Procedure for Clearance of Imported Goods

1. Introduction:

1.1 In terms of the Customs Act, 1962 read with the relevant rules and regulations, imported and export goods are subjected to certain legal and procedural formalities before being permitted clearance by Customs. These requirements include the submission of prescribed documents and adherence to laid down procedures before an appropriate legal order is given by the proper officer permitting the importer/exporter to clear the goods for the intended purpose.

2. Import procedure - Bill of Entry:

2.1 Goods imported into the country attract Customs duty and are also required to confirm to relevant legal requirements. Thus, unless the imported goods are notmeant for Customs clearance at the port/airport of arrival such as those intended for transit by the same vessel/aircraft or transshipment to another Customs station or to any place outside India, detailed Customs clearance formalities have to be followed by the importers. In contrast, in terms of Section 52 to 56 of the Customs Act,1962 the goods mentioned in the IGM/Import Report for transit to any place outside India or meant for transhipment to another Customs  station in India are allowed transit without payment of duty. In case of goods meant for transhipment to another Customs station, simple transshipment procedure has to be followed by the carrier and the concerned agencies at the first port/airport of landing and the Customs clearance formalities have to be complied with by the importer after arrival of the goods at the other Customs station. There could also be cases of transshipment of the  goods after unloading to a port outside India. Here also simple procedure for transshipment  is prescribed, and no duty is required to be paid.

2.2 For goods which are offloaded at a port/airport for clearance the importers have the  option to clear the goods for home consumption after payment of duties leviable or to clear them for warehousing without immediate discharge of the duties leviable in terms of the warehousing provisions of the Customs Act, 1962. For this purpose every importer is required to file in terms of the Section 46 ibid a Bill of Entry for home consumption or  warehousing, as the case may be, in the form prescribed by regulations. The Bill of Entry is to be submitted in sets, different copies meant for different purposes and also bearing  different colours, and on the body of the Bill of Entry the purpose for which it will be used is mentioned.

2.3 The importers have to obtain an Importer-Export Code (IEC) number from the Directorate General of Foreign Trade prior to filing of Bill of Entry for clearance of imported goods. The Customs EDI System receives the IEC number online from the DGFT.

2.4 If the goods are cleared through the EDI system, no formal Bill of Entry is filed as it is generated in the computer system, but the importer is required to file a cargo declaration having prescribed particulars required for processing of the Bill of Entry for Customs clearance.

2.5 The importer clearing the goods for domestic consumption through non-EDI ports/airports has to file Bill of Entry in four copies; original and duplicate are meant for Customs, third copy for the importer and the fourth copy is meant for the bank for making remittances. Along with the Bill of Entry the following documents are also generally required:

(a) Signed invoice

(b) Packing list

(c) Bill of Lading or Delivery Order/Airway Bill

(d) GATT valuation declaration form duly filled in

(e) Importers/CHA’s declaration

(f) Import license, wherever necessary

(g) Letter of Credit, wherever necessary

(h) Insurance document

(i) Import license, where necessary

(j) Industrial License, if required

(k) Test report in case of items like chemicals

(l) DEEC Book/DEPB in original, where relevant

(m) Catalogue, technical write up, literature in case of machineries, spares or chemicals, as applicable

(n) Separately split up value of spares, components, machineries

(o) Certificate of Origin, if preferential rate of duty is claimed

2.6 While filing the Bill of Entry, the correctness of the information given therein has also to be certified by the importer in the form a declaration at the foot of the Bill of Entry and any mis-declaration/incorrect declaration has legal consequences.

2.7 Under the EDI system, the importer does not submit documents as such but submits declarations in electronic format containing all the relevant information to the Service Centre. A signed paper copy of the declaration is taken by the service centre operator for non-repudiability of the declaration. A checklist is generated for verification of data by the importer/CHA. After verification, the data is filed by the Service Centre Operator and EDI system generates a Bill of Entry Number, which is endorsed on the printed checklist and returned to the importer/CHA. No original documents are taken at this stage. Original documents are taken at the time of examination. The importer/CHA also needs to sign on the final document before Customs clearance.

2.8 The first stage for processing a Bill of Entry is termed as the noting/registration of the Bill of Entry vis-à-vis the IGM filed by the carrier. In the manual format, the importer has to get the Bill of Entry noted in the concerned Noting Section which checks the consignment sought to be cleared having been manifested in the particular vessel and a Bill of Entry number is generated and indicated on all copies. After noting, the Bill of Entry gets sent to the appraising section of the Custom House for assessment functions, payment of duty etc. In the EDI system, the noting aspect is checked by the system itself, which also generates Bill of Entry number.

2.9 After noting/registration the Bill of Entry is forwarded manually or electronically to the concerned Appraising Group in the Custom House dealing with the commodity sought to be cleared. Appraising Wing of the Custom House has a number of Groups dealing with commodities falling under different Chapter Headings of the Customs Tariff and they take up further scrutiny for assessment, import permissibility angle etc.

3. Assessment under the manual mode:

3.1 The basic function of the assessing officer in the appraising groups is to determine the duty payable on imported goods taking due note of any exemptions or benefits claimed under different export promotion schemes or other exemption notification. The assessing officer also has to check whether there are any restrictions or prohibitions on the imported goods and if they require any permission/license/permit etc. Assessment of duty essentially involves proper classification of the imported goods as per the Customs Tariff Act, 1975 having due regard to its Rules of Interpretations, Chapter and Sections Notes etc., and determining the duty liability thereon. It also involves correct determination of value where the goods are assessable on ad valorem basis. For this, the assessing officer has to take note of the invoice and other declarations submitted alongwith the Bill of Entry in support of the declared value, and adjudge whether the same is acceptable, or needs to be redetermined. The determination of value is to be done in terms of Section 14 of the Customs Act, 1962 and the valuation rules issued thereunder, the case law and various instructions on the subject. The assessing officer also takes note of the contemporaneous values and other information on valuation available with the Custom House.

3.2 Where the appraising officer is not clear about the description of the goods from the document or has doubts about the proper classification, which may require detailed examination of the nature of the goods or testing of its samples, he may give an examination order in advance of finalisation of assessment including order for drawl of representative sample. This is done generally on the reverse of the original copy of the Bill of Entry which is presented by the authorized agent of the importer to the examining staff in the Docks/Air Cargo Complexes where the goods are got examined in the presence of the authorized agent.

3.3 On receipt of the examination report, the group appraising officer assesses the Bill of Entry, indicating the final classification, valuation, and various duties such as basic, countervailing, anti-dumping, safeguard duty etc. that are leviable. Thereafter the Bill of Entry goes to Assistant Commissioner/Deputy Commissioner for confirmation depending upon certain value limits and sent to computist who calculates the duty amount taking into account the rate of exchange at the relevant date as provided under Section 14 of the Customs Act, 1962.

3.4 After the assessment and calculation of the duty liability the importer’s representative has to deposit the duty with the treasury or the nominated banks. Thereafter, the goods can be taken delivery of from the custodian. Since the goods have already been examined for finalization of classification or valuation, no further examination/checking by the dock appraising staff is required at the time of giving delivery and the goods can be taken delivery after taking appropriate orders and payment of dues to the custodians, if any.

3.5 In most cases, the appraising officer assessees the goods on the basis of information and details furnished to the importer in the Bill of Entry, invoice and other related documents including catalogue, write-up etc. The appraising officer also determines whether the goods are permissible for import or are subject to any restrictions/prohibitions. Thus the appraising officer may allow payment of duty and delivery of the goods on what is called second check/appraising basis in case there are no restriction/prohibition. In this method, the duties as determined and calculated are paid in the Custom House/Bank and appropriate order is given on the reverse of the duplicate copy of the Bill of Entry and the importer or his agent after paying the duty submits the goods for examination in the import sheds in the docks etc., to the examining staff. If the goods are found to be as declared, and no other discrepancies/mis-declarations etc., are detected, the importer or his agent can clear the goods after the shed appraiser gives out of charge order.

3.6 Wherever the importer is not satisfied with the classification, rate of duty or valuation as may be determined by the appraising officer, he can seek an assessment order. An appeal against the assessment order can be made to appropriate appellate authority within the time limits and in the manner prescribed.

4. EDI assessment:

4.1 In the EDI system of assessment of Bill of Entry, the cargo declaration is transferred to the assessing officer in the groups electronically and assessed thereon with regard to all the parameters as given above for manual process. However, in EDI system, all the calculations are done by the system itself. In addition, the ED system supplies useful information for calculation of duty, for example, when a particular exemption notification is accepted, the system itself gives the extent of exemption under that notification and calculates the duty accordingly. Similarly, it automatically applies relevant rate of exchange in force while calculating. Thus, no computist is required in EDI system. Also, in the event the assessing officer needs any clarification from the importer, he may raise a query, which is printed at the service centre, and the importer replies to it through the service centre.

4.2 After assessment, a copy of the assessed Bill of Entry is printed in the service centre. The supporting documents are normally examined at the time of examination of the goods. Final Bill of Entry is printed after ‘out of charge’ is given by the Custom Officer.

4.3 In EDI system, in certain cases, the facility of system appraisal is available. Under this process, the declaration of importer is taken as correct and the system itself calculates duty which is paid by the importer. In such case, no assessing officer is involved.

4.4 Also, a facility of kiosk is provided in certain major Customs stations through which the status of documents filed through EDI systems could be ascertained.

5. Examination of goods:

5.1 All imported goods are required to be examined for verification of correctness of description given in the Bill of Entry. However, ordinarily only a part of the consignment is selected on random selection basis and examined. Also, the goods may be examined prior to assessment in case the importer does not have complete information with him at the time of import and requests for examination of the goods before assessing the duty liability or, if the Customs Appraiser/Assistant Commissioner feels the goods are required to be examined before assessment. This is called First Check Appraisement. The importer has to request for First Check Appraisement at the time of filing the Bill of Entry or at data entry stage giving the reason for the same. The Customs Appraiser records on original copy of the Bill of Entry the examination order and returns the Bill of Entry to the importer/CHA for being taken to the import shed for examination of the goods. Thereafter, Shed Appraiser/Dock Examiner examines the goods as per examination order and records his findings. In case appraising group has called for samples, he forwards sealed assessment order. An appeal against the assessment order can be made to appropriate appellate authority within the time limits and in the manner prescribed.

 4. EDI assessment:

 4.1 In the EDI system of assessment of Bill of Entry, the cargo declaration is transferred to the assessing officer in the groups electronically and assessed thereon with regard to all the parameters as given above for manual process. However, in EDI system, all the calculations are done by the system itself. In addition, the EDI system supplies useful information for calculation of duty, for example, when a particular exemption notification is accepted, the system itself gives the extent of exemption under that notification and calculates the duty accordingly. Similarly, it automatically applies relevant rate of exchange in force while calculating. Thus, no computist is required in EDI system. Also, in the event the assessing officer needs any clarification from the importer, he may raise a query, which is printed at the service centre, and the importer replies to it through the service centre.

 4.2 After assessment, a copy of the assessed Bill of Entry is printed in the service centre. The supporting documents are normally examined at the time of examination of the goods. Final Bill of Entry is printed after ‘out of charge’ is given by the Custom Officer.

 4.3 In EDI system, in certain cases, the facility of system appraisal is available. Under this process, the declaration of importer is taken as correct and the system itself calculates duty which is paid by the importer. In such case, no assessing officer is involved.

 4.4 Also, a facility of kiosk is provided in certain major Customs stations through which the status of documents filed through EDI systems could be ascertained.

 5. Examination of goods:

 5.1 All imported goods are required to be examined for verification of correctness of description given in the Bill of Entry. However, ordinarily only a part of the consignment is selected on random selection basis and examined. Also, the goods may be examined prior to assessment in case the importer does not have complete information with him at the time of import and requests for examination of the goods before assessing the duty liability or, if the Customs Appraiser/Assistant Commissioner feels the goods are required to be examined before assessment. This is called First Check Appraisement. The importer has to request for First Check Appraisement at the time of filing the Bill of Entry or at data entry stage giving the reason for the same. The Customs Appraiser records on original copy of the Bill of Entry the examination order and returns the Bill of Entry to the importer/CHA for being taken to the import shed for examination of the goods. Thereafter, Shed Appraiser/Dock Examiner examines the goods as per examination order and records his findings. In case appraising group has called for samples, he forwards sealed

 8. Amendment of Bill of Entry:

 8.1 Whenever mistakes are noticed after submission of documents, amendments to the Bill of Entry is carried out with the approval of Deputy/Assistant Commissioner. The request for amendment may be submitted with the supporting documents. For example, if the amendment of container number is required, a letter from shipping agent is required. On sufficient proof being shown to the Deputy/Assistant Commissioner amendment in Bill of Entry may be permitted after the goods have been given out of charge i.e. goods have been cleared.

 9. Prior Entry Bill of Entry:

 9.1 For faster clearance of the goods, Section 46 of the Customs Act, 1962 allows filing of Bill of Entry prior to arrival of goods. This Bill of Entry is valid if vessel/aircraft carrying the goods arrives within 30 days from the date of presentation of Bill of Entry. The importer is required to file 5 copies of the Bill of Entry and the fifth copy is called Advance Noting copy. The importer has to declare that the vessel/aircraft is due within 30 days and present the Bill of Entry for final noting as soon as the IGM is filed. Advance noting is available to all imports except for Into-Bond Bill of Entry and also during certain special period.

 9.2 Often goods coming by container ships are transferred at intermediate ports (like Colombo) from mother vessel to smaller vessels called feeder vessels. At the time of filing of advance noting Bill of Entry, the importer does not know as to which vessel will finally bring the goods to Indian port. In such cases, the name of mother vessel may be filled in on the basis of the Bill of Lading. On arrival of the feeder vessel, the Bill of Entry may be amended to mention names of both mother vessel and feeder vessel.

 10. Bill of Entry for bond/warehousing:

 10.1 A separate form of Bill of Entry is used for clearance of goods for warehousing. All documents, as are required to be attached with a Bill of Entry for home consumption are also required to be filed with the Bill of Entry for warehousing and this Bill of Entry is assessed in the same manner and duty payable is determined. However, since duty is not required to be paid at the time of warehousing of the goods, the purpose of assessing the goods at this stage is only to secure the duty in case the goods do not reach the warehouse. The duty is paid at the time of ex-bond clearance of goods for which an Ex-Bond Bill of Entry is filed. The rate of duty applicable to imported goods cleared from a warehouse is the rate in-force on the date of filing of Ex-Bond Bill of Entry.

 11. Risk Management System:

11.1 The Board has introduced the ‘Risk Management System’ (RMS) in major Customs locations where the EDI System (ICES) is operational. The implementation of the RMS is one of the most significant steps in the ongoing Business Process Re engineering of the Customs Department. RMS is based on the realization that ever increasing volumes and complexity of international trade and the deteriorating global security scenario present formidable challenges to Customs and the traditional approach of scrutinizing every document and examining every consignment will simply not work. Also, there is a need to reduce the dwell-time of cargo at ports/airports and to reduce the transaction costs in order to enhance the competitiveness of Indian businesses, by expediting release of cargo where compliance is high. Advances in Information Technology offer an opportunity to address these challenges through an effective RMS whose primary objective is to strike an optimal balance between facilitation and enforcement and to promote a culture of compliance. RMS is also expected to improve the management of the Department’s resources by enhancing efficiency and effectiveness in meeting stakeholder expectations and bring the Customs processes at par with the best international practices. [Refer Circular No. 43/2005-Cus., dated 24-11-2005]

 11.2 With the introduction of the RMS, the practice of routine assessment, concurrent audit and examination is discontinued and the focus is on quality assessment, examination and Post Clearance Audit of Bills of Entry selected by the RMS.

 11.3 Bills of Entry and IGMs filed electronically in ICES through the Service Centre or the ICEGATE are transmitted by ICES to the RMS. The RMS processes the data through a series of steps and produces an electronic output for the ICES. This output determines whether a particular Bill of Entry will be taken-up for action (appraisement or examination or both) or be cleared after payment of duty and Out of Charge directly, without any assessment and examination. Also where necessary, RMS provides instructions for Appraising Officer, Examining Officer or the Out-of- Charge Officer. It needs to be noted that the appraising and examination instructions communicated by the RMS have be necessarily followed by the proper officer. It is, however, possible that in a few cases the proper officer might decide to apply a particular treatment to the Bill of Entry which is at variance with the instruction received from the RMS. This may happen due to risks which are not factored in the RMS. Such a course of action shall however be taken only with the prior approval of the jurisdictional Commissioner of Customs or an officer authorized by him for this purpose, who shall not be below the rank of Addl./Joint Commissioner of Customs, and after recording the reasons for the same. A brief remark on the reasons and the particulars of Commissioner’s authorization should be made by the officer examining the goods in the departmental comments section in the EDI system.

 11.4 The system of concurrent audit has been abolished and replaced by a Post- Clearance Compliance Verification (Audit) function. The objective of the Post Clearance Verification Programme is to monitor, maintain and enhance compliance levels, while reducing the dwell time of cargo. The RMS will select the Bills of Entry for audit, after clearance of the goods, and these selected Bills of Entry will be directed to the audit officers for scrutiny by the EDI system. In case any possible short levies are noticed, the officers will issue a Consultative Letter mentioning the grounds for their view to the importers/CHAs. This is intended to give the importers an opportunity to voluntarily comply and pay the duty difference if they agree with the department’s point of view. In case there is no agreement, the formal processes of

demand notices, adjudication etc. would follow. It may also be noted that the auditors are specifically instructed to scrutinize declarations with reference to data quality and advise the importers/CHAs suitably where the quality of their declarations is found deficient. Such advice is expected to be followed by the trade and monitored by the local risk managers.

 11.5 The facilitation schemes viz., Self-assessment scheme, Fast Track / Green Channel, Accelerated Customs Clearance etc., are phased out with the implementation of the RMS and the Accredited Clients Programme.

 12. Risk Management Division:

 12.1 With a view to streamline the operations of the RMS, a Risk Management Division (RMD) has been created under the Directorate General of Systems with the following charter of functions:

 (i) The RMD has the overall responsibility for designing, implementing and managing RMS using various risk parameters and risk management tools to address risks facing Customs, i.e., the potential for non-compliance with Customs and allied laws and security regulations, including risks associated with the potential failure to facilitate international trade.

 (ii) The RMD will suggest assessment and examination in respect of consignments perceived to be risky and facilitate the remaining ones.

 (iii) The RMD is responsible for collecting and collating information and developing an intelligence database to effectively implement the RMS and also carry out effective risk assessment, risk evaluation and risk mitigation techniques. It will update and maintain risk parameters in relation to the trade, commodities and all stakeholders associated or involved with the supply chain logistics.

 (iv)The RMD is the nodal agency for Accredited Client’s Programme (ACP). It will maintain a list of accredited clients in the RMS and closely monitor their compliance standards.

 (v) The RMD will closely interact with all Custom Houses, Directorate of Revenue Intelligence (DRI) and Directorate of Valuation (DOV) to enable it to effectively address national risks. The RMD shall also work in close coordination with Directorate General of Audit (DG Audit). The local risks will be largely addressed by RMD in co-operation with the Custom Houses. Further, the RMD will also closely interact with DOV on all matters pertaining to the Valuation Risk Assessment Module (VRAM) of RMS. DOV will also supply the list of Most Sensitive Commodities with value bands, the list of valid valuation alerts and the list of Unusual Quantity Code (UQC) at agreed intervals.

 (vi) The RMD will review the performance of the RMS in terms of reviewing the various targets/interventions inserted by the Local Risk Management (LRM) Committee, make objective assessment of the effectiveness of such insertions, and ensure that the performance is consistent with the objective laid down. For this purpose, the RMD shall provide necessary advice and guidance to Custom Houses as and when required, which shall be followed. The RMD will also review the extent of facilitation being provided to the trade and offer necessary guidance to the officers in the Custom Houses with a view to providing appropriate facilitation and also ensuring compliance.

 (vii) The RMD will coordinate and liaise with other Government Departments (OGDs), in order to deal with risks relating to the compliance requirements under relevant Allied Acts.

(viii) The RMD will work in close coordination with NACEN in developing training manuals and other documentation necessary for implementing RMS and also work out regular training schedules for officers responsible for the RMS in major Customs locations.

 13. National Risk Management (NRM) Committee:

 13.1 A National Risk Management (NRM) Committee headed by DG (Systems) has been established to review the functioning of the RMS, supervise implementation and provide feedback for improving its effectiveness. The NRM Committee includes representatives of Directorate General of Revenue Intelligence (DGRI), Directorate General of Valuation (DGOV), Directorate General of Audit (DG Audit), Directorate General of Safeguards (DGS) and Tax Research Unit (TRU). The NRM Committee meeting is to be convened by RMD at least once every quarter. The following are some of the functions of the NRM Committee:

 (i) Review performance of the RMS including implementation of ACP and PCA.

(ii) Review risk parameters and behaviour of important risk indicators.

(iii) Review economic trends, policies, duty rates, exemptions, market data etc. that adversely impact Customs functions and processes and suggest remedial action thereof.

 14. Local Risk Management (LRM) Committee:

 14.1 A Local Risk Management (LRM) Committee headed by Commissioner of Customs has been constituted in each Custom House / Air Cargo Complex / ICD, where RMS is operationalised. The LRM Committee comprises the Additional / Joint Commissioner in charge of Special Investigation and Intelligence Branch (SIIB), who is designated as the Local Risk Manager and includes the Additional / Joint Commissioner in charge of Audit and a nominee, not below the rank of a Deputy Director from the regional / zonal unit of the DRI, and a nominee, not below the rank of Deputy Director from the Directorate of Valuation, if any. The LRM Committee meets once every month and some of its functions are as follows:

 (i) Review trends in imports of major commodities and valuation with a view to identifying risk indicators

 (ii) Decide the interventions at the local level, both for assessment and examination of goods prior to clearance and for PCA.

 (iii) Review results of interventions already in place and decide on their continuation/modification or discontinuance etc.

 (iv) Review performance of the RMS and evaluate the results of the action taken on the basis of the RMS output.

 (v) Send periodic reports to the RMD, as may be prescribed by the RMD, with the approval of the Commissioner of Customs.

 15. Accredited Clients Programme:

 15.1 The Accredited Clients Programme (ACP) has been introduced with the objective of granting assured facilitation to importers who have demonstrated capacity and willingness to comply with the laws administered by the Customs. This programme replaces all existing schemes for facilitation in the Customs stations where EDI and RMS is implemented. Importers registered as “Accredited Clients” form a separate category to which assured facilitation is provided. Except for a small percentage of consignments selected on random by the RMS, or cases where specific intelligence is available or where a specifically observed pattern of noncompliance is required to be addressed, Accredited Clients are allowed clearance on the basis of self assessment without examination of goods as a matter of course.

 15.2 Considering the likely volume of cargo imported by the Accredited Clients, Custom Houses may create separately earmarked facility/counters for providing Customs clearance service to them. Commissioners of Customs are also required to work with the Custodians for earmarking separate storage space, handling facility and expeditious clearance procedures for these clients.

15.3 The RMD administers the ACP and maintains the list of Accredited Clients centrally in the RMS. The importers who have been granted the status of Accredited Clients are required to maintain high levels of compliance, which is closely monitored by the RMD in co-ordination with the Commissioners of Customs. Where compliance levels fall, the importer is at first informed for improvement and in case of persistent non-compliance, the importer may be deregistered under the ACP.

15.4 In order to ensure that there is no misuse of the program by imposters (persons who assume the Accredited Client’s name and identity), the Accredited Clients should file Bills of Entry using digital signatures. Additionally, all Bills of Entry must be filed through the ICEGATE facility and duty in respect of these consignments paid though such Accredited Clients’ bank account at the designated bank.

 15.5 Eligibility criteria for importers to get ACP status:

 (i) They should have imported goods valued at Rs. Ten Crores [assessable value] in the previous financial year; or paid more than Rs. One Crore Customs duty in the previous financial year; or, in the case of importers who are also Central Excise assesses, paid Central Excise duties over Rs. One Crore from the Personal Ledger Account in the previous financial year, or they should be recognized as ‘status holders’ under the Foreign Trade Policy.

 (ii) They should have filed at least 25 Bills of Entry in the previous financial year in one or more Indian Customs stations.

 (iii) They should have no cases of Customs, Central Excise or Service Tax, as detailed below, booked against them in the previous three financial years:

 (a) Cases of duty evasion involving mis-declaration/misstatement/ collusion / willful suppression / fraudulent intent whether or not extended period for issue of SCN has been invoked.

 (b) Cases of mis-declaration and/or clandestine/unauthorized removal of excisable / import / export goods warranting confiscation of said goods.

 (c) Cases of mis-declaration/mis-statement/collusion/willful suppression/fraudulent intent aimed at availing CENVAT credit, rebate, refund, drawback, benefits under export promotion/reward schemes.

 (d) Cases wherein Customs/Excise duties and Service Tax has been collected but not deposited with the exchequer.

 (e) Cases of non-registration with the Department with intent to evade payment of duty/tax.

 (iv) They should not have any cases booked under any of the Allied Acts being implemented by Customs.

 (v) The quality of the submissions made by the applicants to Customs should be good as measured by the number of amendments made in the Bills of Entry in relation to classification of goods, valuation and claim for exemption benefits. The number of such amendments should not have exceeded 20% of the Bills of Entry during the previous financial year.

 (vi) They should have no duty demands pending on account of non-fulfillment of export obligation.

 (vii) They should have reliable systems of record keeping and internal controls and their accounting systems should conform to recognized standards of accounting. They are required to provide the necessary certificate from their Chartered Accountants in this regard.

 15.6 The ACP accreditation is initially valid for a period of one year and would be renewable thereafter upon a review of the compliance record of the Accredited Client. [Refer Circulars No. 22/97-Cus., dated 4-7-1997; No.63/97-Cus., dated 21-11-1997; No.42/2005-Cus., dated 24-11-2005; and No.43/2005-Cus dated 24.11.2005]

 

 

 

 

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