S. No.

Issue

Existing Process

Process under New Scheme

Clearance of imported goods

i.        Assessment of B/E or acceptance of self-assessment done by importer; and

ii.      Physical examination of goods.

There will be Risk Management System whereby assessment or acceptance of self-assessment and decision of examination of goods, will be based on profiling and risk evaluation.

Role of Customs Officer

i.     Scrutiny of B/E and related documents;

ii.    Physical examination of goods; and

iii.   Grant of clearance order or out of charge order on receipt of applicable duties.

The existing structure of Commissionerates will be restructured into following two distinct categories:

i.       National Assessment Commissionerates (‘NAC’) for assessment proceedings

• NAC will not be physically co-located but will be connected virtually;
• It will comprise of various Faceless Assessment Groups (‘FAG’) including officers drawn from different customs locations;
• FAG will be solely responsible for assessment proceedings; and
• Where importer disagree with NAC’s order, appellate proceedings will also be carried out via videoconferencing or other technological means.

ii.     Jurisdictional Port Commissionerates (‘JPC’) for physical examination of goods where NPC finds discrepancy in B/E or documents

• JPCs will set up Turant Suvidha Kendra to

• Accept bond or bank guarantee,
• Generate test memo and forward the samples,
• Process request for waiver of late fee,
• Carry out any technical function allotted by FAG,
• Defacing of documents or permit licenses, and
• Debit of documents, permits and licenses.

Types of B/E

There is no distinction in B/E filed for clearance of goods.

The Customs Automated system, will broadly categorize B/E into following two categories:

i.       Facilitated B/E: It will not be subject to any assessment / examination and will be directly routed to ‘Out of Charge Officer’ for granting clearance.

ii.     Non-facilitated B/E: The system will automatically indicate that B/E is subject to either assessment or examination or both.

Procedure for assessment of B/E

Assessment is done, in accordance to Section 17, 18, 46 and 47 of the Customs Act 1962 in the following manner:

i.     Assessing officer scrutinizes B/E and other supporting documents;

ii.    Examining officer, present either in docks, CFS or ICD, physically examine goods; and

iii.   ‘Out of charge officer’ grants ‘customs clearance’ or ‘Out of charge’ order after payment of duty.

These roles were performed either by single officers or more than one officer which at times leads to duplicity and conflicts.

Under new system, following procedure will be followed:

i.       The importers will electronically file B/E, along with relevant documents, on Customs Automated System;

ii.      B/E will be selected for NAC according to criteria of duty payable or assessable value;

iii.     FAG, under said NAC, will assess and verify all documents available in e-Sanchit;

iv.    FAG will either accept self-assessment or re-assess B/E and issue a speaking order; and

v.      Where FAG decides for examination or testing of goods, the responsibility to send samples to laboratory will lie with shed officers and Turant Suvidha Kendra at port.

Notably, the appeal against FAG order will lie before Commissioner (Appeals).

Further, in case of review proceedings, order passed by FAG will be reviewed by NAC.