CUSTOMS PREVENTIVE MANUAL (CENTRAL)

VOLUME I (GENERAL)

CHAPTER EIGHT

IMPORTS

CLEARANCE

PRELIMINARY
The provisions relating to Customs clearance of Imported goods and Export goods have been
outlined in Chapter VII of the Customs Act, 1962. However, the provisions of that chapter do not apply to
the Baggage and Goods Imported / Exported by Post, as special provisions therefor has been made in
separate Chapter under the Customs Act.
The provisions regulating the Arrivals / Departures of the conveyances carrying Imported / Export
goods and unloading / loading of the same have been discussed in the previous Chapters of this Manual.
This Chapter of the Manual deals with the provisions for clearance of Imported goods. The
procedures for clearance of Export Goods, Baggage on Import / Export thereof and clearance of goods
Imported / Exported by Post have been discussed later in the respective Chapters of this Manual.
Section 45(1) of the Customs Act, 1962, prescribes that all imported goods shall remain in the

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custody of the person approved by the Commissioner of Customs for this purpose, until they are cleared
for home consumption, warehousing or transshipment. Sub-section (2) of the Section 45 of the Act

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mandates that, the custodian of the goods shall keep an account of the goods received by them and shall
furnish a copy thereof to the proper officer. Also, the custodians shall not remove or deliver the said
imported goods unless the proper officer has issued a written order to that effect.
Section 45 (3) of the Customs Act, 1962, outlines an important provision that if any imported

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goods are pilfered after unloading thereof in a customs area while in the custody of the person referred to
in Section 45(1) of the Act, that person shall be liable to pay appropriate duty on such goods.
Once the unloading of the Imported goods is complete, the same are taken charge of and remain
in the custody of the Port / Airport authorities pending examination and clearance by the Customs
authorities. Similarly, the Export goods are also kept in or near the Port / Airport premises for Customs

clearance before export.

The procedures involved in the clearance of Imported goods for home consumption or other wise,

and of Export goods, is of vital importance as this entails the process of collection of revenue and

implementation of Customs laws- especially the assessment of goods and collection of Customs duty,
verification of importability / exportability of goods and procedures prescribed therefor as per the Export /
Import policy in force.

IMPORTED GOODS
As per the definition in Section 2(25) the Customs Act,1962, imported goods means any goods
brought into India from a place outside India but does not include goods which have been cleared for
home consumption. So, any goods which are brought into India ( including the territorial waters of India )
become imported goods and on which duties of Customs are leviable.
IMPORT CLEARANCE
The broad procedure for clearance of imported goods through Customs is outlined below :The imported goods usually fall into four broad categoriesa)

those which are intended for home consumption i.e. to be used within the country either for
sale or for manufacture of other goods, and,

b)

those intended for warehousing.

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c)

those intended for Transhipment to any foreign port or other Indian ports, and

d)

which remain on board for transit to other stations in the same conveyance.

In these paragraphs, the clearance of imported goods for home consumption have been
discussed. The subject of clearance of goods imported for warehousing, goods in transit or transhipment
has been dealt with in the respective Chapters of this Manual.

Procedure for clearance of Imported Goods

After the imported goods have been unloaded and taken charge of by Port / Airport authoritiesacting as custodians, the Steamer Agents or Freight Agents intimate the consignees of the arrival of their
goods. A Bill of Lading / Delivery Order is issued by them to the consignees after collecting requisite
dues.
The importer of the goods, on receipt of the intimation & the required documents from the
Steamer Agents / Freight Agents, present a Bill of Entry, either himself or through authorised Custom
House Agents, to the Import department of the Custom House. The receiving clerk in the Import
department assigns a running serial no. with date to the Bill of Entry and then passes it on to the Noting

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clerk. The Noting clerk compares the particulars declared in the Bill of Entry with the corresponding
details in the Import Manifest and verifies the required licences, if any, as produced. He then enters the
importers details against the corresponding entry in the Import Manifest and Import Manifest No. & other

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details in the Bill of Entry.

Thereafter, the importer presents the Bill of Entry to the concerned Group of the Appraising
Department in the Custom House for assessment. The Appraising Groups in the Custom House are

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formed on the basis of commodities as described in different Chapters of the Import Tariff of the Customs
Tariff Act, 1975.

In the Appraising Group, the concerned Appraiser scrutinizes the Bill of Entry in relation to
statistical requirements, classification of goods, rate of duty applicable, correctness of value and quantity
declared, etc., vis--vis invoices and other documents submitted alongwith the Bill of Entry and gives an

purpose of assessment.

order on the Bill of Entry to the field staff for any physical examination or drawing of any samples for the

There are two kinds of orders for physical examination of goods etc. which can be -

a ) before payment of duty, called First Check procedure, and,

b ) after the payment of duty, called Second Check procedure.
a ) First check In this method, the Group Appraiser, after scrutiny of the Bill of Entry and other related
documents, passes an order on the Bill of Entry for physical inspection / examination, weighment,
drawing of samples, etc., of goods, in order to determine the classification, value, etc., of the same. The
Bill of Entry is then taken to the Shed Appraiser, where the imported goods have been stored, who, in
compliance of the order, examines the goods with the help of Examiners. The Shed Appraiser puts his
examination report on the Bill of Entry and it is referred back to the concerned Group in the Custom
House. The Group Appraiser, in the light of the report of the Shed Appraiser, completes the assessment
and the Bill of Entry is handed over to the importer for payment of duty in the Cash Department. After the
duty is paid and other requirements are met an out of charge order is endorsed on the Bill of Entry by
the concerned Group Appraiser. Thereafter, the Bill of Entry with out of charge order is submitted to the
Port / Airport authorities who give the delivery of the goods to the importer or his agent and the goods are
removed out of Port / Airport premises through approved Gates.
b) Second check In second check procedure, the Group Appraiser, after scrutinising the B/E and other
documents assesses the goods and determines the duty payable, on the basis of declarations made and

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the importer is allowed to pay the duty so assessed. The Group Appraisers then forward the B/E to the
Shed Appraiser with an order for physical examination / inspection of the goods, etc., thereon.
The Shed Appraiser thereafter, examines / inspects the subject goods in accordance with the
orders endorsed by the Group Appraiser and gives his report on the Bill of Entry. If no discrepancy is
found, the Shed Appraiser gives an Out of Charge order on the Bill of Entry and then the goods are
removed from Port / Airport premises.
If any discrepancy is found in the particulars of the goods in relation to the declarations made, the
Bill of Entry is referred back to the concerned Group, alongwith Shed Appraisers report, for further action.
More often than not, the Clearance of imported Goods is resorted to the Second check method in
order to avoid delay.
Now a days in most of the Custom Houses, the records of details mentioned in the Bill of Entry
and various other endorsements made on it are recorded and maintained electronically in various
sections of Custom House.
Further, many Custom Houses has now been equipped with the necessary infrastructure to
process the Bill of Entry and other documents/procedures electronically, for the clearance of imported

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goods. The same has been discussed in the Chapter Electronic Data Interchange of this Manual.
The Bill Of Entry

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As discussed in the earlier paras, the Bill of Entry is the most important document in the process
of clearance of imported goods from the admission stage till final clearance stage.
The Bill of Entry is the single document that initiates the procedure for clearance of Imported

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goods and passes through various sections of the Custom House and the Docks, in the process. It
contains not only the declarations, made by the importer but also various observations, notings, reports,
etc., on it made in different sections of the Custom House and Docks.
Section 46 of the Customs Act, 1962, makes it mandatory for the importer of any goods, other
than goods in transit or for transshipment to file a Bill of Entry for clearance of goods for home
consumption or warehousing.

A Bill of Entry under this Section may be presented at any time after the delivery of the Import

(i)

The other provisions envisaged in this Section are

(ii)

Manifest or Import Report.

The Commissioner of Customs is empowered to permit in special circumstances the presentation
of a Bill of Entry even before the delivery of the Import Manifest. This may facilitate quick
clearance of goods even if the vessels Agent has been negligent in not presenting the Manifest
promptly.
(iii)

The particulars to be mentioned in a Bill of Entry have not been specified in the clause but will be
prescribed in the Regulations.

(iv)

Except where the proper officer so permits, a Bill of Entry shall be for all the goods included in the
relevant Bill of Lading. Since an importer is required to make a true declaration, he cannot at the
same time be asked to make a declaration which corresponds with what is contained in the
Import Manifest, over which he has no control.

(v)

As per amendment brought by Section 8 of Finance Act of 1995 in sub-section (3) of Section 46of
the Customs Act, 1962, the Bill of Entry can now be noted 30 days in advance before the delivery
of Import General Manifest. The period has been increased from 7 days to 30 days considering
the development of EDI and new liberalisation policy. This amendment has been brought in order
to decrease the port congestion and to facilitate quick clearance on arrival of the goods.

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(vi)

Sub-clause (4) of the Section 46 requires the importer to produce the invoice, if any, in support of
the particulars furnished by him in the Bill of Entry.

(vii)

Sub-clause (5) permits the proper officer of Customs to allow substitution or supplementation of
the Import Manifest if the interest of revenue is not prejudicially affected and if there was no
fraudulent intention.

(viii)

This section along with Section 15 quantifies the liability for payment of duty on imported goods.
The crucial date for this purpose is the date on which the Bill of Entry is presented.
The assessment under the Customs Act is governed by Section 12 which is the charging
Section for the Customs Duties on goods Imported into or Exported from India. The valuation of
the goods is accepted in terms of Section 14. Hence, Section 46 is a procedural Section requiring
filing of Bill of Entry for assessment. The duty on such Bill of Entry is calculated in terms of
Section 15. Therefore, Section 15(1) (a) links with Section 46 for date of determination of rate of
duty and tariff valuation of imported goods. Reading the two Sections together, the rate and date
of determination of duty on goods entered for home consumption is decided which is the date on
which a Bill of Entry is filed under Section 46. Further the exchange rate for the purpose of

Advance Notice of Bill of Entry before delivery of I.G.M.

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calculation of CIF value is taken on the date of filing Bill of Entry under section 46.

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Kindly refer to the amended provisions of Sec. 46(3) of the Customs Act, 1962 which provide that
Bill of Entry may be presented even before the delivery of Import Manifest, if the Vessel or Aircraft by
which the goods have been shipped for importation, is expected to arrive within 30 days from the date of

2.

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such presentation.

The Custom Houses were not clear about the procedure to be followed in case of advance Bill of

Entry. The matter was examined in Board in consultation with Commissioners in Conference and
representatives of Federation of Freight Forwarders Association, Mumbai Custom House Agents
Association and Air Cargo Agents Association. Board had decided that the following procedures may be
followed in this regard.

The importers desirous of availing the above facility should submit application alongwith the

3.

advance Bill of Entry (five copies) to the Import Department. The 5th copy (additional copy) will be called

Advance Noting copy. Alongwith Advance Bill of Entry the importer/CHA will produce copy of Bill of
lading/AWB and invoice issued by the supplier and other documents required for assessment. They will
affix following declaration with the original Bill of Entry.
We wish to clear the goods on arrival of the vessel. We request that our Bill of Entry be
processed without waiting for the manifest. The vessel is due on .. We shall formally
present the Bill of Entry for noting as soon as the Import Manifest is filed. In case the Steamer Agent fails
to deliver the IGM to the Import Department within 30 days from the date of advance noting of Bill of
Entry, or the goods in question are not found to be listed in the import manifest we shall surrender
advance noted Bill of Entry to the Import Department for cancellation and shall present fresh Bill of Entry
under Sec. 46 of the Customs Act, 1962 after the delivery of Import Manifest in the Custom House.

Signature of the authorised person

4.

Copy of Bill of Lading/Air Way Bill & Invoice may be accepted provided the same are certified as

correct by the importers.

5.

The Office Superintendent in Import Department will verify if all the documents are in order and

the dealing clerk will put Advance Noting stamp on all copies of Bill of Entry indicating running serial no.
of Advance Noting Register. Thereafter he shall enter the relevant date on the systems and generate the

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Thoka number and data for the subject Bill of Entry. He shall put the Thoka Number and date on all the
copies of the Bill of Entry.
6.

After the Thoka Number has been assigned, the Bill of Entry shall be forwarded to the Appraising

Group for assessment. After the completion of assessment by Group Appraiser, the Bill of Entry shall be
audited by the concurrent Audit Section and all other formalities including counter signature by Assistant
Commissioner wherever required, will be completed. The Group Appraiser shall also make assessment
on the 5th copy of the Bill of Entry, which will be forwarded by group to Import Department.
7.

After delivery of the IGM by the Shipping Agent in the Import Department, the Bill of Entry shall

again be presented to the Import Department alongwith all documents in original, which were not given
with the advance copy of Bill of Entry for entering IGM No., Date of entry Inwards, Line No. etc. Then the
Advance Bill of Entry shall be noted in the IGM by the Import Department, they will also make proper
endorsement on the 5th copy of the Bill of Entry. The other copies of the Bill of Entry shall thereafter be
forwarded to the Concurrent Audit Section for endorsement that there is no change in the rate of duty.
However, if there is any change in the rates of duty, the concurrent Audit Section shall return such Bill of
Entry to the dealing group Appraiser for re-assessment.
If the final entry of IGM is not made within 30 days from the date of presentation of Bill of Entry,

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8.

the Bill of Entry will have to be surrendered to the Import Department for cancellation. After cancellation,
necessary endorsement to this effect will be made in the corresponding entry of Advance Noting

9.

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Registers.

It shall be ensured that all Bills of Entry noted in advance in anticipation of IGM, are again

presented either for noting against the IGM or for cancellation, in case the IGM of the vessel is not

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delivered within 30 days or the goods are not covered by the manifest. It will be the responsibility of the
Office Superintendent of the Import Department to see that every Bill of Entry noted under this facility is
properly accounted for.
10.

The above facility will also be available in case of Bill of Entry for warehousing, 100% EOU, Duty

Exemption Schemes, etc.

11.

Noting on the basis of IGM of mother vessel

Now a day a large number of containers are transhipped at intermediate ports by the mother

vessel to feeder vessels. Such feeder vessels move quite frequently between intermediate port & Indian

ports. The name of feeder vessels is not known to the importer in India till last moment. In such cases the
advance noting of Bill of Entry will be allowed on the basis of master Bill of Lading of mother vessel. On
arrival of feeder vessel, amended Bill of Entry shall contain the name of master vessel as well as feeder
vessel. The computer software may be modified suitably to accommodate both the names.
12.

Levy of interest on duty amount

In terms of Section 47 (2) of the Customs Act, 1962 the importer is liable to pay interest on duty

amount in case they fail to pay the import duty within seven days from the date on which Bill of Entry is
returned to them for payment of duty.
In case of Bill of Entry filed under Advance Noting, the interest liability will start on completion of
seven days from the date on which Bill of Entry is returned for payment of duty to importer/CHA after no
change in duty is endorsed by Concurrent Audit Section.
13.

Production of documents
Wherever the goods have been imported against L/C, the importers would provide bank-attested

invoice before clearance of goods.

14.

Rate of exchange
In terms of proviso clause to section 14, the price is calculated with reference to rate of exchange

as in force on the date on which Bill of Entry is presented under section 46. The legal position in this

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regard remains unchanged.

The Rate of Exchange applicable is as in force on the date of 1st presentation of Bill of Entry
whether on final entry basis or prior entry basis or advance noting.
15.

Substitution of Bill of Entry

Some of the Custom Houses are not allowing substitution of advance Bill of Entry for home

consumption to Bill of Entry for warehousing in case of advance noting of Bill of Entry. In terms of section
46 (5) of Customs Act, 1962 substitution of Bill of Entry for home consumption or Bill of Entry for
warehousing or vice-versa is allowed provided the interests of revenue are not prejudicially affected. The
substitution of Bill of Entry may be dealt as per the above-mentioned provision in case of advance noting
Bill of Entry also.
[ Boards Circular No. 22 / 97- Cus. dated 4 /7/ 1997 ]

Types of Bill of Entry

There are following four types of Bills of Entry for different class of imported goods. The colour of
the Bill of Entry mentioned refers to the colour of the paper on which the same is printed: White Bill of Entry.

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(i) For goods imported for Home Consumption

(ii) For goods imported for Bonding (warehousing) or manufacturing in Bond Yellow Bill of
(iii) For Ex-bond clearance of the imported goods

Entry.

Green Bill of Entry.

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(iv) For goods imported for Defence and for Government Stores

Pink Bill of Entry.

The importer is required to file the Bill of Entry in five copies. Each copy has a different colour
coding for printing of the contents, as below-

Original copy of Bill of Entry, which is printed in Black letters and is retained by Customs after

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(i)

Duty is paid on the goods.

(ii)

Duplicate copy of Bill of Entry which is printed in Blue letters and is collected at the time of
delivery of the goods at the gate of Port / Warehouse / Air Cargo Complex either by Customs or
by Port / Airport authorities and subsequently dispatched to Custom House.

(iii)

Triplicate copy of Bill of Entry which is printed in Purple letters. This copy is importers copy on

Quadruplicate copy of Bill of Entry which is printed in Green letters and is meant for verification of

(iv)

which CENVAT endorsement is made.

(v)

Foreign Exchange remittance by the RBI or for Export promotion.

Fifth copy of Bill of Entry which is printed in Pink letters and is used by Port / Airport authorities to
make endorsement for forwarding of goods for examination and for collecting port charges.

Electronic Bill of Entry: - With the advancement of computer technology, many Custom Houses have
been furnished with elaborate network of computers and other electronic gadgets. With the help of these,
it has now become possible to process Electronic Bills of Entry. The data pertaining to the details of Bill
of Entry and related documents is stored electronically in the EDI Service Centre of the Custom House.
As and when required, the information can be transmitted to the designated EDI Centres in the Ports /
Warehouses / ICDs / Air Cargo Complexes etc., after processing. At the places of storage of the imported
goods, the Bill of Entry can be generated and printed with the help of data furnished by the importers in
relation to goods imported by them. This system provides faster and easier clearance of Imported goods.
Further, this type of electronic generation of Bill of Entry has eliminated the use of various types of
coloured combined bill of entry.
The procedures related to processing Electronic Bills of Entry and clearance of Imported goods
through them have been described in Chapter Electronic Data Interchange of this Manual.

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Bill of Entry (Forms) Regulations, 1987In exercise of the powers conferred by Section 157, read with Section 46 of the Customs Act,
1962 (52 of 1962), and in supersession of the Bill of Entry (Forms) Regulations, 1976, except as respects
things done before such supersession, the Central Board of Excise and Customs hereby makes the
following regulations, namely:
Short title and commencement. - (1) These regulations may be called the Bill of Entry

1.

(Forms) Regulations, 1987.

(2) They shall come into force on the 1st day of January, 1990.
2. Definitions. In these regulations, unless the context otherwise requires, (a) form means a form specified in the Appendix to these regulations;
(b) goods means any goods, other than goods intended for transit or transhipment.
3. Form of Bill of Entry.- A Bill of Entry to be presented by an importer of goods for home
consumption or for warehousing or for ex-bond clearance for home consumption shall be in
Form I or Form II or Form III, as the case may be.
[ Notifn. No. 3/88 Cus. (N. T.) dtd 14-1-1988 as amended by G.S.R. 625 (E), dated 15th June, 1989 ]

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FORM I

Custom House Agents Name,

Address and licence No.
___________________________________________________________________________________
Port Code S = Sea Prior Entry Import Dept. S. No. and Customs House Importer Importers Name
A = Air

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Bill of Entry for Home Consumption

Stamp

Date

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L = Land

Agent Code

Code

and Address

___________________________________________________________________________________
Vessels Rotation No.
Name

and Date

Line

Port of

Number

Country of Origin Country of Consignment Bill of Lading

Shipment

(if different) and Code

and code

Date

___________________________________________________________________________________

RATE

AMOUNT

Basic
..
Auxiliary
(Rs.)

Basic
.
Auxiliary

(10)

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(4)

(5)

(Rs.)

C.E.T.
Item
.
Exemption
Notification
No. and
year

(11)

(12)

(6)

Value for
purpose of
Sec. 3
Customs Tariff
Act, 1975
(Column 9 +
Column 11)
(Rs.)
(13)

(7)

(8)

Assessable
Value under
Sec. 14
Customs

Nature of
duty code

ADDITIONAL
DUTY

Customs
Tariff
heading

Exemption

w
(3)

Unit Code

Marks and
Numbers
(2)

Serial No.

No. and
Description
(1)

CUSTOMS
DUTY

Description.
/R.I.T.C.
No. (Give
details of
each class
separately)

GOODS

Weight
Volume
Number etc.

QUANTITY

PACKAGES

(9)

RATE

AMOUNT

Basic

Auxiliary

Basic
.
Auxiliary

TOTAL
DUTY
(Column 11
+ Column
15)

(Rs.)

(Rs.)

(Rs.)

(14)

(15)

(16)

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TOTAL AMOUNT OF DUTY

(IN WORDS)

Gross Weight TOTAL NUMBR OF PACKAGES

(IN WORDS) ..

RUPEES
TOTAL
(By pin-point typewriter)
Import Clerk
Sl. Invoice
Freight Insurance Currency Exchange Loading/
No. Value
Code
Rate
Local
(Foreign
Agency
Currency)
Commission
FOB/C and
F/C and I / CIF
_________________________________________________________
(1)
(2)
(3)
(4)
(5)
(6)
(7)
_________________________________________________________
Total
Landing
Assessable Value
Value
Charges
(In Rupees)
(In Rupees)
_________________________________________________________
(8)
(9)
(10)
(11)
_________________________________________________________

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Miscellaneous
Charges

(Declaration to be signed
by the Custom House
Agent)
1. I/We declare that the
contents of this Bill of
Entry for goods
imported against Bill of
Lading No
dated.are in
accordance with the
Invoice No. ..dated
.and other
documents presented
herewith.
2. I/We declared that I/We
have not received any
other document or
information showing a
different price, value,
quantity or description
or the said goods and
that if at any time
hereafter I/We receive
any documents from
the importer showing a
different state of facts,
I/We will immediately
make the same known
to the [Commissioner of
Customs].

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1
2
3
4
5

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Total

_________________________________________________________

Debit P.D.
No.

Stamp of
collection/
FREE No. and
Date

N.B.- Where a declaration

in this form is made by the
Custom House Agent a
declaration in the
prescribed form shall be
furnished by the importers
of the goods covered by
this Bill of Entry.

.Date.

Signature of the Custom

House Agent

T.C. Licence or C.C.P. No. and date/

Part and S. No./ O.G.L. No. Exemption
No. and value debited to Licence/C.C.P.
(In case of Letter of Authority, Name of
Person to whom issued, No. and Date)

Licence(s) Registered

Licence(s) Audited

DECLARATION
(To be signed by an Importer)

With Custom*
House Agent

1. I/We declare that the contents of invoice(s) No. (s)dated.of

M/sand of other documents relating to the goods covered by the aid
invoice(s) and presented herewith are true and correct in every respect.
OR

Without Custom*

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2. I/We declare that the contents of this Bill of Entry for goods imported against

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164

House Agent

Bill of Lading No. dated .. are in accordance with the invoice No.
.. dated.and other documents presented herewith. I/We also
declare that the contents that the contents of the above mentioned invoice(s)
and documents are true and correct in every respect.
3. I/We declare that goods covered by the bill of entry have been imported on
outright purchase/consignment account.
4. /We am/are not connected with the suppliers/manufactures as: (a) Agent/distributor/indentor/Branch/subsidiary/concessionaire, and
(b) Collaborator entitled to the use of the trade mark, patent or design,
(c) Otherwise than as ordinary importers or buyers.
5. I/We declare that the method of invoicing has not changed since the date on
which my/our books of accounts and/or agreement with the suppliers were
examined previously by the Customs House(s).

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*Strike out whichever is inapplicable.

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Signature of Importer..

(FOR CUSTOM HOUSE USE)

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Documents presented with bill of entry

Date of receipt in:

Check here additional documents required

Appraising group /
Central Exchange Unit.

2. Packing List

Daily list
Revenue Posting

1. Invoice ..

3. Bank Draft

4. Insurance Memo/Policy

5. Bill of Lading or
Delivery Order

Trade return I.A.D.

C.R.A.D. M.C.D. Key
Register

M.C.D. Manifest
Posting
(On duplicate Copy)

Passed out of Customs charge

6. Import Licence/Custom
Clearance Permit
7. Certificate of Origin .
8. .
Proper Officer
9.
10. .
(Actual designation to be indicated)

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FORM II
Bill of Entry for Warehousing
Custom House Agents Name,
Address and licence No.
___________________________________________________________________________________
Port Code S = Sea Prior Entry Import Dept. S. No.and Customs House Importer Importers Name
A = Air

Stamp

Date

Agent Code

Code

and Address

L = Land
___________________________________________________________________________________

Vessels Rotation No.

Name

and Date

Line

Port of

Number

Country of Origin Country of Consignment Bill of Lading

Shipment

and code

(if different) and Code

Date

_________________________________________________________________________________

AMOUNT

Basic
..

Basic
.

Auxiliary
(Rs.)

Auxiliary
(Rs.)

(10)

(11)

(12)

Gross Weight TOTAL NUMBR OF PACKAGES

(IN WORDS) ..

(13)

(7)

Assessable
Value
under Sec.
14

Customs
Tariff
heading

Exemption

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Value for
purpose of
Sec. 3
Customs Tariff
Act, 1975
(Column 9 +
Column 11)
(Rs.)

Nature of
duty code

(6)

ADDITIONAL
DUTY

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(5)

C.E.T.
Item
.
Exemption
Notification
No. and
year

RATE

Description
.
R.I.T.C.
No. (Give
details of
each class
separately)

(4)

Weight
Volume
Number etc.

(3)

CUSTOMS
DUTY

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(2)

GOODS

Unit Code

(1)

SerialNo.

Marks and
Numbers

QUANTITY

No. and
Description

PACKAGES

(8)

(9)

RATE

AMOUNT

Basic

Basic
.

Auxiliary

Auxiliary

(Rs.)

(Rs.)

(Rs.)

(14)

(15)

(16)

TOTAL
DUTY
(Column 11
+ Column
15)

TOTAL AMOUNT OF DUTY

(IN WORDS)

RUPEES
TOTAL
(By pin-point typewriter)
Import Clerk

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166

Sl. Invoice
Freight Insurance Currency Exchange Loading/
No. Value
Code
Rate
Local
(Foreign
Agency
Currency)
Commission
FOB/C and
F/C and I / CIF
_________________________________________________________
(1)
(2)
(3)
(4)
(5)
(6)
(7)
_________________________________________________________
Miscellaneous
Charges

Total
Landing
Assessable Value
Value
Charges
(In Rupees)
(In Rupees)
_________________________________________________________
(8)
(9)
(10)
(11)
_________________________________________________________

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1
2
3
4
5

(Declaration to be signed
by the Custom House
Agent)
1. I/We apply for leave to
deposit the goods
covered by the Bill of
Entry in the
warehouse being
public/private
warehouse
appointed/Licensed
under the Customs Act,
1962.
2. I/We declare that the
contents of this Bill of
Entry for goods
imported against Bill of
Lading No
dated.are in
accordance with the
Invoice No. ..dated
.and other
documents presented
herewith.
3. I/We declared that I/We
have not received any
other document or
information showing a
different price, value,
quantity or description
or the said goods and
that if at any time
hereafter I/We receive
any documents from
the importer showing a
different state of facts,
I/We will immediately
make the same known
to the [Commissioner of
Customs].

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Total

T.C. Licence or C.C.P. No. and date/.

To be ware- Bond registered
Part and S. No./ O.G.L. No. Exemption.
Housed
under No. of
No. and value debited to Licence/C.C.P. within .. (Date)
(In case of Letter of Authority, Name of
days from
Person to whom issued, No. and Date)
the operation
of actual
removal from
docks
Supdt. Bond -

Bond Clerk

Licence(s) Registered

Licence(s) Audited

Assistant Commissioner/Bond Deptt.

Date of Deposit of
Goods in the wareHouse.

N.B.- Where a declaration

in this form is made by the
Custom House Agent a
declaration in the
prescribed form shall be
furnished by the importers
of the goods covered by
this Bill of Entry.
Signature of the Custom
House Agent

Preventive Officer

DECLARATION
(To be signed by an Importer)
With Custom*
House Agent

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1. I/We apply for leave to deposit the goods covered by this Bill of Entry in the
warehouse being a public/private warehouse appointed/
licensed under the Customs Act, 1962.
2. I/We declare that the contents of invoice(s) No. (s)dated.of
M/sand of other documents relating to the goods covered by the aid
invoice(s) and presented herewith are true and correct in every respect.
OR

CUSTOMS PREVENTIVE MANUAL (CENTRAL)

VOLUME I (GENERAL)

167

Without Custom*
House Agent

2. I/We declare that the contents of this Bill of Entry for goods imported against
Bill of Lading No. dated .. are in accordance with the invoice No.
.. dated.and other documents presented herewith. I/We also
declare that the contents that the contents of the above mentioned invoice(s)
and documents are true and correct in every respect.
3. I/We declare that I/We have not received and do not know of any other
documents or information showing a different price, value (including local
payments, whether as commission or otherwise), quantity or description of the
said goods and that if at any time hereafter, I/We discover any information
showing a different state of facts, I/We will immediately make the same known
to the Commissioner of Customs.
4. I/We declare that goods covered by the bill of entry have been imported on
outright purchase/consignment account.

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5. /We am/are not connected with the suppliers/manufactures as: (d) Agent/distributor/indentor/Branch/subsidiary/concessionaire, and
(e) Collaborator entitled to the use of the trade mark, patent or design,
(f) Otherwise than as ordinary importers or buyers.
6. I/We declare that the method of invoicing has not changed since the date on
which my/our books of accounts and/or agreement with the suppliers were
examined previously by the Customs House(s).

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Signature of Importer..

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*Strike out whichever is inapplicable.

(FOR CUSTOM HOUSE USE)

Documents presented with bill of entry

Date of receipt in:

Check here additional documents required

1. Invoice ..

2. Packing List

Appraising group
Central Exchange Unit.
Daily list
Revenue Posting

3. Bank Draft

Trade return

4. Insurance Memo/Policy

I.A.D. /C.R.A.D.
M.C.D. key register

5. Bill of Lading or
Delivery Order

6. Import Licence/Custom
Clearance Permit
7. Certificate of Origin

M.C.D. Manifest
Posting

ON DUPLICATE COPY
Permitted removal
Escorted ..packages
To Bonded warehouse
to
under Customs
Bonded Warehouse
control
at ..

8.
9.
10.

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Proper Officer

Escort Officer

(Actual designation to be indicated)

CUSTOMS PREVENTIVE MANUAL (CENTRAL)

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168

FORM III
Bill of Entry for Ex-Bond Clearance
For Home Consumption
Custom House Agents Name,
Address and licence No.
___________________________________________________________________________________
Port Code S = Sea Prior Entry Bond Dept. S. No.and Customs House Importer Importers Name
A = Air

Stamp

Date

Agent Code

Code

and Address

L = Land
___________________________________________________________________________________
Vessels Rotation No.
Name

and Date

Line

Port of

Number

Country of Origin Country of Consignment Bill of Lading

Shipment

and code

(if different) and Code

Date

___________________________________________________________________________________

(4)

(5)

(6)

(7)

Assessable
Value under
Sec. 14
Customs Act,

Nature of
duty code

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ADDITIONAL
DUTY

Customs
Tariff heading

Exemption
Notification
No. and year

Description
.
R.I.T.C. No.
(Give details
of each class
separately)

Weight Volume
Number etc.

SerialNo.
(3)

CUSTOMS
DUTY

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(2)

GOODS

(8)

(9)

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(1)

Unit Code

QUANTITY

Marks and
Numbers

No. and
Description

PACKAGES

AMOUNT

(Rs.)

Exemption
Notification
No. and
year

Value for
purpose of
Sec. 3
Customs Tariff
Act, 1975
(Column 9 +
Column 11)
(Rs.)

Basic
..

Basic
.

(11)

(12)

(13)

RATE

Auxiliary

Auxiliary

(Rs.)
(10)

C.E.T.
Item
.

RATE

AMOUNT

Basic

Basic
.

Auxiliary

Auxiliary

(Rs.)

(Rs.)

(Rs.)

(14)

(15)

(16)

TOTAL
DUTY
(Column 11 +
Column 15)

Gross Weight TOTAL NUMBR OF PACKAGES

(IN WORDS) ..

TOTAL AMOUNT OF DUTY

(IN WORDS)

Import Clerk

RUPEES
TOTAL
(By pin-point typewriter)

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CUSTOMS PREVENTIVE MANUAL (CENTRAL)

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169

Sl. Invoice
Freight Insurance Currency Exchange Loading/
No. Value
Code
Rate
Local
(Foreign
Agency
Currency)
Commission
FOB/C and
F/C and I / CIF
_________________________________________________________
(1)
(2)
(3)
(4)
(5)
(6)
(7)
_________________________________________________________
Total
Landing
Assessable Value
Value
Charges
(In Rupees)
(In Rupees)
_________________________________________________________
(8)
(9)
(10)
(11)
_________________________________________________________

Name and address of the

warehouse where the
goods are kept in deposit

Miscellaneous
Charges

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1
2
3
4
5

(Declaration to be signed
by the importer/Custom
House Agent)
1. I/We declare that the
particulars given in
this Bill of Entry are
true.
2. I/We apply for
permission to clear
the goods from the
Customs Bonded
Warehouse subject
to the provisions of
the Customs Act,
1962.

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Total
________________________________________________________
Stamp of
Debit P.D.
Date of deposit
Entered in Warehouse
in Warehouse
register .
A/c. No.
collection
Vide Page No.
Item No. ..

Warehouse Officer.

Date of removal of goods

from the Warehouse

(FOR CUSTOM HOUSE USE)

Date of Presentation to
Warehouse Officer.

Date of receipt in:

Documents presented with bill of entry

Check here additional documents required
1. Invoice

Bond Department

2. Packing List

Appraising Group

3. Certificate of Origin

Warehouse Officer
Central Exchange Unit

4. Insurance Memo/Policy

Revenue Posting

5..

Trade Return

6. ..

I.A.D.

(On Duplicate copy only)

7. ..

C.R.A.D.

Passed out of customs charge

M.C.D. key register

M.C.D. Manifest
Posting

Proper Officer
(Actual designation to be
indicated)

Station
Date ..
Signature of
Importer

Custom
House Agent

st
[ C.B.E. and C. Notification No. 396-Cus., dated 1 August, 1976 ]

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CHARGING OF INTEREST
Further, Section 47 of the Customs among other things stipulates that if the proper officer is
satisfied that the goods entered for home consumption are not prohibited goods and the importer has
paid duty and other dues chargeable, the proper officer may make an order permitting clearance of the
goods, for home consumption.
The Section also stipulates that if the importer fails to pay import duty within 7 days from the date
on which the B/E has returned to him for payment of duty, he shall pay interest at the rate fixed by the
Board, on such duty till the date of payment of the said duty.
However, Section 49 of Customs Act, 1962, empowers Asstt. Commissioner of Customs, to
permit the goods entered for home consumption to be stored in a public or private warehouse pending
clearance if he is satisfied that the goods cannot be cleared within a reasonable time. However, such
goods shall not be deemed to be warehoused goods for the purpose of the Customs Act.
UNCLEARED / UNCLAIMED IMPORTED GOODS
Many a times it is observed that the imported goods landed at a customs station are either not

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cleared within stipulated time or are relinquished title thereof, by the importer. Section 48 contains the
provision to deal with such goods. The Section stipulates that such goods may be sold by (the
custodians) after notice to the importer and with the permission of the proper officer, if such goods are not

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cleared for home consumption or warehoused or transshipped within 30 days from the date of unloading
thereof or within such further time as the proper officer may allow.

The Section further prescribes that perishable goods & hazardous goods may be sold at any time

Central government.

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and also that arms & ammunition may be sold at such time and place and in the manner directed by the

The following guidelines have been issued by the Ministry/Board in respect of disposal of
unclaimed/uncleared cargo-

( A ) Disposal of unclaimed/uncleared cargo

Government of India have taken a number of important decisions, as a part of the Scheme

Operation Instant Cargo, for the expeditious clearance charge lying unclaimed / uncleared in the

seaports, Airports and Aircargo complexes within a specified time limit. The instructions in respect of Air
Cargo complexes have already been issued vide D. O. letter F. No. 446/44/92-Cus.IV, dated 20.9.1997
from Member (Customs).

2. The following instructions are being issued in respect of unclaimed/uncleared goods lying with
the custodians who are Central Government undertakings like Port Trusts/C.W.C./CONCOR for
immediate compliance.
2.1 All goods landed up to 1.1.1994 and lying uncleared/unclaimed may be taken up for disposal
by the Custodians and the process of disposal should be completed by the target date fixed by the
respective Custodians.
2.2 The Custodians would not require any NOC from the Customs, as long as they ensure that
consignments in respect of which any dispute has been raised by the customs/importers or where any
stay on disposal from any Court or Tribunal is operational, are not disposed of.
2.3 Customs shall scrutinise their own files and intimate the Custodian a list of disputed or stayed
consignments or consignments requiring them to be retained for any proceedings. If no such intimation is
received from the Customs within 15 days, the Custodian can go ahead with the disposal of the goods.
2.4 The valuation of the goods for disposal shall be done by the Custodians through approved
valuers appointed by them, irrespective of any value arrived at by the Appraisers earlier. In cases of

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doubt, the same may be referred to a panel of three valuers whose decision shall be final.
2.5 The disposal shall be made by Public Auction as earlier. These values assessed by the
valuers appointed by the Custodian shall form the reserve price.
2.6 In the event of the goods not being disposed of at the reserved price at the first auction,
following procedure shall be adopted for reduction in reserve price: Perishable goods
(a) 25% reduction after first auction.
(b) 50% reduction after second auction.
(c) By public auction and sealed tender simultaneously to the highest bidder.
Non-Perishable goods
(a) 10% reduction after first auction.
(b) 20% reduction after second auction.
(c) By public auction and sealed tender simultaneously to the highest bidder.

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The above method of reduction in reserve price be intimated to the Custodian.

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2.7 The sale proceeds shall be shared between the Custodians and the Customs on 50:50 basis.

3.1 All the goods landed between 1.1.1994 and 31.12.1996 and lying unclaimed/uncleared may
be taken up for disposal, and the auction should be completed by the target date fixed by the respective

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Custodians. The following procedure shall be adopted for disposal of such goods.
3.2 The responsibility for the disposal shall exclusively be with the Custodian, who shall fix a
reserve price, arrived at by a panel of approved valuers, which should include an expert on the product
line. In case any request is made by the Custodians, the Customs shall make available to the Custodian
the services of an Appraiser for the purpose to serve on the panel.
3.3 The customs will not insist on complete and detailed inventory of the contents of the

consignments to be drawn in their presence. They shall, instead change 10% consignments for which

detailed inventory shall be made in their presence for sample check.

3.4 Procedure for auction and/or reduction of reserve price shall be the same as in the case of

packages prior to 1-1-1994 as contained in para 2.1.

3.5 The Custodian shall prepare a monthly list of Cargo due for disposal and sent it to the
Customs. In case, Customs desires detention of any of the consignments for their being involved in
disputes, Court cases etc., they shall intimate Port Trusts within 30 days of the receipt thereof. If no
intimation is received from the Customs within 30 days, the Custodian shall presume that Customs have
no objection and shall go ahead with the disposal.
3.6 The proceeds from the sale shall be shared on 50:50 basis between the Custodians and the
Customs.

4.1 The Custodians shall forward to the Customs a list of the consignments imported and pending
clearance from 1.1.1997 on a monthly basis. The Customs shall immediately on receipt, examine the list
and forward to the Custodian the list of consignments in which they want to be withdrawn from such list
on any account and permit the Custodian to dispose off the remaining cargo. If no list is received within
30 days, the Custodian will be free to dispose of these goods.
5. The above instructions are being issued as one time interim administrative arrangement to
ensure that the unclaimed/uncleared cargo pending for long are disposed of at the earliest. As the

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172

requirement under Section 150(2) of the Customs Act, 1962 is mandatory, the sharing of proceeds on the
ratio of 50:50 is being adopted on a rough and ready basis, but in the final accounting of all auctioned
goods, care should be taken to ensure that the mandatory requirements under the law are adhered to.
You may require the concerned Custodians to submit consignment wise accounts after the goods are
disposed of so as to ensure that full duty as applicable under Section 150(2) is recovered from the
disposal value.
[ Boards Circular No. 50/97 dated 17.10.97 ]

( B ) Procedure for disposal of unclaimed/uncleared cargo lying in Air Cargo Complexes

This has a reference to Boards letter F. No. 446/44/92-Cus. IV dated the 20th Sept., 1997 on the
above subject. The said procedure was applicable for goods landed upto 31st March, 1997 and lying
unclaimed/uncleared in the air cargo complexes.
2.

The procedure for clearance of air consignments for the period after 1st April, 1997 has been

discussed with the Ministry of Civil Aviation. The need for releasing space quickly is of paramount

following procedure is framed for adoption by all Customs Houses.

3.

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importance in Air Cargo Complexes in order to facilitate quicker clearance, keeping this in mind, the

In terms of Section 48 of the Customs Act., 1962 goods imported into India which are not cleared

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for home consumption or warehoused or transshipped within 30 days of their landing or within such
further time as Assistant Commissioner of Customs may allow or if the title to any imported goods is
relinquished, such goods may, after notice to the imported goods is relinquished, such goods may, after
notice to the importer and with the permission of the proper officer be sold by the person having custody

4.

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there of.

The imported goods lying uncleared may be classified into two categories viz., (a) goods

confiscated under the Customs Act, 1962 and (b) goods not confiscated but lying uncleared unclaimed.
For the goods of category (a), it is the responsibility of the Customs Department to get them disposed of
through the disposal units of the Department. The custodian will fully undertake disposal of goods falling

under category (b). Every month the custodian shall prepare a list of all imported goods aircraft-wise
which are lying uncleared/unclaimed, for more than 45 days and will send it to customs on monthly basis.

The list shall be delivered by hand and shall be acknowledged with date by the Customs. The list would

contain complete particulars such as Airway Bill number, description of goods, weight, name of the
consignee/consignor etc. A notice shall simultaneously be issued by the custodian to the consignee at
this known address or through their notice board that if the goods are not cleared within 15 days it will be
sold by the custodian under Section 48 of the Customs Act, 1962.
5.

Valuation of goods shall be done by a Committee consisting of a representative of the custodian,

Government approved valuers and a representative of the Customs for working out the reserve prices of
the consignment to be auctioned. Customs House will provide, on cost recovery basis, one Appraiser
each to Air Cargo Complex at Delhi, Mumbai, Chennai and Calcutta. The Appraisers posted on cost
recovery basis to such formations would represent the Customs Department in the Committee and would
have full authority to determine whether the goods are prohibited for import or fall in the negative list of
import or are required to be detained for any other reason. The valuation committee at the time of fixing
value would inspect the goods and segregate the goods, which are prohibited for import under EXIM
policy or any other provisions of law.
6.

On receipt of the sale list from the custodian, the Assistant Commissioner should scrutinize the

list and withdraw the items of following category from the proposed sale;(i)

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(ii)

Consignments which are under investigation / adjudication / court proceedings.

(iii)

Motor Vehicles of all types.

(iv)

Other specific items intimated by Commissioner. In addition, restrictions imposed under

Allied acts, if any, shall be observed, some examples are as under:-

(a) All drugs / pharmaceuticals and chemicals not accompanied by labels, manufacturers name
should be referred to the Assistant Drugs Controller / Laboratory for test report and advice
before they are disposed of.
(b) Goods like food stuffs, insecticides, fertilisers, etc. which are subject matter of clearance form
any other authority will be disposed of after obtaining necessary clearance from the
respective authorities.
(c) Goods which are totally prohibited and are not allowed to be imported like Narcotic drug,
arms and ammunition etc. shall be separated, adjudicated and confiscated.
The Assistant Commissioner shall ensure that intimation to withhold any consignment shall be
sent to the custodian within 15 days of the receipt of the Sale list. The custodian shall be free to dispose
off the goods if no intimation is receipt of the sale list by the Customs.
The custodian shall ensure that proper publicity of sale / auction is made by way of advertisement

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7.

in local / national newspapers so that all the interested persons can participate in the auctions. The
custodian should fix a date for holding the auction and communicate such date to the officer in charge of

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the customs station and communicate such date to the officer in charge of the customs station and the
concerned Assistant Commissioner. The Assistant Commissioner would nominate, if necessary, an officer
not below the rank of Supdt. / Appraiser to witness the auction. Customs shall not withdraw any

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consignments at the last moment from the auction being held except with the written approval of the
Commissioner of Customs.
8.

Government approved Auctioner shall be appointed by the Custodian for conducting the action.
The reserve price shall not be disclosed to the Auctioneers and authority for acceptance of the
final bids during the auction shall be that of the designated officer / committee of officers. The
bidding shall be on commodity price and no separate duty shall be calculated or recovered. If the

(i)

following scale;

consignments are not disposed of in the first auction, the reserve price shall be reduced in the

Perishable goods
st

After 1 auction, 25% of original value fixed.

After second auction, 50% of original value fixed.; failing this shall be given to the highest bidder
who bids in the sealed tender without any reference to reserve price. If there are no bidders, the goods
shall be destroyed.

(ii)

Non Perishable goods

After first auction, 10% of original value.

After second auction, 20% of original value.

Thereafter it shall be given to the highest bidder who bids in sealed tender.
9.

The gross sale proceeds shall be shared between the custodians and the customs on 50:50

basis. The custodians shall bear the expenses like valuers expenses, auctioners expenses, sale
expenses, storage charges, warehouse charges, out of their share of share of sale proceeds and they will
not claim any such amount from the customs.
[ Boards Circular No. 11/98 dated 11-2-98 from F.No.450/145/97-Cus.IV ]

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(C)

Clearance of uncleared/unclaimed cargo lying in Ports and Air Cargo Complexes

It is to inform that vide letter No. 446/44/92-Cus.IV, dated 17-10-1997, read with letter dated 20-

9-1997, Board had directed to take action to dispose of unclaimed and uncleared cargo landed upto 31-31997. In the EPB meeting dated 20-3-1999 at Chennai, it has been decided to take similar action to clear
the goods lying upto 31-12-1998 within the next 3 months, if there are no court cases preventing such
disposal and within next 6 months if there are court cases involved.
Board desires you to take expeditious action for disposal of these goods and report results
achieved.
Similar action can be taken in future also periodically on your initiative.
[ Boards Circular No. 21/99-Cus., dated 7-5-1999 ]

(D)

Disposal of unclaimed/uncleared cargo

Please refer to Boards Circular No. 50/97-Cus., dated 17.10.1997 on above mentioned subject.

In the said Circular, guidelines for disposal of unclaimed/uncleared cargo and sharing of sale proceeds on

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the basis of 50 : 50 between the custodian and Customs were issued as a one-time measure in respect of
cargo landed prior to 31.12.1996. In the light of severe congestion at ports, the issue was examined again
by the Export Promotion Board in its meetings held on 20.03.1999 and 24.09.1999, and it was decided

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that all goods received before 31st December, 1998 and lying uncleared would be disposed of through
auctions. The sale proceeds would be shared on 50 : 50 basis between the port authorities and Customs
and no charge, would be levied on the Shipping Companies.

In view of the above, the matter has been examined again by the Board, and it has been decided

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2.

that guidelines issued for disposal of unclaimed/uncleared cargo landed prior to 31.12.1996 vide Circular
No. 50/97-Cus., dated 17.10.1997 would also be followed in respect of goods landed during 01.01.1997
to 31.12.1998.
3.

It is reiterated that instructions are being issued as an interim administrative arrangement to

ensure disposal of unclaimed/uncleared cargo to reduce the congestion at Ports. As the requirement

under section 150(2) of the Customs Act, 1962 is mandatory, the sharing of proceeds on the ratio of

50:50 is being adopted on a rough and ready basis, but in the final accounting of all auctioned goods
requirement under the law needs to be adhered to. You may therefore require the concerned Custodians
to submit consignment-wise accounts after the goods have been disposed of, so as to ensure that full
duty as applicable under section 150(2) is received from the disposal value.
[ Boards Circular No. 5/2000-Cus., dated 13.01.2000 from F. No. 450/145/97-Cus. IV ]

@@@@@@@@@@@@

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