MONDAY EXPORT CLASS
With
DR GODWIN OYEFESO (SUCCESSEDGE EXPORTERS NETWORK)
Topic: CUSTOM CLEARANCE OF EXPORT CARGO (Part 4)
COMPARISON OF COMPUTERISED CUSTOMS CLEARANCE VS MANUAL CLEARANCE
A brief comparison is made between manual system and computerised system of customs clearance.
1. Shipping Bill
The basic difference is in submission of Shipping Bill. Under manual system, exporter submits shipping bill. This is not the case in computerised clearance. Exporter submits data in annexure A or B to Data Entry Centre of Customs Station. Checklist is first prepared and given to exporter for verification. Once there are no discrepancies in data, exporter’s signature is taken on the Checklist and then Shipping Bill is generated by service centre. However, Shipping Bill is not printed at this stage.
2. Immediate Availability of Information
In computerised clearance, once checklist is approved, EDI System accepts documents from the trading partners in the Electronic Format. The documents can be prepared and submitted using either Electronic Data Interchange System or Service Centre. The document received over the Internet at Custom House is then loaded to the ICES, after proper validation checks. The Exporter/CHA can check the status of the Shipping Bill at the Service Center. They can also check whether any query has been raised in respect of their Shipping Bill. In case of any query, they file reply to query through the Service Centre. This transparency of information is not available with manual system and for every information, exporter has to depend on availability of written information from customs.
3. SDF Form in Place of GR Form
SDF form is used where shipping bills are processed electronically in customs house, while GR form is used when shipping bills are processed manually in customs house. “GR” stands for ‘Guaranteed Receipt’ form, while SDF stands for ‘Statutory Declaration Form’.
BACKGROUND NOTE ON A COMMON BUSINESS IDENTIFICATION NUMBER
Presently, different agencies of Government use separate numbers for identification of individuals and businesses in relation to activities concerning the agencies. The Director General of Foreign Trade (DGFT) allocates Importer Exporter Code No. (IEC No.) for identifying importers and exporters; the Income-tax Department issues the Permanent Account Number (PAN) for all Income tax, Wealth tax assessees; the Central Excise Department is also registering various manufacturers and allocating a separate series of registration numbers. RBI separately used to allocate a CNX number for identification of the exporters, earlier.
It has been further decided that such common identification number to be used by various agencies will be based on Permanent Account Number allotted by the Income Tax Department. The main objective of allocating an alphanumerical number by Government agencies is to identify the assessees/exporters/importers. It is also used to identify in some cases the concerned office where the person would be assessed or registered. Further, an alphanumeric number helps in processing information related to assessees on computers.
A Working Group comprising officers of different Departments had examined the feasibility of adopting a Common Identifier by various agencies. It was observed that the assessee would be considerably benefited if he has to obtain just one identification number for use by various Government agencies. With the increasing import and export activity, it has become necessary to develop linkages between import transactions, manufacturing activity and export transactions. Besides, maintaining a complete profile of the person concerned, wherein the records of his conduct with any of the Government Department could be ascertained, such a linkage can help in verification of availment of excise rebate on exports etc. Such a measure would be particularly helpful in introducing selective risk based assessment of import/export transactions instead of verification of each and every shipping bill or bill of export. A common identifier would immediately help obtain an overall assessment of the assessee’s credentials with different Government agencies. Various Government Departments particularly DGFT, Income tax and Customs and Excise Departments are presently engaged in computerisation of their operations. There is need to share information from the computers of one of the Departments with the other Departments. This exchange of information will be made easier if there are common identification numbers.
It has been decided to adopt Permanent Account Number issued by Income-tax Department as the basis for Common Identifier. PAN is a 10-digits alphanumeric code and can identify upto 96 crores business entities. Apart from being unique (PAN is issued centrally and is generated by the computer system), it has the widest application (more than 2 crores assessees as against about 3 lakhs importers/exporters using Import and Export Codes and about 1.2. lakhs Central Excise assessees using ECC Number). Further, since it is not dependent on the location of the office of registration, it will not get modified on account of re-organisation of jurisdiction of the concerned Department/Offices.
As per decision of the Government, PAN will be the only identifier for cross-referencing with the other Departments though each Department is free to use any internal codes, which it may consider necessary.
TO BE CONTINUED……
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