THE COURIER IMPORTS & EXPORTS (CLEARANCE) REGULATIONS, 1998

THE Courier Imports and Exports (Clearance) Regulations, 1998 provide for clearance of import and export goods brought through an authorised courier at the airports. The facility of courier clearance is presently available at Mumbai, Delhi, Chennai, Calcutta, Bangalore, Hyderabad, Ahmedabad and Jaipur. Under this facility, import and export consignments brought by the courier are allowed quick clearance without procedural hassles to importers or exporters. The procedural formalities and duty payment for customs clearance are completed by the courier company on behalf of importer / exporter and exporters or importers are not required to come to Customs for taking clearance. However, the goods where the weight of individual package is more than 70 kgs or the goods which require specific conditions to be fulfilled under any other Act for the time being in force or any rule or regulation made thereunder are not allowed to be imported and exported through courier.

The consignments imported or exported through couriers are actually carried in passenger aircrafts. The regulations give option that these may be carried either by an on-board courier or the person in-charge of aircraft. However, due to security reasons and requirement of Bureau of Civil Aviation Security (BCAS) the carriage of courier consignments are allowed only if an on-board courier accompanies these. On arrival of import goods at the airport, the on-board courier hands over the goods to different courier companies for undertaking customs clearance in respect of their consignments.

Categories of goods allowed for import or export through Courier

(i) IMPORT: All goods except following categories of goods, which require testing of samples, or reference to other statutory authorities or experts i.e. plant quarantine, PFA authorities etc. are allowed to be imported. The restriction on import of following goods through courier has been imposed, as the passenger terminals are not equipped to handle such consignments and also undertaking testing and taking no-objection from other authorities will delay the clearances

(a) animals and parts thereof, piants and parts thereof. (b) Perishables.

(c) Publications containing maps depicting incorrect boundaries of India. (d) Precious and semi precious stones, gold or silver in any form; and

(e) Goods falling within chapters 28, 29 and 38 of the First Schedule to the Customs Tariff Act, 1975.

(ii) EXPORT: All goods except following categories of goods are allowed to be exported through Couriers

(a) Goods attracting any duty on exports

(b) The export under the claim of drawback, DEPB, DEEC, EPCG or any other export promotion schemes.

(c) Goods in respect of which the proper officer directs the filing of shipping bill in prescribed form

(d) Goods where the value of the consignment is above rupees twenty five thousand involving transaction in foreign exchange. However, the limit of Rs. 25000/- shall not apply where the G.R waiver or specific permission has been obtained from the Reserve Bank of India.

(iii) Notwithstanding any restrictions at (i) or (ii) above, the import of gems and jewellery, including samples thereof by export-oriented units or units in export processing zone and export of cut and polished diamonds, gems and jewellery under any scheme of Exim Policy 1997-2002 by any EOU, units in EPZ or units in DTA, if the value of each export consignment under such export doesn't exceed Rs 20 lakhs.

3. Packing Requirements:

1 ) The import or export goods need to be packed in identifiable courier company
bags with appropriate labels separately for following categories of goods:

(a) documents (b) samples and free gifts (c) dutiable and commercial goods.

2) Each package of import and export goods shall bear a declaration from the sender regarding the contents of the package and value thereof.

4. Classification of Goods for the purpose of courier clearance:

For the purpose of courier clearance, import and export are broadly classified into following three categories

(a) documents (b) Samples and free gifts (c) Dutiable and commercial good.

For the purpose of these regulations documents, samples and free gifts are defined as follovvs:

Documents: Documents include any message, information or data recorded in paper, cards or photographs having no commercial value, which do not attract any duty or subject to any prohibition / restriction on their import or export.

Samples: Samples mean any bonafide commercial samples and prototype of goods supplied free of charge of a value not exceeding Rs 10000/- for exports and Rs. 5000/- for imports which are not subject to any prohibition or restriction on their import or export and which does not involve transfer of foreign exchange.

Free Gifts: It means any bonafide gifts of articles for personal use of a value not exceeding rupees 25000/- for a consignment in case of exports and Rs. 5000/- for imports which are not subject to any prohibition or restriction on their import or export and which does not involve transfer of foreign exchange.

5. Procedural formalities for clearance of Import goods

(a) The on-board courier shall file a declaration of goods brought by him to

Customs in prescribed form Courier Bill of Entry-l(CBE-I) appended to the regulations immediately on arrival at the airport.

(b) The authorised courier shall file a declaration of goods in form Courier Bill of Entry-ll (CBE-II) appended to the regulations.

(c) The authorized company shall file bill of entry in form Courier Bill of Entry-111 (CBE-111) for documents, Courier Bill of Entry-lV (CBE-IV) for samples and free gifts and as the case may be in form Courier Bill of Entry-V(CBE-V) for dutiable goods appended to the regulations.

(d) The authorised courier shall present all the imported goods brought by an on-board courier to the Customs officer for examination and assessment.

Notvvithstanding above, for follovving goods, the entry shall be made in the form prescribed in the Bill of Entry (Forms) Regulations, 1976, namely:

- Goods under the claim of exemption from duty applicable to EOUs and units in EPZs.
- Goods imported under DEPB, DEEC and EPCG schemes.
- Goods imported against any other licence issued under the Foreign Trade ( Development and Regulation) Act, 1992.
- Goods imported by a person who is related to consignor within the meaning of
Rule 2 of Customs Valuation (Determination of Price of Imported Goods) Rules, 1988

6. Procedural formalities for clearance of Export goods

(a) The authorized courier shall make entry of goods in form Courier Shipping Bill-l (CSB-I) for documents or Courier Shipping Bill-ll(CSB-II) for other shipments appended to regulations with the proper officer of Customs at the airport before departure of flight carrying export goods.

(b) The authorized courier shall present the export goods to the proper officer for inspection, examination and assessment.

Nohvithstanding above, for following goods, entry shall be made in the form prescribed in the Shipping Bill and Bill of Export (Form) Regulations 1991 and shall be processed at Air Cargo Complex or the EQUs or EPZs or FTZs or STP or EHTP and thereafter the Assistant Commissioner of Customs, may, if requested by the exporter, handover such goods to a courier agency for onward dispatch:

- Goods originating from EOUs, units in FTZs / STPs / EHTP.

- Goods proposed to be exported under DEPB, DEEC,EPCG Schemes.

- Goods under claim of drawback

- Goods which require license for export under the Foreign Trade ( Development and Regulation) Act, 1992.

7. Registration of Authorised Courier

Any person to operate as authorized courier shall apply in writing to the Commissioner of Customs having jurisdiction over the airport from where the goods are to be imported or exported for registration. The registration is valid for 3 years and it can be renewed each time for another 3 years if performance of courier is satisfactory. An authorized courier is allowed to have registration at more than one airport. However, separate bond and security have to be furnished at each airport. The person applying for registration should fulfill following conditions:

- he shall disclose to the satisfaction of Commissioner of Customs that he is financially viable and in support thereof he shall produce a certificate issued by a scheduled bank or such other proof evidencing possession of assets of a value not less than Rs 5 lakhs.

- the applicant shall enter into bond in such form with a security of Rs two lakhs for registration at Mumbai, Calcatta, Delhi and Chennai and Rs one lakh for other airports in cash or in the form of postal security or National Savings Certificate or bank guarantee for complying with the provisions of the Customs Act, 1962 and the rules and regulations made thereunder. The condition of bond shall also be that the applicant shall agree to pay the duty, if any, not levied or short levied with interest if applicable on any goods taken clearance by the authorized courier.

8. Obligation of Authorized Courier

An authorized courier shall

(a) Obtain an authorization from each of the consignee of goods imported through them and each of the consignor of export goods proposed to be exported through them to the effect that they may act as an agent of importer or exporter, as the case may be, for clearance of import or export goods.

(b) Advise his client to comply with the provisions of the Customs Act, 1962 and rules and regulations made there-under, and in case of non-compliance thereof shall bring the matter to the notice of the Assistant Commissioner of Customs.

(c) Exercise due diligence to ascertain the correctness and completeness of any information, which he submits to Customs in relation to clearance of import or export goods.

(d) Not withhold information communicated to him by an officer of Customs relating to assessment and clearance of import goods as well as inspection/examination of import / export goods from a client who is entitled for such information.

(e) Not withhold any information relating to assessment and clearance of import / export goods from the assessing officer.

(f) Not attempt to influence the conduct of any officer of Customs in any matter pending before such officer or his subordinates by the use of threat, false accusation, duress or offer of any special inducement or promise of advantage or bestowing of any gift or favour or other thing or value.

(g) Maintain records and accounts in such form and manner as may be directed from time to time by an Assistant Commissioner of Customs and submit them for inspection to the Assistant Commissioner of Customs or an officer authorized by him, wherever required.

9. Deregistration and Forfeiture of Security

The Commissioner of Customs may revoke the registration of an authorized courier and also order for forfeiture of security on any of the following grounds:

(a) failure of the authorized courier to comply with any of the conditions of the bond executed by him under these regulation

(b) failure of an authorized courier to comply with any of the provisions of these regulation

(c) a misconduct on the part of the Authorised Courier.

Provided that revocation of registration shall be made only after a notice is issued to the Authorised Courier and he has been given opportunity to present his case in writing as well as opportunity of being heard in the matter. In cases where inquiry needs to be conducted to establish prima facie grounds against the Authorised Courier, The Commissioner of Customs may, pending inquiry, suspend the registration.

An Authorized Courier, if aggrieved by the order of the Commissioner of Customs, may represent to the Chief Commissioner of Customs within 60 days of the communication of the impugned order to them.

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