EXPORT-IMPORT

PROCEDURES
Dr. Anuj Sharma
BIMTECH
Greater Noida
 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 and the System generates a SB No, which is
endorsed on the printed checklist and returned to the exporter/CHA.

Arrival of Goods at Docks:

• The goods brought for the purpose of examination is allowed entry to the
Dock on the strength of checklist. The Port authorities have to endorse
the quantity of goods actually received on the reverse of the Check List.

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 Processing of Shipping Bill

System Appraisal of Shipping Bills

•In many cases the SB is processed by the system on the basis of
declarations made by the exporters without any human intervention. In
other cases where the SB 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 Service Center
whether the SB submitted by them in the system has been cleared or not,
before the goods are brought into the Docks for examination.

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 Processing of Shipping Bill
• In case any query is raised, the same is required to be replied through the
service center 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.

Arrival of Export Goods at ICD

After passing of SB, CONCOR will thereafter give carting permission on SB

Customs Examination of Export Cargo

• After the receipt of the goods in the dock, the exporter/CHA may contact
the Customs Officer designated for the purpose present the check list with
the endorsement of Port Authority and other declarations as aforesaid along
with all original documents such as, Invoice and Packing list etc.

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 Processing of Shipping Bill
• Customs Officer may verify the quantity of goods actually received and
enter into the system and also hand over all original documents to the
Dock Appraiser who many assign a Customs Officer for examination
and intimate the officers name and packages to be examined.

• The Customs Officer may inspect/examine the shipment along with

Dock Appraiser. Customs Officer enters the examination report in the
system. He then marks the Electronic Bill along with all original
documents and check list to the Dock Appraiser. If the Dock Appraiser is
satisfied that the particulars entered in the system conform to the
description given in the original documents and as seen in the physical
examination, he may proceed to allow "let export" for the shipment.

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 Risk Management System
• RMS has been introduced in Customs locations where the EDI System is
operational. This is one of the most significant steps in the ongoing
Business Process Re-engineering of the Customs Department.

• Bills of Entry and IGMs filed electronically in ICES through the Service
Centre or the ICEGATE are transmitted by ICES to the RMS. The RMS
processes the data through a series of steps and produces an electronic
output for the ICES. This output determines whether a particular B/E
will be taken-up for action (appraisement or examination or both) or be
cleared after payment of duty and Out of Charge directly, without any
assessment and examination. Also where necessary, RMS provides
instructions for Appraising Officer, Examining Officer or the Out-of-
Charge Officer.

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 Risk Management System
• On similar lines of the RMS in imports, RMS in Export has also been
introduced. The RMS in exports allows low risk consignments to be
cleared based on self assessment of the declarations by exporters. This
enables the department to enhance the level of facilitation and speed up
the process of export clearance.

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 Processing of Shipping Bill
• Stuffing of containers will be done only after obtaining permission from
the Supdt. (Exports) by Manager, ICD. The stuffing of containers will be
done strictly under Customs supervision and CONCOR/CHA
representatives. The stuffing sheets will then be prepared and signed by
the exporter/representative of the shipping-line and jointly signed by
shipping-line and Shed Incharge.

• A complete record of no. of shut out packages and the quantities of

goods loaded will be recorded on the SB after the stuffing of container is
done. Thereafter the container will be duly sealed with Customs OTL
(One Time Lock) seal.

• After the Customs copy of the stuffing sheet is presented to the Supdt.
(exports) he will give the "Let Export" order (LEO)
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 Processing of Shipping Bill

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.

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• The two transference copies of the SB handed-over to CONCOR who
will be responsible for producing it along with the container to Customs
Office at port of exit.

• The factory stuffing of the export containers will be allowed after

seeking permission from the Asstt Commissioner of Customs, ICD. In
such cases the containers will be stuffed by the exporters under Central
Excise supervision and the containers will be sealed with punch seals
(Lead seals) and forwarded to ICD for onward transshipment to the
gateway ports.

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 Procedure at the Gateway Port
• At the gateway port container will be allowed to be exported under
preventive supervision on checking the seals . He will suitably endorse
two transference copies of the SB regarding the fact of shipment

• At the port of shipment the steamer agent will also file export manifest in
duplicate. After the shipment of goods, the concerned officer must send
the transference copies of the SB within 24 hours of loading of the goods
to the container unit of the Export Department.

• Within 24 hrs of receipt of SB container unit will send it to the ICD. The
Container Unit shall then dispatch one copy of transference SB and one
copy of export manifest to Assistant Commissioner of Customs, ICD.

• Asstt. Commissioner of Container Unit of Gate-way Port will ensure that

all SB and manifests have been duly dispatched to the ICD. Second
transference SB will be retained by Customs House at the Gate-way Port.

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 Procedure for Export At Sea Port
• SB along with other documents is presented by CHA to preventive
officer of the Customs dept. who supervises the loading of cargo
on board the vessel. He makes endorsement “Let Ship” on the
duplicate copy of SB which is handed over to CHA (This is
authorization by customs to Shipping Co. to accept cargo)

• Goods loaded on board and captain issues Mate’s receipt to Shed

Suptd which is delivered to CHA on payment of dock charges.

• Mate’s receipt is presented first to Preventive Officer who records

certificate of shipment on SB.

• Mate’s receipt is then presented to Shipping Co. and receives 2-3

negotiable copy of B/L.

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 Procedure for Import
• Arrival at customs port - Section 29 provides that person-in-charge of a
vessel entering India shall call or land at customs port only.

• Import Manifest - Person-in-charge of vessel has to submit Import

Manifest . [IGM - Import General Manifest]. The import manifest in case
of vessel is required to be submitted prior to arrival of a vessel.  If the
manifest could not be submitted within prescribed time, person-in-charge is
liable to penalty upto Rs 50,000.

• IGM can be submitted electronically where EDI facility is available.

• Grant of Entry Inwards by Customs Officer - Unloading of cargo can start

only after Customs Officer grant ‘Entry Inwards’. Such entry inwards can
be granted only when berthing accommodation is granted to a vessel. If
there is heavy congestion shipping berth may not be available and in such
case, ‘Entry Inwards’ cannot be granted.

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• Carrier responsible for shortages during unloading - If the goods are short
landed, the carrier is liable to pay penalty upto twice the amount of duty
payable. It has been held that tally sheet prepared by Port Trust authorities
on unloading of goods is a statutory document and should be accepted.

Procedure by Importer –
Bill of Entry - This is a very vital and important document which every
importer has to Submit.
• Bill of Entry should be submitted to the customs department.

• Under EDI system, Bill of Entry is printed on computer in triplicate only

after ‘out of charge’ order is given. Duplicate copy is given to importer.

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• Rate of Duty for Clearance from Warehouse - It may be noted that
rate of duty applicable is as prevalent on date of removal from
warehouse. Thus, if rate has changed after goods are cleared from
customs port, customs duty as assessed on yellow bill of entry and as
paid on green bill of entry will not be same.

• Filing of Bill of Entry – Submitted by CHA the Bill of Entry has to be

filed electronically, i.e. through Customs EDI system or manually.

• The documents that are essentially required are : (i) Invoice (ii)
Packing List (iii) Bill of Lading (iv) Import Licence (v) L/C (vi)
insurance policy (vii) Certificate of country of origin (viii) Advance
License in original.

• Noting of Bill of Entry – B/E submitted by importer is cross-checked

with ‘Import Manifest’ submitted by person in charge of vessel. It is
noted if the description tallies. This date is relevant for determining rate
of customs duty. Serial number is given in the import section.
Otherwise, it is returned for clarifications. In case of EDI system, noting
is done by the system itself
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• Prior Entry of Bill of Entry - After the goods are unloaded, these have to be
cleared within stipulated time - usually 3 working days. If these are not so
removed, demurrage is charged by port trust authorities.

• Assessment of Customs duty –

• Appraising The Goods - Appraiser has to (a) correctly classify the goods
(b) decide Value for purpose of Customs duty (c) find out rate of duty
applicable as per any exemption notification and (d) verify that goods are
not imported in violation of any law. If he is of the opinion that goods have
to be examined for appraisal, he will issue an examination order. If such
order is issued, the Bill of Entry is presented to appraising staff at docks,
where the goods are examined.

• Valuation of Goods - the importer has to file declaration about full 'value'
of goods. If the assessing officer has doubts about the truth and accuracy of
'value' as declared, he can ask importer to submit further information, details
and documents.

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• Payment of Customs Duty - After assessment, necessary duty is paid.
Regular importers and Custom House Agents keep C/A with Customs
department. The duty can be debited to such C/A, or it can be paid in
cash/DD.

• After payment of duty, if goods were already examined, delivery of goods

can be taken from custodians (port trust) after paying their dues. If goods
were not examined before assessment, these have to be submitted for
examination in import shed to the examining staff. After shed appraiser
gives ‘out of charge’ order, delivery of goods can be taken from custodian

• Examination of Goods - Examiners carry out physical examination and

quantitative checking like weighing, measuring etc. Selected packages are
opened and examined on sample basis.

• Out of Customs Charge Order - After goods are examined, it is verified

that import is not prohibited and after customs duty is paid, Customs Officer
will issue ‘Out of Customs Charge’ order under. Goods can be cleared from
customs area only on receipt of such order.
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• Thanks

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