GOVT. OF INDIA

OFFICE OF THE COMMISSIONER OF CUSTOMS,

CUSTOM HOUSE, KANDLA

Tele.: 02836-271460, Fax : 271467

PUBLIC NOTICE No. - 45/2006

DATED 09.06.2006

Subject – Procedure for Customs Clearance at – CFS- M/s Arvind V. Joshi & Co. Located at Vill Mithi Rohar, Tehsil Gandhidham, Distt:- Kutchh.

Importers, Exporters, Custom House Agents and all other concerned are hereby informed that in view of liberalized economy and the present trend in regard to containerization of cargo so as the fact that full benefits of such containerization can be derived with the availability of state-of-the art infrastructure facility for destuffing and clearance of import cargo and aggregation and stuffing into containers the export cargo, the CFS –Loacted at Village-Mithi Rohar, Tehsil-Gandhidham, Distt: Kutchh developed by M/s Arvind. V.Joshi & Co. has been appointed as the custodian’s vide notification No 01/2006 dated 21.04.2006 of the said premises.

1.1 The CFS facility shall operate on all week days in two shifts between 10.00 hours to 18.00 hours excepting on Sundays and second Saturdays of every month and every gazetted holidays. On such holidays and off days and beyond the aforesaid prescribed office time, on account of any imports/exports of urgent nature, the exporters/importers

or their agents can avail the services of the available staff on Merchant Overtime (MOT) basis with the permission of the Dy. Commissioner/Asstt. Commissioner of Customs Incharge of the facility.

1.2 The facility for movement of containers between the said CFS and the customs area of

Gateway ports will be available on round the clock basis.

1.3 M/S Arvind.V.Joshi & Co. CFS will act as the custodian of the goods at the said CFS. The movement of containers by road vehicles between the said CFS facility and the customs area inside Gateway ports will be undertaken by M/S Arvind V. Joshi & Co.

IMPORT

2. The following procedure is prescribed for clearance of import cargo at CFS- Arvind V. Joshi & Co.

2.1 The Importers / Exporters / CHA will submit copies of respective IGM & OBLs to M/S Arvind V. Joshi & Co. CFS along with a request for movement of Import (loaded) containers from Gateway ports to said CFS in advance.

2.2 M/s Arvind V. Joshi & Co. as the custodian of the CFS- M/s Arvind V. Joshi & Co. will arrange transportation of the import loaded containers from the customs area of Gateway ports to the said CFS facility after taking over the same from the Port authorities concerned on the strength of an Equipment Interchange Report (EIR) to be prepared by M/s Arvind V. Joshi & Co. which will be permitted by gate proper officer. In case seal of any Import Container is found to be tampered, the same will be removed from the Customs Area of Gateway port to the CFS-Arvind V. Joshi & Co. only after obtaining Permission of the Asst. /Dy. Commissioner of Customs incharge of the CFS., for re-sealing and transportation.

2.3 All customs formalities including physical examination of goods will be carried out at the CFS. This will help in the expeditious clearance of goods as well as permit co-ordination between documentary assessment including through EDI and the physical examination of goods.

2.4 The CFS will have the facility for import manifest, noting of bill of entry, appraisement of goods, concurrent audit, licence debiting, payment of duty, physical examination of goods and clearance.

2.5 The procedure for import examination, appraisement and other formalities at the CFS –Arvind V. Joshi & Co. would be as follows:

2.5.1 The destuffing of containers will be carried out in the presence of the Customs Officer, representative of Arvind V. Joshi & Co.,CFS, the Importer/CHA after verification of the Seal No. as per documents. After destuffing, the representative of M/S Arvind V. Joshi & Co. shall prepare a destuffing sheet which will be signed by him along with the customs officer, Importer/CHA and representative of the shipping lines in respect of LCL cargo. This sheet shall mention that the seal was found intact. The contents in the containers viz. packages, chests, pellets, boxes etc. shall be tallied and the numbers compared with reference to the IGM/OBL. Shortages/excess, if any, noticed at the time of destuffing shall be recorded and got certified by the Customs Officer on the destuffing sheet.

2.5.2 The clearance of goods for home consumption/warehousing from the CFS-Arvind V. Joshi & Co. shall be on the basis of the Bill of Entry in the prescribed form to be filed by the importers/ their authorized agents before the Customs authorities at the CFS-Arvind V. Joshi & Co. Each Bill of Entry shall be noted against the copy of the IGM. The Bill of Entry as filed shall be accompanied by all necessary documents including Invoice, packing list, bill of lading, import licence, Declaration under Rule 10 of the Customs Valuation Rules, 1988, OGL declaration, Chartered Engineer’s certificate (wherever applicable) etc. One separate set of essential documents like invoice, packing list, Bill of lading, importer declaration under rule 10 of Customs Valuation Rule 1988 etc. shall be enclosed.

2.5.3 The Imported cargo after destuffing will be stacked in the Import Warehouse or container yard properly segregated, under stack cards giving clear indication to which lot it belongs. The Arvind V. Joshi & Co. shall be wholly responsible for the proper stacking and safety of the cargo and will be responsible for any shortages, damages that may occur during the period when the goods are under their custody.

3. IGM verification and Noting of the Bill of Entry.

The importer / CHA shall present the Bill of Entry along with the relevant documents at the counter of IGM clerk who will carry out the IGM verification and enter the particulars of IGM in the IGM register. Thereafter the importer/CHA will handover the Bill of Entry to the Noting Clerk for making entries in the noting register.

4. Alert and licensing check

After receiving the Bill of Entry from the Noting clerk, the Alert Notice Inspector shall immediately do the “Alert Notice Check” and after satisfying himself that the goods/importers’licence are not in the suspected category shall hand over to the Appraiser or superintendent will undertake appraisement.

4.1 Procedure for Assessment

In case of First appraisement ordered by the Dy. Commissioner / Assistant Commissioner, the examination of the goods shall precede the assessment of the Bill of Entry. The Appraiser shall endorse the examination order in the Bill of Entry, taking approval from the Dy.commissioner/Assistant Commissioner of Customs. Thereafter the importer / CHA shall get the goods examined.

4.2 Examination

The Bill of Entry shall be presented to the shed Appraiser/Supdt by the Importer/CHA for physical examination of the goods. The examination shall be conducted by the examining staff after the inspection of the lot and the identification of the same with the import documents,. He will endorse the examination report in the Bill of Entry. The importer /CHA shall then present the Bill of Entry to the Appraiser / Supdt, for assessment.

4.3 After assessment of the Bill of entry by Appraiser, the importer /CHA shall present the Bill of Entry to the inspector of Customs to check the exchange rate. After this the Bill of Entry shall be put-up to the Dy.Commissioner/Asst. Commissioner of Customs for his approval.

4.4 Detachment of Bill of Entry

The Detachment Clerk having received the finalized Bill of Entry will hand it over to the importer / CHA for payment of duty. He will also ensure that the Original Bond/bank Guarantee and note sheet etc. if any are detached and kept in office record of the Department. Any formality regarding licensing etc., if required, will also be completed before handing over the Bill of Entry to the importer/CHA.

4.5 Duty payment

The Importer /CHA after having received the Bill of Entry from the detach Clerk shall pay the duty in the designated bank after getting TR – 6 challan signed by the said dealing assistant (detach clerk) . The duty is to be paid within 5 (five) days period as prescribed under Section 47 of the Customs Act, 1962. If the importer/ CHA fails to pay the duty within 5 (five) days period (from the date of return of Bill of Entry to him as under section 47 of the Customs act, 1962) importer / CHA shall obtain fresh challan for payment of duty along with interest accrued thereon. After payment of duty and interest, the duty paid challan and Bill of Entry shall be deposited at the counter of the detach Clerk and the said detach clerk will enter the particulars of payment in the relevant register/EDI system. Original Bill of Entry shall be retained by detach Clerk and remaining copies will be returned to importer / CHA who shall produce to the import shed.

4.6 Out of Charge

The Appraiser / Supdt. Of the shed shall endorse “ out of charge” after ensuring that all formalities have been completed. The “out of charge” shall be endorsed on the Duplicate Copy of the Bill of Entry. The duplicate copy of Bill of Entry shall detached by the examining officer at the shed and he will give one copy of the gate pass to the importer/CHA who will submit the same duly signed by shed appraiser/Supdt., to the CFS- M/s Arvind V. Joshi & Co. authorities for delivery of the goods on their gate pass. After giving full delivery of goods the shed appraiser/Supdt., shall send the duplicate copy of BOE to the dispatch clerk. The dispatch clerk shall then match the original and duplicate copies of the bill of entry and forward the same to the Manifest Clearance Department within two days.

4.7 Second Appraisement

In Case of second appraisement all the procedure will remain the same except prior examination of the goods before assessment. In case of second appraisement the assessment shall be completed on the basis of invoice etc. and duty shall be paid, get the goods examined exactly in the same manner as prescribed for the first appraisement procedure. If everything is found in order, the goods will be given “ out of charge” in the manner stipulated above following all other procedure till the Manifest Clearance Section.

5. Movement of empty containers out of the CFS-Arvind V. Joshi & Co.

As regards empty containers arising out of destuffing, the monitoring will be done by the Container Cell. Container leasing Companies, shippers / steamer agents will be responsible for producing proof of export of containers at the gateway port for the cancellation of the Bonds Executed in respect of empty containers. As per the requirement of the Shipping Lines the empty containers will be transported from the CFS to gate way ports or other CFS/ICD under EIR.

6. Closure of IGM

After all the goods received and delivered at the CFS under an IGM/Submanifest IGM are lawfully cleared, the IGM will be closed on the basis of duplicate copy of the Bill of Entry.

7. Uncleared goods

Attention of importer / CHA and others concerned is invited to the provision of Section 48 of the Customs Act, 1962.M/s Arvind V. Joshi & Co.CFS will bring it to the notice of the Asst/Dy Commissioner of Customs, CFS-Arvind V. Joshi & Co., all such consignments as are not cleared by the importer / CHA for home consumption / warehousing within 30 days from the date of unloading thereof i.e. receipt of the containers at the CFS- Arvind V. Joshi & Co. The Asst/Dy Commissioner will thereafter give notice to the importer to clear the goods and if this is not done within the period allowed by the Asst/Dy Commissioner, permission will be given to the custodian to auction the goods after completing the formalities as required under Customs Act 1962 in accordance with the provision of Section 48 ibid, after giving due notice to the importer.

EXPORT

8. The following procedure is prescribed for export of containerized cargo through CFS-M/s Arvind V. Joshi & Co.

8.1 Export clearance at the CFS

The exporter/CHA shall file Shipping Bills as prescribed in the Shipping Bill and Bill of Export (Form) Regulations, 1991

8.2 Noting of Shipping Bill

The exporter/CHA shall present Shipping Bill in the prescribed proforma along with all relevant documents, to the noting Section/EDI of the Export Branch of the CFS-Arvind V. Joshi & Co. In addition to the normal information given in the Shipping Bill, the exporter shall mention the Port of discharge, however, at the time of noting they may not give the container No. If the same is not available with them. But the same shall be furnished before the ‘let Export’ order is given and each container must have distinct marks and numbers.

8.3 PROCESSING OF EDI SHIPPING BILLS

The Shipping Bill of all categories like free shipping bills, drawback, DEPB, DEEC, DFIA, EPCG etc. shall be filed in the same manner at the EDI Service Centre as indicated above. After confirmation of the checklist by the exporter/CHA, the shipping bill shall be submitted in the system and it will be marked to the Appraiser/Superintendents (Export). From Apprising Officer, the S/Bs are marked for registration of goods (goods registration) except for the following categories, which shall be marked to AC/DC-

a. Shipping Bills where FOB value of the goods is more than Rs. 10 Lakhs.

b. Shipping Bills where Drawback claim is more than Rs. 1 Lakh

c. Shipping Bills having item under DEPB scheme and item FOB

d. Value more than Rs. Five Lakh or DEPB rate more than 20%

e. Shipping Bills under DEEC Scheme having FOB value more than Rs. 1 Lakh

f. Shipping Bills relating to free trade samples having value more than Rs.25,000/-

g. Or when the Appraising Officer seeks advice.

8.4 Apart from verifying the value and other particulars for assessment, the Assistant/Deputy Commissioner may call for the samples, if required for confirming the declared value or for checking classification under the Drawback Schedule. The Assistant/Deptuty Commissioner may also give any special instruction for examination of goods, if felt necessary.

8.5 The Exporters/CHAs can check up with the query counter at Service centre whether the Shiping Bill submitted by them in the system has been cleared by the Asst/Deputy Commissioner or not, before the goods are brought into the Dockyard/CFS for examination and export. In case any query has been raised by the Asst/Deputy Commissioner, the same is required to be replied through the Service Centre. The Shipping Bill will be passed by the Asst/Deputy Commissioner after all the queries have been satisfactorily replied to. The status of the Shipping Bill can also be seen on information kioskys placed adjacent to the Service Centre.

8.6 Processing of Export Documents

The customs authorities shall complete classification and assessment of export documentation at CFS-M/S Arvind V. Joshi & Co.. The Shipping Bill must be presented together with the copies of GR1 form, invoice, packing list, quality certificate, (wherever required) contract/buyer’s order etc to Noting Clerk, CFS-Arvind V. Joshi & Co.. After scrutiny, the Noting Clerk will put the stamp of ‘date of presentation’ and assign the serial number to the Shipping Bill (separately for Drawback and non-Drawback) The Inspector shall process the Shipping Bill by conduction usual prescribed checks.

8.7 Assessment

The Inspector shall pass on the Shipping Bill to the Appraiser/Supdt. (Assessment). The Appraiser/Supdt. Shall complete the assessment by carrying out all necessary checks. Further, if drawback amount is less than Rs. 1,00,000/- and no DEEC/DEPB benefit is claimed, the Appraiser/Supdt. Will process the Shipping Bill finally. If Drawback amount involved is Rs. 1,00,000/- or above, or shipment is under DEEC/DEPB scheme, the Shipping Bill shall be put up to the Dy. Commissioner/Asstt. Commissioner of Customs for finalization. Instructions contained in Board’s Circular No. 17/2000- Cus dt. 29.02.2000 in this regard should be scrupulously followed.

Therefore, the Shipping Bill shall be sent to the Noting Section for detaching the original Shipping Bill and GR1 Form. After detachment, the remaining copies of the Shipping Bill will be returned to the exporter /CHA who will acknowledge the receipt thereof. After finalization of the Shipping Bill filed under DEEC scheme, logging of DEEC will be done at CFS-Arvind V. Joshi & Co.. The logging of DEEC shall also be put up to Dy. Commissioner /Asstt. Commissioner of Customs for his verification and endorsement.

8.8 G R 1 form formalities

The exporter would be required to submit along with Shipping Bill a full set of GR1 forms. The assessing officer will verify the full export value as usual in GR1 form. The original GR1 form shall be retained by the Customs and subsequently forwarded to the Reserve Bank of India. Shipment Certificate on the duplicate copy of GR1form shall be furnished after the Customs Examination of the Export Cargo and sealing of containers by the Proper Officer of the export shed at the CFS-M/s Arvind V. Joshi & Co, with the one time bottle seal whose particulars along with Shipping Bill particulars shall be recorded in Export Seal Register. The exporter/CHA shall be handed over duplicate GR1 form which shall subsequently be presented to the bank by the exporter.

9. Arrival of goods at the CFS-Arvind V. Joshi & Co.

The Shed/docks copy of the assessed Shipping Bill shall be presented by the exporters/CHA to the Arvind V. Joshi & Co. authorities. The Arvind V. Joshi & Co. After completing their formalities arranges carting of export goods in the Export Warehouse or CY. On receipt of goods, the shed incharge of Arvind V. Joshi & Co. record landing certificate on the Shipping Bill itself. Thereafter, the Shipping Bill shall be presented to the shed Appraiser/Supdt. Of the Customs and the Examination Officer / Inspector who shall examine the goods in the presence of exporter/CHA or their authorized representative with reference to the invoice, packing list, AR – 1 form etc. They shall endorse the document like invoice, packing list etc.they shall endorsed the document like invoice packing list etc with their signature and draw samples wherever necessary in the presence of CHA/exporter representative. The examination report shall be recorded by the examining officer on the reverse of the duplicate copy and triplicate copy i.e. drawback claim copy of the Shipping Bill. The representative of the exporter/CHA shall endorse and authenticate the examination report as well as sealed representative samples, in token of examination having been done in his presence and his agreement with the examination report.

If the export consignment is received at the CFS-Arvind V. Joshi & Co. After Central Excise examination/ supervision in sealed condition, than the examining officer shall only verify the seals particular from the available records prepared by the Central Excise authorities/SEZ authorities. Such sealed containers can also be opened to examine the contents if there is doubt regarding genuines of its contents because of information/alert notice etc

9.1 The examination report of export consignment shall be countersigned by the Appraiser/Supdt. Posted in the shed who shall spervise such examination and also verify the export value declared in export document as well as on the GR1 form. Thereafter, the shed Appraiser/Supdt. of Customs shall endorse the ‘Let Export’ order on the duplicate copy of the Shipping Bill as well as on both the transference copies and drawback copy wherever applicable.

9.2 Stuffing of containers

After the “Let Export” order is given and the shipping line has nominated containers for stuffing of the cargo, the Exporter/CHA/Representative of the CHA authorities concerned at CFS-Arvind V. Joshi & Co.will obtain permission from the Appraiser/Supdt.of Customs for stuffing of containers with the cargo already examined by the Customs and allowed for export. The stuffing of the containers shall be done in the presence of the Customs officer, Exporter, Representative, shipping line representative and shed-in charge of the Arvind V. Joshi & Co. All these officers shall jointly sign the stuffing sheet prepared by M/s. Arvind V. Joshi & Co. staff, preferably on computer.

9.3 The quantity of goods stuffed and the quantity “shutout’ (if any) shall be recorded on the Shipping Bill after the stuffing of container is completed. The container shall then be duly sealed with the Customs One time keyless bottle seal. The shipping lines may also put their bottle seal on respective container. In the case of ‘shut out’ Shipping Bill shall be put up to the Assistant Commissioner of Customs for amendment on all copies of the Shipping Bill.

10 After the Customs copy of the Stuffing sheet is presented to the Supdt/Appraiser of customs, he shall endorse the same. The exporter shall prepare quadruplicate the containers wise packing list/weight specification indicating, interalia, the number of packages with marks and numbers, description and total quantity/net weight packed in each container along with corresponding Shipping Bill number. The original and duplicate copies of the Shipping Bill shall be retained at the CFS’s Customs office and the triplicate copy will be handed over to the exporter after the customs officer has given the ‘Let Export’ order. The copy shall be suitably endorsed by the Customs Officer to the effect that the goods shall be transshipped to Gateway port for onward shipment to destination outside India.

10.1 M/S Arvind V. Joshi & Co. as custodian will arrange transportation of the sealed export containers from the CFS-Arvind V. Joshi & Co. to the container yard/customs area at Gateway ports under EIR on the strength of movement permission obtained by M/S Arvind V. Joshi & Co. or its authorized agents will present one copy of the said movement permission to Inspector/Preventive Officer of customs at the Container Terminal gate of Gateway port who will verify the seal number and the container number and if found tallying with it, he will permit inward entry of the containers to the Container Yard at Gateway port. In token of having delivered the said import container in safe and sound condition to the Gateway port authorities inside the Port area, M/S Arvind V. Joshi & Co. will obtain a proper acknowledgement for the same from Gateway port authorities in the form of equipment Interchange Report (EIR) and submit documentary evidence of the same to the Supdt. (Export) at CFS-Arvind V. Joshi & Co. for his reference and record.

10.2 At Gateway port, container will be normally allowed to be exported under preventive supervision on verification of the seals, if found intact, without any further examination. However, in case the seal is found tampered with, officers at the Container Terminal gate or Container Yard at Gateway port will have the right to redirect the container to the CFS-Arvind V. Joshi & Co. for examination and further necessary action.

10.3 The Steamer Agent shall be required to file the Export Manifest in duplicate after the shipment of the goods. The transference copies of the Shipping Bill shall be sent to the container unit of the Export Department of the Gateway port Customs House, duly endorsed regarding shipment of containers on board.

10.4 The container unit of the Gateway port Customs House will then send one copy of the EGM to the Drawback Department for further action. If there is no drawback claim, the same will be sent to the Appraiser/Supdt, Incharge of the CFS for filing and closure of the EGM after audit

Attention of importer, Exporters, Custom House Agents and All other concerned is also invited to the Public Notice No. 17/2004 and 18/2004 both dated 06.07.2004 under which the procedure for Customs clearance under EDI System has been prescribed. However as the EDI connectivity at CFS-M/s. Arvind V. Joshi & Co., has not been established completely, the procedure prescribed in these two Public Notice shall be followed in so far as it is not in conflict with them. In case of any contrary provisions, the provisions of Public Notice No. 17/2004 and 18/2004 both dated 06.07.02004 shall prevail.

All the Trade Associations /Chamber of Commerce/Members of Regional Advisory Committees and Custom House Agent’s Association are requested to publicize the contents of this Public Notice among their members/constituents.

F.NO. S/20-34/2005-APPG (G)

(T. JAYARAMAN)

COMMISSIONER OF CUSTOMS,

KANDLA CUSTOMS HOUSE,

KANDLA.

To,

As per mailing list and Notice Board.