TaxTMI 
TaxTMI 
TaxTMI 
Procedure for Clearance of Imported and Export Goods
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....imilarly Customs clearance formalities for goods meant for export have to be fulfilled by presenting a Shipping Bill and other related documents. These documents are verified for correctness of assessment and after examination of the goods, if warranted, 'Let Export Order' is given on the Shipping Bill. 2. Import procedure - Bill of Entry: 2.1 Goods imported into the country attract Customs duty and are also required to confirmto relevant legal requirements. Thus, unless the imported goods are not meant for Customs clearance at the port/airport of arrival such as those intended for transit by the same vessel/aircraft or transshipment to another Customs station or to any place outside India, detailed Customs clearance formalities have to be followed by the importers. In contrast, in terms of Section 52 to 56 of the Customs Act, 1962 the goods mentioned in the IGM/Import Report for transit to any place outside India or meant for transshipment to another Customs station in India are allowed transit without payment of duty. In case of goods meant for transshipment to another Customs station, simple transshipment procedure has to be followed by the carrier and the concerned agencies a....
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....ares or chemicals, as applicable (l) Separately split up value of spares, components, machinery (m) Certificate of Origin, if preferential rate of duty is claimed 2.6 While filing the Bill of Entry, the correctness of the information given therein has also to be certified by the importer in the form a declaration at the foot of the Bill of Entry and any mis-declaration/incorrect declaration has legal consequences. 2.7 Under the EDI system, the importer does not submit documents as such but submits declarations in electronic format containing all the relevant information to the Service Centre. A signed paper copy of the declaration is taken by the service centre operator for non-reputability of the declaration. A checklist is generated for verification of data by the importer/ Customs Broker. After verification, the data is filed by the Service Centre Operator and EDI system generates a Bill of Entry Number, which is endorsed on the printed checklist and returned to the importer/ Customs Broker. No original documents are taken at this stage. Original documents are taken at the time of examination. The importer/ Customs Broker also needs to sign on the final document before Cus....
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....76. However, this facility should not be allowed in routine and the Commissioner should ensure that manual filing of Bill of Entry is allowed only in genuine and deserving cases. Similarly, on export side also, Section 50 of the Customs Act, 1962 makes it obligatory for exporters to make entry of export goods by presenting a Shipping Bill electronically to the proper officer except for the cases where it is not found feasible to make such entry electronically. In these cases the Commissioner may allow manual filing of Shipping Bill. Again, this authority should be exercised cautiously and only in genuine cases. 3.3 The declaration filed by the importer or exporter may be verified by the proper officer when so interdicted by the Risk Management Systems (RMS). In rare cases, such interdiction may also be made with the approval of the Commissioner or an officer duly authorized by him, not below the rank of Additional Commissioner of Customs, and this will necessarily be done after making a record in the EDI system. On account of interdictions, Bills of Entry may either be taken up for action of review of assessment or for examination of the imported goods or both. If the self-assessm....
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....ns and assessment done by the importer or exporter, except for cases wherein a speaking order has been passed by the proper officer while re-assessing the duty, can also be done at the premises of the importer or exporter. On Site Post Clearance Audit (OSPCA) has been applied to importers under the Accredited Client Programme (ACP) with effect from 1.10.2011. The Post Clearance Audit at Custom Houses shall continue for other importers. 3.6 In cases, where the importer or exporter is not able to determine the duty liability / make self-assessment for any reason, except in cases where examination is requested by the importer under proviso to Section 46(1), a request shall be made to the proper officer for assessment of the same under Section 18(a) of the Customs Act, 1962. In this situation an option is available to the proper officer to resort to provisional assessment of duty by asking the importer / exporter to furnish security as deemed fit for differential duty equal to duty provisionally assessed and duty finally payable after assessment. This provision is to be applied in deserving cases only where importer or exporter is not able to assess the goods for duty for want of cert....
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....nt Commissioner feels the goods are required to be examined before assessment. This is called First Check Appraisement. The importer has to request for First Check Appraisement at the time of filing the Bill of Entry or at data entry stage giving the reason for the same. The Customs Appraiser records on original copy of the Bill of Entry the examination order and returns the Bill of Entry to the importer/ Customs Broker for being taken to the import shed for examination of the goods. Thereafter, Shed Appraiser/Dock Examiner examines the goods as per examination order and records his findings. In case appraising group has called for samples, he forwards sealed samples accordingly. The importer is required to bring back the said Bill of Entry to the assessing officer for assessing the Bill of Entry, which is countersigned by Assistant/Deputy Commissioner if the value is more than Rs.1 lakh. 4.2 The imported goods can also be examined subsequent to assessment and payment of duty. This is called Second Check Appraisement. Most of the consignments are cleared on Second Check Appraisement basis. In this case whole of the consignment is not examined and only those packages which are sele....
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....ry and other important documents. [Refer Instructions F.No.450/24/2012-Cus.IV, dated 29-10-2012] 5. Execution of bonds: 5.1 Wherever necessary, for availing duty free assessment or concessional assessment under different schemes and notifications, execution of end use bonds with Bank Guarantee or other surety is required to be furnished. These have to be executed in prescribed forms before the assessing Appraiser. For instance, when the import of goods is made under Export Promotion schemes, the importer is required to execute bonds with the Customs authorities for fulfilment of conditions of respective notifications. If the importer fails to fulfil the conditions, he has to pay the duty leviable on those goods. The amount of bond and bank guarantee is determined in terms of the instruction issued by the Board as well the conditions of the relevant notification etc. 6. Payment of duty: 6.1 The duty can be paid in the designated banks through TR-6 Challan. It is necessary to check the name of the bank and the branch before depositing the duty. Bank endorses the payment particulars in challan which is submitted to the Customs. Facility of e- payment of duty through more than one....
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....e is determined. However, since duty is not required to be paid at the time of warehousing, the purpose of assessing the duty at this stage is only to secure the duty in case the goods do not reach the warehouse. The duty is paid at the time of ex-bond clearance of goods for which an Ex-Bond Bill of Entry is filed. The rate of duty applicable to imported goods cleared from a warehouse is the rate in- force on the date of filing of Ex-Bond Bill of Entry. 10. Risk Management System in import: 10.1 'Risk Management System' (RMS) has been introduced in Customs locations where the EDI System (ICES) is operational. This is one of the most significant steps in the ongoing Business Process Re-engineering of the Customs Department. RMS is based on the realization that ever increasing volumes and complexity of international trade and the deteriorating global security scenario present formidable challenges to Customs and the traditional approach of scrutinizing every document and examining every consignment will simply not work. Also, there is a need to reduce the dwell time of cargo at ports/airports and transaction costs in order to enhance the competitiveness of Indian businesses, by exp....
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....s of Entry for audit, after clearance of the goods, and these selected Bills of Entry are directed to the audit officers for scrutiny by the EDI system. In case any possible short levies are noticed, the officers issue a Consultative Letter mentioning the grounds for their view to the importers. This is intended to give the importers an opportunity to voluntarily comply and pay the duty difference if they agree with the department's point of view. In case there is no agreement, the formal processes of demand notices, adjudication etc. would follow. The auditors are specifically instructed to scrutinize declarations with reference to data quality and advise the importers suitably where the quality of their declarations is found deficient. Such advice is expected to be followed by the trade and monitored by the local risk managers. 11. Risk Management System in Export 11.1 On similar lines of the RMS in imports, a Risk Management System (RMS) in Export has been introduced with effect from 15-7-2013. The RMS in exports allows low risk consignments to be cleared based on self assessment of the declarations by exporters. This enables the department to enhance the level of facilitation....
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....zation should be made by the officer examining the goods in the departmental comments in the EDI system. 11.4 The RMS in export has been launched in two phases. In the first phase the RMS will process the data and provide the output to ICES only up to goods examination stage. In the second phase, the RMS will also process the Shipping Bill data after the Export General Manifest (EGM) is filed electronically and provide output to ICES for selection of Shipping Bills for Drawback scrutiny and Post Clearance Audit (PCA). 11.5 With the implementation of export RMS, a Post Clearance Audit (PCA) function hasbeen introduced in respect of exports after the LEO is given for export consignment. The objective of PCA is to monitor, maintain and enhance compliance levels, while reducing the dwell time of cargo. The RMS would select the Shipping Bills for audit, after issue of LEO, and these selected Shipping Bills will be directed to the audit officers for scrutiny by the ICES. 11.6 As in the case of Import, the national management of the RMS shall be the responsibility of the Risk Management Division. There will be a single Local Risk Manager (Admin) for a location for both import and expor....
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....ed by the Local Risk Management (LRM) Committee, make objective assessment of the effectiveness of such insertions, and ensure that the performance is consistent with the objective laid down. For this purpose, the RMD shall provide necessary advice and guidance to Custom Houses as and when required, which shall be followed. The RMD will also review the extent of facilitation being provided to the trade and offer necessary guidance to the officers in the Custom Houses with a view to providing appropriate facilitation and also ensuring compliance. (vii) The RMD will coordinate and liaise with Other Government Departments (OGDs), for dealing with risks relating to the compliance requirements under relevant allied Acts. (viii) The RMD will work in close coordination with NACEN in developing training manuals and other documentation necessary for implementing RMS and also work out regular training schedules for officers responsible for the RMS in major Customs locations. 13. National Risk Management Committee: 13.1 A National Risk Management (NRM) Committee headed by DG (Systems) reviews the functioning of the RMS, supervises implementation and provide feedback for improving its ef....
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....stoms. This programme replaces all existing schemes for facilitation in the Customs stations where EDI and RMS is implemented. Importers registered as "Accredited Clients" form a separate category to which assured facilitation is provided. Except for a small percentage of consignments selected on random by the RMS, or cases where specific intelligence is available or where a specifically observed pattern of non-compliance is required to be addressed, Accredited Clients are allowed clearance on the basis of self assessment without examination of goods as a matter of course. 15.2 Considering the likely volume of cargo imported by the Accredited Clients, Custom Houses are advised to create separately earmarked facility/counters for providing Customs clearance service to them. Commissioners of Customs are also required to work with the Custodians for earmarking separate storage space, handling facility and expeditious clearance procedures for these clients. 15.3 The RMD administers the ACP and maintains the list of Accredited Clients centrally in the RMS and also monitors their levels of compliance, in co-ordination with the DRI/Commissioners of Customs. Where compliance levels fall,....
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....accounting. They are required to provide the necessary certificate from their Chartered Accountants in this regard. 15.5 The ACP accreditation is initially valid for a period of one year and is renewable thereafter upon a review of the compliance record of the Accredited Client. [Refer Circulars No. 22/97-Cus., dated 4-7-1997, No.63/97-Cus., dated 21-11-1997, No.42/2005-Cus., dated 24-11-2005, and No.43/2005-Cus dated 24-11-2005] 16. Export procedure - Shipping Bill: 16.1 For clearance of export goods, the exporter or his agent has to obtain an Importer- Export Code (IEC) number from the DGFT prior to filing of Shipping Bill. Under the EDI System, IEC number is received online by the Customs System from the DGFT. The exporter is also required to register authorized foreign exchange dealer code (through which export proceeds are expected to be realised) and open a current account in the designated bank for credit of any Drawback incentive. 16.2 All the exporters intending to export under the export promotion scheme need to get their licences etc. registered at the Customs Station. For such registration, original documents are required. 17. Waiver of GR form: 17.1 Generally th....
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....ts under Free Shipping Bills i.e. where there is no export incentive. No examination except where there is a specific intelligence. C. Export under Drawback scheme: S.No. Category of exports consignment - Amount of Drawback involved Scale of Examination Export to sensitive places viz. Dubai,Sharjah,Singapore,Hong Kong and Colombo Others (i) Rs.1 lakh or less. 25% 2% (ii) More than Rs.1 lakh. 50% 10% D. Export under EPCG/DEEC schemes: S.No. Category of exports consignment - FOB value involved Scale of Examination Export to sensitive places viz. Dubai, Sharjah, Singapore, Hong Kong and Colombo Others (i) Rs.5 lakhs or less. 25% 2% (ii) More than Rs.5 lakhs. 50% 10% E. Export under Reward schemes - Chapter 3 of FTP: S.No. Category of exports under Free Shipping Bills - FOB value involved Scale of Examination Export to sensitive places viz. Dubai, Sharjah, Singapore,Hong Kong and Colombo Others (i) Rs.20 lakhs or less. 25% 2% (ii) More than Rs.20 lakhs. 50% 10% 20.2 AEO exporters shall be given benefits of reduced percentage of examination, as under: S.No. Category of export consignments Scale of Examination Export to sensiti....
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....ort goods are stuffed and sealed in the presence of Customs/Central Excise officers at the factory of manufacture/ICD/CFS/warehouse and any other place where the Commissioner has, by a special order, permitted, it may be ensured that the containers should be bottle sealed or lead sealed. Also, such consignments shall be accompanied by an examination report in the prescribed form. In case of export through bonded trucks, the truck should be similarly bottle sealed or lead sealed. In case of export by ordinary truck/ other means, all the packages are required to be lead sealed. [Refer Circulars No.6/2002-Cus., dated 23-1-2002, and No.1/2009-Cus., dated 13-1-2009] 20.8 If the export is made claiming benefits of Drawback or any other export promotion scheme in addition to claiming benefits under any Schemes of Chapter 3 of FTP, then the examination norms as prescribed by the Board for the respective export promotion schemes would apply. In order to claim benefits under the Reward Schemes, the exporter is required to declare the intention to claim such benefits on the Shipping Bill itself. 20.9 Exports by EOUs and units in SEZs are governed by examination norms, as applicable for EPC....
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....ed by the department, its cost may be recovered from exporters/ manufacturers or their agents. However, exporters/manufacturers need not be compelled to procure such bottle seals only from the department as this would defeat the very purpose of self-sealing facility and avoid delay. When trucks/ other means used for export cargo cannot be bottle sealed, same would be subject to normal examination norms at gateway port. [Refer Circular No.1/2006-Cus., dated 2-1-2006] 20.13 The exporters can avail of the facility of removal of export goods from the factories on the basis of self-certification and self-sealing; but these shall be examined at the port of export on the basis of prescribed examination norms. [Refer Circulars No.6/2002-Cus., dated 23-1-2002 and No.31/2002-Cus., dated 7-6-2002] 21. Factory stuffing permission: 21.1 The grant of a single factory stuffing permission valid for all the Customs stations instead of Customs station-wise permission is permitted. This facility is subject to the following safeguards: (i) The exporter is required to furnish to Customs a list of Customs stations from where he intends to export his goods. (ii) The Custom House granting the fac....
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....e to the test agency. (ii) Duplicate - Customs copy to be retained with the 2nd sample. (iii) Triplicate - Exporter's copy. 23.2 If he considers it necessary, the Assistant / Deputy Commissioner, may order sample to be drawn for purposes other than testing such as for visual inspection and verification of description, market value inquiry, etc. 24. Stuffing/loading of goods in containers: 24.1 The exporter or his agent should hand over the Exporter's copy of the Shipping Bill duly signed by the Appraiser permitting "Let Export" to the steamer agent who would then approach the proper officer (Preventive Officer) for allowing the shipment. In case of container cargo the stuffing of container at Dock is done under Preventive Supervision. Further, loading of both containerized and bulk cargo is to be done under Preventive Supervision. The Customs Preventive Superintendent (Docks) may enter the particulars of packages actually stuffed into the container, the bottle seal number, details of loading of cargo container on board into the EDI system and endorse these details on the Exporter' copy of the Shipping Bill. If there is a difference in the quantity/ number of packages stuffed....
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....No.46/2003-Cus., dated 5-6-2003] 26. Drawback claim: 26.1 After actual export of the goods, the Drawback claim is automatically processed through EDI system by the officers of Drawback Branch on first-come-first-served basis. The status of the Shipping Bills and sanction of Drawback claim can be ascertained from the query counter set up at the Service Centre. If any query is raised or deficiency noticed, the same is also shown on the terminal and a print out thereof may be obtained by the authorized person of the exporter from the Service Centre. The exporters are required to reply to such queries through the Service Centre. The claim will come in queue of the EDI system only after reply to queries/deficiencies is entered in the Service Centre. 26.2 All the claims sanctioned on a particular day are enumerated in a scroll and transferred to the Bank through the system. The bank credits the drawback amount in the respective accounts of the exporters. The bank may send a fortnightly statement to the exporters of such credits made in their accounts. 26.3 The Steamer Agent/Shipping Line may transfer electronically the EGM to the Customs EDI system so that the physical export of the ....
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....ity: 30.1 As a trade facilitation measure, 24x7 Customs clearance facility has been made available for specified categories of import and export at select Seaports and Air Cargo Complexes, as follows: Sea ports: JNPT, Kandla , Chennai , Kolkata. Air Cargo Complexes : Ahmadabad, Amritsar, Bangalore, Calicut, Chennai, Cochin, Coimbatore, Delhi, Goa, Hyderabad, Indore, Jaipur, Kolkata, Mumbai, Nasik, Thiruanantapuram, Vishakhapatnam,. 30.2 With effect from 1-7-2013 the 24x7 Customs clearance facility has been extended in respect of all export goods at Air Cargo Complexes at Bangalore, Chennai, Delhi and Mumbai. [Refer Circular No. 22/2012-Cus., dated 7-8-2012 and Instruction F.No.450/25/2009-Cis IV, dated 31-5-2013] 31. Proper Officers of Customs: 31.1 Various sections of the Customs Act, 1962 refer to "proper officer" of Customs. Accordingly, Board has notified the following proper officers for different sections of the said Act: S.No. Designation of the Officers Functions under the Sections of the Customs Act, 1962 1. Commissioner of Customs. (i) Section 33 2. Additional Commissioner or Joint Commissioner of Customs. (i) Sub-section (5) of Section 46; and (ii)....