Page 165 - DCOM308_DCOM502_INDIRECT_TAX_LAWS

Indirect Tax Laws

Notes foot of the bill of entry and any misdeclaration/incorrect declaration has legal consequences,
and due precautions should be taken by importer while signing these declarations.
8. Under the EDI system, the importer does not submit documents as such for assessment but
submits declarations in electronic format containing all the relevant information to the Service
Centre. A signed paper copy of the declaration is taken by the service centre operator for non-
repudiability of the declaration. A checklist is generated for verification of data by the importer/
CHA. After verification, the data is submitted to the system by the Service Centre Operator and
system then generates a B/E Number, which is endorsed on the printed checklist and returned
to the importer/CHA. No original documents are taken at this stage. Original documents are
taken at the time of examination. The importer/CHA also need to sign on the final document
after Customs clearance.

9. The first stage for processing a bill of entry is what is termed the noting of the bill of entry, vis-
à-vis, the IGM filed by the carrier. In the non-EDI system the importer has to get the bill of entry
noted in the concerned unit which checks the consignment sought to be cleared having been
manifested in the particular vessel and a bill of entry number is generated and indicated on all
copies. After noting the bill of entry gets sent to the appraising section of the Custom House for
assessment functions, payment of duty etc. In the EDI system, the Steamer Agents get the manifest
filed through EDI or by using the service centre of the Custom House and the noting aspect is
checked by the system itself – which also generates bill of entry number.
10. After noting/registration of the Bill of entry, it is forwarded manually or electronically to
the concerned Appraising Group in the Custom House dealing with the commodity sought to
be cleared. Appraising Wing of the Custom House has a number of Groups dealing with
earmarked commodities falling under different Chapter Headings of the Customs Tariff and
they take up further scrutiny for assessment, import permissibility etc. angle.

Assessment
11. The basic function of the Assessing Officer in the appraising groups is to determine the duty
liability taking due note of any exemptions or benefits claimed under different export promotion
schemes. They have also to check whether there are any restrictions or prohibitions on the
goods imported and if they require any permission/license/permit etc., and if so whether these
are forthcoming. Assessment of duty essentially involves proper classification of the goods
imported in the customs tariff having due regard to the rules of interpretations, chapter and
sections notes etc., and determining the duty liability. It also involves correct determination of
value where the goods are assessable on ad valorem basis. The Assessing Officer has to take note
of the invoice and other declarations submitted alongwith the bill of entry to support the
valuation claim, and adjudge whether the transaction value method and the invoice value
claimed for the basis of assessment is acceptable, or value needs to be redetermined having due
regard to the provisions of Section 14 and the Valuation Rules issued thereunder, the case law
and various instructions on the subject. He also takes note of the contemporaneous values and
other information on valuation available with the Custom House.

12. Where the appraising officer is not very clear about the description of the goods from the
document or as some doubts about the proper classification, which may be possible only to
determine after detailed examination of the nature of the goods or testing of its samples, he may
give an examination order in advance of finalisation of assessment including order for drawing
of representative sample. This is done generally on the reverse of the original copy of the bill of
entry which is presented by the authorized agent of the importer to the appraising staff posted
in the Docks/Air Cargo Complexes where the goods are got examined in the presence of the
importer’s representative.
13. On receipt of the examination report the appraising officers in the group assesses the bill of
entry. He indicates the final classification and valuation in the bill of entry indicating separately

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