Export Procedure Short Indian Customs

Export Procedures

NO STOPPAGE OF EXPORT CONSIGNMENT – export consignment will not be interrupted or withheld for any reason whatsoever. Customs authorities may ask sole risk undertaking.

Procedures by person in charge of conveyance –
Airline, shipping line, steamer agent to be registered in Customs Systems for electronic processing of shipping bills etc.
Entry Outward -Loading can start only after ‘Entry Outward” is granted. (section 39 of Customs Act).
Steamer Agents can file ‘application for entry outwards’ 14 days in advance so that intending exporters can start submitting ‘Shipping Bills’.
Export goods loaded only after Shipping Bill or Bill of Export, passed by Customs Officer is handed over by Exporter to the person-in-charge of conveyance.
Not necessary for baggages and mail bags, but permission of Customs Officer is required (section 40).

Export Manifest -section 41, an Export Manifest/Export Report [popularly  ‘Export General Manifest’ – EGM] in prescribed form should be submitted before departure.
Such manifest/report can be amended or supplemented with permission, if there was no fraudulent intention.
Such report should be declared as true by the person-in-charge signing the export manifest. Not required for occupents luggage.

Procedures to be followed by Exporter – Export procedures have been summarized in Chapter 3 Part II of CBE&C’s Customs Manual, 2001.
Every exporter should take following initial steps -–
Obtain BIN (Business Identification Number) from DGFT. It is a PAN based number
Open current account with designated bank for credit of duty drawback claims
Register licenses / advance license / DEPB etc. at the customs station, if exports are under Export Promotion Schemes
Exporter has to submit ‘shipping bill’ for export by sea or air and ‘bill of export’ for export by road.
Goods have to be assessed for duty ( ‘Nil Duty’ assessment is also an assessment!).

Shipping Bill to be submitted by Exporter -Shipping Bill and Bill of Export Regulations prescribe form of shipping bills.
It should be submitted in quadruplicate. If drawback claim is to be made, one additional copy should be submitted.
There are five forms : Appropriate form of shipping bill should be used.
(a) Shipping Bill for export of goods under claim for duty drawback – these should be in Green colour
(b) Shipping Bill for export of dutiable goods – this should be yellow colour
(c) shipping bill for export of duty free goods – it should be white colour
(d) shipping bill for export of duty free goods ex-bond – i.e. from bonded store room – it should be pink colour
(e) Shipping Bill for export under DEPB scheme – Blue colour.
The shipping bill form requires details like name of exporter, consignee, Invoice Number, details of packing, description of goods, quantity, FOB Value etc.

Relevant documents i.e. copies of packing list, invoices, export contract, letter of credit etc. are also to be submitted.
In case of excisable goods, from ARE-1 prepared at the time of clearance from factory should also be submitted.

Customs authorities give serial number (called ‘Thoka Number’) to shipping bill, when it is presented.

Excise formalities at the time of Export –
If the goods are cleared by manufacturer for export, the goods are accompanied by ARE-1 (earlier AR-4). Customs Officer certifies export.
This form has then to be submitted to Maritime Commissioner for obtaining ‘proof of export’.
The bond executed by Manufacturer-exporter with excise authorities is released only when ‘proof of export’ is accepted by Maritime Commissioner or Assistant Commissioner, where bond was executed.

Duty drawback formalities -If the exporter intends to claim duty drawback on his exports, he has to follow prescribed procedures and submit necessary papers.
The procedures are discussed in the chapter on ‘Export Incentives’.
Make endorsement of shipping bill that claim for duty drawback is being made. For its failures on genuine reasons, Commissioner of Customs can grant exemption [rule 12(1)(a) of DDBK Rules].

G R / SDF / SOFTEX Form under FEMA -Reserve Bank of India has prescribed GR / SDF form under FEMA.
Guaranteed Receipt(GR) form, while SDF stands for ‘Statutory Declaration Form’.
SDF form used where shipping bills are processed electronically in customs house, while GR form is used when shipping bills are processed manually in customs house.

Other documents required for export -Exporter also has to prepare other documents like
(a) Four copies of Commercial Invoice
(b) Four copies of Packing List
(c) Certificate of Origin or pre-shipment inspection where required
(d) Insurance policy.
(e) Letter of Credit
(f) Declaration of Value
(g) Excise ARE-1/ARE-2 form as applicable
(h) GR / SDF form prescribed by RBI in duplicate
(i) Letter showing BIN Number.

RCMC certificate from Export Promotion Council -Various Export Promotion Councils have been set up to promote and develop exports.
(e.g. Engineering Export Promotion Council, Apparel Export Promotion Council, etc.) Exporter has to become member of the concerned Export Promotion Council and obtain RCMC – Registration cum membership Certificate.

Check in customs – Document submitted is processed by customs authorities, and following are checked -Chapter 3 Para 39 of CBE&C’s Customs Manual, 2001. –
Value and classification of goods under drawback schedule in case of drawback shipping bills Export duty / cess if applicable
Advance License shipping bills are checked to ensure that description in invoice and final product specified in Advance License matches.
If necessary, samples may be drawn and assessment may be done after visual inspection or testing Exportability of goods under EXIM policy and other laws –
Some exports are totally prohibited under various Acts e.g. items restricted or prohibited under Foreign Trade (Regulation) Act; antiques; art treasures; Arms;
narcotics etc. Some items like tea, coffee and coir products can be exported only against authorisation/licence under respective Acts.

Examination of goods before export -After shipping bill is passed by export department, the goods are presented to shed appraiser (exports) in dock for examination.
Goods will be examined by examiner. This inspection is necessary to
(a) to ensure that prohibited goods are not exported
(b) goods tally with description and invoice
(c) duty drawback, where applicable, is correctly claimed.

Let Export Order by Customs Authorities -Customs Officer verify contents and satisfy that goods are not prohibited for exports and that export duty, if applicable is paid, will permit clearance. (section 51) by giving ‘let ship’ or ‘let export’ order.

GR-1, ARE-1, octroi papers, quota certification for export etc. are also signed.
Exporter’s copy of shipping Bill, GR-1, ARE-1 etc. duly certified are handed over to exporter or CHA.
Drawback claims papers are also processed. – Chapter 3 Para 43 and 60 of CBE&C’s Customs Manual, 2001.

Processing under EDI system – Under EDI system, declarations in prescribed form are to be filed through ‘Service Centre’ of customs.
After verification, shipping bill number is generated by the system, which is endorsed on printed checklist generated for verification of data.
Goods are inspected at docks on the basis of printed check list. All documents are submitted to Customs Officer along with checklist.
If goods and documents are found in order, ‘let export’ order is issued.
Then two copies of Shipping Bill are generated – one customs and other exporter’s copy.
Exporter’s copy is generated only after EGM (Export General Manifest) is submitted by shipping agent.
These are signed by CHA and customs officer and then by Appraiser. SDF, ARE1, octroi papers, quota certification for export etc. are also signed.
Exporter’s copy of Shipping Bill, SDF, ARE1 etc. duly signed are handed over to exporter or CHA. – Chapter 3 Paras 42 to 60 of CBE&C’s Customs Manual, 2001.

Conveyance to leave on written order -Vessel or aircraft which has brought imported goods or which carry export goods cannot leave customs station without written order Such order is given only after
(a) export manifest is submitted
(b) shipping bills or bills of export, bills of transhipment etc.are submitted
(c) duties on stores consumed are paid or payment of the same is secured
(d) no penalty is leviable
(e) export duty, if applicable, is paid. – – Such permission is not required if the conveyance is carrying only luggage of occupants.

Other Customs Procedures
Besides the aforesaid procedures, various other procedures have been prescribed. These are mainly to be followed by the person in charge of conveyance.

Boat Notes -If the vessel has to unload only a small cargo, it may not spend time in having berth in the port. The small cargo is sent to shore loaded in a small boat. As per section 35, such small boat must be accompanied by a ‘Boat Note’. Boat Notes Regulations provide that such Boat Notes will be issued by Customs Officer.
It will be maintained in duplicate and should be serially numbered. Boat Note should be in prescribed form.

In case of export, if small export cargo is to be loaded in ship through small boat, no Boat Note is required if the cargo is accompanied by the ‘Shipping Bill’,
Boat Note is also required for transhipment of cargo, i.e. transfer from one ship to another or for re-shipment.

Transit Goods -Section 53 – goods transited without payment of customs duty, to any place out of India or any customs station. Such goods must be mentioned in import manifest or import report submitted by person in charge of conveyance(ship/Vehicle/plane). Such goods should not be ‘prohibited goods’ under section 11 of Customs Act.  On arrival at destinaiton customs station, the goods will be liable to customs duty as if it is first importation in India. – section 55.

Transhipment of Goods [one conveyance or mode to another] -Goods imported in any customs station can be transhipped without payment of duty, u/s 54 of Customs Act.
Such transhipment may be to any major port or airport in India and the goods can be transhipped to any other customs station in India if customs officer is satisfied that the goods are bonafide intended for transhipment to any customs station. The facility is available at all customs ports and Inland Container Depots (ICDs).

Goods to be transhipped must be specified in Import Manifest or Import report and a ‘Bill of Transhipment’ should be submitted to Customs Officer.
Under international treaty or bilateral agreement with foreign country, a Declaration of Transhipment submitted instead of Bill of Transhipment. [s 54(1)]. [eg Nepal].

Such goods should not be ‘prohibited goods’ under section 11 of Customs Act. The goods should be sealed during transhipment by customs officer.
A bond has to be executed for the purpose. After execution of bond, a certificate from customs officer has to be submitted within one month that goods have been properly transferred.
[Goods Imported (Conditions of Transhipment) Regulations, 1995]. On arrival at customs station, they will be liable to customs duty as if it is first importation in India. – section 55.

TRANSIT AND TRANSHIP – ‘transit’ goods continue to be on same vessel, while in transhipment, goods are transferred to another vessel / vehicle. different procedures.

COASTAL GOODS -Coastal goods means goods transported from one port in India to another port in India, excluding imported goods.
No export or import is involved, but control is necessary to ensure that coastal goods are not diverted illegally for export.

LOADING OF COASTAL GOODS – The Consignor submit bill of coastal goods to Customs Officer (section 93) in prescribed form.
These will be loaded by master of vessel only after ‘bill of coastal goods’ is passed (section 93) and will carry an ‘Advice Book’ where entries will be made by Customs Officer.
This ‘Advice Book’ has to be presented for inspection of Customs Officers, if called for.
After loading, the vessel can leave only after obtaining written order from Customs Officer.
As per notification No 15/98-NT dated 27.2.1998, exemption has been granted for delivery of ‘Advice Book’ at each port of call.
However, the ‘Advice Book’ will have to be submitted for inspection on board of vessel, when called for.

UNLOADING OF COASTAL GOODS – Unloading of coastal goods only at Customs Port or coastal port appointed by CBEC under section 7 of Customs Act.
On arrival, all bills relating to goods which are to be unloaded will be delivered to Customs Officer. Unloading only after obtaining permission from Customs Officer.
Customs Officer can inspect goods and ask for questions and documents relating to goods. Goods will be unloaded at approved place under supervision of Customs Officer.


Import Procedure shot Indian customs

Procedure for Import and Export

ENTRY – ‘Entry’ : an entry made in a Bill of Entry, Shipping Bill or Bill of Export. It includes
(a) label or declaration accompanying the goods which contains description, quantity and value of the goods, in case of postal articles u/s 82
(b) Entry to be made in case of goods to be exported
(c) Entry in respect of goods imported which are not accompanied by label or declaration made as per provisions of section 84.[section 2(16)].

AMENDMENT TO DOCUMENTS -Importer, exporter or ‘Person In charge’ have to submit documents to customs authorities like Bill of Entry, Import Manifest, Export Manifest etc.
Document modification only with prior permission [section 149] for reasons like change in classification, clerical mistake, change in unloading/ loading plan of vessel.
In case of bill of entry, shipping bill or bill of export, amendment after clearance only on the basis of documentary evidence which was in existence when goods were cleared, warehoused or exported, and not on basis of any subsequent document.

Customs Station – defined : Imported goods unloading permitted only at specified places. Similarly, export permitted only from specified area.
Customs area means all area of Customs Station and includes any area where imported goods or export goods are ordinarily kept pending clearance by Customs authorities.
Customs Station means (a) customs port (b) inland container depot (c) customs airport and (d) land customs station.

Section 7 of Customs Act empowers CBEC (Board) to appoint * Customs ports * Customs airports * Places for ICD’s * Coastal ports by issuing a notification.
Section 8 authorises Commissioner of Customs to approve proper places for unloading and loading of goods and specify the limits of customs area.

Import Procedures

‘person-in-charge of conveyance’ as well as the importer procedures.(section 2(31),vessel master;air commander; train guard; vehicle I/c/driver.
The significant definition for responsiblety for -submitting Import Manifest and Export Manifest ; follow approved route and lands at approved place only.
-goods are unloaded/loaded after written order, at proper place. -conveyance does not leave without written order of Customs authorities.
He can be penalised for (a) Giving false declaration and statement (b) shortages or non-accounting of goods in conveyance.
The ‘person in charge of conveyance’ (carrier of goods) has to follow prescribed procedure.
-Arrival at customs port/airport only -U/Section 29 entering India shall call or land at customs port or customs airport only.
-Landing at other place only in emrgency of accident, stress of weather or other unavoidable cause and report to nearest police station or Customs Officer.
-While arriving by land route, the vehicle should come by approved route to ‘land customs station’ only.
Import Manifest/ Report/IGM – Person-in-charge of vessel, aircraft or vehicle has to submit Import Manifest / Report. [termed as IGM – Import General Manifest].
(In case of a vessel or aircraft -> called import manifest, For Vehicles, it is called import report.) Section 30(1)
– IMPORT MANIFEST TO BE SUBMITTED BEFORE ARRIVAL OF AIRCRAFT OR VESSEL. Import report (for vehicle) to be submitted within 12 hours of arrival at the customs station.
Penality for Delay:  person-in-charge  upto Rs 50,000. Condoned if the excise officer is satisfied about sufficiency of cause for the delay. [section 30(1)].
Normally, Agents submit before arrival of vassal/aircraft and complete maximum formalities. They thus also file ‘Bill of Entry’ in advance.

Grant of “Entry Inwards” by Customs Officer for Unloading of cargo. Date significant applicable customs duty. Granted only when berthing accommodation is granted
Carrier responsible for shortages during unloading –
If the goods are short landed, the carrier is liable to pay penalty upto twice the amount of duty payable on such short landed goods.
Tally sheet prepared by Port Trust authorities on unloading of goods is a statutory document and  accepted in preference to steamer survey.

Procedures for Importers -The importer importing the goods has to follow prescribed procedures for import by ship/air/road.
Bill of Entry -This is a very vital and important document which every importer has to submit under section 46 in prescribed form.
(The standard size is 16″ × 13″ and 15″ × 12″ for computerised BoE vide Mumbai Customs No. 142/93 dated 3-1193).
Bill of Entry in quadruplicate – original and duplicate for customs, triplicate for the importer and fourth copy is meant for bank for making remittances.
Under EDI system, Bill of Entry is actually printed on computer in triplicate only after ‘out of charge’ order is given. Duplicate copy is given to importer.
WHITE   BILL OF ENTRY FOR HOME CONSUMPTION  -cleared on payment of full duty.
YELLOW  BILL OF ENTRY FOR WAREHOUSING -(INTO BOND CLEARANCE) -store the goods in warehouse without payment of duty under a bond.
GREENBILL OF ENTRY FOR EX-BOND CLEARANCE -for clearance from warehouse on payment of duty. [goods already classified and value assessed but duty rate of day].
BIN on Bill of Entry – 15 digit (includes 10 digit PAN) BIN (Business Identification Number) allotted to importer and exporter w.e.f. 1.4.2001. (earlier IE Code)
Filing of Bill of Entry -Normally filed by CHA on behalf of the importer. Electronic filing at computerised port through Customs EDI.
Procedure vide Bill of Entry (Electronic Declaration) Regulations, 1995.

Documents to be submitted by Importer -Documents to enable customs to (a)check the goods (b)decide value and classification of goods and (c)import legally permitted.
The documents that are essentially required are :
(i) Invoice
(ii) Packing List
(iii) Bill of Lading / Delivery Order
(iv) GATT declaration form duly filled in
(v) Importers / CHAs declaration duly signed
(vi) Import Licence or attested photocopy when clearance is under licence
(vii) Letter of Credit / Bank Draft wherever necessary
(vii) Insurance memo or insurance policy
(viii) Industrial License if required
(ix) Certificate of country of origin, if preferential rate is claimed.
(x) Technical literature.
(xi) Test report in case of chemicals
(xii) Advance License / DEPB in original, where applicable
(xiii) Split up of value of spares, components and machinery
(xiv) No commission declaration.
– A declaration in prescribed form about correctness of information.– Chapter 3 Para 6 and 7 of CBE&C’s Customs Manual,2001.

The Noting is now done electronically in large ports,  manually noting in small ports. Thoka Number (Serial Number) is given while noting the Bill of Entry.

Electronic submission under EDI system –
Formal submission of Bill of Entry is not required, as it is generated in computer system.
Importer should submit declaration in electronic format to ‘Service Centre’.
A signed paper copy of declaration for non-repudiability should be submitted.
Bill of Entry number is generated by system which is endorsed on printed check list.
Original documents are to be submitted only at the stage of examination.
Assessment of Duty and Clearance
The documents submitted by importer are checked and assessed by Customs authorities and then goods are cleared.
Section 2(2) defines ‘assessment’ as follows – ‘Assessment’ includes provisional assessment, reassessment and any order of assessment in which the duty assessed is Nil.

Noting of Bill of Entry -Bill of Entry submitted by importer or CHA is cross-checked with ‘Import Manifest’ submitted by person in charge of vessel / carrier.
‘Noting’ really means taking on record by customs officer. Relevant for determining rate of customs duty.
Thoka number (serial number) is given in the import section. Otherwise, it is returned for clarifications. In EDI system, noting and entry number done by system itself.

Date of presentation of bill of entry is highly relevant for rate of duty.

Bill of Entry is accepted only after proper scrutiny vis-a-vis import manifest and various declarations given in bill of entry and attached documents like invoice, bill of lading etc. Else the authorities can refuse to accept the Bill of Entry, and hence submission of such incomplete Bill of Entry cannot be taken as date of presentation of Bill of Entry – Simla Agencies v. CC 1993 (63) ELT 248 (CEGAT).

Prior Entry of Bill of Entry -After the goods are unloaded, these have to be cleared within stipulated time usually three working days.
If these are not so removed, demurrage is charged by port trust/airport authorities, which is very high.
Hence, importer complete as many formalities as possible before ship arrives. Section 46(3) of Customs Act allows importer to present bill of entry upto 30 days before expected date of arrival of vessel. In such case, duty will be payable at the rate applicable on the date on which ‘Entry Inward’ is granted to vessel and not the date of presentation of Bill of Entry, but rate of exchange will be as prevalent on date of submission of bill of entry. – confirmed in CC, New Delhi circular No 64/96 dated 10.12.1996 and CBE&C circular No 22/97-Cus dated 4.7.1997.

Assessment of Customs duty -Section 17 provides that assessment of goods will be made after Bill of Entry is filed.
Date stamp of receipt is put on the ‘Bill of Entry’ and then it is sent to appraising department either manually or electronically

There are various Appraising groups for different Chapter headings. Each group is under an Assistant/Deputy Commissioner. Group consists of ‘Examiners’ and ‘Appraisers’.

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.
He can call for any further documents that may be required for assessment.
and if required, issue an examination order, usually on the reverse of Bill of Entry. If such order is issued,
the Bill of Entry is presented to appraising staff at docks / air cargo complexes, where the goods are examined in presence of importer’s representative.
Assessment is finalised after getting the report of examination. – Chapter 3 Para 11 and 12 of CBE&C’s Customs Manual, 2001.

VALUATION OF GOODS – As per rule 10 of Customs Valuation Rules, the importer has to file declaration about full ‘value’ of goods.
If the assessing officer has doubts about the truth and accuracy of ‘value’ as declared, he can ask importer to submit further information, details and documents.
If the doubt persists, the assessing officer can reject the value declared by importer. [rule 10A(1) of Customs Valuation Rules].
If the importer requests, the assessing officer has to give reasons for doubting the value declared by importer. [rule 10A(2)].
If the value declared by importer is rejected, the assessing officer can value imported goods on other basis e.g. value of identical / similar goods etc.
[amendment w.e.f. 19.2.98, as per WTO MF(DR) circular No. 16/2003-Cus dated 17-3-2003. Burden of proof on department to not arbitrarily reject/ increase value.

APPROVAL OF ASSESSMENT – For value over Rs One lakh to be approved by Asst.Commissioner. ( Cases covered under ‘fast track clearance -appraiser authorised)
After the approval, duty payable is typed by a “pin-point typewriter” so that it cannot be tampered with. As per CBE&C circular No. 10/98-Cus dated 11-2-1998, Assessing Officer should sign in full in Bill of Entry followed by his name, preferably by rubber stamp.

EDI ASSESSMENT – In the EDI system, the cargo declaration is transferred to assessing officer in the groups electronically. Screen Processing. Calculations by system.
If assessing officer needs clarification, he can raise a query. The query is printed at service centre and importer replies through service centre.
Facility of tele-enquiry about status of documents is provided in major customs stations.
Under EDI, normally, documents are inspected only after assessment. After assessment, copy of Bill of Entry is printed at service centre.
Final Bill of Entry is printed only after ‘Out of Charge’ order is given by customs officer. – Chapter 3 Para 18 to 22 of CBE&C’s Customs Manual, 2001.

PAYMENT OF CUSTOMS DUTY -After assessment of duty, duty is paid. Regular importers/CHA keep PDA. Duty debited to such PDA account, or in cash/DD through TR-6 challan.

After payment of duty, if goods were already examined, delivery of goods can be taken from custodians (port trust) after paying their dues.
If goods were not examined before assessment, these have to be submitted for examination in import shed to the examining staff.
After shed appraiser gives ‘out of charge’ order, delivery of goods can be taken from custodian.

First and second system of assessment -There are two systems of assessment.
Section 17(2) provides for assessment after examination of goods
Section 17(4) provides for assessment on basis of documents, followed by inspection and testing of goods.

“First appraisement system” or ‘first check procedure’ is followed if the appraiser is not able to make assessment on the basis of documents submitted and deems that inspection is necessary. Goods are examined first and then these are assessed. This method is followed only if assessment is not possible on basis of documents. – -The importer himself may also request ‘first check procedure’, if he cannot give all required details regarding description / value of goods. He has to make request for first check examination at the time of filing of Bill of Entry or at data entry stage in case of EDI. He has to give reason for seeking first appraisement. The examination order is recorded on Bill of Entry and then returned to importer / CHA. It is then presented to import shed for examination. The shed appraiser / Dock examiner examines the goods as per examination order and records his findings. If samples are required, they are taken out. In case of EDI
system, the report of examination is given in the computer itself. The goods are then assessed to duty by appraiser. – Chapter 3 Para 23 of CBE&C’s Customs Manual, 2001.

In “Second Appraisement System” or ‘second check procedure’, which is normally followed, assessment is done on basis of documents and then goods are examined.
Such examination is not mandatory. It is done on selective basis on the basis of ‘risk assessment’ or specific intelligence report. Section 17(4) of Customs Act specifically provides that if initially assessment is done on basis of documents, re-assessment can be done after examination or testing of goods or otherwise, if it is found subsequent to examination or testing or otherwise, that any statement made on Bill of Entry or any information supplied is not true in respect of matter relevant to assessment of duty.

First appraisement is generally carried out in following cases – * If complete documents are not submitted *
Goods are to be tested for correct classification * Goods are re-imported * Goods are damaged or deteriorated and abatement is claimed * Goods are abandoned and remission of duty is applied for * When goods are provisionally assessed * When importer himself requests for examination of goods before payment of duty.

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.

Accelerated Clearance of Imports and Exports Scheme (ACS) – MF(DR) circular No. 30/2003-Cus dated 4-4-2003 on trial at Sahar (Mumbai), ICD/TKD and Chennai Port.
Importer will himself determine classification of goods including claim for exemption benefits. Computer System will calculate the duty based on his declaration.
Physical inspection done by risk-assessment and management techniques on a computer based system and not on the orders of customs examining staff. Audit of import documents will not be by existing system of concurrent audit but will be done by post-clearance audit, as prevalent in developed countries.

In case of imports, the scheme will be open to all status holders under EXIM policy, Central and State Government PSUs and other importers who have been importing for at least two years and have filed at least 25 Bills of Entry in preceding year. – –

In case of exports, the scheme open to all status holders under EXIM policy, EOU/STP/EHTP units whose goods have been sealed in presence of customs/excise officers,
Central and State Government PSUs, manufacturer-exporters who have been exporting for at least two years and have filed at least 25 Shipping Bills in preceding year and bulk exporters. – – Certain sensitive items have been excluded from the provisions.
Importer/exporter intending to avail this facility has to make application to Commissioner. The clearances will be subject to post clearance audit.

Provisional Assessment -Section 18 of Customs Act, 1962 provide that provisional assessment can be done in following cases
(a) when Customs Officer is satisfied that importer or exporter is unable to produce document or furnish information required for assessment
(b) it is deemed necessary to carry out chemical or other tests of goods
(c) when importer/exporter has produced all documents, but Customs Officer still deems it necessary to make further enquiry.

The importer/exporter has to furnish guarantee/security as required by Customs Officer for payment of difference if any.
Goods can be cleared after payment of duty provisionally assessed and after providing the security.
After final assessment, difference is paid by importer or refunded to him as the case may be.
If the imported goods were warehoused after provisional assessment, the Customs Officer may require importer to execute a bond for twice the
difference in duty, if duty finally assessed is higher [section 18(2)(a)]. The bond is called as ‘P D Bond’ (Provisional Duty Bond).
The bond is with security or surety. Bank guarantee can also be given as a security.

Checking of duty drawback / license documents -Documents in respect of Duty Entitlement Pass Book (DEPB), advance license, duty drawback etc. will be checked.

Execution of bond and payment of duty -Once the duty is assessed, the bill of entry is returned to importer.
The Bill of Entry should be presented to comptist for calculation and pinpointing of the duty. If bond has to be executed, it will be taken in bond section.

Payment of duty – If goods are to be removed to a warehouse under bond, duty payment is not required. Payment required If goods are to be removed for home consumption.
Large importers and CHA have P.D. accounts with customs. (provisional duty account. is a current account, similar to PLA in central excise.)
The importer or CHA pays lump sum amount in the account and can pay customs duty by debiting the amount in P.D. (Provisional Duty) account.
If no PDA account, he can pay duty by cash using TR-6 challan.
The duty to be paid within five working days after the ‘Bill of Entry’ is returned to the importer otherwise interest payable. [section 47(2)].
Such interest can be between 10% to 36% as may be notified by Central Government. [Section 47(2) of Customs Act, 1962.]. Interest rate is 15% w.e.f. 13-5-2002.

Disposal if goods are not cleared within 30 days after unloading -section 48 of Customs Act. Customs Officer can grant extension.
Else goods can be sold after giving notice to importer.
However, animals, perishable goods and hazardous goods can be sold any time – even before 30 days. Arms & ammunition sold only with permission of Central Government.

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. Goods can be cleared from customs area only on receipt of such order. An ‘adjudicating order’ of Customs Act, even if it is passed by Appraiser.

Demurrage if goods not cleared -Heavy demurrage is payable if goods are not cleared from port within three days.

Import of software through data communication – ??? MF(DR) circular No. 58/2000-Cus dated 10-7-2000.

Relevant Date for Rate and Valuation of Customs Duty – Section 15
duty and tariff valuation shall be one of the following dates.
(a) if the goods are entered for home consumption, the date on which bill of entry is presented
(b) in case of warehoused goods, when Bill of Entry for home consumption is presented u/s 68 for clearance from warehouse and
(c) in other cases, date of payment of duty.