Page 231 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

International Trade Procedures and Documentation

Notes prevention is a strategic business move. As a part of their program, they make sure that no one
has too much freedom away from accountability. Checking employee backgrounds is a major
part of creating the right team of trustworthy people.
10.4 Leasing of Containers

Containers are normally taken on lease by carriers from manufacturers of containers. If containers
are taken on lease for just one voyage, it is called Trip Lease and if they are taken for long period
such as 2 to 5 years, it is called Long-term Lease.
Another system is the Financial Lease, which works like the hire purchase system. A fixed
amount is paid by the lessee at fixed intervals and at the lease period, the ownership of container
is transferred to the leased.

10.4.1 Present Procedure of Clearance of Goods at Ports

The Shipping lines/steamer Agents/carriers/Consol Operators file the Import General
Manifest (IGM) in accordance with Section 30 of the Customs Act, 1962. After filing the
IGM and on arrival of the goods, Custom House Agent/Importer files Bill of Entry (cargo
declaration) in terms of Section 46 of Customs Act, 1962. The first stage for processing a
Bill of Entry is noting/registration of Bill of Entry (B/E). The B/E is then forwarded to the
concerned Appraising group in the Custom House dealing with the commodity sought to
be cleared.
The assessing officer in the appraising group assesses the duty liability, taking due note of
any exemption or benefits claimed by the importer. Necessary checks regarding any
restriction or prohibition on the goods imported are followed. In case of doubt, the officer
may give an examination order in advance of finalization of assessment. Otherwise, the
B/E is finally assessed and the importer deposits the duty calculated with the nominated
banks.

After assessment the B/E is passed on to the Shed Appraiser/Superintendent for examination
of goods along with the B/E. The Shed Inspectors/examiners examine the goods and enter
their report on the B/E with signature of the importer/CHA in token of examination in
their presence. After completing the examination of the goods, the shed Appraiser/
Superintendent would give order for “Out of Charge”.

However, in rare cases, if some discrepancy is found between the declaration and the
result of examination of cargo, the Assistant Commissioner/Deputy Commissioner (AC/
DC) revises the assessment on the basis of examination report.
After issuance of Out of Charge order on the B/E, the importer presents the same to the
Custodian who in turn issues the Gate Pass after Verification of correctness of Bill of
Lading and number of packages. The importer/CHA presents importer’s copy of the B/E
and the Custodian Gate Pass to the Customs Officer at the gate while taking the goods out
of the Customs area.
As regards exports, Shipping Bills are required to be filed along with other documents
such as invoice, Application for Removal (ARE), packing list, etc. The Assessing Officer in
the export department checks the value of the goods, classification, rate of duty and others
with regards to different provisions and the Foreign Trade Policy and related documents.
After the Shipping Bill is passed by export department, the exporter presents the goods to
the Shed Appraiser (Export) for examination. The examination is carried out under
supervision of Shed Appraiser/Superintendent (Export) and after examination, officer
gives a “Let Export” order, after which exporter may load the goods into vessel/aircraft
under supervision of Customs Officer.

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