Original copy:-
This is called the customs copy. In first check procedure it contains the examination report on the back of it.
Duplicate copy:-
It is submitted in port either in container section or in break bulk section along with wharf age, NOC, Delivery order. It shows charges have been paid to customs and contain on the back, passed out of custom charges.
Triplicate copy:-
This copy is for central excise for availing certain benefits.
Quadruplicate copy:-
This copy is submitted to the bank.
Out of 5th, 6th, and 7th copies, one copy is given to the port authority. The other two copies are kept by the CHA for his record.
Types of bill of Entry:-
I. Bill of entry for home consumption II. Bill of entry for warehousing
III. Bill of entry for Ex-bond clearance for home consumption
Bill of entry for home consumption:-
This type of bill of entry is used when importer wants to take the delivery of goods on payment of custom duty.
Bill of entry for warehousing:-
This type of bill of entry is used when importer wants to warehousing the goods in custom bonded warehouse.
Bill of for ex-bond clearance for home consumption:-
This type of bill of entry is used for clearing the goods from custom bonded warehouse against warehouse bill of entry on the payment of custom duties.
Another important document that is used in import is bill of lading. It plays an important role both for the exporter and importer.
Calculation of duty in import:
Assessable value in rupees = CIF (Cost Insurance Freight) value + landing charges (1% of CIF value and H.S.S. (High Seas Sale) CIF+2%+1)
If the case is of FOB (Free on Board) then freight and insurance is to be added. If insurance is not there then 1.125% of the C & F (Cost and Freight) value is taken as insurance charges.
Duty calculation is done by CHA as per the given rate of duty for a particular product.
There are six kinds of duties, which have to be paid at the time of custom clearance in case of imports those are:
1. Basic Custom Duty 2. CVD
3. Additional cess on CVD
4. Secondary and higher cess on CVD 5. CESS
6. Custom sec & higher education cess 7. Additional Custom Duty
Let us consider that basic custom duty on the ALL ALUMINIUM SCARP is 0%, CVD 8%, and additional duty is 4%. Say basic custom duty in rupees be X, Additional custom duty be Y and CVD be Z (12.826688%)
X = 0% of assessable value
Z = Assessable value *8%(CVD)
Y = Assessable value + 4% of ASS. VAL.+Z+ CESS on CVD 2%+ SEC.&HIGHER EDU.CESS ON CVD 1%+ CUS. EDU.CESS 2+1%
CESS on CVD = 2% of Z
Total duty amount (in rupees) = X+Y+Z
CUS. EDU.CESS on Total duty =
2% of Z +EDU.CESS ON CVD+S&H EDU.CESS ON CVD
1% of Z +EDU.CESS ON CVD+S&H EDU.CESS ON CVD
Documents to be used in import:
I. Bill of lading II. Invoice
III. Certificate of origin
IV. 59- Bond warehousing bond V. Wharf age
VI. Bill of entry VII. Packing list
VIII. NOC (No Objection Certificate) IX. Delivery order
X. Treasury challan XI. Gate pass
DOCUMENTS WHICH ARE TO BE USED IN IMPORT AND EXPORT CUSTOM CLEARANCE.
A Letter of credit is a document containing guarantee of a bank to honor drafts drawn on it by an exporter, under certain conditions and up to certain amounts, provided that the beneficiary fulfills the stipulated conditions.
Packing list
Its is a detailed document provided by the exporter that spells out how many containers there are in the shipment and which merchandise is contained in each container.
Invoice
It is a document which shows the total amount of the goods and the description of goods.
Bill of lading
A generic term used to describe a document issued by the carrier to the shipper.
Mate receipt
Mate receipt is issued by the mate (assistant to the captain of the ship) after the cargo is loaded into the ship. It is an acknowledgement that the goods have been received on board the ship
Shipping bill
It is issued by the custom authority. Shipping is the main document of the basic of which the custom permission is given. After the shipping bill is stamped by custom, then only the goods are allowed to be enter to the deck. It is prepared by ED I system or manually system.
A document provided by the exporter‟s chamber of commerce that attests that the goods originated from the country in which exporter is located.
Phyto-sanitary certificate
A document provided by an independent inspection company, or the Agriculture Department of the exporting country‟s government, that attests that the goods confirm to the agriculture standard of the importing country.
Manifest
A document internal to the shipping company (the carrier) that lists all cargo onboard the transportation vehicle.
Forms AR-4/AR-4A
These forms are meant for applying for the removal of excisable goods for export by sea/post. Form AR-4 is used for applying for excise inspection at the factory and form AR-4A is used when goods are to be exported under a claim for rebate of excise duty or under bond.
Certificate of Measurement
Freight can be charged either on the basis of weight or measurement. When it is charged on weight basis, the weight declared by the overseas supplier is accepted. The certificate contains the name of the vessel, the port of destination description of goods, quantity, length, breadth, depth etc of the packages.
Shipping advice
A shipping advice is used to inform the overseas customer about the shipment of goods. There is no particular form of shipping advice. The exporter only advises his importer about the invoice number, Bill of lading / Airway bill number and date, name of the vessel with date of sailing of the vessel.
The bill entry is a document, prepared by the importer or his clearing agent in the prescribed form under bill of entry regulation, 1971, on which clearance of imported goods can be made.
Certificate of insurance
A document providing by the insurance company of the exporter that the goods are insured during their international voyage.
4. SUGGESTIONS
The custom clearance for import and export cargo is such a long procedure so it takes time to clear, so the employee must be try to make their work on time and quick.
Some of the complicated procedure in custom clearance so if we get the support of all employees it must be easy.
5. CONCLUSION
The Indian business environment is changing with the rapid growth in infrastructure and technology. With the increasing inflows of multinationals, trade has been increased, which result in stiff competition between the organizations.
Despite of the stiff competition Beekeyen freight Forwarfers pvt. Ltd known as the leading custom clearance agent, because of their effective implementation of quality management system and customer centric approach.