CUSTOMS
CUSTOMS
Customs is an authority or agency in a country responsible for
collecting tariffs and for controlling the flow of goods,
including animals, transports, personal, and hazardous items,
into and out of a country.
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.
Introduction
Bill of Entry
Amendment of Bill of Entry
Required documents
Payment of Duty
Prior Entry for Shipping Bill or Bill of Entry
Bill of Entry for Bond/Warehousing
Introduction
All goods imported into India have to pass through the
procedure of customs for proper examination, assessment and
evaluation.
This helps the custom authorities to charge the proper tax and
also check the goods against the illegal import. Also it is
important to note that no import is allowed in India if the
importer doesn’t have the IEC number issued by the DFGT.
Bill of Entry
A Bill of Entry also known as Shipment Bill, is a statement of
the nature and value of goods to be imported or exported,
prepared by the shipper and presented to a customhouse.
Amendment of Bill of Entry
Whenever mistakes are noticed after submission of documents,
amendments to the bill of entry is carried out with the approval
of Deputy/Assistant Commissioner.
Required Documents
Signed invoice
Packing list
Bill of Lading or Delivery Order/Airway Bill
GATT declaration form duly filled in
Importers/ CHA’s declaration
License wherever necessary
Letter of Credit/Bank Draft/wherever necessary
Insurance document
Import license
DEEC Book/DEPB in original
Payment of Customs Duty
The duty can be debited to such current account, or it can be
paid in cash/DD through TR-6 challan in designated banks.
Prior Entry for Shipping Bill or Bill of Entry
For faster clearance of the goods, provision has been made in
section 46 of the Act, to allow filing of bill of entry prior to
arrival of goods. This bill of entry is valid if vessel/aircraft
carrying the goods arrive within 30 days from the date of
presentation of bill of entry.
Bill of Entry for Bond/Warehousing
A separate form of bill of entry is used for clearance of goods
for warehousing. Assessment of this bill of entry is done in the
same manner as the normal bill of entry and then the duty
payable is determined.
Noting of Bill of Entry
Bill of Entry submitted by importer or Customs House Agent
is cross-checked with ‘Import Manifest’ submitted by person in
charge of vessel / carrier.
Prior Entry of Bill of Entry
Importer have cleared the goods usually 3 working days.
If not cleared then demurrage is charged by port trust/airport
authorities, which is very high.
Assessment of Customs duty
Section 17 provides that assessment of goods will be made after Bill
of Entry is filed.
Appraising The Goods- Appraiser has to
correctly classify the goods
decide the Value for purpose of Customs duty
find out rate of duty applicable as per any exemption notification
and,
verify that goods are not imported in violation of any law.
Valuation of Goods
As per rule 10 of Customs Valuation Rules, the importer has to
file declaration about full 'value' of goods.
Approval of Assessment
The assessment has to be approved by Assistant Commissioner,
if the value is more than Rs one lakh.
Examination Of Goods
Examiners carry out physical examination and quantitative checking
like weighing, measuring etc. Selected packages are opened and
examined on sample basis in ‘Customs Examination Yard’.
Examination report is prepared by the examiner.
Out of Customs Charge Order:-
After goods are examined, it is verified that import is not
prohibited and after customs duty is paid, Customs Officer
will issue ‘Out of Customs Charge’
order under section 47.
Demurrage if goods not cleared:-
Heavy demurrage is payable if goods are not cleared from port
within three days.
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