F. NO. 7/2000 EDI DATE: 08 –02-2002

  PUBLIC NOTICE NO. 11 / 2002

Importers and Exporters, Customs House Agents, trade in general and all others concerned are hereby informed that it is proposed to register all the Bonds / Undertakings executed with the Customs along with related Bank Guarantees / Sureties in the system. The details of the Bond Management System are being notified as follows for the information and compliance of all concerned. It has also been decided that the following categories of Bills of Entry would be processed under the automated system. The date from which this would be introduced would be communicated by a separate Public Notice shortly. 

Bill of entry relating to Goods :-

The format for data entry of B/E at the Service Center has been revised and is appended as appendix A to this Public Notice. For convenience of correct entry of data in the System, the related details may be carefully indicated in the relevant fields.  

The details of the proposed changes are indicated in the following paragraphs :- 

ICES proposes centralized Bond Cell, which will be responsible for maintenance of documents related to Bonds, Bank Guarantees and Undertakings. Officers of the rank of DC/AC shall handle the Bonds. The Bond Cell will be responsible for the following: 

Both, the Revolving / continuity and the Specific Bonds are registered and maintained in the Bond Cell. The Import Section determines the Bond requirement. The type and the amount of bond are decided by the Superintendent (Appraising) and are approved by the Deputy/Assistant Commissioner. However system will assist in determining the type of Bond / BG and value. Bond requirement details will be printed on the BE after the assessment. The details include the type of Bond, amount and the Bank Guarantee. 

 Registration of Bond 

The bond module provides for registration of all Bonds / Undertakings, Bank Guarantees, Sureties etc. in the system. The importer shall furnish the following details for registration: -

Bonds / Undertakings 

BG Details

 Surety Details

Cash Deposit

The bond detail shall be entered in the Bond Cell. On entry, system will assign a job no. and check list is generated. The importers / CHA shall satisfy with the correctness of details. The corrections if any shall be made and job shall be submitted.  

After submission, the job shall be forwarded to AC /DC designated to accept the bond. The importer shall present the original bond documents to the respective designated AC / DC for acceptance. 

The AC /DC shall observe all the instructions regarding acceptance of bond issued by the Board / Custom House from time to time. After satisfying that the documents submitted are in order & acceptable, the AC/DC shall retrieve the bond details on screen by entering the job no. and view the entries made in the system. If the information in the system match with the documents & conditions for acceptance of the bonds are satisfied, the AC / DC may accept the bond in the system. The AC/ DC can also make corrections in the system if so required. After acceptance of the bond by AC / DC the bond documents shall be taken by the bond officer / bond clerk. The Bond officer/ Bond clerk after receipt of the Bond / BG / Security etc. shall enter in the system, location of bond storage where the bond documents have to be physically stored. At this stage the system will generate the bond registration No. This Regn. No. has to be endorsed on the original documents and also communicated to the importer for their future reference. 

System would maintain a single running Serial No. for all types of Bonds.

The Bond No. need not be initialized every year.

Bond No. to start with Serial No.100001.

Processing of Bill of Entry (with Bond) 

1. Declaration in the Service Center

In case the importer has already registered a Continuity Bond with the Bond Cell, he has to specify the type of Bond and Registration Number in the Service Centre declaration. However, the Bond value and BG amount is determined by the Supdt (Appg). If Continuity Bond is not there, no declaration (bond) need to be given in the Service Centre. Bond details will be printed on the Checklist. 

In case of EOU Bond already submitted at the Central Excise Commissionerate / Office, the Certificate Number has to be provided. If Certificate Number is declared, EOU bond is not required. 

At the submission stage, the validity of bond is checked. 

2. Appraising 

The Supdt (Appg) has the option to ask for bond as condition of assessment. The following type of Bonds can be opted:

 Provisional Duty Bond - General

Test Bond

End Use Bond / Undertaking

Transit

Provisional Duty Bond - Project Imports

Extra Duty Deposit

EOU Bond

Warehouse Bond

 BE Type `W’ : Warehouse Bond is mandatory.

 EOU Bond : In case of items, where EOU Notification is claimed, EOU Bond or a procurement Certificate from Central Excise authorities is mandatory.

 Provisional assessment : If any of the items is assessed provisionally, the Bond (Provisional or Test) is mandatory.

 The Supdt (Appg) has to specify Type of Bond, Bond Amount, BG%, BG amount, basis for bond amount at the BE level.

 AC /DC has to confirm the action of Supdt (Appg). Auditor has no option w.r.t bonds. However, he can view the Bonds requirements.

 Bond requirement details :

 On completion of assessment, the Bond requirement details will be printed on the Assessed Copy of the BE.

 3. AC (Bonds)

 Where the Bond has not been executed before assessment, on completion of assessment and payment of duty (wherever required ) the importer is required to execute the Bond in respect of the Bill of Entry in question before goods’ registration in the Shed. If the Bond has not been executed against the Bill of Entry the goods registration cannot be done.

 The Importer has to give a written request to AC (Bonds) for debiting the bond against a BE. The importer shall specify the Bond Registration No. BE No. and Date.

The AC (Bond) has to retrieve the Bond and debit the Bond and BG. He/She has the option to view the BE.

Before debiting, the system will pose the following query:

 If the amount to be debited is more than the credit balance in the Bond and BG Ledgers, the system will not allow debit and the AC has to raise a query to the Importer for filing fresh bond /BG.

 The system will not allow goods registration and out of charge, if the debit entry is not made against the BE in the Bond and BG Ledgers.

 4. Bond re-credit

 AC (Bonds) has the option to re-credit value after finalization of assessment.

Following entries will be made in the Bond and BG ledgers;

  A continuity or a specific bond shall be accepted & registered in the system. A continuity bond registered in the system can be utilized in respect of an electronic as well as manual bills of entry. For debiting manual bill of entry the bond officer shall select the option of MBE-debit and enter the details of the manual bill of entry and amount of bond / BG etc.. After debiting, a debit slip will be generated which can be printed one copy of slip should be attached with the B/E and other copy given to the importer.

 In respect of Bills of Entry where processing has not yet been automated, it would still be possible under the aforesaid Bond Management System to register the bond in the system and utilise it against a manually processed date of entry as per procedure indicated alone in respect of a continuity / revolving bond.

 Consequent upon the introduction of the Bond Management System, changes are being proposed in the processing of Bills of Entry for Warehousing of Imported goods and goods assessed to duty provisionally. The Bills of Entry would be linked to the respective Bonds and the system will maintain an account in this behalf. The procedure for processing of such Bills of Entry is briefly indicated below :-

 A. Warehousing bill of entry

For Warehousing bill of entry the type of bill of entry should be indicated as ‘W’. The importer may indicate the bond details if a continuity bond has already been executed in the same manner as has been explained in respect of 100% EOU.

The processing of warehousing bill of entry shall continue to be as at present in the respective groups on first come first serve basis.

 The system at the time of assessment of a Warehousing B/E shall display before the Supdt (Appg) the requirement of bond equal to double the amount of duty payable. The Supdt (Appg) at the time of the assessment can change the bond /BG amounts. Where the bond details have been entered at the time of data entry the same shall be displayed by the system & debit details will be printed on the bill of entry. Where bond has not been debited at the time of data entry of B/E, bond requirement shall be printed along with the print of the bill of entry.

  The bond shall be registered with the designated bond Officer & debited in respect of a B/E . Unless the bond is debited in the system, bill of entry cannot be registered for examination & out of charge given at the shed / docks.

 B. Provisional Assessments:-

 Where an item of the bill of entry is assessed provisionally by the Supdt (Appg) irrespective of the fact, whether EOU /WHg Bill of Entry , PD bond will also be required in addition to the EOU / WHg. Bond. The details of the bond can be entered at the time of data entry as explained for EOU bill of entry. The type of bond for provisional assessment shall be ‘PD’ .

The System will indicate sum of the duty assessed provisionally for assistance of the Supdt (Appg) for determining the amount of bond / BG for debiting. The Supdt (Appg) can change the amount of bond and/ or B.G. for debiting.

  If the bond details has not been entered at the time of data entry, the system will enforce bond. The Supdt (Appg) shall specify the amount of bond and bank guarantee. The duty if any assessed shall be deposited with designated bank as usual. The bill of entry will not be registered in the shed / docks for examination & out of charge till the duty is paid and the bond and BG as specified has been debited. The details of bond debit or the bond requirements shall be printed on the provisionally assessed B/E. Details of a debited bond will also be printed on the Importer’s copy and Exchange control copy of B/E.

 In case any Cash deposit is required to be taken, the Supdt (Appg) can specify the amount of Cash deposit, the Challan for Cash deposit will also be printed with the assessed copy of B/E which will also be deposited with the designated bank like the duty and fine/penalty.

  2. High Seas Sales Consignments

  This category would cover all imports where the goods have been transferred by the original importer by sale or otherwise before their clearance from customs. As is currently the practice, the software has been designed to provide for both the options namely, the ultimate buyer paying a percentage loading over the invoice price or a fixed sum in addition to the invoice price to arrive at the final price payable.

 Where the goods have been purchased on High Seas Sales basis, option `Y’ should be indicated at S.No 9 in the format. Against S.No 10, the IEC & Branch code of the original importers i.e. Seller of goods on high seas, should be indicated. In the field of invoice details after the field of currency, new fields for indicating the costs incurred over and above the invoice value for purchasing goods on high seas have been added. Where such expenses are incurred, (whether actually paid or payable) as a percentage of invoice value, the percentage rate should be indicated in the field "Rate". Where a fixed amount is paid or payable over the invoice value such amount should be indicated against the field ‘amount’ and shall be in Indian Rupees. The additional amount would get distributed proportionately amongst the various items in the invoice for determination of assessable value.

  In case goods relate to more than one invoice, the High Seas sales charges should be indicated against each invoice, proportionate to the value of goods in the invoice.

  The system shall add these charges to the CIF value of the goods for computation of value for the purpose of levy of duty.

The data entry operator at Service Center shall enter these details in the relevant field in the system. These details will be printed on the check list. The IEC & the name of the seller of the goods shall also be printed at the end of the check list for verification by the Importer / CHA.  

After submission, the B/E shall be processed under the EDI-System as a normal B/E. The Supdt (Appg), Auditor, AC/DC at the time of processing the B/E will be able to view the details of rate or value of High Seas charges. The Supdt (Appg) assessing the B/E will also be able to change the rate or value of High Seas Sales charges through change option. Principles of natural justice would need to be followed wherever required.

The details of the rate or value of High Sea Sales Charges and the IEC with name of the Seller will also be printed on the assessed copy, & Importer’s & Exchange Control copies of the B/E.

 3. Imports by 100% EOUs :-

All the 100% Export Oriented Units including STP / EHTP etc. will be required to be registered as EOU in the System before filing of a bill of entry. The designated officer shall make data entry for registration of an EOU. All verifications and authentications including all checks to determine the eligibility of the importer to be registered as an EOU and for exemption from duties shall be carried out before a unit is registered in the System as an EOU.

 Following details should be furnished by the EOU for registration.

 Importer Exporter Code (IEC)

1. IEC Branch Code.

3. EOU type I A – EOU - General

4. EOU Approval No.

5. Approving Authority

6. Approval date

7. Valid till

8. ECC ( Assessee Excise Control Code)

9. Central Excise office location code

Commissionerate

Separate Registration would need to be made for each factory (based on the various branch codes of the IEC) in case a 100% EOU has more than one factory.

 ( B ) Filing of Bill of Entry

Entry of Bond details

In the appendix - A format for declaration for data entry, S. No. 18 has been added to capture the details of registration of various bonds including the bond for 100% EOUS. 

For a Bill of Entry for imports by 100% EOU indicate :- "Y" for Bond No………. if bond is already executed with customs at the point of import; `C’ Cex. certificate. No…………DT……………" where the bond is executed with Central Excise authorities; and a procurement certificate has been issued by them. ‘N’ where neither bond is executed nor Central Excise Certificate is obtained before presenting the Bill of Entry. Where the option given is ‘N’ the system shall require the bond to be executed after assessment but before registration of B/E for examination & out of charge.

  Procedure for registration of bond/B.G. has been separately indicated in this Public Notice

  The importer should indicate in the format the type of bond as "EO" for 100% EOUs and indicate details of the Bond No. or the Central Excise certificate as the case may be. If Bond or Central Excise Certificate are not indicated it would be ‘N’ i.e. NONE.

  The data entry operator shall enter the related option Y or C and enter the details of the bond or the certificate as the case may be in the respective field in the system.

   In the field of claim of assessment normal details shall be indicated. However, in the fields of "Additional information for claiming benefits under specified exemption schemes" in Col.(I) the prescribed Exim code for the relevant scheme related to imports like EOU/STP/EHTP would be required to be indicated. The Exim codes for the various schemes have already been notified in the Handbook of Procedures issued by DGFT. List of codes is enclosed for ready reference. In Col.2 the relevant applicable exemption notification No…………/Year……….with S.No… of item in the notifications is required to be indicated against the respective item.

   The data entry operator shall enter the code of EOU against the field Exim code …………………… after entry of Exim code enter notification no. ../yr & s.no. After completion of entry of all the items of the bill of entry, a check list will be printed. In the check list against an item where EOU exemption is claimed the words (EOU) & notification no. /yr & S.No. will be printed. At the end of the check list details of bond indicating the bond no. bond code, amount debited, Bank Guarantee debited or the details of certificate for central excise will be printed.

  The importer / CHA shall check the correctness of the details in the check list & return it to data entry operator for submission of the same in the system. On submission, the bill of entry shall be directed to the concerned Supdt(Appg) for assessment. An unassessed copy of the bill of entry after submission shall be taken by the importers.

  3. Appraising of EOU B/E. 

The importer /CHA shall present the un assessed bill of entry along with the bonds / certificate and other documents supporting the claims of assessment under EOU to the designated Supdt (Appg) for making assessment. 

The Supdt (Appg) shall recall the relevant bill of entry on the screen and complete the assessment on the system after scrutiny of the documents. The system will display EOU bond details or Central Excise certificate. The Supdt (Appg) will also be able to view the details of EOU approvals. 

In case the importer has already executed the bond and it is registered in the system, the system will display the amount debited in the bond which is equal to the duty foregone. If the Supdt (Appg) desires to change the amount for debiting the bond he can select through change option and change the amount for the bond debit & BG. Where the BG is not required the amount in the field of BG should be entered as 0(Zero).

The Supdt (Appg) has the option of removing EOU notification where the importer is not found to be eligible for the exemption.

Where the importer has not furnished bond or central excise certificate, the system will require the assessing officer to specify the bond amount / BG amount. The Supdt (Appg) shall specify the Bond & Bank Guarantee amount in system. After processing by the Supdt (Appg) the B/E will be audited by the Auditor and thereafter processed by the AC/DC Appg. After the assessment print of the Bill of Entry can be obtained. The details of the bond / BG shall be printed on the bill of entry where neither bond is debited nor a central excise certificate is indicated the system will print the bond / BG requirements as specified by the Supdt (Appg). 

In case the importer has executed the bond with the central excise authorities, he shall produce the procurement certificate issued by the central excise officer to assessing officer along with the unassessed copy of the Bill of Entry. Assessment of Bill of Entry would be done after due verification of all the concerned documents. System would generate a communication letter to Central Excise authorities for the consignment, requesting for confirmation about re-warehousing. System would enable monitoring of the movement of the goods through appropriate MIS reports. 

After completion of the assessment the bill of entry shall be put to Bond queue for execution / debiting of bond. Where any duty amount has been assessed, the duty shall be deposited in the bank as usual. Unless the Bond Officer completes the action of debiting bond in the system, the B/E will not be available for registration for examination and out of charge.  

Procedure for registration of Bond / BG has been explained earlier in this Public Notice.

The difficulty if any faced in carrying out with the above procedure may be

brought to the notice of System Manager.

(P. KARTHIKEYAN)

COMMISSIONER OF CUSTOMS

1. (a) CHA Licence No. :

(b) Name :

(c) Address of the CHA :

2. Importer Particulars

(a) Importer – Exporter Code(IEC) : (b) Branch Serial Number

(c) Name of the Importer :

(d) Address :

3. Type of Importer(Tick) : (a) Government Departments (G)

4. Authorized Dealer Code of

the bank :

5. Type of Bill of Entry

(A) (H) Home Consumption

(C) High Sea Sale (HSS) : Yes/No

If yes, high sea seller particulars-

1. Importer – Exporter Code(IEC) :

(c) Name of the high sea seller :

(d) Address :

6. Special requests, if any

(A) First Check requested : Yes/No

(B) Green Channel facility for clearance

without examination requested : Yes/No

1. Urgent clearance requested against

(D) Extension of time limit requested

under Section 48 : Yes/No

If yes, reasons for late filing of BE :-

 7. Port of Shipment :

8. Country of Origin :

(if same for all goods of the consignment, otherwise declare at the item level

at S.No. 39 )

9. Country of Consignment :

10. (a) Import General Manifest (IGM)

No./Year :

Bill of Lading (HBL) No. :

(b) Date :

(b) Date :

Marks & Numbers :

(a) Number of Packages :

(b) Type of Package :

(a) Gross Weight :

(b) Unit of weight :

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