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Im-Custom Clearance Procedure

This document outlines the key steps and requirements for customs clearance of export shipments in India. It discusses the different modes of shipment [air, sea, land, post], important registrations required with customs including EDP number and import-export codes, and the exchange control declaration form filing process. It also describes the documentation requirements, customs clearance procedures, basis for calculating duties and taxes, and provisional assessment. The overall purpose is to explain the procedure for obtaining a letter of export order and clearing goods through customs.

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mohildasadia
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© Attribution Non-Commercial (BY-NC)
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Download as PPTX, PDF, TXT or read online on Scribd
106 views

Im-Custom Clearance Procedure

This document outlines the key steps and requirements for customs clearance of export shipments in India. It discusses the different modes of shipment [air, sea, land, post], important registrations required with customs including EDP number and import-export codes, and the exchange control declaration form filing process. It also describes the documentation requirements, customs clearance procedures, basis for calculating duties and taxes, and provisional assessment. The overall purpose is to explain the procedure for obtaining a letter of export order and clearing goods through customs.

Uploaded by

mohildasadia
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Custom clearance procedure

Presented By:
Mohil Dasadia
Priyanka Singh

1
CUSTOMS CLEARANCE OF EXPORT
SHIPMENT
 Shipment by Air

 Shipment by Sea

 Shipment by Land

 Shipment by Post

2
IMPORTANT REGISTERATIONS WITH
THE CUSTOMS
• Allotment of EDP NUMBER (ELECTRONIC DATA
PROCESSING)

• Importer-Exporter Code,

• RBI Code Number,

• Authorized Dealer Code of the e bank and

• current account
3
EXCHANGE CONTROL
DECLARATION FORM
 Every exporter is required to declare the exchange value of the export
shipment by giving an undertaking that the export proceeds shall be released
within a period of 6 months or due date whichever is earlier.

 Manual processing: GR FORM for sea and air. It is issued in 6 copies.

 GR form in case of Post is called PP

 GR form in case of Software is called SOFTEX.

 Computerized Processing: GR Form is replaced by SDF DECLARATION-


2 Copies

4
DOCUMENTATION REQUIRMENT
FOR CUSTOMS CLEARANCE

 Objective: To obtain LET EXPORT ORDER

5
CUSTOMER CLEARANCE
PROCEDURES
 Checking the Shipping Documents

 Physical Examination of the export cargo

 Loading of the goods

 Post Loading Certification

6
Documents Required and
provided to the clearing agent for processing.

 Invoice of shipment

 Packing list

 Bill of lading

 Copy of the Letter of Credit or Contract

7
Documents required for importing first time
 Copy of the Sales Tax Registration Certificate as an
importer

 Copy of Registration Certificate issued by the


Export Promotion Bureau incase of import of Gems
and Jewelry

 Copy of the National Tax Number

 Copy of the most recent sales tax return


8
Filing / Examination of Bills of Entry:
 White Bill of Entry: The bill is prepared when the consignment is to be

cleared against the cash payment of the duty levied without transferring it

to a warehouse.
 Yellow Bill of Entry: This bill is filed when the shipment is transferred to

the bonded warehouses.


 Green Bill of Entry: This bill of entry is used for the release of shipments

which have been placed in bonded warehouse against the yellow colored

bill of entry.

9
Clearance of Goods requiring immediate
Release

 An officer of customs not below the rank of Assistant


Collector Customs may allow release of goods
requiring immediate clearance, even prior to
presentation of bill of entry thereof and subject to
such conditions and restrictions as may be prescribed
by the Central Board of Revenue.

10
Assessment of duties / taxes
 First appraisal of the consignment:
During first appraisal the case is
forwarded to the appraisement hall where the specific percentage of
goods imported is determined for examination. The principal
appraiser marks the case to the Inspector and Deputy
Superintendent for examination. The inspector after examining the
goods marks the case to the Deputy Superintendent for further
approval.

11
Conti…
 The second appraisement of the shipment:
second appraisal carried out by the
customs department in reference to the report
forwarded by the principle appraiser along with
documents submitted by the clearing agent for
determination of customs duty.
12
Release of Goods
 After assessment of valuation the case is then forwarded to the “Inspector - Out of

Charge” for final release and issuance of a gate pass. Following documents are

submitted to the Inspector for Processing:


 Copy of Invoice
 Copy of Packing List
 Bill of Entry (Original Copy, Quadruplicate Copy and Statistical Copy)

With the issuance of gate pass, the importer is directed to deposit the amount

of duty assessed, warehouse charges, fines and penalties, if any, placed by the port

authorities. Once the payment is made, the shipment is released and can be loaded and

transported to its destination.

13
Basis of calculation of duty
 Declared Value: This is the value of the
consignment as given on the invoice and
shown in the bills of entry.

 Evidence Value: This value is based on the


history of previous duty paid by the importer
of the same commodity.

14
Provisional Assessment of duty
 Where it is not immediately possible to assess the customs duty on any imported goods for the

following reasons:

• That the goods require chemical or other test or

• Further inquiry for the purposes of assessment or

• That all the documents or complete documents or full information pertaining to those

goods have not been furnished,


An officer not below the rank of Assistant Collector or Deputy Collector of Customs

may order that the duty payable on such goods be assessed provisionally subject to the payment

of any additional amount or furnishing of bank guarantee for the purposes of securing payment

of duty, if any, payable on final assessment, by the importer, as such officer deems sufficient.

15
Submission of Goods Declaration
 The Goods Declaration i.e. on line filing of bills of entry etc.
may be filed on line at least 24 hours before the arrival of the
vessel. The duties and taxes are computed and discharged (at any
nearest online bank branch) by the importer before submission
of the declaration to the Customs. On submission of the
document the importer is granted an online receipt in the shape
of Customs Reference Number (CRN) also known as Machine
Number.

16
Thank you!!!

17

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