Speedy Customs clearance now

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- Parinda Bureau, December 10, 2005, 11:47 IST

Government has introduced trade facility measures for expeditious customs clearance of cargo and reduction of congestion at ports. The measures which aim at streamlining of customs procedures in the functioning of Ports & Container Freight Stations broadly cover issues relating to risk assessment based speedier customs clearance of goods (RMS), accredited Clients Program for faster delivery (ACP), reduced dwell time under RMS/ ACP, E-banking, E-auction and simplified one time registration. These measures are expected to help the trade and industry in simplified filing of documents, faster assessment and payment of duty, quicker clearance of goods at Ports as well as in Inland Container Depots (ICDs) and would streamline the movement of cargo.

As a result of one of the ongoing Business Process Re-engineering project, Central Board of Excise and Customs (CBEC), Department of Revenue, Ministry of Finance had framed a Risk Management System (RMS) for speedy clearance of cargo to reduce dwell time and congestion at Ports/ CFS.RMS is being introduced in Mumbai Air Cargo Complex and Mumbai Port this month and will be introduced in other major Customs locations in the next few months. It would provide end-to-end solutions for issues spread across the entire compliance continuum - ranging from speedier clearance and facilitation on one end, to targeting and enforcement on the other.

CBEC has also introduced a new scheme of Accredited Clients Program (ACP) in line with the internationally accepted norm of 'Special procedures' for authorized persons who meet criteria specified by the Customs and have a good compliance record. Under this programme, Customs will release most of accredited clients' consignments without any intervention, thus drastically reducing clearance time and transaction costs. Their imports will be subject only to a small percentage of auomated random checks.

The accreditation under the ACP/ RMS is a national programme which means that the accredited clients get the same facilitation no matter from which port, airport or ICD they import their goods. Out of three main components of dwell time i.e. (i) Assessment to payment of duty, (ii) Examination of goods, and (iii) Registration of goods for issue of out of charge from customs, no time will be taken for assessment and for the examination of goods under the RMS and ACP program.

The e-banking facility is being extended to importers to enable them pay Customs duty through internet and clear goods quickly. The importer would know online about his duty liability and accordingly make e-payment online. This would reduce human interface between the Department & trade and enhance transparent functioning, expeditious payment of Customs duty and overall reduction of dwell time in clearance of imported goods. Modalities for implementation of e-banking are being worked out in consultation with banks and would be introduced shortly.

The following are the other measures introduced for simplification of procedure to benefit the trade and industry.

Amendment of Import General Manifest has been made easier as routine amendments would not be taken up for adjudication, which otherwise results in delay in clearance of goods and increases transaction cost.

The need for submission of bank guarantee for carriage of goods under transshipment by Shipping lines and all other carriers of containerized cargo undertaking transshipment of more than one thousand containers annually, has been done away with. The waiver has been provided for transshipment by all modes of transport.

Transhipment of international containers has been permitted at Mundra International Container Terminal (MICT) on the lines of practice and procedure being followed in Nhavasheva and Mumbai for transshipment of containers to foreign ports. This would benefit optimum utilization of the port capacity and facilitate movement of international transshipment cargo.

Transhipment of goods from the ports to the CFS/ICDs has been made simple by doing away with the requirement of separate application for transhipment of cargo.

Movement of containers loaded with LCL (Less than full Container Load) cargo has been facilitated. This would provide flexibility in the movement of cargo between various CFSs and reduce the time taken in consolidation of cargo.

EDI-based bond module is being extended for custodian and transshipper as a measure of simplification. The facility of electronic reconciliation of containers is also being introduced.
Procedure is Simplified for temporary importation of containers carrying imported cargo and its due re-export within 6 months time.

Service providers in the port handling sector who are appointed as Custodians by the jurisdictional Customs/Central Excise authorities would be eligible for reduced 25% Bank Guarantee for importing capital goods under Export Promotion Capital Goods Scheme (EPCG) as against 100% Bank Guarantee required at present.

Under the new simplified procedure Custodians would now be able to dispose of long pending uncleared goods themselves on the basis of time bound clearance from Customs resulting in expeditious disposal of such cargo.

CBEC has introduced 'E Auction' in all Customs formations. Such e-auctions would not only cover confiscated goods with Customs or time-expired warehoused goods but also uncleared /unclaimed cargo lying with the custodians.

Simplified one time registration with Custom House for 100% EOU units importing raw materials, capital goods and consumables, so that these units need not validate their data time and again for imports at different points of time at different ports is being introduced. These measures have arisen out of ongoing efforts of the Department of Revenue to simplify the procedure and discussions held with various stake holders on the procedural difficulties being faced by them for import and export of goods. Accordingly the CBEC has issued a set of instructions to all its field formations for their effective implementation. Detailed information is available on the CBEC website www.cbec.gov.in.