28th August, 2015
CHENNAI Customs Zone
TIME RELEASE STUDY OF
IMPORT CLEARANCE
AT VISAKHAPATNAM SEAPORT
ఇతరుల వస్తువులనత బాధ్యతతో తనవిగా నెంచి తటస్థ పద్ధ తితోతో
వ్ాయపారము చేయుటయే వరు కునికి లాభదాయకముగా నతెండుననత.
यदि रखते पर माल को, अपना माल समान।
वणिक करे वाणिज्य तो, वही सही तू जान॥
The true merchandize of merchants is to guard and
do by the things of others as they do by their own.
Thirukkural 120
I AM BECAUSE YOU ARE
YOU ARE BECAUSE WE ARE
-Spirit of Ubuntu, an African values system
-(natural foundation for effective corporate
governance)
You must be the change you wish to see in the world . . .”- Mahatma Gandhi
.
IGM
ENTRY INWARDS
BE
(Processed by RMS)
FACILITATED(RMS)
DUTY PAYMENT
GOODS REGN. &
DOCUMENTS & SEAL
VERIFICATION
OUT OF CHARGE
(OOC)
NON-FACILITATED
1ST APPRAISEMENT
2ND APPRAISEMENT
GOODS REGN.
ASSESSMENT
EXAMINATION
(UPTO 100%)
DUTY PAYMENT
ASSESSMENT
GOODS REGN.
DUTY PAYMENT
EXAMINATION
(2% OR 20 PKGs )
OUT OF CHARGE (OOC)
OUT OF CHARGE (OOC)
OBJECTIVE of TRS
To measure the average time taken for each
activity of the release process.
A measure of customs performance in trade
facilitation
To identify the weaknesses and suggest ways and
means to remove them, if any.
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 94% of import declarations are filed electronically
in Custom House.
METHODOLOGY ADOPTED
Based on sampling method.
As per WCO guidelines, the sample should ideally include all the
declarations processed in a period of at least seven consequent
working days.
It should also be one of the normal traffic periods.
Time period of 21.07.2015 to 27.07.2015,from Tuesday to next
Monday was undertaken for this study.
During this period, there was no slowdown or break down of EDI
System. Hence data collected reflects a fairly representative sample.
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
WORKFLOW OF CUSTOMS CLEARANCE
6. 2nd Check Assessment
Cntd...
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
Of the stages mentioned above, time attributable to processing
by Customs officers would be aggregate of time taken for assessment
and examination (stages 3 to 6 and 9 & 10). However, the total time for
an imported Consignment lies in Customs Area is aggregate of stages
1 to 10.
ANALYSIS
TOTAL NUMBER OF BILLS OF ENTRY FILED
4592
NUMBER OF BILLS OF ENTRY FACILITATED
2346 (51.09 %)
NUMBER OF BILLS OF ENTRY NON FACILITATED
FIRST CHECK BILLS OF ENTRY
SECOND CHECK BILLS OF ENTRY
2246 (48.91%)
256 (5.57 %)
1990(43.34 %)
ANALYSIS OF
STAGES 1 & 2
A. VESSEL ARRIVALTO FILING OF BE
- Action Owner : Importer / CB
Time taken in Hours
< 08
< 16
< 24
< 32
< 40
< 48
< 72
> 72
Total
No. of Bs/E
143
3
46
11
03
22
48
159
435
Analysis
It can be noticed that only 44% have filed BsE within 24
hrs from grant of entry inwards, 19 % in the next 48
hours, around 37% have filed BE after 72 hrs. However,
it is pertinent mention that average time taken to file BE
after granting of Entry Inwards is 78 hrs.
Cumulative %age of
Total Documents Filed
32.87
33.56
44.14
46.67
47.36
52.41
63.45
100
How do we move forward
The Importer / CB needs to be
ready with all the documents
and file maximum possible BsE
within 24 hrs. They can also
avail the facility of filing prior
entry BsE upto 14 days prior to
ANALYSIS OF
STAGES 2 TO 6
Time taken in
minutes
< 03
Between 03
and 06
B. TIME TAKEN BY CUSTOMS SYSTEM TO
DECIDE ON RMS FACILITATION
- Action Owner : CUSTOMS
No. of Bs/E
Cumulative %age of
Facilitated Bs/E
911
1378
38.83
58.74
57
2.43
Between 06 and 12
Analysis
How do we move forward
Total
435
It can be noticed that average time taken for
assessing 51.09% of the Bs/e filed is 3.58 minutes.
70% BsE have been assessed within 24 hrs, 16% in
the next 48 hours,
around 14% * have been
assessed after 72 hrs. In addition, it is pertinent
mention that there is an improvement in average
* Mostly on account of the 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
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
< 24
24-48
48-72
72-96
96-120
> 120
1746
226
176
80
42
76
Total
2346
Analysis
It can be noticed that in case of 74.42 % BsE,
duty payment has been made within 24 hrs. The
average time taken for payment of duty by
importer/CHA is RMS facilitated Bs/E is 19.47 hrs.
The ratio between the Bs/E assessed to payment
of duty is 1:654
Cumulative %age of
Total Documents Filed
74.42
9.63
7.50
3.41
1.79
3.24
How do we move forward
As e payment is made mandatory and
the facility is available 24x7, the
Importers/CBs are advised to plan
duty payment well in time to avoid
payment of Interest, detention and
demurrage charges.
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
Within 24
24-48
48-72
72-96
96-120
< 120
651
854
294
206
116
225
Total
268
Analysis
It can be noticed that in cases of only 27.75% 1.
BsE goods have been registered within 24 hrs,
36.40% in the next 48 hours. The average time 2.
taken for registration after payment of duty is
55.97 Hrs.
27.75
36.40
12.53
8.78
4.94
9.59
How do we move forward
Keep all documents ready as per
CCRs.
The CB / Custodian / Terminal
Operator may synergise so as to
reduce the dwell time and
stagnation in Terminal / CFS
ANALYSIS OF
STAGES 8 TO 10
E. TIME TAKEN FOR OUT OF CHARGE FROM
REGISTRATION Action Owner : CUSTOMS
Time taken in Hours
< 01
1-2
02-03
>03
No. of Bs/E
804
381
281
880
Cumulative %age of
Total Documents Filed
34.27
16.24
11.98
37.51
Total
Analysis
It can be noticed that Out of Charge has been granted
in 62.49% cases within 03 hrs, The remaining 37.51%
cases are cleared beyond 3 hours. On computation it
has revealed that the average time taken is 20.01Hrs.
How do we move forward
1.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.
INTEGRATED ANALYSIS OF THREE STUDIES
CONDUCTED ON TIME RELEASE
S.
N
1
2
3
4
5
Process/ Action Owner
A.
VESSEL ARRIVALTO FILING OF
BE
- Action Owner : Importer / CB
B. TIME TAKEN IN FILING TO
ASSESSMENT
- Action Owner : CUSTOMS
C. TIME TAKEN IN FOR PAYMENT OF
DUTY AFTER ASSESSMENT Action Owner : IMPORTER/
CB
D. TIME TAKEN FOR REGISTRATION
AFTER PAYMENT OF DUTY Action Owner : Custodian/ CB
Terminal Operator /
IMPORTER
E. TIME TAKEN FOR OUT OF CHARGE
FROM REGISTRATION Action Owner : CUSTOMS
Time
Frame
(in Hrs)
1st Study
(21.07.14
to
28.07.14
2nd Study
(15.12.14
to
22.12.14
3rd Study
(13.04.15
to
20.04.15
4th Study
(21.07.15
to
27.07.15
72
71.47
61.31
65.44
63.45
24
72.94
81.25
79.20
70.11
72
45.17
50.30
51.68
89.92
72
28.41
29.76
26.38
70.90
24
87.06
96.13
97.55
94.48
SUGGESTIONS/RECOMMENDATIONS
THANK YOU