PROCEDURE OF IMPORT

The goods may be imported into or exported from India through sea, air, land, by 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.

Till date, the term ‘importer’ was defined to include any owner or any person holding himself to be importer. However, the Finance Act, 2017 has amended this definition to include beneficial owner also. Beneficial owner is defined under section 2(3A) of the Customs Act as the person on whose behalf the goods are being imported or exported or who exercises effective control over the goods being imported or exported. Hence, the beneficial owner will also have to follow the procedure of import. The definition of ‘exporter’ also has been amended on same lines.

1. Import Manifest

The person-in-charge of a vessel or an aircraft or a vehicle carrying imported or export goods or any other notified person shall present electronically to the proper officer an Arrival Manifest or Import Manifest or Import Report within the following time limits²²:

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

In case of default, penalty upto ₹ 50,000/- can be levied on the person-in-charge. However, in cases where it is not feasible for the importer to deliver the import manifest electronically, the Principal Commissioner of Customs or Commissioner of Customs may allow the same to be delivered in any other manner.

The Finance Act, 2017 has inserted Section 30A to provide that person-in-charge of conveyance or any other notified person should deliver to proper officer the following:

• passenger and crew arrival manifest. Such manifest is to be given before arrival for aircrafts and vessels and upon arrival for vehicles.
• Passenger name record information²³of arriving passenger.

In case of default, penalty may be levied upto ₹ 50,000/-.

2. Procedures for Import

The importer is required to file Bill of Entry either for home consumption or for warehousing the goods imported in India to clear the imported goods from Customs Area.

1. Time period for submissions of bill of entry:

   Bill of entry (BOE) shall be presented before the end of next day (excluding holidays) following the day on which the aircraft, vessel or vehicle arrives at the customs station. However, the importer has option to file advanced BOE, 30 days prior to the expected arrival date of the aircraft, vessel or vehicle. (Section 46 of the Customs Act)²⁴.

   The provision further provides for imposition of charges for delay in presentation of bill of entry without sufficient cause.

2. Manner of filing of Bill of Entry

   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, PAN and GSTIN of the importer, IGST, Compensation as may be applicable on goods imported, etc. in order to generate the bill of entries in EDI (Electronic Data Interchange system). Declaration pertaining to the details furnished in the BOE shall be furnished by the importer along with invoice and such other prescribed documents to the proper officer. The Act mandates importer to ensure the accuracy, completeness, authenticity, validity of any document supporting it and compliance with the law²⁵.

   The information in the bill of entry are reconciled with GST returns. Consequently, the details furnished in Bill of Entry shall be appropriately disclosed in GST returns so as to avail benefit of refund of GST.

3. Self-assessment²⁶

   The duties of customs shall be self-assessed and paid by the importer or exporter of goods. The proper officer may verify such self-assessment made by the assessee and for this purpose, he may examine or test such imported and exported goods and also require assessee to produce documents or information to ascertain duty leviable on such import of export of goods.

   If on the basis of this record, the proper Officer is of the opinion that self-assessment is not proper, he may re-assess the goods. In case re-assessment is contrary to self-assessment or there is non-acceptance of such re-assessment by the assessee, proper officer has to pass a speaking Order of re-assessment within 15 days from the date of re-assessment of bill of entry or shipping bill.

4. Payment of duty

   Every deposit made towards duty, interest, penalty, fee or any other sum payable by a person using authorised mode of payment shall be credited to the electronic cash ledger²⁷ of such person subject to specified conditions.

   The amount available in the electronic cash ledger may be used for making any payment towards duty, interest, penalty, fees or any other sum payable under the provisions of Customs Act, 1962 or under the Customs Tariff Act, 1975.

   The balance in the electronic cash ledger, after payment of duty, interest, penalty, fee or any other amount payable, may be refunded in such manner as may be prescribed.

   The customs duty should to be discharged in following manner²⁸:

   1. on the date of presentation of the bill of entry in the case of self-assessment; or
   2. within one day (excluding holidays) from the date on which the bill of entry is returned to him by the proper officer for payment of duty in the case of assessment, reassessment or provisional assessment; or
   3. in the case of deferred payment under the proviso to Section 47 (1) (Class of importers notified to make deferred payment of duty or any charged), from such due date as may be specified by rules made in this behalf.

   Failure to pay duty as specified above will attract interest as per the rate notified by the Government.

5. Warehousing

   The importer may furnish an into-bond bill of entry for depositing the goods in Customs warehouse (also called ‘Bonded Warehouse’). The detailed explanation of warehousing, time period of warehousing, etc. are explained in the following chapter.