Custom Clearance
Custom Clearance
Custom Clearance
with passengers.
Procedures naturally vary depending on mode of
import or export.
Introduction : All goods imported into India have to pass through the
tax and also check the goods against the illegal import. Also it is important to note that no import is allowed in India if the importer doesnt have the IEC number issued by the DFGT.
statement of the nature and value of goods to be imported or exported, prepared by the shipper and presented to a customhouse.
documents, amendments to the bill of entry is carried out with the approval of Deputy/Assistant Commissioner.
Required Documents :
Signed invoice Packing list Bill of Lading or Delivery Order/Airway Bill GATT declaration form duly filled in Importers/ CHAs declaration License wherever necessary Letter of Credit/Bank Draft/wherever necessary Insurance document Import license Industrial License, if required Test report in case of chemicals Adhoc exemption order DEEC Book/DEPB in original 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
Payment of Customs Duty : The duty can be debited to such current account, or it can be paid in cash/DD through TR-6 challan in designated banks. Prior Entry for Shipping Bill or 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.
Specialized Schemes : Import of goods under specialized scheme, DEEC, EOU etc , required to execute bonds with the custom authorities.
Bill of Entry for Bond/Warehousing: A separate form of bill of entry is used for clearance of
goods for warehousing. Assessment of this bill of entry is done in the same manner as the normal bill of entry and then the duty payable is determined.
Agent is cross-checked with Import Manifest submitted by person in charge of vessel / carrier. Prior Entry of Bill of Entry : Importer have cleared the goods usually 3 working days. If not cleared then demurrage is charged by port trust/airport authorities, which is very high.
Assessment of Customs duty : Section 17 provides that assessment of goods will be made after Bill of Entry is filed.
Appraising The Goods :- Appraiser has to
(a) correctly classify the goods (b) decide the Value for purpose of Customs duty (c) find out rate of duty applicable as per any exemption notification and, (d)verify that goods are not imported in violation of any law.
EXAMINATION OF GOODS :-
quantitative checking like weighing, measuring etc. Selected packages are opened and examined on sample basis in Customs Examination Yard.
Examination report is prepared by the examiner.
Out of Customs Charge Order : After goods are examined, it is verified that import is
not prohibited and after customs duty is paid, Customs Officer will issue Out of Customs Charge order under section 47.
Demurrage if goods not cleared : Heavy demurrage is payable if goods are not cleared
Generation of Shipping Bills :For clearance of export goods, the exporter or export agent has to undertake the following formalities:
Registration : Any exporter who wants to export his good need 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.
The exporters must also register themselves to the
authorised foreign exchange dealer code and open a current account in the designated bank for credit of any drawback incentive.
Processing of Shipping Bill - Non-EDI: In case of Non-EDI, the shipping bills or bills of export are
required to be filled in the format as prescribed in the Shipping Bill and Bill of Export (Form) regulations, 1991. bill of export for export of duty free goods, export of dutiable goods and export under drawback 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 Service Center operator and the System generates a Shipping Bill Number, which is endorsed on the printed checklist and returned to the exporter/CHA.
allowed enter into the Dock. At this stage the port authorities check the quantity of the goods with the documents.
System Appraisal of Shipping Bills: In most of the cases, a Shipping Bill is processed by the
system on the basis of declarations made by the exporters without any human intervention. Sometimes the Shipping Bill is also processed on screen by the Customs Officer.
Customs Examination of Export Cargo: The Customs Officer may inspect/examine the shipment along with the Dock Appraiser. The Customs Officer enters the examination report in the system & 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.
Stuffing / Loading of Goods in Containers : The exporter or export agent hand over the exporters
copy of the shipping bill signed by the Appraiser Let Export" to the steamer agent. The agent then approaches the proper officer for allowing the shipment. The Customs Preventive Officer supervising the loading of container and general cargo in to the vessel may give "Shipped on Board" approval 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.
follows:agency.
Original to be sent along with the sample to the test Duplicate Customs copy to be retained with the 2nd
sample.
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.
generated after filing of declaration can be made at the service center, if the documents have not yet been submitted in the system and the shipping bill number has not been generated. Generation of Shipping Bills: The Shipping Bill is generated by the system in two
copies- one as Custom copy and one as exporter copy. Both the copies are then signed by the Custom officer and the Custom House Agent.
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