Custom Manual, 2018 Customs Manual 2018 Central Board of Indirect Taxes & Customs (Updated till 31.12.2018) i Custom Manual, 2018 ii Custom Manual, 2018 Index Chapter No. Topic Page No.(s) Chapter 1 Overview of Customs Functions 1-11 1. Introduction 1 2. Statutory provision for levy of Customs duty 1 3. Ease of doing business 2 4. Control and regulatory provisions 6 5. Role of Custodians 6 6. Obligations of carriers 7 7. Customs preventive control 8 8. Customs clearance of cargo 9 9. Smuggling and other violations and penal provisions 10 10. Appellate remedies 11 11. Passenger processing 11 12. Import /Export by post/courier 11 13. Citizen Charter 11 Chapter 2 Arrival of Conveyances and Related Procedures 12-19 1. Introduction 12 2. Conveyance to call only at notified Customs ports /airports 12 Power to board conveyance, to question and to demand 3. 12 documents 4. Delivery of Arrival manifest or Import Manifest or Import Report 12 5. Person filling the manifest to be registered 12 6. Amendments of IGM 15 7. Penal liability 16 8. Exclusion from IGM of items originally manifested 16 9. Enclosures to Import General Manifest 16 iii Custom Manual, 2018 Chapter No. Topic Page No.(s) 10. Procedure for filing IGM at EDI Custom Houses 17 11. Filing of Stores List 17 12. Entry Inwards and unloading and loading of goods 17 13. Other liabilities of carriers 18 Chapter 3 Procedure for Clearance of Imported and Export Goods 20-33 1. Introduction 20 2. Import procedure – Bill of Entry 20 3. Self-Assessment of imported and export goods 21 4. Examination of goods 22 5. Execution of bonds 23 6. Payment of duty 23 7. Amendment of Bill of Entry 23 8. Prior Entry for Bill of Entry 23 9. Bill of Entry for bond/ warehousing 24 10. Risk Management System in Import 24 11. Risk Management System in Export 25 12. Risk Management Division 26 13. National Risk Management (NRM) Committee 27 14. Local Risk Management (LRM) Committee 27 15. Authorized Economic Operator Scheme 28 16. Export procedure - Shipping Bill 29 17. Waiver of GR form 29 18. Arrival of export goods at dock 29 19. Customs examination of export goods 29 20. Examination norms 29 21. Drawal of samples 30 22. Stuffing / loading of goods in containers 30 23. Amendments 31 iv Custom Manual, 2018 Chapter No. Topic Page No.(s) 24. Drawback claim 31 25. Export General Manifest 32 26. Electronic Declarations for Bills of Entry and Shipping Bills 32 27. 24x7 Customs Clearance Facility 32 28. Sealing of export goods- electronic sealing facility 32 Chapter 4 Classification of Goods 34-36 1. Introduction 34 2. Methodology of classification 34 Chapter 5 Classification/Assessment of Projects Imports, Baggage and Postal 37-41 Import 1. Introduction 37 2. Project imports 37 3. Registration of contracts 38 4. Clearance of goods after registration 39 5. Finalization of contract 40 6. Baggage 40 7. Postal imports for personal use 40 Chapter 6 Customs Valuation 42-49 1. Introduction 42 2. Tariff value 42 3. Valuation of imported/export goods in general 42 4. Methods of valuation of imported goods 43 5. Transaction value 43 6. Valuation factors 44 7. Cases where transaction value may be rejected 45 8. Provisional clearance of imported goods 46 9. Valuation of imported goods in case of related party transaction 46 10. Methods of valuation of export goods 48 v Custom Manual, 2018 Chapter No. Topic Page No.(s) 11. Rights of appeal 49 Chapter 7 Provisional Assessment 50 1. Introduction 50 2. Conditions for provisional assessment 50 3. Finalization of provisional assessment 50 Chapter 8 Import/Export Restrictions and Prohibitions 51-65 1. Introduction 51 2. Legal provisions governing restrictions/prohibitions 51 Prohibitions/restrictions under Foreign Trade Policy /other Allied 3. 52 Acts Prevention of Food Adulteration Act, 1954 & Food Safety and 4. 52 Standards Authority Act, 2006 5. Labelling of the goods imported into India 55 6. The Livestock Importation Act, 1898 56 Destructive Insects & Pests Act, 1914, PFS Order,1989 and Plant 7. 57 Quarantine (Regulation of Import into India ) Order, 2003 Standards of Weights and Measures (Packaged Commodities) 8. 58 Rules, 1977 Drugs and Cosmetics Act, 1940 & Drugs and Cosmetics Rules, 9. 58 1945 10. Import of hazardous substances 60 11. Clearance of imported metal scrap 61 12. International Standards for Phytosanitary Measures (ISPM-15) 64 13. Export of Leather 65 14. Compliance of mandatory India Quality Standards(IQS) 65 Compliance of provisions of the Steel & Steel Products (Quality 15. 65 Control) Order, 2012 Chapter 9 Warehousing 66-77 1. Introduction 66 2. Legal provisions 66 vi Custom Manual, 2018 Chapter No. Topic Page No.(s) 3. Appointment of Public Warehouses 66 4. Appointment of Private Warehouses 66 5. Appointment of Special Warehouses 67 6. Cancellation of licences 67 7. Warehousing Bond 68 8. Permission for removal of goods for deposit in a warehouse 69 9. Period for which goods may remain warehoused 69 10. Extension of warehousing period 69 11. Interest for storage beyond permissible period 69 12. Waiver of interest 70 13. Owner’s right to deal with warehoused goods 70 14. Transfer of goods from one warehouse to another 70 15. Clearance of warehoused goods for home consumption 71 16. Clearance of warehoused goods for export 72 17. Allowance in case of volatile warehoused goods 73 18. Maintenance of records in relation to warehoused goods 74 19. Recovery of duty from Bonded warehouses 74 20. Cancellation and return of warehousing bond 75 Manufacture and other operations in relation to goods in a 21. 75 warehouse Chapter 10 Transshipment of Cargo 78-98 1. Introduction 78 Transshipment of imported containerized cargo from gateway 2. 78 port to another port/ICD/CFS in India 3. Duty free import of containers 81 Transshipment of imported containerized cargo from gateway 4. 82 port to a foreign port 5. Transshipment from gateway port to SEZ 84 6. Timely issuance of transshipment permit 85 vii Custom Manual, 2018 Chapter No. Topic Page No.(s) Automated movement of containerized cargo from gateway 7. 85 ports to hinterland – SMTP 8. Movement of export cargo from port/ICD/CFS to gateway port 86 9. Movement of export cargo from one port to another by rail 87 Export of container cargo from ICDs/CFSs to Bangladesh and 10. 87 Nepal through LCSs 11. Procedure for movement of goods under TIR Carnets 88 12. Transshipment of cargo by air 90 13. Bonded trucking facility 92 14. Carriage of domestic cargo on international flights 95 Movement of domestic courier bags on domestic segments of 15. 96 international flights Movement of imported goods from a port direct to CFS of 16. 96 another Customs station Chapter 11 Consolidation of Cargo 99-103 1. Introduction 99 2. Procedure for consolidation of import cargo 99 3. Procedure for consolidation of export cargo 100 4. International transshipment of LCL containers at Indian ports 101 Chapter 12 Merchant Overtime Fee 104-105 1. Introduction 104 2. Levy of overtime fee 104 3. Procedure for posting of officers on overtime basis 105 Expansion of 24x7 Customs clearance and clarification of levy of 4. 105 MOT charges in CFS attached to 24x7 ports Chapter 13 Procedure for Less Charge Demand 106-110 1. Introduction 106 2. Legal provisions 106 Proper officer for the Sections 17 and 28 of the Customs Act, 3. 106 1962 viii Custom Manual, 2018 Chapter No. Topic Page No.(s) 4. Adjudication proceedings 108 Chapter 14 Customs Refunds 111-119 1. Introduction 111 2 Legal provisions 111 3. Relevant dates for submission of a refund application 112 4. Processing of refund claim 112 5. Unjust enrichment 113 6. Interest on delayed refund 114 7. Expeditious disposal of refund applications 114 8. IGST Refund 116 Chapter 15 Detention and Release/Storage of Imported/Export Goods 120-123 1. Introduction 120 Guidelines for expeditious Customs clearance/ 2. 120 provisional release Guidelines for provisional release of seized imported goods 3. pending adjudication under Section 110 of the Customs Act, 122 1962 Chapter 16 Import and Export through Courier 124-133 1. Introduction 124 2. Categories of goods allowed import through courier 124 3. Category of goods allowed export through courier 125 4. Import and export of gems and jewellery 125 5. Procedure for clearance of import goods 125 6. Procedural formalities for clearance of export goods 126 7. Examination norms for goods imported or exported by courier 127 8. Transhipment of goods 128 9. Disposal of uncleared goods 128 10. Registration of Authorized Courier 128 11. Obligation of Authorized Courier 129 ix Custom Manual, 2018 Chapter No. Topic Page No.(s) 12. Outsourcing/Sub-letting 130 13. De -registration and forfeiture of security 130 14. Courier electronic clearance procedure 130 15. KYC and other facilitations 132 Chapter 17 Import and Export through Post 134-141 1. Introduction 134 2. Legal provisions 134 3. Clearance of Letter Mail Articles 134 4. Importability of dutiable items through post 135 5. Import of gifts through post 135 6. Import of samples through post 136 7. Import of Indian and Foreign Currencies by post 136 8. Procedure in case of postal imports 136 9. Legal provisions and exemptions in case of postal exports 138 10. Procedure in case of postal exports 139 11. Procedure for claiming Drawback on exports through post 139 12. Drawback in respect of goods re-exported through post 140 Export of postal goods under Reward Schemes under Foreign 13. 140 Trade Policy 14. Re-export of partial consignment not allowed 140 15. Procedure for e-commerce exports through Post 141 Chapter 18 Import of Samples 142-144 1.