Turant Customs, Faceless Customs, Contactless Customs, Paperless Customs - CBEC's Customs Manual 2023 - Customs

4. Turant Customs 4.1 India has seen significant improvements in the World Bank s Ease of Doing Business (EoDB) Index rankings in recent years. Customs is concerned with the `Trading Across Borders` (TAB) component of the EoDB index which is primarily based on time and cost of import and export processes. The improvements in the TAB parameter of EoDB Index have been made possible largely due to several reform measures initiated and implemented by the CBIC, which inter alia include SWIFT, e-Sanchit, DPD, revised AEO programme, RFID e-seal programme etc. which combined to reduce the time and cost of clearance of goods in the various Customs ports. The next target of Government is to be in the top 50 of the EoDB ranking in this category and the efforts in this direction are being spearheaded by the CBIC by the introduction of the next generation reforms aptly named Turant Customs which is a comprehensive package of various elements that have been implemented in recent years. The next generation reforms in the Customs clearance process under the umbrella of Turant Customs are with the objectives of speedy clearance, transparency in decision making, and ease of doing business. Board rolled out numerous changes to the Customs clearance process, which combine together support Turant Customs. These initiatives include the self-registration of goods by importers, automated clearances of bills of entry, digitisation of customs documents, paperless clearance, etc. The Turant Customs is primarily based on Faceless, Contactless and Paperless Customs processes. 4.2 Faceless Customs 4.2.1 Indian Customs has initiated Faceless Assessment on imports from June 2020 (Reference Circular No.28/2020-Customs and Instruction No.09/2020 both dated 5th June 2020). The first phase began by linking Chennai and Bengaluru which was gradually expanded to other geographical locations till eventual all India coverage by 31.10.2020. Briefly put, Faceless Assessment uses a technology platform to separate the Customs assessment process from the physical location of a Customs officer at the port of arrival. This measure is with the intent of bolstering efforts to ensure an objective, free, fair and just assessment. Key objectives of Faceless Assessment include: (i) Anonymity in assessment for reduced physical interface between trade and Customs (ii) Speedier Customs clearances through efficient utilisation of manpower (iii) Greater uniformity of assessment across locations (iv) Promoting sector specific and functional specialisation in assessment. 4.2.2 To further smoothen implementation of Faceless Assessment and to have a robust system in place for meeting desired objectives as above, the Central Board of Indirect Taxes and Customs (CBIC) constituted the National Assessment Centres (NACs) in September 2020. These NACs have been mandated, amongst other responsibilities, to monitor assessments, to set up structures for liasoning with different Customs formations and Directorates under CBIC, to function as knowledge hub for the commodities assigned to that particular NAC etc., (Reference Circular No.40/2020-Customs dated 4th September 2020). 4.2.3 Subsequent to all India coverage of imports by Faceless Assessment, CBIC took certain measures for timely assessment and faster clearance of goods such as-measures to ensure that there would be no delays on weekends and holidays, measures to minimize and rationalize raising of queries to importers, measures to streamline import cases which are to be sent for First Check examinations, measures for better facilitations by warranting interactions between NACs and Risk Management Division of CBIC, guidelines for reassessing imports as well as general grievance redressal mechanisms and issues relating to enforcement of Rules of Origin (Reference Circular No.45/2020-Customs dated 12th October 2020). 4.2.4 After comprehensive stakeholder consultations with members of the trade, CBIC issued fresh directions and clarifications on various aspects relating to Faceless Assessment such as re-assessments to be done in accordance with principles of natural justice, requirement of members of the trade to ensure full and complete submission of required documents and accurate declarations, increasing the monetary limits for assessment and for sensitizing Customs officers in assessment of liquid bulk cargo (Reference Circular No.55/2020-Customs dated 17th December 2020). 4.2.5 In July 2021, CBIC has taken a call to increase facilitation to 90 percentage (%). This implies that more number of import documents would be cleared without intervention of Customs officers. Linked to this decision, the existing Direct Port Delivery (DPD) scheme has also been revamped to shift to a regime of Customs document based DPD from existing client based DPD. CBIC has also prescribed time limits for assessments and has taken a call to further re-organise composition of Faceless Assessment Groups (FAGs) under the NACs with the intent to foster faster clearances and better facilitation. (Reference Circular No.14/2021-Customs dated 7th July 2021). 4.2.6 Standard Examination Order: In order to enhance uniformity in assessments across various customs ports across the country, CBIC has implemented Standard Examination Orders in the Customs system. The said implementation started for goods covered under Assessment Group 4 in all the Customs Stations. This functionality is expected to enhance the uniformity in examination, and lower the time taken in the process as well as reduce associated costs. Considering the on track implementation and to harmonize the examination orders across FAGs, the Board has implemented the Standard Examination Orders to the goods across all other Assessment Groups also. [Refer Circulars No.14/2021-Customs dated 07.07.2021, No.16/2022-Customs dated 29.08.2022 , No.23/2022-Customs dated 03.11.2022 and No. 02/2023 dated 11.01.2023 ] 4.3 Contactless Customs: In recent years, CBIC has initiated reforms such as online registration of goods, automated queuing and automated clearances of Bills of Entry, simplified online registration in ICEGATE, auto debit of bonds, setting up of Turant Suvidha Kendras (TSKs) etc. All these have enabled an environment which has done away with the requirement of members of the trade to physically interact with Customs in the goods clearances process and has fostered a `Contactless Customs` environment. 4.3.1 Online registration of goods: A facility has been provided for the importers or their authorised persons to register the goods online on the ICEGATE web portal after the goods have arrived (and not after payment of duty, as per previous practice). This self registration has further reduced the time of clearance besides freeing the Customs officers for handling other important items of work. [Refer Circular No.09/2019-Customs dated 28th February 2019 ] 4.3.2 Automated queuing of Bills of Entry: Significant changes have been made in the ICES 1.5 for clearance of imported goods after finalisation of assessment and payment of duty under Section 47(1) of the Customs Act, 1962. The proper officer now has access to a fully automated queue of Bills of Entry ready for the grant of clearance in the ICES 1.5 which obviates the present necessity of the importer/authorised person having to present the Bill of Entry number and date to this officer for seeking clearance. Based upon the Bills of Entry which are ready for clearance in this automated queue the proper officer would be able to directly and immediately grant clearance on the System. Besides greatly reducing the dwell time of the goods that are pending only for the grant of such clearance, this has reduced the interface of the trade with the department personnel to the advantage of both. The Bills of Entry which are fully facilitated by the Risk Management System will also be automatically routed to the proper officer for giving clearance after registration has been completed by the importer. [Refer Circular No.09/2019-Customs dated 28th February 2019 ] 4.3.3 Automated clearances of Bills of Entry : A further trade facilitation initiative in the Customs clearance process is the Customs Compliance Verification (CCV) which operates after an importer registers the imported goods even while duty has not been paid or its payment is in process. Once the goods are registered, the proper officer carries out all necessary verifications as per Sections 17/18 and Section 47(1) of the Customs Act, 1962. On satisfaction that the goods are ready for clearance, but for the payment of duties, the proper officer confirms the completion of the CCV for the particular Bill of Entry in the System. Thereafter, on payment of duty by the importer, the Customs Automated System electronically gives clearance to the Bill of Entry, as provided for in the 1st proviso to Section 47(1) of the Customs Act, 1962. This facility of automated clearance of Bills of Entry has been introduced on a pilot basis in Chennai Customs House and Jawaharlal Nehru Customs House w.e.f. 06.02.2020. The said facility was introduced at an all India level w.e.f. 05.03.2020. [Refer Circular No.09/2019-Customs dated 28th February 2019 , Circular No.05/2020- Customs dated 27th January 2020 , Circular No.15/2020-Customs dated 28th February 2020 ] 4.3.4 Registration of Authorised Dealer Code, Bank Accounts through ICEGATE : CBIC has now enabled functionality within ICEGATE login which allows the exporters to make an online request for registration/modification of their AD Code / Bank Account(s) and also electronically submit the Passbook copy or Bank Authorisation letter through eSanchit. The exporters would also have access to a Dashboard to view the status of approval and acceptance at PFMS, for quick rectification at their end. [Refer Circular No.32/2020-Customs dated 6th July 2020 ] 4.3.5 Automated debit of bond after Assessment: CBIC has done away with the requirement for importers to physically visit Customs House for physical debit of Bonds after the Bill of Entry is returned (to the importer) for the payment of duty. ICES now automatically debits the Bond and reflect the same in the first copy of the Bill of Entry, provided the details of the Bond are provided during submission of the Bill of Entry. [Refer Circular No.32/2020-Customs dated 6th July 2020 ] 4.3.6 Simplified Registration of Importers/Exporters in ICEGATE: Simplified Registration module for importers / exporters based on verification provided in associated GSTIN has been provided without the requirement of digital signature. These functionalities are useful to the importers / exporters and would help them in their management of imports and exports. Some of these functionalities are Management of Bank Accounts, Ledger View, IGST Refund status, Query Reply etc. [Refer Circular No.32/2020-Customs dated 6th July 2020 ] 4.3.7 Setting up of Turant Suvidha Kendra in All Customs Formations: Circular No.28/2020-Customs, dated 05.06.2020 provided for setting up Turant Suvidha Kendras (TSK) for the purpose of implementation of 1st Phase of Faceless Assessment at Bengaluru and Chennai. Considering the benefits ushered in by providing single point interface, Board decided to extend TSKs to all the Customs formations for carrying out the functions as follows: (i) The document verification by Customs officers at Assessment and Customs Compliance Verification (CCV) stages would normally be based on the documents uploaded in the e-Sanchit, not requiring physical submission of documents. However, if in any exceptional situation the physical submission of documents is required by Customs, for defacement or validation, such submission would be made only at the TSKs. (ii) Documents requiring verification during examination for validation with goods would continue to be done during examination, as at present. (iii) One or more TSKs may be set up for the convenience of the trade. (iv) Suitable procedures are to be devised for handling safe keeping of the documents produced at TSKs. Ideally these documents should also be kept in electronic form [Refer Circular No.32/2020-Customs dated 6th July 2020 ] 4.4 Paperless Customs : CBIC has taken initiatives to enable digital submission and transmission of both Bills of Entry and Shipping Bills in 2020. Besides saving time, the cost of printing paper documents has also been substantially reduced. 4.4.1 PDF copies of Bills of Entry and gatepass- Board has decided to enable electronic communication of PDF based Final eOoC (electronic Out of Charge) copy of BoE and eGatepass to the importers/Customs Brokers. This electronic communication would reduce interface between the Customs authorities and the importers/Customs Brokers and also do away with the requirement of taking bulky printouts from the Service Centre or maintenance of voluminous physical dockets in the Customs Houses. The Final eOoC copy of BoE and eGatepass copy is now emailed to the concerned Customs Broker and/or importer, if registered, once the Out of Charge is granted. The eGatepass copy will be used by the Gate Officer or the Custodian to allow physical exit of the imported goods from the Customs area. These new features have been implemented w.e.f 15.04.2020. [Refer Circular No.19/2020-Customs dated 13.04.2020 ] 4.4.2 Electronic Communication of PDF Based Copies of Shipping Bill e-Gatepass to Custom Brokers/Exporter: In its continuing endeavour to promote Faceless, Contactless, Paperless Customs Board decided to rely upon digital copies of the Shipping Bill and do away with the requirement of taking bulky printouts from the Service Centre or maintenance of voluminous physical dockets in the Custom Houses. This reform will yield immense benefits in terms of saving the time and cost of compliance for the trade, thereby enhancing the ease of doing business, while providing enhanced security features for verification of authenticity and validity of the electronic document. Board has directed that w.e.f. 22.06.2020 only the digital copy of the Shipping Bill bearing the Final LEO would be electronically transmitted to the exporter and the present practice of printing copies of the said document for the exporters and also for maintaining a docket in the Customs House would stand discontinued. [Refer Circular No.30/2020-Customs dated 22.06.2020 ] Diagrammatic Representation of Pre-Turant Customs and Post-Turant Customs process flow for Imports is illustrated in Figure 3.1, on the next page. Figure 3.1: Process Flow for Imports- Pre and Post Turant Customs