Clearance of Shipments under Direct Port Delivery (DPD) for Imports and Direct Port Entry (DPE) for Exports.

[YAGAY andSUN]

The clearance of shipments under Direct Port Delivery (DPD) for imports and Direct Port Entry (DPE) for exports involves streamlined procedures that reduce delays and costs by eliminating intermediaries like Container Freight Stations (CFS). Below is a detailed explanation of the clearance process, applicable charges, and required formalities for both DPD and DPE:

1. Clearance of Shipment Under Direct Port Delivery (DPD)

The DPD system is designed to facilitate faster import clearance by enabling the goods to be delivered directly from the port to the consignee's premises, bypassing the traditional Container Freight Stations (CFS). Here's the procedure for the clearance of imports under DPD:

Procedure for DPD Clearance:

1. Pre-arrival Processing:
   • Bill of Entry: The importer files a Bill of Entry (BoE) through the Indian Customs EDI System. This is done online by the importer or their customs broker before the goods arrive at the port.
   • Payment of Duties: The importer must ensure that the customs duties are calculated, and payment is made through the customs electronic payment system.
   • Documents Submission: Required documents such as commercial invoices, packing lists, Bill of Lading, Importer Exporter Code (IEC), GST registration, etc., must be submitted electronically.
2. Assessment and Clearance:
   • Self-Assessment: The importer must self-assess the correct customs duty, classify the goods correctly, and determine the customs value (as per the Customs Valuation Rules).
   • Customs Examination (if needed): In certain cases, goods may be examined physically by Customs, but for DPD, the examination process is expedited. Customs will examine the documents first, and only if discrepancies are found will physical examination of goods take place.
3. Direct Delivery:
   • Once the BoE is processed and customs duties are paid, the goods are cleared for delivery.
   • Direct delivery is authorized, and the goods can be moved from the port to the importer’s premises directly, bypassing the CFS.
4. Post-Clearance Audit:
   • Customs may conduct a post-clearance audit to verify the accuracy of the self-assessment and the duties paid. If discrepancies are found, penalties may be imposed.

Applicable Charges for DPD:

• Customs Duty: The primary charge is the applicable customs duty (including Basic Customs Duty, IGST, etc.) calculated based on the value and classification of goods.
• Port Charges: These include charges for the use of port facilities but are typically lower compared to CFS charges since there is no storage involved.
• Handling Charges: Fees for moving goods from the port to the importer’s premises may apply. These charges can be negotiated between the importer and logistics providers.
• Shipping Charges: If any additional transport costs are incurred between the port and the final destination, those are also applicable.
• Inspection Charges (if applicable): If Customs decides to physically inspect the goods, they may charge a fee for inspection.

Formalities for DPD:

• Customs EDI System: The entire clearance process is managed through the Customs Electronic Data Interchange (EDI) system, which facilitates the submission of documents, filing of bills, and payment of duties.
• Bonded Warehouse: If the goods are not immediately cleared or if there are pending payments, the goods can be stored temporarily in a bonded warehouse.
• Documentation: The key documents for DPD clearance include:
  • Bill of Entry (BoE)
  • Commercial Invoice
  • Bill of Lading
  • Packing List
  • GST details
  • Import License (if applicable)

2. Clearance of Shipment Under Direct Port Entry (DPE)

The DPE system is designed for exporters, allowing goods to be directly moved from their premises to the port and loaded onto the vessel for export, without being transferred to a Container Freight Station (CFS).

Procedure for DPE Clearance:

1. Pre-Export Processing:
   • Shipping Bill: The exporter files a Shipping Bill online through the Customs EDI System.
   • Payment of Export Duty: While most exports are duty-free, some goods may attract export duties, and the exporter must ensure that these are paid if applicable.
   • Document Submission: The exporter submits the necessary documents including:
     • Shipping Bill
     • Invoice
     • Packing List
     • Export License (if required)
     • Certificate of Origin (if required)
     • GST Details (for compliance with GST on export)
2. Customs Examination and Clearance:
   • Self-Assessment: The exporter must self-assess the export goods and the related customs duty (if any), and submit the appropriate export documentation.
   • Customs Verification: Customs will verify the shipping documents. If no discrepancies are found, goods are cleared for export. The export shipment may also be subject to physical examination, but in DPE, this is typically minimal to expedite the process.
   • Direct Port Entry Approval: After clearance, the goods are directly moved from the exporter's premises to the port. Customs seal and verification will be carried out at the port.
3. Loading onto the Vessel:
   • After clearance by Customs, goods are loaded directly onto the vessel for shipment.
   • Exporter must ensure all export documentation is completed and handed over to the shipping line for issuance of the Bill of Lading.
4. Post-Export Audit:
   • Similar to DPD, Customs may conduct a post-clearance audit for DPE shipments to ensure compliance with export regulations.

Applicable Charges for DPE:

• Export Duty: Only applicable in cases where specific goods attract export duties.
• Shipping Line Charges: These include charges levied by the shipping line for container booking, handling, and transport to the vessel.
• Port Handling Charges: Fees for using the port facilities, including the handling of goods at the port.
• Transport Charges: Costs for transporting goods directly from the exporter's premises to the port.
• Inspection Charges: If the goods are inspected by Customs, there may be charges associated with the examination.

Formalities for DPE:

• Customs EDI System: The exporter must file all export documentation electronically through the Customs EDI system, ensuring compliance with Export Promotion Schemes (such as MEIS, SEIS, etc.).
• Customs Clearance: Exporters must ensure that all goods are cleared by Customs before they reach the port and must be ready for direct port entry.
• Documentation: The primary documents for DPE include:
  • Shipping Bill
  • Commercial Invoice
  • Packing List
  • Bill of Lading
  • Export License (if required)
  • GST details (for compliance with GST on export)

Key Differences in Clearance Process (DPD vs DPE):

Aspect	Direct Port Delivery (DPD)	Direct Port Entry (DPE)
Target Group	Importers	Exporters
Key Document	Bill of Entry (BoE)	Shipping Bill
Customs Duty	Pay applicable customs duty (Basic Customs Duty, IGST, etc.)	Pay applicable export duties (if any)
Customs Process	Self-assessment and clearance for direct delivery	Self-assessment and clearance for direct loading to vessel
Final Destination	Direct delivery to the consignee’s premises	Direct loading onto the vessel for export
Inspection	Customs inspection (if needed)	Customs inspection (if needed)
Charges	Customs duties, port charges, handling, shipping costs	Shipping charges, port handling, transport, inspection charges

Conclusion: Both DPD and DPE are designed to streamline the clearance process, reduce congestion at Container Freight Stations (CFS), and lower costs for businesses involved in imports and exports. The self-assessment of duties, documentation through EDI systems, and direct movement of goods are key features of both processes. However, the procedures differ based on whether the business is importing (DPD) or exporting (DPE) goods.