Presentation on Customs Clearance Solutions

IMPORTS

TYPES OF IMPORTS
Home Consumption Bill of Entry. Into-Bond & Ex- Bond.

Related Party Imports. (SVB Cell )

High Sea Sale. D. E. E. C. ( Duty Exemption Entitlement Certificate ) D. E. P. B. ( Duty Entitlement Pass Book ) 100 % EOU. ( Export Oriented Unit ) STPI Units ( Software Technology Park of India ) 3 rd Party Imports. ( Importer & End user being different )

E.P.C.G. ( Export Promotion Capital Goods )

Project Imports. Import on ATA Carnet. Re-Import.

IMPORT

Manufacture without payment of duty under Customs Bond

Manufacture without payment of duty out of Customs bond.

Import Under concessional Rate of Duty

Regular Import

Manufacture without payment of duty under Customs Bond

100 % Export Oriented Unit

Software Technology Park

WHAT ARE EXPORT ORIENTED UNITS ?

THESE UNITS IMPORT RAW MATERIALS / COMPONENTS ETC. WITH AN UNDERTAKING THAT THE END PRODUCT WILL BE

EXPORTED. GOODS IMPORTED ARE ALLOWED FREE OF

CUSTOMS IMPORT DUTIES.

THESE UNITS CAN BE SET-UP ANYWHERE BUT, WITHIN THE

JURISDICTION OF THE EXCISE RANGE OFFICES.

WHAT ARE SOFTWARE TECHNOLOGY PARKS ?

THESE UNITS CATER TO PROVIDING SOFTWARE SOLUTIONS EITHER THRU HARD COPIES OR THRU SOFT MODE. THESE ARE SET-UP IN SPECIFIED / NOTIFIED AREAS.

ITEMS IMPORTED ARE FREE OF CUSTOMS IMPORT DUTIES.

DUTY CONCESSIONS ARE AVAILED FOR TRANSMITTING DETAILS,

IMPORTED OFFICE EQUIPMENTS, OFFICE FURNISHING ETC.

Manufacture without payment of duty out of customs bond.

Duty Exemption Entitlement Certificate

WHAT ARE DUTY EXMPTION ENTITLEMENT CERTIFICATES ? ? ?

THESE FACILITIVES ARE AVAILED BY THOSE IMPORTERS, WHO IMPORT RAW-MATERIALS/COMPONENTS ETC., FOR MANUFACTURING END-PRODUCTS MEANT FOR EXPORTS.

DUTY FREE ENTITLEMENTS ARE EXTENDED STRICTLY FOR THOSE

GOODS WHICH ARE USED FO EXPORT.

THESE FACILITIES ARE ONLY EXTENDED TO MANUFACTURERSEXPORTERS ONLY .

ITEMS IMPORTED UNDER THIS SCHEMES ARE FREE OF CUSTOMS IMPORT DUTIES.

Import Under Concessional Rate of Duty

(Lower rate of Duty)

Export Promotion Capital Goods

WHAT ARE EXPORT PROMOTION CAPITAL GOODS ? ? ?

THESE FACILITIES ARE PROVIDED TO MANUFACTURERS WHO WOULD WANT TO ENHANCE THE QUALITY OF THEIR

PRODUCTS TO MEET INTERNATIONAL STANDARDS.

IMPORTS OF MACHINARIES BOTH OLD AND NEW ARE ALLOWED

UNDER THE SCHEME WITH LOWER RATE OF DUTIES.

FOR AVAILING THIS FACILITY., EXPORT COMMITMENTS ARE

TO BE FORCASTED WITHIN THE TIME-FRAME AS STIPULATED

IN THE POLICY.

Regular Import

Into-Bond &
Home Consumption

High Sea Sale.

Duty Entitlement Pass Book

Re-Import

Ex- Bond

Related Party Imports. (SVB Cell )

3 rd Party Imports.

WHAT IS HOME CONSUMPTION ? ? ?

MOST USUAL WAY OF IMPORTS WHERE-IN THE IMPORTER PRESENTS DOCUMENTS TO THE CUSTOMS, PAYS DUTY AS PER PRESCRIBED TARIFF AND CLEAR THE GOODS, EITHER FOR CAPTIVE CONSUMPTION OR FOR TRADING PURPOSES.

WHAT IS INTO BOND & EX BOND ? ? ?

THIS IS A TYPE OF IMPORT WHERE NORMALLY IMPORTER UNDERTAKES TO IMPORT IN BULK WHERE HE GETS QTY DISCOUNTS & EX BONDS (TAKE GOODS OUT OF BONDED WAREHOUSE ) PARTIAL QUANTITIES AS AND WHEN REQUIRED AFTER PAYMENT OF CUSTOMS IMPORT DUTIES. THIS ALLOWS IMPORTER TO STREAMLINE HISCASH FLOW., AS DUTIES ARE PAID ONLY FOR QUANTITIES EX-BONDED..

THIS PROCESS ALSO HELPS THE IMPORTER / TRADER THE MUCH NEEDED J.I.T. SUPPLY.

WHAT ARE SVB IMPORTS ? ? ?

WHENEVER THERE ARE IMPORTS INTO INDIA WHERE BOTH

EXPORTER & IMPORTER BEING RELATED SPECIAL VALUATION

BRANCH (SVB) WOULD MONITOR TRANSACTIONS.

THE SVB CELL LOOKS INTO TRANSFER PRICING POLICY. REGISTRATION WITH CUSTOMS ARE MANDATORY. DOCUMENTS ASSESSED UNDER THIS REGISTRATION NORMALLY ARE ASSESSED PROVISIONALLY WITH AN

EXTRA 1% DEPOSIT WHICH ARE REFUNDABLE ON

FINALISATION OF THE SCREENING OF RATES ETC.

WHAT IS HIGH SEA SALE ? ? ?

THIS IS A PROCESS WHERE IMPORTER IMPORTS THE GOODS IN BULK & SELLS IT TO OTHER PARTIES ON HIGH SEAS i.e. BEFORE THE SHIP ARRIVES INTO THE DESTINATION PORT ,

THE ULTIMATE BUYER COMPLETES ALL CUSTOMS FORMALITIES AND CLEARS THE SHIPMENT.

GOODS CAN BE SOLD ON HIGH SEAS PARTLY TO ONE OR MANY

PARTIES UNDER SPLIT BILL OF LADING.

WHAT IS D E P B ?
( DUTY ENTITLEMENT PASS BOOK)
This is a scheme where credit availed by the Exporter is for adjustment of duty.

This is identical to DEEC ( Duty Exemption Entitlement certificate) The difference being DEEC is allowed only for those raw-materials which constitute part of the finished goods getting exported.
These License are not transferable, but where as in DEPB the benefit is availed for any item except for those which are restricted or banned for import. The DEPB licenses are freely transferable.

WHAT IS THIRD PARTY IMPORT ? ? ?

THIS IS A TYPE OF IMPORT WHERE THE ORIGINAL IMPORTER IMPORTS THE GOODS & SELLS IT TO ULTIMATE BUYER AT THE DESTINATION BEFORE CLEARANCE BUT AFTER ARRIVAL OF THE SHIPMENT (AFTER ENDORSEMENT) THE ULTIMATE BUYER COMPLETES ALL CUSTOMS FORMALITIES BY HIMSELF. ALL IMPORT BENEFITS ARE AVAILED BY THE ULTIMATE BUYER.

WHAT IS RE-IMPORT ? ? ?
THESE TYPE OF IMPORTS ARE ALLOWED FOR EXPORTING THE

DEFECTIVE AND RE-IMPORT THE SAME ( RETURN AFTER REPAIR )

WITHOUT PAYMENT OF DUTY. RE-IMPORT OF GOODS UNDER NIL DUTY CAN BE AVAILED IF DEFECTIVE GOODS ARE EXPORTED WITHIN 6 MONTHS FROM THE DATE OF IMPORTS AND THE GOODS IDENTIFIED ARE SAME AS THE ONES EXPORTED.

Import Under Lower Rate of Duty

Import Thru ATA Carnet.

Project Imports.

DOCUMENT REQUIRED FOR ATA CARNET CLEARANCE

ATA CARNET CERTIFICATE. WAYBILL .( MAWB/HAWB/BL) IMPORT INVOICE & PACKING LIST. CARGO ARRIVAL NOTICE. AUTHORITY LETTER TO CHA ADDRESSED TO CUSTOMS.

WHAT ARE PROJECT IMPORTS ? ? ?

THIS TYPE OF IMPORTS ARE NORMALLY ALLOWED ON PAYMENT OF
LOWER IMPORT DUTIES FOR THOSE WHO WOULD LIKE TO SETUP / EXPAND THE MANUFACTURING ACTIVITY. UNLIKE EPCG , PROJECT IMPORTS DONT NEED COMMITMENT OF EXPORT VOLUMES.

WHAT IS ATA CARNET ? ? ?

THIS TYPE OF BENEFITS ARE ALLOWED FOR TEMPORARY IMPORTS AGAINST CARNET ISSUED BY THE ORIGIN COUNTRY. IMPORTS ARE ALLOWED NORMALLY TO THOSE WHO PARTICIPATE IN EXHIBITION / SALES PROMOTION. THE IMPORTER NEEDS TO GIVE AN UNDERTAKING. THESE ARE ALLOWED FOR IMPORT WITHOUT PAYMENT OF IMPORT DUTY WITH A CONDITION THAT IT SHOULD BE EXPORTED WITH IN

SPECIFIED TIME FRAME .

DUTY CALCULATION CHART IF the Invoice Value is : 1000 $ x Exchange Rate 42 INR = Rs .42000 . If shipment would FOB mode then it should add

Freight

(20 % of Invoice Value or actual which ever is less)

: Rs .8400

Insurance ( 1.125 % of Invoice Value or actual which ever is less) : Rs.472.5 Total : Invoice value + Freight + Insurance

Assessable Value : Total +1 % Landing Charges ie 50872.5 +508.7 =51381) Duty calculate on assessable value ( Duty depends upon % of duty) For example If duty rate is ( 10 % + 16% + 3% + 3%+4%) 10% Basic on assessable value : Rs 5138

16 % Counter Valuing Duty + 3 % Education Cess on CVD : Rs. 9314 3 % Education Cess ( On 10 % + 16% +3%) 4% Additional Duty Total Duty Amount : Rs. 433.56 : Rs. 2650.66 : Rs.17536

How to Calculate Octroi ?

Assessable Value Duty : Rs. 100 . : Rs. 36.73 .

Total
Octroi 5.5 % on Total

: Rs. 136.73
: Rs. 7.52

(Note : Octroi percentage depends upon type of Items Imported State to State)

YES IMPORTER Customs service center Check List Error NO Submission

CHA

Value> Rs . 1 Lac N O B A N K Y E S A.C.

Auditer

APPRASINIG OFFICER

NO

Sec - 48

A.C

A.C. Approved

Registration

D.O. Relase From Steamer co./Stamp Duty .

Cargo Forwarding Formalites

SHED. E.O

Green Channel

SHED A.,O.

Out Of Charge

Preventive Officer

Delivery

FLOW CHART FOR 1ST CHECK IMPORT DOCS SUBMISSION

A.O ORDER FOR 1st CHECK

TO A.C. FOR CONFIRMATION 1 ST CHECK CAN B/E GIVEN BY A.C. DIRECTLY

B/E MARKED FOR EXAMINATION

CHA TO PRESENT B/E. TO E.O AT SHED B/E. IS ALLOCATED TO E.O BY SHED A.O.

EXAMINATION BY E.O & REPORT BY SHED A.O

COMMENTS BY SHED A.O. & B/E BACK TO GROUP A.O.

B/E ACTIVATE BY GR.A.O.---- AUDIT--A.C.

DUTY PAYMENT BY TR6 CHALLAN

OUT OF CHARGE DIRECTLY BY A.O

PREVENTIVE OFFICER

DELIVERY

FLOW CHART FOR 2ND CHECK IMPORT

ASSESSMENT

DUTY FREE B.E. Y NO E PAYMENT OF DUTY S GREEN CHANNEL REQUEST N AC SHED O

SHED APPARISER

GREEN CHANNEL Y N O EXAMINATION BY EXAMINATION OFFICERS

ANY DISCREPANCY N O OUT OF CHARGE BY SHED A.O

YES

MARKED TO GROUP A.O

PREVENTIVE OFFICER

EXPORTS

TYPES OF EXPORTS
Normal Exports D. E. E. C. ( Duty Exemption Entitlement Certificate )

D. E. P. B. ( Duty Entitlement Pass Book )

100% Export Oriented Unit. (100% EOU) Software Technology Park ( STPI) 3rd Party Exports. ( Exporter & End User being different ) E.P.C.G. ( Export Promotion Capital Goods ) Re-Exports.

EXPORTS

Exports Manufacture without Eeet under varies payment of duty under scheme under Customs Bond Commitment

Export under various

Regular Exports
Regular Export

schemes

EXPORT UNDER COMMITMENT

D.E.E.C

E.P.C.G.

Export under various schemes

100% EOU

STPI

DEPB

Normal Exports

Duty Free Export

Export of Perishable Cargo

Duty Draw Back

3 rd Party Export

Re-Export

Customer Warehouse or Factory

CFS / Cargo Complex Shipping bill filing Carting Customs Examination Docs and Cargo to be handed over to Shipping line/ Air line Container Stuffing Cooling period 24 Hours

VALUE ADDED SERVICES

VALUE ADDED SERVICES

SERVICES RENDERED FOR : I E C REGISTRATION SVB REGISTRATION EOU REGISTRATION STPI REGISTRATION PRIVATE BONDED WAREHOUSE REGISTRATION MRP ACTIVITY CONSULTANCY ON CLASSIFICATION OF GOODS 3RD PARTY IMPORTS RECORD KEEPING POSITION OF CONSIGNMENT STATEMENTS DAILY BASIS DUTY & OCTROI STATEMENT BY MONTHLY/ MONTHLY MONTHLY TURN AROUND TIME. INDUSTRIAL SPACIFIC UPDATION REFUNDS ANY OTHER SERVICES AS REQUIRED..

Thank you

AFL HOUSE, LOKBHARTI COMPLEX MAROL MAROSHI ROAD ANDHERI (E) MUMBAI 400 059