LWSDocumentationCarrier-Mandated

Letter of Undertaking (LUT) / Bond for Export Obligations

A legal undertaking submitted by Indian exporters to claim GST (Goods and Services Tax) exemption on export goods. The LUT is a bank/financial guarantee that the exporter will fulfill their export obligations.

Per Shipment
Category:Basic Shipping FeeChina Export Local ChargesDestination Import Charges
Applies to:
FCLLCLAirRailCourierRoadFBAAs Request
Typical Cost Range
$0$200
flat rate

LUT filing with DGFT: free for eligible exporters. Bank guarantee (if required): 0.5-2% of guarantee amount per year.

Who Pays?

Shipper (When CIF, DAP)
Consignee (When EXW, FOB)
Negotiability

Set by carrier or port authority — not negotiable.

LUT filing with Indian customs is free for eligible exporters. Bank guarantee costs are set by banks.

Adjustment Frequency

MonthlyWeeklyFixed

Current rate reviewed: per export

Chargeable Unit

Flat Rate

Formula / Calculation

LWS = Bank Guarantee Cost (if required) or LUT Processing Fee per Export Declaration
LUTIndiaDGFTGST exemptionexport obligation

Frequently Asked Questions

Who can file a Letter of Undertaking in India?
Registered Indian exporters with GST registration and a clean compliance record. New exporters may need a bank guarantee instead.