TIME RELEASE STUDY OFA‘IIMPORT CLEAR NCE

AT VISAKHAPATNAM S APORT

OBJECTIVE of TRS

To measure the average time taken for eachactivity of the release process

To identify the weaknesses and suggest waysto remove them, if any.

r

E

Measures the mean average time taken in each processof Customs clearance from arrival of goods to therelease of the goods (Out of Charge - 00C).

Is based on the declarations filed and processedelectronically.

About 94% of import declarations are filed electronicallyin Custom House.

;10DoLot ADOPTED

Based on sampling method.

As per WCO guidelines, the sample should ideally include all thedeclarations processed in a period of at least seven consequentworking days.

It should also be one of the normal traffic periods.

Time period of 21.08.2015 to 28.08.2015,from Monday to nextMonday was undertaken for this study.

During this period, there was no slowdown or break down of EDISystem. Hence data collected reflects a fairly representative sample.

rORKFLOW OF CUSTOMS CLEARANCE

Customs clearance can be broadly classified into following stages:

Filing of IGM

ACTION OWNER : SHIPPING LINER

Filing of BE

ACTION OWNER : IMPORTER / CB

Processing of declaration automatically by Risk Management System (RMS), which decides tofacilitate the BE or send the BE for scrutiny by Assessment Group.

ACTION OWNER : ICES 1.5

Scrutiny is done either through 1 st check or 2 nd check assessment, which is done at the behest ofimporter or Customs;

ACTION OWNER : CUSTOMS

5. 1 st check assessment ACTION OWNER: CUSTOMS

WORKFLOW OF CUSTOMS CLEARANCE

Cntd...

2 nd Check Assessment

ACTION OWNER : CUSTOMS

Payment of Duty ACTION OWNER : IMPORTER / BANK

Goods Registration ACTION OWNER: IMPORTER / CB

Examination of goods ACTION OWNER : CUSTOMS

10. Out of Charge (00C) in ICES. ACTION OWNER : CUSTOMS

Of the stages mentioned above, time attributable to processingby Customs officers would be aggregate of time taken for assessmentand examination (stages 3 to 6 and 9 & 1 0). However, the total time foran imported Consignment lies in Customs Area is aggregate of stages1 to 10.

ANALYSIS

TOTAL NUMBER OF BILLS OF ENTRY FILED 441

NUMBER OF BILLS OF ENTRY NON FACILITATED 270 (63 %)

SECOND CHECK BILLS OF ENTRY 268(61 %)

Time taken in Hours No. of Bs/E Cumulative %age ofTotal Documents Filed

08 173 41.99

ANALYSIS OFSTAGES 1 & 2 A. VESSEL ARRIVALTO FILING OF BE

- Action Owner : Importer / CB

16 178

43.20

< 201

48.79< 32< 40

< 48

- 72

72Total

221224

236

267

145

412

53.64

54.37

57.28

64.81

35.19

It can be noticed that only 48.79% have filed BsE within 24 hrsfrom grant of entry inwards, 16.02 % in the next 48 hours,around 35.19 % have filed BE after 72 hrs. However, it ispertinent mention that there is not much change in the averagetime taken to file BE after granting of Entry Inwards which was78 hrs. during the previous study and 79 hrs during thepresent study.

The Importer / CB needs to be readywith all the documents and filemaximum possible BsE within 24 hrs.They can also avail the facility offiling prior entry BsE upto 14 daysprior to arrival of vessel.

316

317

340

358

359

369

385

27

412

08

16

24

3240

4372

72

Total

76.70

76.94

82.52

86.8987.14

89.56

93.45

6.55

ANALYSIS OFSTAGES 2 TO 6

B. TIME TAKEN IN FILING TO ASSESSMENT- Action Owner : CUSTOMS

Time taken in Hours No. of Bs/E Cumulative %age ofTotal Documents Filed

It can be noticed that 82.52 % BsE have been assessed * Mostly on account of the BsE filed inwithin 24 hrs, 10.93% in the next 48 hours, around 6% * the evening of last working day of thehave been assessed after 72 hrs. In addition, it is pertinent week. If maximum number of BsE areto mention that there is an increase in % age of BsE filed in the early hours of the day, thereassessessed within 24 hrs from 70.11 to 82.52, at the is a likelihood of the %age of assessmentsame time the average time taken for assessment also of BsE in the first 8 hours to go up.increased from 28.38 hrs to 33.23 hrs when compared toprevious study.

As e payment is made mandatory and thefacility is available 24x7, the Importers/CBsare advised to plan duty payment well intime to avoid payment of Interest,detention and demurrage charges.

It can be noticed that in case of 57.47 % BsE, dutypayment has been made within 24 hrs, 28.05% in thenext 48 hours, around 14% have paid after 72 hrs.However, it is pertinent mention that there is a decreasein average time taken for payment of duty afterassessment from 29.52 hrs to 20.33 hrs, and at thesame there is a decrease in % of duty paid BsE within 72hours from 89% to 85% when compared to previouscti triw

ANALYSIS OFSTAGES 6 & 7

C. TIME TAKEN IN FOR PAYMENT OF DUTY AFTERASSESSMENT - Action Owner : IMPORTER/ CB

92

127

127

145

159

159189

32

221

08

16

32

<40

< 48<72

72

Total

41.63

57.47

57.47

65.6171.95

71.95

85.52

14.48

No. of Bs/E Cumulative %age ofTotal Documents Filed

Time taken in Hours

It can be noticed that in case of only 26.24 % BsEgoods have been registered within 24 Firs, 37.11% inthe next 48 hours, around 36% have been registeredafter 72 hrs. There is an increase in average timetaken for registration of goods from 78.23 Firs to96.70 hrs when compared previous FY during thesample period.

D. TIME TAKEN FOR REGISTRATION AFTER PAYMENT OFDUTY - Action Owner : Custodian/ CB

Terminal Operator / IMPORTER

ANALYSIS OFSTAGES 7 & 8

Time taken in Hours No. of Bs/E

Cumulative %age ofTotal Documents Filed

1 08 0.45

16

26

11.7624

58

26.2432 58 26.24

108

48.87

72

Total

126

140

81

221

57.01

63.35

36.65

Keep all documents ready as per CCRs.The CB / Custodian / Terminal Operatormay work in tandem so as to reduce thedwell time and stagnation in Terminal /CFSEffective message exchange among allthe stakeholders.

08

16

Time taken in Hours No. of Bs/E Cumulative %age ofTotal Documents Filed

307 74.51309 75.00346 83.98360360

361370

42

412

<40

4872

72

Total

87.3887.38

87.62

89.81

10.19

ANALYSIS OFSTAGES 8 TO 10 E. TIME TAKEN FOR OUT OF CHARGE FROM

REGISTRATION - Action Owner : CUSTOMS

1.Keep CCR documents ready.The 5.52% after 24 hours is mainly

related to 1 st check and amendmentof Bills.

Importers / CBs are suggested tomaintain data quality so thatamendments can be reduced and00C is given within 24 hours for alltha. Rillc

It can be noticed that Out of Charge has been granted in83.98% cases within 24 hrs, The remaining 5.83% cases arecleared in the next 48 hours.

INTEGRATED ANALYSIS OF THREE STUDIESCONDUCTED ON TIME RELEASE

1 A. VESSEL ARRIVALTO FILING OF BE- Action Owner : Importer / CB

72 71.47 61.31 65.44 63.45 64.81

2 B. TIME TAKEN IN FILING TOASSESSMENT

- Action Owner : CUSTOMS

24 72.94 81.25 79.20 70.11 82.52

3 C. TIME TAKEN IN FOR PAYMENT OFDUTY AFTER ASSESSMENT -

Action Owner : IMPORTER/ CB

72 45.17 50.30 51.68 89.92 85.52

4 D. TIME TAKEN FOR REGISTRATIONAFTER PAYMENT OF DUTY -

Action Owner : Custodian/ CBTerminal Operator /

IMPORTER

72 28.41 29.76 26.38 70.90 63.35

5 E. TIME TAKEN FOR OUT OF CHARGEFROM REGISTRATION -

Action Owner : ...._ - -

24 87.06 96.13 97.55 94.48 83.98