Procedure for computerized processing of Shipping Bills under the

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Procedure for computerized processing of Shipping Bills under the

    To: Shri Sumeer Sekhri, Planet India, New Delhi Date: 1-10-2004 From: Shri R. Venkatesh, Assistant Director , Texprocil

    Please host under the following sub heading the material sent herewith under EXPORT PROMOTION SCHEMES. (public notice 59)

    “Procedure for computerized processing of Shipping Bills under EDI system - at CFS, MULUND”.


    Procedure for computerized processing of Shipping Bills under the Indian Customs EDI system (ICES) - Exports - at CFS, MULUND. ( notified vide PUBLIC NOTICE NO: 59 /2004 dated 9-9-2004 by O/O the Commissioner of Customs, Mumbai.

    It is brought to the notice of all exporters, importers, CHAs, Trade and general public that

    the computerized processing of Shipping Bills under the Indian Customs EDI (Electronic Data Interchange) System-(Exports), will commence w.e.f. 15.09.2004 The computerized processing of shipping bills would be in respect of the following categories:

    1. Duty Free white Shipping Bills

    2. Dutiable Shipping Bills (Cess)

    3. DEEC Shipping Bills

    4. EPCG Shipping Bills

    5. DEPB Shipping Bills

    6. DFRC Shipping Bills

    7. 100 %EOU Shipping Bills

    8. Re export , Jobbing Shipping Bills

    9. Drawback Shipping Bills

     10. Other NFEI Shipping Bills.

    The procedure to be followed in respect of filing of Shipping Bills under the Indian Customs

    EDI System-Exports at CFS-Mulund shall be as follows: -


    2.1 Exporters / CHAs are required to register their IE Codes, CHAs Licence Nos., and the Bank A/C No. (for credit of Drawback amount) in the Customs Computer Systems before an EDI Shipping Bill is filed.

    2.2 Exporters/CHAs would be required to submit at the Service Centre the following documents:

    ; A declaration in the specified format

    ; SDF declaration

    ; Quota / Inspection certificate

    ; Drawback/DEEC/DFRC/DEPB Declarations etc., as applicable

    2.3 The formats should be duly completed in all respects and should be signed by the exporter or his authorised CHA. Forms, which are incomplete or unsigned, will not be accepted for data entry.

    2.4 Initially, data entry for Shipping Bills will be allowed to be made only at the Service Centre. After the exporters/CHAs become conversant with the EDI procedures, the option of Remote EDI System would also be made available. In the Remote EDI System (RES) Exporters/CHAs can electronically file their shipping bills from their offices.

    2.5 The schedule of charges to be levied for data entry at the Service Centre is as follows: -

    Charges for Shipping Bills having up to five items Rs.60

    Charges for additional block of five items Rs.10

    Amendment fees (for a block of five items) Rs.10

    Printing of a Shipping Bill for Remote EDI Rs.20


    2.6 The Service Centre operators shall carefully enter the data on the basis of declarations made by the CHAs/exporters. After completion of data entry, the checklist will be printed by the Data Entry Operator and shall be handed over to the exporters/CHAs for confirmation of the correctness. Thereafter, the CHA/Exporter will make corrections, if any, in the checklist and return the same to the operator duly signed. The operator shall make the corresponding corrections in the data and shall submit the Shipping Bill. The operator shall not make any amendment after generation of the checklist and before submission in the system unless the corrections made by the CHAs/exporters are clearly indicated on the checklist against the respective fields and duly authenticated by CHA/Exporter's signatures.

    2.7 The system automatically generates the Shipping Bill number. The operator shall endorse the same on the checklist in clear and bold figures. It should be noted that no copy of the Shipping Bill would be available at this stage.

    2.8 The Declarations would be accepted at the Service Centre from 10.00 hrs to 16.30 hrs. Declarations received up to 16.30 hrs will be entered in the computer system on the same day.

    2.9 The validity of the shipping bill in EDI System is fifteen days only. After expiry of fifteen days from the date of filing of shipping bill, the exporter has to file the declaration afresh.


    3.1 Under the revised EDI procedure, there would be no GR-1 Procedure. Exporters (including CHAs) would be required to file a declaration in the form SDF . It would be filed at the stage of "goods arrival". One copy of the declaration would be attached to the original copy of the S/B generated by the system and retained by the Customs. The second copy would be attached to the duplicate S/B (the exchange control copy) and surrendered by the exporter to the authorised dealer for collection/ negotiations.

    3.2 The exporters are required to obtain a certificate from the bank through which they would be realising the export proceeds. If the exporter wishes to operate through different banks for the purpose, a certificate would have to be obtained from each of the banks. The certificate(s) would be submitted to Customs and registered in the system. These would have to be submitted once a year for confirmation or whenever the bank is changed.

    3.3 In the declaration form to be filed by the exporters for the electronic processing of export documents, the exporters would need to mention the name of the bank and the branch code as mentioned in the certificate from the bank. The Customs will verify the details in the declaration with the information captured in the system through the certificates registered earlier.

    3.4 In the case of S/Bs processed manually, the existing arrangement of filing GR 1 forms would continue.


    4.1 The processing of S/Bs involving allocation of ready-made garments quota by the Apparel Export Promotion Council (AEPC) will change with the introduction of the system. The quota allocation label will be pasted on the export invoice instead of S/B. Allocation number of AEPC would be entered in the system at the time of S/B data entry. The quota certification on export invoice should be submitted to Customs along with other original documents at the time of examination of export cargo.

    4.2 As a transitional measure, AEPC certification even on S/B form would be accepted. However, in these cases, S/B number should be indicated on the invoice when goods are presented for examination. This transitional facilitation measure will be available for a period of two months i.e. up to 30th November, 2004.

    4.3 For determining the validity date of the quota, the relevant date would be the date on which the full consignment is presented for examination and the date is recorded in the system.

    4.4 The certification of other agencies, such as, the Cotton Textiles Export Promotion Council; the Wildlife Inspection Agency under CITES; the Engineering Export Promotion Council; the Agricultural Produce Export Development Agency (APEDA), the Central Silk Board and the All India Handicraft Board should also be obtained on the invoice. Similarly, the no objection of the Asst. Drug Controller and of the Archaeological of Survey India would be obtained on the invoice.

    The transitional arrangements would be the same as in the case of AEPC certification. 4.5 The exporters would have to make use of export invoice or such other documents as required by the Octroi Authorities for the purpose of octroi exemption.


    5.1 The existing procedure of permitting entry of goods, brought for the purpose of examination (and subsequent "Let export" order), in the CFS on the strength of S/B shall be discontinued. The CONCOR will permit entry of the goods on the strength of the checklist, the data entry form and the declaration. The CONCOR would endorse the quantity of goods entering the CFS on the reverse of the checklist.

    5.2 The goods should be brought for examination within 15 days of filing of declaration in the Centre. In case of delay, a fresh declaration would need to be filed.

    5.3 If at any stage subsequent to the entry of goods in CFS, it is noticed that the declaration has not been registered in the system, the exporters and CHAs will be responsible for the delay in shipment of goods and any damage, deterioration or pilferage, without prejudice to any other action that may be taken.


    6.1 The S/B shall be processed by the system on the basis of declaration made by the exporter. However, the following S/B shall require clearance of the Assistant Commissioner/ Deputy Commissioner (AC/DC Exports): -

    I. Duty free S/B for FOB value above Rs. 10 lakh

    II. Free Trade Sample S/B for FOB value above Rs. 25,000

    III. Drawback S/B where the drawback exceeds Rs. one lakh

    6.2 Subject to the provisions of para 20.3 of this PN, the following categories of Shipping Bills shall be processed by the Appraiser (Export Assessment) first and then by the Asstt/Deputy Commissioner:

    IV. DEEC

    V. DEPB

    VI. DFRC

    VII. EOU


    6.3 Apart from verifying the value and other particulars for assessment, the AO/ AC/ DC may call for the samples for confirming the declared value or for checking classification under the Drawback Schedule / DEEC / DEPB / DFRC / EOU etc,. He may also give special instruction for examination of goods.

    6.4 If the S/B falls in the categories indicted in para 6.1 above, the exporter should check up with the query counter at the Centre whether the S/B has been cleared by Assistant Commissioner/ Deputy Commissioner, before the goods are taken for examination. In case AC/DC raises any query, it should be replied through the Service Centre or, in case of EDI connectivity, through terminals of the exporter/CHA. After all the queries have been satisfactorily replied to, AC/DC will pass the S/B.


    7.1 On receipt of the goods in the Export Shed in the CFS, the exporter will contact the System Examining Officer (SEO) and present the checklist with the endorsement of CONCOR on the declaration, along with all original documents such as Invoice, Packing List, ARE-1 (AR-4) etc. He will also present additional particulars in the prescribed form .

    7.2 SEO will verify the quantity of the goods actually received against that entered in the system. He will enter the particulars in the system. The system would identify the Examining Officer (if more than one are available) who would be carrying out physical examination of goods. The system would also indicate the packages (the quantity and the serial numbers) to be subjected to examination. SEO would write this information on the checklist and hand it over to the exporter. He would hand over the original documents to the Examining Officer. No examination orders shall be given unless the goods have been physically received in the Export Shed. It may, however, be clarified that Customs may examine all the packages/goods in case of any discrepancy.

    7.3 The Examining Officer may inspect and/or examine the shipment, as per instructions contained in the checklist and enter the examination report in the system. There will be no written examination report. He will then mark the Electronic S/B and forward the checklist along with the original documents to the Appraiser / Supdt. in charge. If the Appraiser / Supdt. is satisfied that the particulars entered in the system conform to the description given in the original documents (including AEPC quota and other certifications) and the physical examination, he will proceed to give "Let Export" order for the shipment and inform the exporter. The Appraiser / Supdt. would retain the checklist, the declaration and all original documents with him.

    7.4 In case of any variation between the declaration in S/B and the documents or physical examination report, the Appraiser / Supdt. will mark the electronic S/B to AC/DC Exports. He will also forward the documents to AC / DC and advise the exporters to meet the AC / DC for further action regarding settlement of dispute. In case the Exporter agrees with the views of the Department, the S/B would be processed finally. Where the exporter disputes the views of the Department, the case would be adjudicated following the principles of natural justice.


    8.1 As soon as the Shed Appraiser/ Superintendent gives "Let Export" order, the system would print 6 copies of the Shipping Bills in case of Free and scheme Shipping Bills. In case of DEPB there are 7 Shipping Bills. If the Shipping Bill (DEPB) is assessed provisionally, then E.P copy will be generated only after AC / DC finalises the assessment. On all the copies, the Appraiser / Shed Superintendent will sign. On the examination report the Appraiser / Shed Superintendent, Examination Officer as well as exporter’s representative/ CHA will sign. Name and ID Card number of the Exporter’s representative / CHA should be clearly mentioned below his signature.

8.2 The distribution of Shipping Bills is as follows:

DEPB Scheme Bills Other BillsPB Scheme Bills

     Other Bills

1. Exporter's Copy 1. Exporter's Copy

2. Custom's Copy 2. Custom's Copy

3. Exchange Control copy 3. Exchange Control Copy

4. Scheme Bill Copy 4. E.P. Copy

5. E.P. Copy 5. TR-1, TR-2 Copies

6. TR-1, TR-2 Copies

Total 7 Copies Total 6 Copies

    8.3 The original AEPC quota and other certificates will be retained with the Shipping Bills and recorded in the Export Shed.


    9.1 For the time being the present manual system for payment of Merchant Overtime (MOT) charges will continue.

    9.2 MOT charges will be required to be paid by exporter when the goods are examined by Customs for allowing "Let Export" beyond the normal office hours. No charges would be required to be paid on normal working days when the examination itself is being done for "Let Export" up to 05.00 P.M. In addition, no charges would be required to be paid if the exporter wants the goods to be entered in CONCOR (CFS) only for meeting the quota deadlines.


    10.1 Where the Appraiser of Customs orders for samples to be drawn and tested, the Examining Officers will proceed to draw two samples from the consignment and enter the particulars thereof along with name of the testing agency in the system. No registers will be maintained for recording dates of samples drawn. Three copies of the test memo will be prepared and signed by the

    Examining Officer, the Appraiser and the exporter. The disposal of the three copies would be as follows: -

    i. Original to be sent along with the sample to the testing agency. ii. Duplicate copy to be retained with the second sample.

    iii. Triplicate to be handed over to the exporter.

    10.2 AC/ DC may, if he deems necessary, order for sample to be drawn for purposes other than testing such as visual inspection and verification of description, market value enquiry etc.

    11 QUERIES

    11.1 With the discontinuance of the assessment of S/B in the Export Department, there should not be any queries. The exporter, during examination, can clarify doubts, if any. In case where the need arises for a detailed answer from the exporter, a query can be raised in the system by the Appraiser, but would need prior approval of AC/DC (Exports). The S/B will remain pending and cannot be printed till the exporter replies to the query to the satisfaction of the Assistant Commissioner/Deputy Commissioner.


    12.1 Corrections/amendments in the checklist can be made at the Service Centre provided the system has not generated the S/B number. Where corrections are required to be made after the generation of the S/B No. or, after the goods have been brought in the docks/CFS, amendments will be carried out in the following manner.

    1. If the goods have not yet been allowed "Let Export", Assistant

    Commissioner/Deputy Commissioner may allow the amendment.

    2. Where the "Let Export" order has been given, the Additional/Joint

    Commissioner (Exports) would allow the amendments.

    12.2 In both the cases, after the permission for amendments has been granted, the Assistant / Deputy Commissioner (Exports) will approve the amendments on the system. Where the print out of the S/B has already been generated, the exporter will surrender all copies of the Shipping Bill to the Appraiser for cancellation before amendment is approved in the system.



    13.1 AC/DC (Export) will give permission for issue of short shipment certificate, shut out or cancellation of S/B, on the basis of an application made by the exporter. The S/B particulars would

    need to be cancelled / modified in the system before granting such permission. AC/DC should

    check the status of the goods, before granting permission.


    14.1 If the freight/insurance amount undergoes a change before "Let Export" is given,

    corresponding changes would also need to be made in the S/B with the approval of AC /DC

    Exports. But if the change has taken place after the "Let Export" order, approval of Additional/Jt.

    Commissioner would be required. Non-intimation of such changes would amount to mis-declaration

    and may attract penal action under the Customs Act, 1962.


    15.1 Duplicate print out of EDI S/B cannot be allowed to be generated if it is lost, since extra copy

    of Shipping Bills are liable to be misused. However, a certificate can be issued by the Customs

    stating that "Let Export" order has been passed in the system to enable the goods to be accepted

    by the Shipping Line, for export. Drawback will be sanctioned on the basis of the "Let Export" order

    already recorded on the system.


    16.1 Similarly, re-prints can be allowed where there is a system failure, as a result of which the

    print out (after the "Let Export" order) has not been generated or there is a misprint. Permission of

    AC/DC (Exports) would be necessary for the purpose. The misprint copy shall be cancelled before

    such permission is granted.


    17.1 For export items, which are subject to export cess the corresponding serial number of the

    Cess Schedule should be clearly mentioned. A printed challan generated by the system would be

    handed over to the exporter. The cess amount indicated should be paid in the Bank of India,

    Extension Branch of the CFS, under a receipt.


    18.1 The scheme of computerised processing of Drawback claims under the Indian Customs EDI

    System-Exports will be applicable for all exports through CFS.

    18.2 In respect of goods to be exported under claim for Drawback, the exporters will file declaration

    in the form . The declaration in the form would also be required to be filed when the export goods

    are presented at the Export Shed for examination & "Let Export".

    18.3 The exporters who intend to export the goods through CFS under claim for Drawback are

    advised to open their account with the Bank Of India branch situated at CFS-Mulund. This is required to be done to enable direct credit of the Drawback amount to the exporter's account, obviating the need for issue of separate cheques by post. The exporters are required to indicate their Account number opened with the Bank Of India branch at CFS-Mulund. It would not be

    possible to accept any shipment for export under claim for Drawback in case the account number of the exporter in the bank is not indicated in the declaration form.

    18.4 The exporters are also required to give their account number along with the details of the bank through which the export proceeds are to be realised.

    18.5 Export declarations involving a drawback amount of more than rupees one lakh will be processed on screen by the AC/DC before the goods can be brought for examination and for allowing "Let Export".

    18.6 The drawback claims are sanctioned subject to the provisions of the Customs Act 1962, the Customs and Central Excise Duties Drawback Rules 1995 and conditions prescribed under different sub-headings of the All Industry rates as per notification number 26/2003-Cus(NT) dated 1.4.203 as amended by notification number 12/2004-Cus(NT) dated 29/01/04.

    18.7 After actual export of the goods, the drawback claims will be processed through EDI system by the officers of Drawback Branch on first come first serve basis. There is no need for filing separate drawback claim. The claims will be processed based on the Train Summary/ Inward way Bill submitted by CONCOR. The status of the Shipping Bill and sanction of drawback claim can be ascertained from the "query counter" set up at the Service Centre. If any query has been raised or deficiency noticed, the same will be shown on the terminal and a printout of the query/deficiency may be obtained by the authorised person or the exporter from the Service Centre. The exporters are advised to reply to such queries expeditiously and such replies shall be got entered in the EDI system at the service centre. The claim comes in queue of the EDI system after reply to queries/deficiencies is entered by the service centre.

18.8 Shipping Bills in respect of goods under claim for drawback against brand rates would also be

    processed in the same manner, except that drawback would be sanctioned only after the original brand rate letter is produced before the designated customs officer in the office of Assistant/ Deputy Commissioner (Export) and is entered in the system. The exporter should specify the SS No. of drawback as 98.01 for provisional drawback .

    18.9 All the claims sanctioned in a particular day will be enumerated in a scroll and transferred to the Bank through EDI. The bank will credit the drawback amount in the Account of the exporter on the next day and will handle accounts of the exporters as per their instructions. Bank will also

    send a fortnightly statement to the exporters about the payments of their drawback claims.


    19.1 While filing information as per the format , Exporters are required to ensure that correct Group Code No. of the goods being exported and the item No. of relevant Group is clearly mentioned (item-wise details). The Exporters / CHAs are advised to fill Item No. in the same manner as given in the Public Notices issued by D.G.F.T.

    19.2 DEPB Credit in respect of items like formulations, injections etc of Group Code No.62 (Chemicals) are at a specific percentage of credit rate for the relevant bulk drug. For proper calculation of DEPB rate, Exporters/CHAs are advised to claim export under the specific Sl.No. if they are exporting injections and thereafter mention Sl.No. of Group Code 62 of the bulk drug of

    which such injections have been made. The system will calculate the said specific percentage of the DEPB rate of such bulk drugs, formulations of which are being exported.

    19.3 All the DEPB Shipping Bills having FOB value less than Rs.5 lakhs and / or DEPB rates less than 20% will be assessed by Appraiser/ Supt. (DEPB Cell). However, the Shipping Bills having FOB value more than Rs.5 lakhs and/ or credit rate 20% or more will be assessed by A.C./D.C (Export). Any query at the time of assessing by Appraiser (DEPB Cell) or A.C. /D.C.(Export) may be obtained from the Service Centre and reply to the query has to be furnished through Service Centre.

    19.4 If the Group Code No., Item No. and FOB value declared is accepted by the Appraiser/ Supt (DEPB Cell) or Assistant / Deputy Commissioner (Export), goods may be brought and entered in the system. The examining officer will feed the examination report and "Let Export" order will be given by Appraiser/Supt. in the EDI System. Seven copies of Shipping Bill will be printed for the purposes mentioned against each as under:

I Customs Copy: For record of Customs

ii Exporter's Copy: For record of Exporters

iii E.P. Copy For office of DGFT

iv DEPB Copy For use in the import cell of ICD Bangalore for registration of licence.

v Exchange Control Copy: For negotiating the export documents in bank

vi TR-1, TR-2 copies

    19.5 There is a provision for changing the Group Code No./Item No./Value for DEPB credit purposes and such changes will be reflected in the print out of the Shipping Bill. Such changes may be done by Appraiser/Supt (DEPB Cell), A.C./D.C. (Export) as well as by Appraiser/Supt (Exam). The credit will be allowed by the DGFT at the rate / value (for credit purposes only) as approved by Customs. The EP Copy of the shipping Bill shall be used by the Exporters to obtain DEPB licence from DGFT.

    19.6 In case, for credit purposes, the Exporter accepts the lower value as determined by Customs, such lower value will be entered by Appraiser (DEPB Cell), A.C./D.C. (Exports) or by Appraiser (Examination) for each item(s). Printout of Shipping Bills at item level will indicate for FOB value as well value for DEPB credit purposes. Exporters are required to apply for the DEPB Licence at th. B value accepted by Customs and not the value declared by them. However, as DEPB is issued on the basis of exchange rate applicable on the date of Let Export, Exporters are advised to apply for DEPB Licence at the value accepted by Customs at the time of export multiplied by exchange rate on the date of Let Export (LEO) (As per para 4.43 of EXIM Policy 2003 edition). 19.7 In case the Exporter does not accept the value determined by the Customs, the exports will be allowed provisionally after taking samples for market enquiry. The words "NOT VALID FOR DEPB" will be printed on all the copies of the Shipping Bill and the Exporters will be not be eligible for DEPB licence against provisionally assessed Shipping Bills. In such cases, EP Copy of Shipping bill will not be printed and only 6 copies will be printed. However, market enquiries about value will be conducted in such cases and either after issue of the Show Cause Notice the market value will be determined or may be accepted by the Exporters on his own. In such cases where samples are drawn subject to market enquiry the copy of the Shipping Bill for claiming DEPB will be generated after determination of value on the basis of market enquiry and handed over to the Exporters duly signed by Appraiser / Supdt. of Customs. In such cases wherever market value has

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