MODULE-3: CUSTOM CLEARANCE PROCEDURE FOR WHITE, YELLOW & GREEN BILL ENTRIES

In MODULE-2, I explained the documents required for clearance of consignments. Now I’ll explain customs clearance procedure for 03 types of bill of entries, so enjoy reading:-

SEE ALSO: MODULE-1, MODULE-2

CLEARANCE PROCEDURE FOR WHITE BILL OF ENTRY

The clearing Agent first receives the delivery order from the shipping agency and subsequently files the Bill of Entry contained in the computer CD along with the previously mentioned documents with the customs department, where a manifest for the consignment is filed. After the filing of the manifest machine number and group number is allotted. Group number is a predefined number based on the category set by Customs department. The bill of entry should be completed in all respects and the amount of payable customs duty, sales tax, income tax etc. should also be typed on the bill of entry, calculated on the basis of invoice under the correct Pakistan Customs Tariff (PCT) Heading. The test reports (where applicable) should be typed in case of chemicals. Similarly, in case of imports of tea, the values certified by Pakistan Tea Association shall be declared on the bill of entry for the purposes of assessment.

Next step is the Appraisement of the consignment. The designated customs officials examine the goods to ensure whether the particulars given in the bill of entry i.e. amount of duties and taxes, PCT Heading etc. correspond with the goods imported. Provided here is no contradiction with the particulars given in the bill of entry and the goods actually imported, the case is marked to the principal appraiser of the assessment hall, for assessment of duties and taxes on the imported goods. On assessment of the duties and taxes, the amount so assessed is deposited in the treasury and the goods are released.

CLEARANCE PROCEDURE FOR YELLOW BILL OF ENTRY:

The procedure for the yellow Bill of Entry is almost identical to the white bill of entry however; the only difference is that instead of clearing the shipment against cash, it is placed in a bonded warehouse. The customs appraisal procedure remains the same, however, in case of filing of yellow bill of entry, a No Objection Certificate is required from the bonded warehouse authority. In addition to NOC a surcharge amount equivalent to 2% of the customs assessed value of the shipment or such other rate, as is for the time being fixed by the CBR, is paid to the Government.

Bonded warehouse can be very helpful to business, which does not require the whole shipment immediately released. It can be best utilized in case of shortage of cash amount with an importer for the release of a consignment. It is a storage facility, where the consignment is stored under secured conditions for a certain period of time that has been predefined. The shipment remains in the bonded warehouse against nominal charges for a specified period until the importer requires part of whole of the shipment, which can be cleared and released against the filing of green bill of entry.

CLEARANCE PROCEDURE AGAINST GREEN BILL OF ENTRY:

The procedure for clearance against green bill of entry is same as that of white bill of entry except that it is filed to ex-bond the goods in whole or in part of the goods bonded against yellow bill of entry.

IMPORTANT ISSUE:

Once the white bill of entry is filed for clearance of goods, it is not possible to transfer the consignment into bonded warehouse.

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