In India
custom clearance is a complex and time taking procedure that every export face
in his export business. Physical control is still the basis of custom clearance
in India where each consignment is
manually examined in order to impose various types of export duties. High import
tariffs and multiplicity of exemptions and export promotion schemes also
contribute in complicating the documentation and procedures. So, a proper
knowledge of the custom rules and regulation becomes important for the exporter.
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. 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.
Quota Allocation
The quota allocation label is required to be pasted on the export invoice. The
allocation number of AEPC (Apparel Export Promotion Council) 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.
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:
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.
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. 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 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. In situations, where corrections are required to be made after the
generation of the shipping bill number or after the goods have been brought into
the Export Dock, amendments is carried out in the following manners.
- The goods have not yet been allowed "let export" amendments may be
permitted by the Assistant Commissioner (Exports).
- 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
without feeling any separate form.
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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