7/27/2019 Ocean Import

1/28

WELCOMEOceanImport

CustomsClearance

at a glance

RAGHAVANSASIKUMAR

7/27/2019 Ocean Import

2/28

Introduction to Customs Duty

In ancient times the visiting foreign

merchants used to offer gifts to the kingas a custom. This customary offer

gradually took the shape of import duty

7/27/2019 Ocean Import

3/28

Types of duty

Customs duty

Charged upon commoditieson their importation into or exportation

from the country

7/27/2019 Ocean Import

4/28

Types of duty contd.

Excise duty

Charged upon activity namely theproduction or manufacture of goods

eg. Live animalsArtificial graphite Vs Natural graphite

7/27/2019 Ocean Import

5/28

Octroi duty

This duty is on goods entering aspecified area

7/27/2019 Ocean Import

6/28

Anti Dumping duty

Imposed on articles exported from any

country into the country of import at less

than its normal value.

eg. Certain chemicals from China

7/27/2019 Ocean Import

7/28

Safeguard duty

If an article is imported in increased

quantities which can cause serious injury to

the domestic industry, central government

can impose safeguard duty.

7/27/2019 Ocean Import

8/28

National calamity contingent duty

This is collected to serve the people

suffering due to drought.

eg.

Chewing tobacco

Motor cars

7/27/2019 Ocean Import

9/28

Educational Cess

This duty is levied to raise fund foreducation.

7/27/2019 Ocean Import

10/28

CAN RESTRICTED GOODS BE IMPORTED

7/27/2019 Ocean Import

11/28

Restricted Goods

Can be imported after obtaining

LicenseCCP ( Customs clearance permit )

Through specific public notices

7/27/2019 Ocean Import

12/28

RG contd.

eg.

Chewing tobacco

Parliamentary secretary to the treasurer

Growth hormone

Ministry of health & Ageing

ODS

Ministry of environment and heritage

7/27/2019 Ocean Import

13/28

Prohibited goods

Goods subjected to prohibition - Banned

eg. CocaineBrown sugar

Snake skin

7/27/2019 Ocean Import

14/28

Provisional assessment

Importer is unable to produce any

document or furnish any information

Goods are subjected to test and result

awaited

7/27/2019 Ocean Import

15/28

Final assessment

If the required documents , test

results are produced then the goods

assessed provisionally, can be assessed

finally.

7/27/2019 Ocean Import

16/28

Payment of duty under protest

If the importer disputes on the rates ofduty or valuation approved

No time limit to apply for refund

7/27/2019 Ocean Import

17/28

ADC Clearance

Import of cosmetics and drugs are to be released by Additional

drug controller as per the drugs & cosmetics act 1948.

Required docs.

Form X license Batch release certificate

Certificate of analysis

Goods should carry batch number & expiry date

If we dont have the above mentioned docs, then we can

execute an LG and clear the goods, but goods should not

be sold.

7/27/2019 Ocean Import

18/28

Special valuation branch

If the consigner and consignee are related the b/e would be referred

to SVB

They will verify whether relationship has influenced price

Verify the books of accounts and issue an order that the value can

be accepted for assessmentDocs required:

PD Bond

1% EDD

Extra duty deposited can be claimed later once the SVB order is

finalised.

7/27/2019 Ocean Import

19/28

Re-import

When goods are imported

Identity should be established

Duty payable on freight insurance, to &

fro ,and also on repair chargesDocuments required are:

Export certificate

Complete correspondence exchanged

Shipping ( Export documents)

Import documents

7/27/2019 Ocean Import

20/28

Used Goods

First check

CE examination

Few years back, goods above 10 years old were

considered restricted goods & now goods of

age can be imported under OGC

7/27/2019 Ocean Import

21/28

Kaccha b/e

Sensitive goods

Clearance first formalities next

eg. Magazines

Life saving drugs

7/27/2019 Ocean Import

22/28

Exhibition Goods

Can be cleared w/o payment of duty

Bond has to be executed stating that the goods will be re-exported

within a span of six months

Docs required:ITPOIndian trade promotion organisation

Authorization letter from the center, where the exhibition is

being conducted

Simple Bond and BG

7/27/2019 Ocean Import

23/28

Defence goods

Notification: 39/96

Zero Duty

Docs required:Consignee P/o to shipper

Defence P/o to consignee

Duty exemption certificate with validity

7/27/2019 Ocean Import

24/28

Research Goods

Scientific and technical instrument imported by public funded

research institutes.

Basic duty 5%

Docs required:

DSIR registration certificate

Self declaration from the importer stating goods

imported for research only

Form B Essentiality certificateP/o should tally with Form B

7/27/2019 Ocean Import

25/28

Bonding

Section 59 of customs act 1962 provides for bonding

of goods. Double duty bond to be executed.

Fund allocationSpace constraints

Awaiting re-export order

Awaiting license

7/27/2019 Ocean Import

26/28

Ex bond

To clear the goods from bonded

warehouse ex-bond b/e is filed.

Goods can be cleared in part on payment

of applicable duty

7/27/2019 Ocean Import

27/28

EPCG

Export promotion capital goods

Capital Goods can be imported under EPCG.

The Rate of duty has been reduced to 3% from 5 %recently.

License has to be registered in the port of clearance toavail duty benefit.

The documents required for license registration :

Original license

Bank guaranteeSimple bond

Affidavit

7/27/2019 Ocean Import

28/28

THANKING YOU

RAGHAVAN SASIKUMAR