In the ever-evolving landscape of industry standards, staying updated with the latest versions is crucial. The CSB (Code Standard Body) has recently rolled out two significant updates: CSB 4 and CSB 5. These versions bring several changes and improvements that industries must adopt to ensure compliance, efficiency, and competitiveness. This article will provide an in-depth analysis of CSB 4 and CSB 5, highlighting their differences, new features, and the impact on various sectors.
What Is CSB-4?
As a non-commercial declaration, issuing this means either the exporter is sending a personal shipment or testing the water of international shipping before starting a full-scale commercial application.
However, it must be noted that this declaration can only be issued for goods under INR 25000.
The exporter issues a declaration in the appropriate form (Form H) to the dealer making the transaction to the exporter.
A local supplier cannot be confident that export criteria are met unless the exporter who sells products to the overseas customer informs him of the fulfillment of the aforementioned conditions.
Only the exporter who is doing direct export knows or can verify that the conditions have been met.
(1) Importers and exporters must not import or export documents in any form (papers, cards, pictures) prohibited by law.
(2) Physical scrutiny of export paperwork, samples, and items limited to 10% of total courier consignments. The selected consignments will be thoroughly scrutinized.
(3) Physical examination of consignments based on characteristics like commodity type, value, weight, and importer status.
(4) Couriers can import dutiable commercial products without quantity restrictions, by paying duty at Customs clearance.
What Is CSB-5?
CSB-5 declaration allows businesses to transport products up to INR 5 Lac, exceeding the INR 25000 limit, for commercial purposes.
In Simple terms,
“CSB 5 is a special form you fill out let the customs (the people who check things going into and out of a country) know about the package. It helps them know what’s inside, how much it costs, and if you need to pay any taxes for it.
Think of it like a passport for your package. It helps it travel safely and quickly.”
Issuance of this form indicates that the seller has most likely been in the business of international shipping for a long time.
Courier submits CSB-5 details, including goods information, to Airport for Customs clearance after forwarding the Statement called as “manifest”.
The exporter must file their GST returns in accordance with the Courier Shipping Bill-5 (CSB-5).
Authorities share Shipping Bill data and info with GST Department when products enter India, ensuring compliance with relevant regulations.
Accurate, timely, and proper filing of GSTR-3B/GSTR-1 with essential data will make the GST Refund procedure easy for the export.
Key Features:
- The GST data, IEC, and HSN Code are required by CSB-5.
- Commercial exports through CSB-5 are permitted at customs airports in Mumbai, Delhi, Chennai, Calcutta, Bangalore, Hyderabad, Ahmedabad, Jaipur, Trivandrum, Cochin, Coimbatore, Calicut, Tiruchirapalli, and land customs stations in West Bengal other than Gojadanga and Petrapole.
- CSB-V exports can profit from MEIS if they fall into the qualifying category, which includes shipments with a value of up to INR 5,00,000 and containing a foreign exchange transaction.
Difference Between CSB 4 and CSB 5?
While both versions aim to improve industry standards, CSB 5 is an evolution of CSB 4, refining and expanding on the earlier version’s foundation. The main differences include:
1. Technological Adoption: CSB 5 pushes for more comprehensive digital integration compared to CSB 4.
2. Flexibility: CSB 5 offers a more adaptable framework to cater to diverse industry needs, unlike the more rigid structure of CSB 4.
3. Sustainability Measures: CSB 5 enforces stricter environmental regulations, whereas CSB 4 laid the groundwork for these practices.
4. Compliance Guidelines: CSB 5 includes more detailed and enforceable compliance protocols than CSB 4
Which Products To Target?
Once you’ve decided how you want to export your items, you’ll need to keep an eye on what you can export.
Essentially, you must be familiar with the many things that are in high demand abroad.
When you list them on your platform, they are the most frequently ordered by overseas clients.
Here is a list of Indian exports that have done very well in the international market:
- Jewelry
- Handmade silk goods
- Leather Goods
- Apparel
- Health/beauty products
- Craft products
- Sports Goods
- Car/bike accessories
The United States, United Kingdom, Singapore, Hong Kong, and Australia are the top export markets for Indian marketplace and individual sellers.
Only 24% of conventional manufacturing enterprises in India export to other countries.
These figures are low when compared to other marketplace sellers that sell on sites such as eBay, Amazon, and others.
Did you know that businesses who ship internationally can claim GST benefit?
International freight charges apply for businesses shipping from India to other country.
Something which every CSB-4 and CSB-5 issuers are liable to pay. Businesses issuing a CSB-5 enjoy GST return on export, a significant benefit for business owners.
