Export Procedure
⇒ Registration
⇒ Processing of Shipping Bill - Non-EDI
⇒ Processing of Shipping Bill - EDI
⇒ Octroi procedure, Quota Allocation and
Other certification for Export Goods
⇒ Arrival of Goods at Docks
⇒ System Appraisal of Shipping Bills
⇒ Status of Shipping Bill
⇒ Customs Examination of Export Cargo
⇒ Variation Between the Declaration &
Physical Examination
⇒ Amendments
⇒ Export of Goods Under Claim for Drawback
⇒ Generation of Shipping Bills
⇒ Export General Manifest
Registration:
The exporters have to obtain PAN based Business
Identification Number(BIN) from the Directorate General of Foreign Trade prior
to filing of shipping bill for clearance of export goods. Under the EDI System,
PAN based BIN is received by the Customs System from the DGFT online. The
exporters are also required to register authorised 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.o required
to register authorised 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.
Whenever
a new Airline, Shipping Line, Steamer Agent, port or airport comes into
operation, they are required to be registered into the Customs System.
Whenever, electronic processing of shipping bill etc. is held up on account of
non-registration of these entities, the same is to be brought to the notice of
Assistant/Deputy Commissioner in-charge of EDI System for registering the new
entity in the system.
Registration in the case of export under export
promotion schemes:
All the
exporters intending to export under the export promotion scheme need to get
their licences/DEEC book etc. registered at the Customs Station. For such
registration, original documents are required.
Processing of
Shipping Bill - Non-EDI:
Under
manual system, shipping bills or, as the case may be, bills of export are
required to be filed in format as prescribed in the Shipping Bill and Bill of
Export (Form) regulations, 1991. The bills of export are being used if
clearance of export goods is taken at the Land Customs Stations. Different
forms of shipping bill/bill of export have been prescribed for export of duty
free goods, export of dutiable goods and export under drawback etc.
Shipping
Bills are required to be filed along with all original documents such as
invoice, AR-4, packing list etc. The assessing officer in the Export Department
checks the value of the goods, classification under Drawback schedule in case
of Drawback Shipping Bills, rate of duty/cess where applicable, exportability
of goods under EXIM policy and other laws inforce. The DEEC/DEPB Shipping bills
are processed in the DEEC group. In case of DEEC Shipping bills, the assessing
officer verifies that the description of the goods declared in the shipping
bill and invoice match with the description of the resultant product as given
in the DEEC book. If the assessing officer has any doubts regarding value,
description of goods, he may call for samples of the goods from the docks. He
may also call for any other information required by him for processing of
shipping bill. He may assess the shipping bill after visual inspection of the
sample or may send it for test and pass the shipping bill provisionally.
Once, the shipping bill is passed by the Export
Department, the exporter or his agent present the goods to the shed appraiser
(export) in docks for examination. The shed appraiser may mark the document to
a Custom officer (usually an examiner) for examining the goods. The examination
is carried out under the supervision of the shed appraiser (export). If the
description and other particulars of the goods are found to be as declared, the
shed appraiser gives a ?let export? order, after which the exporter may contact
the preventive superintendent for supervising the loading of goods on to the
vessel.
In case the examining staff in the docks finds some
discrepancy in the goods, they may mark the shipping bill back to export
department/DEEC group with their observations as well as sample of goods, if
needed. The export department re-considers the case and decide whether export
can be allowed, or amendment in description, value etc. is required before
export and whether any other action is required to be taken under the Customs
Act, 1962 for mis-declaration of description of value etc.
Processing of Shipping
Bill - EDI:
Under EDI System, declarations in prescribed format
are to be filed through the Service Centers of Customs. A checklist is
generated for verification of data by the exporter/CHA. After verification, the
data is submitted to the System by the Center operator and the System generates
a Shipping Bill Number, which is endorsed on the printed checklist and returned
to the exporter/CHA. For export items which are subject to export cess, the
TR-6 challans for cess is printed and given by the Service Center to the
exporter/CHA immediately after submission of shipping bill. The cess can be
paid on the strength of the challan at the designated bank. No copy of shipping
bill is made available to exporter/CHA at this stage.
Octroi procedure,
Quota Allocation and Other certification for Export Goods:
The quota allocation label is required to be pasted on
the export invoice. The allocation number of AEPC is to be entered in the
system at the time of shipping bill entry. The quota certification of export
invoice needs to be submitted to Customs along-with other original documents at
the time of examination of the export cargo. For determining the validity date
of the quota, the relevant date needs to be the date on which the full
consignment is presented to the Customs for examination and duly recorded in
the Computer System. In EDI System at Delhi Air cargo, the quota information is
automatically verified from the AEPC/TEXPROCIL system.
Since the shipping bill is generated only after the
'let export order' is given by Customs, the exporter may make use of export
invoice or such other document as required by the Octroi authorities for the
purpose of Octroi exemption.
Arrival of Goods at
Docks:
The goods brought for the purpose of examination and
subsequent 'let export' is allowed entry to the Dock on the strength of the
checklist and other declarations filed by the exporter in the Service Center.
The Port authorities have to endorse the quantity of goods actually received on
the reverse of the Check List.
System Appraisal of
Shipping Bills:
In many cases the Shipping Bill is processed by the
system on the basis of declarations made by the exporters without any human
intervention. In other cases where the Shipping Bill is processed on screen by
the Customs Officer, he may call for the samples, if required for confirming
the declared value or for checking classification under the Drawback Schedule.
He may also give any special instructions for examination of goods, if felt
necessary.
Status of Shipping
Bill:
The exporter/CHA can check up with the query counter
at the Service Center whether the Shipping Bill submitted by them in the system
has been cleared or not, before the goods are brought into the Docks for
examination and export. In case any query is raised, the same is required to be
replied through the service center or in case of CHAs having EDI connectivity
through their respective terminals. The Customs officer may pass the Shipping
Bill after all the queries have been satisfactorily replied to.
Customs Examination
of Export Cargo:
After the receipt of the goods in the dock, the
exporter/CHA may contact the Customs Officer designated for the purpose present
the check list with the endorsement of Port Authority and other declarations as
aforesaid along with all original documents such as, Invoice and Packing list,
AR-4, etc. Customs Officer may verify the quantity of the goods actually
received and enter into the system and thereafter mark the Electronic Shipping
Bill and also hand over all original documents to the Dock Appraiser of the
Dock who many assign a Customs Officer for the examination and intimate the
officers? name and the packages to be examined, if any, on the check list and
return it to the exporter or his agent.
The Customs Officer may inspect/examine the shipment
along with the Dock Appraiser. The Customs Officer enters the examination
report in the system. He then marks the Electronic Bill along with all original
documents and check list to the Dock Appraiser. If the Dock Appraiser is
satisfied that the particulars entered in the system conform to the description
given in the original documents and as seen in the physical examination, he may
proceed to allow "let export" for the shipment and inform the
exporter or his agent.
Variation Between
the Declaration & Physical Examination:
The check list and the declaration along with all
original documents is 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). He
may also forward the physical documents to Assistant Commissioner/Deputy
Commissioner of Customs (Exports) 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 principles of natural
justice is required to be followed before finalisation of the issue.
Stuffing /
Loading of Goods in Containers
The exporter or his agent should hand over the
exporter copy of the shipping bill duly signed by the Appraiser permitting
"Let Export" to the steamer agent who may then approach the proper
officer (Preventive Officer) for allowing the shipment. In case of container
cargo the stuffing of container at Dock is dome under Preventive Supervision.
Loading of both containerized and bulk cargo is done under Preventive
Supervision. The Customs Preventive Superintendent (Docks) may enter the
particulars of packages actually stuffed in to the container, the bottle seal
number particulars of loading of cargo container on board into the system and
endorse these details on the exporter copy of the shipping bill presented to
him by the steamer agent. If there is a difference in the quantity/number of
packages stuffed in the containers/goods loaded on vessel the Superintendent
(Docks) may put a remark on the shipping bill in the system and that shipping
bill requires amendment or changed quantity. Such shipping bill also may not be
taken up for the purpose of sanction of Drawback/DEEC logging, till the
shipping bill is suitably amended for the changed quantity. The Customs
Preventive Officer supervising the loading of container and general cargo in to
the vessel may give "Shipped on Board" endorsement on the exporters
copy of the shipping bill.
Drawal of Samples:
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/E system. There is no separate register for
recording dates of samples drawn. Three copies of the test memo are prepared by
the Customs Officer and are 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 are 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.
The
Assistant Commissioner/Deputy Commissioner if he considers necessary, may also
order for sample to be drawn for purpose other than testing such as visual
inspection and verification of description, market value inquiry, etc.
Amendments:
Any correction/amendments in the check list generated
after filing of declaration can be made at the service center, provided, the
documents have not yet been submitted in the system and the shipping bill
number has not been generated. Where corrections are required to be made after
the generation of the shipping bill No. or after the goods have been brought
into the Export Dock, amendments is carried out in the following manners.
i) If the
goods have not yet been allowed "let export" amendments may be permitted
by the Assistant Commissioner (Exports).
ii) Where
the "Let Export" order has already been given, amendments may be
permitted only by the Additional/Joint Commissioner, Custom House, in charge of
export section.
In both
the cases, after the permission for amendments has been granted, the Assistant
Commissioner/Deputy Commissioner (Export) may approve the amendments on the
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.
Export of Goods
Under Claim for Drawback:
After actual export of the goods, the Drawback claim
is processed through EDI system by the officers of Drawback Branch on first
come first served basis. There is no need for filing separate drawback claims.
The status of the shipping bills and sanction of DBK claim can be ascertained
from the query counter set up at the service center. If any query has been
raised or deficiency noticed, the same is shown on the terminal. A print out of
the query/deficiency may be obtained by the authorized person of the exporter
from the service center. The exporters are required to reply to such queries
through the service center. The claim will come in queue of the EDI system only
after reply to queries/deficiencies are entered by the \Service Center
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. Bank
may send a fortnightly statement to the exporters of such credits made in their
accounts.
The Steamer Agent/Shipping Line may transfer
electronically the EGM to the Customs EDI system so that the physical export of
the goods is confirmed, to enable the Customs to sanction the drawback claims.
Generation of
Shipping Bills:
After the "let export" order is given on the
system by the Appraiser, the Shipping Bill is generated by the system in two
copies i.e., one Customs copy, one exporter?s copy (E.P. copy is generated
after submission of EGM). After obtaining the print out the appraiser obtains
the signatures of the Customs Officer on the examination report and the
representative of the CHA on both copies of the shipping bill and examination
report. The Appraiser thereafter signs & stamps both the copies of the
shipping bill at the specified place.
The Appraiser also signs and stamps the original &
duplicate copy of SDF. Customs copy of shipping bill and original copy of the
SDF is retained along with the original declarations by the Appraiser and
forwarded to Export Department of the Custom House. He may return the exporter
copy and the second copy of the SDF to the exporter or his agent.
As regards the AEPC quota and other certifications,
these are retained along with the shipping bill in the dock after the shipping
bill is generated by the system. At the time of examination, apart from
checking that the goods are covered by the quota certifications, the details of
the quota entered into the system needs to be checked.
Export General
Manifest:
All the shipping lines/agents need to furnish the
Export General Manifests, Shipping Bill wise, to the Customs electronically
within 7 days from the date of sailing of the vessel.
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 as per the present practice in the export department. The manual
EGMs need to be entered in the register at the Export Department and the
Shipping lines may obtain acknowledgements indicating the date and time at
which the EGMs were received by the Export Department.
The above is the general procedure for export under
EDI Systems. However special procedures exist for specified schemes, details of
which may be obtained from the Public Notice/Standing Orders issued by the
respective Commissionerates.
1. Arrival of goods and procedures prior to
lodgement of goods
a)
Conveyances to call only at Notified Customs Ports / Airports
b) Power to
board conveyance, to question and to demand documents
c) Delivery
of Import Manifest
d) General
Conditions
e) Amendments
f) Penal
Liability
g) Entry
Inwards
h) Enclosures
to Import General Manifest
i) Procedure
for filing IGM at Custom Houses operating EDI service centres
j) Filing of
Stores List
k) Unloading
and Loading of Goods
l) Other
liabilities of carriers
2. Procedure for clearance of Imported Goods
a) Bill of Entry - Declaration
b) Assessment
c) EDI Assessment
d) Examination of Goods
e) Green Channel facility
f) Payment of Duty
g) Amendment of Bill of Entry
h) Prior Entry for Bill of Entry
i) Mother Vessel/Feeder vessel
j) Specialised Schemes
k) Bill of Entry for Bond/Warehousing
>> Conveyances
to call only at Notified Customs Ports / Airports:
Customs Act, 1962, envisages that only places notified
by the Government shall be Customs ports or Customs airports for the unloading
of imported goods and loading of export goods. At each such customs ports, the
Commissioner of Customs is empowered to approve proper places for the unloading
and loading of goods and he also specifies the limits of any Customs area. The
law further provides that the person in charge of the vessel or an aircraft
shall not call or land at any place other than the Customs port/airport, except
in cases of emergencies.
Back to top
>> Power
to board conveyance, to question and to demand documents :
Section 37 empowers the proper officer to board any
conveyance carrying imported goods or export goods. He may remain on board as
long as he decides to remain. The proper officer may question the person in
charge of the vessel or aircraft. He may demand production of documents and
also ask questions, to be answered by such person. The person in charge of the
conveyance is bound to comply with these requirements [Section 38].
>> Delivery
of Import Manifest: :
The Master / Agent of the vessel or an aircraft has to
deliver an import manifest (an import report in case of a vehicle), within 24
hours after arrival in the case of a vessel and 12 hours after arrival in the
case of an aircraft or a vehicle in the prescribed form. The time limit for
filing the manifest is extendable on showing sufficient cause. In the case of a
vessel or an aircraft, a manifest may also be filed even before arrival of the
vessel or aircraft (known as Prior Entry Manifest). In the case of vessels, for
administrative convenience, such advance manifests are accepted on any day
within 14 days before the expected arrival of the vessel.
If the vessel does not arrive within the stipulated
time of 14 days or such extended time as may be granted by the Assistant Commissioner
(Imports), the manifest accepted provisionally is cancelled and the fact
circulated through public notices. All the Bills of Entry filed against the
cancelled manifest, become void. The importers have to return those Bills of
Entry to the Import Department and to claim refund of duty, if paid on any such
Bills of Entry. If the same vessel enters the port after the cancellation of
the original manifests, it will be treated as a fresh entry and a fresh
manifest is insisted upon
>> General
conditions: :
A person filing declarations under this section has to
declare the truthfulness of contents. This declaration has legal consequences,
which bind the carrier. [Section 30(2)].
>> Amendments:
:
If for any reason, the carrier desires to amend or
supplement the IGM, it will be permitted by the proper officer on payment of
prescribed fees, if he is satisfied that there is no fraudulent intention
behind the move. [Section 30(3)].
>> Penal
Liability: :
Any mis-declaration in this document will attract the
penal provisions of Section 111(f) and Section 112.
>> Penal
Liability: :
Any mis-declaration in this document will attract the
penal provisions of Section 111(f) and Section 112.
(a) Excision from IGMs of items originally manifested:
(a)Excision from I.G.Ms of items originally manifested
are permitted only:
(i)On application in writing from the ship’s Agents;
(ii)On production of the documentary evidence of short
shipment of goods;
(iii)On payment of a fee as prescribed.
(b)(i)Excisions or amendments of items in the Import
Manifest involving reduction in number of Packages:
An application from the steamer agents for excisions
or amendments in the Import Manifest involving reduction in the number of
packages or quantity or weight thereof, should be submitted with the connected
documentary evidence. Such excisions or amendments will only be allowed; if
after due investigation, it is proved that the excess quantity was originally
shown in the import manifest as a result of an error. In the absence of such
proof, the application will be kept over for being dealt with by the Manifest
Clearance Section at the time of closure of the ship’s file.
(ii)Applications for the excision or amendments of
items for which Bills of Entry have been noted will be dealt with by the
Manifest Clearance Section if made two months after the arrival of the vessel.
Matters such as the number of copies of manifests to
be filed, nature of forms, manner of declaring cargo etc. are governed by the
following Regulations:
(i)Import Report (Form) Regulation, 1976;
(ii)Import Manifest (Aircraft) Regulation, 1976; and
(iii)Import Manifest (Vessels) Regulation, 1971;
Generally speaking, the above Regulations stipulate
declaring separately cargo to be landed, unaccompanied Baggage, goods to be
transported and same bottom or retention cargo. Separate declarations are also
to be filed in respect of dangerous/prohibited/ sensitive goods such as Arms
and Ammunitions, Narcotics, Gold etc. The prime condition in the Regulations is
that the manifest shall cover all the goods carried in the conveyance.
In respect of a vessel, an import manifest shall, in
addition, consist of an application for entry inwards.
>> Entry
Inwards: :
The Master of the vessel is not to permit the
unloading of any imported goods until an order has been given by the proper
officer granting Entry Inwards of such vessel. Normally, Entry Inwards is
granted only after the import manifest has been delivered. This entry inward
date is crucial for determining the rate of duty, as provided in section 15 of
the Customs Act, 1962. Unloading of certain items like accompanied baggage,
mail bags, animals, perishables and hazardous goods are exempted from this
stipulation.
>> Enclosures
to Import General Manifest: :
The amendment made in 1995 (w.e.f. 1-7-1995)
introduces a new form for obtaining entry inwards. The forms are designed
according to IMO-FAL Convention. The forms have to be filed in prescribed sizes
only. Host of enclosures are sought along with these forms. This practice has
its origin in other statutes such as Merchant Shipping Act, 1880. However,
keeping the said convention in view, Board has issued instructions dispensing
with submission of various documents. The following declarations have, however,
to be filed along-with IGM:
(a)Deck Cargo Declaration / Certificate.
(b)Last port clearance copy.
(c)Amendment application (when relevant).
(d)Income Tax Certificate in case of Export Cargo.
(e)Nil export cargo certificate.
(f)Port Trust "No Demand" certificate.
(g)Immigration certificate.
(h)Application for sign on/sign off of crew (when
relevant).
(i)Application for crew baggage chceking when they
sign on (When relevant).
>> Procedure
for filing IGM at Custom Houses operating EDI service centres: :
(i) IGM by
Shipping lines:
The shipping line/steamer agent needs to submit the
manifest in prescribed form at the Service Centre. The shipping lines are
required to submit the electronic version of the Import General manifest in
floppies, containing all the details and particulars. It is to be ensured by
the Shipping Lines that all the particulars and details of the Import general
manifest submitted either manually or through floppies are correct. The
shipping agents who do not have arrangement for data in floppy, may approach
the Service Center of Customs and get the data of IGM submitted in system. They
are also to ensure that details of House Bill of Lading are also incorporated
in the IGM in case of consol cargo.
On arrival of the vessel, the shipping line needs to
approach the Preventive officer for granting entry inwards. Before making the
application, the shipping line has to make payment of the Light House dues.
In case the shipping line is filing an IGM after
arrival of the vessel, the procedure as mentioned above for prior IGM, is to be
followed except that the date of arrival of vessel is also indicated. After
submission, the shipping line has to approach the proper officer for grant of
entry inwards in the system.
(ii) IGM by
Air:
The airlines are required to file IGM in prescribed
format. In case of Air Cargo Complexes having EDI, the IGMs may be filed
through electronic mode. The IGMs to be submitted need to contain all details
and particulars. In other words, the airlines would not only be furnishing the
details of the Master Airway Bills but also the House Airway bills in the case
of console cargo. The airlines are also to furnish the additional information,
namely, the ULD Nos. for use by the custodians.
>> Filing
of Stores List: :
When entering any port, all ships are required to
furnish to the Commissioner of Customs, a list (or nil return) of ships stores
intended for landing (excluding any consumable stores issued from any dutified
shops in. Retention on board of imported stores is governed by Import Store
(Retention on board) Regulations, 1963. The consumable stores can remain on
board without payment of import duties during the period the vessel/Aircraft
remains foreign going. Otherwise, such consumable stores are to be kept under
Customs seal. Even in respect of foreign going vessels, only the stores
required for immediate use of the personnel may be left unsealed. Excessive
stocks of stores such as liquor, tobacco, cigarettes, etc are kept under
Customs seal.
>> Unloading
and Loading of Goods: :
Imported goods are not to be unloaded from the vessel
until Entry Inwards is granted. No imported goods are to be unloaded unless
they are specified in the import manifest/report for being unloaded at that
Customs station. No imported goods shall be unloaded at any place other than
the places provided for such unloading. Further, imported goods shall not be
unloaded from any conveyance except under the supervision of the proper
officer. Similarly, for unloading imported goods on any Sunday or on any
holiday, prior notice shall be given and fees prescribed in this regard shall
be paid.
>> Other
liabilities of carriers: :
Under Section 115 and 116, the persons in charge of
vessel or aircraft have other liabilities, which are important and noteworthy.
Section 115 provides for confiscation of vessel or other conveyance under the
following circumstances:
(a)A conveyance within Indian waters or port or
customs area which is adopted, fitted, modified or altered for concealing
goods.
(b)A conveyance from which goods are thrown overboard,
staved or destroyed so as to prevent seizure by customs officers.
(c)A conveyance which disobeys any order under Section
106 to stop or land, without sufficient cause.
(d)A conveyance from which goods under drawback claim
are unloaded without proper officer’s permission.
(e)A conveyance which has entered with goods, from
which substantial portion of goods are missing and failure of the master to
account therefor.
Any vessel when used as means of transport for
smuggling of any goods or in the carriage of any smuggled goods, is liable to
confiscation, unless the owner establishes that it was used without the
knowledge or connivance of the owner, his agent and the person in-charge of the
vessel. When any such conveyance is confiscated, an option to pay redemption
fine has to be given to the owner of the conveyance. The upper limit for
imposing the redemption fine is the market value of impugned goods.
Under Section 116, penalty may be imposed on the
person incharge of vessel if there is failure to account for all goods loaded
in the vessel for importation into India or transhipped under the provisions of
Customs Act and these are not unloaded at the place of destination in India or
if the quantity unloaded is short of the quantity to be unloaded at particular
destination. Penalty may be waived if failure to unload or deficiency in
unloading is accounted for to the satisfaction of competent officer. Thus, if
there is any shortage which is not satisfactorily accounted for, the person
incharge of the vessel will be liable to penalty, which may be twice the duty
payable on the import goods not accounted for.
PROCEDURE FOR CLEARANCE OF IMPORTED GOODS
>> Bill
of Entry - Cargo Declaration: :
Goods imported in a vessel/aircraft attract customs
duty and unless these are not meant for customs clearance at the port/airport
of arrival by particular vessel/aircraft and are intended for transit by the
same vessel/aircraft or transhipment to another customs station or to any place
outside India, detailed customs clearance formalities of the landed goods have
to be followed by the importers. In regard to the transit goods, so long as
these are mentioned in import report/IGM for transit to any place outside,
Customs allows transit without payment of duty. Similarly for goods brought in
by particular vessel/aircraft for transhipment to another customs station
detailed customs clearance formalities at the port/airport of landing are not
prescribed and simple transhipment procedure has to be followed by the carrier
and the concerned agencies. The customs clearance formalities have to be
complied with by the importer after arrival of the goods at the other customs
station. There could also be cases of transhipment of the goods after unloading
to a port outside India. Here also simpler procedure for transhipment has been
prescribed by regulations, and no duty is required to be paid. (Sections 52 to
56 of the Customs are relevant in this regard)
For other goods which are offloaded importers have the
option to clear the goods for home consumption after payment of the duties
leviable or to clear them for warehousing without immediate discharge of the
duties leviable in terms of the warehousing provisions built in the Customs
Act. Every importer is required to file in terms of the Section 46 an entry
(which is called Bill of entry) for home consumption or warehousing in the
form, as prescribed by regulations.
\ Refer Circular No. 15/2009-Cus Dated 12/5/2009
If the goods are cleared through the EDI system no
formal Bill of Entry is filed as it is generated in the computer system, but
the importer is required to file a cargo declaration having prescribed
particulars required for The Bill of entry, where filed, is to be submitted in
a set, different copies meant for different purposes and also given different
colour scheme, and on the body of the bill of entry the purpose for which it
will be used is generally mentioned in the non-EDI declaration.
The importer clearing the goods for domestic
consumption has to file bill of entry in four copies; original and duplicate
are meant for customs, third copy for the importer and the fourth copy is meant
for the bank for making remittances.
In the non-EDI system alongwith the bill of entry
filed by the importer or his representative the following documents are also
generally required:-
Signed invoice
Packing list
Bill of Lading or Delivery Order/Airway Bill
GATT declaration form duly filled in
Importers/CHA’s declaration
License wherever necessary
Letter of Credit/Bank Draft/wherever necessary
Insurance document
Industrial License, if required
Test report in case of chemicals
Adhoc exemption order
Catalogue, Technical write up, Literature in case of
machineries, spares or chemicals as may be applicable
Separately split up value of spares, components
machineries
Certificate of Origin, if preferential rate of duty is
claimed
No Commission declaration
While filing the bill of entry and giving various
particulars as prescribed therein the correctness of the information given 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, and due precautions should be taken by importer while signing
these declarations.
Under the EDI system, the importer does not submit
documents as such for assessment 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-repudiability of the declaration. A checklist is generated for verification
of data by the importer/CHA. After verification, the data is submitted to the
system by the Service Centre Operator and system then generates a B/E Number,
which is endorsed on the printed checklist and returned to the importer/CHA. No
original documents are taken at this stage. Original documents are taken at the
time of examination. The importer/CHA also need to sign on the final document
after Customs clearance.
The first stage for processing a bill of entry is what
is termed the noting of the bill of entry, vis-à-vis, the IGM filed by the
carrier. In the non-EDI system the importer has to get the bill of entry noted
in the concerned unit which checks the consignment sought to be cleared having
been manifested in the particular vessel and a bill of entry number is
generated and indicated on all copies. After noting the bill of entry gets sent
to the appraising section of the Custom House for assessment functions, payment
of duty etc. In the EDI system, the Steamer Agents get the manifest filed
through EDI or by using the service centre of the Custom House and the noting
aspect is checked by the system itself – which also generates bill of entry
number.
After noting/registration of the Bill of entry, it is
forwarded manually or electronically to the concerned Appraising Group in the
Custom House dealing with the commodity sought to be cleared. Appraising Wing
of the Custom House has a number of Groups dealing with earmarked commodities
falling under different Chapter Headings of the Customs Tariff and they take up
further scrutiny for assessment, import permissibility etc. angle.
>> Assessment:
:
The basic function of the assessing officer in the
appraising groups is to determine the duty liability taking due note of any
exemptions or benefits claimed under different export promotion schemes. They
have also to check whether there are any restrictions or prohibitions on the
goods imported and if they require any permission/license/permit etc., and if
so whether these are forthcoming. Assessment of duty essentially involves
proper classification of the goods imported in the customs tariff having due
regard to the rules of interpretations, chapter and sections notes etc., and
determining the duty liability. It also involves correct determination of value
where the goods are assessable on ad valorem basis. The assessing officer has
to take note of the invoice and other declarations submitted alongwith the bill
of entry to support the valuation claim, and adjudge whether the transaction
value method and the invoice value claimed for the basis of assessment is
acceptable, or value needs to be redetermined having due regard to the
provisions of Section 14 and the valuation rules issued thereunder, the case
law and various instructions on the subject. He also takes note of the
contemporaneous values and other information on valuation available with the
Custom House.
Where the appraising officer is not very clear about
the description of the goods from the document or as some doubts about the
proper classification which may be possible only to determine after detailed
examination of the nature of the goods or testing of its samples, he may give
an examination order in advance of finalisation of assessment including order
for drawing of representative sample. This is done generally on the reverse of
the original copy of the bill of entry which is presented by the authorized
agent of the importer to the appraising staff posted in the Docks/Air Cargo
Complexes where the goods are got examined in the presence of the importer’s
representative.
On receipt of the examination report the appraising
officers in the group assesses the bill of entry. He indicates the final
classification and valuation in the bill of entry indicating separately the
various duties such as basic, countervailing, anti-dumping, safeguard duties
etc., that may be leviable. Thereafter the bill of entry goes to Assistant
Commissioner/Deputy Commissioner for confirmation depending upon certain value
limits and sent to comptist who calculates the duty amount taking into account
the rate of exchange at the relevant date as provided under Section 14 of the
Customs Act.
After the assessment and calculation of the duty
liability the importer’s representative has to deposit the duty calculated with
the treasury or the nominated banks, whereafter he can go and seek delivery of
the goods from the custodians.
Where the goods have already been examined for
finalization of classification or valuation no further examination/checking by
the dock appraising staff is required at the time of giving delivery and the
goods can be taken delivery after taking appropriate orders and payment of dues
to the custodians, if any.
In most cases, the appraising officer assessees the
goods on the basis of information and details furnished to the importer in the
bill of entry, invoice and other related documents including catalogue,
write-up etc. He also determines whether the goods are permissible for import
or there are any restriction/prohibition. He may allow payment of duty and
delivery of the goods on what is called second check/appraising basis in case
there are no restriction/prohibition. In this method, the duties as determined
and calculated are paid in the Custom House and appropriate order is given on
the reverse of the duplicate copy of the bill of entry and the importer or his
agent after paying the duty submits the goods for examination in the import
sheds in the docks etc., to the examining staff. If the goods are found to be
as declared and no other discrepancies/mis-declarations etc., are detected, the
importer or his agent can clear the goods after the shed appraiser gives out of
charge order.
Wherever the importer is not satisfied with the
classification, rate of duty or valuation as may be determined by the
appraising officer, he can seek an assessment order. An appeal against the
assessment order can be made to appropriate appellate authority within the time
limits and in the manner prescribed.
>> EDI
Assessment: :
In the EDI system of handling of the
documents/declarations for taking import clearances as mentioned earlier the cargo
declaration is transferred to the assessing officer in the groups
electronically.
\The assessing officer processes the cargo declaration
on screen with regard to all the parameters as given above for manual process.
However in EDI system, all the calculations are done by the system itself. In
addition, the system also supplies useful information for calculation of duty,
for example, when a particular exemption notification is accepted, the system
itself gives the extent of exemption under that notification and calculates the
duty accordingly. Similarly, it automatically applies relevant rate of exchange
in force while calculating. Thus no comptist is required in EDI system. If
assessing officer needs any clarification from the importer, he may raise a
query. The query is printed at the service centre and the party replies to the
query through the service centre.
After assessment, a copy of the assessed bill of entry
is printed in the service centre. Under EDI, documents are normally examined at
the time of examination of the goods. Final bill of entry is printed after ‘out
of charge’ is given by the Custom Officer.
\In EDI system, in certain cases, the facility of
system appraisal is available. Under this process, the declaration of importer
is taken as correct and the system itself calculates duty which is paid by the
importer. In such case, no assessing officer is involved.
Also, a facility of tele-enquiry is provided in
certain major Customs stations through which the status of documents filed through
EDI systems could be ascertained through the telephone. If nay query is raised,
the same may be got printed through fax in the office of importer/exporter/CHA.
>> Examination
of Goods: :
All imported goods are required to be examined for
verification of correctness of description given in the bill of entry. However,
a part of the consignment is selected on random selection basis and is
examined. In case the importer does not have complete information with him at
the time of import, he may request for examination 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, the
goods are examined prior to assessment. This is called First Appraisement. The
importer has to request for first check examination at the time of filing the
bill of entry or at data entry stage. The reason for seeking First Appraisement
is also required to be given. On original copy of the bill of entry, the
Customs Appraiser records the examination order and returns the bill of entry
to the importer/CHA with the direction for examination, who is to take it to
the import shed for examination of the goods in the shed. Shed Appraiser/Dock
examiner examines the goods as per examination order and records his findings.
In case group has called for samples, he forwards sealed samples to the group.
The importer is to bring back the said bill of entry to the assessing officer
for assessing the duty. Appraiser assesses the bill of entry. It is
countersigned by Assistant/Deputy Commissioner if the value is more than Rs. 1
lakh.
The goods can also be examined subsequent to
assessment and payment of duty. This is called Second Appraisement. Most of the
consignments are cleared on second appraisement basis. It is to be noted that
whole of the consignment is not examined. Only those packages which are
selected on random selection basis are examined in the shed.
Under the EDI system, the bill of entry, after
assessment by the group or first appraisement, as the case may be, need to be
presented at the counter for registration for examination in the import shed. A
declaration for correctness of entries and genuineness of the original
documents needs to be made at this stage. After registration, the B/E is passed
on to the shed Appraiser for examination of the goods. Along-with the B/E, the
CHA is to present all the necessary documents. After completing examination of
the goods, the Shed Appraiser enters the report in System and transfers first
appraisement B/E to the group and gives 'out of charge' in case of already
assessed Bs/E. 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. The two copies each of B/E and
the order are to be returned to the CHA/Importer, after the Appraiser signs
them. One copy of the order is attached to the Customs copy of B/E and retained
by the Shed Appraiser.
>> Green
Channel facility: :
Some major importers have been given the green channel
clearance facility. It means clearance of goods is done without routine
examination of the goods. They have to make a declaration in the declaration
form at the time of filing of bill of entry. The appraisement is done as per
normal procedure except that there would be no physical examination of the
goods. Only marks and number are to be checked in such cases. However, in rare
cases, if there are specific doubts regarding description or quantity of the
goods, physical examination may be ordered by the senior officers/investigation
wing like SIIB.
>> Execution
of Bonds: :
Refer Circular No. 9/2007-Cus Dated 7/2/2007
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.
>> Payment
of Duty: :
The duty can be paid in the designated banks or
through TR-6 challans. Different Custom Houses have authorised different banks
for payment of duty. 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.
>> Amendment
of Bill of Entry: :
Whenever mistakes are noticed after submission of
documents, amendments to the of entry is carried out with the approval of
Deputy/Assistant Commissioner. The request for amendment may be submitted with
the supporting documents. For example, if the amendment of container number is
required, a letter from shipping agent is required. Amendment in document may
be permitted after the goods have been given out of charge i.e. goods have been
cleared on sufficient proof being shown to the Deputy/Assistant Commissioner.
>> Prior
Entry for Bill of Entry: :
For faster clearance of the goods, provision has been
made in section 46 of the Act, to allow filing of bill of entry prior to
arrival of goods. This bill of entry is valid if vessel/aircraft carrying the
goods arrive within 30 days from the date of presentation of bill of entry.
\The importer is to file 5 copies of the bill of entry
and the fifth copy is called Advance Noting copy. The importer has to declare
that the vessel/aircraft is due within 30 days and they have to present the
bill of entry for final noting as soon as the IGM is filed. Advance noting is
available to all imports except for into bond bill of entry and also during the
special period.
>> Mother
Vessel/Feeder vessel: :
Often in case of goods coming by container ships they
are transferred at an intermediate ports (like Ceylon ) from mother vessel to
smaller vessels called feeder vessels. At the time of filing of advance noting
B/E, the importer does not know as to which vessel will finally bring the goods
to Indian port. In such cases, the name of mother vessel may be filled in on
the basis of the bill of lading. On arrival of the feeder vessel, the bill of
entry may be amended to mention names of both mother vessel and feeder vessel.
>> Specialised
Schemes: :
The import of goods are made under specialised schemes
like DEEC or EOU etc. The importer in such cases is required to execute bonds
with the Customs authorities for fulfillment of conditions of respective
notifications. If the importer fails to fulfill the conditions, he has to pay
the duty leviable on those goods. The amount of bond would be equal to the
amount of duty leviable on the imported goods. The bank guarantee is also
required alongwith the bond. However, the amount of bank guarantee depends upon
the status of the importer like Super Star Trading House/Trading House etc.
>> Bill
of Entry for Bond/Warehousing: :
A separate form of bill of entry is used for clearance
of goods for warehousing. All documents as required to be attached with a Bill
of Entry for home consumption are also required to be filed with bill of entry
for warehousing. The bill of entry 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 of the goods, the purpose of assessing the goods at this
stage is 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 on which the goods are
actually removed from the warehouse.
(References: Bill of Entry (Forms) Regulations, 1976,
ATA carnet (Form Bill of Entry and Shipping Bill) Regulations, 1990 ,Uncleared
goods (Bill of entry) regulation, 1972, , CBEC Circulars No. 22/97, dated
4/7/1997, 63/97, dated 21/11/1997).