Page 134 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

Unit 6: Custom Clearance of Import and Export Cargo

2. Raising ........................ from customs is an important contributor to various expenses of the Notes
Central Government and customs duty is one of the main contributors to exchequer.
3. Under the .......................... system, the importer does not have to submit any formal or
physical Bill of Entry, but it is generated in the computer system known as IGATE, which
generate a specific number for importer cargo clearance and is transmitted on all systems
automatically throughout India.
4. Under the non-EDI system, the importer has to submit the ............................ in different
copies in the given colour scheme,

5. The ............................ system is designed in such a manner that it helps the apprising officer
to assess the duty to be payable after taking note of various exemptions/export promotion
schemes of the Government of India.
6. The Central Board of Customs and Excise on the advice of the Ministry of Commerce has
provided the .............................. clearance facility to some large and status holder exporters.

7. In case of advance filing of bill of entry, the importer, under the provision of the Customs
Act, is required to submit .................... copies of the bill of entry.

8. The importer can pay the duty on cash or DD in the designated banks of customs and can
also make payment through ...................... Challans in the treasury

9. The beauty of this electronic system is that it promotes .............................. and also helps in
processing the bill of entry at high speed.

10. In cases where the importer is located at far flung places such as Delhi or Ludhiana, the
trans shipment of cargo is allowed ...................... payment of duty by CHA.
6.2 Custom Clearance of Export Cargo

For clearance of export goods, the exporter or his agents have to undertake the following
formalities:

6.2.1 Registration

In case of export of cargo, the exporters will have to obtain mandatory PAN-based Import
Export Code no. (IEC Code) from the Directorate General of Foreign Trade as it is essential and
legal to mention the IEC code number on the shipping bill, which will be submitted by exporter
or his freight forwarder to the customs authorities for Let Export Order (L.E.O.). However, in
case of the EDI System, the computer system will automatically generate the PAN-based IEC
Code number of the importer through ICES Gateway system from the DGFT database. In addition
to the above, the exporter is also needed to open an account with an authorized foreign exchange
dealer, as he has to realize his export proceeds through his authorized bank. The RBI has abolished
registration with itself for foreign exchange since the introduction of PAN-based IEC code
number since 2000. Sometimes, the customs authorities ask the importer to open a current
account in the designated bank for credit of any drawback incentive.

Registrations of Airline, Shipping Line, Steamer Agent, port or airport is essential with the
customs departments as their details such as vessel number has to be put into the Customs
System. If any airlines or shipping company is not registered, the shipping bill of exporter will
not get processed, as the details of shipping company will not be available to customs officials.
The system will withhold the shipping bill. Hence it is recommended that all shipping

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