A General Presentation on Cus Custo toms ms Clear Clearan ance ce Pr Proc oced edur ure e in in India India
The Authority CENTRAL BOARD OF EXCISE & CUSTOMS MINISTRY OF FINANCE DEPARTMENT OF REVENUE GOVERNMENT OF INDIA
Clearance Procedure 1. Import Clearance Procedure 2. Export Clearance Procedure
Import Clearance Procedure
Categories of Import Goods 04 Categories of Import Freely Importable Items Canalised Imports Items under this category can As the name suggests the be imported only through items under this category are specified channels or free to be imported and do Government agencies. not require any License. Restricted / Licensed Imports Prohibited items As the name suggests the Items under this category are items under this category are restricted and require NOT permitted to be License for importation. imported at all. Note: List of items under above categories are published in the Foreign Trade Policy. Importer / Exporter must have IEC (Importer Exporter Code) issued by DGFT (Director General Of Foreign Trade, Government of India).
Import Clearance Procedure Upon Cargo Arrival, the Importer has two options: • To Clear immediately, or • To Store under Bond and clear later BONDED CLEARANCE FOR WAREHOUSING HOME CONSUMPTION Cargo is cleared for delivery Cargo is put in Bonded Warehouse upon payment of applicable duties. and cleared later upon payment of applicable duties. Importer takes away his cargo and no storage charge is applicable, if Bonded Warehouse storage charges done so during the free period. will be applicable during the period of storage.
Haulage to ICD Haulage / Drayage to Inland Container Depot (ICD) from port of discharge Container moves to CY for Cargo Discharged at Sea Port Clearance, or to Rail Head for Haulage by Rail to ICD Ocean Carrier agent files Carrier Agent gives Transshipment Bond with Movement order for Inland Haulage Customs if final destination is to specific destination ICD Inland Container Depot Inland Haulage is normally by Rail. It can also be by Road. Customs Clearance procedure is same at ICD’s.
Import Clearance Procedure Clearance for Home Consumption Import Clearance can be under any one of the various promotional schemes in which an Industry is categorized, example; EOU, SEZ etc. Filing ‘Bill of Entry’ (BE) Major Documents: via EDI (Electronic Data Interface) EDI Filing: Commercial Invoice or Manually with all documents Electronic input Packing List Generation of Checklist Bill of Lading/AWB Generation of BE no. Delivery Order Noting vis-à-vis IGM Cert. of Origin Submit documents under Cargo catalogue checklist and BE no. Import/Industrial license Processing of ‘Bill of Entry’ by Customs officials Appraisal: Assessment: Appraisal: Appraisal & Assessment Import Permissibility Import Permissibility Calculation of duties as as per EXIM Policy. as per EXIM Policy. per cargo classification. Correctness of docs Correctness of docs and declarations. Advance cargo exam if and declarations. Correctness of value. necessary to determine Correctness of value. Fraud Prevention. classification and Fraud Prevention. calculate duties.
Import Clearance Procedure Clearance for Home Consumption Payment of Duties Mode of payment: Advance Examination: as assessed as per tariff Online under registration Upon receipt of Exam Customs Nominated report, cargo classification banks. is determined and duty Demand Draft. Calculation Is made. Cargo Examination Examination: in line with appraised documents Partial as percentage at random. Full 100% cargo examination. Customs ‘Out of Charge’ Cargo Customs Cleared & ready for delivery
Export Clearance Procedure
Categories of Export Goods 03 Categories of Export Freely Exportable Items Negative List of Exports As the name suggests the As the name suggests the items under this category are items under this category are NOT permitted to be free to be exported and do exported at all. not require any License. Restricted / Licensed Exports Items under this category are restricted and require License for exportation. Note: List of items under above categories are published in the Foreign Trade Policy.
Export Clearance Procedure Facility of Export Factory Stuffing of Containers Dock / CFS stuffing The Exporter has permission The Exporter does not have for stuffing the container permission for stuffing (FCL) at his factory premise container (FCL) at his factory under supervision from premise. Central Excise Official. LCL cargo also fall under this Permission is given by category. Central Excise & Customs. Air Cargo Carting The export cargo is carted at the airport nominated warehouse of the airline. Export can be done under any one of the Promotional schemes applicable using the requisite Application and Declaration for export.
Export Clearance Procedure Factory Stuffing of Containers Empty Container picked up from Excise/Customs official intimated CY and transported to factory . for export of cargo from factory. Container stuffing under Excise Export documentation made official’s supervision. ready at factory. Commercial Invoice Official checks documentation. Packing List Random open check of cargo. Shipper Declaration Loading cargo into container. Purchase Order Closing & Sealing by official. SDF(Statutory Declaration Form) Endorsement of export docs. ADC(Authorized Dealer Code) Sealed envelope of docs to AR-4 (excisable goods) . gateway port customs. Shipping Bill (Export Application) Trucking permission given. Importer Exporter Code (IEC) Loaded and Sealed container All docs filed for Customs moves to port of Loading . Clearance at Gateway port / CFS. Documents cleared. Container seals inspected. Container moves to designated ‘Let Export’ Order given. Terminal for loading on vessel.
Export Clearance Procedure Dock / CFS Stuffing of Containers Export Documentation made and filed at Customs at Dock / CFS Commercial Invoice Export Cargo moved from Packing List Factory to Dock /CFS Shipper Declaration Purchase Order SDF(Statutory Declaration Form) ADC(Authorized Dealer Code) Customs clearance process for AR-4 (excisable goods) export of goods. Shipping Bill (Export Application) Appraisal of Shipping Bill with all Importer Exporter Code (IEC) export documents. Permissibility of export. Cargo Stuffing into Container Cargo Valuation. Calculation of duty, if applicable. Verification of incentive claimed. Cargo Examination Stuffing / Consolidation permission. Stuffing under Official’s supervision. Container sealed with seals. Container ready for export. Documents released and Container moves to designated ‘Let Export’ order given. Terminal for loading on vessel.
Export Clearance Procedure Air Cargo Export Export Documentation made and filed at Customs at Airport Export Cargo moved from Commercial Invoice Factory to Airport Warehouse Packing List Shipper Declaration Purchase Order SDF(Statutory Declaration Form) Customs clearance process for ADC(Authorized Dealer Code) export of goods. AR-4 (excisable goods) Shipping Bill (Export Application) Appraisal of Shipping Bill with all Importer Exporter Code (IEC) export documents. Permissibility of export. Cargo Valuation. Calculation of duty, if applicable. Cargo Examination Verification of incentive claimed. Stuffing / Consolidation permission. Cargo Examination by Official DGR Check Documents released and Cargo Carted to Airline Shed ‘Let Export’ order given. & loaded after cooling period
F A Q 1. Import Clearance Application is commonly known as BILL OF ENTRY 2. Export Clearance Application is commonly known as SHIPPING BILL 3. Import /Export can fall under any of the various Schemes for which application would slightly differ along with Declaration. All other documents remain same. 4. Filing of documents and clearance is normally done by Licensed CHA (Customs House Agent) on behalf of the importer/exporter. Self clearance may be permitted under some circumstances. 5. Customs Duties is to be paid before the completion of clearance process. 6. Claims under promotional schemes are filed and processed separately . Reference Websites: Central Board of Excise & Customs : www.cbec.gov.in Director General of Foreign Trade : www.dgft.gov.in
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