Digital Custom Clearance Procedure

The Digital Customs Clearance Procedure in India, primarily facilitated by ICEGATE, aims to streamline and expedite trade. Let's revisit the import and export procedures with corrected step numbering and enhanced details.

A. Digital Aspects in Import Clearance Procedure

1. Step 1: Importer Registration (Pre-requisite - Digital Facilitation)
   • Digital Facilitation for Registration: While registration itself isn't fully within the customs clearance procedure, digital platforms facilitate obtaining necessary registrations:
     • IEC (Importer-Exporter Code) via DGFT Portal: Application for IEC is primarily online through the DGFT (Directorate General of Foreign Trade) portal. This is a pre-requisite for import/export.
     • GST Registration Online: GST registration for businesses involved in import is also done online via the GST portal (GSTN).
2. Step 2: Arrival of Goods & Digital Filing of Bill of Entry
   • Electronic Filing of Bill of Entry (BOE) via ICEGATE:
     • Explanation: Importers or their Customs House Agents (CHAs) digitally prepare and file the Bill of Entry through the ICEGATE portal. This replaces manual paper-based filing.
     • Process:
       • Log in to ICEGATE using digital credentials.
       • Select the option for Bill of Entry filing.
       • Fill in the online form with required details: Importer information, HS Code, Value, Origin, Port, etc.
       • Upload supporting documents digitally (Commercial Invoice, Packing List, etc.).
       • Submit the digitally signed Bill of Entry.
3. Step 3: Digital Customs Examination & Duty Assessment
   • Electronic Verification of BOE & Documents:
     • Explanation: Customs officers access and review the digitally submitted Bill of Entry and attached documents electronically within the ICEGATE system.
     • Process:
       • Customs officers receive electronic notification of filed BOEs.
       • They review the data and uploaded documents on their systems.
       • Queries or discrepancies can be raised electronically within the system to the importer/CHA.
   • Automated Duty Calculation:
     • Explanation: The ICEGATE system automatically calculates the customs duties (BCD, IGST, CVD, etc.) based on the HS code, declared value, origin, and prevailing tariff rates, all configured within the digital system.
     • Process:
       • Once the BOE is submitted, the system processes the data.
       • Duty calculation is performed automatically based on pre-set rules and tariff schedules.
       • The assessed duty amount is displayed electronically.
   • Risk Management System (RMS) Integration:
     • Explanation: ICEGATE is integrated with the Risk Management System (RMS). The RMS automatically profiles and assesses the risk associated with each import consignment based on various pre-defined parameters (importer profile, goods type, origin, etc.).
     • Process:
       • RMS analyzes the data from the filed Bill of Entry in real-time.
       • Based on risk assessment, it automatically assigns a channel for inspection: Green, Orange, or Red.
       • Channel assignment is electronically updated in the system and communicated.
4. Step 4: Physical Examination & Risk-Based Inspection (Partially Digital)
   • Electronic Channel Assignment & Facilitation:
     • Explanation: The channel assigned by RMS (Green, Orange, Red) is electronically notified through ICEGATE to both customs officers and the importer/CHA.
     • Process:
       • Importer/CHA can check the channel assignment status on ICEGATE.
       • Green Channel (No Inspection): System automatically processes for clearance if Green Channel is assigned.
       • Orange Channel (Document Check Only): Customs officers conduct document verification electronically (already largely done in Step 3).
       • Red Channel (Physical Inspection): System generates an electronic examination order for customs officers to conduct physical inspection.
   • Digital Recording of Examination Results:
     • Explanation: Customs officers, when conducting physical examinations (Red Channel), can record their findings and observations directly into the ICEGATE system using digital interfaces (e.g., tablets or computers at inspection points).
     • Process:
       • Customs officer physically examines the goods as per examination order.
       • Examination findings (discrepancies, conformity, etc.) are digitally entered into ICEGATE.
       • Digital recording enhances transparency and audit trail.
5. Step 5: Digital Duty Payment & Customs Out of Charge
   • Electronic Duty Payment via ICEGATE:
     • Explanation: Importers can make duty payments online directly through ICEGATE using various digital payment methods.
     • Process:
       • Access the payment section in ICEGATE.
       • Select from available online payment options: Net Banking, Credit/Debit Cards, etc.
       • Initiate payment and complete the transaction online.
       • Receive electronic confirmation of payment within ICEGATE.
   • Electronic 'Out of Charge' Order:
     • Explanation: Once duty payment is confirmed and all checks are completed successfully (including examination if applicable), the 'Customs Out of Charge' order is issued electronically through ICEGATE.
     • Process:
       • System verifies duty payment confirmation.
       • If all is in order, the 'Out of Charge' status is electronically updated.
       • Importer/CHA can download or view the 'Out of Charge' order digitally, serving as official clearance.

B. Digital Aspects in Export Clearance Procedure

1. Step 1: Exporter Registration (Pre-requisite - Digital Facilitation)
   • Digital Facilitation for Registration: Similar to imports, digital platforms facilitate exporter registrations:
     • IEC (Importer-Exporter Code) via DGFT Portal: Online application and issuance.
     • Registration with Export Promotion Councils (EPCs): Many EPCs offer online registration facilities.
     • GST Registration (already online): If required for GST refunds, exporter GST registration is online.
2. Step 2: Digital Filing of Shipping Bill
   • Electronic Filing of Shipping Bill via ICEGATE:
     • Explanation: Exporters or CHAs digitally prepare and file the Shipping Bill electronically through ICEGATE.
     • Process:
       • Log in to ICEGATE.
       • Select the option for Shipping Bill filing.
       • Choose the appropriate type of Shipping Bill (White, Green, Yellow, Blue).
       • Fill in the online form with exporter details, HS Code, value, destination, etc.
       • Upload required documents digitally (Invoice, Packing List, etc.).
       • Submit the digitally signed Shipping Bill.
3. Step 3: Digital Customs Verification
   • Electronic Submission of Export Documents:
     • Explanation: All supporting export documents are uploaded digitally to ICEGATE along with the Shipping Bill.
     • Process:
       • Upload documents directly during the Shipping Bill filing process or subsequently through ICEGATE's document upload facility.
       • Documents are digitally linked to the Shipping Bill for easy access by customs.
   • Digital Customs Assessment and Verification:
     • Explanation: Customs officers electronically verify the Shipping Bill and submitted documents within ICEGATE, assessing declared export benefits (if any) and ensuring compliance.
     • Process:
       • Customs officers review the Shipping Bill and documents online.
       • They verify details like HS Code, value, quantity, eligibility for export incentives, etc.
       • Queries or clarifications can be raised and responded to electronically via ICEGATE.
4. Step 4: Cargo Examination & Digital Let Export Order (LEO) (Partially Digital)
   • Examination Orders (Digital, if required):
     • Explanation: If physical examination of export cargo is deemed necessary (based on risk criteria or specific goods), examination orders are generated and communicated electronically through ICEGATE.
     • Process:
       • RMS might trigger examination based on risk assessment.
       • If examination is required, an electronic order is generated in ICEGATE.
       • The order is visible to customs officers and relevant stakeholders.
   • Electronic Let Export Order (LEO):
     • Explanation: After satisfactory verification and examination (if performed), the Let Export Order (LEO) is issued electronically through ICEGATE.
     • Process:
       • Once customs is satisfied, they issue the LEO digitally.
       • LEO status is updated in ICEGATE and visible to the exporter/CHA.
       • Electronic LEO authorizes the shipment to proceed for export.
5. Step 5: Digital Export General Manifest (EGM) & Departure
   • Electronic Filing of Export General Manifest (EGM) by Carrier:
     • Explanation: Shipping lines or airlines are responsible for filing the Export General Manifest (EGM), which is a comprehensive list of all export cargo loaded on a vessel or aircraft. EGM filing is done electronically through ICEGATE.
     • Process:
       • Shipping lines/airlines electronically prepare and file the EGM via ICEGATE.
       • EGM details include Shipping Bill numbers, cargo details, vessel/flight information, etc.
   • Digital Verification and Approval of EGM:
     • Explanation: Customs authorities electronically verify and approve the EGM submitted by the carrier through ICEGATE.
     • Process:
       • Customs officers review the EGM data electronically.
       • They verify if the details match the approved Shipping Bills.
       • Once verified, customs digitally approve the EGM in ICEGATE.
   • Facilitation of Export Benefits (Digital Integration):
     • Explanation: The digital processing of Shipping Bills and EGMs in ICEGATE facilitates the subsequent processing and claiming of export benefits like GST refunds and duty drawbacks. ICEGATE data is often integrated with other government systems like GSTN for seamless benefit processing.
     • Process:
       • Data from digitally processed Shipping Bills and EGMs is used as the basis for export benefit claims.
       • Exporters can track the status of their benefit claims online, often through integrated portals.