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 ..... s can be cleared. 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 confirm to 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 carrie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... necessary (k) Catalogue, 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 e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the importer. These Bills of Entry 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 take ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble after re-assessment. 3.5 One of 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the authority to allow manual filing and processing of documents rests with the Commissioner of Customs only. The Board has noticed that despite this strict instruction, some field formations particularly vulnerable outlying CFSs/ ICDs are still routinely allowing importers/exporters to file the documents manually. The Board has reiterated that the facility of manual filing and processing of import/export documents shall be permitted by the Commissioner of Customs strictly in accordance with the legal provisions, read with Board s instructions on the subject. [Refer Instruction F.No. 401/81/2011-Cus.III, dated 7-4-2014] 3.11 In order to facilitate genuine trade and reduce dwell time, it has been decided that genuine clarification sought by officers from importers / exporters are raised in one go and not in piecemeal manner. Further, the field formation could consider listing of the queries frequently raised in course of assessment and disseminate them through Public notice or sensitize trade about the same so that importers should take preventive action to avoid such queries or to be prepared to reply to such queries. [Refer Circular No 22/2015-Cus, dated 3.09.2015 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransfers first appraisement Bill of Entry to the appraising group and gives 'out of charge in case of already assessed Bills of Entry. Thereupon, the system prints Bill of Entry and order of clearance (in triplicate). All these copies carry the examination report, order of clearance number and name of Shed Appraiser. Two copies each of Bill of Entry and the order are to be returned to the importer/Customs Broker, after the Appraiser signs them. One copy of the order is attached to the Customs copy of Bill of Entry and retained by the Shed Appraiser. 4.4 In order to reduce transaction cost, importers may exercise the option to de-stuff goods from foreign containers and keep the same in the CFS / ICD including in empty domestic containers therein, under Customs supervision, for subsequent clearance as per law. [Refer Instruction F.No.450/95/2012-Cus.IV, dated 20-11-2012] 4.5 In order to prevent fraud Commissioners concerned shall develop a proper gate management system where Deputy / Assistant Commissioner of Customs, Docks / Import Shed and Deputy / Assistant Commissioner of Customs, Special Intelligence Investigation Branch (SIIB) would carry out surprise checks ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the supporting documents. For example, if the amendment of container number is required, a letter from shipping agent is required. On sufficient proof being shown to the Deputy/Assistant Commissioner amendment in Bill of Entry may be permitted after the goods have been given out of charge i.e. goods have been cleared. 8. Prior Entry for Bill of Entry: 8.1 For faster clearance of the goods, Section 46 of the Customs Act, 1962 allows filing of Bill of Entry prior to arrival of goods. This Bill of Entry is valid if vessel/aircraft carrying the goods arrives within 30 days from the date of presentation of Bill of Entry. This Bill of Entry has 5 copies, the fifth copy being called Advance Noting copy. The importer must declare that the vessel/aircraft is due within 30 days and present the Bill of Entry for final noting as soon as the IGM is filed. Advance noting is not available for Into- Bond Bill of Entry and also during certain special periods. 8.2 Often goods coming by container ships are transferred at intermediate ports (like Colombo) from mother vessel to smaller vessels called feeder vessels. At the time of filing of advance Bill of Entry, the importer does not know w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sent focus is on quality assessment, examination and Post Clearance Audit of selected Bills of Entry. 10.3 Bills of Entry and IGMs filed electronically in ICES through the Service Centre or the ICEGATE are transmitted by ICES to the RMS. The RMS processes the data through a series of steps and produces an electronic output for the ICES. This output determines whether a particular Bill of Entry will be taken-up for action (appraisement or examination or both) or be cleared after payment of duty and Out of Charge directly, without any assessment and examination. Also where necessary, RMS provides instructions for Appraising Officer, Examining Officer or the Out-of-Charge Officer. It needs to be noted that the appraising and examination instructions communicated by the RMS have be necessarily followed by the proper officer. It is, however, possible that in a few cases the proper officer might decide to apply a particular treatment to the Bill of Entry which is at variance with the instruction received from the RMS. This may happen due to risks which are not factored in the RMS. Such a course of action shall however be taken only with the prior approval of the jurisdictional Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ursement of drawback and other export incentives. 11.2 With the introduction of the RMS in exports, the practice of routine verification of self-assessment and examination of Shipping Bills has been discontinued and the focus is on quality assessment, examination and post clearance audit (PCA) of Shipping Bills selected by the RMS. 11.3 Shipping Bills filed electronically in ICES through the Service Centre or the ICEGATE will be processed by RMS through a series of steps/corridors and an electronic output will be produced for the ICES. This output from RMS will determine the flow of the Shipping Bill in ICES i.e. whether the Shipping Bill will be taken up for Customs control (verification of self-assessment or examination or both) or to be given Let Export Order directly after payment of Export duty (if any) without any verification of self-assessment or examination. The RMS will also provide instructions for Appraising Officer/Superintendent, Examining Officer/Inspector or the Let Export Order (LEO) Officer, wherever necessary. The decisions communicated by the RMS on the need for verification of self-assessment and/or examination and the appraising and examination instruc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns: (i) The RMD has the overall responsibility for designing, implementing and managing RMS using various risk parameters and risk management tools to address risks facing Customs, i.e., the potential for non-compliance with Customs and allied laws and security regulations, including risks associated with the potential failure to facilitate international trade. (ii) The RMD will suggest assessment and examination in respect of consignments perceived to be risky and facilitate the remaining ones. (iii) The RMD is responsible for collecting and collating information and developing an intelligence database to effectively implement the RMS and also carry out effective risk assessment, risk evaluation and risk mitigation techniques. It will update and maintain risk parameters in relation to the trade, commodities and all stakeholders associated or involved with the supply chain logistics. (iv) The RMD is the nodal agency for Accredited Client's Programme (ACP). It will maintain a list of accredited clients in the RMS and closely monitor their compliance standards. (v) The RMD will closely interact with all Custom Houses, Directorate of Revenue Intelligence (D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing implementation of ACP and PCA. (ii) Review risk parameters and behaviour of important risk indicators. (iii) Review economic trends, policies, duty rates, exemptions, market data etc. that adversely impact Customs functions and processes and suggest remedial action. [Refer Circulars No. 23/2007-Cus., dated 28-6-2007 and No. 39/2011-Cus., dated 2-9-2011] 14. Local Risk Management (LRM) Committee: 14.1 A Local Risk Management (LRM) Committee headed by Commissioner of Customs has been constituted in each Custom House / Air Cargo Complex / ICD, where RMS is operationalised. The LRM Committee comprises the Additional / Joint Commissioner in charge of Special Investigation and Intelligence Branch (SIIB), who is designated as the Local Risk Manager and includes the Additional / Joint Commissioner in charge of Audit and a nominee, not below the rank of a Deputy Director from the regional / zonal unit of the DRI, and a nominee, not below the rank of Deputy Director from the Directorate of Valuation, if any. The LRM Committee meets once every month and some of its functions are as follows: (i) Review trends in imports of major commodities and valuation with a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... porters who are also Central Excise assesses, paid Central Excise duties over ₹ 1 Crore from the Personal Ledger Account in the previous financial year, or they should be recognized as 'status holders' under the Foreign Trade Policy. (ii) They should have filed at least 25 Bills of Entry in the previous financial year in one or more Customs stations. (iii) They should have no cases of Customs, Central Excise or Service Tax, as detailed below, booked against them in the previous three financial years: (a) Cases of duty evasion involving mis-declaration/ mis-statement/collusion / wilful suppression / fraudulent intent whether or not extended period for issue of SCN has been invoked. (b) Cases of mis-declaration and/or clandestine/unauthorized removal of excisable / import / export goods warranting confiscation of said goods. (c) Cases of mis-declaration/ mis-statement/ collusion /wilful suppression/ fraudulent intent aimed at availing CENVAT credit, rebate, refund, drawback, benefits under export promotion/reward schemes. (d) Cases wherein Customs/Excise duties and Service Tax has been collected but not deposited with the exchequer. (e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding in adjudications and appeals shall be expeditiously finalized. Furthermore, in order to encourage greater participation in the ACP, the Risk Management Division (RMD) shall suo moto identify importers eligible for the ACP and approach them to enroll in the programme on 6-monthly basis. [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 and No.18/2014- Cus, dated 22-12-2014 ] 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ific 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 ₹ 1 lakh. 50% 10% D. Export under EPCG/DEEC schemes: S.No. Category of exports consignment FOB value involved Scale of Examination ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) involving export incentive of ₹ 1 lakh or less (Drawback) or in other cases having the FOB value upto ₹ 5 lakhs to the same country, the EDI system would alert the Examining Officer. The Examining Officer can then decide whether to subject the second consignment for examination or not. In case the buyer in both or more consignments happens to be the same person, subsequent consignments should be examined. 20.5 After the goods are presented for registration to Customs and determination has been made whether or not to examine the goods, no amendments in the normal course are expected. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts cargo. Accordingly, export consignments of perishable agricultural goods should not be examined in a routine manner and should be examined only in cases of specific intelligence with prior permission of concerned Assistant Commissioner/Deputy Commissioner of Customs. Such perishable cargo which is taken up for examination should be given Customs clearance on the same day itself. In the event there are contraventions of Customs law, necessary legal action shall be taken but, in this case too, it shall be ensured that the perishable cargo is dealt with in such a manner including grant of provisional release (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion and physical examination: 22.1 The check list and the declaration along with all original documents submitted with the Shipping Bill are retained by the Appraiser concerned. In case of any variation between the declaration in the Shipping Bill and physical documents/examination report, the Appraiser may mark the Electronic Shipping Bill to the Assistant Commissioner/Deputy Commissioner of Customs (Exports) along with sending the physical documents and instruct the exporter or his agent to meet the Assistant Commissioner/Deputy Commissioner of Customs (Exports) for settlement of dispute. In case 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... check list generated after filing of declaration can be made at the Service Centre provided the documents have not yet been submitted in the EDI system and the Shipping Bill number has not been generated. Where corrections are required to be made after the generation of the Shipping Bill number or after the goods have been brought into the Export Dock, the amendments will be carried out in the following manner: (i) If the goods have not yet been allowed Let Export the amendments may be permitted by the Assistant / Deputy Commissioner (Exports). (ii) Where the Let Export order has already been given, amendments 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns to Export Department. The exporter copy and the second copy of the SDF are returned to the exporter or his agent. 28. Export General Manifest: 28.1 All the shipping lines/agents need to furnish the Export General Manifests, Shipping Bill-wise, to the Customs electronically before departure of the conveyance. 28.2 Apart from lodging the EGM electronically the shipping lines need to continue to file manual EGMs along with the exporter copy of the Shipping Bills in the Export Department where they would be entered in a register. The shipping lines may obtain acknowledgement indicating the date and time at which the EGMs were 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. Calicut 8. Delhi 9. Goa 10. Hyderabad 11. Indore 12. Jaipur 13. Kolkata 14. Mumbai 15. Nashik 16. Thiruanantapuram 17. Vishakhapatnam [Refer Circulars No. 22/2012-Cus., dated 7-8-2012, No.19/2014- Cus. dated 31-12-2014 and Instruction F.No.450/25/2009-Cus 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 Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Intelligence Officer in the Directorate General of Revenue Intelligence and (i) Section 37; (ii) Section 100; Directorate General of Central Excise Intelligence. (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; (vi) Clause (a) of sub-section (2) of Section 45; (vii) Section 77; (viii) Section 94; (ix) Section 95; (x) Section 100; (xi) Section 103; (xii) Section 106; (xiii) Section 106A; (xiv) Sub-sections (1) and (3) of Section 110; (xv) Section 144; and (xvi) Section 145. [Refer Notifications No. 40/2012-Cus (NT), dated 2-5-2012 and No. 76/2012 - Cus (N.T.) dated 27-8-2012] 31.2 The fol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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