Accelerated Customs Clearance Procedure

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Accelerated Customs Clearance Procedure
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Goal To ensure expeditious clearance of goods
while protecting the Revenue from Risk.

• Challenge
• Rapidly growing complexity and volumes in
  international trade requires Customs to strike an
  appropriate balance between the competing issues
  of trade facilitation and effective enforcement
  of prohibitions/restrictions and collection of
  revenue

Path adopted Internationally Customs are
moving away from the traditional pattern of
examining all consignments, assessing all goods
and collecting duty before clearance .

• Control Mechanism
• Risk management based solutions comprising
  combination of
• Self Assessment for identified Importers.
• Selective Examination of goods.
• Post clearance Audit.

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Kyoto Convention Transition Standard 3.32
and in addition , to the extent possible , other
special procedures such as
allowing a single goods declaration for
all imports or exports in a given period where
goods are imported or exported frequently by the
same person. use of the
authorized persons commercial records to self
assess their duty and tax liability and, where
appropriate, to ensure compliance with other
customs requirements. Allowing
the lodgment of the goods declaration by means of
an entry in the records of the authorized person
to be supported subsequently by a supplementary
goods declaration.

• For authorized persons who meet criteria
  specified by the customs, including having an
  appropriate record of compliance with Customs
  requirements and a satisfactory system for
  managing their commercial records the Customs
  shall provide for
• Release of the goods on the provision of the
  minimum information necessary to identify the
  goods and permit the subsequent completion of the
  final goods declaration.
• Clearance of the goods at the declarants premises
  or another place authorized by the Customs.

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VISION

• Minimize pre-clearance scrutiny of import/export
  declarations and examination of goods.
• Introduce systems assessment for specified
  commodities/identified importers/exporters.
• Introduce audit-based post-clearance controls and
  combine post-clearance audit for Customs C.
  Excise for manufacturer importers-exporters
• Examine all procedures and eliminate those not
  compatible with trade facilitation

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Current Customs Clearance Procedures

• Transaction based.
• Physical control is the dominant feature.
• Consequently time consuming.
• Enhances the transaction costs.
• Not in tune with the thrust for trade
  liberalization and reforms in the economy.

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Current Process

• Present steps for expedition of cargo clearance
• Green Channel Select Importers with good track
  record can avail of this scheme where examination
  is reduced. However assessment is a must.
• Fast Track A single window clearance system
  available for Importers in manual system but
  missing in EDI which covers 80 of cargo.
• Systems appraisal In EDI goods like gold,
  silver, books, defence cargo, aircraft spares
  etc.,. Are assessed by Computer and the BE
  directly goes to Examination after payment of
  duty. Scheme not available Importer wise but can
  be extended to any item which is either charged
  at nil rate or is exempted.
• There is no combination of green channel and
  Systems assessment today.

Cargo Declaration (IGM)
Delays at this level occur due to deficient IGMs.
Not much different from manual methods. Similar
needs for documents presentation and related
delays. Even repeated and standard items face the
same treatment.
Assessment (BE)
Duty Collection
Duty payable only after formal clearance of the
BE by assessment officers
Examination
Almost all goods are either examined/inspected.
Clearance
Till all these steps are completed goods are
stuck at the Airports/ports.
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Proposed system for Accelerated Customs
Clearance Procedure

• Ensures expeditious clearance procedures both at
  assessment and examination level.
• Risk Management can help us in identifying
  importers with credible record of compliance and
  a reliable system of accounting and internal
  control.
• Such importers declarations can be accepted for
  systems appraisal , bypassing the assessment by
  officers.
• Systems appraisal with reduced level of
  examination as in Green channel scheme today will
  lead to substantial reduction in time for
  clearance and thereby reducing transaction cost.
• Risks are addressed by applying Post clearance
  audit for all such clearances under ACCP.
• Will release a large chunk of officers for
  application in high risk areas.

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ACCP

• Will be in addition to present systems appraisal.
• Applicable only to EDI clearances.
• Selection is based on the reliability of the
  importer irrespective of the goods imported by
  him.
• All importers under this scheme will be subjected
  to Post Clearance audit.

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Importer Selection Criteria for ACCP

• Established Importers Who have been importing
  for minimum of two years.
• Proven record importer must have clean track
  record with respect to customs, excise and all
  other fiscal statutes.
• Minimum Volume has to be port specific, broadly
  importers paying duty of Rs 1 Crore and above and
  filing at least 25 B/Es in a year.
• Reliable internal control Importer conforming to
  recognized accounting standards.

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ACCP
GATEWAY

• EDI SERVER for ACCP Importers
• BE Declaration accepted.
• Duty calculated.
• BE generated.
• TR6 generated.
• Assessment completed as per declaration.

• EDI SERVER for non ACCP
• BE No is generated and BE sent to Group.
• B/E is assessed by the Group.
• TR6 sent to bank.
• BE sent to Shed for examination.

EDI
CHA/IMP KEYING IN BE DETAILS
SERVICE CENTRE
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ACCP Examination procedure
We need suitable legislative changes to give
legal cover to assessments under ACCP
BANK

• Goods Registration
• Documents are verified w.r.t declaration of ACCP.
• Ensures complete description is given in BE.
• Ensure completeness and accuracy of information.
• Enforce restrictions/prohibitions under EXIM
  policy.

DUTY
CHA/IMP
Checks NON ACCP should not be allowed to use
this scheme. Digital signatures/ directory of
ACCP users to be maintained in EDI. Directory to
be updated after due verification and site visits.

• Examination
• System will randomly select 5 of BEs..
• Rest will be cleared without examination.
• Risk based examination to be introduced in due
  course
• BEs from non ACCP importers sent for normal
  examination.

CUSTOMS GOOD REGISTRATION
Remaining formalities like bond/BG, SVB,
Provisional assessment can be done after out of
charge
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Transition management

• Launch Pilots at select Air Cargo
  Complexes/Custom Houses in agreement with
  selected importers.
• Evaluate the Pilots
• Consultation with Trade bodies
• Training of officers
• Full scale implementation