CUSTOMS CLEARANCE FACILITATION COMMITTEE MEETING

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CUSTOMS CLEARANCE FACILITATION COMMITTEE MEETING

• 28th August, 2015
• CHENNAI Customs Zone

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???? The true merchandize of merchants is to
guard and do by the things of others as they
do by their own. Thirukkural 120
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• I AM BECAUSE YOU ARE
• YOU ARE BECAUSE WE ARE
• -Spirit of Ubuntu, an African values system
• (natural foundation for effective corporate
  governance)
• You must be the change you wish to see in the
  world . . .- Mahatma Gandhi
• .

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FLOW CHART OF CLEARANCE OF IMPORTED GOODS
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OBJECTIVE of TRS

• To measure the average time taken for each
  activity of the release process.
• A measure of customs performance in trade
  facilitation
• To identify the weaknesses and suggest ways and
  means to remove them, if any.

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SCOPE of TRS

• Measures the mean average time taken in each
  process of Customs clearance from arrival of
  goods to the release of the goods (Out of Charge
  OOC).
• Is based on the declarations filed and processed
  electronically.
• About 94 of import declarations are filed
  electronically in Custom House.

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METHODOLOGY ADOPTED

• Based on sampling method.
• As per WCO guidelines, the sample should ideally
  include all the declarations processed in a
  period of at least seven consequent working days.
• It should also be one of the normal traffic
  periods.
• Time period of 21.07.2015 to 27.07.2015,from
  Tuesday to next Monday was undertaken for this
  study.
• During this period, there was no slowdown or
  break down of EDI System. Hence data collected
  reflects a fairly representative sample.

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WORKFLOW OF CUSTOMS CLEARANCE
Customs clearance can be broadly classified into
following stages 1. Filing of IGM
ACTION OWNER SHIPPING LINER 2. Filing of
BE ACTION OWNER IMPORTER / CB 3.
Processing of declaration automatically by Risk
Management System (RMS), which decides to
facilitate the BE or send the BE for scrutiny by
Assessment Group. ACTION OWNER ICES 1.5 4.
Scrutiny is done either through 1st check or 2nd
check assessment, which is done at the behest of
importer or Customs ACTION OWNER
CUSTOMS 5. 1st check assessment
ACTION OWNER CUSTOMS
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WORKFLOW OF CUSTOMS CLEARANCE
Cntd...
6. 2nd Check Assessment ACTION OWNER
CUSTOMS 7. Payment of Duty ACTION OWNER
IMPORTER / BANK 8. Goods Registration ACTION
OWNER IMPORTER / CB 9. Examination of goods
ACTION OWNER CUSTOMS 10. Out of Charge
(OOC) in ICES. ACTION OWNER CUSTOMS
Of the stages mentioned above, time attributable
to processing by Customs officers would be
aggregate of time taken for assessment and
examination (stages 3 to 6 and 9 10). However,
the total time for an imported Consignment lies
in Customs Area is aggregate of stages 1 to 10.
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ANALYSIS
TOTAL NUMBER OF BILLS OF ENTRY FILED 4592
NUMBER OF BILLS OF ENTRY FACILITATED 2346 (51.09 )
NUMBER OF BILLS OF ENTRY NON FACILITATED 2246 (48.91)
FIRST CHECK BILLS OF ENTRY 256 (5.57 )
SECOND CHECK BILLS OF ENTRY 1990(43.34 )
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ANALYSIS OF STAGES 1 2

• VESSEL ARRIVALTO FILING OF BE
• - Action Owner Importer / CB

Time taken in Hours No. of Bs/E Cumulative age of Total Documents Filed
lt 08 143 32.87
lt 16 3 33.56
lt 24 46 44.14
lt 32 11 46.67
lt 40 03 47.36
lt 48 22 52.41
lt 72 48 63.45
gt 72 159 100
Total 435
Analysis How do we move forward
It can be noticed that only 44 have filed BsE within 24 hrs from grant of entry inwards, 19 in the next 48 hours, around 37 have filed BE after 72 hrs. However, it is pertinent mention that average time taken to file BE after granting of Entry Inwards is 78 hrs. The Importer / CB needs to be ready with all the documents and file maximum possible BsE within 24 hrs. They can also avail the facility of filing prior entry BsE upto 14 days prior to arrival of vessel.
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ANALYSIS OF STAGES 2 TO 6
B. TIME TAKEN BY CUSTOMS SYSTEM TO DECIDE ON RMS
FACILITATION
- Action Owner CUSTOMS
Time taken in minutes No. of Bs/E Cumulative age of Facilitated Bs/E
lt 03 911 38.83
Between 03 and 06 1378 58.74
Between 06 and 12 57 2.43





Total 435
Analysis How do we move forward
It can be noticed that average time taken for assessing 51.09 of the Bs/e filed is 3.58 minutes. 70 BsE have been assessed within 24 hrs, 16 in the next 48 hours, around 14 have been assessed after 72 hrs. In addition, it is pertinent mention that there is an improvement in average time taken for assessment from 35.37 hrs to 28.38 hrs when compared previous FY during the sample period. Mostly on account of the BsE filed in the evening of last working day of the week. If maximum number of BsE are filed in the early hours of the day, there is a likelihood of the age of assessment of BsE in the first 8 hours to go up.
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C. TIME TAKEN IN FOR PAYMENT OF DUTY AFTER
ASSESSMENT - Action Owner IMPORTER/ CB
ANALYSIS OF STAGES 6 7
Time taken in Hours No. of Bs/E Cumulative age of Total Documents Filed
lt 24 1746 74.42
24-48 226 9.63
48-72 176 7.50
72-96 80 3.41
96-120 42 1.79
gt 120 76 3.24


Total 2346
Analysis How do we move forward
It can be noticed that in case of 74.42 BsE, duty payment has been made within 24 hrs. The average time taken for payment of duty by importer/CHA is RMS facilitated Bs/E is 19.47 hrs. The ratio between the Bs/E assessed to payment of duty is 1654 As e payment is made mandatory and the facility is available 24x7, the Importers/CBs are advised to plan duty payment well in time to avoid payment of Interest, detention and demurrage charges.
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ANALYSIS OF STAGES 7 8
D. TIME TAKEN FOR REGISTRATION AFTER PAYMENT OF
DUTY - Action Owner
Custodian/ CB Terminal Operator / IMPORTER
Time taken in Hours No. of Bs/E Cumulative age of Total Documents Filed
Within 24 651 27.75
24-48 854 36.40
48-72 294 12.53
72-96 206 8.78
96-120 116 4.94
lt 120 225 9.59


Total 268
Analysis How do we move forward
It can be noticed that in cases of only 27.75 BsE goods have been registered within 24 hrs, 36.40 in the next 48 hours. The average time taken for registration after payment of duty is 55.97 Hrs. Keep all documents ready as per CCRs. The CB / Custodian / Terminal Operator may synergise so as to reduce the dwell time and stagnation in Terminal / CFS Effective message exchange among all the stakeholders.
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ANALYSIS OF STAGES 8 TO 10
E. TIME TAKEN FOR OUT OF CHARGE FROM REGISTRATION
- Action Owner CUSTOMS
Time taken in Hours No. of Bs/E Cumulative age of Total Documents Filed
lt 01 804 34.27
1-2 381 16.24
02-03 281 11.98
gt03 880 37.51




Total
Analysis How do we move forward
It can be noticed that Out of Charge has been granted in 62.49 cases within 03 hrs, The remaining 37.51 cases are cleared beyond 3 hours. On computation it has revealed that the average time taken is 20.01Hrs. 1.Keep CCR documents ready. 2. Importers / CBs are suggested to maintain data quality so that amendments can be reduced and OOC is given within 24 hours for all the Bills.
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INTEGRATED ANALYSIS OF THREE STUDIES CONDUCTED
ON TIME RELEASE
S.N Process/ Action Owner Time Frame (in Hrs) 1st Study (21.07.14 to 28.07.14 2nd Study (15.12.14 to 22.12.14 3rd Study (13.04.15 to 20.04.15 4th Study (21.07.15 to 27.07.15
1 VESSEL ARRIVALTO FILING OF BE - Action Owner Importer / CB 72 71.47 61.31 65.44 63.45
2 B. TIME TAKEN IN FILING TO ASSESSMENT - Action Owner CUSTOMS 24 72.94 81.25 79.20 70.11
3 C. TIME TAKEN IN FOR PAYMENT OF DUTY AFTER ASSESSMENT - Action Owner IMPORTER/ CB 72 45.17 50.30 51.68 89.92
4 D. TIME TAKEN FOR REGISTRATION AFTER PAYMENT OF DUTY - Action Owner Custodian/ CB Terminal Operator / IMPORTER 72 28.41 29.76 26.38 70.90
5 E. TIME TAKEN FOR OUT OF CHARGE FROM REGISTRATION - Action Owner CUSTOMS 24 87.06 96.13 97.55 94.48
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SUGGESTIONS/RECOMMENDATIONS
THANK YOU