ECS Overview

8/3/2019 ECS Overview

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Business Solutions Division, Wipro Infotech

ECS (Express Clearance System)

Express Clearance System 1 of 21

Express

Clearance

System


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Organization of this presentation

About the ECSFacilities available to Express CompaniesFacilities available to Custom House AgentsFacilities available to Importers

Facilities available to CustodiansFacilities available to CustomsProcesses covered under ECSOther allied processes

PAN based registrationClearance of document shipmentsClearance of non-document shipmentsTrans-shipmentExport

Re-exportReturn to origin

Misrouted shipments

DisposalUn-cleared / unclaimed shipmentsSeized / confiscated shipments

RefundsAdjudicationCalculation of dutiesRisk management


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About the ECS

Centralized web-based systemShall provides access to

Express companiesCustoms House AgentsImporters

Service centre at the premises of the custodianCustodian

Customs officials

Shall cater to Clearance of shipments of more than 50 registered express companies

Bulk upload of bills of entry and shipping bills

Risk-based clearance of shipmentsClearance facilitated by bar-code scannersPayment of duty and other charges via a banking interfaceChecking on the basis of Compulsory Compliance Requirements


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Key facilities available to express companies

Express

CompaniesRegistration

AccessContro

l

Online Filing of Bills of Entry / Shipping Bills

Bulk Upload of Bills of Entry / Shipping Bills

Checking Shipment Status

Filing refund claims

Making online payments of

Duty including arrears

Fine and penalty

Charges and Fees

Trans-shipment Fee

Custodian Charges

Warehouse Charges

Responses to query / detention memos

Viewing Running Bond Accounts

Viewing Reports and Dashboards

Online

On bar-code scanners

A pplications for

Trans-shipment

Back to Town

Misrouted shipments

Return to Origin


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Key facilities available to Custom House Agents and Importers

Bulk Upload / Online filing of Regular Bills of Entry

Checking shipment status online

Filing refund claims

Responses to query / detention memos


AccessCon

trol

Custom

House

Agents

Importers shall submit their bills of entry through service centres


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Key facilities available to Custodians

AccessControl

Custodians Warehouse Charges

Online Filing of Bills of Entry - Un-cleared / Unclaimed Cases

Checking Shipment Status

Conducting arrival scan

Making online duty payments

Checking payment status

Forwarding shipments

Recording weight information

Custodian Charges

Sending reports of disposal cases

Updating Running Bond Accounts


Warehouse operations

Generation ofbar-codes

Detention

Trans-shipment


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Key facilities available to Customs

AccessControl

Customs

Officials

Auditor GroupRecommending specific modifications in bills of entry

Appraiser Group

Entering prov. assess. bond details

Entering test reports

Detaining shipmentsRaising queries

Capturing details of adjudication orders

Value loadingPreparing deficiency report for refund claims

Superintendent Group

Entering seizure release bond details Detaining shipmentsRaising queries

Verifying Compulsory Compliance Requirements

Giving Out of Charge

AC/DC, JC/ ADC,

Commissioner

Granting trans-shipment permissions (AC/DC) Adjudication (all users)

Assessing officer functions (AC)

Misrouted / RTO / ECM update permissions

Inspector GroupX-Ray inspection Creation of Examination Report


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Registration

Start

Stop

Courier submits registration form to officials at Customs house;

centralized PAN based registration number provided

System manager from the local customs station enters details of the registration in ECS

PAN based Registration number

Ports at which operation allowed

Express company particulars

Business constitution

Personnel details

Through ECS, system managers from local customs stations shall be able to

Amend registration details

Indicate suspension, cancellation / revocation of registration

System enables operations of the particular courier at

The port of registration

All other ports specified


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Glossary of nomenclature changes from the present manual system

CBE-I and CBE-IICBE-III (Document Clearance)

CBE-IV (Non-documents Gifts and Samples)CBE-V (Non-documents Value less than Rs. 1,00,000)

Regular Bill of Entry (Value greater than or equal to Rs. 1,00,000)

CSB-I (Documents)

CSB-I (Non-documents)

ECM (Express Cargo Manifest) CBE-XI

CBE-XII

CBE-XIII

CBE-XIV

CSB-III

CSB-IV


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Document Clearance

Start

Express Cargo Manifest (Docs) filed

IGM Number, arrival time details fed

into ECM post flight arrival

Custodian conducts arrival scan;Custodian records weights;

System computes custodian charges;

Trans-shipment cases separated

Trans-shipment cases moved to

trans-shipment bonded area

on the strength of Trans-shipment permit available in ECS

ECM filed (with indication of

trans-shipment against shipments)

CBE-XI (first tranche) filed for

shipments bagged at origin

Loose shipments bagged at import bay

CBE-XI (second tranche) filed for

shipments bagged at origin

100 % X-Ray scan conducted by

X-Ray Inspector;

Suspicious shipments sent to

Inspector (Examination);

Rest sent to Superintendent for

issuance of Out of Charge

Inspector (Examination) createsexamination report;

submits to Superintendent

Superintendent creates detention memo

for suspicious shipments (after applying his

discretion)

arehouse process by

Custodian;

System begins computation

of warehouse charges;

Intimation of detention

sent to appraiser

If required, adjudication

proceedings initiated byappraiser

Out of Charge (OoC) by the

SuperintendentOut of Charge certificate

and CBE-XI printed

through ECS

Superintendent signs printed

copies CBE, OoC certificate

Stop


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Non - Document Clearance 1

Start

CBEs XII, XIII, XIV filed in ECS

Duty liability computed

RMS operates

Risk scoring done

Shipments classified under risk corridorsRMS instructions appended

Risky shipments marked to appraiser

Appraiser can with support of NIDB

and the RMS instructions

Raise queries; read responses to these

Decide on detention, provisionalassessment, first check, clear bill of entry

Enter bond details in case of provisional

assessment

Modify value, CTSH, quantity,

notifications, description, MRP etc.

Bills of entry marked to AC/DC

based on type and value

Post modifications, courier may either

accept the changes or request for an

assessment order

Appraiser can enter the order in ECS

Courier may either pay as per the order

or indicate their intention to go inappeal against the order

Pre-specified percentage of appraised

bills of entry are marked to the auditor

If the auditor recommends changes the

bills of entry are sent back to theappraiser to accommodate the

recommendations

Courier pays duty through ECS.

Duty may also be paid postarrival of shipments


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Non - Document Clearance - 2

100 % X-Ray scan conducted by

X-Ray Inspector;

Suspicious shipments sent to

Inspector (Examination);

Shipments meant to be detained

sent to warehouseSamples drawn for shipments where

first check / testing has been indicated

Shipments that the RMS has picked up

(10 %) for examination are sent to the

Inspector (Examination)

Rest sent to Superintendent for

issuance of Out of Charge

Inspector (Examination) creates

examination report;

submits to Superintendent

Out of Charge (OoC) by the

Superintendent

Out of Charge certificate

and CBEs printed

through ECS

Superintendent signs printed

copies CBE, OoC certificate

Stop

Suptdt. creates detention memo for

suspicious shipments (applying his discretion)

If required, adjudication proceedings

initiated by appraiser

CCRs checked by Out of

Charge officer

Specific cases

marked to appraiser

ECM filed; IGM Number fed,

arrival scan trans-shipment etc.

(similar to document clearance)

arehouse process as in document clearance


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Trans-shipment

Start

Bond and bank guarantee details captured in ECS

Running bond account created automatically

Trans-shipment permission applied for by courier

Permission granted by AC/DC

Trans-shipment fee debited from couriers account

ECM filed indicating trans-shipment against

specific shipments;

System checks for presence of permit

Shipments arrive

Move into trans-shipment bonded areaSystem computes warehouse charges

Debit entry equal to value of shipments is made in the

running bond account when shipments are actually

trans-shipped

Shipments arrive at the destination port

Certificate of Warehousing created either on ECSor manually (ports not on ECS)

Intimation of arrival of trans-shipment goods sent to

ECS electronically in cases where the re-warehousingcertificate is created on the system

In other cases intimation arrives in the physical

format (facsimile etc.)

Stop

ECS makes credit entries in the running bond

account in case of electronic intimation

For manual intimations, running bond account iscredited by the Superintendent

ECS has a provision for accommodating multiple

credit entries in case shipments have arrived at thedestination in lots


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Exports

Start

CSB-III/IV filed

Custodian takes weights of shipments

upon arrival at the export bay

System computes custodian charges

100 % X-Ray scan by X-Ray inspector

Suspicious shipments examined by

Inspector (Examination) who

prepares an examination report

Superintendent detains suspicious

shipments

Detained shipments moved into

warehouse

System computes warehouse charges

Shipments are loaded for export

In case all shipments cannot be

accommodated in one flight the

courier modifies the CSB to indicatethe flight that would carry the

remaining shipments

This is subject to approval by theSuperintendent

Stop

Back to Town cases are subject to

approval from the AC/DC


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Start

Courier files application for return to

origin indicating shipment details and

country of originApplication submitted to the AC/DC

If AC/DC grants permission, shipment

is re-exported on the strength of thispermission

Re-Export

Stop

If permission is not granted theshipment is detained;

The matter may go in for adjudication

or the shipment might be considered

for disposal

Return to Origin

Start

Stop

Courier files application indicating

shipment details, country of origin

and destination countryApplication submitted to the AC/DC

If AC/DC grants permission, shipment

is re-exported on the strength of this

permission

If permission is not granted theshipment is detained;

The matter may go in for adjudication

or the shipment might be considered

for disposal

Misrouted Shipments


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Disposal

Un-cleared / Unclaimed shipments

Custodian records information of shipments

System sends a list of such shipments to Customs every month

Auction is conducted post relevant no-objection certificates have been obtained.This is done out of the system.

Custodian files bill of entry

Usual appraisal, duty payment process follows

Seized / Confiscated shipments

Custodian records information of shipments

For seized shipments, information on the seizing authority and the date of seizure shall be captured

For confiscated shipments, the order number and the date of issuance of the order shall be captured

of the order are captured in the system

System sends a list of such shipments to Customs every month

Disposal proceedings, creation of the disposal order and auction are done out of the system

Post auction a delivery challan shall be filed by the Superintendent in the system.

This challan shall be taken as the Out of Charge certificate for the shipment


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Start

Courier lodges refunds claim; claim submitted to the appraiser

Refunds

Appraiser examines the claim;

If a deficiency is found he prepares a deficiency memo and submits it to the AC/DC

If no deficiency is found the claim is submitted to the AC/DC who acknowledges the claim

The refunds claim is examined and processed (out of the system)

Appraiser uploads the refunds order in the system; submits the same to the AC/DC

If the AC/DC finds a genuine deficiency the lodged claim is sent to the courier

If no deficiency is found, the AC/DC acknowledges the claim post which it is treated as filed

Stop

The AC/DC either sends the order back to the appraiser for modifications

or issues the same either accepting or rejecting the claim


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Start

Appraiser identifies a case for adjudication and indicates

Whether the case is for spot or detailed adjudication

The competent adjudicating authority (AC/DC, JC/ ADC, Commissioner)

Adjudication

The case is submitted to the competent authority via the official hierarchy, each official giving his remarks

The authority decides Whether or not the case is to be adjudicated

If the case is to be adjudicated, whether it has to be done on the spot or detailed proceedings are to be followed

When the case is to be adjudicated on the spot, the appraiser enters the order details in the system, submits the same

directly to the competent authority.

The authority may either send the order back for modification or pass it by affixing his digital signatures

Stop

In case of detailed proceedings, the order portion (including differential duty, fine, penalty) are entered into the system

in order to ensure clearance.

No clearance is given until all arrears / fine / penalty are paid


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Calculation of Duties

The system shall store rules of computation of duty as per the sections and provisions of theCustoms Tariff Act, 1975

Rules pertaining toCountervailing duties of excise

Special CVD (to countervail state taxes and VAT)

Preferential duty (section.4)

Lower rate of duty in case of trade agreements (section 5)

Protective duty (section 6)Safeguard duty (sections 8A, 8B and 8C)

Duty to countervail export subsidies (section 9)

Anti-dumping duty (section 9A)

shall be stored. These shall be amenable to amendment as and when there are changes in laws

Details of notifications shall be stored in a structured manner;

the system shall have a rich interface to capture such details as and when notifications are issuedA hierarchy of notifications shall be maintained to cater to amended, superceded and rescinded notifications

The system shall compute assessable value for CBE-XIII and CBE-XIV

Interest liability shall be computed beginning five calendar days from the time of assessment

till the time of payment of duty. It shall be computed as simple interest at the notified rate on a pro-rata basis

Post duty calculation, information shall flow into the risk management system


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Risk Management System

Risk based segregation of shipments into corridors of clearanceGreen channel clearances (embassies, UN and related organizations etc.)

Golden channel clearances (Accredited clients only)

System based yellow channel clearancesAppraisal of red channel cases

Risk assessment based on risk scoring of shipments using current and historical,

temporal and cross-sectional data

Configurable risk parameters

Other facilities

Electronic payment using banking interface

Reading of shipment status using bar-code scanners

Allocation of work to appraisers and superintendents in a manner to ensurehigh throughput during clearance

Dashboards for all users in the system


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Thank You !

Date post:	06-Apr-2018
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