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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MODULE-2 DOCUMENTS REQUIRED FOR CUSTOMS CLEARANCE IN PAKISTAN

In MODULE-1, we covered the following topics:

a. Customs Clearance/Introduction

b. Arrival of Goods at Pakistani Customs Ports

Now enjoy the next module:-

Following documents are required and provided to the clearing agent upon arrival of goods at Pakistani Customs Ports for processing:-

a) Invoice of shipment

b) Packing list

c) Bill of lading

d) Copy of the Letter of Credit or Contract

If the importer is importing for the first time, following additional documents are to be submitted:

a) Copy of the Sales Tax Registration Certificate as an importer

b) Copy of Registration Certificate issued by the Export Promotion Bureau in case of import of Gems and Jewelry

c) Copy of the National Tax Number

d) Copy of the most recent sales tax return

It may be noted that now there is no need to obtain import and export license from the Export Promotion Bureau of Pakistan.

Filing / Examination of Bills of Entry:

Provided all the above mentioned documents are complete, the clearing agency prepares the Bill of Entry.

It may be noted that at present the bills of entry are being filed electronically with the customs department. For such purposes the customs official have issued Pin Code to every clearing agent along with a CD which contains the standard formats of bills of entry in blank form. The clearing agent after giving all the particulars in the bills of entry hand over the CD along with all the requisite documents to the customs officials for their review and clearance of goods.

There are three types of color coded Bills of Entries, which are explained as hereunder:

(1)   White Bill of Entry:

The bill is prepared when the consignment is to be cleared against the cash payment of the duty levied without transferring it to a warehouse.

(2)   Yellow Bill of Entry:
This bill is filed when the shipment is transferred to the bonded warehouses.

(3)   Green Bill of Entry:

This bill of entry is used for the release of shipments which have been placed in bonded warehouse against the yellow colored bill of entry.

Was this module helpful? Your comments'll help me to improve it. In next module I'll explain the procedure for clearance of above 03 types of bill of entries.

MODULE -1 : CUSTOMS CLEARANCE PROCEDURE FOR IMPORTS

The purpose of this article is to disseminate information amongst the business organizations about the Customs Clearance Procedure for Imports. Complete process will be explained in 3 separate modules. Enjoy the 1st Module below:

Procedure for Imports

The procedure for imports comprises of following three processes:

a. Arrival of Goods at Customs Port

b. Filing and Examination of Bills of Entry; and

c. Assessment of customs duty

Customs Clearance / Introduction:

It is a common belief by the importers in Pakistan that custom clearance is very difficult, time consuming and cumbersome procedure. As a result it has become a common practice to engage a clearing agency in fulfilling the requirements and procedures of the customs departments, as well as clearance of consignments. However a part of the negative perception relates to the low awareness level about the compliance requirements for import procedure. It can be divided into two major segments. First appraisal, where the goods are physically verified and customs duty is assessed and second appraisal where the actual or final duty is calculated and levied upon the importer. This article consiting 03 x modules covers all the necessary aspects, which are the fundamental part in clearance of goods/shipment and the process of assessment of customs duty and taxes.

Shipments may be received at either the Sea, Air port or Dry port declared by the customs authorities as customs ports, customs air port and land customs station; the procedure for clearance is same for every customs station.

Arrival of the goods at Customs Ports

The Central Board of Revenue of and on declares the customs ports comprising of sea, land and air ports for the purposes of clearance of goods. The customs clearance process starts with the arrival of cargo ship, plane or other carrier of goods in the country on the designated sea, land and air ports.

Upon arrival of the goods at the customs port, the port authorities issue the Import General Manifest (IGM) to each shipment. It is a number indicating the serial of the shipment arrived during the year. Upon receipt of the IGM the consignment is further indexed to allow for a systematic reference of all goods received. After issuing this number, the shipment is off loaded and sent back to port warehouse. In the case of land customs station i.e. dry port etc. the IGM is issued not at the time the goods reach the land customs station but at the time the goods are off loaded at the sea or air port.

Upon arrival of the off loaded goods, the clearance process starts. Normally at this point a clearing agency is engaged by the importer to facilitate the process of customs clearance and to reduce interface with the customs officials.

Was this module helpful? Your comments'll help me to improve it. In next module I'll explain what documents are required by the clearing agent for further processing with your consignment.