Kind reference is invited to proposals in the Finance Bill, 2017 relating to amendments in sections 46 and 47 of the Customs Act, 1962. These changes would come into effect upon enactment of the said Finance Bill.
Clarifications have been requested regarding applicability of the new provisions vis-a-vis arrival of goods and filing of bill of entry.
Changes in Section 46 of the Customs Act:-
The amendments in the section are aimed at prescribing a late charge for delayed filing of Bill of Entry (BoE). As per the amended Section 46 the importer shall present the bill of entry under sub-section (1) of section 46 before the end of the next day following the day (excluding holidays) on which the aircraft or vessel or vehicle carrying the goods arrives at a customs station at which such goods are to be cleared for home consumption or for warehousing. The free period for filing a BoE is up to the end of the next day following the day (excluding holidays) of arrival of goods at the place where the clearance for home consumption or warehousing is to take place.
In this regard, Board has amended Bill of Entry (Electronic Integrated Declaration) Regulations, 2011 and Bill of Entry (Forms) Regulations, 1976 to prescribe late charges for delayed filing. Entry Inwards date at sea ports and date of arrival of cargo at the ICD, airports, Land Customs stations etc would be the relevant date for determining the said charges, if any. It has also been clarified in both the regulations that no charges for late presentation of Bill of Entry shall be liable to be paid where the goods have arrived before the enactment of Finance Bill, 2017.
As per customs regulation Customs authority will charge Rs. 5000/- per day fine for late Bill Of Entry Filing.
How this process will go?
Let’s see one example.
Many companies need procurement certificate to clear their shipment at port. If we consider that a company gives pick up order to Unique Air Express on Monday at 2:00 pm from Singapore, Unique Air Express will do same day collection and give your company Air Way Bill no. At 5:00 pm and connect shipment to the flight no: 9W-011 departure time 8:05 pm, it will land at Mumbai airport at 10:40 pm same day, air lines will file IGM (Import Goods Manifest) same day. So custom authority will start counting your day for Bill of entry filing from 10:40 pm. You have Monday night and Tuesday to obtain procurement certificate and deliver it to us at our Mumbai office for filing process. This seems practically difficult to individual company.