E-way Bill for Import Transactions

E-way Bill for Inter-state transactions become mandatory with effect from
1st of April’2018 and for Intra- State in a phased manner but before 30th
June’2018. Already five states – Andhra Pradesh, Gujarat, Kerala,
Telangana, uttar Pradesh decided to go with E-Way Bill for Intra-State
transactions in their respective states.

e-way bill is a document required to be carried by a person in charge of the

conveyance carrying any consignment of goods of value exceeding fifty
thousand rupees as mandated by the Government in terms of Section 68 of
the Goods and Services Tax Act, 2017 read with Rule 138 of the rules
framed thereunder. It is generated from the GST Common Portal for e-Way
bill system by the registered persons or transporters who cause movement of
goods of consignment before commencement of such movement.

There are certain doubts and apprehensions regarding generation of E-way

Bills in case of Import Consignments. Let us discuss in this paper regarding
those aspects in detail.

Import – Imported Goods – Importer:

As per Sec 2(23) of Customs Act 1962, “import“, with its grammatical
variations and cognate expressions, means bringing into India from a place
outside India;

Sec 2(24) of Customs Act 1962 “import manifest” or “import report”

means the manifest or report required to be delivered under section 30;

Sec 2(25) of Customs Act 1962 “imported goods” means any goods
brought into India from a place outside India but does not include goods
which have been cleared for home consumption;

As per Sec 2(10) of IGST Act : ‘‘import of goods” with its grammatical
variations and cognate expressions, means bringing goods into India from a
place outside India.

Sec 2(26) of Customs Act 1962: “importer“, in relation to any goods at

any time between their importation and the time when they are cleared for
home consumption, includes 18[any owner, beneficial owner] or any person
holding himself out to be the importer;

Se 2(27) of Customs Act 1962: “India” includes the territorial waters of

India.

Conveyances Carrying Imported Goods – Arrival at Customs Port or

Airport :

Sec 29(1) of Customs Act, provides that the person-in-charge of a vessel or

an aircraft entering India from any place outside India shall call or land at
customs port or a customs airport, as the case may be. Further Sec 30(1)
of Customs Act provides that the person-in-charge of – a vessel; or an
aircraft; or a vehicle, carrying imported goods shall, file an import manifest
(generally called IGM – Import General Manifesto) by presenting
electronically twelve hours prior to the arrival of the vessel or the aircraft.
After delivery of Import Manifesto customs offices grants Entry Inwards
under Sec 31 of Customs Act. Sec 32 of the Customs Act provides that only
those goods mentioned in the Import Manifesto can be unloaded.

As per Sec 45 of the Customs Act, import goods after unloaded, remains in
the custody of Port Trust Authority in case of major ports and Air Ports
Authority of India in case of airports, but under control of Customs Officers
till goods are cleared.

Customs Entry Inward – E-Way Bill Not Required:

Until the imported goods are cleared and given Out of Customs Charge
order by customs officer, such goods are in the custody of customs.
Therefore, for entry of imported goods to Indian customs from a place
outside India no E-Way Bill is required.

Transport from Customs Port / Airport to ICD / IFS: E-Way Bill Not
Required

Import consignments after unloaded at Customs Port / Airport are generally

moved to Inland Container Depot (ICD) or a Container Freight Station (IFS)
for clearance by Customs.

As per Rule 138(14)(c) of CGST Rules, No E-Way Bill is required where

the goods are being transported from the customs port, airport, air cargo
complex and land customs station to an inland container depot or a container
freight station for clearance by Customs.
Entry of Goods on Importation – Clearance by Customs:

As per Sec 46(1) of Customs Act, the importer of any goods, shall make
entry thereof by presenting electronically to the proper officer a bill of entry
for home consumption or warehousing in the prescribed form.

Sec 46(3) of Customs Act provides that the importer shall present the bill of
entry under sub-section (1) before the end of the next day following the
day (excluding holidays) on which the aircraft or vessel or vehicle carrying
the goods arrives at a customs station at which such goods are to be cleared
for home consumption or warehousing.

Clearance of Goods for Home Consumption – Transport After

Clearance: E-Way Bill Required

As per Sec 47(1) of Customs Act, where the proper officer is satisfied that
any goods entered for home consumption are not prohibited goods and the
importer has paid the import duty, the proper officer may make an order
permitting clearance of the goods for home consumption.

After the Customs clearance for Home Consumption, the importer may take
the goods to his place of business. For Transport After Customs
Clearance E-Way bill is Required to be generated by the Importer or his
Authorized Transporter.

Clearance of goods for Ware-House – Transport to Ware-House: E-Way

Bill Not Required

As per Sec 59 (1) of Customs Act, the importer shall execute a ware-house
bond for a sum equal to twice the amount of the duty assessed on such goods
for keeping the goods in warehouse without payment of duty and latter
clearing on payment of duty when required. As per Sec 60 the proper officer
may make an order permitting the deposit of the goods in a warehouse when
the provisions of section 59 have been complied with in respect of any
goods. In such case the goods move from Customs Station to Warehouse
under Customs Seal.

Rule 138(14)(h)(ii) of CGST Rules, provides that No E-way Bill Required

where the goods are being transported under customs seal.

Clearance of Warehoused Goods for Home Consumption – Ex-Bond

Clearance – Transport to Importers Place of Business: E-Way Bill
Required

The importer of any warehoused goods under Sec 68 of Customs Act may
clear them for home consumption, by filling bill of entry for home
consumption in respect of such goods and on payment of import
duty leviable on such goods and an order for clearance of such goods for
home consumption has been made by the proper officer.

After such Ex- Bond Clearance by importer the goods may be transported to
any business place of the importer. For such transportation E-Way Bill is
required.

General Exemptions for E-Way Bill are Also Applicable

In all the above discussions where it has been mentioned that E-Way
Bill is required are also subject to general provisions exempting the
requirement of E-Way Bill as per Rule 138 (14), such as goods as
mentioned in Annexure to the Rule, alcoholic liquor for human
consumption, petroleum crude, high speed diesel, motor spirit (commonly
known as petrol), natural gas or aviation turbine fuel; Exempted goods etc

For example, if the Imported goods are exempted under GST, in such case
for transportation for home consumption after customs clearance, No E-Way
Bill is Required

Disclaimer : The views and opinions; thoughts and assumptions; analysis

and conclusions expressed in this article are those of the authors and do not
necessarily reflect any legal standing.

Author : SN Panigrahi, GST Consultant, Practitioner, Corporate

Trainer & Author

Can be reached @ snpanigrahi1963@gmail.com