0 AJay_Mishra Asked: June 27, 20192019-06-27T14:49:01+05:30 2019-06-27T14:49:01+05:30In: Commerce Discuss the customs clearance procedures alongwith the documentation formalities 0 Discuss the customs clearance procedures alongwith the documentation formalities Export Procedures and Documentation 1 Answer Voted Oldest Recent Best Answer admin 2019-06-27T14:57:58+05:30Added an answer on June 27, 2019 at 2:57 pm Procedure of Custom Clearance: Section 45-49 of the Customs Act,1962, lays down a specified procedure and formalities to be followed for getting customers clearance. Unloading of Imported Goods The Customs Act, 1962 provides that the incharge of the carrier having custody over imported goods is under obligation to unload the goods in a custom approved area. The goods after unloading cannot be handed over to the actual owner of the goods but are transfered into the custody of the Port Trust Authority or any other Competent agency/person as approved by the Commissioner. The goods listed in the IGM are allowed to be unloaded in the presence of officer of customs. The custodian of the imported goods is under obligation to. i. Keep a record of imported goods and also send a copy of the list of goods to the Proper officer of Customs. ii. Handover the goods to the actual claimant of presentation of documents granting permission by the customs. Presentation and Noting of Bill of Entry B/E The Bill of Entry can be presented by the importer in prescribed form to the competent and proper officer in the import department either for its clearance for home consumption i.e. to take the goods where they are needed or can transfer them to an approved public warehouse. Capital Goods intended for use in any hundred per cent EOU export oriented unit can be deposited in a warehouse for a period of 5 years. The period for purpose of warehousing for other categories of goods is one year. The Bill of Entry B/E must contain all goods mentioned in the Bill of Lading B/L or any other document as issued by the carrier to the consignr of goods on board the carrier. The Bill of Entry can be presented after the delivery of the IGM / IR by the incharge of the carrier. However it can be submitted before the submission of IGM provided the carrier by which the imported goods have been shipped for importation into India is expected to arrive within 30 days from the date of presentation of IGM/IR. Processing of Bill of Entry As soon as Bill of Entry is presented along with other documents and the same is notified by the customs with reference to the IGM, the custom is under obligation to process it, make scrutiny of the documents information and declaration given by the importer and appraise the goods to duty. For this purpose, There are different group appraisers supported by their staff. The documents pass through different group hands for necessary action / endorsements / record. The concerned appraiser has to ensure that goods are not prohibited goods, the classification and valuation is correct. The transaction is in accordance with their equirements of the provisions of different Acts, the party is not on the caution list and the documentary and other requirements have been complied with. He makes an assessment appraisement of goods for the purpose of levy of duty. The duty amount is pin pointed in the bill of entry with the help of a typewriter after proper scrutiny/check made by the internal audit department. Import licence, debit formalities if necessary have to be completed by the concerned customs official. The Examination order is also recorded in the Bill of Entry to be followed by the Examiner/Inspector who physically checks the goods in the dock. The customs assessed Bill of Entry indicating the amount of duty to be deposited in the dock. The Custom assessed Bill of Entry indicating the amount of duty to be deposited by the importer is returned to the importer without any delay the maximum limit is 3-4 days. The importer after the receipt of customs assessed Bill of Entry is under obligation to deposit the amount of duty in the treasury/bank within a stipulated period of 7 days. In case duty is deposited after the expiry of the stipulated period the importer is liable to pay additional amount of interest on amount of duty till the date of its deposit as decided by competent authority. This information is indicated on the Bill of Entry itself when sent to the importer. On payment of duty, the original copy of the Bill of Entry is detached and sent for the purpose of record to the manifest department by the cash branch. The documents are given back to the importer for handling them over to the Dock Superintendent to examine appraise or inspect the goods physically as per Examination order given by the appraising officer. Physical Examination of Goods a) The Dock Superintendent marks the paper to one of the Inspector for physical examination of goods on a random basis, as per Examination order is given by the Appraising Officer A/O. b) The contents of the package are checked as per description and information given in the Bill of Entry. The classification, value, composition and functional aspect of the item is also checked. If need be the samples are also drawn and sent to the laboratory for the check and report. c) The quantity as per packing list is also checked and the excess or deficiency if any is recorded. d) The examiner writes his report on the Bill of Entry and it is also countersigned by the Dock Superintendent who makes “Out of Charge order” endorsement. e) The documents are handed over to the Manager/Security officer inchargs of the Port authority in whose custody the goods were kept after their unloading. He ensures on scrutiny of documents about any changes/ demurrages, if any to be paid by the importer. f) The Importer/CHA deposits the same with cash department and same is recorded on the bill of entry as a proof of payment. g) The Manager/security officer after seeing the fact of payment makes an endorement ‘goods released’. This is also known as Release order. h) Against the “Out of Charge” order given by the customs and “Release order” given by the Port authority goods are cleared out of the customs area. Check Second The above procedure is known as check second i.e. documents are first examined, goods are appraised to duty and physical examination is done, thereafter over 95% of the consignments are subject to check second system. Check First Where Appraising officer is not able to identify the goods properly or there is not sufficient information about the composition/functions/classification of the goods in question the A/O marks the papers to Dock Superintendent for their physical examination. This is known as check first system. Confiscation of Goods At any of the stage mentioned above, it is notified that the goods are prohibited goods or the importer has intended to import in violation and contravention of the provisions of the relevant Acts in operation, penal procedings may have to be initiated and the goods are liable to confiscation in terms of section 111(d). The discretion lies with the adjudication authority to allow their release to the importer on payment of a fine or to confiscate them. 0 Reply Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Leave an answerLeave an answerCancel reply Featured image Select file Browse Answer Anonymously Save my name, email, and website in this browser for the next time I comment.