certificate
Technical Drawings	Machine Manuals
BRC / FIRC	Payment Proof

🛠️ Tips for Smooth Capital Engineering Goods EXIM

• Ensure correct HS Code and duty structure
• Avail EPCG benefits (for exporters importing machinery)
• Check for after-sales support and AMC obligations
• Maintain documentation trail for DGFT, GST, and Customs compliance