POSTAL EXPORT (ELECTRONIC DECLARATION AND PROCESSING) REGULATIONS, 2022

[Mr. M. GOVINDARAJAN]

Introduction

For exporting items through Postal channel a new procedure have been mandated by Customs to be followed by exporters. The exporters can use the Postal channel of exports for sending the commercial exports out of the country. The procedures have been put in place by customs in all Foreign Post Offices.(‘FPO’ for short). Starting with 5 FPOs Delhi, Mumbai, Chennai, Kolkata and Kochi, the customs has notified additional locations through notifications Notification No. 31/2017 Customs (N.T) dated 31.03.2017 and Notification No. 103 /2018- Customs (N.T.) dated 31.12.2018. Thus exports through Posts are possible through 28 locations across the country.  For this purpose the Central Board of Indirect Taxes and Customs (‘CBIC’ for short) with the collaboration of postal department has developed a dedicated Postal Bill of Exports Automated System for postal exports. 

Regulation

The Central Board of Indirect Taxes and Customs made the regulation called the Postal Export (Electronic Declaration and Processing) Regulations, 2022 (‘Regulations’ for short) vide Notification No. 104/2022-Customs (NT), dated 09.12.2022.  These regulations came into effect from 09.12.2022.  These regulations are meant to facilitate the process of commercial postal exports by automating the entire procedure seamlessly connecting the postal network to the notified FPOs.

PBE Automated system

Regulation 3(1)(g) defines the expression ‘PBE Automated System’ as a system operated and maintained by the postal authorities for filing of electronic declaration by exporter or his authorized agent.

The postal authorities shall set up, operate and maintain the PBE Automated System for filing of electronic declaration for export of goods through post.   The PBE Automated System shall validate and recognize the registered person and enable him to file electronic declaration and upload supporting documents on the said system.

Electronic Declaration

Regulation 3(1)(e) defines the expression ‘electronic declaration’ as the declaration of the particulars relating to the export goods, filed electronically by the exporter or his authorized agent on the PBE Automated System, operated and maintained by the postal authorities.

Registration

An exporter who wishes to export goods through post or his authorized agent shall register himself on the PBE Automated System.  The registration procedure is OTP based authentication and involves capturing certain mandatory identifiers corresponding to exporter’s personal and business profile and uploading of KYC documents.  PBF Automated system also providers for registering of details of authorized agent where required. 

Electronic declaration

The exporter or his authorized agent shall make an entry through an electronic declaration in Forms-

• Postal Bill of Export – III (PBE III) for postal exports  effected through e-commerce; or
• Postal Bill of Export – IV (PBE IV) for all other postal exports.

The declarant, while making the said entry shall make and subscribe to a declaration as to the truth of its contents and ensure the-

• accuracy and completeness of the information given therein;
•  authenticity and validity of any document supporting it; and
• compliance with restriction or prohibition, if any, relating to the goods under the Act or under any other law for the time being in force.

Export procedure

The postal authorities, in consultation with the Board, shall authorize certain post offices to accept and book export goods and also specify the corresponding FPO to each of them. The following procedure is involved in exporting of goods through PBE Automated System-

• The exporter is required to fill the details in PBE Form (III or IV) such as description of consignment, export destination, sender’s and receiver’s details etc., under the ‘Article Booking’ menu.
• If the exporter appoints authorized agent, the exporter shall furnish the required details of the agent.
• An article booking ID reference and a PBE number will be auto generated.
• The portal also facilitates uploading of bulk information for multiple articles which are essential for customs purpose.
• Once the article is booked on the portal, the exporter or his agent shall deliver the export articles to the nearest or most convenient Post Office.
• The exporter may also present the export goods to the postal authorities at a foreign post office.
• The export goods shall bear a declaration from the exporter regarding the contents of each of the packages, the value thereof and other particulars to be affixed on the package, in the format laid down by the postal authorities.
• The declaration on the package with respect of weight of articles and the destination country name will be verified by the booking post office.
• The required fees shall also be collected by the booking post office.
• The postal authorities shall provide for secure transfer or movement of the export goods from the booking post office to the corresponding foreign post office, where customs clearance shall take place.
• The proper officer will access the customs portal as per the role allocation i.e., assessment, inspection, examination or escalation as assigned by the System Administrator appointed for this purpose.
• If there is any doubt, the proper officer may call for further clarification or documents by raising a query on the portal which will be notified to the exporter electronically and will reflect under the bail icon of exporter’s web page.
• For the query the exporter shall furnish the required information and upload requisite documents on the portal which can be viewed by the Customs under the ‘Customer Referral’ sub menu.
• If the proper officer is satisfied with the declaration and the duty and any charges payable he may clear the package for export.
• The proper officer may detain an export package for further investigation, if required.
• The proper officer may cancel the export if the export item is prohibited.
• Once the postal consignment has been cleared by Customs for export the exporter can print the finalized PBE Form by downloading the same from the ‘Forms download’.
• The postal authorities shall furnish the proof of export and corresponding electronic documents to Customs.

Clearance procedure

The following is the procedure involved in clearance of the exported goods in designated country-

• On arrival in the foreign post office, the export goods shall not be dealt in any manner except as may be directed by the Principal Commissioner or Commissioner of Customs.
• Any package of export goods arrived in foreign post office shall be opened with the permission of the proper officer of the Customs.
• The postal authorities shall present the export goods and the corresponding electronic declaration to the proper officer of Customs at the foreign post office, in such manner as to the satisfaction of the said proper officer, for screening, inspection, examination and assessment thereof.
• The proper officer may call for clarification or documents, electronically on the PBE Automated System, from the exporter or his authorized agent in relation to the export goods.
• If the proper officer is satisfied that the goods entered are not prohibited goods and the duty, if any, assessed thereon and any charges payable under the Act in respect of the same have been paid, the proper officer may make an order permitting clearance of the goods for export.
• The postal authorities shall furnish the proof of export and corresponding electronic data, captured on the PBE Automated System, to Customs.

Where required or permitted by the proper officer, the postal authorities shall provide for secure transfer or movement of goods from foreign post office to booking post office.

Retention of documents

The copy of the declaration along with the supported documents shall be retained for a period of 5 years from the date of filing of declaration by the exporter or his authorized agent.  Such documents shall be produced before Customs in connection with any action or proceedings under the Act or under any other law for the time being in force.

Responsibilities of authorized agent

The authorized agent of the exporter may file electronic declaration on his behalf and assist the exporter in performing the functions related to clearance of export goods through post.  He shall be fully responsible for all the operations and transactions performed by such agent on his behalf.  The agent shall be liable for payment of any dues owed to the government or penal provisions as applicable under these regulations or the Act or any other law for the time being in force.  The authorized agent shall be governed by the regulations made under section 146 (licence for Customs brokers), and section 147 (liability of principal and agent)  of the Customs Act.

Penalty

Any person who contravenes any of the provisions of these regulations or abets such contravention or fails to comply with any of the provision of these regulations, with which it was his duty to comply, shall be liable to a penalty to an extent of Rs.2 lakhs.