on

27th november, 2015

at
Custom House, Chennai
 OBJECTIVES of TRS
 To identify bottlenecks affecting customs release.

 Assessing newly introduced and modified techniques,

procedure & technologies.

 Establishment of baseline trade facilitation performance

measurement .

 Identifying opportunities for trade facilitation

improvements.

 Facilitates ‘ease of doing business’.

 SCOPE of TRS

Measures the mean average time taken in each process of Customs

clearance from arrival of goods to the release of the goods (Out of
Charge – OOC).

Is based on the declarations filed and processed electronically.

About 99.75% of import declarations are filed electronically in

Custom House.
 METHODOLOGY ADOPTED

Sampling methodology.

 As per WCO guidelines, the sample should ideally include all the
declarations processed in a period of at least 7 consecutive working
days.

The period chosen for the study of should be one of the normal
traffic periods.

Time period of 03.11.2015 to 09.11.2015,from Tuesday to next

Monday was undertaken for this Analysis.

During this period, there was no slowdown or break down of EDI

System. Hence data collected reflects a fairly representative sample.
 WORKFLOW OF CUSTOMS CLEARANCE

Customs clearance can be broadly classified into following stages:

1. Filing of IGM ACTION OWNER : SHIPPING LINER

2. Filing of BE ACTION OWNER : IMPORTER / CB

3. Processing of declaration automatically by Risk Management System (RMS), which decides

to facilitate the BE or send the BE for scrutiny by Assessment Group.
ACTION OWNER : ICES 1.5

4. Scrutiny is done either through 1st check or 2nd check assessment, which is done at the
behest of importer or Customs;
ACTION OWNER : CUSTOMS

5. 1st check assessment ACTION OWNER: CUSTOMS

 WORKFLOW OF CUSTOMS CLEARANCE
Cntd...

6. 2nd Check Assessment ACTION OWNER : CUSTOMS

7. Payment of Duty ACTION OWNER : IMPORTER / BANK

8. Goods Registration ACTION OWNER : IMPORTER / CB

9. Examination of goods ACTION OWNER : CUSTOMS

10. Out of Charge (OOC) in ICES. ACTION OWNER : CUSTOMS

Stage 3 to 6 and 9 & 10

: Processing attributable to
Customs
Aggregate of Stages 1 to 10
: Total time taken for the goods to
be released to the importer
 RMS MONITORING SYSTEM

TOTAL NUMBER OF BILLS OF ENTRY FILED 6828

NUMBER OF BILLS OF ENTRY FACILITATED 4101(60.06%)

NUMBER OF BILLS OF ENTRY NON FACILITATED 2727(39.94%)

FIRST CHECK BILLS OF ENTRY 346(4.34%)

SECOND CHECK BILLS OF ENTRY 2381(94.93%)

 For the period 03/11/15 to 09/11/15

2727,
4101,
40%
60% No.of B.E faciliated
No.of B.E Non-faciliated
 ANALYSIS OF
A. VESSEL ARRIVALTO FILING OF BE
STAGES 1 & 2 - Action Owner : Importer / CB

Time taken in Hours No. of Bs/E Cumulative %age of Total

Documents Filed
< 08 1278 18.84
< 16 373 24.34
< 24 529 32.13
< 32 416 38.27
< 40 391 44.03
< 48 523 51.74
< 72 879 64.70
> 72 2395 100
Total 6784
Analysis How do we move forward

 32% of BsE were filed within 24 hrs from grant of entry inwards. 1. The Importer / CB needs to be ready
with all the documents and file
maximum possible Bs/E within 24 hrs of
arrival of the vessel.
2. They can also avail the facility of filing
prior entry or advance bill of entry in
terms of Section 46 (3) of the Customs
Act, 1962.
 ANALYSIS OF B. TIME TAKEN IN FILING TO
STAGES 2 TO 6 ASSESSMENT
- Action Owner : CUSTOMS

Time taken in Hours No. of Bs/E Cumulative %age of Total

Documents Filed
< 08 4367 64.37
< 16 26 64.76
< 24 309 69.31
< 32 313 73.92
< 40 16 74.16
< 48 161 76.53
< 72 440 83.02
> 72 1152 100
Total 6784
Analysis How do we move forward
 69% Bs/E have been assessed within 24 hrs. 1. BsE filed in the evening of last
working day of the week.
2. If maximum number of BsE are
filed in the early hours of the day,
there is a likelihood of the %age of
assessment of BsE in the first 8
hours shall substantially be high.
 ANALYSIS OF C. TIME TAKEN IN FOR PAYMENT OF DUTY
AFTER ASSESSMENT -
STAGES 6 & 7 Action Owner : IMPORTER/ CB

Time taken in Hours No. of Bs/E Cumulative %age of Total

Documents Filed
< 08 2337 34.45
< 16 1237 52.68
< 24 15 52.90
< 32 364 58.27
< 40 343 63.33
< 48 34 63.83
< 72 352 69.02
> 72 522 76.71
Total 5204
Analysis How do we move forward
 53 % Bs/E, duty payment has been made within 24 hrs. As e-payment is made mandatory and the
facility is available round the clock i.e., on
24x7 basis, the Importers/CBs are advised to
plan duty payment well in time to avoid
payment of Interest, detention and demurrage
charges.
 ANALYSIS OF D. TIME TAKEN FOR REGISTRATION AFTER
PAYMENT OF DUTY -
STAGES 7 & 8
Action Owner : Custodian/ CB , Terminal
Operator / IMPORTER

Time taken in Hours No. of Bs/E Cumulative %age of Total

Documents Filed
< 08 366 5.40
< 16 1429 26.46
< 24 208 29.53
< 32 0 60.14
< 40 2077 60.89
< 48 51 68.94
< 72 546 76.71
> 72 527
Total 5204
Analysis How do we move forward
It can be noticed that in only 30% of the cases 1. Keep all documents ready as per CCRs.
goods have been registered within 24 hrs. 2. The CB / Custodian / Terminal Operator
to synchronise their activities to reduce
the dwell time and stagnation in Terminal
/ CFS
3. Effective message exchange among all
the stakeholders.
 ANALYSIS OF
E. TIME TAKEN FOR OUT OF CHARGE FROM
STAGES 8 TO 10 REGISTRATION -
: Action Owner - CUSTOMS

Time taken in Hours No. of Bs/E Cumulative %age of Total

Documents Filed
< 08 5765 84.98
< 16 2 85.01
< 24 84 86.25
< 32 326 91.05
< 40 0 91.05
< 48 26 91.44
< 72 144 93.56
> 72 437 100
Total 6784
Analysis How do we move forward
 Out of Charge has been granted in 87%cases within 24 hrs. 1. Keep CCR documents ready.

 The average time taken from arrival of vessel to Out of 2. Importers / CBs are suggested to
charge has been reduced to 219.91 hrs vis-à-vis 279.92 hrs maintain data quality so that
when compared with the corresponding period for last year amendments can be reduced and
OOC is given within 24 hours for all
the Bills.
 ANALYSIS OF TIME TAKEN FOR OOC BY CUSTOMS /
IMPORTER

01/07/14 to 07/07/14 74.4 229.44

01/07/15 to 07/07/15 63.09 242.15

Customs
Importer

03/11/14 to 09/11/14 74.47 294

03/11/15 to 09/11/15 64.87 210.24

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

03/11/15 to 09/11/15 03/11/14 to 09/11/14 01/07/15 to 07/07/15 01/07/14 to 07/07/14

Customs 64.87 74.47 63.09 74.4

Importer 210.24 294 242.15 229.44

COMPARATIVE ANALYSIS / PERFORMANCE WITH RESPECT TO PREVIOUS YEAR.

Vessel Arrival to Filing to Assessment to duty Payment to Assessment to Registration

assessment payment registration Registration to OOC of BE
filing of BE

4.05 1.70 1.68 0.67 2.27 0.88

Vis -a -vis Vis- a -vis Vis-à-vis Vis-à-vis Vis-à-vis Vis-à-vis
4.58 1.77 2.39 1.36 3.76 1.17

Average No of Days taken 8.9 Vis-à-vis 11.28 Days taken for

the corresponding previous year.
 OUTCOMES

1.Major Contributors to performance/dwell time identified &

quantified.

2. Potential opportunities for improvement from

Customs side identified.

3. There are several factors that affect trade facilitation.

 TAKEAWAY FOR CUSTOMS

 What cannot be measured cannot be improved

 Do away with the Baggage of avoidable litigations.

 Eliminating/Reducing printouts in Customs Viz., TR6

Challans, Transshipment Permit (TP), Exchange
control copy
 Operationalization of “RFID” for seamless flow of
containers.
 To broad base ACP status holder for startup companies
also.
 SUGGESTIONS/RECOMMENDATIONS

FOR
YOUR KIND ATTENTION