The Central Board of Indirect Taxes and Customs (CBIC) issued the clarification on the legislative changes in Section 46 of Customs Act, 1962.
Section 46 of the Customs Act, 1962 has been amended through the Finance Act, 2021.
These changes facilitate pre-arrival processing and assessment of Bills of Entry (BE) by mandating their advance filing thus leading to a significant decrease in the Customs clearance time.
The amended Section 46 requires an importer to file a BE before the end of the day (including holidays) preceding the day of arrival of the vessel/aircraft/vehicle carrying the imported goods at a Customs port/station at which such goods are to be cleared for home consumption or warehousing.
However, the Board is empowered to prescribe different time limits for such filing in certain cases, but by not later than the end of the day of arrival of the vessel/aircraft/vehicle at the Customs port/station.
The Board has carried out consultations with members of the trade and Customs field formations for the smooth implementation of the changes to the Customs Act, 1962 as above. After examining the relevant issues Board notes that the ground reality is that in the case of short-haul vessels/flights the importer may at times not get the Master Bill of Lading (MBL)/Master Airway Bill (MAWB) on the preceding day of the arrival of the vessel/aircraft.
When goods arrive by a vehicle at a LCS, it is invariably the case that the import report is filed only at the time of its arrival. In these situations, it would be difficult for the importer to adhere to the new requirement of Section 46.
With a view to facilitating the importers, Board has amended the Bill of Entry (Electronic Integrated Declaration) Regulations, 2018 by the issue of Notification No.34/2021-Customs(N.T.), dated March 29, 2021, thereby prescribing different time-limits for filing BE in respect of goods imported by various modes of transport.
It is noteworthy, that, the existing provision that a BE may be presented up to 30 days prior to the expected arrival of the aircraft or vessel, or vehicle carrying the imported goods continues. Thus, with certain exceptions, as notified, the BE can now be filed anytime from 30 days prior to the expected arrival of the aircraft or vessel, or vehicle up to the end of the day preceding the day of such arrival.
Similarly, changes have been carried out in the Bill of Entry (Forms) Regulations, 1976 vide Notification No.35/2021-Customs (N.T.) dated March 29, 2021, in case of manual filing of BEs.
“The importers are encouraged to file the BE well in advance and definitely by the above-mentioned timelines. In accordance with the said Section 46 read with the said Regulations, a BE that is filed after the above timelines shall attract late charges. Similarly, relevant dates for determining the late charges as clarified earlier by Circular No. 12/2017-Customs, dated 31st March 2017 for different types of Customs Stations remains unchanged i.e., Entry Inwards for the Seaport and Date of Arrival at the Airport, ICDs/Air Freight Stations and Land Customs Stations,” the CBIC clarified.
Several representations have been received regarding the non-availability of MBL/MAWB within the prescribed time-limits leading to delay in filing advance BE. Upon carefully examining this matter and noting the genuine difficulties of the importers, Board has decided to do away with the requirement of MBL/MAWB for the filing of advance BE. Only the reference to the House Bill of Lading (HBL)/ House Airway Bill (HAWB) would be sufficient at the time of advance filing. Thus, an importer can now file the advance BE on the strength of either an MBL/MAWB or the HBL/HAWB or both.
“To regularize the BE filed in advance with the Arrival Manifest (IGM) when a BE has been filed only with the HBL/HAWB (and not MBL/MAWB), it is proposed to enable an option in ICEGATE for the importer to subsequently update the MBL/MAWB in the BE. This amendment to the already filed BE would be auto-approved in the Customs Automated System without the need for the approval of a Customs officer. An automated approval by the Customs Automated System is supported by section 149 of the Customs Act, 1962 amended vide Finance Act, 2021. Since all such amendments would be auto-approved by the Customs Automated System, these would not be subject to levy of fees under the Levy of Fees (Customs Documents) Regulations, 1970,” the CBIC in the circular said.
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