GENERAL INFORMATION ON IMPORT OF GOODS THROUGH COURIER MODE
NEW COURIER IMPORTS & EXPORTS (CLEARANCE) REGULATIONS, 1998 NOTIFIED
In suppression of earlier Courier Imports (Clearance) Regulations, 1995, new Courier Imports and Exports (Clearance) Regulations,1998 have been notified. The new regulations provides for clearance of export of cargo samples and documents in addition to the import of the same.
Imports and exports through courier mode have registered a healthy rate of growth in recent years. For regulating such imports and exports, the Government has framed the Courier Imports and Exports (Clearance) Regulations, 1998. At present, the facility of courier clearance is available at Customs airports in Mumbai, Delhi, Chennai, Calcutta, Bangalore, Hyderabad, Ahmedabad, Jaipur, and Land Customs Stations at Petrapole and Gojadanga. Under the scheme, the courier goods are cleared through a fast track mode on observance of simple formalities by courier companies. Examination of parcels is kept to the minimum and clearance is allowed on the basis of selective scrutiny of documents. The duty, where livable, is paid by the courier company on behalf of importers/exporters before taking delivery of the parcels. The weight limit for courier/express material (individual packages) imports is fixed at 70 kg. However, there is no such weight limit for export of goods through courier.
Classification of Goods:
For facilitating Customs clearance, the goods imported by courier have been divided into three categories, viz (a) documents; (b) samples and free gifts; and (c) dutiable or commercial goods. The documents include any message, information or data recorded on paper, cards or photographs having no commercial value, and which do not attract any duty or subject to any prohibition/restriction on their import or export. Samples have been defined to mean any bonafide commercial samples and prototypes of goods supplied free of charge of a value not exceeding Rs.50,000/- for exports and Rs.5000/- for imports which are not subject to any prohibition or restriction on their import or export and which does not involve transfer of foreign exchange. Free gifts means any bonafide gifts of articles for personal use of a value not exceeding rupees 25,000/- for a consignment in case of exports and Rs.5000/- for imports which are not subject to any prohibition or restriction on their import or export and which do not involve transfer of foreign exchange. The third category of imports is dutiable or commercial goods.
Packing Requirements and Procedural Formalities for Clearance of Import Goods:
The Regulations require the above three categories of goods to be packaged distinctively in identifiable courier company bags with appropriate labels. This is because, the scheme of assessment and clearance of the goods is different for the three categories. Essentially, the goods in the first two categories do not attract any customs duty. Therefore, simplified Bills of Entry (Courier Bill of Entry-III for documents and Courier Bill of Entry-IV for samples and free gifts) have been specified for their clearance. One single Courier Bill of Entry is sufficient for clearance of any number of such goods imported by any Authorised Courier on a particular flight. It is, however, necessary that for the purpose of clearance of documents, the manifest filed by the Authorised Courier specifies the nature of document i.e. whether letters, brochures, catalogues, manuals, etc. This is necessary to verify that indeed the item of import viz., ‘document’ is duty free and deserves to be cleared under CBE-III of the regulations. For clearing dutiable or commercial goods, Form Courier Bill of Entry-V is required to be filed. This Form can contain a number of individual consignments imported by one courier on behalf of more than one consignee. There is no limit as regards the quantity of dutiable or commercial goods which can be imported through the courier. These goods are assessed to duty on merits like any other imported goods, and exemption, wherever available, is allowed to such imports when claimed.
It may be mentioned that the value limit prescribed for samples and free gifts is exclusive of freight and insurance element. However, in case of goods valued above Rs.5,000/-, freight and insurance is added to calculate the duty payable.
The simplified procedure for filing Courier Bills of Entry does not apply to all goods. The regulations stipulate that for certain categories of imports, a regular Bill of Entry prescribed in the Bill of Entry (Forms) Regulations, 1976 is to be filed. These include, (a) goods imported under duty exemption scheme applicable to EOUs and units in EPZs; (b) goods imported under DEPB, DEEC and EPCG Schemes; (c) goods imported against the license issued under the Foreign Trade (Development and Regulation), Act, 1992 and (d) goods imported by a related person defined under the Customs Valuation Rules, 1988.
It may be noted that the scheme of clearance of imports and exports by courier mode introduces certain procedural relaxation in regard to customs clearance procedures. Such imports and exports will, however, continue to be governed by the provisions of the EXIM Policy applicable to such imports and exports. In other words, the courier imports and exports will have to comply with the provisions and requirements of the EXIM Policy or any other law for the time being in force, subject to which only imports or exports may be permissible.
Disposal of Uncleared Goods:
The regulations prescribe a procedure for clearance of uncleared goods. In case of imported goods, a notice is required to be issued to the Authorised Courier and goods can be disposed of after the expiry of 30 days of the arrival of the said goods. The charges payable for storage and holding of such goods are to be borne by the Authorised Courier. In the case of export goods, a similar procedure has been prescribed, the only difference being that such goods can be disposed of if they have not been exported within seven days of arrival into the Customs Area or within such extended period as may be permitted by the Customs.
IMPORT AND EXPORT
Import through Courier:
As laid down by the current Exim Policy, import of goods through courier is permitted in accordance with the Courier Imports & Exports (Clearance) Regulations, 1998.
If the CIF value of the consignment imported does not exceed Rs.100000, the relative Bill of Entry is required to be filed by the registered courier service.
If the CIF value is Rs.100000 or more, importers are to file separate B/E as in the case of other imports.
In case of remittances for imports through courier services, authorised dealers should ensure submission of Exchange Control Copy of Bill of Entry for home consumption in the case of imports valued at Rs. 100000 or more.
This is not regarded as baggage for the purpose of assessment of duty and clearance thereof. The practice of charging a uniform duty on articles imported through courier has been discontinued. Imports by courier are now classified on merits in the respective customs Tariff headings. The new system of assessment and clearance of goods imported by courier is now governed under the Courier Imports & Exports (Clearance) Regulations 1998.
PROCEDURE TO BE FOLLOWED BY STP/EHTP UNITS
FOR
IMPORT OF GOODS THROUGH COURIER MODE
Import of goods were allowed through courier mode vide Notification No.87/98-customs dt. 09.11.1998
The goods are sent through authorised couriers services and the goods land at different airports viz. Mumbai, Delhi, Chennai, Calcutta, Bangalore, Hyderabad, Ahmedabad and Jaipur etc.
Goods thus imported are allowed to be tran-shipped to various locations after conforming to customs formalities vide Notification No.61/95-Cus dt. 28.09.1995.
In co-ordination with Courier service, the following documents in original are to be submitted by the STP/EHTP Unit for the clearance of goods,
- Bonded Warehousing License
- Bond to be executed for one year based on the surety
- Green Card issued by STPI
- Importer Exporter Code
- PAN in original
- STPI’s import approval along with the attested invoice
- STPI’s letter for transhipment of goods from Delhi/Mumbai to the unit’s location
- Procurement certificate issued by Customs/Excise for transhipping the goods
After scrutiny, the goods are tran-shipped to unit’s location and are brought to their bonded premise and the sealed parcel is unsealed in front of the bond officer.