Customs Manual 2014 [relevant inputs inserted in red letters]

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 [Section 46] containing details such as description of goods, [generic name of the goods, brand, specification, size, unit, unit of quantity, country of Origin,], value, quantity, exemption notification, Customs Tariff Heading etc. This Bill of Entry is subject to verification by the proper officer of Customs [viz. ACC / DCC] (under self assessment scheme) and may be reassessed if declarations are found to be incorrect.[1]  [2] Normally import declarations made are scrutinized without prior examination of goods with reference to documents made available [i.e., presented by the importer / exporter[1] and other information about the value / classification etc. 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. 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.[3] 

 



[1] [If declarations are found to be incorrect affecting the assessable value, duty payable or importability, the AC/DC is dutybound to initiate action to confiscate the goods and to impose penalty u/s 111(m) and 112 (a) (iii) respectively.  Please note the phrase ‘shall be liable‘ in both the sections that there is no discretion given to the proper officer not to register a case.   Stereotype adjudication order as was being done in the Baggage Hall in ITC cases, may be issued on being requested by the importer for waiver of issue of notice to show cause and not to be heard in person]

[2] Since AC/DC is the proper officer for verification of self assessment Enhancement, the value declared can be rejected by the AC/DC and not by AO who lacks jurisdiction as is being done in EDI system.

[3] [If any discrepancy is noticed on examination, depending upon the provision of the section of the Customs Act, 1962 contravened, suitable action must necessarily be initiated – viz. seizure of goods, registering of a case, conducting further investigation etc.]


Customs Manual 2014

Chapter 3

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 [Section 46] containing details such as description of goods, [generic name of the goods, brand, specification, size, unit, unit of quantity, country of Origin,], value, quantity, exemption notification, Customs Tariff Heading etc. This Bill of Entry is subject to verification by the proper officer of Customs [viz. ACC / DCC] (under self assessment scheme) and may be reassessed if declarations are found to be incorrect.  [If declarations are found to be incorrect affecting the assessable value, duty payable or importability, the AC/DC is dutybound to initiate action to confiscate the goods and to impose penalty u/s 111(m) and 112 (a) (iii) respectively.  Please note the phrase ‘shall be liable‘ in both the sections that there is no discretion given to the proper officer not to register a case.   Stereotype adjudication order as was being done in the Baggage Hall in ITC cases, may be issued on being requested by the importer for waiver of issue of notice to show cause and not to be heard in person]

Since AC/DC is the proper officer for verification of self assessment Enhancement, the value declared can be rejected by the AC/DC and not by AO who lacks jurisdiction as is being done in EDI system.

 Normally import declarations made are scrutinized without prior examination of goods with reference to documents made available [i.e., presented by the importer / exporter[1]and other information about the value / classification etc. 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. 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. [If any discrepancy is noticed on examination, depending upon the provision of the section of the Customs Act, 1962 contravened, suitable action must necessarily be initiated – viz. seizure of goods, registering of a case, conducting further investigation etc.]

 

2. Import procedure - Bill of Entry:

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

to relevant 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/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. 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 this purpose 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 by regulations. The Bill of Entry

is to be submitted in sets, different copies meant for different purposes and also bearing

different colours, and on the body of the Bill of Entry the purpose for which it will be used

is mentioned.

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2.3 The importers have to obtain an Importer-Export Code (IEC) number from the Directorate

General of Foreign Trade (DGFT) prior to filing of Bill of Entry for clearance of imported

goods. The Customs EDI System receives the IEC number online from the DGFT.

2.4 If the goods are cleared through the EDI system, no formal Bill of Entry is filed as it is

generated in the computer system, but 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 The importer clearing the goods for domestic consumption through non-EDI ports/ airports

has to file Bill of Entry in four copies; original and duplicate are meant for Customs, third

copy for the importer and the fourth copy is meant for the bank for making remittances.

Along with the Bill of Entry the following documents are also generally required:

(a) Signed invoice

(b) Packing list

(c) Bill of Lading or Delivery Order/Airway Bill

(d) GATT valuation declaration form

(e) Importers/Customs Broker’s declaration

(f) Letter of Credit, wherever necessary

(g) Insurance documentImport license, where necessary

(i) Industrial License, if required

(j) Test report, if necessary

(k) Catalogue, technical write up, literature for machineries, spares or chemicals, as

applicable

(l) Separately split up value of spares, components, machinery

(m) Certificate of Origin, if preferential rate of duty is claimed

2.6 While filing the Bill of Entry, the correctness of the information given therein has also to

be certified by the importer in the form a declaration at the foot of the Bill of Entry and any

mis-declaration/incorrect declaration has legal consequences.

2.7 Under the EDI system, the importer does not submit documents as such but submits

declarations in electronic format containing all the relevant information to the Service

Centre. A signed paper copy of the declaration is taken by the service centre operator

for non-reputability of the declaration. A checklist is generated for verification of data by

the importer/ Customs Broker. After verification, the data is filed by the Service Centre

Operator and EDI system generates a Bill of Entry Number, which is endorsed on the

printed checklist and returned to the importer/ Customs Broker. No original documents are

taken at this stage. Original documents are taken at the time of examination. The importer/

Customs Broker also needs to sign on the final document before Customs clearance.

2.8 The first stage for processing a Bill of Entry is termed as the noting/registration of the Bill

of Entry vis-a-vis the IGM filed by the carrier. In the manual format, the importer has to

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get the Bill of Entry noted in the concerned Noting Section which checks the consignment

sought to be cleared having been manifested in the particular vessel and a Bill of Entry

number is generated and indicated on all copies. After noting, the Bill of Entry gets sent

to the appraising section of the Custom House for assessment functions, payment of

duty etc. In the EDI system, the noting aspect is checked by the system itself, which also

generates Bill of Entry number.

2.9 After noting/registration the Bill of Entry is forwarded manually or electronically to the

concerned Appraising Group in the Custom House dealing with the commodity sought to

be cleared. Appraising wing of the Custom House has a number of Groups dealing with

commodities falling under different Chapter Headings of the Customs Tariff and they take

up further scrutiny for assessment, import permissibility angle etc.

3. Self-assessment of imported and export goods:

3.1 Vide Finance Act, 2011, ‘Self-Assessment’ has been introduced under the Customs Act,

1962. Section 17 of the said Act provides for self-assessment of duty on imported and

export goods by the importer or exporter himself by filing a Bill of Entry or Shipping Bill, as

the case may be, in the electronic form, as per Section 46 or 50, respectively. 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, in respect of the imported / export goods while presenting Bill of Entry or Shipping Bill.

3.2 Section 46 of the Customs Act, 1962 makes it mandatory for the importer to make entry

for the imported goods by presenting a Bill of Entry electronically to the proper officer

except for the cases where it is not feasible to make such entry electronically. While this

is not a new requirement, it provides a legal basis for electronic filing. Where it is not

feasible to file these documents in the System, the concerned Commissioner can allow

filing of Bill of Entry in manual mode by the importer. These Bills of Entry would continue

to be regulated by Bill of Entry (Forms) Regulations, 1976. However, this facility should

not be allowed in routine and the Commissioner should ensure that manual filing of Bill

of Entry is allowed only in genuine and deserving cases. Similarly, on export side also,

Section 50 of the Customs Act, 1962 makes it obligatory for exporters to make entry of

export goods by presenting a Shipping Bill electronically to the proper officer except for

the cases where it is not found feasible to make such entry electronically. In these cases

the Commissioner may allow manual filing of Shipping Bill. Again, this authority should

be exercised cautiously and only in genuine cases.

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

so interdicted by the Risk Management Systems (RMS). In rare cases, such interdiction

may also be made with the approval of the Commissioner or an officer duly authorized by

him, not below the rank of Additional Commissioner of Customs, and this will necessarily

be done after making a record in the EDI system. On account of interdictions, Bills of Entry

may either be taken up for action of review 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, there will be no cause for the declaration filed by

the importer to be taken up for verification, and such Bills of Entry will be straightaway

facilitated for clearance without assessment and examination, on payment of duty, if any.

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3.4 The verification of a self-assessed Bill of Entry or Shipping Bill 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 duty on imported or export

goods. 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. 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 the production of any relevant document or ask the importer

or exporter to furnish any relevant information. Thereafter, if the self-assessment of duty 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 re-assessment of duty, the proper officer shall pass a speaking order, if so desired

by the importer, within 15 days of re-assessment. This requirement is expected to arise

when the importer or exporter does not agree with re-assessment, which is different from

the original self-assessment. There may be situations when the proper officer of Customs

finds that verification of self-assessment in terms of Section 17 requires testing / further

documents / information, and the goods cannot be re-assessed quickly but are required

to be cleared by the importer or exporter 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 furnishes security as deemed fit by the proper officer of Customs for

differential duty equal to duty provisionally assessed by him and the duty payable after

re-assessment.

3.5 One of the salient features of self-assessment is that verification of declarations and

assessment done by the importer or exporter, except for cases wherein a speaking order

has been passed by the proper officer while re-assessing the duty, can also be done at

the premises of the importer or exporter. On Site Post Clearance Audit (OSPCA) has

been applied to importers under the Accredited Client Programme (ACP) with effect from

1.10.2011. The Post Clearance Audit at Custom Houses shall continue for other importers.

3.6 In cases, where the importer or exporter is not able to determine the duty liability / make

self-assessment 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

assessment of the same under Section 18(a) of the Customs Act, 1962. In this 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 differential duty equal

to duty provisionally assessed and duty finally payable after assessment. This provision is

to be applied in deserving cases only where importer or exporter is not able to assess the

goods for duty for want of certain information / documents etc. and not in a routine manner.

As far as possible, steps should be taken to provide guidance to importers/ exporters so

that they are able to self-assess the duty. It should, however, be made clear that such

guidance is not legally binding.

3.7 In both cases where no self-assessment is done and when self-assessment is done but

reassessment is required under Section 17, the importer or exporter can opt for provisional

assessment of duty by the proper officer of Customs. The difference is that when no selfassessment

is done, the provisional assessment shall get converted into final assessment

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and when self-assessment is done, the provisional assessment shall get converted into

re-assessment.

3.8 Subsequent to introduction of self-assessment, it was felt that the existing facilitation

levels under RMS could be increased as responsibility of filing correct declarations has

been shifted to importers and exporters; the idea being to move towards a trust based

Customs control while at the same time fine tuning the risk parameters based interdictions

through RMS to check against non-compliance. Therefore, consequent to introduction of

self-assessment, Board has decided that the facilitation target to be achieved for Bills of

Entries would be 80% at Air Cargo Complexes, 70% at Seaports and 60% at ICDs.

[Refer Circulars No. 17/2011-Cus., dated 8-4-2011 and No.39/2011-Cus.,dated 2-9-2011]

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

it has been decided that importers/exporters shall mandatorily declare the Standard Unit

Quantity Code (UQC), as indicated in the Customs Tariff Act, 1975. It is however instructed

that this shall not become a cause for the holdup of export goods or delay in clearances of

any goods through the Customs.

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

4. Examination of goods:

4.1 All imported goods are required to be examined for verification of correctness of

description given in the Bill of Entry. However, ordinarily only a part of the consignment

is selected on random selection basis and examined. Also, the goods may be examined

prior to assessment in case 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, if the Customs Appraiser/Assistant Commissioner feels the goods are

required to be examined before assessment. This is called First Check Appraisement.

The importer has to request for First Check Appraisement at the time of filing the Bill

of Entry or at data entry stage giving the reason for the same. The Customs Appraiser

records on original copy of the Bill of Entry the examination order and returns the

Bill of Entry to the importer/ Customs Broker for being taken to the import shed for

examination of the goods. Thereafter, Shed Appraiser/Dock Examiner examines the

goods as per examination order and records his findings. In case appraising group has

called for samples, he forwards sealed samples accordingly. The importer is required

to bring back the said Bill of Entry to the assessing officer for assessing the Bill of Entry,

which is countersigned by Assistant/Deputy Commissioner if the value is more than

Rs.1 lakh.

4.2 The imported goods can also be examined subsequent to assessment and payment of

duty. This is called Second Check Appraisement. Most of the consignments are cleared

on Second Check Appraisement basis. In this case whole of the consignment is not

examined and only those packages which are selected on random basis are examined.

4.3 Under the EDI system, the Bill of Entry, after assessment by the appraising group or first

appraisement, as the case may be, needs to be presented at the counter for registration for

examination in the import shed. A declaration for correctness of entries and genuineness

of the original documents needs to be made at this stage. After registration, the Bill of

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Entry is passed on to the shed Appraiser for examination of the goods. Alongwith the

Bill of Entry, the Customs Broker is required to present all the necessary supporting

documents. After examination of the goods, the Shed Appraiser enters the report in EDI

system and transfers first appraisement Bill of Entry to the appraising group and gives

‘out of charge’ in case of already assessed Bills of Entry. Thereupon, the system prints

Bill of Entry and order of clearance (in triplicate). All these copies carry the examination

report, order of clearance number and name of Shed Appraiser. Two copies each of

Bill of Entry and the order are to be returned to the importer/Customs Broker, after the

Appraiser signs them. One copy of the order is attached to the Customs copy of Bill of

Entry and retained by the Shed Appraiser.

4.4 In order to reduce transaction cost, importers may exercise the option to de-stuff goods

from foreign containers and keep the same in the CFS / ICD including in empty domestic

containers therein, under Customs supervision, for subsequent clearance as per law.

[Refer F.No.450/95/2012-Cus.IV, dated 20-11-2012]

4.5 In order to prevent fraud Commissioners concerned shall develop a proper gate

management system where Deputy / Assistant Commissioner of Customs, Docks /

Import Shed and Deputy / Assistant Commissioner of Customs, Special Intelligence

& Investigation Branch (SIIB) would carry out surprise checks at out gate and verify

authenticity of the gate passes issued by the custodian. Further, Out of Charge orders

must be computerized and manual Out of Charge orders should be allowed only in the

rarest of rare and genuine cases. Also specimen signature of the officers posted in Docks

/ Import Shed should be made available at the out gate for verification. Further manual

Out of Charge orders (gate passes) booklets; official stationery, stamp etc. should be

kept in safe custody. Due care should also be taken to verify the particulars in the Bill of

Entry and other important documents.

[Refer Instructions F.No.450/24/2012-Cus.IV, dated 29-10-2012]

5. Execution of bonds:

5.1 Wherever necessary, for availing duty free assessment or concessional assessment

under different schemes and notifications, execution of end use bonds with Bank

Guarantee or other surety is required to be furnished. These have to be executed in

prescribed forms before the assessing Appraiser. For instance, when the import of goods

is made under Export Promotion schemes, the importer is required to execute bonds

with the Customs authorities for fulfilment of conditions of respective notifications. If the

importer fails to fulfil the conditions, he has to pay the duty leviable on those goods. The

amount of bond and bank guarantee is determined in terms of the instruction issued by

the Board as well the conditions of the relevant notification etc.

6. Payment of duty:

6.1 The duty can be paid in the designated banks through TR-6 Challan. It is necessary to

check the name of the bank and the branch before depositing the duty. Bank endorses the

payment particulars in challan which is submitted to the Customs. Facility of e- payment

of duty through more than one authorized bank is also available since 2007 at all major

Customs locations.

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

registered under Accredited Clients Programme and importers paying duty of Rs. 1 lakh

or more per Bill of Entry.

[Refer Circulars No.33/2011-Cus., dated 29-7-2011 and No. 24/2012-Cus., dated 5-9-2012]

7. Amendment of Bill of Entry:

7.1 Whenever mistakes are noticed after submission of documents, amendments to

the Bill of Entry is carried out with the approval of Deputy/Assistant Commissioner. The

request for amendment may be submitted with the supporting documents. For example, if

the amendment of container number is required, a letter from shipping agent is required.

On sufficient proof being shown to the Deputy/Assistant Commissioner amendment in Bill

of Entry may be permitted after the goods have been given out of charge i.e. goods have

been cleared.

8. Prior Entry for Bill of Entry:

8.1 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. This Bill of Entry

has 5 copies, the fifth copy being called Advance Noting copy. The importer must declare

that the vessel/aircraft is due within 30 days and present the Bill of Entry for final noting

as soon as the IGM is filed. Advance noting is not available for Into- Bond Bill of Entry and

also during certain special periods.

8.2 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. Bill of Entry for bond/warehousing:

9.1 A separate form of Bill of Entry is used for clearance of goods for warehousing. All

documents, as are required to be attached 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

in case the goods do not reach the warehouse. The duty is paid at the time of ex-bond

clearance of goods for which an Ex-Bond Bill of Entry is filed. 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.

10. Risk Management System in import:

10.1 ‘Risk Management System’ (RMS) has been introduced in Customs locations where

the EDI System (ICES) is operational. This 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 ever increasing volumes and complexity of international

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trade and the deteriorating global security scenario present formidable challenges to

Customs and the traditional 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 and transaction costs in order to enhance the competitiveness

of Indian businesses, by expediting release of cargo where compliance 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]

10.2 RMS has dispensed with the practice of routine assessment, concurrent audit and

examination and the present focus is on quality assessment, examination and Post

Clearance Audit of selected Bills of Entry.

10.3 Bills of Entry and IGMs filed electronically in ICES through the Service Centre or the

ICEGATE are transmitted by ICES to the RMS. The 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 action (appraisement or examination

or both) or be cleared after payment of duty and Out of Charge directly, without any

assessment and examination. Also 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 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 the RMS. Such a course of action shall however be taken only with the

prior approval of the jurisdictional Commissioner of Customs or an officer authorized by

him for this purpose, who shall not be below the rank of Additional / Joint Commissioner of

Customs, and 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 in the EDI system.

10.4 Post-Clearance Compliance Verification (PCC) is done to confirm the correctness of

the duty assessments. The objective of PCCV 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 the audit officers for scrutiny by the EDI system. In case any possible short levies are

noticed, the officers issue a Consultative Letter mentioning the grounds for their view to

the importers. This is intended to give the importers an opportunity to voluntarily comply

and pay the duty difference if they agree with the department’s point of view. In case

there is no agreement, the formal processes of demand notices, adjudication etc. would

follow. The auditors are specifically instructed to scrutinize declarations with reference

to data quality and advise the importers suitably where the quality of their declarations

is found deficient. Such advice is expected to be followed by the trade and monitored by

the local risk managers.

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11. Risk Management System in Export

11.1 On similar lines of the RMS in imports, a Risk Management System (RMS) in Export

has been introduced with effect from 15-7-2013. The RMS in exports allows low risk

consignments to be cleared based on self assessment of the declarations by exporters.

This enables the department to enhance the level of facilitation and speed up the process

of export clearance. By expediting the clearance of compliant export cargo, the RMS in

exports will contribute to reduction in dwell time, thereby achieving the desired objective

of reducing the transaction cost in order to make the business internationally competitive.

At the same time, the RMS in exports will ensure proper and expeditious implementation

of existing control over export goods under the applicable Allied Acts and Rules. It will also

provide appropriate control measures for proper and speedy disbursement of drawback

and other export incentives.

11.2 With the introduction of the RMS in exports, the practice of routine verification of selfassessment

and examination of Shipping Bills has been discontinued and the focus is

on quality assessment, examination and post clearance audit (PCA) of Shipping Bills

selected by the RMS.

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

will be processed by RMS through a series of steps/corridors and an electronic output

will be produced for the ICES. This output from RMS will determine the flow of the

Shipping Bill in ICES i.e. whether the Shipping Bill will be taken up for Customs control

(verification of self-assessment or examination or both) or to be given “Let Export Order”

directly after payment of Export duty (if any) without any verification of self-assessment or

examination. The RMS will also provide instructions for Appraising Officer/Superintendent,

Examining Officer/Inspector or the Let Export Order (LEO) Officer, wherever necessary.

The decisions communicated by the RMS on the need for verification of self-assessment

and/or examination and the appraising and examination instructions communicated by

the RMS have be followed by the field formations. It is possible that in a few cases, the

field formations might decide to apply a particular treatment to the Shipping Bill which

is at variance with the instructions received for the RMS owing to risks which are not

factored in the RMS. Such a course of action shall be taken only with the prior approval

of the jurisdictional Commissioner of Customs or an officer authorised by him for this

purpose, who shall not be below the rank of Addl./Joint Commissioner of Customs, and

after recording the reason for the same. A brief remark on the reasons and particulars of

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

departmental comments in the EDI system.

11.4 The RMS in export has been launched in two phases. In the first phase the RMS will

process the data and provide the output to ICES only up to goods examination stage.

In the second phase, the RMS will also process the Shipping Bill data after the Export

General Manifest (EGM) is filed electronically and provide output to ICES for selection of

Shipping Bills for Drawback scrutiny and Post Clearance Audit (PCA).

11.5 With the implementation of export RMS, a Post Clearance Audit (PCA) function has

been introduced in respect of exports after the LEO is given for export consignment. The

objective of PCA is to monitor, maintain and enhance compliance levels, while reducing

the dwell time of cargo. The RMS would select the Shipping Bills for audit, after issue of

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LEO, and these selected Shipping Bills will be directed to the audit officers for scrutiny by

the ICES.

11.6 As in the case of Import, the national management of the RMS shall be the responsibility

of the Risk Management Division. There will be a single Local Risk Manager (Admin) for

a location for both import and export.

11.7 The selection of Shipping Bills for verification of Self-assessment and/or examination will

be based on the output given by RMS to ICES. However, owing to some technical reasons

if the RMS fails to provide output to ICES or RMS output is not received at ICES end in

time, the existing norms of assessment and examination will be applicable.

[Refer Circular No. 23/2013-Cus., dated 24-6-2013]

12. Risk Management Division:

12.1 A Risk Management Division (RMD) in Mumbai has the following charter of functions:

(i) The RMD has the overall responsibility for designing, implementing and managing

RMS using various risk parameters and risk management tools to address risks facing

Customs, i.e., the potential for non-compliance with Customs and allied laws and

security regulations, including risks associated with the potential failure to facilitate

international trade.

(ii) The RMD will suggest assessment and examination in respect of consignments

perceived to be risky and facilitate the remaining ones.

(iii) The RMD is responsible for collecting and collating information and developing an

intelligence database to effectively implement the RMS and also carry out effective

risk assessment, risk evaluation and risk mitigation techniques. It will update and

maintain risk parameters in relation to the trade, commodities and all stakeholders

associated or involved with the supply chain logistics.

(iv) The RMD is the nodal agency for Accredited Client’s Programme (ACP). It will maintain

a list of accredited clients in the RMS and closely monitor their compliance standards.

(v) The RMD will closely interact with all Custom Houses, Directorate of Revenue

Intelligence (DRI) and Directorate of Valuation (DOV) to enable it to effectively

address national risks. The RMD shall also work in close coordination with Directorate

General of Audit (DG Audit). The local risks will be largely addressed by RMD in cooperation

with the Custom Houses. Further, the RMD will also closely interact with

DOV on all matters pertaining to the Valuation Risk Assessment Module (VRAM)

of RMS. DOV will also supply the list of Most Sensitive Commodities with value

bands, the list of valid valuation alerts and the list of Unusual Quantity Code (UQC)

at agreed intervals.

(vi) The RMD will review the performance of the RMS in terms of reviewing the various

targets/interventions inserted by the Local Risk Management (LRM) Committee,

make objective assessment of the effectiveness of such insertions, and ensure that

the performance is consistent with the objective laid down. For this purpose, the

RMD shall provide necessary advice and guidance to Custom Houses as and when

required, which shall be followed. The RMD will also review the extent of facilitation

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being provided to the trade and offer necessary guidance to the officers in the

Custom Houses with a view to providing appropriate facilitation and also ensuring

compliance.

(vii) The RMD will coordinate and liaise with Other Government Departments (OGDs),

for dealing with risks relating to the compliance requirements under relevant allied

Acts.

(viii) The RMD will work in close coordination with NACEN in developing training manuals

and other documentation necessary for implementing RMS and also work out

regular training schedules for officers responsible for the RMS in major Customs

locations.

13. National Risk Management Committee:

13.1 A National Risk Management (NRM) Committee headed by DG (Systems) reviews the

functioning of the RMS, supervises implementation and provide feedback for improving

its effectiveness. The NRM Committee includes representatives of Directorate General

of Revenue Intelligence (DGRI), Directorate General of Valuation (DGOV), Directorate

General of Audit (DG Audit), Directorate General of Safeguards (DGS) and Tax Research

Unit (TRU) and Joint Secretary (Customs), CBEC. The NRM Committee meeting is to be

convened by RMD at least once every quarter. The following are some of the functions of

the NRM Committee:

(i) Review performance of the RMS including implementation of ACP and PCA.

(ii) Review risk parameters and behaviour of important risk indicators.

(iii) Review economic trends, policies, duty rates, exemptions, market data etc. that

adversely impact Customs functions and processes and suggest remedial action.

[Refer Circulars No. 23/2007-Cus., dated 28-6-2007 and No. 39/2011-Cus., dated 2-9-2011]

14. Local Risk Management (LRM) Committee:

14.1 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.

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(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 RMD, as prescribed by the RMD, with the approval of

the Commissioner of Customs.

15. Accredited Clients Programme:

15.1 The Accredited Clients Programme (ACP) grants assured facilitation to importers who

have demonstrated capacity and willingness to comply with the laws administered by the

Customs. This programme replaces all existing schemes for facilitation in the Customs

stations where EDI and RMS is implemented. Importers registered as “Accredited Clients”

form a separate category to which assured facilitation is provided. Except for a small

percentage of consignments selected on random by the RMS, or cases where specific

intelligence is available or where a specifically observed pattern of non-compliance is

required to be addressed, Accredited Clients are allowed clearance on the basis of self

assessment without examination of goods as a matter of course.

15.2 Considering the likely volume of cargo imported by the Accredited Clients, 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.

15.3 The RMD administers the ACP and maintains the list of Accredited Clients 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 ACP.

15.4 The eligibility criteria for importers to get ACP status are as follows:

(i) They should have imported goods valued at Rs. 10 Crores [assessable value] in the

previous financial year; or paid more than Rs. 1 Crore Customs duty in the previous

financial year; or, in the case of importers who are also Central Excise assesses,

paid Central Excise duties over Rs. 1 Crore from the Personal Ledger Account in the

previous financial year, or they should be recognized as ‘status holders’ under the

Foreign Trade Policy.

(ii) They should have filed at least 25 Bills of Entry in the previous financial year in one

or more Customs stations.

(iii) They should have no cases of Customs, Central Excise or Service Tax, as detailed

below, booked against them in the previous three financial years:

(a) Cases of duty evasion involving mis-declaration/ mis-statement/collusion / wilful

suppression / fraudulent intent whether or not extended period for issue of SCN

has been invoked.

(b) Cases of mis-declaration and/or clandestine/unauthorized removal of excisable

/ import / export goods warranting confiscation of said goods.

(c) Cases of mis-declaration/ mis-statement/ collusion /wilful suppression/ fraudulent

intent aimed at availing CENVAT credit, rebate, refund, drawback, benefits under

export promotion/reward schemes.

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(d) Cases wherein Customs/Excise duties and Service Tax has been collected but

not deposited with the exchequer.

(e) Cases of non-registration with the Department with intent to evade payment of

duty/tax.

(iv) They should not have any cases booked under any of the allied Acts being

implemented by Customs.

(v) The quality of the submissions made by the applicants to Customs should be good

as measured by the number of amendments made in the Bills of Entry in relation to

classification of goods, valuation and claim for exemption benefits. The number of

such amendments should not have exceeded 20% of the Bills of Entry during the

previous financial year.

(vi) They should have no duty demands pending on account of non-fulfilment of export

obligation.

(vii) They should have reliable systems of record keeping and internal controls and their

accounting systems should conform to recognized standards of accounting. They

are required to provide the necessary certificate from their Chartered Accountants in

this regard.

15.5 The ACP accreditation is initially valid for a period of one year and is renewable thereafter

upon a review of the compliance record of the Accredited Client.

[Refer Circulars No. 22/97-Cus., dated 4-7-1997, No.63/97-Cus., dated 21-11-1997,

No.42/2005-Cus., dated 24-11-2005, and No.43/2005-Cus dated 24-11-2005]

16. Export procedure - Shipping Bill:

16.1 For clearance of export goods, the exporter or his agent 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 realised) and open a current account in the designated bank

for credit of any Drawback incentive.

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

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

are required.

17. Waiver of GR form:

17.1 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. Thexe 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]

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18. Arrival of export goods at docks:

18.1. The goods brought for the purpose of export are allowed entry to the Dock 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.

19. Customs examination of export goods:

19.1 After the receipt of the goods in the Docks, 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

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

who assigns a Customs Officer for examination 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..

20. Examination norms:

20.1 The Board has fixed norms for examination of export consignments keeping in

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

category-wise scale of physical examination at the port of export is as follows:

A. Factory stuffed export cargo:

Category of Exports Scale of Examination

Export goods stuffed and sealed in the

presence of Customs/Central Excise

officers at the factories of manufacture,

ICD/CFS, notified warehouses and other

places where the Commissioner has, by

a special order, permitted examination of

goods for export.

No examination except:

(a) where the seals are tampered with; or

(b) there is specific intelligence in which

case, permission of Deputy/Assistant

Commissioner is required before

checking.

B. Export under Free Shipping Bills:

Category of Exports Scale of Examination

Exports under Free Shipping Bills i.e.

where there is no export incentive.

No examination except where there is a

specific intelligence.

C. Export under Drawback scheme:

S.No. Category of exports consignment

– Amount of Drawback involved

Scale of Examination

Export to sensitive places viz.

Dubai, Sharjah, Singapore, Hong

Kong and Colombo

Others

(i) Rs.1 lakh or less. 25% 2%

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(ii) More than Rs.1 lakh. 50% 10%

D. Export under EPCG/DEEC schemes:

S.No. Category of exports consignment –

FOB value involved

Scale of Examination

Export to sensitive places viz.

Dubai, Sharjah, Singapore,

Hong Kong and Colombo

Others

(i) Rs.5 lakhs or less. 25% 2%

(ii) More than Rs.5 lakhs. 50% 10%

E. Export under Reward schemes – Chapter 3 of FTP:

S.No.

Category of exports under Free

Shipping Bills –

FOB value involved

Scale of Examination

Export to sensitive places viz.

Dubai, Sharjah, Singapore,

Hong Kong and Colombo

Others

(i) Rs.20 lakhs or less. 25% 2%

(ii) More than Rs.20 lakhs. 50% 10%

20.2 AEO exporters shall be given benefits of reduced percentage of examination, as under:

S.No. Category of export

consignments

Scale of Examination

Export to sensitive places viz.

Dubai, Sharjah, Singapore,

Hong Kong and Colombo

Others

(i) Where the amount of drawback

involved is Rs.5 lakhs or less.

10% 2%

(ii) Where the amount of drawback

involved is more than Rs.5 lakhs.

25% 5%

(iii) Where the FOB value under EPCG

/ DEEC is Rs.10 lakhs or less.

10% 2%

(iv) Where the FOB value under EPCG

/ DEEC is more than Rs.10 lakhs.

20% 5%

20.3 In all cases referred above, in respect of consignments selected for examination, a

minimum of two packages with a maximum of packages (subject to a maximum of 20

packages from a consignment) shall be opened for examination. The package number to

be opened for examination is selected by the EDI system.

20.4 It is to be ensured that exporters do not split up consignments so as to fall within the

lower examination norms. Therefore, wherever on the same day the same exporter

attempts to export a second consignment (other than under Free Shipping Bills) involving

export incentive of Rs. 1 lakh or less (Drawback) or in other cases having the FOB value

upto Rs.5 lakhs to the same country, the EDI system would alert the Examining Officer.

The Examining Officer can then decide whether to subject the second consignment for

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examination or not. In case the buyer in both or more consignments happens to be the

same person, subsequent consignments should be examined.

20.5 After the goods are presented for registration to Customs and determination has been

made whether or not to examine the goods, no amendments in the normal course are

expected. However, in case an exporter wishes to change any of the critical parameters

resulting in change of value, Drawback, port etc. such consignment should be subjected

to examination.

20.6 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 the said

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.

20.7 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]

20.8 If the export is made claiming benefits of Drawback or any other export promotion

scheme in addition to claiming benefits under any Schemes of Chapter 3 of FTP, then

the examination norms as prescribed by the Board for the respective export promotion

schemes would apply. In order to claim benefits under the Reward Schemes, the exporter

is required to declare the intention to claim such benefits on the Shipping Bill itself.

20.9 Exports by EOUs and units in SEZs are governed by examination norms, as applicable

for EPCG schemes. However, if the export consignment of EOUs or SEZs units has been

sealed by Customs/Central Excise Officer, the norms for factory stuffed cargo will apply.

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

should 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]

20.11 The Department related Parliamentary Standing Committee on Commerce has

emphasized that in order to promote export of Agriculture and Processed Food products,

the Customs authorities must be sensitized to accord priority clearance to perishable

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agro products cargo. Accordingly, export consignments of perishable agricultural goods

should not be examined in a routine manner and should be examined only in cases of

specific intelligence with prior permission of concerned Assistant Commissioner/Deputy

Commissioner of Customs. Such perishable cargo which is taken up for examination

should be given Customs clearance on the same day itself. In the event there are

contraventions of Customs law, necessary legal action shall be taken but, in this case

too, it shall be ensured that the perishable cargo is dealt with in such a manner including

grant of provisional release (where permissible) so that it is not unduly held up in ports/

airports etc. Further as a trade facilitation measure the facility of 24x7 Customs clearance

has been extended to export consignments of perishable agricultural export goods at all

air cargo complexes.

[Refer Circular No.12/2013- Cus IV., dated 2-4-2013]

20.12 In cases of cargo transported for exports through containers or bonded closed trucks

to Gateway Port after following the Central Excise/ Customs officer supervised sealing

or self-sealing by manufacturer exporters, EOUs; and containers aggregated with

LCL cargo in CFSs/ ICDs sent to the port after sealing in the presence of officers the

tamper proof one-time bottle seal alone should be adopted as it ensures safety and

security of sealing process and avoid any resealing at the point of export. In respect

of one-time bottle seals provided by the department, its cost may be recovered from

exporters/ manufacturers or their agents. However, exporters/manufacturers need not

be compelled to procure such bottle seals only from the department as this would defeat

the very purpose of self-sealing facility and avoid delay. When trucks/ other means used

for export cargo cannot be bottle sealed, same would be subject to normal examination

norms at gateway port.

[Refer Circular No.1/2006-Cus., dated 2-1-2006]

20.13 The exporters can avail of the facility of removal of export goods from the factories on the

basis of self-certification and self-sealing; but these shall be examined at the port of export

on the basis of prescribed examination norms.

[Refer Circulars No.6/2002-Cus., dated 23-1-2002 and No.31/2002-Cus., dated 7-6-2002]

21. Factory stuffing permission:

21.1 The grant of a single factory stuffing permission valid for all the Customs stations instead

of Customs station-wise permission is permitted. This facility is subject to the following

safeguards:

(i) The exporter is required to furnish to Customs a list of Customs stations from

where he intends to export his goods.

(ii) The Custom House granting the factory stuffing permission should maintain a proper

register to keep a track-record of such permissions, and also create a unique serial

number for each of such permissions.

(iii) The Custom House should circulate the factory stuffing permission to all Custom

Houses concerned clearly indicating the name and contact details of the Preventive

Officer/Inspector and Superintendent concerned of the Custom House granting the

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permission as well as those of the Central Excise Range concerned to facilitate real

time verifications, if required.

(iv) In case something adverse is noticed against the exporter, the Customs station

concerned shall promptly intimate the Custom House granting the permission, which

will, in turn, withdraw the permission, and inform all Custom Houses concerned.

[Refer Circular No.20/2010-Cus., dated 22-7-2010]

22. Variation between declaration and physical examination:

22.1 The check list and the declaration along with all original documents submitted with the

Shipping Bill are retained by the Appraiser concerned. In case of any variation between the

declaration in the Shipping Bill and physical documents/examination report, the Appraiser

may mark the Electronic Shipping Bill to the Assistant Commissioner/Deputy Commissioner

of Customs (Exports) along with sending the physical documents and instruct the exporter

or his agent to meet the Assistant Commissioner/Deputy Commissioner of Customs

(Exports) for settlement of dispute. In case the exporter agrees with the views of the

Department, the Shipping Bill needs to be processed accordingly. Where, however, the

exporter disputes the view of the Department the issue will be finalized in accordance with

the principles of natural justice.

23. Drawl of samples:

23.1 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/EDI system. There

is no separate register for recording dates of samples drawn. Three copies of the test

memo shall be prepared by the Customs Officer and 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 shall be as follows:

(i) Original - to be sent along with the sample to the test agency.

(ii) Duplicate - Customs copy to be retained with the 2nd sample.

(iii) Triplicate - Exporter’s copy.

23.2 If he considers it 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.

24. Stuffing / loading of goods in containers:

24.1 The exporter or his agent should hand over the Exporter’s copy of the Shipping Bill duly

signed by the Appraiser permitting “Let Export” to the steamer agent who would then

approach the proper officer (Preventive Officer) for allowing the shipment. 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 Superintendent (Docks) may enter the particulars

of packages actually stuffed into the container, the bottle seal number, details of loading of

cargo container on board into the EDI system and endorse these details on the Exporter’s

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copy of the Shipping Bill. If there is a difference in the quantity/ number of packages

stuffed in the containers/goods loaded on vessel the Superintendent (Docks) may put a

remark on the Shipping Bill in the EDI system and that it requires amendment or change in

quantity. Such Shipping Bill may not be taken up for the purpose of sanction of Drawback/

DEEC logging, till it is suitably amended. 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.

24.2 Palletisation of cargo is done after grant of Let Export Order (LEO). Thus, there is no need

for a separate permission for palletisation from Customs. However, the permission for

loading in the aircraft/vessel would continue to be obtained.

[Refer Circular No.18/2005-Cus., dated 11-3-2005]

25. Amendments:

25.1 Any correction/amendments 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.

25.2 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 Appraiser for cancellation before amendment is approved on

the system.

25.3 In respect of amendment in AEPC Certificate on receipt of request from the exporter,

the Assistant Commissioner /Deputy Commissioner (Exports) should allow the change of

port in EDI Shipping Bills / invoice to help exporters in getting the goods cleared without

waiting for an amendment of documents by AEPC. The ratification of the port of change

would be done subsequently by AEPC.

[Refer Circular No.46/2003-Cus., dated 5-6-2003]

26. Drawback claim:

26.1 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 Centre. 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

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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.

26.2 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.

26.3 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.

27. Generation of Shipping Bills:

27.1 After the “Let Export” order is given on the EDI system by the Appraiser, the Shipping

Bill is generated in two copies i.e., one Customs copy, one exporter’s copy (EP copy is

generated after submission of EGM). After obtaining the print out the Appraiser obtains

the signatures of the Customs Officer and the representative of the Customs Broker on

both copies of the Shipping Bill and examination report. The Appraiser thereafter signs

and stamps both the copies of the Shipping Bill.

27.2 The Appraiser also signs and stamps the original and duplicate copy of SDF and thereafter

forward the Customs copy of Shipping Bill and original copy of the SDF along with the

original declarations to Export Department. The exporter copy and the second copy of the

SDF are returned to the exporter or his agent.

28. Export General Manifest:

28.1 All the shipping lines/agents need to furnish the Export General Manifests, Shipping Billwise,

to the Customs electronically before departure of the conveyance.

28.2 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.

[Refer Circulars No.33/96-Cus., dated 17-6-1996, No.6/2002-Cus., dated 23-1-2002,

No.31/2002-Cus., dated 7-6-2002, No.3/2003-Cus., dated 3-3-2003,

No.53/2004-Cus., dated 13-10-2004, No.18/2005-Cus., dated 11-3-2005,

No.42/2005-Cus., dated 24-11-2005, No.43/2005-Cus., dated 24-11-2005,

No.1/2006-Cus., dated 2-1-2006, No.8/2007-Cus., dated 22-1-2007,

No.23/2007-Cus., dated 28-6-2007, and No.1/2009-Cus., dated 13-1-2009]

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

29.1 Bill of Entry (Electronic Declaration) Regulations, 2011 and Shipping Bill (Electronic

Declaration) Regulations, 2011 are framed in tune with statutory provisions of Sections

17, 18 and 50 of the Customs Act, 1962 to mandate self-assessment by the importer or

exporter, as the case may be.

[Refer Notifications No.79/2011-Cus (N.T.) dated 25-11-2011 and

No.80/2011-Cus (N.T.) dated 25-11-2011]

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30. 24x7 Customs clearance facility:

30.1 As a trade facilitation measure, 24x7 Customs clearance facility has been made available

for specified categories of import and export at select Seaports and Air Cargo Complexes,

as follows:

Sea ports: JNPT, Kandla , Chennai , Kolkata.

Air Cargo Complexes: Ahmadabad, Amritsar, Bangalore, Calicut, Chennai, Cochin,

Coimbatore, Delhi, Goa, Hyderabad, Indore, Jaipur, Kolkata, Mumbai, Nasik,

Thiruanantapuram, Vishakhapatnam,.

30.2 With effect from 1-7-2013 the 24x7 Customs clearance facility has been extended in

respect of all export goods at Air Cargo Complexes at Bangalore, Chennai, Delhi and

Mumbai.

[Refer Circular No. 22/2012-Cus., dated 7-8-2012 and

Instruction F.No.450/25/2009-Cis IV, dated 31-5-2013]

31. Proper Officers of Customs:

31.1 Various sections of the Customs Act, 1962 refer to “proper officer” of Customs. Accordingly,

Board has notified the following proper officers for different sections of the said Act:

S.No. Designation of the

Officers

Functions under the Sections of the Customs

Act, 1962

1. Commissioner of Customs. (i) Section 33

2. Additional Commissioner

or Joint Commissioner of

Customs.

(i) Sub-section (5) of Section 46; and

(ii) Section 149.

3. Deputy Commissioner or

Assistant Commissioner

of Customs and Central

Excise.

(i) Sub-section (5) of Section 17;

(ii) Section 18;

(iii) Section 21;

(iv) Section 22;

(v) Section 26A;

(vi) Section 28;

(vii) Section 28B;

(viii) Section 28BA;

(ix) Section 30;

(x) Sub-section (2) of Section 31;

(xi) Section 32;

(xii) Proviso to Section 34;

(xiii) Section 35;

(xiv) Section 42;

(xv) Sub-section (3) of Section 45;

(xvi) Second Proviso to sub-section (1) of section

and sub-section (2) of Section 46;

(xvii) Section 48;

(xviii) Sub-section (3) of Section 54;

(xix) Section 59;

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(xx) Section 60;

(xxi) Section 61;

(xxii) Section 63;

(xxiii) Clause (f) of Section 64;

(xxiv) Section 67;

(xxv) Section 72;

(xxvi) Section 73;

(xxvii) Section 80;

(xxviii) Section 85;

(xxix) Section 89;

(xxx) Section 97;

(xxxi) Sub-section (1A) of Section 110;

(xxxii) Section 129A;

(xxxiii) Section 129DD;

(xxxiv) Section 129E;

(xxxv) Section 130D; and

(xxxvi) Section 142.

4. Deputy Director or

Assistant Director in the

Directorate General of

Revenue Intelligence and

Directorate General of

Central Excise Intelligence.

(i) Sub-section (3) of Section 28AAA

(ia) Section 28B; and

(ii) Section 72.

5. Superintendent of Customs

and Central Excise or

Appraiser

(i) Section 13;

(ii) Section 14;

(iii) Sub-sections (2), (3), (4) and (6) of Section 17;

(iv) Section 19;

(v) Section 40;

(vi) Section 41;

(vii) Clause (b) of sub-section (2) of Section 45;

(viii) Sub-sections (1) and (4) of section 46;

(ix) Section 47;

(x) Section 50;

(xi) Section 51;

(xii) Section 54;

(xiii) Section 62;

(xiv) Clause (a) to (e) of Section 64;

(xv) Section 68;

(xvi) Section 69;

(xvii) Section 79;

(xviii) Section 83;

(xix) Section 86;

(xx) Section 92; and

(xxi) Section 93.

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6. Intelligence Officer in the

Directorate General of

Revenue Intelligence and

Directorate General of

Central Excise Intelligence.

(i) Section 37;

(ii) Section 100;

(iii) Section 103;

(iv) Section 106;

(v) Section 106A;

(vi) Sub-sections (1) and (3) of section 110;

(vii) Section 144; and

(viii) Section 145.

7. Inspector of Customs

and Central Excise or

Preventive Officer or

Examining Officer.

(i) Sub-section (1) of section 31;

(ii) Section 34 excluding proviso to Section;

(iii) Section 37;

(iv) Section 38;

(v) Section 39;

(vi) Clause (a) of sub-section (2) of Section 45;

(vii) Section 77;

(viii) Section 94;

(ix) Section 95;

(x) Section 100;

(xi) Section 103;

(xii) Section 106;

(xiii) Section 106A;

(xiv) Sub-sections (1) and (3) of Section 110;

(xv) Section 144; and

(xvi) Section 145.

[Refer Notifications No. 40/2012-Cus (NT), dated 2-5-2012 and

No. 76/2012 - Cus (N.T.) dated 27-8-2012]

31.2 The following officers have been notified as ‘proper officers’ under section 17 and section

28 of Customs Act, 1962.

S.No. Designation of the officers

(1) (2)

1. Additional Director Generals, Additional Directors or Joint Directors, Deputy

Directors or Assistant Directors in the Directorate General of Revenue Intelligence.

2. Commissioners of Customs (Preventive), Additional Commissioners or Joint

Commissioners of Customs (Preventive), Deputy Commissioners or Assistant

Commissioners of Customs (Preventive).

3. Additional Director Generals, Additional Directors or Joint Directors, Deputy

Directors or Assistant Directors in the Directorate General of Central Excise

Intelligence.

4. Commissioners of Central Excise, Additional Commissioners or Joint

Commissioners of Central Excise, Deputy Commissioners or Assistant

Commissioners of Central Excise.

[Refer Notification No. 44/2011-Cus (NT), dated 6-7-2011]

***



[1] Editor



[i] u/s. ...of CA 62

[ii] u/s, 5(2) of CA 62 : Notn. No.40/2102-Cus [NT] dt. 02.05.2012

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