Bill of Entry (Electronic Integrated Declaration and Paperless Processing) Regulations, 2018[M.F (D.R) Notification No. 36/2018-Cus (N.T.) dated 11-5-2018]

[YAGAY andSUN]

The Bill of Entry (Electronic Integrated Declaration and Paperless Processing) Regulations, 2018, under M.F (D.R) Notification No. 36/2018-Cus (N.T.), dated 11th May 2018, were introduced by the Indian Ministry of Finance as part of efforts to modernize and streamline customs procedures in India. These regulations are designed to facilitate the electronic filing of Bill of Entry (BoE), which is an essential document required for the clearance of goods being imported into the country. By introducing paperless processing and electronic declarations, the regulations aim to simplify and speed up the customs clearance process, reduce human intervention, increase transparency, and promote efficiency in international trade.

Objectives of the Bill of Entry (Electronic Integrated Declaration and Paperless Processing) Regulations, 2018

• Digitization of Customs Procedures:
  • The primary objective of the regulation is to shift the Bill of Entry (BoE) process from paper-based submission to an electronic platform, making it faster, more secure, and efficient.

• Promoting Paperless Processing:

  • By adopting electronic integrated declarations, the regulation aims to eliminate the need for physical documentation, reducing paperwork and the associated administrative burden for both businesses and customs authorities.

• Enhancing Efficiency and Reducing Delays:

  • Electronic submission allows for real-time processing of customs documents, thus reducing delays and improving the overall efficiency of the customs clearance process. This leads to faster release of goods and smoother cross-border trade operations.

• Strengthening Transparency:

  • The electronic system allows for better tracking of documents and transactions, making it easier for businesses and customs authorities to monitor the progress of the Bill of Entry process. This transparency reduces opportunities for fraud or errors in documentation.

Key Features of the Bill of Entry (Electronic Integrated Declaration and Paperless Processing) Regulations, 2018

• Electronic Filing of Bill of Entry:

  • Under these regulations, importers are required to submit their Bill of Entry electronically through the Indian Customs Electronic Data Interchange (EDI) System. This eliminates the need for physical submission of documents to customs authorities.
  • The BoE must include all the relevant information and data, such as the importer details, description of goods, HS code, value of goods, and customs duty applicable.

• Integrated Declaration System:

  • The electronic BoE process is integrated with other necessary customs declarations and clearance systems, ensuring seamless data flow across various departments and agencies. The declaration is automatically shared with relevant authorities, such as the Directorate General of Foreign Trade (DGFT) or other regulatory bodies, for quicker processing and approval.

• Paperless Processing:

  • With the implementation of paperless processing, customs authorities are able to process BoE declarations digitally. This reduces administrative tasks, accelerates the processing time, and helps reduce the carbon footprint associated with printing and handling paper documents.

• Electronic Verification and Authentication:

  • The electronic Bill of Entry system incorporates digital signatures for verification and authentication, ensuring the legitimacy of the declarations made by importers. This reduces the chances of errors and fraud.

• Real-Time Updates and Notifications:

  • Importers and customs authorities can receive real-time updates on the status of the Bill of Entry, ensuring faster decision-making. The system generates automatic alerts and notifications for actions required, reducing the need for manual follow-up and expediting the process.

• Simplified Customs Clearance:

  • The Bill of Entry process now includes integrated features such as customs duty payment, examination and inspection requests, and outward clearance in a single digital platform, streamlining the entire process from document submission to goods release.

• Reduction of Human Intervention:

  • By minimizing human intervention in document processing and approval, the regulations help reduce the potential for human error, corruption, or delays in the clearance process.

• Compliance with World Customs Organization (WCO) Standards:

  • The regulations align with the international standards set by the World Customs Organization (WCO), contributing to India’s participation in the global trade facilitation framework.

Process Flow for Electronic Bill of Entry (BoE) Under the Regulations

• Submission of BoE:

  • The importer submits an electronic Bill of Entry through the Indian Customs EDI system. The submission includes all required data such as shipment details, valuation of goods, and other import-related information.

• Customs Processing:

  • Upon submission, the customs authorities process the electronic declaration and cross-check the details against existing records, including the HS code, classification, and valuation.
  • The system triggers automatic checks to verify compliance with tariff and non-tariff regulations.

• Payment of Duties and Taxes:

  • Importers can pay applicable customs duties and taxes online via the electronic system, which eliminates the need for manual payments or bank visits.

• Examination and Inspection:

  • If required, the system generates an automatic request for physical inspection or examination of goods, ensuring that the necessary checks are conducted before the goods are cleared.

• Clearance and Release:

  • After verification, duty payment, and any necessary inspections, customs authorities grant clearance for the release of goods. Importers are notified electronically, and the goods are released for further processing, transport, or delivery.

Benefits of the Bill of Entry (Electronic Integrated Declaration and Paperless Processing) Regulations, 2018

• Improved Efficiency:

  • Electronic processing significantly speeds up the clearance of goods, as the customs authorities can process and verify the data quickly, reducing clearance time and making the process more efficient.

• Cost Reduction:

  • By eliminating paper-based processes, businesses can save on printing, courier, and handling costs. Additionally, faster clearance reduces demurrage and storage fees for goods held at the customs port.

• Enhanced Transparency:

  • The electronic system enables real-time tracking and monitoring of the BoE status, improving the accountability and transparency of customs procedures.

• Reduction of Human Error:

  • Automated data entry and processing reduce the risk of errors caused by manual paperwork, leading to more accurate customs declarations and faster processing times.

• Environmentally Friendly:

  • The shift to paperless processing reduces the consumption of paper and helps reduce the carbon footprint, aligning with broader sustainability goals.

• Ease of Access and Convenience:

  • Importers can access the BoE submission system online from anywhere, making the process more convenient and accessible, especially for businesses engaged in cross-border trade.

• Regulatory Compliance:

  • The system ensures compliance with customs regulations, tariff classification, and other import rules, helping businesses avoid penalties or disputes related to non-compliance.

• Cost and Time Savings:

  • Faster processing times translate to faster goods release and reduced operational costs, ultimately enhancing the overall cost-effectiveness of import operations.

Challenges and Considerations

• Technical Issues:

  • The electronic system may sometimes face technical glitches, such as system outages or slow processing speeds, which could delay the clearance process.

• Adoption and Familiarity:

  • Small businesses or importers who are not familiar with electronic systems may find it challenging to navigate the digital platform. Adequate training and support may be required to ensure smooth adoption.

• Data Security:

  • With the digitization of sensitive data, there is a need to maintain robust security measures to prevent data breaches and ensure the privacy of business and trade information.

• Integration with Other Systems:

  • The success of the electronic BoE system depends on its integration with other government systems such as the DGFT, export-import policy, and port authorities. Issues in integration could cause delays or inefficiencies.

Conclusion: The Bill of Entry (Electronic Integrated Declaration and Paperless Processing) Regulations, 2018 (M.F (D.R) Notification No. 36/2018-Cus (N.T.) dated 11th May 2018) represent a significant modernization of India's customs clearance process. By shifting from a paper-based to an electronic, paperless process, the regulations aim to streamline and expedite the clearance of imported goods, reduce administrative burdens, increase transparency, and enhance overall efficiency in trade operations. The adoption of electronic filing is part of India's broader efforts to simplify its trade processes, reduce transaction costs, and promote a more business-friendly environment in line with global standards. While challenges such as system integration and data security may arise, the long-term benefits of these regulations are expected to facilitate smooth, efficient, and secure customs operations for both businesses and authorities.