Excise/Custom

Implementation of automated clearance on pilot basis at two customs locations

Implementation of automated clearance on pilot basis at two customs locations- Chennai Customs House and Jawaharlal Nehru Customs House from 06.02.2020.

Circular No.05/2020-Customs

F. No.450/26/2019-Cus IV
Government of India
Ministry of Finance
Department of Revenue
(Central Board of Indirect Taxes & Customs)
*****

Room No.229A, North Block, New Delhi.

New Delhi, dated the 27th of January, 2020

To,
All Principal Chief Commissioners/ Chief Commissioners of Customs/ Customs (Preventive),
All Principal Chief Commissioners/ Chief Commissioners of Customs & Central tax,
All Principal Commissioners/ Commissioners of Customs/ Customs (Preventive),
All Principal Commissioners/ Commissioners of Customs & Central tax,

Subject: ‘Implementation of automated clearance on pilot basis’–reg.

Sir/Madam,

Kind reference is invited to the 1st proviso to Section 47(1) of the Customs Act 1962. The said section along with the proviso reads as-

`SECTION 47. Clearance of goods for home consumption – (1) Where the proper officer is satisfied that any goods entered for home consumption are not prohibited goods and the importer has paid the import duty, if any, assessed thereon and any charges payable under this Act in respect of the same, the proper officer may make an order permitting clearance of the goods for home consumption:

Provided that such order may also be made electronically through the customs automated system on the basis of risk evaluation through appropriate selection criteria`.

2. In this regard, Board had issued Circular No 09/2019-Customs dated 28.02.2019. Para 3 of the said circular provides that in terms of the 1st proviso to Section 47(1), the Customs Automated System would electronically give clearance to Bill(s) of Entry, on completion of Customs Compliance Verification (CCV) and payment of duty by the importer.

3. The important features of the automated clearance are as follows

I. The facility will only be for ICES locations where RMS is enabled and fully functional.

II. All the Customs Compliance Verification (CCV) requirements under the Customs Act, rules,instructions etc will be done by the designated proper officer of Customs.

III. The CCV would operate even while duty has not been paid or payment is under process.

IV. After completion of CCV,the proper officer of customs,on satisfaction that the goods are ready for clearance, will confirm the completion of the CCV for the particular Bill of Entry in the Customs System.

V. On confirmation of payment of applicable duty, the Customs System will then electronically give clearance to the Bill of Entry.

4. Board has now decided to implement the facility of automated clearance as envisaged in 1st proviso to Section 47(1) in ICES. However, the facility will be initially rolled out on a pilot basis at two customs locations- Chennai Customs House and Jawaharlal Nehru Customs House from 06.02.2020. Thereafter, the facility will be reviewed and further expanded on PAN India
basis at all Customs EDI locations where RMS is enabled and functional.

5. The detailed requirements and changes in ICES shall be communicated to field formations by way of ICES- Advisory from DG Systems.

6. Suitable Trade Notice/ Standing order may please be issued to guide the trade and industry. Difficulty, if any, faced in implementation may be brought to the notice of Board immediately.

Yours faithfully,

(Eric C Lallawmpuia)
OSD Cus IV

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