Introduction of Group-VII

An Overview of Delhi Airport Customs and import/Export

Vivek Bhambri (46-A)1

1

Delhi Airport OverViewIndira Gandhi International Airport is the primary international airport of the National Capital Region of Delhi, India, situated in South West Delhi, 16 kilometres (9.9 mi) south west of New Delhi city centre. Named after Indira Gandhi, the former Prime Minister of India, it is the busiest airport in India.Largest Airport in South Asia : With the commencement of operations at the new Terminal 3, Delhi's Indira Gandhi International Airport has become India's and South Asia's largest and one of the most important aviation hub, with a current capacity of handling more than 46 million passengers and aimed at handling more than 100 million passengers by 2030.Passenger Terminal : In 2011-12, the airport handled 35.88 million passengers and the planned expansion program will increase its capacity to handle 100 million passengers by 2030. The new Terminal 3 building has had the capacity to handle an additional 34 million passengers annually since the start of the 2010 Commonwealth Games.Terminal 3 is the world's 8th largest passenger terminal.19th January 20132

Cargo Terminal OverviewThe Cargo Terminal is managed by Celebi Delhi Cargo Terminal ManagementIndia Pvt. Ltd. and handles all cargo operations. The airport received an award in 2007 for its excellent and organized cargo handling system. It is located at a distance of about 1 km from the main terminal T3.Import CargoImport Cargo is received by CTO from Airlines on said-to-contain and said-toweigh basis as per Import General Manifestation (IGM). "Delivery of the consignment is effected against the Delivery Order from the airline and after Customs 'out of charge' on payment of applicable CTO charges". Import cargo which remains unclaimed beyond 30 days of landing is liable to be disposed off in terms of Section 48 of the Customs Act, 1962. CTO is not associated in examination of contents of packages at any stage. Examination is carried out by Customs in the presence of consignee or their authorized representative(s). The free storage period is 72 Hrs, the date of flight arrival counting as the first day. Shipments that are not cleared within 72 Hrs are subject to demurrage charges as per applicable charges.19th January 20133

Delhi Airport OverViewTerminalsIGI Airport is the home of several Indian airlines including Air India, Air India Regional, IndiGo, JetLite, SpiceJet, Jet Airways, Kingfisher Airlines, GoAir use IGI Airport as their secondary hub. Approximately 80 airlines serve this airport. Atpresent there are two active scheduled passenger terminals, a dedicated Hajj terminal and a Cargo Terminal.Terminals at Delhi Airport : 1) Terminal 1 Domestic2) Terminal 3 Domestic and International3) Hajj Terminal4) Unused Terminal Facilities5) Planned Terminals6) Cargo Terminal (Discussed in detail)19th January 20134

air cargo IMPORTS:PROCEDURES & REGULATORY FRAMEWORK5

5

Import Procedure

Since, at the Airport visit carried out by IIFT was only in the imports section ofIGI, so we would be discussing the import procedure in detail. The exportprocedure is very similar but outside the scope of this report.Import procedure at consists of two steps :1. Arrival of goods and procedures prior to lodgement of goods.2. Procedure for clearance of Imported Goods19th January 20136

Arrival of goods and procedures prior to lodgment of goods

a) Conveyances to call only at Notified Customs Ports / Airportsb) Power to board conveyance, to question and to demand documentsc) Delivery of Import Manifestd) General Conditionse) Amendmentsf) Penal Liabilityg) Entry Inwardsh) Enclosures to Import General Manifesti) Procedure for filing IGM at Custom Houses operating EDI service centresj) Filing of Stores Listk) Unloading and Loading of Goodsl) Other liabilities of carriers19th January 20137

Procedure for clearance of Imported Goods

a) Bill of Entry - Declarationb) Assessmentc) EDI Assessmentd) Examination of Goodse) Green Channel facilityf) Payment of Dutyg) Amendment of Bill of Entryh) Prior Entry for Bill of Entryi) Mother Vessel/Feeder vesselj) Specialised Schemesk) Bill of Entry for Bond/Warehousing19th January 20138

Import Procedurea) Conveyances to call only at Notified Customs Ports / Airports:Customs Act, 1962, envisages that only places notified by the Government shall be Customs ports or Customs airports for the unloading of imported goods and loading of export goods. At each such customs ports, the Commissioner of Customs is empowered to approve proper places for the unloading and loading of goods and he also specifies the limits of any Customs area. The law further provides that the person in charge of the vessel or an aircraft shall not call or land at any place other than the Customs port/airport, except in cases of emergencies.b) Power to board conveyance, to question and to demand documents :Section 37 empowers the proper officer to board any conveyance carrying imported goods or export goods. He may remain on board as long as he decides to remain. The proper officer may question the person in charge of the vessel or aircraft. He may demand production of documents and also ask questions, to be answered by such person. The person in charge of the conveyance is bound to comply with these requirements [Section 38].19th January 20139

Import Procedurec) Delivery of Import Manifest:The Master / Agent of the vessel or an aircraft has to deliver an import manifest (an import report in case of a vehicle), within 24 hours after arrival in the case of a vessel and 12 hours after arrival in the case of an aircraft or a vehicle in the prescribed form. The time limit for filing the manifest is extendable on showing sufficient cause. In the case of a vessel or an aircraft, a manifest may also be filed even before arrival of the vessel or aircraft (known as Prior Entry Manifest). In the case of vessels, for administrative convenience, such advance manifests are accepted on any day within 14 days before the expected arrival of the vessel. If the vessel does not arrive within the stipulated time of 14 days or such extended time as may be granted by the Assistant Commissioner (Imports), the manifest accepted provisionally is cancelled and the fact circulated through public notices. All the Bills of Entry filed against the cancelled manifest, become void. The importers have to return those Bills of Entry to the Import Department and to claim refund of duty, if paid on any such Bills of Entry. If the same vessel enters the port after the cancellation of the original manifests, it will be treated as a fresh entry and a fresh manifest is insisted upon.19th January 201310

Import Procedured) General conditions: :A person filing declarations under this section has to declare the truthfulness of contents. This declaration has legal consequences, which bind the carrier. [Section 30(2)].e) Amendments:If for any reason, the carrier desires to amend or supplement the IGM, it will be permitted by the proper officer on payment of prescribed fees, if he is satisfied that there is no fraudulent intention behind the move. [Section 30(3)].f) Penal Liability:Any mis-declaration in this document will attract the penal provisions of Section 111(f) and Section 112.(a) Excision from IGMs of items originally manifested:(a)Excision from I.G.Ms of items originally manifested are permitted only:(i)On application in writing from the ships Agents;(ii)On production of the documentary evidence of short shipment of goods;(iii)On payment of a prescribed fee .19th January 201311

Import Procedureg) Entry Inwards: :The Master of the vessel is not to permit the unloading of any imported goods until an order has been given by the proper officer granting Entry Inwards of such vessel. Normally, Entry Inwards is granted only after the import manifest has been delivered. This entry inward date is crucial for determining the rate of duty, as provided in section 15 of the Customs Act, 1962. Unloading of certain items like accompanied baggage, mail bags, animals, perishables and hazardous goods are exempted from this stipulation. h) Enclosures to Import General Manifest:The following declarations have to be filed along-with IGM:(a)Deck Cargo Declaration / Certificate.(b)Last port clearance copy.(c)Amendment application (when relevant).(d)Income Tax Certificate in case of Export Cargo.(e)Nil export cargo certificate.(f)Port Trust "No Demand" certificate.(g)Immigration certificate.(h)Application for sign on/sign off of crew (when relevant).(i)Application for crew baggage chceking when they sign on (When relevant).19th January 201312

Import Procedurei) Procedure for filing IGM at Custom Houses operating EDI service centres:(i) IGM by Shipping lines:The shipping line/steamer agent needs to submit the manifest in prescribed form at the Service Centre. The shipping lines are required to submit the electronic version of the Import General manifest in floppies, containing all the details and particulars. It is to be ensured by the Shipping Lines that all the particulars and details of the Import general manifest submitted either manually or through floppies are correct. The shipping agents who do not have arrangement for data in floppy, may approach the Service Center of Customs and get the data of IGM submitted in system. They are also to ensure that details of House Bill of Lading are also incorporated in the IGM in case of consol cargo.

On arrival of the vessel, the shipping line needs to approach the Preventive officer for granting entry inwards. Before making the application, the shipping line has to make payment of the Light House dues. In case the shipping line is filing an IGM after arrival of the vessel, the procedure as mentioned above for prior IGM, is to be followed except that the date of arrival of vessel is also indicated. After submission, the shipping line has to approach the proper officer for grant of entry inwards in the system.19th January 201313

Import ProcedureProcedure for filing IGM at Custom Houses operating EDI service centres:(ii) IGM by Air:The airlines are required to file IGM in prescribed format. In case of Air Cargo Complexes having EDI, the IGMs may be filed through electronic mode. The IGMs to be submitted need to contain all details and particulars. In other words, the airlines would not only be furnishing the details of the Master Airway Bills but also the House Airway bills in the case of console cargo. The airlines are also to furnish the additional information, namely, the ULD Nos. for use by the custodians.

j) Filing of Stores List: :When entering any port, all ships are required to furnish to the Commissioner of Customs, a list (or nil return) of ships stores intended for landing (excluding any consumable stores issued from any dutified shops in. Retention on board of imported stores is governed by Import Store (Retention on board) Regulations, 1963. The consumable stores can remain on board without payment of import duties during the period the vessel/Aircraft remains foreign going. Otherwise, such consumable stores are to be kept under Customs seal. Even in respect of foreign going vessels, only the stores required for immediate use of the personnel may be left unsealed. Excessive stocks of stores such as liquor, tobacco, cigarettes, etc are kept under Customs seal.19th January 201314

Import Procedurek) Unloading and Loading of Goods: :Imported goods are not to be unloaded from the vessel until Entry Inwards is granted. No imported goods are to be unloaded unless they are specified in the import manifest/report for being unloaded at that Customs station. No imported goods shall be unloaded at any place other than the places provided for such unloading. Further, imported goods shall not be unloaded from any conveyance except under the supervision of the proper officer. Similarly, for unloading imported goods on any Sunday or on any holiday, prior notice shall be given and fees prescribed in this regard shall be paid.19th January 201315

Import Procedurel) Other liabilities of carriers: :Under Section 115 and 116, the persons in charge of vessel or aircraft have other liabilities, which are important and noteworthy. Section 115 provides for confiscation of vessel or other conveyance under the following circumstances:

(a)A conveyance within Indian waters or port or customs area which is adopted, fitted, modified or altered for concealing goods.

(b)A conveyance from which goods are thrown overboard, staved or destroyed so as to prevent seizure by customs officers.

(c)A conveyance which disobeys any order under Section 106 to stop or land, without sufficient cause.

(d)A conveyance from which goods under drawback claim are unloaded without proper officers permission.

(e)A conveyance which has entered with goods, from which substantial portion of goods are missing and failure of the master to account therefore.

Any vessel when used as means of transport for smuggling of any goods or in the carriage of any smuggled goods, is liable to confiscation, unless the owner establishes that it was used without the knowledge or connivance of the owner, his agent and the person in-charge of the vessel. When any such conveyance is confiscated, an option to pay redemption fine has to be given to the owner of the conveyance. The upper limit for imposing the redemption fine is the market value of impugned goods19th January 201316

Import ProcedurePROCEDURE FOR CLEARANCE OF IMPORTED GOODS :a) Bill of Entry - Cargo Declaration:Goods imported in a vessel/aircraft attract customs duty and unless these are not meant for customs clearance at the port/airport of arrival by particular vessel/aircraft and are intended for transit by the same vessel/aircraft or transhipment to another customs station or to any place outside India, detailed customs clearance formalities of the landed goods have to be followed by the importers. In regard to the transit goods, so long as these are mentioned in import report/IGM for transit to any place outside, Customs allows transit without payment of duty. Similarly for goods brought in by particular vessel/aircraft for transhipment to another customs station detailed customs clearance formalities at the port/airport of landing are not prescribed and simple transhipment procedure has to be followed by the carrier and the concerned agencies. The customs clearance formalities have to be complied with by the importer after arrival of the goods at the other customs station.19th January 201317

Import ProcedurePROCEDURE FOR CLEARANCE OF IMPORTED GOODS :b) Assessment:Assessment of duty essentially involves proper classification of the goods imported in the customs tariff having due regard to the rules of interpretations, chapter and sections notes etc., and determining the duty liability. It also involves correct determination of value where the goods are assessable on ad valorem basis. The assessing officer has to take note of the invoice and other declarations submitted along with the bill of entry to support the valuation claim, and adjudge whether the transaction value method and the invoice value claimed for the basis of assessment isacceptable, or value needs to be predetermined having due regard to the provisions of Section 14 and the valuation rules issued there under, the case law and various instructions on the subject. Where the appraising officer is not very clear about the description of the goods from the document or as some doubts about the proper classification which may be possible only to determine after detailed examination of the nature of the goods or testing of its samples, he may give an examination order in advance of finalisation of assessment including order for drawing ofrepresentative sample. This is done generally on the reverse of the original copy of the bill of entry which is presented by the authorized agent of the importer to the appraising staff posted in the Docks/Air Cargo Complexes where the goods are got examined in the presence of the importers representative. On receipt of the examination report the appraising officers in the group assesses the bill of entry. He indicates the final classification and valuation in the bill of entry indicating separately the various duties such as basic, countervailing, anti-dumping, safeguard duties etc.,that may be leviable. Thereafter the bill of entry goes to Assistant Commissioner/Deputy Commissioner for confirmation depending upon certain value limits and sent to comptist who calculates the duty amount taking into account the rate of exchange at the relevant date as provided under Section 14 of the Customs Act.19th January 201318

Import ProcedurePROCEDURE FOR CLEARANCE OF IMPORTED GOODS :c) EDI Assessment:In the EDI system of handling of the documents/declarations for taking import clearances as mentioned earlier the cargo declaration is transferred to the assessing officer in the groups electronically. The assessing officer processes the cargo declaration on screen with regard to all the parameters as given above for manual process. However in EDI system, all the calculations are done by the system itself. In addition, the system also supplies useful information for calculation of duty, for example, when a particular exemption notification is accepted, the system itself gives the extent of exemption under that notification and calculates the duty accordingly. Similarly, it automatically applies relevant rate of exchange in force while calculating. If assessing officer needs any clarification from the importer, he may raise a query. The query is printed at the service entre and the party replies to the query through the service centre. After assessment, a copy of the assessed bill of entry is printed in the service centre. Under EDI, documents are normally examined at the time of examination of the goods. Final bill of entry is printed after out of charge is given by the Custom Officer.19th January 201319

Import ProcedureExamination of goods is conducted by the Customs officers posted at Import shed as per examination order given by the assessing officers.Goods are generally examined after assessment of duty on the basis of declarations made by the importer. However, in some cases, examination is conducted prior to assessment.If goods are in order, duty is paid and regulatory requirements are complied with, goods are released.

Import ProcedurePROCEDURE FOR CLEARANCE OF IMPORTED GOODS :e) Green Channel facility:Some major importers have been given the green channel clearance facility. It means clearance of goods is done without routine examination of the goods. They have to make a declaration in the declaration form at the time of filing of bill of entry. The appraisement is done as per normal procedure except that there would be no physical examination of the goods. Only marks and number are to be checked in such cases. However, in rare cases, if there are specific doubts regarding description or quantity of the goods, physical examination may be ordered by the senior officers/investigation wing like SIIB.

f) Execution of Bonds:Wherever necessary, for availing duty free assessment or concessional assessment under different schemes and notifications, execution of end use bonds with Bank Guarantee or other surety is required to be furnished. These have to be executed in prescribed forms before the assessing Appraiser.19th January 201321

Import ProcedurePROCEDURE FOR CLEARANCE OF IMPORTED GOODS :g) Payment of Duty:The duty can be paid in the designated banks or through TR-6 challans. Different Custom Houses have authorised different banks for payment of duty. It is necessary to check the name of the bank and the branch before depositing the duty. Bank endorses the payment particulars in challan which is submitted to the Customs.h) Amendment of Bill of Entry:Whenever mistakes are noticed after submission of documents, amendments to the of entry is carried out with the approval of Deputy/Assistant Commissioner. The request for amendment may be submitted with the supporting documents. For example, if the amendment of container number is required, a letter from shipping agent is required. Amendment in document may be permitted after the goods have been given out of charge i.e. goods have been cleared on sufficient proof being shown to the Deputy/Assistant Commissioner19th January 201322

Import ProcedurePROCEDURE FOR CLEARANCE OF IMPORTED GOODS :i)Prior Entry for Bill of EntryFor 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. The importer is to file 5 copies of the bill of entry and the fifth copy is called Advance Noting copy. The importer has to declare that the vessel/aircraft is due within 30 days and they have to present the bill of entry for final noting as soon as the IGM is filed. Advance noting is available to all imports except for into bond bill of entry and also during the special period.j) Mother Vessel/Feeder vessel:Often in case of goods coming by container ships they are transferred at an intermediate ports (like Ceylon ) from mother vessel to smaller vessels called feeder vessels. At the time of filing of advance noting B/E, the importer does not know as to which vessel will finally bring the goods to Indian port. In such cases, the name of mother vessel may be filled in on the basis of the bill of lading. On arrival of the feeder vessel, the bill of entry may be amended to mention names of both mother vessel and feeder vessel.19th January 201323

Import ProcedurePROCEDURE FOR CLEARANCE OF IMPORTED GOODS :k) Bill of Entry for Bond/Warehousing:A separate form of bill of entry is used for clearance of goods for warehousing. All documents as required to be attached with a Bill of Entry for home consumption are also required to be filed with bill of entry for warehousing. The bill of entry is assessed in the same manner and duty payable is determined. However, since duty is not required to be paid at the time of warehousing of the goods, the purpose of assessing the goods at this stage is to secure the duty in case the goods do not reach the warehouse. The duty is paid at the time of ex-bond clearance of goods for which an exbond bill of entry is filed. The rate of duty applicable to imported goods cleared from a warehouse is the rate in-force on the date on which the goods are actually removed from the warehouse.19th January 201324

Various types of dutiesBasic Customs Duty Additional duty of Customs (CVD)Education CessSecondary & Higher Education Cess (SHE)Special Additional Duty of Customs(SCVD)Anti dumping dutySafeguard duty19th January 201325

Rates of dutiesThe rate of duty mentioned in the First Schedule of the Customs Tariff is the standard rate of duty. However, the Government issues notifications indicating the effective rate of duty. This is with or without conditions.19th January 201326

ValuationFor some items Tariff Value is fixed.For some items Specific Rate of duty (per piece, per kg. etc.) is prescribedIf tariff prescribes ad-valorem duties (i.e., duties with reference to value), such duties shall be charged on the transaction value defined under Section 14(1).

Policy & Regulatory CompliancesImport of goods is governed by Foreign Trade Policy and ITC(HS) formulated by DGFT, Ministry of CommerceITC(HS) Imports Schedule 1describes the rules and guidelines related to import policies. It is divided into 21 sectionsand each section is further divided into chapters. The total number of chapters in the schedule I is 98. The chapters are further divided into sub-heading under which different HS codes are mentioned. Customs Tariff (First Schedule to the Customs Tariff Act) is aligned to ITC(HS).

Policy & Regulatory CompliancesApart from FTP & ITC(HS), import of goods is also governed by various domestic laws, rules, regulations etc. Customs ensures that imported goods comply with the requirements of various allied acts, such as Live Stock Importation Act, 1898. Drugs and Cosmetics Act, 1940 and Drug and Cosmetics Rules, 1945. Arms Act, 1959. Insecticide Act, 1968. Wild Life Protection Act, 1972. Environment (Protection) Act, 1986 and Rules, 1986. The Bureau of Indian Standards Act, 1986 and Rules, 1987. Motor Vehicles Act, 1988. Plants, Fruits and Seeds (Regulation of Import into India) Order, 1989. Trade Marks Act, 1999. Plant Quarantine (Regulation of Import Into India) Order, 2003. Food Safety and Standards Act, 2006. Legal Metrology Act, 2009

Trade facilitation initiativesElectronic Data Interchange (EDI)(Online filing, status, duty payment)

Risk Management System (RMS)(No assessment & No examination for most of the cargo)

Accredited Client Program (ACP)(Assured facilitation to the highly compliant clients)

air cargo EXPORTS:PROCEDURES & REGULATORY FRAMEWORK31

31

Regulatory RequirementsExporter or his agent has to obtain an IEC number from DGFT which is received online Also require to register authorised foreign exchange dealer code(through which export proceeds are expected to be realised) and open a current account in the designated bank (for credit of any drawback incentive.

32

Stakeholders for exports...CustodiansCustoms Brokers ForwardersAir linesInsurance companiesQuality assurance companiesTransportersADC:- Assistant Drug Controller ensure that medicines meeting the prescribed standard are allowed export.Plant Quarantine & Animal Quarantine: No infected plant or animal material is allowed export.Wildlife Authorities: Enforce provisions of CITES so that no export allow in respect of prohibited category.

Fumigation agenciesExport promotion agencies/councilsAssistant Drug ControllerPlant Quarantine & Animal QuarantineWildlife Authorities33

X-Ray of CargoX-Ray machines have been installed by CELEBI. DIAL (Delhi International Airport Ltd.) under GMR is manning the X-Ray operation and DIAL X-Ray the goods before loading in the aircraft. Some other airlines like Aeroflot, Air India, Jet Airways and FedEx also X-Ray the goods before loading in the aircraft.

34

MOVEMENT OF SHIPPING BILLShipping Bill filed by the CHA/Exporter from their own system or through CMC. ICEGATE will generate the Shipping Bill number.Processed by the Deputy Commissioner (Exports) in the case of fob value > 10 lakhs, drawback > Rs.1 lakh and Rs. 25 thousand in case of NFEI Shipping Bills.Appraiser processes the Shipping Bill if it pertains to Advance Licence / EPCG and if FOB value is more than Rs.10 lakh, the Shipping Bills is processed by Deputy Commissioner (Exports) also. Other Shipping Bills automatically processed by the EDI system.The vehicle carrying the goods will arrive in the Customs area after the payment of Terminal Charges to the custodian.The goods will be offloaded from the vehicle for weighment at the warehouse and the truck docket (TD) is issued.Contd35

The Shipping Bills will pass on to the Inspectors screen for registration of goods for export.The Inspector will scrutinize the paper and put up the paper for Deputy Commissioner (Export)s orders.goods are examined /inspected As per instruction issued and then the Shipping bill will be forwarded to Superintendents screen for Let Export Order (LEO).After LEO the Shipping Bill will be printed. The consignment of the said Shipping Bill will be lifted by the Airlines.Airlines will file EGM.The Shipping Bill will go in the Drawback queue.

36

MOVEMENT OF SHIPPING BILL

AC / DCEXPORT FOR ASSESSMENT

FILING OF SHIPPING BILL THROUGH ICEGATE SYSTEM OR THROUGH CMC SERVICE CENTERICEGATE GENERATES SHIPPING BILL NO. NFEISHIPPING BILLDRAWBACKSHIPPING BILLSHIPPING BILL UNDERADVANCE LICENCE / EPCGFOB VALUE ABOVE Rs.25000/-FOB VALUE LESS THAN Rs.25000/-DRAWBACKMORE THAN Rs.1 LAKHDRAWBACKLESS THAN Rs. 1 LAKHFOB VALUE ABOVE Rs.10 LAKHFOB VALUE LESS THAN 10 LAKHSuperintendent for AssessmentFOB VALUE LESS THAN Rs.10 LAKHFOB VALUE MORE THAN Rs.10 LAKHASSESSED IN SYSTEM

AC / DCEXPORT FOR ASSESSMENTASSESSED IN SYSTEMAC / DCEXPORT FOR ASSESSMENTASSESSED IN SYSTEM

EXPORT SHED

EXPORT SHEDAC / DC EXPORT FOR ASSESSMENT

EXPORT SHEDEXPORT SHEDEXPORT SHED

DUTY FREE SHIPPING BILL INCLUDING REWARD SCHEME OF CHAPTER -3

38

withdrawal request after leo

after processing of request by efo AND CANCELLATION OF LEO BY DC (SHED), APPROVAL IS GIVEN BY DC (SHED)

withdrawal allowed after completion of formalities by Custodian

EXAMINATION / INSPECTION OF GOODS BY THE INSPECTOR / SUPERINTENDENT REPORTING BY THE INSPECTOR LEO BY SUPERINTENDENT PRINTOUT OF SHIPPING BILL LEFTING OF CARGO BY THE AIRLINES FILING OF EGM BY AIRLINESSHIPPING BILLS PUT UPTO DC(SHED) FOR INSTRUCTIONS

DRAWBACK INVOLVED MORE THAN Rs.1 LAKHDRAWBACK INVOLVED MORE THAN Rs.50,000/- BUT BEING EXPORTED TO SENSITIVE COUNTRY Cases of Drawback less than Rs.1,00,000/- or Rs.50,000/- (sensitive country)OTHER SHIPPING BILLSCHA/ EXPORTER TAKES ONLINE CARTING PERMISSION FROM AIRLINE AND PAY TERMINAL CHARGES TO Custodian CONSIGNMENT WEIGHED AT TDIF WEIGHT EXCESS IN COMPARISON TO TC, DIFFERENTIAL TC WILL BE PAID

SUBMISSION OF DOCUMENTS (CHECK LIST OF SHIPPING BILL, COMMERCIAL INVOICE, PACKING LIST, ARE-I ETC.) ALONGWITH ANNEXURE C TO INSPECTOR FOR REGISTRATION

SINCE THE GOODS HAVE NOT ENTERED IN CUSTOMS AREA TC to be cancelled by CustodianWithdrawal TO BE ALLOWED BY Custodian

Letter to DC (Shed) for withdrawal

EFO Process the request and put to DC (Shed)

After APPROVAL OF DC (SHED) and completion of formalities by Custodian, withdrawal allowed

After registration for withdrawal same procedure as mentioned in Box A.

GOODS BROUGHT TO TD (TERMINAL DOCK) GATE(A)PROCEDURE IN EXPORT SHEDWITHDRAWAL OF SHIPMENT

39REQUIREMENT OF DOCUMENTS AT VARIOUS STAGES1) Payment of Terminal Charges (TC)Online request filed by cha/exporter with custodian indicating \ Shipping Bill No, date, Shippers Name, Packages, Gross weight , chargeable weight, Package Dimension, etc.2) A T Terminal Dockgate (TD)Weighment of consignment done, Print Generated, in case of variation in weight with RESPECTIVE TC. Handing over of print AT TC counter for payment of differential TC along with copy of AWB by cha / exporter.

3) Registration of Goods(a) Annexure C signed by CHA with Stamp, bearing details such as Shipping Bill No, AWB No., Packages, Gross weight, Net weight, Name of Commissionerate, Division and Range, (in case shipment is agaisnt are-1).

(b) Check list of Shipping Bill(c) Invoice (d) Packing List(e) Annexure-1 - Cenvat declaration(f) annexure-a Value declaration (h) self declaration form (sdf)(I) ARE-1(J) any other required document

40Implementation of Risk Management Systems (RMS) in ExportsIt is proposed to implement the Export module of RMS in two phases. In the first phase, which has been rolled out on 24.01.2014, RMS will process the Shipping Bills for the purpose of selecting the bills for verification of Assessment and Examination. In the second phase, which will be introduced subsequently, RMS will process the Shipping Bills after filing of EGM to select the Bills for PCA (Post Clearance Audit) and sanction of Drawback by the officers.

The objective of the RMS is to strike an optimal balance between facilitation and enforcement and to promote a culture of compliance.

Contd..

41This output from RMS will determine the flow of the Shipping Bill in ICES i.e. whether the Shipping Bill will be taken up for Customs control (verification of self-assessment or examination or both) or to be given Let Export Order directly after payment of Export Duty (if any) without any verification of self-assessment or examination. The RMS will also provide instruction for Appraising Officer / Superintendent, Examining Officer / Inspector or the Let Export Order (LEO) Officer, wherever necessary.

The RMS may facilitate Shipping Bills which are perceived to be compliant with the Customs Laws and Regulations. Such self-assessed Shipping Bills will be ready for goods registration and Let Export Order after payment of export duty (if any) on presentation of required documents, on the basis of the self assessment without any assessment/ examination by the officers. Facilitated Bills will be subjected for inspection before giving LEO.

Contd..

42High risk consignments will be interdicted by the RMS and sent for verification of self-assessment and / or examination by the officers based on risk parameters and also on a random basis. Further, if any non-compliance is noticed , the system may also select such Shipping Bills for Assessment and / or Examination. All such Bills which are selected for action by Customs will be processed in the ICES as per the treatment and instructions communicated by the RMS. It needs to be noted that the decisions communicated by the RMS on the need for verification of self-assessment and / or examination and the appraising and examination instructions communicated by the RMS have to be followed by the Officers involved in assessing and / or examining the export consignments. Compulsory Compliance requirements (CCRs): The RMS has a consolidated database of the compliance the requirements arising out of various Allied Acts which are administered by other government departments (OGD) and implemented by Customs at the borders.

Contd..

43Amendments in Shipping Bill: the existing procedure for amendments in the ICES will continue. Assessment of Shipping Bill: The shipping Bills selected by the RMS for assessment will be sent to Export Appraising Section. Present assessment process in ICES will continue. Examination and Let Export Order (LEO): Based on the RMS output a Shipping Bill may be sent for assessment and examination or examination alone without any assessment. Such Shipping Bills will be examined by the officers based on the RMS instructions/examination order given in the system by Export Appraising section and suggested CCRs. The existing system of selection of package numbers and SSO ID of officer for examination by the system after the goods registration will continue. In the case of Shipping Bills which are not selected for examination, the officers will inspect only the marks and numbers, or seal number of the consignment and integrity of the seal as the case may be, and proceed to give Let Export Order after the Exporter / CHA complies with the CCRs and produces the required documents.Contd..

44Document Submission : It is essential that all the documents are submitted by the Exporters / CHAs to the proper officer (Appraiser / Superintendent) before getting the Let Export Order for the goods. Thereafter Shipping Bill print shall be generated by the system. At the time of getting signature of LEO officer, the dockets containing following documents wherever applicable shall be submitted by the Exporter / CHAs after affixing their signature on each of them.

a) Copy of Shipping Billb) AR-4 /ARE -1 (Wherever applicable)c) Invoice / packing listd) ADC clearance, wherever requirede) Other documents specified in the CCR instructions.f) SDF (Statutory Declaration Form), wherever requiredg) CENVAT declaration, wherever requiredh) Any other documents submitted by the Exporter/ CHA.

Contd..

45Post Clearance Audit (PCA) : The RMS will select the Shipping Bills for audit, after issue of LEO, and these selected Shipping Bills will be directed to the audit officers for scrutiny by the ICES. In case any possible short levies or undue claim of export incentives are noticed, the officers will issue a Consultative letter setting out the grounds for their views to the Exporters / CHAs.

TRADE FACILITATION MEASURES AT AIR CARGO EXPORT (SHED)Introduction of 24x7 Customs clearance operations for Duty Free Shipping Bill w.e.f.01.09.2012:As a measure of trade facilitation, 24x7 Customs clearance operations facility for export consignments covered by Duty Free Shipping Bills was introduced w.e.f. 1st September, 2012 at Air Cargo Export Commissionerate, New Delhi and for implementation of the same a Public Notice No.35/2012 dated 30.08.2012 was issued accordingly. Contd..

46

THANK YOU47