THE COMMISSIONER OF CUSTOMS, PATNA Customs Policy & Procedures

Customs Clearance of Export cargo Documents required for clearance of export goods 1. Shipping Bill, to be presented electronically unless permitted otherwise. 2. G.R. I forms/SDR/SOFTEX/PP 3. Invoice and packing list. 4. Contract, letter of credit, purchase order 5. Export License/ Quota Certificate, where necessary 6. Export Inspection Agency’s certificate, where necessary. 7. ARE-1/2

Customs Clearance of Import Cargo Documents required for clearance of Import goods 1. Bill of Entry, to be presented electronically unless permitted otherwise. 2 Invoice and Packing list. 3. Insurance Memo/Policy. 4. Country of Origin certificate, where preferential rate is claimed. 5. Import License, where necessary. 6. Bill of loading or delivery order

Examination of Export Goods At the gate way port of export relaxed regime of examination No examination for factory /ware house stuffed goods before the central Excise / Customs officer unless the seals are found tampered. No examination in case of free shipping bills i.e. where there is no export incentive. Low percentage examination (Normally less than 10%) in case of incentive/ export obligation shipping bills.

ICES 1.5 (Indian Customs EDI system) EDI system is being introduced at all the major Ports / LCS etc. Under new EDI system declaration in prescribed format are to be filled, either online through ICEGATE or through the service centers of customs. After submission of data to the system, it generates a shipping Bill number, which is endorsed on the printed check list. For export items which are subject to export cess, the TR-6 challans for cess is printed and given by the services centre to the exporter /CHA immediately after submission of shipping Bill.

E-payment E-payment facility at Customs locations is available through more than one authorized bank at Customs locations having ICES facility. Besides expediting the process of payment of duty and clearance of imported goods, the facility of e-payment has resulted in reduction of transaction costs.

Procedure for e-payment of Customs duty A centralized application called Indian Customs EDI System (ICES 1.5) and E-payment facility has been extended to all ICES locations from more than one authorized bank. To avail E-payment facility a person must open an INTERNET ACCOUNT. At Custom E-Payment Gateway (CEG) at ICEGATE (www.icegate.qov.in) the users who are already registered with ICEGATE will automatically be able to avail the facility of e-Payment as REGISTERED USER without any further registration process, unregistered user with the ICEGATE can also avail e-payment facility as an UNREGISTERED USER from the ICEGATE home page.

Procedure for e-payment of Customs duty On successful payment, a cyber receipt will be generated by the bank for successful transaction The user must come back to the ICEGATE site to complete the transaction; After e-payment is made at CEG, ICEGATE will send the payment particulars to the ICES. Thereafter, the Bill of entry shall automatically move to the examination queue; The Importer/CHA need not produce any proof of payment for the clearance of goods in case of e-payment.

Shipping Bill Particulars to be given in Shipping Bill: It is the responsibility of the exporter to declare correct particulars, such as number of packages, shipping mark, weight, description and value of the goods to be attested by them (Customs). As the clearing Agent’s Staff has to sign the Shipping Bill on behalf of the exporter, he must ensure that these particulars are given in the documents supplied by Exporter viz., invoice, packing list etc., and these are duly signed by him. In case of Drawback Shipping Bill, rate and amount of drawback, serial and schedule number of item should be declared in the Shipping bill.

Processing of Shipping Bill –EDI Under EDI system, declarations in prescribed format are to be filed through the Service Centers of Customs. A checklist is generated for verification of data by the exporter/CHA. After verification, the data is submitted to the System to generate a Shipping Bill Number, which is endorsed on the printed checklist and returned to the exporter/CHA. For export items which are subject to export cess, the TR-6 challans for cess is printed and given by the Service Center to the exporter/CHA immediately after submission of shipping bill. The cess can be paid on the strength of the Challan at the designated bank. No copy of shipping bill is made available to exporter/CHA at this stage.

Types of Shipping Bills White shipping bill for export of duty free goods Green Shipping Bill for export of goods under claim for duty drawback Yellow Shipping Bill for export of dutiable goods Pink Shipping Bill for export of duty free goods ex-bond

System Appraisal of Shipping Bills. In many cases the Shipping Bill is processed by the system on the basis of declarations made by the exporters without any human intervention. In other cases where the Shipping Bill is processed on screen by the Customs Officer, he may call for the samples, if required for confirming the declared value or for checking classification under the Drawback Schedule.

Status of Shipping Bill The exporter/CHA can check up with the query counter at the Service Centre whether the Shipping Bill submitted by them in the system has been cleared or not, before the goods are brought into the Docks for examination and export. In case any query is raised; the same is required to be replied through the service centre or in case of CHAs having EDI connectivity through their respective terminals. The Customs officer may pass the Shipping Bill after all the queries have been satisfactorily replied to. The check list and the declaration along with all original documents is retained by the Appraiser concerned.

Generation of Shipping Bills After the “let export” order is given on the system by the Appraiser, the Shipping Bill is generated by the system in two copies i.e. one Customs copy, one exporter’s copy (E.P. copy is generated after submission of EGM). After obtaining the print out the appraiser obtains the signatures of the Customs Officer on the examination report and the representative of the CHA on both copies of the Shipping bill and examination report. The Appraiser thereafter signs & stamps both the copies of the shipping bill at the specified place.

Accredited clients Program (ACP) Its objective is to grant assured facilitation to importers who have demonstrated capacity and willingness to comply with the laws customs department is required to implement.

Self Assessment Self assessment has been introduced for the export and import of goods since 2011. An importer/ exporter shall self assess the duty leviable on such goods.

Customs house Agent In order to assist importers and exporters, the services of Customs House Agents, duty licensed by Commissioner of Customs, are available at international ports and airports.

Duty Draw Back Rebate of duty chargeable on any import or excisable material or taxable services used as input services in the manufacture of goods exports. All Industry rate It is fixed by the Govt. based on average consumption pattern of inputs and duties as suffered thereon as well as tax on input services. The schedule is notified every year. Brand Rate If an exporter’s goods don’t figure in all Industry rate Drawback schedule or the all industry rate is less than four fifths of the input duties / taxes paid by him, he can apply to the jurisdictional commissioner of central excise for fixation of brand rates for his goods

Central Excise Rules for exports Export without Payment of Duty under bond Export of manufactured / processed goods after procuring raw material without Payment of duty under bond. Export under claim of rebate Rebate on excisable materials used in the manufacture of goods which are exported out of India.

100% Export oriented /STP/ EHTP/ Can import or procure from the domestic sources, free of duty, all their requirements of capital goods, raw materials, consumables, spares, packing material, office equipment, DG sets. Can supply to another EOU/STP/SEZ units without payment duty and such supplies are counted towards fulfillment of NFE. EOUS are exempted from the anti-dumping duties Supplies from the domestic area to EOU allowed Deemed export benefit.

Export/ Import Policy & Procedures Exports and Imports free unless regulated Exports and imports shall be free unless regulated by the provisions of FTP or any other law for the time being in The DGFT specifies terms and conditions according to which any goods, not included in the ITC (HS), may be exported without a license / certificate / permission. Export of Passenger Baggage Bona fide personal baggage may be exported from India. However, Certificate required for Restricted items .

Export/ Import Policy & Procedures Export of Gifts Goods, including edible items, of value not exceeding Rs. 500000/- in a licensing year, may be exported as a gift Export of Spares Warranty spares, except those restricted under ITC(HS), may be exported subject to approval of RBI. Third Party Exports Third party exports shall be allowed under FTP

Export/ Import Policy & Procedures Private Bonded Warehouse for Exports It may be set up in DTA as per the terms and conditions issued by Department of Revenue. Realization of Export Proceeds If an exporter fails to realize the export proceeds within the time specified by the RBI, he shall be liable to action in accordance with the provisions of FTP. Registration-cum-membership Certificate Any person, applying for (i) a permission to import /export or (ii) any other benefit shall furnish Registration-cum-Membership Certificate (RCMC) .

Export/ Import Policy & Procedures Export Items Reserved for SSI Sector Other than SSI units may be permitted to expand or create new capacity for items reserved for SSI Sector if they undertake export obligation for furnish legal undertaking to DGFT, who shall also monitor the export obligation. Certificate of Origin It is an instrument to establish evidence on the origin of goods imported into any country. Import of Samples No license /permission required for import of bona fide technical and trade samples except seeds, bees and new drugs. However, export of samples of exportable item shall be allowed without any limit.

Export/ Import Policy & Procedures Direct negotiation of export documents (not through the authorized dealers) with the permission of RBI. For availing benefits under export promotion scheme copy of Foreign Inward Remittance certificate (FIRC) is required in place of the BRC. Shipping Bill may be converted after export from one Export Promotion Scheme to another scheme having similar or less rigorous inspection subjected to approval by the Commissioner of Customs. Import/ Export through a registered courier service is permitted. Offsetting of export Proceeds – Any Payable or equity investment made by a licensee/ authorization holder under any export promotion scheme, can be used to offset receipts of export proceeds.

Export/ Import Policy & Procedures Services rendered abroad shall not attract service tax levy as service tax extends only to services provided within India. Taxable services provided by a service provider to SEZ Developer or to a unit located in SEZ for consumption of services within such SEZ is also exempted from service Tax. Exporters of gems and jewellery are eligible to import these imports duty free by obtaining Replenishment Authorization.

Citizen Charter Citizen Charter is the declaration of our mission, values and Standards to achieve excellence for the benefit of trade, industry and other stakeholders with a view to encourage voluntary compliance Control on cross border movement Combating revenue evasion, frauds etc. In order to improve the delivery of Customs services, SEVOTTAM has been formulated to incorporated ISO standards.

Citizen Charter Standards Acknowledge all written communications immediately and in no case later than 7 working days. Convey decision on matters related to declaration or assessments within 15 working days. Dispose of a refund claim within 3 months. Remit drawback within 7 days . Clear the goods, for export, within 24 hours, for import within 48 hours where declaration relating to any consignment is complete and correct,.

Complaints and Grievances Redressal A Public Grievance Officer has been designated in each Customs House/ Commissionerate Prompt acknowledgement of complaints within 48 hours and attempt to provide final replies within 30 days, if not possible an interim reply shall be furnished. If remedy offered is not satisfactory, an appeal can be filled with the Commissioner, Chief Commissioner.

THE COMMISSIONER OF CUSTOMS, PATNA Thank You THE COMMISSIONER OF CUSTOMS, PATNA