custom clearance(1)

7/29/2019 Custom Clearance(1)

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Presentation By :- Kunal Jadhav (M1225)


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CUSTOMS PROCEDURE :- Goods are imported in India or exported from India

through sea, air or land.

Goods can come through post parcel or as baggagewith passengers.

Procedures naturally vary depending on mode ofimport or export.


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IMPORTPROCEDURE:- 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


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Introduction :-

All goods imported into India have to pass through theprocedure of customs for proper examination,

appraisal, assessment and evaluation.

This helps the custom authorities to charge the propertax and also check the goods against the illegal import.

Also it is important to note that no import is allowedin India if the importer doesnt have the IEC numberissued by the DFGT.


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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 andpresented to a customhouse.

Amendment of Bill of Entry :-Whenever mistakes are noticed after submission of

documents, amendments to the bill of entry is carriedout with the approval of Deputy/AssistantCommissioner.


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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


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Payment of Customs Duty :- The duty can be debited to such current account,

or it can be paid in cash/DD through TR-6 challanin 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 ofentry prior to arrival of goods. This bill of entry is validif vessel/aircraft carrying the goods arrive within 30days from the date of presentation of bill of entry.


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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 entryis done in the same manner as the normal bill of entryand then the duty payable is determined.


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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 Manifestsubmitted by person in charge of vessel / carrier.

Prior Entry of Bill of Entry :-

Importer have cleared the goods usually 3 workingdays.

If not cleared then demurrage is charged by porttrust/airport authorities, which is very high.


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Assessment of Customs duty :-

Section 17 provides that assessment of goods will bemade 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 ofany law.


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VALUATION OF GOODS :-As per rule 10 of Customs Valuation Rules, the

importer has to file declaration about full 'value' ofgoods.

APPROVAL OF ASSESSMENT :-

The assessment has to be approved by Assistant

Commissioner, if the value is more than Rs one lakh.


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EXAMINATION OF GOODS :-

Examiners carry out physical examination andquantitative checking like weighing, measuring etc.Selected packages are opened and examined onsample basis in Customs Examination Yard.

Examination report is prepared by the examiner.


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Out of Customs Charge Order :-

After goods are examined, it is verified that import isnot 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.


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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


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Generation of Shipping Bills :-

For clearance of export goods, the exporter or export agenthas to undertake the following formalities:

Registration :-

Any exporter who wants to export his good need to obtainPAN based Business Identification Number (BIN) from theDirectorate General of Foreign Trade prior to filing ofshipping bill for clearance of export goods.

The exporters must also register themselves to theauthorised foreign exchange dealer code and open acurrent account in the designated bank for credit of any

drawback incentive.


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Registration in the case of export under

export promotion schemes: -

All the exporters intending to export under the exportpromotion scheme need to get their licences / DEEC booketc.

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 theShipping 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 ofdutiable goods and export under drawback etc.


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Processing of Shipping Bill - EDI:-

Under EDI System, declarations in prescribed formatare to be filed through the Service Centers of Customs.A checklist is generated for verification of data by theexporter/CHA.

After verification, the data is submitted to the System

by the Service Center operator and the Systemgenerates a Shipping Bill Number, which is endorsedon the printed checklist and returned to theexporter/CHA.
http://localhost/var/www/apps/conversion/tmp/Downloads/BRD-10-0248-RATNAVEER-DEEC-S-BILL-HAMBURG-WAGENER.dochttp://localhost/var/www/apps/conversion/tmp/Downloads/BRD-10-0248-RATNAVEER-DEEC-S-BILL-HAMBURG-WAGENER.dochttp://localhost/var/www/apps/conversion/tmp/Downloads/BRD-10-0248-RATNAVEER-DEEC-S-BILL-HAMBURG-WAGENER.dochttp://localhost/var/www/apps/conversion/tmp/Downloads/BRD-10-0248-RATNAVEER-DEEC-S-BILL-HAMBURG-WAGENER.dochttp://localhost/var/www/apps/conversion/tmp/Downloads/BRD-10-0248-RATNAVEER-DEEC-S-BILL-HAMBURG-WAGENER.dochttp://localhost/var/www/apps/conversion/tmp/Downloads/BRD-10-0248-RATNAVEER-DEEC-S-BILL-HAMBURG-WAGENER.doc


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Arrival of Goods at Docks:-

On the basis of examination and inspection goods areallowed enter into the Dock. At this stage the portauthorities check the quantity of the goods with thedocuments.

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 exporterswithout any human intervention. Sometimes the ShippingBill is also processed on screen by the Customs Officer.


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Customs Examination of Export Cargo:-

The Customs Officer may inspect/examine theshipment along with the Dock Appraiser. The CustomsOfficer 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 particularsentered in the system conform to the description givenin the original documents and as seen in the physicalexamination, he may proceed to allow "let export" forthe shipment and inform the exporter or his agent.


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Stuffing / Loading of Goods in Containers :-

The exporter or export agent hand over the exporterscopy of the shipping bill signed by the Appraiser LetExport" to the steamer agent. The agent then

approaches the proper officer for allowing theshipment.

The Customs Preventive Officer supervising theloading of container and general cargo in to the vesselmay give "Shipped on Board" approval on theexporters copy of the shipping bill.


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Drawal of Samples:-

Where the Appraiser Dock (export) orders for samplesto be drawn and tested, the Customs Officer mayproceed to draw two samples from the consignmentand enter the particulars thereof along with details ofthe testing agency in the ICES/E system.


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The disposal of the three copies of the test memo is as

follows:-

Original to be sent along with the sample to the testagency.

Duplicate Customs copy to be retained with the 2ndsample.

TriplicateExporters copy.

The Assistant Commissioner/Deputy Commissioner if heconsiders necessary, may also order for sample to be drawnfor purpose other than testing such as visual inspectionand verification of description, market value inquiry, etc.


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Amendments:-

Any correction/amendments in the check listgenerated after filing of declaration can be made at theservice center, if the documents have not yet been

submitted in the system and the shipping bill numberhas not been generated.

Generation of Shipping Bills:-

The Shipping Bill is generated by the system in twocopies- one as Custom copy and one as exporter copy.Both the copies are then signed by the Custom officerand the Custom House Agent.


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THANK YOU