Customs
Circular No- 33/2010 dated 07.09.2010
Courier Regulations for the manual and the electronic mode – regarding.
I am directed to invite your attention to Notification No.36/2010-Cus (NT) dated
5th May, 2010 vide which the Board has notified Courier Imports and Exports
(Electronic Declaration and Processing) Regulations, 2010. These Regulations
have been framed to enable electronic filing and processing of customs
declarations with regard to import and export consignments carried by courier
companies. Further, vide Notification No.75/2010-Cus (NT) dated 12th August,
2010, consequential changes have also been made in the Courier Imports and
Exports (Clearance) Regulations, 1998, which regulate the procedure for
clearance of courier consignments in the manual mode.
2. Following are some of the salient features of both courier
Regulations-electronic as well as manual mode:
(i) Declarations by authorized persons: Compliance with various requirements of
Customs Act, 1962 and other allied laws is enforced by requiring the
importer/exporter or his authorized agent to make proper declarations before
customs. In this regard, Section 146 of the Act provides that no person shall
carry on business as an agent relating to the entry or departure of a conveyance
or the import or export of goods at any customs-station unless such person holds
a license granted in this behalf in accordance with the Regulations. Therefore,
it has been provided under the courier Regulations that declarations before
customs, for clearance of imported or export goods, shall be filed through a
person who has passed the examination referred to in Regulation 8 or Regulation
19 of the Customs House Agents Licensing Regulations, 2004 and who is duly
authorised under Section 146 of the Act. Further, keeping in view the
difficulties that may be faced by the trade in complying with these new
requirements, a transition period of six months has been provided from the date
of coming into effect of the respective notifications.
(ii) KYC Norms: In the context of increasing number of offences involving
various modus-operandi such as fraud and duty evasion by bogus IEC holders etc.,
an obligation has been cast on the Authorized Courier to verify the antecedents,
identity of his client and the functioning of his client in the declared address
by using reliable, independent, authentic documents, data or information. In
this regard, the detailed guideline on the list of documents to be verified and
obtained from the client/ customer laid down as per the Annexure to Board’s
Circular No. 9/2010 dated 8th April, 2010 may be adhered to. It would be
obligatory for the client/ customer to furnish to the Authorised Courier any two
of the listed documents in the annexure. However, it is clarified that there is
no requirement for the client/ customer to furnish a photograh separately to the
Authorised Courier.
(iii) Requirement of security and net worth: The requirement for security for
acting as an Authorised Courier has been enhanced to ten lakhs rupees in case of
major international airports of Mumbai, Delhi, Calcutta and Chennai and five
lakhs rupees in case of other airports. Similarly, the requirement of net worth
or financial viability to act as an Authorised Courier has been enhanced to
possession of assets of a value not less than twenty five lakh rupees. Further,
it is clarified that the requirement for enhanced Bond and Bank Guarantee
applies to existing Authorised Couriers as well.
3. Further, there are certain features that are unique to the courier
Regulations for the electronic mode. Some of these are:
(i) The 100% EOU shipments have been allowed as the EOU module has been
developed under the proposed automation system and data requirements have
enhanced.
(ii) New forms for filing customs declarations have been notified such as the
Courier Bill of Entry-XI (CBE-XI) for documents in Form B, the Courier Bill of
Entry-XII (CBE-XII) for free gifts and samples in Form C, the Courier Bill of
Entry-XIII (CBE-XIII) for low value dutiable consignments in Form D, the Courier
Bill of Entry-XIV (CBE-XIV) for other dutiable consignments in Form E for import
consignments. Similarly, Courier Shipping Bill-III (CSB-III) for documents in
Form G and Courier Shipping Bill-IV (CSB-IV) for goods in Form H have been
notified for export consignments.
(iii) No restriction regarding weight or value have been prescribed since the
data elements prescribed for submission of Bill of Entry include complete
details as are required for filing a normal Bill of Entry.
(iv) The Import-Export Code (IEC) Number will be required to be declared in case
of declarations filed in Form C or Form D or Form E. Further, a transition
period of six months has been prescribed in case of declarations filed in Form D
for complying with the requirements of IEC number. It is also clarified that in
case of import of goods for personal use not connected with trade or manufacture
or agriculture, the permanent IEC number given under the Handbook of Procedures
(Vol.I) notified by the DGFT may be used.
(v) The requirement for value declarations by the importer in case of Courier
Bill of Entry-XIV (CBE-XIV) for other dutiable consignments in Form E has been
prescribed.
(vi) As the Export Manifest Module is yet to be developed under the EDI, the
provisions of Regulations 6(1) are to become operational from a date which will
be notified in due course. Accordingly, it is clarified that the existing
procedure being followed in respect of courier Regulations for manual mode shall
apply in this regard.
(vii) Examination norms, concerning import or export through courier mode, as
laid down vide Board Circular No. 23/2006-Cus dated 25th August, 2006 shall
apply till such time RMS module becomes operational.
(viii) Regulation (12) (1) (i) provides that an Authorised Courier shall obtain
an authorization from each of the consignee or consignors of imported as well as
export goods. It is clarified that this provision does not seek to provide for
any new requirement, and that an Authorised Courier shall obtain an
authorization from each of the consignee in case of imports and consignor in
case of exports.
4. Apart from the changes as outlined at Para 2 above, some additional changes
have been brought in the Regulations for the manual mode:
(i) On the lines of similar requirement for Customs Cargo Service Providers
(CCSP) under the Handling of Cargo in Customs Areas Regulations, 2009, a
provision has been made prescribing the requirement of prior permission of
customs if the Authorised Courier wants to sub-let/outsource any of the
components in the door-to-door supply chain. This is necessary since an
Authorized Courier is defined as one, who, in relation to import or export of
goods, is a person engaged in the international transportation of goods for
export and imports on door-to-door delivery basis, and is registered in this
behalf by the jurisdictional Commissioner. Also, the basic reason for
expeditious clearance facilities being extended to them is that express
companies have put in place verifiable and secure work processes on a global
basis backed by an elaborate IT infrastructure for knowledge and information
management. These companies have their own in-house mechanisms to guard against
use of express supply chain by unscrupulous elements. Therefore, any
unauthorized sub-letting or outsourcing of any of the components in the
door-to-door supply chain may defeat the very purpose behind facility of
expeditious clearance. Hence, the Commissioners of Customs should review the
facilities available with the Authorised Couriers appointed under their charge
to ensure compliance. Further, while allowing, any sub-letting or outsourcing
due care should be taken to ensure that it does not go against the very purpose
behind facility of expeditious clearance.
(ii) Regulation13 (a) provides that an authorized courier shall obtain
authorization from the consignee of the import goods for clearing the goods
through customs. However, it has been brought to the notice of the Board by both
the field formations and the trade that insisting for authorization from each of
the consignee/importer is not feasible in all such cases, and it defeats the
very objective of ensuring expeditious clearance. Accordingly, it has been
decided that in case of import consignments having a declared value of ten
thousand rupees or less, the authorization may be obtained at the time of
delivery of the consignments to consignee. Such authorizations shall be retained
for record by an Authorised Courier for a period of one year or date of
inspection by customs whichever is later. Further, the Authorised Courier is
obliged under the Regulations to maintain records and accounts in such form and
manner as may be directed from time to time by an Assistant Commissioner of
Customs or Deputy Commissioner or Customs and submit them for inspection to the
Assistant Commissioner of Customs or an officer authorised by him, wherever
required. Accordingly, the Board desires that such inspection be done on
periodical basis, at least once in a year, and during inspection it should be
invariably seen, inter alia, if the Authorised Courier is obtaining these
authorizations.
(iii) Clause (vi) has been inserted in second proviso to Regulation 5(3) to
provide that in case of goods having a declared value of more than one lakh
rupees, a normal Bill of Entry as prescribed under the Bill of Entry (Forms)
Regulations, 1976 shall be filed.
5. The existing procedure for testing of samples requires the Customs officers
to draw samples in terms of Section 144. In this regard, Commissioners of
Customs have also been provided the flexibility to send samples either to CRCL
or to Government approved Laboratories. In case any import consignment under
courier require any such testing of samples, then the Customs officers shall
require such goods to be tested immediately so that imports under courier mode
do not get held up nor the express clearance facility misused for non-compliant
imports.
6. Further, it is clarified that facility of transshipment between two customs
stations will continue as per the provisions of the Customs Act, 1962, Goods
Imported (Conditions of Transhipment) Regulations, 1995 and existing
instructions of the Board. Many times consignments imported through courier mode
may also need to be transferred to cargo terminal of the same airport for
clearance purposes. Such transfer is akin to local movement of cargo from one
custom area of the customs station to another custom area of the same station.
As clarified vide Board’s Circular No. 18/2009-Cus dated 8th June, 2009, such
movement is covered by local procedure evolved by the jurisdictional
Commissioner of Customs.
7. For removal of doubts, it is clarified that similar to Bill of Entry
Regulations for the manual and electronic mode, the two courier
Regulations-electronic as well as manual mode prescribe the procedure for filing
and processing of declarations. While manual Regulations apply to courier
clearances at specified places, the electronic Regulations would apply wherever
the automation facilities are being setup. Further, at places where automation
facilities have become operational many a times the documents may be required to
be filed and processed manually due to any break-down in the electronic server
or other unforeseen circumstances. Moreover, even at these places the shift to
electronic mode will take place gradually with the launch of pilot project, and
till such time automation facilities become fully operational at a place, some
consignments may need to be processed manually as may be determined by the
jurisdictional Commissioners.
7.1 The existing Authorised Couriers who are registered or transacting business
in terms of Regulation 12 of the Courier Imports and Exports (Clearance)
Regulations 1998 at locations where automated clearance facilities become
operational shall be eligible to file declarations under the electronic mode
without any requirement for fresh appointment or fresh intimation, subject to
the fulfillment of other conditions or requirements imposed under courier
Regulations for the electronic mode. In short, once a person is registered as an
Authorized Courier, he can file declarations under both the modes subject to
compliance of other requirements of the respective Regulations.
8. These instructions may be brought to the notice of all concerned by way of
issuance of suitable Public Notice / Standing Order.
9. Difficulties, if any, in implementation of the Circular may be brought
immediately to the notice of the Board.
F. No.450/ 77 /2010-Cus.IV
Yours sincerely,
(Navraj Goyal)
Under Secretary (Customs)
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