CUSTOM PROCEDURE
CUSTOMS
PROCEDURE :-
Goods are imported in India or exported from
India through sea, air or land.
Goods can come through post parcel or as
baggage with passengers.
Procedures naturally vary depending on
mode of import or export.
IMPORT PROCEDURE :-
Introduction
Bill of Entry
Amendment of Bill of Entry
Payment of Duty
Prior Entry for Shipping Bill or Bill of Entry
Specialized Schemes
Bill of Entry for Bond/Warehousing
Introduction :-
All goods imported into India have to pass
through the procedure of customs for proper
examination, appraisal, assessment and
evaluation.
This helps the custom authorities to charge
the proper 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 doesn’t have the IEC number
issued by the DFGT.
Bill of Entry :-
A Bill of Entry also known as Shipment Bill, is
a statement of the nature and value of goods
to be imported or exported, prepared by the
shipper and presented to a customhouse.
Amendment of Bill of Entry :-
Whenever mistakes are noticed after
submission of 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/ CHA’s 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
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.
ASSESSMENT OF IMPORT DUTY AND
CLEARANCE :-
Noting of Bill of Entry :-
Bill of Entry submitted by importer or
Customs House 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.
VALUATION OF GOODS :-
As per rule 10 of Customs Valuation Rules,
the importer has to file declaration about full
'value' of goods.
APPROVAL OF ASSESSMENT :-
The assessment has to be approved by
Assistant Commissioner, if the value is more
than Rs one lakh.
EXAMINATION OF GOODS :-
Examiners carry out physical examination
and 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 from port within three days.
EXPORT PROCEDURE:-
Registration
Processing of Shipping Bill
Arrival of Goods at Docks
System Appraisal of Shipping Bills
Customs Examination of Export Cargo
Stuffing / Loading of Goods in Contaoners
Drawls of Samples
Amendments
Export of Goods under Claim for Drawback
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.
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.
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.
An exporter need to apply different forms of shipping bill/
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.
Arrival of Goods at Docks:-
On the basis of examination and inspection goods are
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
exporter’s 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 exporter’s 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.
The disposal of the three copies of the test memo
is as follows:-
Original – to be sent along with the sample to the test
agency.
Duplicate – Customs copy to be retained with the 2nd
sample.
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, 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.
THANK
YOU
