1. 1 CUSTOMS CLEARANCE FACILITATION COMMITTEE MEETING on 25 th February, 2016 at Chennai port trust

2.  It is a unique tool for measuring the actual performance of Customs activities as they are directly related to trade facilitation at the Border.  TRS seeks to accurately measure the aspects of the effectiveness of operational procedures that are carried out by the Customs Department.  It provides an overall macro analysis as well as a step-by-step micro analysis on Customs functioning.

3.  Pin-pointing the bottlenecks that affect timely customs release.  Providing in-depth analysis of newly introduced as well as modified techniques, procedures & technologies.  Recognizing opportunities for improvement of trade facilitation and facilitating ‘ease of doing business’  Enhancing transparency and accountability  Improving the overall efficiency of the Department.

4.  TRS here directly correlates to “The Performance Measurement of Customs” and the ultimate aim of any Performance Measurement System is to improve the performance of the function being measured.  The time required to release the cargo is increasingly becoming a measure by which the International Trading Communities assesses the ease of doing business in any country.

5.  It provides the Department a means to identify the concerns of trade circles and, therefore, address them.  An efficient & transparent Customs Clearance Procedure is indispensable for promoting innovative initiatives like “Start-up India Start-up India”.

6.  To take structural reform measures within the Organization.  To conduct training programs wherever necessary.  To take necessary measures for improving compliance and enforcement.  To reallocate the staff and resources for optimal utilization.  For use in Public Relations and for improving Customs transparency, and to thereby build public confidence.  For use as a Quality Assurance mechanism.

7.  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 from 02./02/2016 between 08/02/2016 (Tuesday to 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.

8.  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 99.65% of import declarations are filed electronically in custom house.

9. Customs clearance can be broadly classified into following stages: S No. STAGES:ACTION OWNER: 1Filling of IGMShipping Liner 2Filling of BEImporter/CB 3Risk Management System (RMS): Processing of Declaration automatically. System decides to facilitate the B/E or to send the B/E for scrutiny by Assessment Group. ICES 1.5 41 st Check AssessmentCustoms 52 nd Check AssessmentCustoms

10. S No. STAGES:ACTION OWNER: 6Payment of DutyImporter/Bank 7Goods registrationImporter/CB 8Examination of GoodsCustoms 9 OOC (Out of Charge) in ICES 1.5 Customs Stage 3 to 6 and 9 & 10 Aggregate of Stages 1 to 10 Processing attributable to customs. Total time taken for the goods to be released to the importer.

11. TOTAL NUMBER OF BILLS OF ENTRY FILED7417 NUMBER OF BILLS OF ENTRY FACILITATED3934(53.04%) NUMBER OF BILLS OF ENTRY NON FACILITATED3438(46.96%) FIRST CHECK BILLS OF ENTRY333(4.49%) SECOND CHECK BILLS OF ENTRY3105(95.51%)

12. 3934 3438

13. Time taken in Hours: No. of Bs/E: Cumulative Percentage of Total Documents Filed: < 08101814.57 < 1637219.89 < 2418822.58 < 3240528.38 < 4040834.22 < 4830438.57 < 72105153.61 > 723241100 Total7126 A.VESSEL ARRIVAL TO FILING OF BE: Action Owner : Importer / CB Analysis  23% of Bs/E were filed within 24 hrs from grant of entry inwards. How do we move forward 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.

14. A.TIME TAKEN TO FILING TO ASSESSMENT: Action Owner : Customs Time taken in Hours No. of Bs/E Cumulative Percentage of Total Documents Filed < 08531476.06 < 166276.94 < 2432281.55 < 3226085.27 < 401285.44 < 4811487.08 < 7227791.04 > 72626100 Total6987 Analysis  82% Bs/E have been assessed within 24 hrs. How do we move forward 1.Bs/E 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 percentage of assessment of Bs/E in the first 8 hours shall substantially be high.

15. A.TIME TAKEN IN PAYMENT OF DUTY AFTER ASSESSMENT: Action Owner : Importer / CB Time taken in Hours No. of Bs/E Cumulative %age of Total Documents Filed < 082239 32.05 < 161088 47.62 < 2414 47.82 < 32370 53.11 < 40371 58.42 < 487 58.52 < 72532 66.14 > 72702 76.18 Total5323 Analysis  48% Bs/E, duty payment has been made within 24 hrs. How do we move forward 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.

16. A.TIME TAKEN FOR REGISTRATION AFTER PAYMENT OF DUTY: Action Owner : Custodian / CB,Terminal Operator/ Importer Time taken in Hours No. of Bs/E Cumulative %age of Total Documents Filed < 08222 3.18 < 161213 20.54 < 24287 24.65 < 322 24.67 < 402093 54.63 < 48161 56.93 < 72545 64.73 > 72800 76.18 Total5323 Analysis It can be noticed that in only 25% of the cases goods have been registered within 24 hrs. How do we move forward 1.Keep all documents ready as per CCRs. 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.

17. A.TIME TAKEN FOR OUT OF CHARGE FROM REGISTRATION: Action Owner : Customs Time taken in HoursNo. of Bs/E Cumulative %age of Total Documents Filed < 08612587.66 < 16687.75 < 244788.42 < 3221091.43 < 40191.44 < 482591.80 < 7219494.58 > 72379100 Total6987

18. Customs 49.04 Importer 268.19

19. Customs 14.28 ADC 25.8 Importer 135.6

20.  At ADC End:  1. Date of application and registration by importer are different.  2. Providing clarification from Importer side.  3. Delay in providing the sample by the Importer.  4. Product specific testing like microbiological analysis by laboratories is a time consuming procedure.

21. 1. Major Contributors to performance/dwell time identified and quantified. 2. Potential opportunities for improvement from Customs side identified. 3. There are several factors that affect trade facilitation.

22.  What cannot be measured cannot be improved.  Doing away with the baggage of avoidable litigations.  Eliminating/Reducing paperwork in Customs Viz., TR6 Challans, Transshipment Permit (TP), Exchange control copy.  Operationalization of “RFID” for seamless flow of containers  To extend ACP status holder even for startup companies for facilitating ease of doing business.

23. THANK YOU FOR YOUR KIND ATTENTION