Name of the Organisation : Narendra Forwarders Private Ltd (nfpl.net)
Type of Facility : Procedure For Import Goods in India
Location : Mumbai
Website : http://www.nfpl.net/index.html
Procedure For Import Goods in India:
Goods are imported in India or exported from India through sea, air or land. Goods can come through post parcel or as baggage with passengers. Procedures naturally vary depending on mode of import or export. Procedures discussed in this Chapter are applicable for imports by sea, air or land, but not as baggage or postal dispatch.
Import Procedures :
Procedures have to be followed by ‘person-in-charge of conveyance’ as well as the importer.
Who is person in charge ?
As per section 2(31), ‘person in charge’ means
(a) In case of vessel – its master
(b) In case of aircraft – its commander or pilot-in-charge
(c) In case of train – its conductor or guard and
(d) In case of vehicle or other conveyance – its driver or other person in charge.
The significance of this definition is –
** He is responsible for submitting Import Manifest and Export Manifest
** He is responsible to ensure that the conveyance comes through approved route and lands at approved place only.
** He has to ensure that goods are unloaded after written order, at proper place. Loading also has to be only after permission.
** He has to ensure that conveyance does not leave without written order of Customs authorities.
** He can be penalised for (a) Giving false declaration and statement (b) shortages or non-accounting of goods in conveyance
Procedure to be followed by the Carrier :
The ‘person in charge of conveyance’ (carrier of goods) has to follow prescribed procedure.
Arrival at customs port/airport only :
Section 29 provides that person-in-charge of a vessel or an aircraft entering India shall call or land at customs port or customs airport only. It can land at other place only if compelled by accident, stress of weather or other unavoidable cause. In such case, he should report to nearest police station or Customs Officer. While arriving by land route, the vehicle should come by approved route to ‘land customs station’ only.
Import Manifest / Report :
Person-in-charge of vessel, aircraft or vehicle has to submit Import Manifest / Report. [also termed as IGM – Import General Manifest]. (In case of a vessel or aircraft, it is called import manifest, while in case of vehicle, it is called import report.) The import manifest in case of vessel or aircraft is required to be submitted prior to arrival of a vessel or aircraft. Import report (in case of vehicle) has to be submitted within 12 hours of arrival at the customs station. If the report / manifest could not be submitted within prescribed time, person-in-charge or any person specified as responsible by a notification is liable to penalty upto Rs 50,000. Such penalty will not be imposed if the excise officer is satisfied that there was sufficient cause for the delay. [section 30(1)].
IGM can be submitted electronically through floppy where EDI facility is available.
Import manifest is required to be submitted before arrival of aircraft or vessel :
Section 30(1) of Customs Act provides that Import Manifest should be filed before arrival of ship or aircraft. Normally, the Agents submit the Import Manifest before arrival, so that maximum possible formalities are completed before vessel or aircraft arrives. This also enables importers to file ‘Bill of Entry’ in advance.
Grant of Entry Inwards by Customs Officer :
Unloading of cargo can start only after Customs Officer grant ‘Entry Inwards’. Such entry inwards can be granted only when berthing accommodation is granted to a vessel. If there is heavy congestion at port, shipping berth may not be available and in such case, ‘Entry Inwards’ cannot be granted. This date is highly relevant for determining rate of customs duty applicable.
Carrier responsible for shortages during unloading :
If the goods are short landed, the carrier is liable to pay penalty upto twice the amount of duty payable on such short landed goods. It has been held that tally sheet prepared by Port Trust authorities on unloading of goods is a statutory document and should be accepted in preference to steamer survey – Scindia Steam Navigation v. CC – 1988 (33) ELT (CEGAT) followed in re India Steamship Co. Ltd. – 1992 (57) ELT 510 (GOI).
Procedure by Importer :
The importer importing the goods has to follow prescribed procedures for import by ship/air/road. (There is separate procedure for goods imported as a baggage or by post.) Bill of Entry – This is a very vital and important document which every importer has to submit under section 46. The Bill of Entry should be in prescribed form. The standard size of Bill of Entry is 16″ × 13″. However, for computerisation purposes, 15″ × 12″ size is permitted. (Mumbai Customs Public Notice No. 142/93 dated 3-11- 93).
Bill of Entry should be submitted in quadruplicate :
original and duplicate for customs, triplicate for the importer and fourth copy is meant for bank for making remittances. Under EDI system, Bill of Entry is actually printed on computer in triplicate only after ‘out of charge’ order is given. Duplicate copy is given to importer.
Types of Bill of Entry :
Bills of Entry should be of one of three types. Out of these, two types are for clearance from customs while third is for clearance from warehouse.
Bill of entry for home consumption :
This form, called ‘Bill of Entry for Home Consumption’, is used when the imported goods are to be cleared on payment of full duty. Home consumption means use within India. It is white coloured and hence often called ‘white bill of entry’.
Bill of entry for warehousing :
If the imported goods are not required immediately, importer may like to store the goods in a warehouse without payment of duty under a bond and then clear from warehouse when required on payment of duty. This will enable him to defer payment of customs duty till goods are actually required by him. This Bill of Entry is printed on yellow paper and often called ‘Yellow Bill of Entry’. It is also called ‘Into Bond Bill of Entry’ as bond is executed for transfer of goods in warehouse without payment of duty.
Bill of entry for ex-bond clearance :
The third type is for Ex-Bond clearance. This is used for clearance from the warehouse on payment of duty and is printed on green paper. The goods are classified and value is assessed at the time of clearance from customs port. Thus, value and classification is not required to be determined in this bill of entry. The columns in this bill of entry are similar to other bills of entry. However, declaration by importer is not required as the goods are already assessed.
Rate of duty for clearance from warehouse :
It may be noted that rate of duty applicable is
as prevalent on date of removal from warehouse. Thus, if rate has changed after goods are cleared from customs
port, customs duty as assessed on yellow bill of entry and as paid on green bill of entry will not be same.
Mention of BIN on Bill of Entry – A BIN (Business Identification Number) is allotted to each importer and
exporter w.e.f. 1.4.2001. It is a 15 digit code based on PAN of Income Tax (PAN is a 10 digit code). [Earlier an
EC (Import Export code) number issued by DGFT was required to be mentioned on Bill of Entry].
Filing of Bill of Entry – Normally, Bill of Entry is filed by CHA on behalf of the importer. Customs work at
some ports has been computerised. In that case, the Bill of Entry has to be filed electronically, i.e. through
Customs EDI system through computerisation of work. Procedure for the same has been prescribed vide Bill of
Entry (Electronic Declaration) Regulations, 1995.
Documents to be submitted by Importer :
Documents required by customs authorities are required to be submitted to enable them to
(a) check the goods
(b) decide value and classification of goods and
(c) to ensure that the import is legally permitted.
The documents that are essentially required are :
(i) Invoice
(ii) Packing List
(iii) Bill of Lading / Delivery Order
(iv) GATT declaration form duly filled in
(v) Importers / CHAs declaration duly signed
(vi) Import Licence or attested photocopy when clearance is under licence
(vii) Letter of Credit / Bank Draft wherever necessary
(vii) Insurance memo or insurance policy
(viii) Industrial License if required
(ix) Certificate of country of origin, if preferential rate is claimed.
(x) Technical literature.
(xi) Test report in case of chemicals
(xii) Advance License / DEPB in original, where applicable
(xiii) Split up of value of spares, components and machinery
(xiv) No commission declaration. – A declaration in prescribed form about correctness of information should be submitted. – Chapter 3 Para 6 and 7 of CBE&C’s Customs Manual, 2001.
The Noting is now done electronically in large ports, while it is done manually in small ports. Thoka Number (Serial Number) is given while noting the Bill of Entry.
Electronic submission under EDI system :
Where EDI system is implemented, formal submission of Bill of Entry is not required, as it is generated in computer system. Importer should submit declaration in electronic format to ‘Service Centre’. A signed paper copy of declaration for non-repudiability should be submitted. Bill of Entry number is generated by system which is endorsed on printed check list. Original documents are to be submitted only at the stage of examination.
Assessment of Duty and Clearance https://www.indianjobtalks.in/uploads/2288-procedure%20for%20import%20and%20export.pdf