TMI BlogProcedure for Clearance of Imported and Export GoodsX X X X Extracts X X X X X X X X Extracts X X X X ..... red. Similarly 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 ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... talogue, technical write up, literature for machineries, spares 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/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would continue to be regulated by Bill of Entry (Forms) Regulations, 1976. 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 assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the salient features of self-assessment is that verification of declarations 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 im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the goods before assessing the duty liability or, if the Customs Appraiser/Assistant 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in safe custody. Due care should also be taken to verify the particulars in the Bill of Entry 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 particular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion are also required with the Bill of Entry for warehousing which is assessed in the same manner and duty payable 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... V is to monitor, maintain and enhance compliance levels, while reducing the dwell time of cargo. The RMS selects the Bills 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 cleare ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Customs, and after recording the reason for the same. A brief remark on the reasons and particulars of Commissioner s authorization 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 responsi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ual Quantity Code (UQC) at agreed intervals. (vi) The RMD will review the performance of the RMS in terms of reviewing the various targets/interventions inserted 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 Committe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Customs. 15. Accredited Clients Programme: 15.1 The Accredited Clients Programme (ACP) grants assured facilitation to importers who have demonstrated capacity and willingness to comply with the laws administered by the Customs. 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ills of Entry during the previous financial year. (vi) They should have no duty demands pending on account of non-fulfilment of export obligation. (vii) They should have reliable systems of record keeping and internal controls and their accounting systems should conform to recognized standards of 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 cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re the Commissioner has, by a special order, permitted examination of goods for export. No examination except: (a) where the seals are tampered with; or (b) there is specific intelligence in which case, permission of Deputy/Assistant Commissioner is required before checking. B. Export under Free Shipping Bills: Category of Exports Scale of Examination Exports 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpected. However, in case an exporter wishes to change any of the critical parameters resulting in change of value, Drawback, port etc. such consignment should be subjected to examination. 20.6 Notwithstanding the examination norms, any export consignment can be examined by the Customs (even up to 100%), if there is any specific intelligence in respect of the said consignment. Further, to test the compliance by trade, once in three months a higher percentage of consignments (say for example, all the first 50 consignments or a batch of consecutive 100 consignments presented for examination in a particular day) would be taken up for examination. Out of the consignments selected for examination a minimum of two packages with a maximum of 5% of packages (subject to a maximum of 20 packages) would be taken up for checking/examination. 20.7 In case export 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se (where permissible) so that it is not unduly held up in ports/airports etc. Further as a trade facilitation measure the facility of 24x7 Customs clearance has been extended to export consignments of perishable agricultural export goods at all air cargo complexes. [Refer Circular No.12/2013- Cus IV., dated 2-4-2013] 20.12 In cases of cargo transported for exports through containers or bonded closed trucks to Gateway Port after following the Central Excise/ Customs officer supervised sealing or self-sealing by manufacturer exporters, EOUs; and containers aggregated with LCL cargo in CFSs/ ICDs sent to the port after sealing in the presence of officers the tamper proof one-time bottle seal alone should be adopted as it ensures safety and security of sealing process and avoid any resealing at the point of export. In respect of one-time bottle seals provided 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se the exporter agrees with the views of the Department, the Shipping Bill needs to be processed accordingly. Where, however, the exporter disputes the view of the Department the issue will be finalized in accordance with the principles of natural justice. 23. Drawl of samples: 23.1 Where the Appraiser Dock (Export) orders for samples to be drawn and tested, the Customs Officer may proceed to draw two samples from the consignment and enter the particulars thereof along with details of the testing agency in the ICES/EDI system. There is no separate register for recording dates of samples drawn. Three copies of the test memo shall be prepared by the Customs Officer and signed by the Customs Officer and Appraising Officer on behalf of Customs and the exporter or his agent. The disposal of the three copies of the test memo shall be as follows: (i) Original - to be sent along with the sample 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 visu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endments may be permitted only by the Additional/Joint Commissioner in charge of Export. 25.2 In both the cases, after the permission for amendments has been granted, the Assistant Commissioner/Deputy Commissioner (Export) may approve the amendments on the EDI system on behalf of the Additional/Joint Commissioner. Where the print out of the Shipping Bill has already been generated, the exporter may first surrender all copies of the Shipping Bill to the Dock Appraiser for cancellation before amendment is approved on the system. 25.3 In respect of amendment in AEPC Certificate on receipt of request from the exporter, the Assistant Commissioner /Deputy Commissioner (Exports) should allow the change of port in EDI Shipping Bills / invoice to help exporters in getting the goods cleared without waiting for an amendment of documents by AEPC. The ratification of the port of change would be done subsequently by AEPC. [Refer Circular 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 Shippi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received by the Export Department. [Refer Circulars No.33/96-Cus., dated 17-6-1996, No.6/2002-Cus., dated 23-1-2002, No.31/2002-Cus., dated 7-6-2002, No.3/2003-Cus., dated 3-3-2003, No.53/2004-Cus., dated 13-10-2004, No.18/2005-Cus., dated 11-3-2005, No.42/2005-Cus., dated 24-11-2005, No.43/2005-Cus., dated 24-11-2005, No.1/2006-Cus., dated 2-1-2006, No.8/2007-Cus., dated 22-1-2007, No.23/2007-Cus., dated 28-6-2007, and No.1/2009-Cus., dated 13-1-2009] 29. Electronic Declarations for Bills of Entry and Shipping Bills: 29.1 Bill of Entry (Electronic Declaration) Regulations, 2011 and Shipping Bill (Electronic Declaration) Regulations, 2011 are framed in tune with statutory provisions of Sections 17, 18 and 50 of the Customs Act, 1962 to mandate self-assessment by the importer or exporter, as the case may be. [Refer Notifications No.79/2011-Cus (N.T.) dated 25-11-2011 and No.80/2011-Cus (N.T.) dated 25-11-2011] 30. 24x7 Customs clearance facility: 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, Kand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of Customs and Central Excise or Appraiser (i) Section 13; (ii) Section 14; (iii) Sub-sections (2), (3), (4) and (6) of Section 17; (iv) Section 19; (v) Section 40; (vi) Section 41; (vii) Clause (b) of sub-section (2) of Section 45; (viii) Sub-sections (1) and (4) of section 46; (ix) Section 47; (x) Section 50; (xi) Section 51; (xii) Section 54; (xiii) Section 62; (xiv) Clause (a) to (e) of Section 64; (xv) Section 68; (xvi) Section 69; (xvii) Section 79; (xviii) Section 83; (xix) Section 86; (xx) Section 92; and (xxi) Section 93 6. Intelligence Officer in the Directorate General of Revenue Intelligence and Directorate General of Central Excise Intelligence. (i) Section 37; (ii) Section 100; (iii) Section 103; (iv) Section 106; (v) Section 106A; (vi) Sub-sections (1) and (3) of section 110; (vii) Section 144; and (viii) Section 145. 7. Inspector of Customs and Central Excise or Preventive Officer or Examining Officer. (i) Sub-section (1) of section 31; (ii) Section 34 excluding proviso to Section; (iii) Section 37; (iv) Section 38; (v) Section 39; (v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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