Actual freight and insurance should be declared on shipping bills: Expert

Any mis-declaration of freight paid or payable which results in loss of revenue by way of excess drawback payment, is liable to be proceeded against under the Customs Act

On our exports on CIF basis, we are required to declare the freight and insurance on the shipping bill so that the correct FOB amount is available to work out the drawback amount. At the time of export, we do not know the actual freight or insurance amount. So, we declare on an approximate basis. Is there any specific legal provision regarding how to work out the amount of freight and insurance?

CBEC Circular no.44/2000-Cus dated May 15, 2000, says that “it is highly improbable that the exporter would not be aware of the freight that is required to be