Custom clearance procedure
Presented By:
Mohil Dasadia
Priyanka Singh
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CUSTOMS CLEARANCE OF EXPORT
SHIPMENT
Shipment by Air
Shipment by Sea
Shipment by Land
Shipment by Post
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IMPORTANT REGISTERATIONS WITH
THE CUSTOMS
• Allotment of EDP NUMBER (ELECTRONIC DATA
PROCESSING)
• Importer-Exporter Code,
• RBI Code Number,
• Authorized Dealer Code of the e bank and
• current account
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EXCHANGE CONTROL
DECLARATION FORM
Every exporter is required to declare the exchange value of the export
shipment by giving an undertaking that the export proceeds shall be released
within a period of 6 months or due date whichever is earlier.
Manual processing: GR FORM for sea and air. It is issued in 6 copies.
GR form in case of Post is called PP
GR form in case of Software is called SOFTEX.
Computerized Processing: GR Form is replaced by SDF DECLARATION-
2 Copies
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DOCUMENTATION REQUIRMENT
FOR CUSTOMS CLEARANCE
Objective: To obtain LET EXPORT ORDER
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CUSTOMER CLEARANCE
PROCEDURES
Checking the Shipping Documents
Physical Examination of the export cargo
Loading of the goods
Post Loading Certification
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Documents Required and
provided to the clearing agent for processing.
Invoice of shipment
Packing list
Bill of lading
Copy of the Letter of Credit or Contract
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Documents required for importing first time
Copy of the Sales Tax Registration Certificate as an
importer
Copy of Registration Certificate issued by the
Export Promotion Bureau incase of import of Gems
and Jewelry
Copy of the National Tax Number
Copy of the most recent sales tax return
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Filing / Examination of Bills of Entry:
White Bill of Entry: The bill is prepared when the consignment is to be
cleared against the cash payment of the duty levied without transferring it
to a warehouse.
Yellow Bill of Entry: This bill is filed when the shipment is transferred to
the bonded warehouses.
Green Bill of Entry: This bill of entry is used for the release of shipments
which have been placed in bonded warehouse against the yellow colored
bill of entry.
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Clearance of Goods requiring immediate
Release
An officer of customs not below the rank of Assistant
Collector Customs may allow release of goods
requiring immediate clearance, even prior to
presentation of bill of entry thereof and subject to
such conditions and restrictions as may be prescribed
by the Central Board of Revenue.
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Assessment of duties / taxes
First appraisal of the consignment:
During first appraisal the case is
forwarded to the appraisement hall where the specific percentage of
goods imported is determined for examination. The principal
appraiser marks the case to the Inspector and Deputy
Superintendent for examination. The inspector after examining the
goods marks the case to the Deputy Superintendent for further
approval.
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Conti…
The second appraisement of the shipment:
second appraisal carried out by the
customs department in reference to the report
forwarded by the principle appraiser along with
documents submitted by the clearing agent for
determination of customs duty.
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Release of Goods
After assessment of valuation the case is then forwarded to the “Inspector - Out of
Charge” for final release and issuance of a gate pass. Following documents are
submitted to the Inspector for Processing:
Copy of Invoice
Copy of Packing List
Bill of Entry (Original Copy, Quadruplicate Copy and Statistical Copy)
With the issuance of gate pass, the importer is directed to deposit the amount
of duty assessed, warehouse charges, fines and penalties, if any, placed by the port
authorities. Once the payment is made, the shipment is released and can be loaded and
transported to its destination.
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Basis of calculation of duty
Declared Value: This is the value of the
consignment as given on the invoice and
shown in the bills of entry.
Evidence Value: This value is based on the
history of previous duty paid by the importer
of the same commodity.
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Provisional Assessment of duty
Where it is not immediately possible to assess the customs duty on any imported goods for the
following reasons:
• That the goods require chemical or other test or
• Further inquiry for the purposes of assessment or
• That all the documents or complete documents or full information pertaining to those
goods have not been furnished,
An officer not below the rank of Assistant Collector or Deputy Collector of Customs
may order that the duty payable on such goods be assessed provisionally subject to the payment
of any additional amount or furnishing of bank guarantee for the purposes of securing payment
of duty, if any, payable on final assessment, by the importer, as such officer deems sufficient.
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Submission of Goods Declaration
The Goods Declaration i.e. on line filing of bills of entry etc.
may be filed on line at least 24 hours before the arrival of the
vessel. The duties and taxes are computed and discharged (at any
nearest online bank branch) by the importer before submission
of the declaration to the Customs. On submission of the
document the importer is granted an online receipt in the shape
of Customs Reference Number (CRN) also known as Machine
Number.
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Thank you!!!
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