Chapter: 2.2 Procedure of Import-Export

Procedure of Import-Export

Goods may be imported in or exported from India through sea, air, land, through post or as a baggage with passengers. The procedure to be followed would vary depending on the mode of import or export. Normally, import procedures have to be followed by both; i.e., the importer as well as by the person-in-charge of conveyance.
 
Import Manifest: As per the provisions of section 30 of the Customs Act, the person-in-charge of a vessel or an aircraft or a vehicle carrying imported goods or any other person as specified by the Government shall deliver to the proper officer an Import Manifest or Import Report as per the following time limit:

i. in the case of a vessel or an aircraft prior to arrival of the vessel or the aircraft and
ii. in the case of a vehicle within 12 hours after its arrival in the customs station.

In case of default, a penalty up to rupees fifty thousand can be levied on the person-in-charge if he does not deliver the manifest or report to the proper officer within the time period and does not show sufficient cause for the delay.
 
Importers procedures: The importer is required to submit necessary details like the description of the product, name of the supplier, invoice number, bill of lading number, quantity of goods, classification, rate per unit etc. in order to get the bill of entries prepared under EDI (Electronic Data Interchange system). However in case of custom house, where manual bills of entries are processed, the importer either himself or through agent is required to submit the bill of entry along with the documents mentioned above. The bill of entry can be for the purpose of warehousing of goods or for clearance for home consumption. The following steps are normally taken for the clearance of goods:

i.    Filling of Bill of Entry for home consumption or warehouse or in case of EDI system submitting the details.
ii.    Appraisement of Bill of Entry - In case of second appraisement, assessment is done first and duty is assessed. In case of first appraisement, inspection is done first then duty assessed.
iii.    Payment of duty - The duty assessed has to be paid.
iv.    Inspection of cargo is done where second appraisement method is followed. v. The cargo is then delivered.

In case of exports instead of Bill of Entry the exporter has to submit Shipping Bill or submit the data, like description of export product, FOB value, quantity unit, invoice No., Bill of Lading, etc. to enable authorities to prepare shipping bill in EDl system.

Warehousing: The importer of goods can file the warehouse Bill of Entry and may store such goods in an authorized warehouse upon execution of bond and clear the goods from such warehouse as and when needed as per the provisions of the Act. Goods other than capital goods intended for use in a 100% EOU can be warehoused for a period of three years and for capital goods to be used in a 100% EOU the time period is five years. In relation to any other goods, except those mentioned aforesaid the time limit is one year. The interest free period for which goods may remain warehoused is up to ninety days, for goods other than to be used by a 100% EOU. The owner of any warehoused goods can relinquish his title to the goods upon payment of rents, interests, other charges and penalties, before the proper officer has made an order for clearance of goods for home consumption.