1. CUSTOMS CLEARANCE FACILITATION COMMITTEE MEETING
on 29th SEPTEMBER, 2015 at Custom House, Chennai

3. (Generally 2% of the Cargo) VERIFICATION OF DOUMENTS & SEAL
FLOW CHART OF CLEARANCE OF IMPORTED GOOD
IGM BE
(Processed by RMS)
FACILITATED
NON-FACILITATED
DUTY PAYMENT
GOODS REGN.
1ST APPRAISEMENT
EXAMINATION (UPTO 100%)
ASSESSMENT
OUT OF CHARGE (OOC)
2ND APPRAISEMENT
EXAMINATION
(Generally 2% of the Cargo)
VERIFICATION OF DOUMENTS & SEAL
ENTRY INWARDS
Violation of Customs Act, 1962
ADJUDICATION
DUTY PAYMENT

4. OBJECTIVES of TRS To identify bottlenecks affecting customs release.
Assessing newly introduced and modified techniques, procedure & technologies.
Establishment of baseline trade facilitation performance measurement .
Identifying opportunities for trade facilitation improvements.
Facilitates ‘ease of doing business’.

5. SCOPE of TRS
Measures the mean average time taken in each process of Customs clearance from arrival of goods to the release of the goods (Out of Charge – OOC).
Is based on the declarations filed and processed electronically.
About 99.75% of import declarations are filed electronically in Custom House.

6. METHODOLOGY ADOPTED Sampling methodology.
As per WCO guidelines, the sample should ideally include all the declarations processed in a period of at least 7 consecutive working days.
The period chosen for the study of should be one of the normal traffic periods.
Time period of to ,from Wednesday to next Tuesday was undertaken for this Analysis.[snapshot period:24-30 September 2015]
During this period, there was no slowdown or break down of EDI System. Hence data collected reflects a fairly representative sample.

7. WORKFLOW OF CUSTOMS CLEARANCE
Customs clearance can be broadly classified into following stages:
1. Filing of IGM ACTION OWNER : SHIPPING LINER
2. Filing of BE ACTION OWNER : IMPORTER / CB
3. Processing of declaration automatically by Risk Management System (RMS), which decides
to facilitate the BE or send the BE for scrutiny by Assessment Group.
ACTION OWNER : ICES 1.5
4. Scrutiny is done either through 1st check or 2nd check assessment, which is done at the
behest of importer or Customs;
ACTION OWNER : CUSTOMS
5. 1st check assessment ACTION OWNER: CUSTOMS

8. WORKFLOW OF CUSTOMS CLEARANCE
Cntd...
6. 2nd Check Assessment ACTION OWNER : CUSTOMS
7. Payment of Duty ACTION OWNER : IMPORTER / BANK
8. Goods Registration ACTION OWNER : IMPORTER / CB
9. Examination of goods ACTION OWNER : CUSTOMS
10. Out of Charge (OOC) in ICES. ACTION OWNER : CUSTOMS
Stage 3 to 6 and 9 & 10
: Processing attributable to Customs
Aggregate of Stages 1 to 10
: Total time taken for the goods to be released to the importer

9. RMS MONITORING SYSTEM TOTAL NUMBER OF BILLS OF ENTRY FILED 7289
NUMBER OF BILLS OF ENTRY FACILITATED
4287(58.81%)
NUMBER OF BILLS OF ENTRY NON FACILITATED
3002 (41.19%)
FIRST CHECK BILLS OF ENTRY
316(4.34 %)
SECOND CHECK BILLS OF ENTRY
2686(95.66%)

10. For the period 20/08/15 to 26/08/15

11. Cumulative %age of Total Documents Filed
ANALYSIS OF
STAGES 1 & 2
VESSEL ARRIVALTO FILING OF BE
- Action Owner : Importer / CB
Time taken in Hours
No. of Bs/E
Cumulative %age of Total Documents Filed
< 08
1425
21.47
< 16
430
27.95
< 24
274
32.08
< 32
394
38.02
< 40
310
42.69
< 48
162
45.13
< 72
881
58.41
> 72
2760
100
Total
6636
Analysis
How do we move forward
32% of BsE were filed within 24 hrs from grant of entry inwards as against 29% of B/E for the period 01/07/2015 to 07/07/2015.
Further, there has been a decrease in the average time taken for filing of Bs /E from hours to 96.4 hrs when compared with the corresponding period of the previous year (i.e has in 20/08/2014 to 26/08/2014 and hrs for 20/08/2015 to 26/08/2015)
The Importer / CB needs to be ready with all the documents and file maximum possible Bs/E within 24 hrs of arrival of the vessel.
They can also avail the facility of filing prior entry or advance bill of entry in terms of Section 46 (3) of the Customs Act, 1962.

12. Cumulative %age of Total Documents Filed
ANALYSIS OF
STAGES 2 TO 6
B. TIME TAKEN IN FILING TO ASSESSMENT
- Action Owner : CUSTOMS
Time taken in Hours
No. of Bs/E
Cumulative %age of Total Documents Filed
< 08
4666
70.31
< 16 19
70.60
< 24
434
77.14
< 32
268
81.18
< 40 20
81.48
< 48
120
83.29
< 72
314
88.02
> 72
795
100
Total
6636
Analysis
How do we move forward
77% BsE have been assessed within 24 hrs.
Average time taken for assessment hrs
Average time taken for assessment in 20/08/2014 to 26/08/2014 was 52.40
BsE filed in the evening of last working day of the week.
If maximum number of BsE are filed in the early hours of the day, there is a likelihood of the %age of assessment of BsE in the first 8 hours shall substantially be high.

13. Cumulative %age of Total Documents Filed
ANALYSIS OF
STAGES 6 & 7
C. TIME TAKEN IN FOR PAYMENT OF DUTY AFTER ASSESSMENT Action Owner : IMPORTER/ CB
Time taken in Hours
No. of Bs/E
Cumulative %age of Total Documents Filed
< 08
2090
31.49
< 16
1004
46.62
< 24 4
46.68
< 32
358
52.08
< 40
365
57.58
< 48 1
57.59
< 72
562
66.06
> 72
736
77.15
Total
5120
Analysis
How do we move forward
47 % BsE, duty payment has been made within 24 hrs.
Average time taken for payment of duty after assessment
i.e., hrs Vis-à-vis hrs for the corresponding
previous year period.
As e-payment is made mandatory and the facility is available round the clock i.e., on 24x7 basis, the Importers/CBs are advised to plan duty payment well in time to avoid payment of Interest, detention and demurrage charges.

14. Cumulative %age of Total Documents Filed
ANALYSIS OF
STAGES 7 & 8
D. TIME TAKEN FOR REGISTRATION AFTER PAYMENT OF DUTY -
Action Owner : Custodian/ CB , Terminal Operator / IMPORTER
Time taken in Hours
No. of Bs/E
Cumulative %age of Total Documents Filed
< 08
307
4.63
< 16
1334
24.73
< 24
237
28.30
< 32 1
28.32
< 40
1905
57.02
< 48 85
58.30
< 72
538
66.41
> 72
713
77.15
Total
5120
Analysis
How do we move forward
It can be noticed that in only 28% of the cases goods have been registered within 24 hrs.
Keep all documents ready as per CCRs.
The CB / Custodian / Terminal Operator to synchronise their activities to reduce the dwell time and stagnation in Terminal / CFS
Effective message exchange among all the stakeholders.

15. Cumulative %age of Total Documents Filed
ANALYSIS OF
STAGES 8 TO 10
E. TIME TAKEN FOR OUT OF CHARGE FROM REGISTRATION : Action Owner - CUSTOMS
Time taken in Hours
No. of Bs/E
Cumulative %age of Total Documents Filed
< 08
5614
84.60
< 16 1
84.61
< 24
112
86.30
< 32
234
89.83
< 40
< 48 31
90.30
< 72
170
92.86
> 72
474
100
Total
6131
Analysis
How do we move forward
Out of Charge has been granted in 86%cases within 24 hrs.
The average time taken from arrival of vessel to Out of charge has been reduced to hrs vis-à-vis to hrs when compared with the corresponding period for last year
Keep CCR documents ready.
2. Importers / CBs are suggested to maintain data quality so that amendments can be reduced and OOC is given within 24 hours for all the Bills.

16. ANALYSIS OF TIME TAKEN FOR OOC BY CUSTOMS /
IMPORTER
20/08/15 to 26/08/15
19/01/15 to 15/01/15
01/07/15 to 07/07/15
01/07/14 to 07/07/14
15/12/14 to 21/12/14
Customs
54.06
60.19
63.09
74.4
67.98
Importer
233.88
263.47
242.15
229.44
108.9

17. Vessel Arrival to filing of BE
COMPARATIVE ANALYSIS / PERFORMANCE WITH RESPECT TO PREVIOUS YEAR.
Vessel Arrival to filing of BE
Filing to assessment
Assessment to duty payment
Payment to registration
Assessment to Registration
Registration to OOC of BE
1.39
Vis a vis
2.15
2.04
Vis-à-vis
1.99
0.94
Vis-à-vis
0.75
2.88
Vis-à-vis
2.80
0.76
Vis-à-vis 0.95
3.79
Vis a vis
4.11
Average No of Days taken 8.82 Vis-à-vis 10 Days taken for the corresponding previous year.

18. OUTCOMES
Major Contributors to performance/dwell time identified & quantified.
2. Potential opportunities for improvement from
Customs side identified.
3. Customs is coordinating with NIC in developing
mobile App. for verification of Country of Origin
Certificates.
4. IPR Training given to officers posted in Docks.

19. Key Findings Customs is not a major impediment to import.
There are several factors that affect trade facilitation.
Both Industry and OGDs need to strategize in bringing down the dwell time.
Opportunities for Customs to further enhance trade facilitation do exits by coordinating with OGDs.

23. SUGGESTIONS/RECOMMENDATIONS
FOR
YOUR KIND ATTENTION