Import and Export Process in India, Customs Manual 2023

 

Customs Manual 2023, Import procedures and Export Procedures in India

 

Procedure for Clearance of Imported and Export

Goods

1. Introduction:

1.1 The imported goods before clearance for home consumption or for warehousing are required to

comply with prescribed Customs clearance formalities. This includes presentation of a Bill of Entry

containing details such as description of goods, value, quantity, exemption notification, Customs

Tariff Heading etc. The Bill of Entry is subject to verification by the proper officer of Customs (under

self-assessment scheme) and may be reassessed if declarations are found to be incorrect.

Normally import declarations made are scrutinized with reference to documents and other

information about the value / classification etc., without prior examination of goods. It is at the time

of clearance of goods that these are examined by the Customs to confirm the nature of goods,

valuation and other aspects of the declarations. However, it may be noted that examination of

goods is carried out only after facilitation level is decided by the Risk Management System. In

case no discrepancies are observed at the time of examination of goods 'Out of Charge' order is

issued and thereafter the goods can be cleared. Similarly, Customs clearance formalities for goods

meant for export have to be fulfilled by presenting a Shipping Bill and other related documents.

These documents are verified for correctness of assessment and after examination of the goods,

if warranted, “Let Export Order” is given on the Shipping Bill.

2. Import procedure - Bill of Entry:

2.1 Goods imported into the country attract Customs duty and are also required to confirm to relevant

and corresponding legal requirements. Thus, unless the imported goods are not meant for

Customs clearance at the port/airport of arrival such as those intended for transit by the same

vessel/aircraft or transshipment to another Customs station or to any place outside India, detailed

Customs clearance formalities have to be followed by the importers. In contrast, in terms of Section

52 to 56 of the Customs Act, 1962, the goods mentioned in the IGM or Import Report for transit to

any place outside India or meant for transshipment to another Customs station in India are allowed

transit without payment of duty. In case of goods meant for transshipment to another Customs

station, simple transshipment procedure has to be followed by the carrier and the concerned

agencies at the first port/airport of landing and the Customs clearance formalities have to be

complied with by the importer after arrival of the goods at the other Customs station where goods

are intended to be delivered to the importer. There could also be cases of transshipment of the

goods after unloading to a port outside India. For this purpose, a simple procedure is prescribed

and no duty is required to be paid.

2.2 For goods which are offloaded at a port/airport for clearance, the importers have the option to clear

the goods for home consumption after payment of duties leviable or to clear them for warehousing

without immediate discharge of the duties leviable in terms of the warehousing provisions of the

Customs Act, 1962. For the purpose of clearance of imported goods, every importer is required to

file, in terms of the Section 46 ibid, a Bill of Entry for home consumption or warehousing, as the

case may be, in the form prescribed under the relevant regulations. In cases where it is not feasible

to make entry electronically on the customs automated system, Principal Commissioner of

Customs or Commissioner of Customs, allow an entry in any other manner.

2.3 Foreign Trade Policy provides that Importer-Export Code (IEC) number, a 10-character alphanumeric allotted to a person by the Directorate General of Foreign Trade (DGFT) is mandatory for

undertaking any export/import activities. However, exempt categories and corresponding

permanent IEC numbers are provided in Para 2.07 of Handbook of Procedures issued by DGFT.

2.4 For clearance of goods through the EDI system, the importer is required to file a cargo declaration

having prescribed particulars required for processing of the Bill of Entry for Customs clearance.

2.5 Under the EDI system, the importer by himself or through his authorized customs broker may file

the declarations in electronic format through the service centre or ICEGATE. Facility of uploading

scanned documents along with the declaration for filing a bill of Entry, is also available through “e

Sanchit’ programme.

2.6 As already explained under Chapter 1 (under paras 8.7 and 9.2), CBIC has implemented Faceless

Assessment on imports whereby assessment of Bills of Entry are now being done by an officer

located in a remote office other than the Customs station where the goods are presented for

Customs clearance.

3. Self-assessment of imported and export goods:

3.1 Section 17 of the Customs Act, 1962 provides that an importer entering any imported goods under

section 46 or an exporter entering any export goods under section 50 shall self-assess the duty.

Thus, under self-assessment, it is the importer or exporter who will ensure that he declares the

correct classification, applicable rate of duty, value, benefit of exemption notifications claimed, if

any, etc. in respect of the imported / export goods while presenting Bill of Entry or Shipping Bill.

3.2 The declaration filed by the importer or exporter may be verified by the proper officer when so

interdicted by the Risk Management Systems (RMS). Such verification will be done selectively on

the basis of the RMS, which not only provides assured facilitation to those importers having a good

track record of compliance but ensures that on the basis of certain rules, intervention, etc., high

risk consignments are interdicted for detailed verification before clearance. On the basis of

interdictions under RMS, Bills of Entry may either be taken up for verification of assessment or for

examination of the imported goods or both. If the self-assessment is found incorrect, the duty may

be reassessed. In cases where there is no interdiction by RMS or non existence of any other

factor, there will be no cause for the declaration filed by the importer to be taken up for verification,

and such Bills of Entry will straightaway be facilitated for clearance without assessment and

examination, on payment of applicable duty, if any.

3.3 The verification of a self-assessed Bill of Entry or Shipping Bill, which are interdicted by the RMS,

shall be with regard to correctness of classification, value, rate of duty, exemption notification or

any other relevant particular having bearing on correct assessment of imported or export goods.

For the purpose of verification, the proper officer may order for examination or testing of the

imported or export goods. The proper officer may also require production of any relevant document

or ask the importer or exporter to furnish any other relevant information. Thereafter, if the selfassessment is not found to have been done correctly, the proper officer may re-assess the duty.

This is without prejudice to any other action that may be warranted under the Customs Act, 1962.

On reassessment, contrary to the self-assessment done by the importer or exporter, the proper

officer shall pass a speaking order, if so desired by the importer or exporter, within 15 days from

the date of re-assessment of bill of entry or shipping bill. When verification of self-assessment in

terms of Section 17 requires testing / further documents / information, and the goods cannot be

re-assessed quickly however, the importer or the exporter requires the goods to be cleared on

urgent basis. In such cases, provisional assessment may be done in terms of Section 18 of the

Customs Act, 1962, once the importer or exporter, as the case may be, furnishes such security as

deemed fit by the proper officer of Customs for payment of deficiency, if any, between the duty as

may be finally assessed or re-assessed as the case may be, and the duty provisionally assessed.

3.4 In cases, where the importer or exporter is not able to determine the duty liability or make selfassessment for any reason, except in cases where examination is requested by the importer under

proviso to Section 46(1), a request shall be made to the proper officer for provisional assessment

of duty under Section 18 (1)(a) of the Customs Act, 1962. In such a situation an option is available

to the proper officer to resort to provisional assessment of duty by asking the importer / exporter

to furnish security as deemed fit for payment of the deficiency, if any, between the duty as may be

finally assessed or re-assessed, as the case may be, and the duty provisionally assessed.

3.5 For the purpose of proper assessment of duty and to ensure correctness of trade statistics,

importers/exporters should mandatorily declare the Standard Unit Quantity Code (UQC), as

indicated in the Customs Tariff Act, 1975.

[Refer Circular No. 26/2013-Cus. dated 19-7-2013]

4. Turant Customs

4.1 India has seen significant improvements in the World Bank’s Ease of Doing Business (EoDB)

Index rankings in recent years. Customs is concerned with the `Trading Across Borders` (TAB)

component of the EoDB index which is primarily based on time and cost of import and export

processes. The improvements in the TAB parameter of EoDB Index have been made possible

largely due to several reform measures initiated and implemented by the CBIC, which inter alia

include SWIFT, e-Sanchit, DPD, revised AEO programme, RFID e-seal programme etc. which

combined to reduce the time and cost of clearance of goods in the various Customs ports. The

next target of Government is to be in the top 50 of the EoDB ranking in this category and the efforts

in this direction are being spearheaded by the CBIC by the introduction of the next generation

reforms aptly named Turant Customs which is a comprehensive package of various elements that

have been implemented in recent years. The next generation reforms in the Customs clearance

process under the umbrella of Turant Customs are with the objectives of speedy clearance,

transparency in decision making, and ease of doing business. Board rolled out numerous changes

to the Customs clearance process, which combine together support Turant Customs. These

initiatives include the self-registration of goods by importers, automated clearances of bills of entry,

digitisation of customs documents, paperless clearance, etc. The Turant Customs is primarily

based on Faceless, Contactless and Paperless Customs processes.

4.2 Faceless Customs

4.2.1 Indian Customs has initiated Faceless Assessment on imports from June 2020 (Reference

Circular No.28/2020-Customs and Instruction No.09/2020 both dated 5th June 2020). The

first phase began by linking Chennai and Bengaluru which was gradually expanded to

other geographical locations till eventual all India coverage by 31.10.2020. Briefly put,

Faceless Assessment uses a technology platform to separate the Customs assessment

process from the physical location of a Customs officer at the port of arrival. This measure

is with the intent of bolstering efforts to ensure an objective, free, fair and just assessment.

Key objectives of Faceless Assessment include:

(i) Anonymity in assessment for reduced physical interface between trade and

Customs

(ii) Speedier Customs clearances through efficient utilisation of manpower

(iii) Greater uniformity of assessment across locations

(iv) Promoting sector specific and functional specialisation in assessment.

4.2.2 To further smoothen implementation of Faceless Assessment and to have a robust system

in place for meeting desired objectives as above, the Central Board of Indirect Taxes and

Customs (CBIC) constituted the National Assessment Centres (NACs) in September

2020. These NACs have been mandated, amongst other responsibilities, to monitor

assessments, to set up structures for liasoning with different Customs formations and

Directorates under CBIC, to function as knowledge hub for the commodities assigned to

that particular NAC etc., (Reference Circular No.40/2020-Customs dated 4th September

2020).

4.2.3 Subsequent to all India coverage of imports by Faceless Assessment, CBIC took certain

measures for timely assessment and faster clearance of goods such as-measures to

ensure that there would be no delays on weekends and holidays, measures to minimize

and rationalize raising of queries to importers, measures to streamline import cases which

are to be sent for First Check examinations, measures for better facilitations by warranting

interactions between NACs and Risk Management Division of CBIC, guidelines for

reassessing imports as well as general grievance redressal mechanisms and issues

relating to enforcement of Rules of Origin (Reference Circular No.45/2020-Customs dated

12th October 2020).

4.2.4 After comprehensive stakeholder consultations with members of the trade, CBIC issued

fresh directions and clarifications on various aspects relating to Faceless Assessment

such as re-assessments to be done in accordance with principles of natural justice,

requirement of members of the trade to ensure full and complete submission of required

documents and accurate declarations, increasing the monetary limits for assessment and

for sensitizing Customs officers in assessment of liquid bulk cargo (Reference Circular

No.55/2020-Customs dated 17th December 2020).

4.2.5 In July 2021, CBIC has taken a call to increase facilitation to 90 percentage (%). This

implies that more number of import documents would be cleared without intervention of

Customs officers. Linked to this decision, the existing Direct Port Delivery (DPD) scheme

has also been revamped to shift to a regime of Customs document based DPD from

existing client based DPD. CBIC has also prescribed time limits for assessments and has

taken a call to further re-organise composition of Faceless Assessment Groups (FAGs)

under the NACs with the intent to foster faster clearances and better facilitation.

(Reference Circular No.14/2021-Customs dated 7th July 2021).

4.2.6 Standard Examination Order:

In order to enhance uniformity in assessments across various customs ports across the

country, CBIC has implemented Standard Examination Orders in the Customs system.

The said implementation started for goods covered under Assessment Group 4 in all the

Customs Stations. This functionality is expected to enhance the uniformity in examination,

and lower the time taken in the process as well as reduce associated costs. Considering

the on track implementation and to harmonize the examination orders across FAGs, the

Board has implemented the Standard Examination Orders to the goods across all other

Assessment Groups also.

[Refer Circulars No.14/2021-Customs dated 07.07.2021, No.16/2022-Customs dated

29.08.2022, No.23/2022-Customs dated 03.11.2022 and No. 02/2023 dated 11.01.2023]

4.3 Contactless Customs: In recent years, CBIC has initiated reforms such as online registration of

goods, automated queuing and automated clearances of Bills of Entry, simplified online

registration in ICEGATE, auto debit of bonds, setting up of Turant Suvidha Kendras (TSKs) etc.

All these have enabled an environment which has done away with the requirement of members of

the trade to physically interact with Customs in the goods clearances process and has fostered a

`Contactless Customs` environment.

4.3.1 Online registration of goods: A facility has been provided for the importers or their

authorised persons to register the goods online on the ICEGATE web portal after the goods

have arrived (and not after payment of duty, as per previous practice). This self registration

has further reduced the time of clearance besides freeing the Customs officers for handling

other important items of work.

[Refer Circular No.09/2019-Customs dated 28th February 2019]

4.3.2 Automated queuing of Bills of Entry: Significant changes have been made in the ICES 1.5

for clearance of imported goods after finalisation of assessment and payment of duty under

Section 47(1) of the Customs Act, 1962. The proper officer now has access to a fully

automated queue of Bills of Entry ready for the grant of clearance in the ICES 1.5 which

obviates the present necessity of the importer/authorised person having to present the Bill

of Entry number and date to this officer for seeking clearance. Based upon the Bills of Entry

which are ready for clearance in this automated queue the proper officer would be able to

directly and immediately grant clearance on the System. Besides greatly reducing the dwell

time of the goods that are pending only for the grant of such clearance, this has reduced

the interface of the trade with the department personnel to the advantage of both. The Bills

of Entry which are fully facilitated by the Risk Management System will also be

automatically routed to the proper officer for giving clearance after registration has been

completed by the importer.

 [Refer Circular No.09/2019-Customs dated 28th February 2019]

4.3.3 Automated clearances of Bills of Entry : A further trade facilitation initiative in the Customs

clearance process is the Customs Compliance Verification (CCV) which operates after an

importer registers the imported goods even while duty has not been paid or its payment is

in process. Once the goods are registered, the proper officer carries out all necessary

verifications as per Sections 17/18 and Section 47(1) of the Customs Act, 1962. On

satisfaction that the goods are ready for clearance, but for the payment of duties, the proper

officer confirms the completion of the CCV for the particular Bill of Entry in the System.

Thereafter, on payment of duty by the importer, the Customs Automated System

electronically gives clearance to the Bill of Entry, as provided for in the 1st proviso to

Section 47(1) of the Customs Act, 1962. This facility of automated clearance of Bills of

Entry has been introduced on a pilot basis in Chennai Customs House and Jawaharlal

Nehru Customs House w.e.f. 06.02.2020. The said facility was introduced at an all India

level w.e.f. 05.03.2020.

[Refer Circular No.09/2019-Customs dated 28th February 2019, Circular No.05/2020-

Customs dated 27th January 2020, Circular No.15/2020-Customs dated 28th February

2020]

4.3.4 Registration of Authorised Dealer Code, Bank Accounts through ICEGATE : CBIC has now

enabled functionality within ICEGATE login which allows the exporters to make an online

request for registration/modification of their AD Code / Bank Account(s) and also

electronically submit the Passbook copy or Bank Authorisation letter through eSanchit. The

exporters would also have access to a Dashboard to view the status of approval and

acceptance at PFMS, for quick rectification at their end.

[Refer Circular No.32/2020-Customs dated 6th July 2020]

4.3.5 Automated debit of bond after Assessment: CBIC has done away with the requirement for

importers to physically visit Customs House for physical debit of Bonds after the Bill of

Entry is returned (to the importer) for the payment of duty. ICES now automatically debits

the Bond and reflect the same in the first copy of the Bill of Entry, provided the details of

the Bond are provided during submission of the Bill of Entry.

[Refer Circular No.32/2020-Customs dated 6th July 2020]

4.3.6 Simplified Registration of Importers/Exporters in ICEGATE: Simplified Registration

module for importers / exporters based on verification provided in associated GSTIN has

been provided without the requirement of digital signature. These functionalities are useful

to the importers / exporters and would help them in their management of imports and

exports. Some of these functionalities are Management of Bank Accounts, Ledger View,

IGST Refund status, Query Reply etc.

[Refer Circular No.32/2020-Customs dated 6th July 2020]

4.3.7 Setting up of Turant Suvidha Kendra in All Customs Formations: Circular No.28/2020-

Customs, dated 05.06.2020 provided for setting up Turant Suvidha Kendras (TSK) for the

purpose of implementation of 1st

 Phase of Faceless Assessment at Bengaluru and

Chennai. Considering the benefits ushered in by providing single point interface, Board

decided to extend TSKs to all the Customs formations for carrying out the functions as

follows:

(i) The document verification by Customs officers at Assessment and Customs

Compliance Verification (CCV) stages would normally be based on the documents

uploaded in the e-Sanchit, not requiring physical submission of documents. However,

if in any exceptional situation the physical submission of documents is required by

Customs, for defacement or validation, such submission would be made only at the

TSKs.

(ii) Documents requiring verification during examination for validation with goods would

continue to be done during examination, as at present.

(iii) One or more TSKs may be set up for the convenience of the trade.

(iv) Suitable procedures are to be devised for handling & safe keeping of the documents

produced at TSKs. Ideally these documents should also be kept in electronic form

[Refer Circular No.32/2020-Customs dated 6th July 2020]

4.4 Paperless Customs: CBIC has taken initiatives to enable digital submission and transmission of

both Bills of Entry and Shipping Bills in 2020. Besides saving time, the cost of printing paper

documents has also been substantially reduced.

4.4.1 PDF copies of Bills of Entry and gatepass- Board has decided to enable electronic

communication of PDF based Final eOoC (electronic Out of Charge) copy of BoE and

eGatepass to the importers/Customs Brokers. This electronic communication would

reduce interface between the Customs authorities and the importers/Customs Brokers

and also do away with the requirement of taking bulky printouts from the Service Centre

or maintenance of voluminous physical dockets in the Customs Houses. The Final eOoC

copy of BoE and eGatepass copy is now emailed to the concerned Customs Broker and/or

importer, if registered, once the Out of Charge is granted. The eGatepass copy will be

used by the Gate Officer or the Custodian to allow physical exit of the imported goods

from the Customs area. These new features have been implemented w.e.f 15.04.2020.

[Refer Circular No.19/2020-Customs dated 13.04.2020]

4.4.2 Electronic Communication of PDF Based Copies of Shipping Bill & e-Gatepass to

Custom Brokers/Exporter: In its continuing endeavour to promote ‘Faceless, Contactless,

Paperless Customs’ Board decided to rely upon digital copies of the Shipping Bill and do

away with the requirement of taking bulky printouts from the Service Centre or

maintenance of voluminous physical dockets in the Custom Houses. This reform will yield

immense benefits in terms of saving the time and cost of compliance for the trade, thereby

enhancing the ease of doing business, while providing enhanced security features for

verification of authenticity and validity of the electronic document. Board has directed that

w.e.f. 22.06.2020 only the digital copy of the Shipping Bill bearing the Final LEO would be

electronically transmitted to the exporter and the present practice of printing copies of the

said document for the exporters and also for maintaining a docket in the Customs House

would stand discontinued.

[Refer Circular No.30/2020-Customs dated 22.06.2020]

Diagrammatic Representation of Pre-Turant Customs and Post-Turant Customs process flow

for Imports is illustrated in Figure 3.1, on the next page.

5. Examination of goods:

5.1 The imported goods, which are interdicted for examination by the RMS, are required to be

examined for verification of correctness of description/declaration given in the Bill of Entry and

related documents. The imported goods may also be examined prior to assessment in cases

where the importer does not have complete information with him at the time of import and requests

for examination of the goods before assessing the duty liability or, where the proper officer, on

reasonable belief feels that the goods should be examined before assessment, giving reasons for

the same. Wherever required, samples are drawn in the examination area for chemical analysis,

verification or any other purposes.

5.2 After assessment by the appraising group or for cases where examination is carried out before

assessment, bill of entry needs to be presented for registration for examination of imported goods

in the import shed. The proper officer of customs examines the goods along with requisite

documents. The shipments, found in order are given clearance order by the proper officer of

customs in the Import Shed.

5.3 Standard Examination Order:

In order to enhance uniformity in assessments across various Customs ports across the Country

Board introduced the RMS generated uniform examination orders for group 4 (Metal Products)

from 5th September 2022 (part 1). In the first phase, the generation of uniform examination orders

is for second check cases only and would be expanded to first check consignments in the 2nd

Phase. Further, in part 2 under phase 1, the generation of uniform examination orders has also

been implemented for group 5 (chapter 4) with effect from 15th September, 2022.

[Refer Circulars No.14/2021-Customs dated 07.07.2021, No.16/2022-Customs dated

29.08.2022 and No.23/2022-Customs dated 03.11.2022]

6. Execution of bonds:

6.1 For availing partial or complete exemption from duties under different schemes and notifications,

execution of end use/ provisional duty bonds with Bank Guarantee or other surety may be

required,in the prescribed forms. The amount of bond and bank guarantee is determined in terms

of the instructions issued by the Board or conditions of the relevant notification or provisions of the

Customs Act, 1962 or rules/regulations made there under.

7. Payment of duty:

7.1 The duty can be paid in the designated banks through TR-6 Challan. Facility of e- payment of

duty through multiple banks is also available since 2007 at all major Customs locations.

7.2 With effect from 17-9-2012, e-payment of Customs duty is mandatory for importers registered

under Accredited Clients Programme/Authorised Economic Operator scheme and importers

paying duty of Rs. 1 lakh or more per Bill of Entry.

7.3 Customs Notification No. 134/2016-Customs (N.T) & 135/2016-Customs (N.T.) dated 2nd

November, 2016 allowed Importers certified under Authorized Economic Operator Programme as

AEO (Tier-Two) and AEO (Tier-Three) to make deferred payment of duty of Customs. The

Deferred Payment of Import Duty Rules were notified vide Notification no. 28/2017- Customs

(N.T.) dated 31st March, 2018

[Refer Circulars No.33/2011-Cus., dated 29-7-2011 and No. 24/2012-Cus.,

dated 5-9-2012, Circular No. 52/2016- Customs dated 15.11.2016]

7.4 Extension of Deferred Payment of Duty to ‘Authorised Public Undertakings’ (APU) : Vide

Notification No. 78/2020-Customs (N.T.) dated 19.08.20 ‘Authorised Public Undertakings’ (APU)

have been permitted to avail the facility of deferred payment of Customs import duty under proviso

to sub-section (1) of section 47 of the Customs Act, 1962.

[Refer Circular No.37/2020-Customs dated 19.08.2020]

8. Amendment of Bill of Entry:

8.1 Bonafide mistakes noticed after submission of documents, may be rectified by way of amendment

to the Bill of Entry with the approval of Deputy/Assistant Commissioner. Levy of Fees (Customs

Documents) Amendment Regulations, 2017, issued vide Notification No. 36/2017-Customs (N.T.)

dated 11.04.2017, provides a number of amendments which can be allowed on payment of

amount mentioned therein.

8.2 Request for amendments under Section 149 of the Customs Act, 1962 leading to reassessments:

After introduction of Faceless Assessment, several representations have been received regarding

dealing with amendments under section 149 of Customs Act,1962 and consequent reassessment

of B/E, based on the request of the importers to change the elements of assessment. This is

typically the case when the importer claims that he has forgotten to claim an exemption or is in

possession of some document that requires an element such as freight etc. to be changed. The

various scenarios and the prescribed routes for carrying out reassessment are laid down in para

2.5. of Circular No. 45/2020-Customs dated 12.10.2020.

[Refer Circular No.45/2020-Customs dated 12.10.2020]

9. Prior Entry for Bill of Entry:

9.1 For faster clearance of the goods, Section 46 of the Customs Act, 1962 allows filing of Bill of Entry

prior to arrival of goods. This Bill of Entry is valid if vessel/aircraft carrying the goods arrives within

30 days from the date of presentation of Bill of Entry.

9.2 Often, goods coming by container ships are transferred at intermediate ports (like Colombo) from

mother vessel to smaller vessels called feeder vessels. At the time of filing of advance Bill of Entry,

the importer does not know which vessel will finally bring the goods to Indian port. In such cases,

the name of mother vessel may be filled in on the basis of the Bill of Lading. On arrival of the

feeder vessel, the Bill of Entry may be amended to mention names of both mother vessel and

feeder vessel.

9.3 The Bill of Entry is required to be filed before the end of next day following the day (excluding

holidays) on which the aircraft or vessel or vehicle carrying the goods arrives at a customs station

at which such goods are to be cleared for home consumption or warehousing.

9.4 Wherein the Bill of Entry is not filed within the time specified in Para 8.3 above and the proper

officer of customs is satisfied that there is no sufficient cause for such delay, the importer shall be

liable to pay charges for the late presentation of Bill of Entry at the rate of rupees five thousand

per day for initial three days of the default and at the rate of rupees ten thousand per day for each

day of default thereafter.

[Refer Notification 26/2017-Cutoms (N.T.) dated 31.03.2017]

9.5 Section 46 of the Customs Act, 1962 has been amended vide the Finance Act, 2021. These

changes facilitate pre-arrival processing and assessment of Bills of Entry (BE) by mandating their

advance filing thus leading to significant decrease in the Customs clearance time. The amended

Section 46 requires an importer to file a BE before the end of the day (including holidays) preceding

the day of arrival of the vessel/aircraft/vehicle carrying the imported goods at a Customs

port/station at which such goods are to be cleared for home consumption or warehousing. Board

has amended the Bill of Entry (Electronic Integrated Declaration) Regulations, 2018 by issue of

Notification No.34/2021-Customs(N.T.), dated 29.03.2021 thereby prescribing different time-limits

for filing BE in respect of goods imported by various modes of transport. It may be noted that, the

existing provision that a BE may be presented upto 30 days prior to the expected arrival of the

aircraft or vessel or vehicle carrying the imported goods continues. Thus, with certain exceptions,

as notified, the BE can now be filed anytime from 30 days prior to the expected arrival of the

aircraft or vessel or vehicle upto the end of day preceding the day of such arrival.

[Refer Circular No. 08/2021-Cutoms dated 29.03.2021]

10. Bill of Entry for bond/warehousing:

10.1 A separate form of Bill of Entry is used for clearance of goods for warehousing. All documents, as

are required to be filed with a Bill of Entry for home consumption are also required with the Bill of

Entry for Warehousing which is assessed in the same manner and duty payable is determined.

However, since duty is not required to be paid at the time of warehousing, the purpose of assessing

the duty at this stage is only to secure the duty by way of execution of Bond. The duty is paid at

the time of ex-bond clearance of goods for which an Ex-Bond Bill of Entry is filed. In terms of

Section 15 of the Customs Act, 1962, the rate of duty applicable to imported goods cleared from

a warehouse is the rate in- force on the date of filing of Ex-Bond Bill of Entry.

[Refer Circular no. 22/2016-Customs dated 31.05.2016]

11. Risk Management System in Indian Customs:

11.1 “Risk Management System” (RMS) is one of the most significant steps in the ongoing Business

Process Re-engineering of the Customs Department. RMS is based on the realization that everincreasing volumes and complexity of international supply chain and the deteriorating global

security scenario present formidable challenges to Customs. Besides, the traditional gatekeeper

approach of scrutinizing every document and examining every consignment will simply not work.

Also, there is a need to reduce the dwell time of cargo at ports/airports, as well as the transaction

costs in order to enhance the competitiveness of Indian businesses, by expediting the release of

cargo where compliance level is high. Thus, an effective RMS strikes an optimal balance between

facilitation and enforcement and promotes a culture of compliance. RMS is also expected to

improve the management of the Department’s resources by enhancing efficiency and

effectiveness in meeting stakeholder expectations and bringing the Customs processes at par with

best international practices.

[Refer Circular No. 43/2005-Cus., dated 24-11-2005]

11.2 Facilitation of legitimate trade is one of the key motivating forces for simplification of procedures

and reduction of barriers to the trade. Indian Customs has been at the forefront of taking initiatives

aimed at catalysing economic development through transparency, harmonization, predictability

and automation in trade. Risk management has been one of the key vehicles for Indian Customs

to better meet the demands of the operating environment of the Trade facilitation. The risk

management in its new avatar-an intelligence data driven risk management framework embedded

with compliance culture-has enabled more effective decision-making at all levels. The past 15

years have produced many changes in implementation of risk management capabilities since its

introduction in the year 2005 in imports. The technology stack, which is based on Oracle database

remained the same, but the original port-wise distributed architecture was replaced by centralized

architecture in the year 2010. Now, RMS for cargo clearance is functional for all the locations,

which have the facility of electronic cargo clearance.

11.3 Indian Customs Risk Management System has already made forays into post-clearance audit,

exports, container selection, IPR, integrated declaration and integrated risk management involving

partner government agencies (single window), courier cargo, and e-sealing. With the insertion of

proviso to Section 17 (2) of the Customs Act 1962 (vide Finance Act 2018), the selection for

verification of self-assessed declarations (Bills of Entry or Shipping Bills) by the Assessing Officer

shall primarily be on the basis of risk evaluation through appropriate selection criteria. Besides,

provisos to Section 47 (1) and Section 51(1), the orders of clearance of imported goods for home

consumption and goods for exportation respectively, in addition to the proper officer, may also be

given electronically through the Customs Automation System on the basis of risk evaluation

through appropriate selection criteria. This in turn paved way for machine release of goods through

customs automation system in the case of imported and export goods.

11.4 Risk Management processes in Imports: Bills of Entry and IGMs filed electronically in ICES

through the Service Centre or the ICEGATE are transmitted by ICES to the RMS. RMS processes

the data through a series of steps and produces an electronic output for the ICES. This output

determines whether a particular Bill of Entry will be taken-up for appraisement or examination or

both or be cleared after payment of duty without assessment and examination. As a part of

decision support, where necessary, RMS provides instructions for Appraising Officer, Examining

Officer or the Out-of-Charge Officer. It needs to be noted that the appraising and examination

instructions communicated by the RMS have to be necessarily followed by the proper officer. It is,

however, possible that in a few cases the proper officer might decide to apply a particular treatment

to the Bill of Entry which is at variance with the instruction received from the RMS. This may

happen due to risks which are not factored in RMS. Such a course of action shall, however, be

taken only with the prior approval of the jurisdictional Pr. Commissioner/Commissioner of Customs

or an officer not below the rank of Additional / Joint Commissioner of Customs, authorized by him

for this purpose, after recording the reasons for the same. A brief remark on the reasons and the

particulars of Commissioner’s authorization should be made by the officer examining the goods in

the departmental comments section of the electronic Bill of Entry in the EDI system.

11.5 Automated clearances of Bills of Entry : A further trade facilitation initiative in the Customs

clearance process is the Customs Compliance Verification (CCV) which operates after an

importer registers the imported goods even while duty has not been paid or its payment is in

process. Once the goods are registered, the proper officer carries out all necessary verifications

as per Sections 17/18 and Section 47(1) of the Customs Act, 1962. On satisfaction that the goods

are ready for clearance, but for the payment of duties, the proper officer confirms the completion

of the CCV for the particular Bill of Entry in the System. Thereafter, on payment of duty by the

importer, the Customs Automated System electronically gives clearance to the Bill of Entry, as

provided for in the 1st proviso to Section 47(1) of the Customs Act, 1962. This facility of automated

clearance of Bills of Entry has been introduced on a pilot basis in Chennai Customs House and

Jawaharlal Nehru Customs House w.e.f. 06.02.2020. The said facility was introduced at an all

India level w.e.f. 05.03.2020.

[Refer Circular No.09/2019-Customs dated 28-02-2019, Circular No.05/2020-Customs dated

27-01-2020, Circular No.15/2020-Customs dated 28-02 2020]

11.6 Post-Clearance Audit (PCA): Based on a set of criteria, bills of entry are selected for PCA under

the Risk Management System for audit/verification of the correctness of the

declaration/assessment of the bill of entry. The objective of PCA is to monitor, maintain and

enhance compliance levels, while reducing the dwell time of cargo. The RMS selects the Bills of

Entry for audit, after clearance of the goods, and these selected Bills of Entry are directed to audit

officers for scrutiny.

11.7 As per the new scheme introduced in the Customs Act, 1962 (vide Finance Act, 2018), the

endeavour is to audit the assessment and also to verify compliance of an auditee with the various

provisions of the Customs Act and other allied laws in respect of imported or export or dutiable

goods, as a means to measure and improve compliance. A new Section 99A (under Chapter XIIA)

has been introduced in the Customs Act 1962, to provide a statutory framework for the procedure

for conducting post clearance audit. The Customs Audit Regulations (CAR), 2018 framed under

Section 99A of the Act are notified vide Notification No.45/2018-Customs (NT) dated 24.05.2018

in supersession of the On-site Post Clearance Audit regulations consequent to omission of Section

17(6) of the Act. Regulation (4) of the said CAR, 2018 stipulates that the selection of auditee or

the selection of import declarations or export declarations, as the case may be, for the purposes

of audit shall primarily be based on risk evaluation through appropriate selectivity criteria.

12. Risk Management processes in Exports:

12.1 Risk Management in export clearance was introduced in July 2013 (Circular No.23/2013-Customs

dated 24.06.2013 refers). RMS in exports clearance has enabled low risk consignments to be

cleared based on self-declaration by the exporters, while routing high-risky consignments to field

officers for verification of self-declaration or examination of consignment or both. This has resulted

in reduction in dwell time, transaction cost, clearance formalities without compromise with Custom

controls and other regulatory compliances in respect of export of goods.

12.2 Shipping Bills filed electronically in ICES through the Service Centre or the ICEGATE are

processed by RMS through a series of steps/corridors and an electronic output is produced for the

ICES. This output from RMS determines the flow of the Shipping Bill in ICES i.e. whether the

Shipping Bill will be taken up for verification of self-assessment/examination or both; or be given

“Let Export Order” directly after payment of Export duty (if any) without any given verification of

self-assessment/ examination.

12.3 To provide support in decision making and to ensure uniformity in verification practices adopted

by customs officers, the RMS also provides suitable instructions for Assessing Officer and

Examining Officer. Deviation or variance with RMS instructions as discussed under Para 10.4 in

respect of import are also apply, mutatis mutandis, in export.

 [Refer Para 5 of the Circular No.23/2013-Customs dated 24.06.2013]

12.4 The selection of Shipping Bills for verification of Self-assessment and/or examination is based on

the output given by RMS to ICES. However, owing to some technical reasons if RMS fails to

provide output to ICES or RMS output is not received by ICES , within a pre-defined time window,

the existing norms of assessment and examination (Refer Para 10 of the Circular No.23/2013-

Customs dated 24.06.2013) are applicable.

12.5 Pursuant to launch of RoDTEP (Remission of Duties or Taxes on Export Products) scheme on

01.01.2021, the phase-II of RMS in exports has been launched. Now subsequent to filing of EGM,

the Shipping Bills having a claim of Duty Drawback or RoDTEP scheme are processed by RMS

through a series of steps/corridors and an electronic output is generated for the ICES. This output

determines the flow of the Shipping Bill in ICES i.e. whether the Shipping Bill will be taken up by

the Customs Officers for verification of these claims or not, before grant of these export incentives

to exporter. The RMS will select the Shipping Bills for audit, after issue of LEO, and these selected

Shipping Bills will be directed to the audit officers for scrutiny.

13. Other RMS capabilities:

13.1 Data Analytics and Machine learning: Traditionally, Risk Rules are created by NCTC staff. Risk is

assessed based on data analysis conducted through the use of various tools, as well as the

analysis of legal changes, notifications, circulars. In order to leverage new technologies for

automated analysis and targeting, machine learning based interdictions have been introduced in

the RMS application. With the enhanced precision and accuracy in the interdiction of risky cargo,

NCTC has successfully codified various descriptive fields and created data-based interdictions for

automated identification of risky declarations through machine learning tools.

13.2 Express Cargo Clearance System (ECCS): ECCS is a web-based automated clearance System,

which was launched in the year 2017, for risk based electronic clearance of express cargo,

handled by courier companies. Currently, it is operational at three courier terminals viz Mumbai,

Delhi, and Bengaluru. Customs declarations filed for clearance under ECCS are known as courier

bills of entry (CBEs) and courier shipping bills (CSBs), and are different from the regular customs

declarations, used for clearance of normal cargo. CBEs and CSBs filed for customs clearance

under ECCS are subjected to RMS processes. RMS either facilitate or interdict a CBE or CSB as

per risk parameters. Imported goods or export goods covered under CBEs or CSBs that are

facilitated by RMS (no assessment and no examination) and cleared by customs Xray scanning

shall be given out of charge or let export order, respectively. Under new initiatives of “auto out of

charge” or “auto let export”, for fully facilitated CBE’s or CSEs are given automatic by ECCS

System.

[Refer Circular No.40/2019-Customs dated 29.11.2019 and 41/2020-Customs dated 07.09.2020]

13.3 Container Selection Module (CSM): Non-Intrusive inspection (NII) is also an integral part of risk

management ecosystem, wherein risk is assessed based on cargo declaration and risky

containers are scanned to identify and mitigate risks related to concealment. Import General

Manifests (IGMs), filed electronically, at a few selected locations, are processed by the RMS and

an electronic output is produced, determining whether or not a container will be scanned by using

NII equipment. By the end of 2020, CBIC has deployed 15 Container Scanners at 12 major port

locations. After the linkage between Container Selection Module commonly known as “CSM”

Application and Bill of Entry module of ICES has been established, a new feature is appearing as

pop-up on the screen of OOC officers. The Docks Examiner and OOC Officer can see on their

screen whether a container has been selected for scanning or not.

13.4 Logistics security- E-sealing of export containers: Board, in the year 2017, introduced e-sealing

of self-sealed export containers replacing the existing procedure of supervised factory stuffing with

one-time bottle seal. An e-seal is a sealing device, having an inbuilt unique Radio Frequency

Identification (RFID) chip, which can be identified by chip readers. E-sealing has enhanced the

supply chain security and cargo integrity of export containers, as it significantly reduces the

possibility of any unlawful intrusion or replacement of cargo en-route to customs gateway port.

NCTC-Cargo (former RMCC) has been entrusted with the overall management of the e-seal

project, including the authorisation of vendors and e-sealing data management.

13.5 IPR Application: RMCC responsible for registration of intellectual property rights with Indian

customs. These registered rights are protected by Indian Customs across all Customs stations.

Based on set out parameters, RMS interdicts consignments that may be infringing the intellectual

property rights of these registered right holders. In the year 2017, RMCC launched a new Webbased IPR Application (IPR::ICeR) https://ipr.icegate.gov.in for this registration. This Application

provides for linkage with other sites, and also has provision for raising queries and replying to

queries. UTRN (Unique Temporary Registration Number) function as user-id for access for

amendments/query reply/sending infringement message, provision for registration under

international agreements/protocols. The other facilities under new application include facility to the

Right Holder to upload 20 images and features of genuine & fake products, amendment or renewal

of UPRN (Unique Permanent Registration Number), sending infringement messages and to have

access to bond Transactions.

13.6 Under Single Window initiative (SWIFT), import-related risks of PGAs, such as Central Drug

Standard and Control Organisation (CDSCO), Food Safety and Standards Authority of India

(FSSAI), Plant Quarantine (PQ), Animal Quarantine (AQ), and Wildlife Crime and Control Bureau

(WCCB), are being gradually managed in the RMS application by adopting an integrated risk

management approach. A risk-based selection of Bills of Entry for four PGAs namely FSSAI,

WCCB, PQ, and CDSCO has already been implemented.

14. National Risk Management Committee (NRMC):

14.1 Risk Management is a dynamic process. Risk Management policies and processes need to be

continually monitored and reviewed at a senior level. Board had constituted the NRMC vide

Circular No.23/2007-Customs dated 28.06.2007, with a mandate to review the functioning of, and

supervise the implementation of, Risk Management System (RMS). Risk Management Division

(RMD), renamed as NCTC-Cargo has been assigned the task of convening the meetings of

NRMC. The NRMC was expected to meet at least once every quarter; however, at its 4th meeting

held in February 2014 at Mumbai, the Committee formally decided to meet annually.

14.2 Initially, DG (Systems) was designated as the head of the NRMC, and representatives of various

Directorates viz. Directorate of Revenue Intelligence, Valuation, Audit, and Trade Facilitation and

Tax Research Unit, were nominated as its members. Joint Secretary (Customs) was included as

a member of the Committee vide circular 39/2011-Customs dated 2-9-2011. Consequent upon the

transfer of operational control of RMD from DG Systems to DG DRI in April 2013, the NRMC was

headed by DG DRI. RMCC (now NCTC) is placed under Directorate General of Analytics and Risk

Management (DGARM) vide OM No. A-11013/19/2017-Ad.IV dated 11.07.17.

14.3 There shall be established a National Risk Management Committee for Customs and GST. The

DGARM, Delhi will be the nodal agency responsible for convening the NRMC meeting to review

the functioning of the NCTC-Cargo, NCTC(Pax) and the GST Business Analytics Wing. These

wings under the DGARM will supervise the implementation and enhancement of RMS, APIS and

the DGARM applications and provide feedback for improving the effectiveness of risk

management and all related aspects. The NRMC will be a Standing Committee with the Member

(Investigation), CBIC, as Chairman and Additional Director General, DGARM Hars, Delhi will the

Member Secretary of the NRMC.

14.4 The NRMC shall be convened once every year and will have the following main (but not limited

to) functions:

(i) Review the effectiveness of existing Risk Parameters employed in various modules namely

Import, Export, Container Scanning, Express Cargo Clearance System (ECCS), Post

Clearance Audit (PCA), Protection and enforcement of Intellectual Property Rights (IPR)

etc., and Risks posed by changes in Modus Operandi, new exemption notifications and new

CCR’s.

(ii) Review existing parameters and suggest new parameters to address concerns on border

and port security.

(iii) Once NCTC(Pax) is operationalized, the NRMC shall look at incremental improvements to

be made in the Automated Targeting System.

(iv) he Business Analytics wing of GST implements various modules e.g., Risky Exporters,

Risky Taxpayers, Scrutiny of Returns, Audit, Analytical reports etc. The NRMC will advise

on changes, if any, to be made in the various risk criteria that define the Risk in these

modules.

(v) Deliberate and advise on new and emerging risks and suggest ways to address systemic

risks, having cross-cutting implications.

 (vi) Discuss new initiatives and projects for stepping up risk management strategy and

associated processes, including the development of new modules and deployment of new

technologies.

(vii) Be the Forum for giving feedback and suggestions on improving the efficacy of risk

management.

(viii) Discuss and recommend measures for timely and effective risk mitigation by field

formations.

(ix) Deliberate on economic trends, changes in policies, duty rates and exemptions, etc., that

could be exploited by the trade to evade Duties and Prohibitions and suggest remedial action

for the same.

(x) Discuss the efficacy of the Examination orders that would be made available shortly through

the ICETAB, obviating the need for printing in the paper.

(xi) Have an oversight on the generation of the centralised examination orders based on various

parameters and its rollout in phases to enhance uniformity.

(xii) To discuss and advise on enhanced use of technology, data sources and analytics

capabilities to discern Security related Risks. Deliberate on use of Al/ML, Image analytics,

geospatial analysis etc

(xiii) To address security vulnerabilities in the International Supply Chain through entity profiling

of stakeholders, leveraging information in databases about movement of vessels and

containers etc.

(xiv) Any other matter that DGARM may consider for seeking the views of the NRMC.

[Refer Instruction No. 3/2022-Customs dated 23-03-2022]

 

15. Local Risk Management (LRM) Committee:

15.1 A Local Risk Management (LRM) Committee headed by Commissioner of Customs has been

constituted in each Custom House / Air Cargo Complex / ICD, where RMS is operationalised. The

LRM Committee comprises the Additional / Joint Commissioner in charge of Special Investigation

and Intelligence Branch (SIIB), who is designated as the Local Risk Manager and includes the

Additional / Joint Commissioner in charge of Audit and a nominee, not below the rank of a Deputy

Director from the regional / zonal unit of the DRI, and a nominee, not below the rank of Deputy

Director from the Directorate of Valuation, if any. The LRM Committee meets once every month

and some of its functions are as follows:

(i) Review trends in imports of major commodities and valuation with a view to identifying risk

indicators,

(ii) Decide the interventions at the local level, both for assessment and examination of goods

prior to clearance and for PCA.

(iii) Review results of interventions already in place and decide on their continuation/

modification or discontinuance etc.

(iv) Review performance of the RMS and evaluate the results of the action taken on the basis

of the RMS output.

(v) Send periodic reports to the NCTC with the approval of the Pr. Commissioner/Commissioner

of Customs. [Refer Circular No.43/2005-Cus., dated 24-11-2005]

16. Authorized Economic Operator scheme:

16.1 The earlier Accredited Clients Programme (ACP)/Authorized Economic Operator (AEO) scheme

granted assured facilitation to importers who have demonstrated capacity and willingness to

comply with the laws administered by the Customs. The earlier existing ACP and AEO

programmes were merged into the new AEO programme vide Circular No. 33/2016-Customs

dated 22-7-2016. For the economic operators other than importers and the exporters, the new

programme offers only one tier of certification (i.e. AEO-LO) whereas for the importers and the

exporters, there are three tiers of certification (i.e. AEOT1, AEO-T2 and AEO-T3).

16.2 Considering the likely volume of cargo imported by the Authorized Economic Operator, Custom

Houses are advised to create separately earmarked facility/counters for providing Customs

clearance service to them. Commissioners of Customs are also required to work with the

Custodians for earmarking separate storage space, handling facility and expeditious clearance

procedures for these clients.

16.3 The RMD maintains the list of AEOs centrally in the RMS and also monitors their levels of

compliance, in co-ordination with the DRI/Commissioners of Customs. Where compliance levels

fall, the importer is at first informed for self-improvement and in case of persistent non-compliance,

the importer may be deregistered under the AEO.

 

16.4 The new combined three tier AEO programme enhance the scope of these programmes so as to

provide further benefits to the entities who have demonstrated strong internal control system and

willingness to comply with the laws administered by the Central Board of Indirect Taxes and

Customs. Benefits besides lowered risk ratings on RMS includes simplified Customs procedure,

declarations, etc. besides faster Customs clearance of consignments of/for AEO status holders

The features and details of the revised programme are available in CBIC Circular No. 33/2016-

Customs dated 22.07.2016.

[Refer Circulars No.33/2016-Customs dated 22.07.2016, No.03/2018-Customs dated 17.01.2018 and

No.26/2018-Customs dated 10.08.2018. For more details, please refer Chapter 34.]

17. Export procedure - Shipping Bill:

17.1 For clearance of export goods, the exporter has to obtain an Importer- Export Code (IEC) number

from the DGFT prior to filing of Shipping Bill. Under the EDI System, IEC number is received online

by the Customs System from the DGFT. The exporter is also required to register authorized foreign

exchange dealer code (through which export proceeds are expected to be realized) and open a

current account in the designated bank for credit of Drawback incentive, if any.

17.2 All the exporters intending to export under the export promotion scheme need to get their licenses

etc. registered at the Customs Station. For such registration, original documents are required.

17.3 eSANCHIT has been extended to all ICES locations on PAN India basis for all types of exports

under ICES.

[Refer Circular No. 29/2018- Customs dated 30.08.2018,

Circular 43/2018- Customs dated 08.11. 2018]

18. Waiver of Guaranteed Remittance (GR) form:

18.1 Generally the processing of Shipping Bills requires the production of a GR form that is used to

monitor the foreign exchange remittance in respect of the export goods. However, there are few

exceptions when the GR form is not required. These exceptions include export of goods valued

not more than US $25,000/- and export of gifts valued upto Rs.5 lakhs.

[Refer RBI Notifications No.FEMA.23/2000-RB, dated 3-5-2000, and

No.FEMA.116/2004-RB, dated 25-3-2004]

19. Arrival of export goods at docks:

19.1 The goods brought for the purpose of export are allowed entry to the customs area on the strength

of the check list and other declarations filed by the exporter in the Service Center. The custodian

has to endorse the quantity of goods actually received on the reverse of the check list.

20. Customs examination of export goods:

20.1 After the receipt of the goods in the customs area, the exporter/ customs broker may contact the

Customs Officer designated for the purpose, and present the check list with the endorsement of

custodian and other declarations along with all original documents such as, Invoice and Packing

list, ARE-1, etc. The Customs Officer may verify the packages of the goods actually received and

enter the same into the system and thereafter mark the Electronic Shipping Bill, handing over all

original documents to the Dock Appraiser who assigns a Customs Officer to carry out examination

of goods, if required under the Risk management System and indicate the officers' name and the

packages to be examined, if any, on the check list and return it to the exporter/ Customs Broker.

21. Examination norms:

21.1 The Board has been fixing norms for examination of export consignments and such norms depend

upon the quantum of incentive, value of export goods, country of destination etc. The instructions

under the Risk Management System and examination order by the Appraising Groups follow the

norms framed in this regard.

21.2 After presentation of goods for registration to Customs and determination of action as to whether

or not to examine the goods, no amendments request in the normal course should be entertained.

However, in case an exporter still wishes to change any of the critical parameters resulting in

change of value, Drawback, port etc. such consignment should be subjected to examination to

rule out malafide in the request of the exporter.

21.3 Notwithstanding the examination norms, any export consignment can be examined by the

Customs (even up to 100%), if there is any specific intelligence in respect of such consignment.

Further, to test the compliance by trade, once in three months a higher percentage of

consignments (say for example, all the first 50 consignments or a batch of consecutive 100

consignments presented for examination in a particular day) would be taken up for examination.

Out of the consignments selected for examination a minimum of two packages with a maximum

of 5% of packages (subject to a maximum of 20 packages) would be taken up for

checking/examination.

21.4 In case export goods are stuffed and sealed in the presence of Customs/Central Excise officers

at the factory of manufacture/ICD/CFS/warehouse and any other place where the Commissioner

has, by a special order, permitted, it may be ensured that the containers should be bottle sealed

or lead sealed. Also, such consignments shall be accompanied by an examination report in the

prescribed form. In case of export through bonded trucks, the truck should be similarly bottle

sealed or lead sealed. In case of export by ordinary truck/other means, all the packages are

required to be lead sealed.

[Refer Circulars No.6/2002-Cus., dated 23-1-2002, and No.1/2009-Cus., dated 13-1-2009]

21.5 Routine examination of perishable export cargo is not to be conducted. Customs resort to

examination of such cargo only on the basis of credible intelligence or information and with prior

permission of the concerned Assistant Commissioner/ Deputy Commissioner. Further, the

perishable cargo which is taken up for examination should be given Customs clearance on the

day itself, unless there is contravention of Customs laws.

[Refer Circular No.8/2007-Cus., dated 22-1-2007]

22. Drawl and testing of samples:

22.1 The representative sample from the consignment is drawn in accordance with the orders of the

proper officer.

22.2 If considered necessary, the Assistant / Deputy Commissioner, may order sample to be drawn for

purposes other than testing such as for visual inspection and verification of description, market

value inquiry, etc.

22.3 Request for re-testing of sample made within a specified time by the importer or agent may be

granted by the Additional Commissioner or Joint Commissioner of Customs as a trade facilitation

measure. For uniformity in procedure at the various field formations, Board has issued detailed

guidelines for retesting of samples.

[Refer Circular No. 30/2017-Customs dated 18.07.2017]

22.4 CRCL Module - Forwarding of samples using electronic Test Memo to CRCL and other Revenue

Laboratories : As detailed in circular No. 46/2020-Customs dated 15.10.2021, CRCL and other

Revenue Laboratories have been upgraded with several new, state of the art equipment, thereby

enabling the testing of a wider variety of commodities in lesser time, with greater accuracy. For

details, the CRCL brochure available at www.crcl.gov.in may be perused. In order to further ease

the testing process, DG Systems has enabled a ‘CRCL module’ in ICES with the objective of

automating all paperwork related to sampling, forwarding of test memos to CRCL and other

Revenue Laboratories, and electronic receipt of test reports, instantly by the Customs Officers.

The officials of CRCL and other Revenue Laboratories have been provided access for both import

and export functionalities in the CRCL module. The CRCL module is also seamlessly integrated

with current modules of ICES.

[Refer Circular No.46/2020-Customs dated 15.10.2020 and

Instruction No.14/2021-Customs dated 21.06.2021]

22.5 For list of identified laboratories where field formations may directly forward samples of certain

goods where CRCL labs are not equipped, refer Circulars No.43/2017- Customs dated

16.11.2017, No.11/2018-Customs dated 17.05.2018, No.28/2018-Customs dated 30.08.2018 and

No.15/2019-Customs dated 07.06.2019.

23. Stuffing / loading of goods in containers:

23.1 In case of container cargo, the stuffing of container at Dock is done under Preventive supervision.

Further, loading of both containerized and bulk cargo is to be done under Preventive supervision.

The Customs Preventive Officer supervising the loading of container and general cargo into the

vessel may give “Shipped on Board” endorsement on the Exporters copy of the Shipping Bill.

23.2 Palletization of cargo is done after grant of Let Export Order (LEO). Thus, there is no need for a

separate permission for palletization from Customs. However, the permission for loading in the

aircraft/vessel is to be obtained. [Refer Circular No.18/2005-Cus., dated 11-3-2005]

24. Amendments:

24.1 Any correction/amendment in the check list generated after filing of declaration can be made at

the Service Centre provided the documents have not yet been submitted in the EDI system and

the Shipping Bill number has not been generated. 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, the amendments will be carried out in the following manner:

(i) If the goods have not yet been allowed “Let Export” the amendments may be permitted by

the Assistant / Deputy Commissioner (Exports).

 (ii) Where the "Let Export" order has already been given, amendments may be permitted only

by the Additional/Joint Commissioner in charge of Export.

24.2 In both the cases, after the permission for amendments has been granted, the Assistant

Commissioner/Deputy Commissioner (Export) may approve the amendments on the EDI 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/Shed

Appraiser/Superintendent for cancellation before amendment is approved on the system. [Refer

para 6 in Chapter 2 on types of Amendments]

25. Drawback claim:

25.1 After actual export of the goods, the Drawback claim is automatically processed through EDI

system by the officers of Drawback Branch on first-come-first-served basis. The status of the

Shipping Bills and sanction of Drawback claim can be ascertained from the query counter set up

at the Service Center. If any query is raised or deficiency noticed, the same is also shown on the

terminal and a print out thereof may be obtained by the authorized person of the exporter from the

Service Centre. The exporters are required to reply to such queries through the Service Centre.

The claim will come in queue of the EDI system only after reply to queries/deficiencies is entered

in the Service Centre.

25.2 All the claims sanctioned on a particular day are enumerated in a scroll and transferred to the

Bank through the system. The bank credits the drawback amount in the respective accounts of

the exporters. The bank may send a fortnightly statement to the exporters of such credits made in

their accounts.

25.3 The Steamer Agent/Shipping Line may transfer electronically the EGM to the Customs EDI system

so that the physical export of the goods is confirmed, to enable the Customs to sanction the

Drawback claims.

[ For more details on duty drawback Scheme, please refer Chapter 22]

26. Export General Manifest:

26.1 All the shipping lines/agents need to furnish the Export General Manifests, Shipping Bill-wise, to

the Customs electronically before departure of the conveyance.

26.2 Apart from lodging the EGM electronically the shipping lines need to continue to file manual EGMs

along with the exporter copy of the Shipping Bills in the Export Department where they would be

entered in a register. The shipping lines may obtain acknowledgement indicating the date and time

at which the EGMs were received by the Export Department.

27. Electronic Declarations for Bills of Entry and Shipping Bills:

27.1 Bill of Entry (Electronic Integrated Declaration and paperless processing) Regulations, 2018 and

Shipping Bill (Electronic Integrated Declaration and paperless processing) Regulations, 2019 as

amended, have been framed in exercise of powers conferred under section 157 read with section

46 and section 50 of the Customs Act, 1962 to mandate self-assessment by the importer or

exporter, as the case may be.

[Refer Notifications No.36/2018-Cus (N.T.) dated 11-05-2018 and No.33/2019-Cus

(N.T.) dated 25-04-2019]

28. 24x7 Customs clearance facility:

28.1 With effect from 31.12.2014 the facility of 24x7 Customs clearance had been made available for

specified import viz. goods covered by “facilitated” Bills of Entry and specified exports viz. factory

stuffed containers and goods exported under free Shipping Bills, at the 18 sea ports and the facility

of 24x7 Customs clearance for specified imports viz. goods covered by facilitated Bills of Entry

and all exports viz. goods covered by all Shipping Bills had also been made available at the 17

air cargo complexes (ACCs). Lately, it has been decided to extend the facility of 24x7 Customs

clearance for specified imports viz. goods covered by facilitated Bills of Entry and specified exports

viz. reefer containers with perishable/temperature sensitive export goods sealed in the presence

of Customs officials as per Circular no. 13/2018-Cus. Dated 30.05.2018 and goods exported under

free Shipping Bills. Presently 24x7 Customs clearance facility is available at 20 sea ports and 17

Air Cargo Complexes.

[Refer Circulars No.19/2014- Cus. dated 31-12-2014, 01/2016 dated 06.01.2016,

31/2018 dated 05.09.2018 and ]

28.2 Board had advised all the Pr. Chief / Chief Commissioners, having jurisdictions over Inland

Container Depots (ICDs) to consider having the ICDs within their jurisdictions designated with

extended facility of Customs clearance beyond normal working hours in any of the following

ways, namely :-

a) The facility of Customs clearance may be made available on a 24x7 basis, similar to the

current Board guidelines for Sea Ports and Air Cargos/Airports;

b) The facility of Customs clearance may be extended on all seven (7) days of the week

(including holidays), with stipulated timings (say from 9 :30 AM to 6 :00 PM);

c) The facility of Customs clearance may be extended beyond normal working hours

for specified days in a week and with specified timings.

The decision to designate an ICD in any manner under para 3(a), 3 (b) or 3(c) above, based on

location requirement and resources availability, could be for specified imports viz. goods covered

by ‘facilitated’ Bills of Entry only, or specified exports viz. reefer containers with perishable/

temperature sensitive export goods sealed in the presence of Customs officials only or goods

exported under free Shipping Bills only, or for all the three categories mentioned

[Refer Circular No. 11/2022-Customs dated 29.07.2022]

29. Sealing of Export Goods: electronic sealing facility

29.1 Board has laid down a simplified procedure for stuffing and sealing of export goods by introducing

self-sealing subject to certain conditions.

29.2 Exporter shall inform the details of the premises whether a factory or a warehouse or any other

place where container stuffing is to be carried out to the jurisdictional officer at least 15 days before

first planned movement of a consignment from his factory premises for consideration of grant of

permission by the jurisdictional Commissioner.

29.3 Customs formation granting the self sealing permission shall circulate the permission along with

GSTIN of the exporter to all Customs Houses/Station concerned. Principal Commissioners/

Commissioners would also communicate to RMD the IEC of the exporters newly granted

permission for self-sealing; exporters already operating under self-sealing procedure, exporters

permitted factory stuffing facility, AEOs.

29.4 Exporter shall seal container with tamper-proof electronic seal of standard specification before

leaving the premises. The physical serial number of the electronic seal shall be declared by the

exporter at the time of filing integrated online Shipping Bill. Prior to sealing the container, exporter

shall feed data such as name of exporter, IEC, GSTIN, description of goods, tax invoice number,

name of authorized signatory (for affixing the e-seal) and Shipping number in the electronic seal.

29.5 Exporter shall procure the RFID seals from vendors conforming to the standards specified by the

Board.

29.6 All consignments in self-seal containers shall be subject to risk-based criteria and intelligence, if

any, for inspection/ examination at the port of export. At the port/ ICD, Customs officers would

verify the integrity of the seals to check for any sign of tampering enroute.

[Refer Circular no. 26/2017- Customs dated 01.07.2017, Circular no. 36/2017- Customs dated

28.08.2017, Circular no. 37/2017- Customs dated 20.09.2017, Circular no. 41/2017- Customs

dated 30.10.2017, Circular no. 44/2017- Customs dated 18.11.2017, Circular no. 51/2017-

Customs dated 21.12.2017]


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