TMI BlogOverview of Customs FunctionsX X X X Extracts X X X X X X X X Extracts X X X X ..... ns and enforcing prohibitions and restrictions on imports and exports under various legal enactments; (d) Prevention of smuggling including interdiction of narcotics drug trafficking; and (e) International passenger clearance. 1.3 Customs functions cover substantial areas of activities involving international passengers, general public, importers, exporters, traders, custodians, manufacturers, carriers, port and airport authorities, postal authorities and various other Government and semi-Government agencies, banks etc. 1.4 Customs is continuously rationalizing and modernizing its Customs procedures through adoption of EDI and global best practices. Also, as a member of the World Customs Organization, the Customs has adopted various international Customs Conventions and procedures including the Revised Kyoto Convention, Harmonized Classification System, GATT based valuation etc. 2. Statutory provisions for levy of Customs duty: 2.1 Entry No. 83 of List 1 to Schedule VII of the Constitution empowers the Union Government to legislate and collect duties on imports and exports. Accordingly, the Customs Act, 1962, effective from 1-2-1963 provides vide its Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Standards Authority of India (FSSAI) and the Department of Plant Protection, Quarantine and Storage (PQIS) with the Customs with effect from 1-4-2015 at JNPT (NhavaSheva), ICD, Tughlakabad and ICD, Patparganj. Under this online message exchange system for import goods there will be seamless online exchange in real time of the Customs Bill of Entry (Import declaration) with these agencies and Release Order (RO) from both the agencies will be received by the Customs in electronic message format. The salient features of this online message exchange system are as under: (i) Indian Customs EDI (ICES) would transmit BE message to the FSSAI and PQIS on completion of assessment of the relevant Bills of Entry (Bs/E) by the Customs ICES application after entry-inward of the consignment. The BE message would be provided to FSSAI/PQIS for all Bs/E falling under the identified Custom Tariff Heads (CTHs), as per list made available by the respective agencies. (ii) The Customs officers would be able to access the details of the Bs/E referred by the ICES to FSSAI/PQIS. (iii) The importers would track the status of the Bs/E on ICEGATE (https://www.icegate.gov.in). (iv) The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... toms concerned. Its membership includes the senior-most functionary of the departments/agencies/stakeholder at the particular seaport/airport namely, (i) Food Safety Standards Authority of India/Port Health Officer (PHO), (ii) Plant Quarantine Authorities, (iii) Animal Quarantine Authorities, (iv) Drug Controller of India (CDSO), (v) Textile Committee, (vi) Port Trust / Airport Authority of India / Custodians, (vii) Wild Life Authorities, (viii) Railways/CONCOR, (ix) Pollution Control Board and (x) any other Department / Agency / stakeholder to be co-opted on need basis. The CCFC is required to meet once a week or more frequently, if needed, as per the following mandate: (i) Ensuring and monitoring expeditious clearance of imported and export goods in accordance with the timeline specified by the parent ministry/Department concerned; (ii) Identifying and resolving bottlenecks, if any, in the clearance procedure of imported and export goods; (iii) Initiating Time Release Studies for improvement in the clearance time of imported and export goods; (iv) Having internal consultations to speed up the clearance process of imported and export goods and recommending best ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n dispensed with provided the said declaration is furnished in the Shipping Bill. [Refer Circular No.15/2015 Cus., dated 18-5-2015] 3.7 Digital Signature: The Board has decided that with effect from 1-4-2015 importers, exporters, customs brokers, shipping lines, airlines or their agents shall have the facility to use Digital Signature Certificate for filing Customs process documents viz. Bills of Entry, Shipping Bills, IGM (General Declaration and Cargo Declaration), EGM (General Declaration), CGM through Remote EDI System (RES). For the present, the facility of using digital signatures is optional for all users but the ACP importers are required to mandatorily file Bills of Entry with digital signature w.e.f. 1-5-2015. [Refer Circular No.10/2015 Cus., dated 31-3-2015] 3.8 Re-export permission: With a view to expedite decision-making in respect of re-export of when the said goods are destined elsewhere but which are inadvertently imported at a particular Customs station, the Board has decided that the permission for re-export may be granted on merit by the officer concerned as per the adjudication powers as per Section 122 of the Customs Act, 1962. [Refer C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder whose custody the imported goods shall remain till these are cleared for home consumption, or are warehoused or transhipped as provided in the law. With the growth of containerized traffic the facility of Customs clearances in the interiors of the country has also been provided by opening various ICDs, which are actually dry ports and here too the goods remain with the appointed custodian till these are cleared by the Customs. In addition to custodians appointed by the Commissioner of Customs, the Customs Act, 1962 recognizes other custodians as provided under any other law. For instance, the Mumbai Port Trust is a legal custodian under the Major Ports Trust Act, 1963. The custodian is essentially required to take charge of the imported goods from the carrier, arrange its proper storage and safety and allow clearance to the importers only after they fulfill all Customs formalities, pay requisite duties and other charges/fees and discharge various other obligations. No goods can be cleared from a Customs area without the express permission of Customs. Moreover, since the Customs Act, 1962 obliges the custodians to ensure safe custody of the imported goods till delivery, in case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /airports/Land Customs Stations; furnish detailed information to Customs about goods brought in for unloading at that particular port/international airport as also those which would be carried further to other ports/airports. Declaration of such cargo has to be made in an 'Import General Manifest' (IGM) prior to arrival of the vessel/aircraft at the Customs station. In the case of imports through Land Customs Stations the person in charge of the vehicle has to give similar import report within 12 hours of its arrival. Since the cargo clearance formalities are linked generally with the availability of information about cargo being brought by a vessel for unloading at any port, provisions is also made for prior filing of an IGM if all details of relevant cargo for any port are available even before the vessel arrives. The final IGM can be filed after arrival of the vessel. 6.2 Unless, the is furnished in the prescribed form, no unloading of cargo can be undertaken from any vessels/aircrafts/vehicles in normal circumstances. After the IGM is duly delivered the unloading takes place under the supervision of the Preventive Officers of Customs. The law prohibits unloading of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. Customs clearance of cargo: 8.1 Before any imported goods can be cleared for home consumption in the country or for warehousing for subsequent Customs clearances as and when needed etc., the importers have to comply with prescribed Customs clearance formalities. Essentially, these involve presentation of certain documents along with a prescribed application normally termed 'Bill of Entry', which gives essential particulars in relation to imported goods, country of origin, particulars of vessel/aircraft etc. seeking clearance of goods for home consumption/warehousing etc. The importer either himself handles the import clearance documents or appoints Customs Brokers,)who are trained and experienced in Customs clearance work and are licensed by Customs for such work in terms of the Customs Broker Licensing Regulations, 2013. 8.2 The import clearance documentation, presentation, and processing is handled in the Custom Houses by Appraising staff trained in assessment matters. After a tally has been made with related IGM to ensure the goods sought for clearance have arrived and declared in the particular IGM of the vessel/aircraft mentioned in the Bill of Entry (or even ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing adjudication proceedings, the law provide for provisional clearances subject to suitable bond/security. Only where the goods are of prohibited nature or in certain other exceptional cases, where provisional release is not considered advisable, the final decision may be taken after results of enquiries etc. are known and adjudication proceedings completed, where necessary. 8.6 Customs clearance formalities for goods meant for export have to be fulfilled by presenting a 'Shipping Bill' and other related documents to the Export Section of the Custom Houses or EDI Service Centres. The Appraising staff checks the declarations to assess the duties/cess, if leviable, propriety of export incentives, where claimed under different schemes like Duty Drawback or duty free exemption schemes etc. Appropriate orders for examination before shipments are allowed export are given on the Shipping Bill. The Customs staff in the docks/cargo complexes/ICDs examines the goods meant for export on percentage basis, and allows shipment if there are no discrepancies mis-declarations etc., and no prohibitions/violations come to light. Appropriate penal action as per law is initiated where an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved with the departmental adjudication is given the right to appeal against the said order. The first level of appeal is to Commissioner (Appeal) and thereafter to an independent Tribunal (CESTAT) unless the adjudication order is originally passed by the Commissioner of Customs in which case the first level of appeal is to the CESTAT. On questions of law, the orders of CESTAT could also be considered for reference to the High Court and certain categories of decisions involving classification or valuation can be appealed even before the Supreme Court. 11. Passenger processing: 11.1 All incoming international passengers after immigration clearance have to pass through Customs who ensure their facilitation and speedy clearance. However, at time unscrupulous passengers may try to smuggle goods into the country which are sensitive and otherwise prohibited/restricted or evade duties by non-declaration/mis-declaration to Customs. Similarly, the Customs have to ensure that these passengers do not smuggle out foreign currency, antiques or other wildlife and prohibited items or narcotics drugs or psychotropic substances. The Customs have also to ensure enforcement of various other al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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