Customs Clearance Training - (Export Import) 1

CUSTOMS CLEARANCE TRAINING :
AGENDA
1. DGFT (Directorate General of Foreign Trade) - Mandatory Compliance (IEC ),

Foreign Trade Policy & Other Related Information)
2. CBEC (CENTRAL BOARD OF EXSICE & CUSTOMS) - ICEGATE and SVB COMPLIANCE
3. CUSTOM HOUSE AGENT - CUSTOMS CLEARANCE
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AIR FREIGHT OCEAN FREIGHT
DGFT (Directorate General of Foreign Trade)

GOVT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
(Mandatory Compliance – IEC, Foreign Trade policy & Other Related Information)
DGFT:
 Directorate General of Foreign Trade (DGFT) organization is an attached office of the Ministry of Commerce and Industry and is headed by
Director General of Foreign Trade.
 Right from its inception till 1991, when liberalization in the economic policies of the Government took place, this organization has been essentially
involved in the regulation and promotion of foreign trade through regulation.
 Overall objective of increasing of exports, DGFT has since been assigned the role of “facilitator”.
 The shift was from prohibition and control of imports/exports to promotion and facilitation of exports/imports, keeping in view the interests of the country.
Organizational Set-up:
 This Directorate, with headquarters at New Delhi, is headed by the Director General of Foreign Trade. It is responsible for formulating and implementing
the Foreign Trade Policy with the main objective of promoting India’s exports.
 The DGFT also issues Licence/Scrips /Authorization to exporters and monitors their corresponding obligations through a network of 36 regional offices
and an extension counter at Indore.
 DGFT HQ and many of its regional offices are ISO 9000:2008 certified Organizations.
 All regional offices provide facilitation to exporters in regard to developments in international trade, i.e.
 WTO agreements, Rules of Origin and anti-dumping issues, etc. to help exporters in their import and export decisions in an internationally
dynamic environment.
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Import Export Code (IEC) – What, Who, How…
What is IEC?
• IEC Code is unique 10 digit code issued by DGFT – Directorate General of Foreign Trade , Ministry of
Commerce, Government of India to Indian Companies and Individuals to enable them carry International
Trade.
• To import into India or export out of India, IEC Code i.e. Importer Exporter Code is mandatory.
Who can get IEC?

• An INDIVIDUAL or a company who wants to do international business can get an IEC.
• Individuals can use either the name of their proprietorship firm or their name directly to apply for IEC
How to get IEC?

• An application for grant of IEC has to be made along with supporting documents.
• The application should be made by Registered office only (in case a company has multiple branches) to
the DGFT office under whose jurisdiction the registered office of the applicant comes.
• IEC is applicable to across the company & there is no need of separate registration branch wise.
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Import Export Code (IEC)

INDIA
Procedure for Applying IEC (Import and Export Code):
IEC Code Number Related links:
DGFT Online IEC Code Number Application : Form -ANF-2A

View Your IEC Status : http://dgft.delhi.nic.in:8100/dgft/iecprint
IEC Status at Custom(BIN) : http://164.100.9.176/iecstatus.html
http://www.dgft.gov.in/dgftcla
http://www.dgft.gov.in
http://www.icegate.gov.in
DGFT Zonal Office New Delhi :- IEC Help contact

PBX No. Tel-011-23379111, 23379112, 23379113
e-mail : jdgftcla@hotmail.com
Public Relation Officer : Tel-011- 23378740
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Foreign Trade Policy (2015 – 2020)

 Legal Framework
 General Provisions regarding Import and Export
 Special Focus Initiatives
 Promotional Measures
 Duty Exemption / Remission Schemes
 Export Promotion Capital Goods Scheme
 Export Oriented Units (EOUs) etc
 Special Economic Zones
 Deemed Exports
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• Export/Import of Restricted Goods/Services

– ‘Restricted’ goods / services may be exported or imported only in accordance with an Authorization / Permission/
License
• Terms and Conditions of a license / Certificate / Permission / Authorization
• Every Authorization shall be valid for prescribed period of validity and shall contain such terms and conditions as may be
specified by Regional Authority (RA), which may include:
(a) Description, quantity and value of goods;
(b) Actual User condition;
(c) Export obligation;
(d) Minimum value addition to be achieved; and
(e) Minimum export / import price
• Authorization / Licence / Certificate / Permission not a Right
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• Sale on High Seas

• Execution of BG / LUT
– Whenever goods are imported duty free or otherwise specifically stated, importer shall execute prescribed LUT / BG
/ Bond with Customs Authority before clearance of goods. In case of indigenous sourcing, Authorization holder shall
furnish LUT / BG / Bond to RA concerned before sourcing material from indigenous supplier / nominated agency as
prescribed in HBP v1
• Private / Public Bonded Warehouses for Imports
– Private / Public bonded warehouses may be set up in DTA. Any person may import goods, except prohibited items,
arms and ammunition, hazardous waste and chemicals and warehouse them in such bonded warehouses. Such
goods may be cleared for home consumption whenever required. Customs duty as applicable shall be paid at the
time of clearance of such goods. If such goods are not cleared for home consumption within a period of one year or
such extended period as the custom authorities may permit, importer of such goods shall re-export the goods
• Export of Passenger Baggage
– Personal baggage may be exported either along with passenger or, if unaccompanied, within one year before or
after passenger's departure from India.
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• Export Promotion Council (EPC) promote and develop exports of particular group of products, projects and
services
• Registration -cum- Membership Certificate (RCMC) is required for import/ export against an Authorization or
for availing any other benefit or concession
• Fiscal Incentives to promote EDI Initiatives adoption
• Exemption from Service Tax on services received abroad
• Regularization of EO default and settlement of Customs duty and interest through Settlement Commission
• Exemption/ Remission of Service Tax in DTA
• Exemption from Service Tax in SEZ
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Other Major Export Incentives
 EOU Scheme
 SEZ Scheme
 Deemed Exports
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Export Oriented Units (EOUs) Etc.

This Chapter covers the following headings:
 Eligibility
 Net Foreign Exnge Earnings
 DTA Sale of Finished Products / Rejects / Waste / Scrap / Remnants and By- products
 Other Supplies in DTA
 Entitlement for supplies from the DTA
 Other Entitlements
 Inter Unit Transfer
 Sub-Contracting
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Export Oriented Units (EOUs) Etc.

 Sale of Unutilized Material
 Reconditioning / Repair and Re-engineering
 Replacement / Repair of imported / Indigenous Goods
 Exit from EOU Scheme
 Conversion
 Export through Exhibitions / Export Promotion Tours / showrooms abroad / Duty Free Shops
 Personal Carriage of Import / Export Parcels including through Foreign bound Passengers
 Export / Import by Post / Courier
 Revival of Sick Units

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Export Oriented Unit (‘EOU’) scheme

 Exemption from customs duty on import of capital goods and raw materials for the purpose of manufacture of
final goods
 Goods manufactured by EOU is exempted from excise duty vide notification 24/2003 Excise dated March 31, 2003
 Notification 22/2003 provides for duty free procurement of goods from indigenous sources
 An EOU may import from DTA or bonded warehouses in DTA / international exhibitions held in India, without
payment of duty, all types of goods for its activities, provided they are not prohibited items of import
• An EOU can source capital goods from a domestic / foreign leasing company on lease
without payment of customs / excise duty provided the EOU and leasing unit shall
jointly file the necessary documents
NCA 13
Export Oriented Unit (‘EOU’) scheme

 Procurement of capital goods and raw materials made by a EOU from a supplier
located outside the EOU in India are eligible for :
– Excise duty exemption on goods pursed from the Domestic Tariff Area (‘DTA’)
– Refund of Central Sales Tax on interstate purses of capital goods and interest on
delay in refund of CST subject to issue of form C
– Cenvat credit on service tax paid if EOU has output liability
– Cenvat credit of excise duty paid on inputs, if any
NCA 14
EOU scheme – Eligibility Criteria

 Units which export their entire production of goods and services (including repair, re- making, reconditioning,
reengineering and rendering of services (except permissible sales in DTA) may be set up under EOU.
 Service : It includes all the tradable services covered under General Agreement on Trade in Services and earning
free foreign exnge
 Meaning of term service is similar for EOU and EPCG
 Export of goods and services except items that are prohibited in ITC (HS) is allowed. Export of Special chemical,
organisms, materials, equipment and technologies are subject to conditions indicated in ITC (HS)}. For export
promotional material up to 1.5% of FOB value of previous years exports is allowed
 Duty free imports of all goods including capital goods.
 Trading units are not covered by EOU
NCA 15
Net Foreign Exnge earnings (NFE)
 EOU unit is required to achieve positive NFE cumulatively for a period of 5 years from commencement of
production
 NFE is computed as :(Positive NFE = A - B > 0), where

A = FOB value of exports and other specified supplies;
B = Sum total of the CIF Value of all imported capital goods/ inputs and value of all payments in foreign exnge by
way of commission, royalties, fees, dividends and any other rges, goods obtained from EOU and Bonded
warehouse, other specified expenditures
 Import of capital goods and lump sum for technical knowhow from outside India would be amortized over a
period of ten years for the calculation of NFE.
 Export proceeds should be realized within 12 months
NCA 16
DTA sale
 Sale of goods or provision of services to customers in India would need a prior approval from the EOU authorities
 An EOU unit (except gems and jewellery unit) is allowed to sell similar goods/services up to 50 percent of FOB
value of exports (with condition of positive NFE) or 50 percent of foreign exnge earned from services, where
payment of such service is received in foreign exnge
 EOUs which are manufacturing and exporting more than one product can sell any of these products in DTA, up to
90% of FOB value of export of the specified products within the overall entitlement of 50% of FOB value of
exports for the unit
 Specific products/specific units not allowed DTA sales
 DTA sales to attract excise duty equal to custom duties on like goods including basic customs duty and additional
custom duties – 50% of applicable basic customs duty exempt
 In case of DTA sale of goods manufactured by EOU where basic duty and CVD is nil, such goods may be considered
as non- excisable goods for the payment of duty.
NCA 17
DTA sale
Other supplies in DTA:
Following supplies effected from EOU/EHTP/STP/BTP units to DTA will be counted for fulfillment of positive NFE:
 Supplies effected in DTA to holders of Advance Authorisation/ Advance Authorisation for annual requirement/
DFIA under duty exemption/ remission scheme/EPCG scheme.
 Supplies effected in DTA against foreign exnge remittance received from overseas.
 Supplies to other EOU / EHTP / STP / BTP / SEZ units, provided that such goods are permissible for procurement
 Supplies made to bonded warehouses set up under FTP and / or under section 65 of Customs Act and free trade
and warehousing zones, where payment is received in foreign exnge
NCA 18
DTA sale
 Supplies of goods and services to such organizations which are entitled for duty free import of such items in terms
of general exemption notification issued by MoF
 Supplies of Information Technology Agreement (ITA -1) items and notified zero duty telecom / electronics items
 Supplies of items like tags, labels, printed bags, stickers, belts, buttons or hangers to DTA unit for export
 Supply of LPG produced in an EOU refinery to Public Sector domestic oil companies for being supplied to
household domestic consumers at subsidized prices under the Public Distribution System (PDS) Kerosene and
Domestic LPG Subsidy Scheme, 2002, as notified by the Ministry of Petroleum and Natural Gas vide notification
No. E-20029/18/2001-PP dated 28.01.2003
NCA 19
Entitlement for supplies from DTA

• Supply from DTA to EOU will be treated as deemed export. DTA supplier can disrge
his export obligations on such supplies
• DTA supplier is entitled to export duty drawback
• EOU shall be entitled for :

 Reimbursement of CST
 Exemption from payment of Central Excise duty on all goods
 Reimbursement of duty paid on fuel procured from domestic oil companies/

depots of domestic oil public sector undertakings
 Cenvat Credit on service tax paid
NCA 20
Special Economic Zones (SEZ)

This pter is governed by the Special Economic Zone Act, 2005.
 The main objectives of the SEZ Act are:

– Generation of additional economic activity
– Promotion of exports of goods and services
– Promotion of investment from domestic and foreign sources
– Creation of employment opportunities
– Development of infrastructure facilities
 The SEZ Rules provide for:

– Simplified procedures for development, operation, and maintenance of the Special Economic Zones and for
setting up units and conducting business in SEZs
– Single window clearance for setting up a unit in a Special Economic Zone
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Deemed Exports
 Deemed exports broadly cover three areas:
– Supplies to domestic entities who can import their requirements duty free or at reduced rates of duty
– Supplies to projects/purposes that involve international competitive bidding
– Supplies to infrastructure projects of national importance
 Specified categories of supplies eligible for Deemed Exports include:

– Supply of goods against Advance Authorization/Advance Authorization for Annual Requirement / DFIA
under Duty Exemption / Remission Scheme
– Supply of goods to Export Oriented Units (EOUs) etc.
– Supply of capital goods to holders of licences under the Export Promotion Capital Goods (EPCG) Scheme
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Deemed Exports
– Supply of goods to projects financed by multilateral or bilateral agencies/ funds as notified by the
Department of Economic Affairs, Ministry of Finance under International Competitive Bidding in accordance
with the procedures of those agencies/ funds, where the legal agreements provide for tender evaluation
without including the customs duty
– Supply and installation of goods and equipment (single responsibility of turnkey contracts) to projects
financed by multilateral or bilateral Agencies / Funds as notified by DEA, MoF under ICB, in accordance with
procedures of those Agencies / Funds, which bids may have been invited and evaluated on the basis of
Delivered Duty Paid (DDP) prices for goods manufactured abroad.
– Supply of goods to any project or purpose in respect of which the Ministry of Finance, by a notification,
permits the import of such goods at zero customs duty
– Supply of marine freight containers by 100% EOU (Domestic freight containers- manufacturers) provided the
said containers are exported out of India within 6 months or such period as permitted by the customs
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Deemed Exports
– Supply to projects funded by UN Agencies
– Supply of goods to nuclear projects through competitive bidding as opposed to international competitive
bidding
 Benefits for Deemed Exports
– Advance Authorization/Advance Authorization for Annual requirement /DFIA
– Deemed Export Drawback
– Exemption/ Refund of Terminal Excise duty

• Eligibility for refund of terminal excise duty / drawback
– `Refund of Terminal Excise duty or Central Excise duty paid on inputs/components is available only when
Cenvat credit/ rebate of the same has not been availed by the recipient of such goods. Similarly, supplies
will be eligible for deemed export drawback on Central Excise paid on inputs, provided Cenvat credit
facility/rebate has not been availed by the applicant.
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Deemed Exports
– In all the cases goods shall be supplied directly to concerned agency/ person. However, goods supplied by
sub-contractor to contractor shall also be eligible for deemed exports benefits as per the procedure laid
down in this regard.
– Supplies made by an Indian sub-contractor of an Indian or foreign main contractor directly to the
designated projects / Agencies, shall also be eligible for deemed export benefits provided name of sub-
contractor is indicated either originally or subsequently in the main contract (but before the date of supply
of such goods) and payment certificate is issued by project authority in the name of sub-contractor.
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CBIC (Central Board of Indirect Taxes and Customs)
Central Board of Indirect Taxes and Customs:
Central Board of Indirect Taxes and Customs (erstwhile Central Board of Excise & Customs)
is a part of the Department of Revenue under the Ministry of Finance, Government of India.
It deals with the tasks of formulation of policy concerning levy and collection of Customs, Central Excise duties, Central Goods
& Services Tax and IGST, prevention of smuggling and administration of matters relating to Customs, Central Excise, Central
Goods & Services Tax, IGST and Narcotics to the extent under CBIC's purview. The Board is the administrative authority for its
subordinate organizations, including Custom Houses, Central Excise and Central GST Commissionerates and the Central
Revenues Control Laboratory.
Citizen Charter
The Central Board of Indirect Taxes and Customs, in the Ministry of Finance, is the apex body for administering the levy and
collection of indirect taxes of the Union of India viz. Central Excise duty, Customs duty and Central Goods and Service Tax,IGST,
and for facilitating cross border movement of goods & services. In order to improve the delivery of its services, the Board has
decided to formulate this Citizens' Charter. This Charter is the declaration of our mission, values and standards to achieve
excellence in the formulation and implementation of Customs, Central Excise and Central Goods and Service Tax, IGST policies
and enforcement of cross border controls for the benefit of trade, industry and other stakeholders.
This Citizens' Charter will also be the benchmark to determine our efficiency and would be a dynamic document which would be
reviewed at least once in two years.
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ICEGATE
(Indian Customs Electronic Commerce/Electronic Data interchange (C/EDI) Gateway)
About ICEGATE:
Indian Customs Electronic Gateway (ICEGATE) is the national portal of Indian Customs of Central Board of Indirect Taxes and Customs (CBIC)
that provides e-filing services to the Trade, Cargo Carriers and other Trading Partners electronically.
At present, about 43542 users are registered with ICEGATE who are serving about more than 12.5 lacs importer/exporter.
Through this facility Indian Customs offers a host of services, including electronic filing of the Bill of Entry (import goods declaration),
Shipping Bills (export goods declaration), e-Payment of Customs Duty, a free of cost web-based Common Signer utility for signing all the Customs
Documents, facility to file online supporting documents through e Sanchit, end to end electronic IGST Refund and etc.
ICEGATE is internally linked with multiple partner agencies including RBI, Banks, DGFT, DGCIS, Ministry of Steel, Directorate of Valuation and other
various Partner Government Agencies involved in EXIM trade enabling faster Customs clearance. All electronic documents/ messages being
handled by the ICEGATE are processed at the Customs' end by the Indian Customs EDI System (ICES), which is running at 245 Customs Locations.
In addition to e-filing, ICEGATE also provides host of other services like 24X7 helpdesk facility for its trading partners, e payment of Central Excise
and Service Tax, on-line registration for IPR, Document Tracking status at Customs EDI, online verification of DEPB/DES/EPCG licenses,
IE code status, PAN based CHA data, IGST Refund Status and links to various other important websites/information related to EXIM Trade
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About ICES
What is ICES ?
The Indian Customs EDI System (ICES) is now operational at 245 major customs locations handling nearly 98% of India's International trade in terms of
import and export consignments. ICES has two aspects:
•Internal Automation of the Custom House for a comprehensive, paperless, fully automated customs clearance system that makes the functioning of
Customs clearance transparent and efficient.
•Online, real-time electronic interface with the trade, transport,Banks and regulatory agencies concerned with customs clearance of import and export
cargo through ICEGATE.
•ICES is designed to exchange/transact customs clearance related information electronically using Electronic Data Interchange (EDI). A large number of
documents that trade, transport and regulatory agencies (collectively called Trading Partners) are required to submit/ receive in the process of live customs
clearance are now being processed online.
Three Systems are major Components of Indian Custom automation

1.The ICES running at 134 locations. ICES has to automatically receive and process all incoming messages. ICES generate all outgoing messages automatically
at the appropriate stage of the clearance process.
2.ICEGATE is the interface of ICES with the external world for customs clearance related messages and sharing of trade Statistics/Customs clearance data
with licencing and regulatory agencies such as DGFT, DGCI&S, Ministry of Steel,RBI etc.
3.RMS(Risk Management System) is the 3rd component which facilitates the compliant trade segregating the transactions requiring deeper scrutiny by
customs officers.
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ICEGATE/ICES/RMS:
No. of messages
No EDI trading partner Nature of information exnged through EDI
(approx.)
1 Importers/ Exporters/ Bills of Entry/ Shipping Bills and related messages 13
2 Airlines / Shipping Agents / Shipping Line Manifests and cargo logistics messages 26
3 Air Custodians Cargo logistics messages 9
4 Sea Custodians Cargo logistics messages 18
5 ICDs Cargo logistics messages 6
Financial messages – duty drawbac disbursal and
6 Banks 9
customs duty payment
7 DGFT License, shipping bills and IE Code data 13
8 RBI Forex. Remmittance data 1
9 DGCIS Trade statistics 2
10 Directorate of Valuation Valuation data 2
Three Systems are major Components of Indian Custom automation:

1. The ICES running at 134 locations. ICES has to automatically receive and process all incoming messages. ICES generate all
outgoing messages automatically at the appropriate stage of the clearance process.
2. ICEGATE is the interface of ICES with the external world for customs clearance related messages and sharing of trade
Statistics/Customs clearance data with licensing and regulatory agencies such as DGFT, DGCI&S, Ministry of Steel,RBI etc.
3. RMS(Risk Management System) is the 3rd component which facilitates the compliant trade segregating the transactions
requiring deeper scrutiny by customs officers.
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Overview - Customs Clearance:
Electronic – EDI online filing of Customs documents:
has EDI connectivity with Indian Customs/ICEGATE for Electronic filing of following docs for General Cargo (Dutiable):
 Bill of Entry (Import goods declaration)
 Shipping Bills (export goods declaration)
 IGM (Import General Manifest)
Overview - Customs Mandatory Compliance:
KYC & CCR Compliance: List of Docs Required for Clearance:
List of Restricted Items for Import: List of Prohibited Items for Import:
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INDIAN CUSTOMS - SVB COMPLIANCE
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Overview of Customs SVB (Special Valuation Branch) - Compliance
1. What is Special Valuation Branch ?
2. Who should Register with SVB ?
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What is Special Valuation Branch ?
 SVB (Special Valuation Branch) is a Branch of the Custom House, specializing in investigating the transactions involving
relationship between the supplier and the importer and certain other special features like Technical Collaboration between
the parties, etc.
 Special Valuation Branch examines the influence of relationship on the invoice value of the imported goods in respect of
transactions between related parties.
 In respect of Technical Collaboration Agreements and Joint Venture Agreements, the terms and conditions of these
agreements are examined to arrive at the conclusion, whether the existence of such agreement has influenced the invoice
value of the imports.
 Organizational Structure:
Special Valuation Branch is headed by a Deputy Commissioner of Customs and assisted by one Appraising Officer and
necessary Ministerial Staff
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Who should Register with SVB ?
Importers who are related to the supplier in terms of the Customs Valuation Rules, are required to
Register with SVB.
 For the purpose of these rules, persons shall be deemed to be "related" only if:-
i) they are officers or directors of one another's businesses
ii) they are legally recognised partners in business;
iii) they are employer and employee;
iv) any person directly or indirectly owns, controls or holds 5 per cent or more of
the outstanding voting stock or shares of both of them;
v) one of them directly or indirectly controls the other;
vi) both of them are directly or indirectly controlled by a third person;
vii) together they directly or indirectly control a third person;
viii) they are members of the same family.
 Explanation I - The term "person" also includes legal persons

 Explanation II - Persons who are associated in the business of one another in that one is the sole agent or sole distributor or sole
concessionaire, however described, of the other shall be deemed to be related for the purpose of these rules, if they fall within the criteria
of this sub-rule.
 Apart from the above, those who are having Collaboration Agreement, Technical Assistance Agreement or any other agreement / contract
with the foreign supplier are also required to register with SVB.
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Overview – Custom House Agent/Customs Broker:
Obligations of Customs Broker. - A Customs Broker shall -
(a) Obtain an Authorisation from each of the companies, firms or individuals by whom he is for the time being employed
as a Customs Broker and produce such authorisation whenever required by the Deputy Commissioner of Customs or
Assistant Commissioner of Customs, as the case may be;
(b) Transact business in the Customs Station either personally or through an employee duly approved by the
Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be;
(c) Not represent a client in any matter to which the Customs Broker, as a former employee of the Central Board of Excise
and Customs gave personal consideration, or as to the facts of which he gained knowledge, while in Government
service;
(d) Advise his client to comply with the provisions of the Act and in case of non-compliance, shall bring the matter to the
notice of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be;
(e) Exercise due diligence to ascertain the correctness of any information which he imparts to a client with
reference to any work related to clearance of cargo or baggage;
(f) Not withhold information contained in any order, instruction or public notice relating to clearance of cargo or
baggage issued by the Commissioner of Customs, from a client who is entitled to such information;
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(g) Promptly pay over to the Government, when due, sums received for payment of any duty, tax or other debt or
obligations owing to the Government and promptly account to his client for funds received for him from the
Government or received from him in excess of Governmental or other rges payable in respect of the clearance of
cargo or baggage on behalf of the client;
(h) Not procure or attempt to procure directly or indirectly, information from the Government records or other
Government sources of any kind to which access is not granted by the proper officer;
(i) Not attempt to influence the conduct of any official of the Customs Station in any matter pending before such official or
his subordinates by the use of threat, false accusation, duress or the offer of any special inducement or promise of
advantage or by the bestowing of any gift or favour or other thing of value;
(j) Not refuse access to, conceal, remove or destroy the whole or any part of any book, paper or other record, relating to
his transactions as a Customs Broker which is sought or may be sought by the Commissioner of Customs;
(k) Maintain upto date records such as bill of entry, shipping bill, transhipment application, etc. and all correspondence
and other papers relating to his business as Customs Broker and also accounts including financial transactions in an
orderly and itemised manner as may be specified by the Deputy Commissioner of Customs or Assistant
Commissioner of Customs, as the case may be; and keep them current;
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(l) Immediately report the loss of licence granted to him to the Commissioner of Customs;
(m) Disrge his duties as a Customs Broker with utmost speed and efficiency and without any delay;
(n) Verify antecedent, correctness of Importer Exporter Code (IEC) number, identity of his client and functioning of his
client at the declared address by using reliable, independent, authentic documents, data or information; and
(o) Inform any nge of postal address, telephone number, e-mail etc. to the Deputy Commissioner of Customs or
Assistant Commissioner of Customs, as the case may be within one month of such nge.
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Overview – Stake Holders and their Roles:
CUSTOMS
• Assessment and collection of customs duties on import and export cargoes as per Customs laws (Customs Act, 1962 and Customs Tariff Act, 1975);
• Enforcement of the various provisions of the Customs Act governing imports and exports of cargo, baggage, postal articles and arrival and departure
of Vessels, Air crafts etc.;
• Disrge of various agency functions and enforcing various prohibitions and restrictions on imports and exports under Customs
Act and other allied enactments;
• Prevention of smuggling including interdiction of narcotics drug trafficking; and International passenger processing.
AIRPORTS AUTHORITY OF INDIA
• Provides Custodial services for storage and processing of both import and export cargo on behalf of the Customs.
• Cargo terminal services for the airlines to facilitate both export and import operations.
• Provide customer facilitation for exporters, importers and their representatives for freight forwarding and Customs clearance of cargo.
PORT TRUSTS
• Provides infrastructure facilities like berths, equipment, storage space, navigational nnels and road/rails network within the Port area.
• Perform vessel operations like berthing / un-berthing of vessels, Container/cargo handling operations like landing of containers/cargo from vessel,
movement to storage yard, stuffing/ de-stuffing of containers facilitating the process of examination through movement of containers to CFSs,
delivery / aggregation of containers/cargo.
• Provides berthing facilities, Cargo handling facilities including manpower and equipment, Cargo storage space in the form of open land or shed space
etc. assessment and recovery of Port related rges and documentation formalities for import/export goods.
TERMINAL OPERATOR
• Manages the terminal operations both at the wharf and the yard, acts as the custodian of the cargo/containers.
• Most of the functions performed by the Terminal operator and Port Trust are common.
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Overview – Stake Holders and their Roles:
VESSEL OPERATING AGENT (STEAMER AGENT/ MAIN LINE OPERATOR)

• The authorized representative in a specified territory acting on behalf of a steamship line or lines and attending to all matters relating to the Vessels
owned by his principals.
• The steamer agent liaises with the port and other agencies like customs for the completion of formalities related to the various Agencies.
• They compile the vessel plan and co-ordinate with the stevedores and the port operator for loading/ disrge operations.
CONTAINER OPERATING AGENT (NVOCC/ VOCC)

• They represent the container Lines and provide the steamer agent with details of the containers belonging to them in the vessel.
• They also give the delivery order to the Clearing Agent/Importer for clearing the container.
• Similarly, The liner gives the authorization for loading containers to a vessel to the clearing agent.
• They recover terminal handling rges and container detention rges as also issue Bill of Lading and agent’s delivery order to the Consignees.
(NVOCC- Non Vessel Operating Common Carrier)(VOCC- Vessel Operating Common Carrier)STEVEDORE
• A stevedore manages the operation of loading or unloading a ship.
• A stevedore owns gears and equipment used in the loading or disrge operation and engages Labour who actually load and disrge cargo under the
direction of a stevedoring company.
IMPORTER / EXPORTER
• Importers / exporters are the owners of the goods being imported/ exported.
• And they are mainly responsible for completion of Customs and Port formalities either themselves or through a .
• is a person engaged in providing any service, either directly or indirectly, connected with the clearing and forwarding operation.
• They are licensed to enter the Customs premises and clear the goods through Customs/Port after payment of all duties and port rges on behalf of the
importer. Similarly the brings in the export cargo and completes all documentation for loading on behalf of the exporter.
CONTAINER FREIGHT STATIONS (CFS)

• The primary functions of CFS can be summed up as - receipt and dispatch/delivery of cargo, stuffing and stripping of containers, transit operations by Rail /
Road to and from serving Ports, Customs clearance, Consolidation and dis-aggregation of LCL cargo, temporary storage of cargo and containers, reworking
of Containers, maintenance and repair of Container units.
40
Import Consignment arrival, Customs Clearance & delivery Process
AIR IMPORT CUSTOMS CLEARANCE
AIRLINES / Forwarding Agent: Importer:
1. Issuing of CAN (Cargo arrival Notice) Copy to Importer 1. Issuing of Work Order/ Authorization along with Import documents
2. Filing of IGM (Import General Manifest) with Customs / AAI to
3. Issuing of Delivery Order against payment to Importer/ 2. Airway bill, CAN, Commercial Invoice, Packing & P.O. copy etc.,
3. Importer/ will arrange Transport/Survey while loading / delivery
AAI (Airports Authority of India (Custodian/Warehouse): (Customs Broker):
1. Receiving of cargo from Airline and store it in the warehouse 1. Collects the import documents including authorization from Importer
2. Preparation of location slip for the cargo stored 2. Collection of IGM & cargo arrival details from Airline/Agent
3. Provides 03 days (72 hrs) – FREE days from the time of landing 3. Collection of Delivery order from Airline/Agent upon payment
4. AAI collects the Terminal Handling rges as per Tariff 4. Preparation of BOE and filing with Customs on-line
5. AAI collects the demurrage rges beyond Free days as per Tariff 5. BOE number will be allotted based on the IGM
6. AAI will deliver the cargo to Importer/ upon submission of 6. In case of BOE filing after 30 days of landing – BOE will be filed
BOE duly OOC (Out rges order) obtained from Customs, D.O. under section 48 as per Customs procedure
from Airline and collection of necessary rges (Terminal 7. BOE gets assessed by Customs after verification of Import
rges & demurrages etc,) documents forwarded to Shed Customs and duty informed to Importer.
8. The necessary Customs Duty to be paid by Importer.
9. To carry out the Cargo examination by Customs Shed officers and to
CUSTOMS: obtain OOC (Out of rge order).
10. To intimate Importer the rges to be paid to AAI/Airline.
1. Will scrutinise the import documents filed along with BOE 11. To pay necessary rges to AAI as per Tariff and get the
2. BOE will be assessed and forwarded to Shed Customs Gate pass for delivery of cargo
3. Shed Customs will examine the cargo as per documents produced 12. To place the Vehicle at Airport and load the cargo
physically and issues OOC (out of rge) order. 13. Deliver the cargo as per Importer’s instruction.
SEA IMPORT CUSTOMS CLEARANCE – CONTAINERISED (FCL & LCL)

SHIPPING LINE/Forwarding Agent: Importer:
1. Issuing of CAN (Cargo arrival Notice) Copy to Importer 1. Issuing of Work Order/Authorisation along with Import documents to
2. Filing of IGM (Import General Manifest) with Customs / Port 2. Supply of Original Bill of Lading, CAN, Commercial Invoice, Packing & P.O. copy etc.,
3. Issuing of Delivery Order against payment to /Importer 3. Importer/ will arrange Transport/Survey while loading / delivery.
4. Issuing of validity extension of D.O. for FCL (Full Container Load)
after collection of Container detention rges beyond FREE days (03 days).
CFS (Container Freight Station) - (Custodian/Warehouse):

:
1. Movement of Load Container (PNR) from Chennai Port to CFS under Customs
permission on behalf of Shipping Line. 1. Collects the import documents including authorization form Importer
2. Receiving of Container from Port on behalf of Shipping Line and Store it in the Container 2. Collection of IGM & cargo arrival details from Shipping line/Agent
parking yard/Warehouse. 3. Collection of Delivery order from Shipping line/Agent upon payment
3. Preparation of location slip/Tally sheet for the cargo stored 4. Preparation of BOE and filing with Customs on-line
4. To Se-stuffing of Container- in case of LCL (Less Container Load) 5. In case BOE filed after 30 days of landing – BOE will be filed under
5. Provides 03 working days – as FREE days from the time of receiving Container and section 48 as per Customs Procedure.
de-stuffing of cargo. 6. BOE number will be allotted based on the IGM
6. CFS Collects the CFS handling rges as per the CFS Tariff. 7. BOE gets assessed by Customs after verification of Import
7. CFS collects the Storage for the container/cargo beyond Free days as per the CFS Tariff. documents and forwarded to Shed Customs.
8. CFS will deliver/load the Container/cargo to /Importer upon submission of BOE duly 8. To carry out the Cargo examination by Customs Shed officers and to
OOC (Out rges order) obtained from Customs, D.O. from Shipping Line with validity obtain OOC (Out of rge order).
and collection of necessary rges (CFS rges as on date of delivery) 9. To intimate Importer the rges to be paid to Port/Shipping Line
10. To pay necessary rges to Port Trust as per Tariff and get the
Gate pass (Vehicle Ticket) for delivery of cargo
CUSTOMS: 11. To place the Vehicle at Airport and load the cargo
12. Deliver the cargo as per Importer’s instruction
1. Will scrutinise the import documents filed along with BOE 13. Raise and submit Service Bill as per Contract to Importer along with
2. BOE will be assessed and forwarded to Shed Customs supports and relevant Customs documents.
3. Shed Customs will examine the cargo as per documents produced
physically and issues OOC (out of rge) order.
SEA IMPORT CUSTOMS CLEARANCE – BREAK-BULK
SHIPPING LINE/Forwarding Agent: Importer:
1. Issuing of CAN (Cargo arrival Notice) Copy to Importer 1. Issuing of Work Order/ Authorisation along with Import documents to
2. Filing of IGM (Import General Manifest) with Customs / Port .
3. Issuing of Delivery Order against payment to Importer/ 2. Supply of Original Bill of Lading, CAN, Commercial Invoice, Packing
& P.O. copy etc.,
3. Importer/ will arrange Transport/Survey while loading / delivery.
Chennai Port Trust (Custodian/Warehouse):
1. Receiving of cargo from Vessel on behalf of Shipping Line and store :

it in the Wharf / Warehouse.
2. Preparation of location slip/Tally sheet for the cargo stored 1. Collects the import documents including Authorization form Importer
3. Provides 07 working days – as FREE days from the time of complete 2. Collection of IGM & cargo arrival details from Shipping line/Agent
disrge of cargo from Vessel. 3. Collection of Delivery order from Shipping line/Agent upon payment
4. Port collects the Port Dues (Wharfage, Crane hire rges & levy etc,) 4. Preparation of BOE and filing with Customs on-line
as per the Port’s Tariff. 5. In case of BOE filing after 30 days of landing – BOE will be filed
5. Port Trust collects the demurrage rges beyond Free days under section 48 as per Customs procedure
as per the Port’s Tariff. 6. BOE number will be allotted based on the IGM
6. Port will deliver/load the cargo to /Importer upon submission 7. BOE gets assessed by Customs after verification of Import
of BOE duly OOC (Out rges order) obtained from Customs, D.O. documents and forwarded to Shed Customs.
from Shipping Line and collection of necessary rges (Port Dues 8. To carry out the Cargo examination by Customs Shed officers and to
as on date of delivery) obtain OOC (Out of rge order).
9. To intimate Importer the rges to be paid to Port/Shipping Line
10. To pay necessary rges to Port Trust as per Tariff and get the
Gate pass (Vehicle Ticket) for delivery of cargo
CUSTOMS:
11. To place the Vehicle at Airport and load the cargo
12. Deliver the cargo as per Importer’s instruction
1. Will scrutinise the import documents filed along with BOE
13. Raise and submit Service Bill as per Contract to Importer along with
2. BOE will be assessed and forwarded to Shed Customs
supports and relevant Customs documents.
3. Shed Customs will examine the cargo as per documents produced
physically and issues OOC (out of rge) order.
Export Customs Clearance – Procedure & Process Flow
44
Customs Clearance – Export procedure:
EXPORT PROCEDURE:
For Clearance of Export Goods, the Exporter or his Agents have to undertake the following formalities: -
Registration:
 The Exporters have to obtain PAN based Business Identification Number (BIN) Directorate General of Foreign Trade
prior to filing Shipping Bill for Clearance of Export Goods.
 The Exporters are also required to Register Authorised Foreign Exnge Dealer Code (through which Export
Proceeds are expected to be realized) and open a current account in the designated Bank for credit into the
Customs System.
 Whenever a new Airline, Shipping Line, Steamer Agent, Port or Airport comes into operation, they are required to be
Registered into the Customs System.
 The Exporter intending to Export under the promotion scheme need to get their Licence/DEEC/DFRC etc., Registered
at the Customs Station.
Customs Clearance – Export procedure:
Processing of Shipping Bill:
Export By AIR (or) SEA:

In case of Export By Sea (or) Air, the Exporter or their Agent must submit the “Shipping Bill” in prescribed form.
Export By Road/Land:
In case of Export by Road/Land, the Exporter or their Agent must submit “Bill of Export” in prescribed form.
Both the Shipping Bill & Bill of Export – must contain the prescribed details such as:
• Exporter’s Name and Address, Consignee’s Name and Address, Invoice Number, details of Packing, weight, Quantity etc.,
• Description of Goods, FOB Value etc.,
Along with the Shipping Bill other documents such as Invoice, Packing List, Export Contract, Purse order, Letter of Credit etc.,
are also to be submitted.
Following documents are also mandatory for Registration of Exporter’s Data with Customs:
1. Import Export Code Certificate - Copy.

2. PAN Card - Copy.
3. Bank A.D. Code letter from Bank (Original ) - for remittance of Foreign Exnge purpose.
4. IFS Code letter from Bank (Original) - for Duty Drawback Purpose.
5. Shipper Data Base structure – in prescribed format.
Customs Clearance – Shipping Bill / Bill of Export:
Types of Shipping Bills (AIR & SEA):
1. Shipping Bill for Export of Duty Free Goods

2. Shipping Bill for Export of Goods under claim for Duty Drawback (Two types):
• Under Section 74 of Customs Act - for claiming Duty refund for Re-Export shipments.
• Under Section 75 of Customs Act - for claiming Normal DBK for Export shipments.
3. Shipping Bill for 100 % EOU- Export Oriented Unit
4. Shipping Bill under DEEC Scheme (Duty Exemption Entitlement Certificate)
5. Shipping Bill under DFIA Scheme (Duty Free Import Authorization)
6. Shipping Bill under EPCG Scheme (Export Promotion of Capital Goods)
7. Shipping Bill under NFEI Scheme (No Foreign Exnge Involved)
8. Shipping Bill under DFRC Scheme (Duty free Replenishment Certificate)
The Bill of Export (By Road/Land):
1. Bill of Export for Duty free Goods

2. Bill of Export for Dutiable Goods
3. Bill of Export for Goods under claim for Duty Drawback
4. Bill of Export for Duty free Goods Ex-Bond.
CBEC (Central Board of Excise and Customs)
Mandatory Documents for Export Customs Clearance
SR Particulars Responsibility Frequency Remarks

No
1 INVOICE SHIPPER EACH CONSIGNMENT Must have clear description in English, International accepted UQC, HS code.
2. PACKING LIST SHIPPER EACH CONSIGNMENT Required only if a consignment having more than two packages for customs
Inspection purpose.
3. IEC(Import and Export Code) SHIPPER ONE TIME This is a mandatory requirement, without this Number will not be able to register the
documents into the System.
4. EXPORTER’S DATA BASE SHIPPER ONE TIME Shipper’s Complete details with Bankers details and endorsement to Register with
Customs.
5. TECHNICAL WRITE-UP/ CATALOGUE / SHIPPER EACH CONSIGNMENT Especially for Machinery/Parts/chemical etc.,
PRODUCT LITERATURE / MSDS
(wherever applicable)
6. SDF Declaration SHIPPER EACH CONSIGNMENT Shipper to provide for Customs purpose.
7. FOC (FREE OF RGE) SUPPLIES SHIPPER EACH CONSIGNMENT Shipper to confirm on their letterhead, that the goods supplied under Invoice no__,
value $___are true and correct for valuation purpose.
8. KYC REQUIREMENTS SHIPPER ONE TIME This is mandatory requirement for customs
9. AUTHORIZATION LETTER SHIPPER ONE TIME This could be either a standing instruction or case to case on consignee’s letter head.
48
Process Flow – Air Export Customs Clearance
PROCESS FLOW - AT AIR CARGO
 Export Set of Documents received from Shipper.

 After scrutiny of documents, to prepare Shipping Bill Check List as per the fling confirmation from Shipper
(S/Bill for Free, Drawback, DEPB, Advance Licence, etc.,).
 Forwarding S/Bill Check list to Shipper for their confirmation of correctness of S/Bill/information.
 Upon Shipper’s Confirmation, filing of Shipping Bill on-Line with Customs to obtain S/Bill Number.
 Completion of Assessment.
 Obtaining carting order/AWB form Airline/Agent.
 Movement of cargo from Shipper’s premises to Air Cargo – Export Shed (OR) receipt of cargo despatched by
Shipper at Air Cargo – Export Shed.
 Opening/Examination of Cargo by Customs.
 “LET EXPORT” order issued by Shed’s Officer of Customs.
 Handing over of cargo/ palletisation etc. to Airline.
 Hand over/Despatch of Original Documents including Exnge Control Copy of S/Bill, Packing list, AWB etc.,
to Shipper – to obtain acknowledgement for the same.
 Post shipment documents: Export Promotion Copy of S/Bill/ ARE etc., to be printed and handed to Shipper,
upon filing EGM - acknowledgment to be obtained for the same.
Process Flow – Ocean Export Customs Clearance
PROCESS FLOW - CONTAINER STUFFED AT OFF-DOCK CFS
 Pre Shipment documents received from Shipper

 Preparation of Shipping Bill Check List as per the fling confirmation from Shipper (S/Bill for Drawback, DEPB, Advance Licence, Free etc.,)
 Forwarding to Shipper for their confirmation of correctness of S/Bill/information.
 Filing of Shipping Bill On-Line with Customs & obtain S/Bill Number
 Obtain carting order/Container No./Vessel information form Shipping Line/Agent
 Movement of cargo from Shipper’s premises to Off-Dock CFS (OR) receipt of cargo despatched by Shipper at Off-Dock CFS
 Opening/Examination of Cargo by Customs
 “LET EXPORT” Obtained from Customs
 Movement of suitable Empty Container from Shipping Line/Agent’s plot to Off-Dock CFS
 Stuffing of cargo into Container by CFS in the presence of surveyor and sealed by Customs
 Form 13 to be collected from Shipping Line/Agent for loading of container onto Vessel
 Movement of Container from Off-Dock CFS to Port
 Loading of Container onto Vessel
 Collection of Mate’s Receipt from Shipping Line/Agents
 Preparation of Ocean Bill of Lading as per Shipping Instruction, L/C etc.,
 Release of Bill of Lading from Shipping Line/Agents after due payments made
 Hand over/Despatch of Original Documents to Shipper: Exnge Control Copy of S/Bill, Packing list, OBL etc.,
- acknowledgement to be obtained for the same.
 Post shipment documents: Export Promotion Copy of S/Bill/ ARE etc., to be handed
 over/ despatched to Shipper upon vessel sailing IGM closing – acknowledgment to be obtained for the same.
Process Flow – Ocean Export Customs Clearance
PROCESS FLOW - CONTAINER STUFFED AT SHIPPER’S FACTORY (SEALING BY CENTRAL EXCISE)
 Pre Shpt documents received from Shipper

 Preparation of Shipping Bill Check List as per the fling confirmation from Shipper (S/Bill for Drawback, DEPB, Advance Licence, Free etc.,)
 Forwarding to Shipper for their confirmation of correctness of S/Bill/information.
 Filing of Shipping Bill On-Line with Customs & obtain S/Bill Number
 Obtain carting order/Container No./Vessel information form Shipping Line/Agent
 Movement of suitable Container from Shipping Line/Agents Plot to Shipper’s Factory
 Stuffing of Cargo into container by Shipper and sealed by Central Excise
 Movement of Container after stuffing from Factory to Off-Dock CFS along with Sealed cover containing C. Excise Certified docs
(Invoice, Pkg List, ARE , Specimen Seal etc.,
 Customs will verify C. Excise docs & seal on the container w.r.to specimen seal
 “LET EXPORT” Obtained from Customs after seal verification
 Form 13 to be collected from Shipping Line/Agent for loading of container onto Vessel
 Movement of Container from Off-Dock CFS to Port
 Loading of Container onto Vessel
 Collection of Mate’s Receipt from Shipping Line/Agents
 Preparation of Ocean Bill of Lading as per Shipping Instruction, L/C etc.,
 Release of Bill of Lading from Shipping Line/Agents after due payments made
 Hand over/Despatch of Original Documents to Shipper: Exnge Control Copy of S/Bill, Packing list, OBL etc., -
acknowledgement to be obtained for the same.
 Post shipment documents: Export Promotion Copy of S/Bill/ ARE etc., to be handed over/ despatched to Shipper upon vessel
sailing IGM closing – acknowledgment to be obtained for the same.
Import Customs Clearance – Procedure & process Flow
52
Customs Clearance - IMPORT PROCEDURE
PROCEDURE FOR CLEARANCE OF IMPORTED GOODS
Bill of Entry - Cargo Declaration:
 Goods imported in a vessel/aircraft attract customs duty and unless these are not meant for customs clearance at the port/airport of arrival by
particular vessel/aircraft and are intended for transit by the same vessel/aircraft or transhipment to another customs station or to any place outside
India, detailed customs clearance formalities of the landed goods have to be followed by the importers.
 In regard to the transit goods, so long as these are mentioned in import report/IGM for transit to any place outside, Customs allows transit without
payment of duty.
 Similarly for goods brought in by particular vessel/aircraft for transhipment to another customs station detailed customs clearance formalities at the
port/airport of landing are not prescribed and simple transhipment procedure has to be followed by the carrier and the concerned agencies.
 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 transhipment of the goods after unloading to a port outside India. Here also procedure for transhipment has been
prescribed by regulations, and no duty is required to be paid. (Sections 52 to 56 of the Customs are relevant in this regard)
 For other goods which are offloaded importers have the option to clear the goods for home consumption after payment of the duties leviable or to
clear them for warehousing without immediate disrge of the duties leviable in terms of the warehousing provisions built in the Customs Act.
 Every importer is required to file in terms of the Section 46 an entry (which is called Bill of entry) for home consumption or warehousing in the
form, as prescribed by regulations. \ Refer Circular No. 15/2009-Cus Dated 12/5/2009.
53
Import Customs Clearance - BILL OF ENTRY
Bill of Entry:
 Bill of entry is one of the major import document for import customs clearance.
 Bill of Entry is the legal document to be filed by or Importer duly signed. Bill of Entry is one of the indicators of ‘total outward
remittance of country’ regulated by Reserve Bank and Customs department.
 Bill of entry must be filed within thirty days of arrival of goods at a customs location.
 Bill of Entry is a statement of the nature and value of goods to be imported, prepared by the Importer or their Agent and
presented to a Customs.
 The importer or their clearing the goods for domestic consumption 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.
 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 entry for customs
clearance.
Green channel facility:

 Some major importers have been given the green channel clearance facility. It means clearance of goods is done without
routine examination of the goods.
 They have to make a declaration in the declaration form at the time of filing of bill of entry. The appraisement is done as per
normal procedure except that there would be no physical examination of the goods.
 Only marks and number are to be checked in such cases.
 However, in rare cases, if there are specific doubts regarding description or quantity of the goods, physical examination may be
ordered by the senior officers/investigation wing like SIIB.
54
Import Customs Clearance - TYPES OF BILL OF ENTRIES
There are three types of bills of entry procedures in India. In other words we can say – there are three types of import in
India from customs point of view.
Bill of entry for home consumption:

 This bill of entry is in white color, before introduction of electronic media of filing. Manual bill of entry is filed, where in no electronic data internge
is available to file bill of entry electronically.
 Importer files bill of entry for home consumption where in he wants to clear the goods on payment of duty or free duty goods to remove the
cargo to his premises immediately. As per customs department section 46 of the customs Act 1962 describes in detail about the procedures and
formalities.
Warehousing Bill of Entry:

 Warehousing bill of entry is also called Into Bond Bill of Entry. This is in buff color before introduction of EDI filing, if filed manually where in no
electronic filing available. As per section 46 and section 60 of Indian Customs Act describes in detail about this type of filing.
 If an importer does not want to pay duty on his goods immediately up on arrival of goods at port, he keeps his goods in a customs bonded ware
house by following formalities under such provisions and files Into bond bill of entry. He pays duty and take the quantity of goods as and when
he requires.
Ex-bond Bill of Entry:

 The ex-bond bill of entry is filed to take the goods for home consumption by importer as and when he requires from the bonded warehouse
explained above.
 The ex-bond bill of entry is in green color before if filed manually where in no EDI facility is available. The details of this types of procedures are
mentioned in section 68 of Indian Customs Act.
 Apart from the major three bills of entry, there is another type of bill of entry in pink color which is used for clearing imported goods for defense
establishments.
55
Import Customs Clearance - RMS & NON-RMS
Risk Management System – RMS – is a great age in traditional approach of import customs clearance procedures. Scrutinizing
each document, examining every consignment etc. do not work in global security scenario after globalization of trade. Routine
assessment, concurrent audit, inspection procedures etc. kills the time of process.
Self assessment method not only reduce dwell time, but provides quality management in assessment,
inspection and post clearance audit etc. on the other side.
In a self assessment scheme, importer can appraise the value by classifying and entering details of pter, benefits, value etc.
No assessment or inspection is carried out under this system.
This method of clearance is under Risk Management System (RMS).
If the importer filed wrong entry in Risk Management System, re-assessment and inspection are carried out at later stage, some
times even after customs clearance at customs station or at importer’s premises depends up on the nature of audit.
Difference of duty can be paid accordingly after reassessment on post clearance of cargo.
If no interdiction, with the said self assessment the importer can take delivery of cargo by paying duty if any, without customs’
assessment and inspection of cargo.
In Risk Management System – RMS, responsibility of filing correct declaration is with the importer.
This facility is introduced where Electronic Data Internge (EDI) is available.
56
CBEC (Central Board of Excise and Customs)
Mandatory Documents for Import Customs Clearance
SR Particulars Responsibility Frequency Remarks

No
1 INVOICE SHIPPER EACH CONSIGNMENT Must have clear description in English, International accepted UQC, HS code.
2. PACKING LIST SHIPPER EACH CONSIGNMENT Required only if a consignment having more than two packages for customs
Inspection purpose.
3. IEC(Import and Export Code) CONSIGNEE ONE TIME This is a mandatory requirement, without this Number CHA will not be able to register
the documents into the System.
4. AWB / MAWB FF/AL EACH CONSIGNMENT Consignee contact details / name to be shown preferably with an e-Mail id.
5. TECHNICAL WRITE-UP/ CATALOGUE / CONSIGNEE / EACH CONSIGNMENT Especially for Machinery/Parts/chemical / re-agents etc.,
PRODUCT LITERATURE / MSDS SHIPPER
(wherever applicable)
6. COUNTRY OF ORIGIN CERTIFICATE SHIPPER WHERE EVER APPLICABLE This will become a mandatory requirement where the Consignee claiming preferential
duty benefits under any FTA. Such COO, must be in line with the Rules of Origin
format(not the usual one issued by mber of commerce)
7. FOC (FREE OF RGE) SUPPLIES SHIPPER EACH CONSIGNMENT Shipper to confirm on their letterhead, that the goods supplied under Invoice no__,
value $___are true and correct for valuation purpose.
8. GATT declaration CONSIGNEE EACH CONSIGNMENT Official confirmation expected shortly to do away with this requirement.
9 AUTHORIZATION LETTER COSIGNEE ONE TIME This could be either a standing instruction or case to case on consignee’s letter head.
10. KYC REQUIREMENTS CONSIGNEE ONE TIME This is mandatory requirement for customs
57
Process Flow - Air Import Customs Clearance
CUSTOMS DUTY:
- UNDER MERIT
- DUTY EXEMPTION SCHEME  Pre alert received from Origin office/Consignee
 Preparation of BOE (Bill of Entry) Check List
 BOE check list forwarded to Consignee for verification & approval.
 Flight Arrival / IGM updation with Customs
 To upload BOE Check List with Customs & obtain BOE (Bill of Entry) No. Collection of
D.O. from Airlines/Agent
 EPCG Licence Registration / endorsement / Bond Debit - if any
 BOE Assessed for payment of Duty.
 Consignee to be informed & arrange to pay Duty Customs Duty paid on line &
TR 6 Challan obtained.
 Applying for Location slip at Air Cargo
 Moving of Cargo Customs Examination Area
 Completion of Examination
 Examination report entered & “Out of rge Order’’ issued by Customs.
 Applying Gate Pass, Payment of AAI rges
 On Receipt of Gate Pass, Cargo loaded on Truck & moved to Consignee’s premises.
 Receipt of Goods by Consignee
 Acknowledgement of Goods received in good Condition by Consignee.
Process Flow - Ocean Import Customs Clearance
CUSTOMS DUTY:
- UNDER MERIT
- DUTY EXEMPTION SCHEME  Pre alert from Origin office / Consignee
 Preparation of Check List for Home Consumption Bill of Entry.
 Forward it to Consignee to check the Correctness & Confirmation.
 Vessel Arrival / IGM updation with Customs
 Container landing / De-stuffing at Port / CFS etc.,
 To Submit Check List with Customs & obtain BOE No.
 Collection of D.O. from Shipping Line / Agent
 Licence/EPCG Regtn/endorsement if any
 BOE Assessed for payment of Duty. Customs Duty paid & obtained TR 6 llan.
 Applying for Location slip at Off-Dock CFS / Port
 Moving of Container / Cargo to Customs Examination Area
 Examination report entered & “Out of rge Order” issued by Customs
 Applying Gate Pass, Payment of CFS / Port rges
 On Receipt of Gate Pass, Cargo loaded on Truck & moved to Consignee’s premises.
 Receipt of Goods by Consignee Acknowledgement of Goods received in good
Condition by Consignee
Process Flow - Air Import Customs Clearance (100% EOU)
DUTY FREE:
- 100% Export Oriented Unit  Pre alert from Origin office / Consignee
 Preparation of Check List for Warehousing (Bonding) Bill of Entry.
 Forward it to Consignee to check the correctness/ Confirmation and to arrange for PCMR.
 PCMR (100% EOU) to be collected from Consignee
 On receipt of PCMR, to Submit BOE Check List with Customs & obtain BOE Number
 BOE assessed for Warehousing (Bonding).
 Bond No. Obtained & Transfer Bond filing
 Collection of D.O. from Airlines/Agent
 Applying for Location slip at Air Cargo and Moving of Cargo Customs Examination Area
 Completion of Examination and Examination report entered & “Removal for Warehousing
(Bonding) order issued by Customs.
 On Receipt of Gate Pass, Cargo loaded on Truck & moved to Consignees premises
(100% EOU Unit)
 Receipt of Goods by Consignee.
.
Process Flow - Ocean Import Customs Clearance (100% EOU)
DUTY FREE:
- 100% Export Oriented Unit  Pre alert from Origin office / Consignee
 Preparation of Check List for Warehousing (Bonding)
 Bill of Entry. Forward it to Consignee to check the correctness/ Confirmation and to
arrange for PCMR (100% EOU)
 Vessel Arrival / IGM updation with Customs
 Container landing / De-stuffing at Port / CFS etc.,
 On receipt of PCMR to Submit BOE Check List with Customs & obtain BOE Number.
Collection of D.O. from Shipping Line / Agent
 BOE Assessed & Bond No. obtained. Transfer Bond filed.
 Applying for Location slip at Off-Dock
 CFS / Port Moving of Container / Cargo to Customs Examination Area
 Examination report entered & “Removal for Warehousing order’ issued by Customs.
 On Receipt of Gate Pass, Cargo loaded on Truck & moved to Consignee’s premises
(100% EOU Unit).
 Receipt of Goods by Consignee.
Process Flow - Air Import Customs Clearance (Bonding)
BONDING/WAREHOUSING:
- Without payment of Duty
 Pre alert from Origin office / Consignee
 Preparation of Check List for Warehousing (Bonding)
 Bill of Entry. Forward it to Consignee to check the correctness/ Confirmation.
 To Submit Check List with Customs & obtain BOE No.
 Collection of D.O. from Airlines/Agent
 BOE assessed for Warehousing (Bonding).
 Inform Bonded Warehouse & obtain space availability Certificate
 Double Duty Bond to be filed with Customs
 After obtaining Bond No. To apply for Location slip at Air Cargo for moving of
Cargo to Customs Examination Area & Completion of Examination
 Examination report entered & “Removal for Warehousing (Bonding) order
Issued by Customs.
 On Receipt of Gate Pass, Cargo loaded on Truck & moved to Bonded Warehouse
 Receipt of Goods by Warehouse
 Acknowledgement of Goods (Re-Warehousing received in good Condition by Warehouse
Process Flow - Air Import Customs Clearance (Ex-Bond)
EX-BOND:
- On Payment of Duty
 Preparation of Check List for Ex-Bond Bill of Entry.
 Forward it to Consignee to check the correctness/ Confirmation.
 On confirmation from Consignee to Submit BOE Check List with Customs
& obtain BOE Number.
 BOE assessed for De-bonding (Ex-Bond) from Bonded Warehouse
 Payment of Customs Duty to Customs
 Applying Gate Pass upon Payment to Bonded Warehouse for necessary rges.
 Acknowledgement of Goods received in good Condition by Consignee
Process Flow - Ocean Import Customs Clearance (Bonding)
BONDING / WAREHOUSING:
- Without payment of Duty
 Pre alert from Origin office / Consignee
 Preparation of BOE Check List for Warehousing(Bonding)
 Bill of Entry. Forward it to Consignee to check the Correctness & Confirmation.
 BOE Assessed & Double Duty Bond filed with Customs
 After obtaining the Bond No. to apply for Location slip at Off-Dock CFS / Port for
moving of Container / Cargo to Customs Examination Area
 Examination report entered & “Removal for Warehousing order’ issued by Customs.
 On Receipt of Gate Pass, Cargo loaded on Truck & moved to Bonded Warehouse
(Bonding).
 Receipt of Goods by Bonded Warehouse.
 Acknowledgement of Goods (Re-Warehousing) received in good Condition by
Bonded Warehouse.
Process Flow - Ocean Import Customs Clearance (Ex-Bond)
EX-BOND:
- On Payment of Duty
 Preparation of Check List for (Ex-Bond) Bill of Entry.

 Forward it to Consignee to check the correctness/ Confirmation.
 On confirmation from Consignee to Submit Check List with Customs &
obtain BOE Number.
 BOE assessed for De-bonding (Ex-Bond) form Bonded Warehouse
 Payment of Customs Duty to Customs
 Applying Gate Pass upon Payment to Bonded Warehouse for necessary rges.
 Acknowledgement of Goods received in good Condition by Consignee
ABREVATIONS:
- Custom House Agent

EDI - Electronic Data Interface
AAI - Airports Authority of India
ChPT - Chennai Port Trust
CFS - Container Freight Station
MAWB - Master Airway Bill
HAWB - House Airway Bill
OBL - Original Bill of Lading
BL - Bill of Lading
BOE - Bill of Entry
IGM - Import General Manifest
E.C. - Essentiality Certificate
I.A. - Import Application (Port‘s document - for cargo delivery)
D.O. - Delivery Order
FCL - Full Container Load
LCL - Less than Container Load
L.C. - Letter of Credit
P.O. - Purse order
V.T. - Vehicle Ticket (issued by Port for cargo delivery)
D.C. - Delivery llan
POD - Proof of Delivery
Glossary of Shipping Terms:
B/L Bill of Lading (B/L)A document that establishes the terms of a contract between a shipper and a transportation company. It serves as a
document of title, a contract of carriage and a receipt for goods.
House B/L B/L issued by a freight forwarder or consolidator covering a single shipment containing the names, addresses and specific description of the goods
shipped.
Original B/L The part of the B/L set that has value, especially when negotiable; rest of set are only informational file copies. Abbreviated as OBL.
Break Bulk To unload and distribute a portion or all of the contents of a rail car, container, trailer, or ship.– Loose, non–containerized mark and count cargo. –
Packaged cargo that is not containerized.
Bulk Cargo Not in packages or containers; shipped loose in the hold of a ship without mark and count.” Grain, coal and sulfur are usually bulk freight.
Cargo Manifest A manifest that lists all cargo carried on a specific vessel voyage.
CBM (CM) Cubic Meter
CFS Container Freight Station.” A shipping dock where cargo is loaded (“stuffed”) into or unloaded (“stripped”) from containers. Generally, this involves
FCL/LCL (Full Container load/less than container load) shipments. These facilities can be located in container yards, or off dock.
Commercial Invoice Represents a complete record of the transaction between exporter and importer with regard to the goods sold. Also reports the
content of the shipment and serves as the basis for all other documents relating to the shipment.
Commercial
Transport Vessel Any ship which is used primarily in commercial:
(1) For transporting persons or goods to or from any harbour(s) or port(s) or between places within a harbour area;
(2) In connection with the construction, nge in construction, servicing, maintenance, repair, loading, unloading, movement, piloting, or salvaging
of any other ship or vessel.
Consignee A person or company to whom commodities are shipped.

Consignment (1) A stock of merndise advanced to a dealer and located at his place of business, but with title remaining in the source of supply.(2) A shipment of
goods to a consignee.
Consignor A person or company shown on the bill of lading as the shipper.
Consolidation Cargo containing shipments of two or more shippers or suppliers. Container load shipments may be consolidated for one or more consignees, often
in container load quantities.
Container Manifest Document showing contents and loading sequence, point of origin, and point of destination for a container. Vessels are required by law to carry such
a document for each container carried.
Container Terminal An area designated for the stowage of cargoes in container; usually accessible by truck, railroad and marine transportation. Here containers are
picked up, dropped off, maintained and housed.
CIF Cost, Insurance and Freight - Cost of goods, marine insurance and all transportation (freight) rges are paid to the foreign point
of delivery by the seller.
Custom House A government office where duties are paid, import documents filed, etc., on foreign shipments.
Custom House Agent A person or firm, licensed by the Customs Department, engaged in entering and clearing goods through Customs for a client (importer).
Demurrage A penalty rge against shippers or consignees for delaying the carrier’s equipment or vessel beyond the allowed free time. The free time and
demurrage rges are set forth in the Shipping line/Port/tariff.
Detention A penalty rge against shippers or consignees for delaying carrier’s equipment beyond allowed time. Demurrage applies to cargo; detention applies
to equipment (Containers).
EDI Abbreviation for “Electronic Data Interface.” Generic term for transmission of transactional data between computer systems. EDI is typically via a
batched transmission, usually conforming to consistent standards.
ETA, C, D, R, S Estimated Time of Arrival, Completion, Departure, Readiness, or Sailing– Estimated Time of Availability.
GATT Declaration A abbreviation for “General Agreement on Tariffs and Trade.” A multilateral treaty to help reduce trade barriers between the signatory countries and to
promote trade through tariff concessions. The World Trade Organization (WTO) superseded GATT in 1994.
HSN Code Harmonized System of Codes (HS) An international goods classification system for describing cargo in international trade under a single commodity –
coding scheme. Developed under the auspices of the Customs Co operations Council (CCC), an international Customs organization in Brussels, this
code is a hierarchically structured product nomenclature containing approximately 5,000 headings and sub-headings. It is organized into 99 pters
arranged in 22 sections. Sections encompass an industry (e.g., Section XI, Textiles and Textile Articles); pters encompass the various materials and
products of the industry (e.g., pter 50, Silk; pter 55, Manmade Staple Fibres; pter 57, Carpets).The basic code contains four–digit headings
and six–digit subheadings. Many countries add digits for Customs tariff and statistical purposes.
IFM Inward Foreign Manifest (IFM) A complete listing of all cargo entering the country of disrge. Required at all world ports and is
the primary source of cargo control, against which duty is assessed by the receiving country.
FCL Abbreviation for “Full Container Load.” The quantity of freight which is full of a container load rate.
LCL Abbreviation for “Less than Container Load.” The quantity of freight which is less than that required for the application of a
container load rate. Loose Freight.
L/C Letter of Credit (LC) A document, issued by a bank per instructions by a buyer of goods, authorizing the seller to draw a specified sum of money under
specified terms, usually the receipt by the bank of certain documents within a given time.
Manifest A Document that lists in detail all the bills of lading issued by a carrier or its agent or master for a specific voyage. A detailed summary of the total cargo
of a vessel. Used principally for Customs purposes.
NVOCC Non–Vessel Operating Common Carrier (NVOCC)A cargo consolidator in ocean trades who will buy space from a carrier and sub–sell it to smaller
shippers. The NVOCC issues bills of lading, publishes tariffs and otherwise conducts itself as an ocean common carrier, except that it will not provide
the actual ocean or intermodal service.
Ocean Bill of Lading A contract for transportation between a shipper and a carrier. It also evidences receipt of the cargo by the carrier. A bill of lading shows ownership
of the cargo and, if made negotiable, can be bought, sold or traded while the goods are in–transit.
OBL Original Bill of Lading (OBL) A document which requires proper signatures for consummating carriage of contract. Must be marked as “original”
by the issuing carrier.
Packing List Itemized list of commodities with marks/numbers but no cost values indicated.
Partial Shipments Under letters of credit, one or more shipments are allowed by the phrase “partial shipments permitted.”
POD Abbreviation for:– Port of Disrge.– Port of Destination.– Proof of Delivery. A document required from the carrier or driver for proper payment.
TEU (20’ Container) Abbreviation for “Twenty foot Equivalent Unit.”
FEU (40’ Container) Abbreviation for “Forty foot Equivalent Unit.”
Wharfage rge assessed by a Port or dock owner against freight handled over the pier or dock or against a steamship company/Consignee using the
pier or dock.
OVERSEAS SUPPLIER:
• Booking of Cargo with the Shipping Line / Freight Forwarding Agent upto Chennai Airport / Sea Port.
• Sending the Import Documents (Commercial Invoice, Packing List, Original Bill of Lading etc.,) to Consignee
AIRLINE/SHIPPING LINE/FORWARDING AGENT:
• Sends the CAN (Cargo Arrival Notice) to Importer informing the cargo arrival details
• Airline/Shipping Line/Agents will file a (IGM) Import Manifest with Customs for the cargo carried
• Issues Delivery order on receipt of applicable rges (D.O./THC etc.,) from Consignee/
• Issues Delivery Order Extension beyond Free days (03 days) by collecting applicable Container Detention rges
(applicable only for FCL - Full Container Load).
IMPORTER:
• Importer will appoint (Custom House Agent) to collect the CAN & Import Documents (Invoice, Pkg List, Original Bill of Lading etc.,) to file with
Customs and arrange for delivery of the cargo.
• Importer will ask to provide the details of Payments (with break-up) to be made to Airlines/AAI (Airports Authority of India)
/Shipping Lines/Chennai Port/CFS (Container Freight Station) as applicable.
• to arrange working sheet (with break-up) with payment request to Importer for arranging payment.
• Consignee will check the working sheet/payment request and will ask to pay.
• Importer will also transfer the funds by way of ECS to Shipping line/CFS/Port Trust etc.
• will intimate Importer on completion of Customs documentation (Assessment/D.O. etc).
• Importer/ will intimate to their nominated Surveyor & Transporters about the readiness of Customs documents and
arrange to place the Vehicle for loading at Airport/CFS/Sea Port - the same is intimated to for co-ordination with
Surveyor/Transporter/Port/CFS for loading of cargo.
• Importer will settle ’s Bills as per the agreed contract rates/terms.
CHA (Custom House Agent) will:
 Collect the required work order along with import documents from Importer on intimation from them.
 Prepare a BOE (Bill of Entry) check list based on the import documents provided by Importer and forward to Importer to otain their confirmation.
 Check with Airline/Shipping Line for the IGM (Import General Mnaifest) No./arrival of the cargo & rges applicable etc.,
 File the BOE on-line with Customs based on the information obtained from Airline/Shippingline/Forwarding Agent etc.,
 Apply to Dy. Commissioner for his approval, if the BOE is filed after 30 days of cargo arrival U/S 48.
 Obtain BOE number and complete the assessment of BOE on receipt of complete import documents.
 Arrange to collect the necessary rges payable from Shipping Line/Airline/Port/CFS/AAI and initimate to Importer by sending a working sheet (with
break-up) with payment request towards D.O. fee/Port dues/AAI/CFS rges Importer will check the working sheet/payment request and will ask to pay
(OR) Importer will arrange funds transfer/D.D. Etc.,
 Collect the Delivery Order from the Airline/Shipping Line on payment and will arrange for Customs examination (w.r.t. import docs) of Cargo
and obtain OOC (Out of rge order) from Customs / Importer will pay the necessary CFS/Port rges for delivering the cargo.
 Forward all necessary receipts paid by Importer for D.O./Port dues/CFS etc.,
 Intimate CFS/Port and apply for loading/delivery Gang for delivering the cargo on Importer‘s instruction.
 Co-ordinate with Importer‘s appointed Surveyor & Transporter for loading/delivery of the cargo.
 Send a request for any additional fund (detention/demurrage/storage etc.,) if required to Importer.
 Submit Service Bill prepared as per contract and produce all supporting (receipt etc.,) to Importer.
 Submit all “Post Shipment Documents” (Duplicate/Exnge control copy of Bill of Entry etc.,) to Importer upon completion of clearance.
CUSTOMS:
• Customs (EDI Section) will process the BOE uploaded by and allot the BOE number
• If the BOE is filed beyond 30 days – then this will be filed u/s 48 and BOE forwarded to concern Dy. Commissioner for his approval and then the BOE numbe
will be generated on approval (this process will take normally min. 03-05 days).
• Group Customs will verify all the documents produced by and complete the assessment
• Docks Customs (Air/CFS/Port) will examine the Cargo as per Bill of entry and other import documents and issues OOC (Out of rge order).
AAI (Airports Authority of India):

• Free Days – 72 Hrs from time of Cargo landing at Airport
• Beyond Free Days – Demurrage/Storages rges applicable as per AAI tariff
• Airport Authorities will deliver the cargo after collection of their dues by using forklift/crane & manual.
CFS (Containerised Cargo):

(a) Handling rges – applicable as per CFS tariff
(b) Storage rges:
• LCL (Less Container Load) – Free Days – 03 days from the time of de-stuffing from Container at CFS
• Beyond Free Days – Storage rges applicable as per CFS tariff
• FCL (Full Container Load) – Free Days – 03 Days from the time of receiving from the Port
• Beyond Free Days – Storage rges applicable as per CFS tariff
• CFS will load & deliver the cargo upon collection of their dues by using forklift/crane & manual
PORT TRUST (Break-Bulk Cargo):

(a) Port Dues (Wharfage, Cranage, Levy rges) – applicable as per ChPT Tariff
(b) Demurrage rges:
• Free Days – 07 Days from time of un-loading from Vessel

• Beyond Free Days – Demurrage/Storages applicable as per ChPT Tariff
• Port Trust will load & deliver the cargo upon collection of their dues as on date (rges to be paid in the Port’s Import Application by ) by using forklift/crane &
manual. Port will issue V.T. (Vehicle Ticket) for each loaded vehicle.
• Port Import Application will be closed once all the cargo is delivered
Air Import Customs Clearance - Process Flow
Responsibility Documents required (Pre-Alert):

1. Import Invoice , PL-Original, Copy of MAWB/HAWB
IOR (IMPORTER ON 2. COA / Test Certificate
RECORD) 3. Compliance Documents (IEC, KYC, CCR etc.)
Broker Verify Documents
Broker If Documents are OK, then file the customs declarations – Online EDI If any Discrepancy is noticed, Documents to be re-forwarded to IOR/ FWDR
for necessary correction / amendments
Preparation BOE check list & get Processing of Bill of Entry

Broker confirmation from IOR
If BOE facilitated If BOE facilitated with Non-
BOE will be assessed in Group
Issuance of Delivery order with RMS RMS
FRIEGHT FORWARDER
Payment of Duty on-line (or) DD by IOR

IOR
(Importer on Record)
Take delivery and load into Trucks.

To approach Custodian (AAI) to
Broker forward package to Examination AAI Process /
Terminal Dues paid POD to be obtained upon delivery of
area and To obtain
& Gate pass to be cargo to Consignee
OPERATIONS AT Customs “out of rge order” upon obtained
AIRPORT completion of Examination
Broker Forwarding post shipment documents after Clearance to IOR (or) Freight Forwarder
Post Shipment
Documents Original Bill of Entry & Duty paid T.R. 6 llan etc.,
74
Sea Import Customs Clearance - Process Flow
(LCL Shipment)
Receipt of Pre-Alerts/ Import Documents
1. Import Invoice , PL-Original, Copy of MBL/HBL
2. COA / Test Certificate
3. Compliance Documents (IEC, KYC, CCR etc.)
If in-correct /in-sufficient –
Seek correct /Additional Docs
Scrutiny of Docs (including KYC/CCR requirements).

If correct , prepare BOE Check List /get Consignee confirmation & file
BOE as per IGM filed by Liner/Agents
BOE Allotted to
Group
If – RMS / ACP If Non-RMS
Facilitated
BOE Second Check BOE First Check
Examination Prescribed Examination Prescribed
BOE Print ready for Duty payment

BOE Assessment for Duty To Approach Custodian (Port/CFS) to forward Package
Pay Duty online / by D.D.
Pay Duty online / by D.D. First Check Examination & Reporting
To Approach Custodian (Port/CFS) to forward Package for
examination To Approach Custodian (Port/CFS) to forward Package for
examination BOE Assessment for Duty
Customs Out of charge order
Customs Out of charge order Pay Duty online / by D.D.
Port/CFS Process/Terminal Dues paid & Gate pass
Port/CFS Process/Terminal Dues paid & Gate pass Customs Out of charge order
Take Delivery / Load into Trucks.
POD to be obtained upon delivery of cargo to Consignee Port/CFS Process / Terminal Dues paid & Gate pass
POD to be obtained upon delivery of cargo to Consignee
POD to be obtained upon delivery of cargo to Consignee
Broker Forwarding post shipment documents after Clearance to IOR (or) Freight Forwarder
Post Shipment Documents Original Bill of Entry & Duty paid T.R. 6 llan etc.,
75
Sea Import Customs Clearance - Process Flow
(FCL Shipment)
Receipt of Pre-Alerts/ Import Documents
1. Import Invoice , PL-Original, Copy of MBL/HBL
2. COA / Test Certificate
3. Compliance Documents (IEC, KYC, CCR etc.)
If in-correct /in-sufficient –
Seek correct /Additional Docs
Scrutiny of Docs (including KYC/CCR requirements).

If correct , prepare BOE Check List /get Consignee confirmation & file
BOE as per IGM filed by Liner/Agents
BOE Allotted to
If – RMS / ACP Group
If Non-RMS
Facilitated
BOE Second Check BOE First Check
Examination Prescribed Examination Prescribed
BOE Print ready for Duty payment

BOE Assessment for Duty To Approach Custodian (Port/CFS) to forward Package
Pay Duty online / by D.D.
Pay Duty online / by D.D. First Check Examination & Reporting
To Approach Custodian (Port/CFS) to forward Container for
examination To Approach Custodian (Port/CFS) to forward Container for
examination BOE Assessment for Duty
Customs Out of Charge order
Customs Out of Charge order Pay Duty online / by D.D.
Port/CFS Process/Terminal Dues paid & Gate pass
Port/CFS Process/Terminal Dues paid & Gate pass Customs Out of Charge order
Take Delivery / Load the Container onto Trailer.
If Container de-stuffed at CFS, Take Delivery / Load the Container onto Trailer. Port/CFS Process / Terminal Dues paid & Gate pass
cargo to be loaded onto Trucks. If Container de-stuffed at CFS,
POD to be obtained upon delivery of cargo to Consignee cargo to be loaded onto Trucks. Take Delivery / Load the Container onto Trailer.
POD to be obtained upon delivery of cargo to Consignee If Container de-stuffed at CFS,
cargo to be loaded onto Trucks.
Broker Forwarding post shipment documents after Clearance to IOR (or) Freight Forwarder POD to be obtained upon delivery of cargo to Consignee
Post Shipment Documents
Original Bill of Entry & Duty paid T.R. 6 llan etc.,
76

Customs Clearance Training - (Export Import) 1

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CUSTOMS CLEARANCE TRAINING :

1. DGFT (Directorate General of Foreign Trade) - Mandatory Compliance (IEC ),

3. CUSTOM HOUSE AGENT - CUSTOMS CLEARANCE

DGFT (Directorate General of Foreign Trade)

Import Export Code (IEC) – What, Who, How…

Who can get IEC?

How to get IEC?

Import Export Code (IEC)

Procedure for Applying IEC (Import and Export Code):

IEC Code Number Related links:

DGFT Online IEC Code Number Application : Form -ANF-2A

DGFT Zonal Office New Delhi :- IEC Help contact

Foreign Trade Policy (2015 – 2020)

 General Provisions regarding Import and Export

 Special Focus Initiatives

 Duty Exemption / Remission Schemes

 Export Promotion Capital Goods Scheme

 Export Oriented Units (EOUs) etc

 Special Economic Zones

• Export/Import of Restricted Goods/Services

• Terms and Conditions of a license / Certificate / Permission / Authorization

• Sale on High Seas

Other Major Export Incentives

Export Oriented Units (EOUs) Etc.

 Net Foreign Exnge Earnings

 Other Supplies in DTA

 Entitlement for supplies from the DTA

 Inter Unit Transfer

Export Oriented Units (EOUs) Etc.

 Reconditioning / Repair and Re-engineering

 Replacement / Repair of imported / Indigenous Goods

 Exit from EOU Scheme

 Export / Import by Post / Courier

 Revival of Sick Units

Export Oriented Unit (‘EOU’) scheme

Export Oriented Unit (‘EOU’) scheme

EOU scheme – Eligibility Criteria

 Meaning of term service is similar for EOU and EPCG

 Duty free imports of all goods including capital goods.

 Trading units are not covered by EOU

Net Foreign Exnge earnings (NFE)

 NFE is computed as :(Positive NFE = A - B > 0), where

 Export proceeds should be realized within 12 months

Entitlement for supplies from DTA

• DTA supplier is entitled to export duty drawback

• EOU shall be entitled for :

 Exemption from payment of Central Excise duty on all goods

 Reimbursement of duty paid on fuel procured from domestic oil companies/

Special Economic Zones (SEZ)

 The main objectives of the SEZ Act are:

– Promotion of exports of goods and services

– Promotion of investment from domestic and foreign sources

– Creation of employment opportunities

– Development of infrastructure facilities

 The SEZ Rules provide for:

– Single window clearance for setting up a unit in a Special Economic Zone

– Supplies to projects/purposes that involve international competitive bidding

– Supplies to infrastructure projects of national importance

 Specified categories of supplies eligible for Deemed Exports include:

– Supply of goods to Export Oriented Units (EOUs) etc.

– Deemed Export Drawback

– Exemption/ Refund of Terminal Excise duty

Three Systems are major Components of Indian Custom automation