OFFICE OF THE COMMISSIONER OF CUSTOMS,

C.R.BUILDINGS, QUEEN'S ROAD, BANGALORE – 560 001

C.No.VIII/48/220/2010 Cus Tech Date: 14-12-2010

PUBLIC NOTICE NO.90/2010

Sub: Customs – Dwell time of import cargo at Air Cargo Complex - reg.

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Attention of trade, industry, importers/exporters, Custom House Agents, Freight Forwarders, Airlines and other community partners is invited to issues relating to the dwell time of import cargo at Air Cargo Complex, Bangalore.

2. As you are aware, Air Cargo Complex (ACC) is one of the first major customs sites which has been successfully migrated to the new Indian Customs Electronic Data Interchange System (ICES 1.5) version application along with the centralized version of the Risk Management System (RMS). The ACC, Bangalore, has the privilege of having the state of the art infrastructure in place to facilitate expeditious processing of customs documents over the EDI.

3. It was hoped that these infrastructural changes would contribute to the expeditious clearance of import cargo consignments and in turn contribute significantly towards the reduction in the dwell time of cargo and the consequent reduction in transaction costs. However, an analysis of the ‘dwell time statistics’ during the months of October and November 2010 reveals that there has been no significant reduction in the dwell time. It is observed that importers or their agents take as many as three days from the date of arrival of the consignment (Entry Inwards) to even file their import documents either through ICEGATE or at the Service Centre. Another two to three days are taken to effect payment of customs duty from the date of assessment. Consequently, the dwell time for the cargo right from the time of arrival till Out of Customs Charge (OOC) takes about 7 days on an average. This is far from satisfactory and is unacceptable. It may also be appreciated that since substantial time taken is on account of the importers and the CHAs, this puts added pressure and strain on officers in discharging their duties and responsibilities in an efficient manner.

4. With a view to providing improved and more efficient taxpayer services, it is important that as a first step, measures are initiated to reduce the dwell time of import cargo and this can only happen if the importers, CHAs, Airlines, Consol Agents and other community partners reform and re-engineer their internal systems and processes within their organizations and also calibrate their supply chain logistics to optimal levels of efficiencies in order to achieve the goal of delivery of cargo within 24 hours of arrival. Although Section 46 of the Customs Act, 1962, does not stipulate any time limit for filing the Bill of Entry, yet considering the fact that the consignments have been imported by air and have incurred huge air freight, it is the responsibility of the importer/authorized Custom House Agent to ensure that these consignments are cleared expeditiously and this can only happen if importers and their agents coordinate closely with the airlines and avail of the facility to file advance Bills of Entry (prior Bills of Entry) so as to save time. Even in situations where advance Bill of Entry cannot be filed for some reasons, importers or their CHAs must ensure that the Bills of Entry are filed not later than 3 hours after the flight has arrived. Taking three days to file Bill of Entry is totally unacceptable and cannot be justified.

5. Importers and their CHAs must ensure that as far as possible the duty payment is made on the same day, the assessment is completed. The e-payment Module is also being finalized on the new ICES 1.5 application and importers are advised to exercise the e-payment option to further facilitate expeditious processing of their documents and clearance of cargo.

6. Further, as a trade facilitation measure for ACP Clients, the custodians (Air India SATS and Menzies Bobba) are being advised to earmark separate storage areas for storing cargo consignments for ACP clients which will render ease of identification and also expedite their clearances, as per CBEC Circular No.42/2005.

7. It is also proposed to introduce an access control system in the main assessment areas at ACC, Bangalore and restrict the entry of CHAs and their employees so as to provide hassle free environment to officers in carrying out their duties and functions. As the processing of documents on ICES EDI is automated, there is no need for the CHAs and their employees to crowd around the assessment areas and cause disturbance to the assessing officers. The importers and the CHAs are advised to make use of the ICEGATE website to track the status of their documents instead of crowding around the officers and staff and causing hindrance in the working. Touch screen kiosk for local tracking of Bill of Entry in ICES 1.5 is soon going to be provided.

8. It is hoped that with these measures, the dwell time of import cargo will be drastically reduced and will help in providing efficient and expeditious customs processing and clearance formalities.

9. It is important for the trade and industry and other customs community partners to transform their methods of working and make optimal use of the powers of technology and automation in bringing about greater degree of professionalism in their working, in order to achieve reduction in dwell time and transaction costs.

Sd/-

(B. BHATTACHARYA)

COMMISSIONER

Copy to:

1) The Chief Commissioner of Customs, Bangalore Zone, Bangalore

2) As per Mailing List;

3) Guard File

4) Website – www.bangalorecustoms.gov.in