What is an Export Value Declaration? Format & How to Fill?
TL;DR
- What is an Export Value Declaration (EVD)? An Export Value Declaration (EVD) is a document used to declare the value of goods being exported. It is required by customs to verify the declared value and ensure compliance with export regulations.
- Who needs to file an Export Value Declaration? Any exporter of commercial goods must file an Export Value Declaration. This includes manufacturers, merchant exporters, MSMEs, e-commerce sellers, and businesses shipping samples or gifts. The declaration is required regardless of the size of the business if the shipment falls under the applicable customs requirements.
- What happens if the Export Value Declaration is not submitted? Failing to submit a valid Export Value Declaration can lead to cargo being held by customs, resulting in storage and demurrage charges. Exporters may also face penalties, customs queries, and delays in receiving export incentives such as duty drawback and RoDTEP benefits.
- What information does the Export Value Declaration contain? An Export Value Declaration includes details such as the shipping bill number, invoice information, transaction type, valuation method, buyer-seller relationship, payment terms, delivery terms, and a signed declaration. These details allow customs authorities to assess whether the declared export value is accurate.
- What is the most important detail to verify? The FOB (Free on Board) value must match exactly across the invoice, shipping bill, and Export Value Declaration. Even a minor mismatch can trigger customs queries, delay shipment clearance, and slow down the processing of export benefits. Reviewing all documents before submission helps avoid unnecessary delays.
What Is an Export Value Declaration?
Simply put, an Export Value Declaration (EVD) is where you declare the true value of the goods leaving India. It's prescribed as Annexure A under Rule 7 of the Customs Valuation (Determination of Value of Export Goods) Rules, 2007.
This declaration helps customs understand how you arrived at your export value. It covers the transaction itself, the valuation method used, whether the buyer and seller are related, and the commercial terms involved in the shipment.
Customs then uses all of this to confirm your declared FOB value is genuine and lines up with the rest of your export paperwork.
đź’ˇ QUICK INSIGHT
s: Export Value Declaration (EVD) isn't a standalone document. It goes in together with the shipping bill, the commercial invoice, and other export documentation.
Why Is an Export Value Declaration Required?
An Export Value Declaration (EVD) is required for several reasons, including customs verification, regulatory compliance, accurate valuation, smoother customs clearance, and proper export documentation. Below is the explanation of each of these in detail:
- For verification of export value: Customs refer to the EVD for information on the calculation of declared export value as per Section 14 of the Customs Act, 1962 and Rule 7 of Customs Valuation (Determination of Value of Export Goods) Rules, 2007.
- To ensure fair prices: The EVD shows whether or not the buyer and seller are related. This enables customs to establish if the stated transaction value reflects a real market price.
- To ensure that all export documents are uniform: Customs cross-check the FOB value mentioned in the Export Value Declaration, Commercial Invoice and Shipping Bill. When the values match, the likelihood of customs queries or processing delays is reduced.
- For customs clearance purposes: A correctly filled-in EVD provides customs with the necessary valuation information in advance and helps to avoid additional documentation requests and thereby accelerates the clearance of the shipment.
- To turn on post-export benefits: Accurate and complete EVD ensures that all valuation records are in order, resulting in the proper processing of export incentives like duty drawback and Remission of Duties and Taxes on Exported Products (RoDTEP) claims.
- To promote compliance: Always submit accurate Export Value Declarations, and you will build a good compliance track record, which will make future export transactions easier and reduce the risk of unwanted inquiry.
Who Needs to File an Export Value Declaration?
Anyone exporting commercial goods from India. It doesn't matter how big your business is or how much the shipment is worth. Whether you export regularly or this is your very first international order, the declaration is part of the paperwork you'll need.
Here's who's typically on the hook for it:
Manufacturers and Commercial Exporters: If you're shipping out machinery, textiles, chemicals, electronics, engineering goods, or agricultural products, you'll need to file this for your shipments.
Merchant Exporters: If goods are purchased from Indian suppliers and exported overseas, the exporter is responsible for submitting the Export Value Declaration.
MSMEs and E-commerce Exporters: Even smaller businesses selling through their own site or a global marketplace need to comply here.
Exporters Sending Samples or Gifts: No money changing hands doesn't mean you're off the hook. Customs still wants the market value declared. That includes product samples, promotional items, and gifts.
Are There Any Exceptions to Filing Export Value Declaration?
For physical goods, not really. Any shipment leaving India by sea, air, or land customs station needs a shipping bill, and the value declaration is part of that package. If you're not sure how it applies to your specific case, it's worth checking with your customs broker.
What Happens If an Export Value Declaration Is Not Filed?
Failing to file an Export Value Declaration (EVD) can affect your export process in several ways, including customs delays, delayed issuance of the Let Export Order (LEO), and potential compliance issues. Here are the details:
- Shipment Delays: Customs can put your shipment on hold until the missing paperwork comes through, which can mean missing your vessel or flight window entirely.
- Additional Costs: Delays rarely come cheap. You could end up paying for:
- Customs Penalties and Forced Valuation: Incomplete or incorrect documents can trigger penalties under the Customs Act. If customs suspects you've deliberately misdeclared something, they won't just wait around. They can reject your invoice value outright and calculate duty using their own market data instead. This usually works out higher than what you'd actually agreed with your buyer.
- Increased Scrutiny: If you make the same documentation mistakes repeatedly, then your future shipments may start getting pulled for physical "red-channel" inspection rather than sailing through. This means longer clearance times on every shipment after that, not just the one that went wrong.
- Audits and RBI Red-Flagging: Repeated or serious gaps can also invite a closer look from the Directorate General of GST Intelligence (DGGI) or the Customs Intelligence wing, which can go back and review past export records. Separately, the RBI tracks every physical export to make sure payment eventually comes back into the country. If your declared values don't add up, you can get flagged as a non-compliant exporter, which is its own headache to fix later.
- Delays in Export Benefits: An EVD that's missing or incorrect can also hold up claims under schemes like duty drawback and RoDTEP, since customs relies on accurate export values to process those.
Before you submit anything, it's worth double-checking that your shipping bill, commercial invoice, and export value declaration all agree, especially on the FOB value.
What Is the Format for an Export Value Declaration?
The Export Value Declaration (EVD) has a standard format prescribed by customs to ensure consistent and accurate reporting of export values. Below, we'll look at the format and the key information it includes.
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The prescribed export value declaration format is Annexure A under Rule 7 of the Customs Valuation (Determination of Value of Export Goods) Rules, 2007.
There are 10 fields in the Export Value Declaration format. Each field plays a part in helping customs verify your declared export value.
| Field | Details |
|---|---|
| 1. Shipping Bill No. & Date | Enter the shipping bill number and the date it was filed. This helps customs identify and verify the export shipment. |
| 2. Invoice No. & Date | Provide the commercial invoice number and its date. Customs uses this to verify the transaction and match it with the declared export value. |
| 3. Nature of Transaction | Specify the type of export transaction, such as a sale, consignment, gift, sample, or another arrangement. This helps customs understand the basis of the declared value. |
| 4. Method of Valuation | Mention how the export value was determined based on the applicable customs valuation method. This helps customs assess whether the declared value is appropriate. |
| 5. Buyer and Seller Related? | Indicate whether the buyer and seller have a business or personal relationship that could influence the transaction. |
| 6. Did the Relationship Influence the Price? | If the buyer and seller are related, state whether that relationship affected the price of the exported goods. |
| 7. Terms of Payment | Specify how the buyer will pay for the goods, such as advance payment, letter of credit (LC), credit terms, or other payment methods. |
| 8. Terms of Delivery | Mention the agreed delivery terms (Incoterms), such as FOB, CIF, or EXW, to clarify each party's responsibilities for shipping, insurance, and risk. |
| 9. Previous Exports of Similar Goods | If similar goods have been exported before, provide the relevant shipping bill details. This helps customs compare the declared value with previous exports. |
| 10. Other Relevant Information | Include any additional information or supporting documents that help explain or justify the declared export value. |
The declaration at the bottom confirms that everything you've entered is true and complete, and that you'll notify customs if anything changes that affects the declared value later on. You'll wrap up the form with the place, date, and signature of the authorised signatory.
How to Fill an Export Value Declaration
An Export Value Declaration (EVD) includes several fields related to your export shipment, invoice, valuation, payment terms, and transaction details. The section below explains what information you need to enter in each field.
Once your Export Value Declaration has been submitted and your shipment is cleared, the next step is receiving payment from your overseas buyer and completing the export realisation process.
Fields 1-4: Shipment and Valuation Details
Field 1: Shipping Bill Number & Date
Copy the shipping bill number and date exactly as they appear on the actual shipping bill.
Field 2: Invoice Number & Date
Enter the commercial invoice number and date here. Your FOB value needs to match both the invoice and the shipping bill.
Field 3: Nature of Transaction
Pick whichever best describes your shipment:
- Sale
- Sale on Consignment
- Gift Basis
- Sample
- Other
Most commercial exports will simply fall under "Sale."
Field 4: Method of Valuation
Choose the valuation rule that applies. For arm's-length commercial deals, that's usually Rule 3 (Transaction Value).
Fields 5-8: Relationship and Commercial Terms
Field 5: Buyer-Seller Relationship
Select "Yes" if the buyer and seller are related. The form doesn't spell this out, but "related" generally covers things like family members, business partners, an employer-employee relationship, or two entities with cross-shareholding, not just the obvious case of a parent company and its overseas subsidiary. Otherwise, go with "No."
Field 6: Did the Relationship Influence the Price?
Only fill this in if you answered "Yes" to Field 5. Customs may ask you to back this up with supporting documents if the relationship affected pricing.
Field 7: Terms of Payment
Note down the agreed terms: Advance Payment, Letter of Credit (LC), 30-day Credit, and so on.
Field 8: Terms of Delivery
Enter the agreed Incoterm, whether that's FOB, CIF, or EXW. This helps customs pin down the correct FOB value.
Fields 9-10 and Declaration
Field 9: Previous Exports of Identical or Similar Goods
If you've shipped this same product before, note the earlier shipping bill details here. Leave it blank only if this is genuinely your first time exporting that product.
Field 10: Other Relevant Information
This is where you'd reference supporting documents, including price lists, cost sheets, transfer pricing documentation, that kind of thing.
Declaration and Signature
Read through the declaration carefully before signing. Signing it means you're confirming the information is correct and that you'll let customs know if anything later affects the declared value.
Make sure the person signing is the authorised signatory whose details match your IEC records.
Export Value Declaration vs. EDF: Key Differences
While both documents are mandatory for international trade clearance, they serve two entirely different regulatory frameworks: the Export Declaration Form (EDF) is a foreign exchange monitoring tool regulated by the Reserve Bank of India (RBI) under FEMA to track and ensure the repatriation of export proceeds via the EDPMS system, whereas the Export Value Declaration is a customs-specific pricing document used by Indian Customs to verify transaction fairness, evaluate buyer-seller relationships, and calculate the precise Free on Board (FOB) value necessary for determining export incentive payouts like RoDTEP.
Common Mistakes in Export Value Declaration Forms and How to Fix Them
Even small slip-ups here can hold up customs clearance. Here are the ones that come up most often, and how to steer clear of them.
| Mistake | How to Fix It |
|---|---|
| FOB value doesn't match the invoice | Keep the same FOB value across the invoice, shipping bill, and export value declaration. |
| Wrong currency conversion | Use the applicable RBI reference rate wherever it's required. |
| Incorrect Nature of Transaction | Pick the option that genuinely matches your shipment. |
| Field 6 is left blank after selecting "Yes" in Field 5 | Fill in both fields if the buyer and seller are related. |
| Wrong valuation rule selected | Choose the rule that actually fits your transaction. |
| Previous export details omitted | Include earlier shipping bill details if you've exported this product before. |
| Incorrect signatory | Make sure the signatory matches the authorised person on the IEC. |
| Supporting documents not attached | Attach everything referenced in Field 10. |
Note: A mismatch in the FOB value across your invoice, shipping bill, and export value declaration is one of the most common reasons for customs queries.
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