A.
As
per (Section 2 (23)
of the
Customs Act 1962) Import
means bringing any goods into India from a place outside India. It has been the contention
of the department; the import is complete the moment the goods have been brought
within the limits of the territorial waters of India. The Gujarat High Court has taken the
view that when Section 12
of the Customs Act
refers to ‘exportation or importation into’ of goods the reference is to the
landmass of India not the Territorial waters of India (Prabhat cotton & Silk
Mills v. U.O.I – 1982 (10) E.L.T. 203(Guj.DB)
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Q.2
What are the basic requirements to import goods?
A.
Any body intending to import
goods for commercial purpose has to submit an application to the Directorate
General of Foreign Trade and obtain Importer and Exporter Code (IEC)
number. In the case of 100% EOUs /
EPZs the importer and Exporter Code (IEC) numbers are allocated by the
Development Commissioner of Export Processing Zone concerned. This number has to be indicated in the
documents filed with the Customs for clearance of the imported goods. This number is not required in the case
of import of gifts and baggage. From April’2001 the IEC will be replaced with
the PAN number issued by the Income Tax authorities. This will be the uniform
identification number for transaction with any Government agencies like Customs,
Central Excise etc.
Every
goods imported shall be in conformity with Section 11 of the Customs Act 1962,
Foreign Trade (Development & Regulation) Act 1992 read with the EXIM
policy in force. Those goods which are not falling within the parameter of EXIM
Policy are normally confiscated or allowed to redeemed on payment of fine /
penalty.
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Q.3
What is Import General Manifest (IGM)?
A
Import General Manifest (IGM) is a document to be filed in prescribed
form with the Customs by the carriers of the goods i.e., the Steamer Agent or
Airlines in terms of Section 30 of the Customs
Act 1962. This
document indicates the details of all the goods to be unloaded at the Port from
a vessel (ship) or Aircraft.
Particulars of goods to be transshipped, private property of the crew and
Arms and Ammunition, Gold and silver should also be declared separately
irrespective of whether for landing, for transshipment or for being carried as
same bottom cargo. The IGM has to
be filed within 24 hours after arrival of the Ship /Aircraft. However, in the
case of vessel (ship) the Manifest may be delivered even before the arrival of
the vessel. This is known as ‘Prior Entry Import General Manifest’. This system enables the importers to
file Bills of entry and get them assessed and pay duty so that the goods can be
taken delivery soon after the unloading.
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Q.4
When should the Bill of Entry
be filed?
A.
Bill of entry can normally be filed to clear the goods after the Import
General Manifest (IGM) is presented to the Customs Officers by the Steamer
Agents / Airlines, as the case may be.
In exceptional cases the customs authorities may note the Bill of entry
before the Manifest is filed. In addition to the goods entered in the vessels
manifest Bills of Entry are also required for the clearance of :
(a)
Ship’s Stores, if in considerable quantities
(b)
Ship’s ballast such as stone, sand shingla etc.
(c)
Salvaged goods
(d)
“Sweepings” of Import Cargo.
No Bill
of Entry is however required in the following cases :
(i)
Passengers Baggage
(ii)
Favour Parcels
(iii)
Mail Bags and Post Parcels
(iv)
Boxes, Kennels of Cages containing live animals or birds
(v)
Un-serviceable stores, e.g. Dunnage wood, Empty bottles, drums etc. of
reasonable value.
(vi)
Ship’s stores in small quantities for personal use.
(vii)
Cargo by sailing vessels from Customs Ports when landed at open bunders
only.
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Q.5 Can the importers/Exporters themselves
clear their goods or is it necessary to appoint any agent?
A.
The importers/exporters themselves can clear the goods by filing
necessary document after taking permission from the Asst. Commissioner/Deputy
Commissioner in charge of Import section. The agent, if appointed, should
be a holder of a valid license issued by the Commissioner of Customs. Such agents are known as Customs House
Agents.
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Q.6
What the
different kinds of Bills of Entry?
A
There are generally three kinds of Bills of Entry.
(i)
Home consumption Bill of entry in white colour: This has to be filed when
the importer wants to clear the goods on payment of duty and remove them to his
premises immediately. (Section 46 of the Custom
Act 1962).
(ii)
Into bond Bill of entry in buff colour: It is also known as Warehousing Bill of
Entry. This has to be filed when
the importer does not want to pay duty immediately but prefers to keep the goods
in a warehouse and pay the duty subsequently and clear the goods for home
consumption. (Section 46 and
60 of Custom Act 1962)
(iii)
Ex-bond Bill of entry in green color: This has to be filed when the importer
wants to clear the warehoused goods for home consumption on payment of duty
(Section 68 of Customs Act 1962).
Note: In
respect of importation by Defence establishments, Pink Bills of Entry are used
for noting and issuing pass out orders.
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Q.7 What
are the documents to be filed to clear the imported goods for home
consumption?
A.
The main documents to be filed are the home consumption Bill of Entry in
the prescribed form after filling up various columns are as under:
1.
Copy of order/contract.
2.
Supplier’s invoice in four copies.
3.
Copy of the letter of credit.
4.
Import licence.
5.
Bill of lading (original and non-negotiable).
6.
Packing list (2 copies).
7.
Weight specification.
8.
Freight insurance memo
9.
Manufactures test certificate.
10.
Exchange slop for purpose of exchange rate.
11.
Certificate of origin.
12.
Delivery order issued by shipping company, its agent or carriers.
13.
If spare parts are being imported invoice should indicate unit price and
extended total of each item.
14.
If invoice is for FOB, freight charges and insurance premium amount
certificate should be attached.
15.
OGL declaration.
16.
No Commission letter to be given by importer i.e., Agent’s Commission, if
any has not been paid in India.
17.
Customs declaration (4 copies)
18.
Catalogue/write/up/drawing for machinery items.
19.
Importer Exporter Code Number.
20.
If second hand machinery is being imported then Chartered Engineers
certificate is necessary as per the Import Export Policy
21.
If steel is being imported then analysis certificate from
manufacturers.
22.
In the case of chemicals & allied products like synthetic resin wax,
literature showing chemical composition.
23.
Textile Commissioners endorsement in respect of textile items.
Apart
from the above the importers are also required to file declaration in the
prescribed form by the importers regarding correctness of the contents and the
value of the goods, The Assessing
officer may call for any other documents/information if found necessary, to
determine the correct value and correct rate of duty (Section 46 and 17 of the
Customs Act,. 1962)
For
Chapter wise Details of documents to be filed please see under Customs
Procedures for Clearance of Imported goods
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A.
The importer/authorized agent has to file a home consumption Bill of
Entry in quadruplicate in the Import Department of Customs after filling up
various columns in the Bill of Entry along with documents mentioned above. The noting clerk in the Import
department verifies the details furnished in the Bill of Entry with reference to
the Import General Manifest and assigns a serial number and affixes the date
stamp and initials it. The
Bill of entry is then forwarded to the assessing officer (Appraiser/
Superintendent) for assessment.
After scrutiny of the documents the Assessing officer may depending upon
the circumstances, assess the Bill of Entry under two different systems known as
(First appraisement (First Check),
Second appraisement (Second Check)). The Bill of Entry is then counter signed
by the Assistant Commissioner.
Clearance of goods for home consumption is allowed after examination of
the goods and on payment of duty.
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Q.9
What is First Appraisement system (First Check)?
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Q.10 What
is second appraisement (Second Check)?
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Q.11 What
is the time limit to clear the imported goods?
A.
Any imported goods should be cleared for home consumption or warehoused
or transshipped within thirty days from the date of unloading the goods at a
Customs station or within such extended time allowed by the proper officer
(Section 48 of the Customs Act
1962)
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Q.12 What
is the time limit allowed to pay duty on a Bill of entry assessed to
duty?
A
Duty has to be paid within two days from the date on which the Bill of
entry is returned after assessment to the Importer/agent for payment of
duty. If the duty is not paid
within the stipulated time, interest on amount of duty is also payable. (Section
47 of the Customs Act 1962)
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A
The importers have to make a representation to the Assistant Commissioner
of the Customs for permission to examine the goods before filing the Bill of
entry in the presence of the Customs Officer to ascertain the details of the
goods and then file the Bill of Entry (Section
46 of the Customs Act 1962). They have to follow First
Appraisement Procedure as enumerated above.
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Q.14 What
are the advantages in presenting Bill of entry before the arrival of the Vessel
/ Aircraft?
A
If all the documents are available, the prior entry bill of entry can be
presented and got assessed and the duty if any paid . Therefore, as the goods land, they can
be examined and the delivery taken without any loss of time and without paying
demurrage charges.
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A
An import license is normally issued by license issuing authority
indicating the port of registration as requested by the importers. In other cases where port of
registration is not mentioned, the port where first importation takes place, the
licences are registered. Customs
authorities debit the quantity and value of the consignment, whenever the goods
covered by that license, are imported through that Port before the goods are
allowed for clearance. But, if any
consignment covered by that license is landed in some other port and if it is to
be cleared there itself, the importers have to make an application to the
customs authorities where the license is registered requesting them to issue a
Telegraphic release advice (TRA) / Release advice to the other custom house
indicating the details of the import license, quantity, value, etc. Accordingly, the release advice is
issued from the port of registration to the other Custom House after debiting
the quantity and value in the license. The other custom House allows clearance
of the goods on the basis of such advice if it is found valid to the goods
imported.
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A
The importer has to produce acceptable documentary evidence to show the
Customs authorities where the goods are landed, that they are in possession of a
valid import license, but not able to produce it immediately, and request for
releasing the consignment on execution of a license bond with surety, pending
production of the license/release advice.
The Customs authorities may allow clearance on the strength of such bond
and guarantee executed (Section 143 of customs
Act 1962).
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A
When an importer or exporter is unable to produce any documents or
furnish any information necessary for assessment of duty on the imported or
export goods, he may request for provisional assessment of the goods pending
production of such documents, furnishing such information.
Where the importer or the exporter has
produced all the documents and furnished full information but the proper officer
of customs may deem it necessary to make further enquiry for assessing the duty,
he may resort to provisional assessment, pending such enquiry. (Section 18 of The Customs Act 1962 authorizes
provisional assessment)
For making provisional assessment the
importer or exporter is required to execute a bond for the differential amount
of duty between the duty provisionally assessed and the duty most likely to be
assessed at final assessment stage.
The importer or exporter is also required to deposit with the customs a
sum not exceeding twenty percent of the provisional duty as determined by the
proper officer of customs. On
execution of bond and depositing the sum, goods may be released .
On
receipt of all the necessary documents/ information or on completion of enquiry,
the proper officer of customs finalizes assessment. If the duty finally assessed
is more than the provisional duty collected, the difference is payable by the
importer/exporter. If the duty provisionally collected is more than the duty
finally assessed the difference is refundable to the importer/ exporter.
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A
The owner of any imported goods may relinquish his title to the goods at
any time before an order for clearance of goods for home consumption is passed
or the proper officer of customs passes an order permitting the deposit of the
goods in the warehouse. Then
the owner of the goods shall not be liable to pay duty on such goods
(Section 23 (2)of the customs act
1962). In
other words, once the proper officer of customs passes an order permitting
clearance of goods for home consumption or for depositing in a warehouse the
owner loses the right to relinquish his title to the goods and his liability to
pay duty remains. It may be also clarified that goods once warehoused cannot be
abandoned or title can be relinquished.
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Q.19 What is
‘Green Channel procedure’ for clearance of imported goods?
A.
Green Channel procedure has been introduced
in major Custom Houses on experimental basis to expedite clearance of imported
goods. This procedure is applied
only in respect of certain specified Imports. Some of such imports identified
are-
a)
Goods imported by Government departments and public sector undertakings,
which do not require physical identification for the purpose of either ITC
classification/restrictions or customs classification.
b)
Imports under project Import Regulations.
c)
Bulk imports sourced directly from reputed suppliers.
d)
Consignments, which consist of single product of a well-known brand or
specification, tested earlier land, covered by valid test report of an earlier
import.
e)
Imports by imparters with proven identity and unblemished record of past
conduct.
The Bills of Entry under this procedure are
processed and assessed to duty under the second appraisement system ie.,
assessment and duty collection is done first and then consignment examined. In such cases the Assessing Officer
indicates on the reverse of the duplicate Bill of Entry to the Appraiser in
charge of examination to ‘Inspect the lot and check marks and numbers on the
packages’. After inspection of the
lot and marks and numbers of the packages with reference to the declaration in
the Bill of Entry and other connected documents, the Docks Appraiser gives
‘Passed out of Customs’ order. The
Docks Appraiser, in the presence of Assistant Commissioner may, examine the
goods in exceptional cases. Any discrepancy on examination with regard to
description, quantity, weight, declaration made with regard to value, etc, will
bar the importer from utilizing this scheme in future. The department may also initiate any
other action under the law depending upon the nature of mis-declaration
etc. The facility of ‘Green
Channel’ clearance is not extended in cases of goods sought to be cleared under
the “Self Assessment” procedure.
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Q.20 What is
“Self assessment procedure” for clearance of imported
goods?
A
To simplify import procedures and expedite clearances the Government of
India introduced the procedure of ‘Self Assessment’, of Bills of Entry in major
Custom Houses. According to this
procedure the importers of repetitive imports can assess their own Bills of
Entry showing previous clearances and assessment of the same goods. The Bill of Entry under this procedure
will have a ‘green coloured band’ at the edges to distinguish it from other
Bills of Entry. Such Bills of Entry
after self-assessment are presented to the noting clerk in the Custom House who
assigns a Sl.No. and affixes the date stamp with initials. The amount of duty payable is mentioned
on the Bill of Entry. Thereafter,
the importers/their agents should pay the duty in the Customs Treasury (Cash
Section). After collecting duty the
cash section detaches the original copy of Bill of Entry and the remaining
copies with other documents are sent to the ‘Appraiser in charge of examination
who will complete the assessment of the Bill of Entry with reference to the
documents submitted along with a copy of Bill of Entry for the same goods
assessed and cleared earlier. The
goods are then examined as usual and clearance is allowed if the goods are found
to agree with the declaration.
Such
Bills of Entry are subjected to the post clearance audit . This ‘Self Assessment ‘ procedure is now
extended only in the major Custom Houses in repect of the following cases.
i)
Imports made by (a) Government departments (b) public sector undertakings
and other importers with proven identity and unblemished record of past
conduct.
ii)
The goods in question do not require any import license/Customs clearance
permit nor or they subject to any restriction/prohibition.
iii)
The assessment and release of goods do not involve acceptance of bond
including test bond and end use bond.
iv)
The assessment does not involve original examination of the goods in
question.
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Q.21 What is the Procedure for importing
goods through Post? What is the relevant date
to levy duty on goods imported by post?
A.
Subject to prohibition/restrictions goods(either gifts or commercial) can
be imported by post. All the
foreign parcels are routed through foreign post offices. The postal authorities
prepare a list called ‘Way Bill’ giving the details of the parcels and present
the same along with the parcels to the customs officers posted there. After examination, the parcels are
allowed to be delivered to the addressee if nothing objectionable is found and
no duty is chargeable. In case duty is chargeable the amount of duty is
indicated by the customs. The
postal authorities collect the duty as indicated by the customs and the postal
service charges, if any, and deliver the parcel to the addressee. In case any documents are required to
assess the parcel the Customs authorities call for the same from the addressee
and complete assessment on receipt of the required documents, and thereafter the
postal authorities deliver the parcels to the addressee after collecting the
duty assessed by customs and the postal service charges , if any.
Relevant
Date : The relevant date to levy duty on goods
imported by post is the date on which the postal authorities present to the
proper officer of Customs a list containing the particulars of such goods for
the purpose of assessment.
If such goods (post parcels) are imported by a vessel (ship) and the list
of the goods is presented by the postal authorities to the Customs Officer
before the date of arrival of the ship the rate of the duty in force on the date
of arrival of the vessel is applicable (Section
83 of the Customs Act,1962).
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