1. Freight forwarder department of air import, receive the pre alert form overseas agent or consignee. 2.

Air import consolidation department do the manifestation work to create a job. Now work of air import clearance starts. 3. Now clearance department send assessment sheet to the consignee. 4. After getting confirmation from consignee. 5. Now air import clearance department start work on manifestation part, and create checklist. 6. Re checking of checklist about the details of commodity and other relevant information. A. Submit it to the custom site. It has two ways.Through ICE gate this process is used when we have to submit those job details in which advance license / DEPB /DEEC. B- Through our Homyar system, in this way we can submit those job, which does not, contains these type of advance license 7. After filing these we get bill of entry no from the custom site. 8. Now we have to get doc checked -

Through Appraiser channel

Green channel

Appraiser wants some documents to make Himself aware of product type and validity of import For this he need Invoice, packing list,Bill of Entry No recommendation for

If appraiser is not satisfied, he may ask For Technical write up, Catalogue details.

Exam/documents check

If appraiser is still not satisfied then, he may ask For sample check up, after getting report...

If a appraiser is no satisfied with invoice value Then he may ask for declaration of payment. He may also recommend For SVB

If appraiser is not satisfied with chemical composition Of product ,he may recommend for physical examination

After appraiser pass the cargo, it goes AC (assistant commissioner), If he needs any other documentary he may ask for those, otherwise he passes.

Now we have to pay duty charges in the custom a/c in PNB bank

Now if the cargo has not undergone the process of examination, at this stage it will be physically examined.

If after physical examination it is found good. then

Now we have to pay TSC charges (terminal storage and handling charges), to GHA (ground handling authority of airport).

After paying all the charges, cargo is custom cleared; now Custom will give us OC(out of charge) certificate

After getting OC, a freight forwarder ahs to make a gate pass,to get cargo at the gate.

Release of DO order When aircraft of any Airlines landed the cargo to the airport, after getting all its charges,it issue a DO(delivery order)

If a freight forwarder is involved in between Then airlines give DO to Freight forwarder Other wise airlines give DO to consignee. from

IN case of direct shipment either consignee/ cha of Consignee takes the DO order

Airlines Need of DO a Clearance agent need DO order while cargo under going Examination Process. Post shipment documents: Duplicate copy: importer copy Triplicate copy: Exchange control copy. In case of insurance is not given we assume the value of insurance as 1.125 % of FOB value. In some cases Consignee has two type of insurance scheme 1. Consignee take insurance as per consignment 2. Yearly insurance of all the Export value Main fault- 1- when the value of invoice is less than the value of production cost of that product. 2- the freight of that consignment is less than the normal value. Documents needed for duty exemption. 1. DEPB 2. DEEC 3. Advance license 4. EPCG 5. Videsh krashi and exemption certificate Special valuation Branch: The Special Valuation Branch (SVB, for short) is an institution specializing in investigation of transactions involving special relationships and certain special features having bearing on value of import goods. SVBs are located only at five Custom Houses, i.e., Chennai, Kolkata, Delhi, Bangalore and Mumbai and any decision taken in respect of a particular case in any of these Custom Houses is followed by all other Custom Houses/formations.
Type of Customs Duties
Basic customs duty Basic customs duty levied u/s 12 of Customs Act is generally 10% of non-agricultural goods, w.e.f. 1-3-2007. CVD equal to excise duty is payable on imported goods u/s 3(1) of Customs Tariff Act to counterbalance impact of excise duty on indigenous manufactures, to ensure level paying field. CVD is payable equal to excise duty payable on like articles if produced in India. It is payable at effective rate of excise duty. General excise duty rate is 10.30% w.e.f. 27-2-2010 (10% basic plus 2% education cess and SAH Education

Countervailing Duty (CVD)

cess of 1%). CVD is payable on assessable value plus basic customs duty. In case of products covered under MRP provisions, CV duty is payable on MRP basis as per section 4A of Central Excise. CVD can be levied only if there is manufacture. CVD is neither excise duty nor basic customs duty. However, all provisions of Customs Act apply to CVD.

Special CVD

Education Cess Total duty

Other duties

Safeguard duty

Anti dumping duty

Special CVD is payable @ 4% on imported goods u/s 3(5) of Customs Tariff Act. This is in lieu of Vat/sales tax to provide level playing field to Indian goods. Traders importing goods can get refund. CVD is not payable if goods are covered under MRP valuation provisions/ Education cess of customs @ 2% and SAH Education cess of 1% is payable. Total import duty considering all duties plus education cess on non-agricultural goods is generally 26.85% NCCD has been imposed on a few articles. In addition, on certain goods, anti-dumping duty, safeguard duty, protective duty etc. can be imposed. Cess is payable on some goods imported/exported. Safeguard duty can be imposed if large imports are causing serious injury to domestic industry. In addition, product specific safeguard duty on imports from China can be imposed. Antidumping duty is leviable u/s 9A of Customs Tariff Act when foreign exporter exports his good at low prices compared to prices normally prevalent in the exporting country. Dumping is unfair trade practice and the antidumping duty is levied to protect Indian manufacturers from unfair competition. Margin of dumping is the difference between normal value (i.e. his sale price in his country) and export price( price at which he is exporting the goods). Price of similar products in India is not relevant to determine margin of dumping. Injury margin means difference between fair selling price of domestic industry and landed cost of imported products. Dumping duty will be lower of dumping margin or injury margin. Benefits accruing to local industry due to availability of cheap foreign inputs is not considered. This is a drawback. CVD is not payable on antidumping duty. Education cess and SAH education cess is not

payable on anti-dumping duty. In case of imports from WTO countries, antidumping duty can be imposed only if it cause material injury to domestic industry in India. Dumping duty is decided by Designated Authority after enquiry and imposed by Central Government by notification. Provisional antidumping duty can be imposed. Appeal against antidumping duty can be made to CESTAT.

Calcula tions of custom s duty General customs duty rate for nonagricult ural goods 10%.

Total customs duty payable w.e.f. 27-2-2010 is 26.85% as excise duty rate is generally 10% Assessable value = CIF Value of imported goods converted into Rupees at exchange rate specified in notification issued by CBE&C plus landing charges 1% (plus some additions often arbitrarily and whimsically made by customs). Calculation of customs duty payable is as follows Duty % (A) (B) (C) (D) (E) (F) (G) (H) (I) (J) (K) (L) (M) Assessable Value Rs Basic Customs Duty Sub-Total for calculating CVD '(A+B)' CVD 'C' x excise duty rate Education cess of excise - 2% of 'D' SAH Education cess of excise - 1% of 'D' Sub-total for edu cess on customs 'B+D+E+F' Edu Cess of Customs 2% of 'G' SAH Education Cess of Customs - 1% of 'G' Sub-total for Spl CVD 'C+D+E+F+H+I' Special CVD u/s 3(5) 4% of 'J' Total Duty Total duty rounded to 10 10 2 1 2 1 4 Rs Amount 10,000 1,000.00 11,000.00 1,100.00 22.00 11.00 2,133.00 42.66 21.33 12,196.99 487.88 Total Duty 1,000.00 1,100.00 22.00 11.00 42.66 21.33 487.88 2,684.87 2,685

Freight calculation: if the freight is not given in invoice then custom calculates the freight charges at 20 % of FOB value or the fright given. Charges of ground handling authority: 1. Handling charges: - These are charges for handling cargo at the airport, normally these charges are 4.45 /kg. 2. Damrague charges: - as per rule defined by the custom authority. 3. Packing charges: - when custom took the custom clearance process and checks cargo from physical inspection then they order to open the cartons, for repacking these cartons they charge the amount of money as 12.5 Rs /carton. 4. Service charges: -custom put service charges at the rate of 10.33% (handling + damrague charges + Packing charges) All the above charges are paid as TSC charges to the custom handling agent. It is calculated, and then we take it as a round off at rate of 5.