CUSTOMS CIRCULAR

Self assessment scheme for 
accelerated clearance of import / export cargo.

I am directed to refer to para 185 of the speech of the Hon'ble Minister of Finance and Company Affairs while presenting the Budget for 2003-2004.  The relevant paragraph is reproduced below :-

"To bring our customs clearance procedures at par with best international practices, I propose to introduce, this year itself, a self assessment scheme for importers and exporters.   Briefly stated, under the self-assessment scheme, the importer himself / herself will determine the classification of goods, including claims for any exemption benefit, and the system will calculate the duty based on his/her declaration.  Physical inspection of imported goods will be done by using risk-assessment and management techniques on a computer-based system and not on the orders of customs examining staff.  Further, the existing system of concurrent audit of import documents will be placed by post-clearance audit, as prevalent in developed countries".

2.   To begin with, it has been decided by the Board to introduce a self-assessment scheme called the Accelerated Clearance of Import     and Export scheme (ACS).  The salient features of the ACS are as follows :-

1       IMPORTS

(1)    The importer himself / herself will determine the 8 digit classification, claim the relevant exemption benefit, declare the correct  value    

         as reflected in the invoice and the EDI system will calculate the duty based on such declaration.  There will be no physical  

         examination of the goods.

(2)    The following categories of importers would be eligible to avail this scheme [with the exemption mentioned in sub-papa (4)] -

           (a)   All Status Holders under the EXIM policy 

           (b)   Central and State Government Public Sector Undertakings.

           (c)   All importers (including manufacture-importers) who have been importing goods for the past two years from a particular 

                  customs station and have filed at least 25 Bs/E during the preceding year at that particular customs station.

(3)    The following imported goods would be eligible to be assessed under this scheme, where covered by the notifications  

        mentioned             

        alongside, irrespective of the category of  the importer :-

        (a)     Goods already covered under the present Systems Appraisal, So far as Gold is concerned the dock/shed appraiser will 

                 reject the green channel and would physically examine the gold consignment of verity whether the imported gold is 

                 eligible for concessional duty at the rate of  Rs. 100 per 10 gms.

         (b)    Crude petroleum and petroleum products (tariff heading 27090000)

         (C)    Fertilizers (notfn no 21/2002-Cus dated 1.3.2003- Cus dt 1.3.2002, sl no 60)

         (d)     Bulk imports of sulphur (notfn no 21/2002-Cus dt 1.3.2002, sl no 60)

         (e)     Rock Phoshate (tariff heading 25101010, 25102010)

         (f)      Cereals (notfn no 21/2002 - Cus dt 1.3.2002 sl no. 11, 18, 20, 22)

         (g)     Project Imports ( notif no 21/2002 - Cus dt 1.3.2002 sl nos 399,400, 401, 401A)

 (4)   The following types of goods would not be covered for clearance under the scheme, irrespective of the importer :-

        (a)    Primary agricultural  products and edible food products requiring no objection certificate from plant quarantine, port health 

                authority, sanitary duties.

        (b)    Goods leviable to to aniti dumping or safeguard duties.

        (c)    Second - hand machinery.

        (d)    Ball bearings.

        (e)    Scrap, waster, dross and ash or sing of all ferrous and non-ferrous metals.

        (f)     Rags and Scrap/waste of any other material such as plastic, paper etc.

        (g)    Goods requiring any test to comply with provisions of Allied Acts/Rules/Regulations.

        (h)    Drugs, Pharmaceuticals including formulations.

        (i)     Gold, diamond, platinum and other precious stones.

        (j)     Goods requiring for assessment, production of Bonds, Bank Guarantees, Undertaking, Certificate, Licenses etc.

II.      Exports

     (1)     So far as exports are connected, for the following categories of exporters the declaration made in the shipping bills will be  

              accepted without any scrutiny and there will be no physical examination of the export consignment [Board's Circular No. 6/2002 

              dated 23.1.2002 stands modified accordingly]

              (a)   All Status holders under the EXIM Policy.

              (b)   100 % EOUs, EHTPs and STPs whose goods have been stuffed / sealed in the presence of Central Excise / Customs  

                     officer.

              (c)   Central or State Public sector undertakings.

              (d)   Manufacturer - exporters who have been exporting for over two years from a particular customs station and have filed at 

                     least 25 Shipping Bills at the said customs station during the preceding year.

              (e)   Bulk (loose) exporters of any goods.

      (2)    Goods requiring for assessment for Shipping Bills, production of Bonds, Bank Guarantees, Undertaking, Certificate, Licenses 

              etc. would not be covered for clearance under the scheme, irrespective of the category of the exporter.

      (3)    This scheme will apply only to those importers / exporters in whose case no proceedings have been initiated against them or 

              their directors / partners or proprietors, during the last three years under the provisions of the Customs / Central Excise / FEMA 

              Act, Rules or Regulations.  (Technical violations will not be considered a disqualification).  

      (4)    Before availing this scheme the importer / exporter should file an application as detailed in Appendix 1 of this Circular, with the 

              jurisdictional Commissioner of Customs / Central Excise who will convey his approval, or otherwise, within fifteen days of the   

              receipt of the application.

      (5)    The importer / exporter desirous of availing this scheme would be subject to post clearance (import / export ) audit by the 

              Customs / Central Excise Departments. 

      (6)   It may, however, be noted that in cases of specific intelligence / information or alert notice issued by any enforcement 

             agencies, physical examination of goods operating under this scheme, may be resorted to with the prior approval of an officer 

             not below the rank of Joint Commissioner of Customs / Central Excise.

      (7)   Initially this scheme will be operated on a pilot basis at Air Customs (both export and import ) at Sahar, ICD Tughlakabad, New 

             Delhi and Chennai Sea Customs (both import and Export).

      (8)   This scheme, so far as it relates to IMPORTS, will come into operation with immediate effect.  Wide publicity may be given 

             through trade notices, seminars and interactive sessions with trade associations and CHAs to explain the requirement and 

             benefits of the scheme.  The officers and staff posted in the assessment groups handling the work relating to clearance and audit 

             should also be trained.  The Commissioners should take special care and make proper arrangements for the success of this 

             scheme.

      (9)   This scheme would be reviewed on the basis of the actual working and would be extended to other customs stations where EDI 

             System is operational, with appropriate modifications wherever necessary.

      (10) Difficulties if any experienced or anticipated in implantation of the scheme should be brought to the notice of the Board  

             Immediately.

                                                                                                                                          Sd/-

                                                                                                                                  (D.S Garbyal)

                                                                                                                    Under Secretary to the Govt. of India

 F.No. 450/30/2003-Cus - IV

 Dated : 4 th April 2003.

 Issued by :

 Ministry of Finance and Company Affairs

 Department of Revenue 

 Central Board of Excise and Customs

 New Delhi.

_________________________________________________________________________________________________________________________

APPENDIX - I

     1.     Name of Importer / exporter

     2.     IE Code of the importer / exporter

     3.     Name of the Custom House / ACC / ICD / CFS.

     4.     Importing in the customs stations since.

     5.     Number of B / E, S / Bs filled in 2002 ..... 2001.....

     6.     If Manufacturer exporter / importer -

                     i.      Address of the factory / factories with CE registration No.

                    ii.      E - Mail address, if any

     7.     Name, designation of the authorized signatory.

     8.     Specimen signature of authoirzed signatory.

     9.     Telephone number / mobile number / E-mail address of the authorized signatory.

    10.     Name and address of the CHs authorized to file B/E, S/B on behalf of the importer / exporter.

    11.     CHAs license number ........................ LOI number / ........

    12.     Has the importer / exporter or any of his / her Director / Partner been proceeded against under the provisions of Customs / Central   

              Excise / FEMA Acts.  Rules and Regulations in the last three years...... Yes / No.

              If yes, details of cases may be furnished.

    13.     Does the importer / exporter follow recognized accounting standards, if so, details thereof.

    14.     Briefly indicate the internal controls followed for accounts management.

    15.     I am willing to submit to post clearance audit and will undertake to produce the records, when asked for by the Department.

    16.     I agree to maintain all records / registers for a period of five years. 

    17.     I / We hereby certify that all the above statements are true to the best of my knowledge.  I understand that if any part of this declaration if 

              found to be false at any time, the facility of Accelerated Clearance of Import and Export (ACS) will be liable to be cancelled / 

              withdrawn.  

                                                                                                                                                    Signature of the authorized Signatory

                                                                                                                                                          Name_____________________