Ever wondered, “What does EGM in export mean?” Suppose you’re an Indian business person and want to export a container load of your goods to Australia. When your cargo is about to depart, the shipping line requests an Export General Manifest (EGM) from you. You may ask yourself what an EGM is and why it’s so critical.
EGM is an essential document in international shipping, a declaration of cargo for export. Knowledge about EGM procedures is essential for trouble-free navigation of import-export seas. Let’s know EGM thoroughly to explore global trade seas confidently in this blog
What is Export General Manifest (EGM) in Export?
Every commercial shipment coming in or going out of the nation requires certain customs clearance to ascertain that it complies with government regulations. For this, exporters need to obtain and submit some documents according to the Customs Act of 1962.
The actual documents required typically vary with the type of goods being exported, how they are exported (sea, air, or land), and the origin and destination countries. Export General Manifest (EGM) is a highly significant shipping document that must be acquired prior to the exportation of goods from a port.
Definition and Significance of Export General Manifest in Export
Export General Manifest (EGM) is a document that the shipper or its agent submits to the customs authorities. The document contains information regarding all the cargo on board an aircraft or vessel. It contains information such as the shipper’s name (sender), the consignee’s name (receiver), description of the goods, quantity of goods, and their destination.
The EGM has an extremely significant function in customs clearance. It serves as evidence that the goods have been exported and contains information of utmost importance for regulatory use.
EGM as Proof of Export and its Role in Customs Clearance
The EGM is the official documentation confirming that products have been exported from a particular nation. Customs officers use the EGM to verify whether the exports are genuine and ensure all export regulations are in place. In the absence of a valid EGM, goods could be held up or rejected at the importing port.
Mandatory Nature of EGM Filing for Carriers
Under the Customs Act of every country, shipping lines are mandated to submit an EGM. This is a requirement by law to ensure international trade transparency and to streamline customs processes. Filing an EGM is essential to prevent penalties and delays in cargo clearance.
Timing and Location for EGM Submission
The EGM should be filed with the customs authorities prior to the ship or aircraft transporting the goods departing. The time and location of filing the EGM will be determined by the country of origin as well as the transportation mode. Exporters and shipping lines need to adhere to the respective deadlines and procedures to avoid any disruptions in the export process.
Conditions for Filing an EGM
When you present an Export General Manifest (EGM), ensure that you qualify under specific requirements:
- Legally Binding Declaration: The EGM is an officially binding statement of law. An individual who signs it (such as an agent or an authority figure) needs to swear on oath that the information contained therein is accurate.
- Approval of Amendments: If any change is required in the EGM report, it can be done if the customs officer is convinced with the explanation and feels that there was no intention to mislead.
- Fee for Amendment: There is a fee that has to be paid if you want to make alterations in the Export General Manifest. This fee is stated under certain regulations of the Customs Act.
- Penalties for Misdeclaration: In case the information contained in the document proves to be inaccurate, the concerned agent can be penalized as per the Customs Act.
One should give very close attention to every single detail while filing an EGM.
Procedures for Filing EGM
Following are the procedures to be followed for filing an EGM:
- Legal Mandate under the Customs Act, 1962: According to the Customs Act of 1962, an Export Report needs to be submitted for land exports, and an Export General Manifest needs to be submitted for sea and air exports. This is an obligatory legal mandate. This document has to be furnished by each ship departing from India with freight.
- Declaration Should Be Submitted Prior to Departure of the Ship: The primary purpose for submitting an EGM is to ensure that all exports out of India are accounted for. It also ensures that all obligations imposed on the captain of the ship or the shipping agents under the Customs Act are discharged.
- Responsibility Rests with the Person in Charge of the Ship: The exporter or their agent finishes the initial customs procedure by presenting the shipping documents required. They then hand over the cargo to the shipping company. Filing the Export General Manifest with the customs authority rests with the shipping company, under the details presented in the shipping documents.
- Options for Agents to File on Behalf of the Primary Responsible Party: Shipping companies have the option of authorizing agents to file the EGM on their behalf. This makes the process of filing more streamlined and ensures that all legal obligations are fulfilled.
- Amendment and Supplementation Provisions for the EGM: If any changes or additional information are needed for the EGM, there are procedures in place to handle these changes, usually involving the payment of a fee. This ensures that the EGM is always accurate and up-to-date throughout the export process.
Filing an EGM can sometimes be complicated and take time. It’s important to understand and follow all the legal requirements.
Who Submits Export General Manifest?
Who is Responsible for Filing: The ship or aircraft master is mainly responsible for submitting the Export General Manifest (EGM).
Agent Filing: Nevertheless, the Customs Act permits an authorized agent of the person in charge to file the EGM. This agent has to be formally recognized by the customs officer. Agents filing on behalf of the person in charge become liable for all the obligations and can be penalized if there is any discrepancy.
Timing of Filing: The agent or the person in charge is required to file the EGM prior to the departure of the ship or aircraft. In particular, the EGM should be filed within seven days prior to the departure of the vessel. Customs officers can also grant an extension provided that the shipping company’s agent provides adequate guarantee or security.
Methods of Filing: The shipping company may submit the EGM electronically to the Customs Electronic Data Interchange (EDI) system. Besides electronic filing, there is also manual filing of a physical copy of the EGM and the exporter’s copies of the shipping documents. The customs department’s export section registers the manual EGM in their book, and the shipping company is given a receipt that contains the date and time of receipt.
Verification and Legal Consequences: The individual whose signature appears in the EGM, or an agent acting for them, ascertains all the details placed in it to be accurate. This renders the EGM an enforceable agreement. Under the Customs Act, changes or attachments to the EGM are allowed, provided the intention is not to perpetuate fraud. Deliberately making false statements or the wilful failure to submit the EGM will carry penalties under the Customs Act.
Contents and Form of an EGM
An Export General Manifest (EGM) is drawn up and published in terms of the Export Manifest (Vessels) Regulations, 1976, and corresponding regulations in the case of aircraft. The said regulations provide four various forms of EGM:
- Form I: General Declaration: This form comprises general details regarding the vessel or aircraft and the voyage or flight.
- Form II: Passenger Manifest: This form contains a list of all the passengers on board and corresponding information.
- Form III: Private Property List and Cargo Manifest: For vessels, it details the private property of the crew, officers, and captain. For planes, it is the cargo manifest, outlining all the cargo being shipped.
- Form IV: Private Property of Captain and Crew (Aircraft): It is a special form detailing the private property of the crew and captain for aircraft shipments.
Details Included in a Cargo Manifest (Part of Form III for Aircraft):
- Destination port and name of vessel or aircraft.
- Captain’s name.
- Goods description, including package numbers and any marks found on the packages.
- Sender (consignor) and receiver (consignee) details.
- Shipping document number.
- Vessel lighthouse certificate number and port dues receipt number (for vessels).
Details Included in the Private Properties Form (Part of Form III for Vessels):
- Details of the ship, where it came from and where it is headed, and how many crew members there are in total.
- Name and position of all crew members.
- What currency and traveler’s cheques they have in their possession.
Passenger Manifest Form (Form II):
- General facts such as the name of ship or plane, its rotation number, name of captain, shipping agents’ names, the port of origin where it arrived from, and arrival date.
- Quantity of money in currency on arrival and amount withdrawn on board.
- Details on board of any hazardous drugs and radio communication apparatus.
Export General Manifest filing and submission is critical to lawfully authenticate an export as per the Customs Act of 1962. Additional key documents, including the Importer-Exporter Code (IEC), Authorized Dealer (AD) code, and Importer of Record (IoR), are necessary at various steps of the export process from India.
Eg. Shipping Bill vs. EGM
Though both are essential for export, the Export General Manifest (EGM) and the Shipping Bill have different functions and are prepared by different parties. Let’s compare:
| Area | Export General Manifest (EGM) | Shipping Bill |
| Filing Responsibility | Submitted by the master of a vessel or aircraft. | Submitted by the exporter or their authorized agent. |
| Filing Deadline | Before exiting or within seven days after exiting. | Must be submitted electronically upon export. |
| Extension Possibility | Customs officers can issue extensions with security. | No extension, since merchandise cannot be shifted without the bill. |
| Purpose | Guarantees all shipped goods are reported. | Serves as evidence of completed customs procedure. |
EGM and Export Operations
The EGM plays a crucial part in the overall export process. Let us look at how it affects customs clearance and the involvement of various people.
Influence of EGM on Customs Clearance and Export Process Flow: EGM is not merely additional paperwork; it’s an important document that facilitates seamless customs clearance. By precisely documenting the cargo carried on board, it assists customs authorities in validating the goods for export. This results in quick clearance and smooth export flow, much like a green light for your goods.
Responsibilities of Exporters and Carriers in the EGM Context: Exporters and shipping firms play significant roles during the export process pertaining to the EGM. Exporters need to ensure that the information given for the EGM is correct and that the shipping firm possesses all the details. Carriers are liable to prepare and submit the manifest before the specified time to the customs authorities. It’s a collaborative effort to ensure the cargo’s journey is compliant and seamless.
The Interaction Between EGM, Shipping Bills, and Cargo Manifest: The EGM doesn’t function on its own; it’s part of a collection of documents that also comprises shipping bills and the cargo manifest. The shipping bill is brought out by the exporter and initiates the process of export, giving information about the goods to be exported. The cargo manifest, which is usually included in the EGM, details the particular information of each commodity being exported. The EGM serves as a summary and verification that the loaded cargo corresponds to what was indicated in the shipping bills. These documents complement each other like a jigsaw puzzle to form the export picture.
Conclusion
The Export General Manifest (EGM) is the foundation of successful foreign trade. It serves to guarantee efficient customs clearance and effective export operation. It is not only a paper; it’s a ticket to entering the world market. Through learning about the procedures followed by the EGM, exporters and carriers are better equipped to deal with the intricacies of overseas shipping.
Speed Up Your Global Payments
For businesses engaged in global commerce, ensuring timely and efficient receipt of international payments is important for smooth operations and growth. If you’re looking for a simple and reliable way to receive funds from your international clients quickly BRISKPE might be the best option. We charge a flat $16 per transaction for payments up to $2,000. For payments between $2,000 and $10,000 the charge is $25 per transaction. For amounts above $10,000 the rate is 0.25% per transaction. Payments exceeding $50,000 per month or enterprise clients can access custom pricing by talking to us.
Explore BRISKPE, with their unique service, you can receive international payments in as little as 24 hours, all while benefiting from a low transaction fee of just 1%.
