The document summarizes key provisions of the Customs Act of 1962 related to the clearance of imported and exported goods in India. It discusses restrictions on custody and removal of imported goods, requirements for filing import bills of entry, time limits for duty payment, clearance procedures, disposal of uncleared goods, warehousing, entry and clearance of export goods, and maintenance of an electronic cash ledger. It also provides statistics on the number of bills of entry and shipping bills filed annually as well as the volume of e-payment transactions processed through ICEGATE, the Indian customs gateway.
3. Legends Used
AEO Authorized Economic Operator
BOE Bill of Entry
CAS Customs Automated System
CFS Container Freight Station
CBIC Central Board of Indirect Taxes and Customs
CG Central Government
ICEGATE Indian Customs Electronic Gateway
4. Presentation Schema
Introduction
Clearance of
Imported Goods
Restrictions on
Custody and
Removal of
Imported Goods –
Sec 45
Responsibility &
Liability of
Custodian
Filing of Import Bill
of Entry – Sec 46
Time Limit & Late
Fee
Clearance of
Goods – Sec 47
Time Limit for
Payment of Import
Duty
Interest on Late
Payment of Duty
Mandatory
Electronic Payment
of Duty
Procedure for
Disposal of Goods
not Cleared – Sec
48
Storage of
Imported Goods in
Public Warehouse
– Sec 49
Clearance of
Export Goods
Entry of Goods for
Exportation – Sec
50
Clearance of
Goods for
Exportation – Sec
51
Electronic Cash
Ledger - Sec 51A
Statistics
5. Introduction
Import means bringing into India from a place outside India while export means taking out of
India to a place outside India
The Customs Act,1962 contains the provisions containing the levy of Customs Duty on
imports and exports
Chapter - VII of the Act (Sec 44 to Sec 51) contains the provisions for clearance of
imported goods and export goods
Chapter - VIIA (Sec 51A) provides for the maintenance of electronic cash ledger for deposit
and payment of duty
7. Restrictions on custody and removal of imported
goods – Sec 45
they shall remain in the custody of such person (“custodian”) as may be
approved by the Principal Commissioner/Commissioner of Customs.
Until the imported goods are cleared for home consumption or are
warehoused or are exported for transshipment*,
The responsibility of the custodian commences in respect of imported goods the moment
the ship is berthed in the harbour or the goods are ready for unloading from the aircraft
• the Port Trust is the custodian.In major ports,
• the Container Corporation of India, which operates the Container
Freight Station (CFS) is the custodian of the imported cargo.
In Inland Container Depots,
• the Airport Authority of India is the custodian.In case of air cargo,
• the custodian is the Station MasterFor goods brought by rail,
* Transhipment refers to the unloading the imported goods for carriage of goods to another customs port/ airport
8. Responsibility & Liability of Custodian
Responsibility of Custodian
Maintain a proper record of goods received from the carriers and send a copy of the record
to the Proper Officer.
Not to permit such goods to be removed from the customs area or allow them to be dealt
with otherwise except under the specific permission in writing of the Proper Officer
Liability of Custodian
If any imported goods are pilfered after unloading in any customs area, while in the
custody of the custodian, such custodian shall be liable to pay duty on such goods.
The duty shall be paid at the rate prevailing on the day of delivery of the arrival manifest or
import manifest or import report to the Proper Officer
9. Filing of Import Bill of Entry – Sec 46
The importer is required to make an electronic integrated declaration to the
Customs Computer Systems through network facility
It is the duty of the importer to make an application electronically on the customs
automated system to the Proper Officer for clearance of the goods.
Bill of Entry (Electronic Integrated Declaration and Paperless Processing) Regulations, 2018
• means particulars relating to the imported goods that are entered
in the Indian Customs Electronic Data Interchange System
Electronic integrated
declaration
• Indian Customs Electronic Gateway (ICEGATE) is the customs
automated system of CBIC
• Portal - www.icegate.gov.in which provides e-filing services
ICEGATE
The form of the bill of entry is governed by Bill of Entry (Forms) Regulations, 1976
The Principal Commissioner/ Commissioner of Customs may, in cases where it is not feasible to make entry
by presenting electronically on the customs automated system, allow an entry to be presented manually
10. Inability to File Bill of Entry
Such goods shall not be deemed to be cleared for warehousing for the purpose of the Act and
accordingly warehousing provisions shall not apply to such goods
Alternatively, he can seek permission to deposit the goods in a public bonded warehouse
pending receipt of the bill of entry. This is also called warehousing without warehousing.
If for any reason the importer is unable to furnish, he may request the customs officials to
examine the goods in his presence to enable him to ascertain the necessary details for
making a proper declaration in the bill of entry.
A bill of entry shall include all the goods mentioned in the bill of
lading or other receipt given by the carrier to the consignor
The Bill of Lading given by the carrier of the goods is the importer’s document of title
to the goods. The Bill of Lading covers all the goods imported with full description
Contents
11. Declaration of Bill of Entry
The importer who presents a bill of entry shall ensure
the following, namely :—
the accuracy and
completeness of the
information
the authenticity and
validity of any
supporting document
compliance with the restriction or
prohibition, if any, relating to the goods
under this Act or under any other law for
the time being in force
The importer of any goods, while presenting a bill of entry, shall make and
subscribe to a declaration as to the truth of its contents
he may permit substitution of a bill of entry for home consumption
for a bill of entry for warehousing or vice versa
If the Proper Officer is satisfied that the interests of revenue are not
prejudicially affected and that there was no fraudulent intention,
12. Time Limit & Late Fee
• The importer shall present the bill of entry before the end of the next day following the day
(excluding holidays) on which the aircraft/vessel/vehicle carrying the goods arrives at a
customs station
• Bill of entry may be presented at any time not exceeding 30 days prior to the expected arrival
Time Limit
• Where the bill of entry is not filed within the time and the Proper Officer of Customs is
satisfied that there was no sufficient cause for such delay, the importer shall be liable to
pay charges for late presentation
• Charges – Rs. 5,000 per day for the initial 3 days of default and
Rs. 10,000 per day for each day of default thereafter
• However, it shall not exceed the duty payable in respect of that particular bill of entry
Late Presentation Charges
13. Clearance of Goods – Sec 47
Where the
Proper
Officer is
satisfied that
any goods entered
for home
consumption are
not prohibited
goods
and the importer has paid the
import duty, if any, assessed
thereon and any charges
payable under this Act in
respect of the same,
the Proper Officer may
make an order permitting
clearance of the goods
for home consumption
• Government has permitted importers certified under Authorized Economic
Operator (AEO) program to make deferred payment of import duty
• AEO means Authorized Economic Operator certified by the Directorate General
of Performance Management under CBIC
CG may permit certain class of importers to make deferred payment of said duty or any charges
On making the clearance order, which is popularly known as “pass out of customs charge order” the bill of
entry (duplicate) copy is produced to the custodian who delivers the goods to the importer.
These orders will be passed on the CAS (customs automated system) on the basis of risk evaluation through
appropriate selection criteria as a trade facilitation measure to improve efficiency in custom clearance
Prohibited goods – wild animal parts, pigs, skins and feathers of birds, ivory and ivory articles, narcotics, etc
14. Time Limit for Payment of Import Duty
The importer shall pay the import duty—
in the case of self-assessment*
on the date of presentation of
the bill of entry
in the case of assessment,
reassessment or provisional
assessment**
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 deferred payment
Due date as specified by rules
• 17th of the monthBOE from 1-15th day of any month
• 2nd day of the following monthBOE from 16th to last day of month (except March)
• 31 MarchBOE from 16-29 March
• 02 AprilBOE from 30-31 March
* Value of goods & duty
determined by importer
** Value of goods & duty determined by proper officer
Re assessment – reopening of earlier assessment
Provisional – assessment done in advance to be finalised later
15. Mandatory Electronic Payment of Duty
CG may specify the class or classes of importers who shall pay such duty electronically
The CG has notified the following classes of importers who have
to pay customs duty electronically, namely:-
Importers registered under Authorized
Economic Operator (AEO)
Importers paying customs duty of
₹10,000 or more per bill of entry
Payments can be made through ICEGATE dedicated payment gateway set up by the CBIC
Interest on Late Payment of Duty
If the importer fails to pay the duty either in full or in part within the time so specified,
he shall pay interest on the duty not paid or short-paid till the date of its payment.
• The rate of interest shall be not below 10% and not exceeding 36%
per annum and shall be fixed by the CG
• However, the interest may be waived by the CBIC in public interest
16. Procedure for Disposal of Goods not
Cleared – Sec 48
the custodian of the goods is permitted,
with the approval of the customs department
and after giving notice to the importer,
to sell the goods by auction
If there are any goods imported,
if the title to any imported
goods is relinquished*
which are not cleared either for home consumption or for warehouse within
30 days or within such further time as the Proper Officer may allow
In the case of sensitive goods like animals, foodstuffs and hazardous goods etc. the custodian with
the approval of the Proper Officer can sell the goods even before the expiry of the 30 days limit
Arms and ammunition may be sold at such time and place and in such manner as the CG may direct
*Relinquish - means to give over the possession or control of, to leave off
17. Storage of Imported Goods in Warehouse
pending Clearance or Removal – Sec 49
Where the Assistant Commissioner/Deputy Commissioner of
Customs is satisfied on the application of the importer that––
in the case of imported goods,
whether dutiable or not entered for
home consumption
the goods cannot be cleared within a
reasonable time
in the case of any imported
dutiable goods, entered for
warehousing
the goods cannot be removed for
deposit in a warehouse within a
reasonable time
then in such cases, goods can be stored in a public warehouse for a period not exceeding 30 days
Principal Commissioner/Commissioner of Customs may extend such period of storage for further 30 days at a time
Such goods deposited under public warehouse will not be
covered under Chapter IX of the Act relating to Warehousing
19. Entry of Goods for Exportation – Sec 50
The exporter is required to present electronically on the
customs automated system to a Proper Officer of customs
a shipping bill
in case of export
by a vessel or by
air and
a bill of export,
in case of export
by a vehicle
Filing of shipping bill and payment of duty is to be done on the automated system of customs department or CAS
Principal Commissioner/Commissioner of Customs may, in cases where it is not feasible
to make entry by presenting electronically, allow an entry to be presented manually
The form of the shipping bill is prescribed under the Shipping Bill and Bill of Export (Forms) Regulations, 2017
20. Filing of Shipping Bill – Sec 50
Normally a shipping bill is permitted to be filed only after an entry outward has
been granted for the particular vessel or aircraft by which the goods are to be exported.
However, the Principal Commissioner/ Commissioner of Customs may permit advance
shipping bill to be filed
The exporter who presents a shipping bill or bill of export
under this section shall ensure the following, namely :—
the accuracy and
completeness of the
information
the authenticity and
validity of any
supporting document
compliance with the restriction or
prohibition, if any, relating to the goods
under this Act or under any other law for
the time being in force
The exporter of any goods, while presenting a shipping bill or bill of export, shall
make and subscribe to a declaration as to the truth of its contents
21. Clearance of Goods for Exportation – Sec 51
Where the
Proper
Officer is
satisfied that
any goods
entered for
export are
not
prohibited
goods
and the exporter has paid
the duty, if any, assessed
thereon and any charges
payable under this Act in
respect of the same,
the Proper Officer may
make an order
permitting clearance
and loading of the
goods for exportation
• The Proper Officer makes the order for shipment on the duplicate copy of the shipping bill.
• This is known as “Let Export” order
CG may permit certain class of exporters to make deferred payment of said duty or any charges in such
manner as may be provided by rules, in which case ‘let export’ order can be issued before duty is paid
No notification has been made yet, extending deferred payment facility to exporters
Where the exporter fails to pay the export duty, either in full or in part, by such due date as may
be specified by rules, he shall pay interest on said duty not paid or short-paid till the date of its
payment at such rate, not below 5% and not exceeding 36% cent per annum as fixed by CG
Prohibited goods - wild animal parts, pigs, skins and feathers of birds, ivory and ivory articles, narcotics,
antique Indian coins etc
22. Electronic Cash Ledger - Sec 51A
A new system to leverage payments-automation is enabled in Customs clearance
(imports or exports) by CBIC
With the use of an authorized mode of payment, persons who regularly make payment –
duty, interest and even penalty, if any – are permitted to ‘deposit’ a certain amount of
money.
And then when the occasion arises for making payment, they can pay by debit to the
balance in this deposit account
Person who may be required to regularly make payment are
importer, exporter (of dutiable goods) or Customs Brokers
Dutiable exports – Tea, Coffee, Spices, Tobacco, iron ore, manganese & other metals, raw wool, cotton etc
24. No. of Bill of Entries Filed
362,337
322,132
362,277
374,240
338,827
364,750
348,986
366,302
380,005
359,169
362,507
365,565
371409
344211
347000
345848
367728
414610
388740
413034
400242
0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000
March
February
January
December
November
October
September
August
July
June
May
April
2019-20 2018-19
26. No. of e-Payment Transactions on ICEGATE
April May June July August September October November December January February March
2018-19 343 388 398 412 382 358 396 350 368 366 333 374
2019-20 365 387 357 400 379 352 352 354 369
300
320
340
360
380
400
420
2018-19 2019-20
[in thousands]
