Customs Act, 1962 Section 46 — Entry of goods on importation
Customs Act, 1962 · Entry of goods on importation
Plain-English Explanation
Overview
Section 46 of the Customs Act, 1962, outlines the procedure for filing a bill of entry, which is the formal declaration made by an importer to clear goods imported into India. This section is crucial as it initiates the customs clearance process, allowing goods to be released for home consumption or warehousing.
Who Does This Apply To?
This section primarily applies to importers of goods, excluding goods intended for transit or transhipment. It also affects customs officers responsible for processing and approving bills of entry.
How It Works
The process mandated by Section 46 involves these key steps:
- Electronic Filing: The importer must electronically present a bill of entry through the customs automated system to the proper officer. The bill of entry can be for either home consumption or warehousing. Principal Commissioners or Commissioners of Customs may allow physical filing in exceptional cases where electronic filing is not feasible.
- Bill of Lading Inclusions: Generally, the bill of entry must include all goods mentioned in the bill of lading or other receipt issued by the carrier, unless the proper officer permits otherwise.
- Advance Filing: The bill of entry must be filed before the end of the day preceding the day the carrying vessel, aircraft, or vehicle arrives at the customs station. The Board can prescribe different time limits, but not later than the end of the arrival day. A bill of entry can be presented up to 30 days prior to the expected arrival of the goods.
- Declaration and Documentation: The importer must declare the truthfulness of the bill of entry's contents and provide supporting documents, including the invoice and other prescribed documents. The importer has responsibilities regarding the accuracy and completeness of the bill of entry.
- Late Filing Charges: If the bill of entry is not presented within the specified timeframe and the proper officer is not satisfied with the reason for the delay, the importer may be subject to late presentation charges.
- Bill of Entry Substitution: The proper officer may permit the substitution of a bill of entry for home consumption with one for warehousing, or vice versa, if it doesn't prejudice revenue interests and there is no fraudulent intent.
Important Conditions & Exceptions
- Condition 1: The importer must ensure the accuracy and completeness of information provided in the bill of entry (Section 46(4A)).
- Condition 2: The importer must verify the authenticity and validity of all supporting documents (Section 46(4A)).
- Exception: An importer unable to furnish complete information can declare this to the proper officer and may be allowed to examine the goods or deposit them in a public warehouse before filing the bill of entry.
Practical Example
ABC Importers anticipates a shipment of textiles arriving in Chennai on November 15th. To comply with Section 46, they must electronically file the bill of entry before the end of the day on November 14th. Alternatively, they can file the bill of entry anytime starting 30 days before November 15th. If ABC Importers fails to file the bill of entry on time without a valid reason, customs may levy a late filing charge, let's say ₹5,000. They also need to ensure the accuracy of the invoice details, like the total value of $10,000, the number of textiles 2,000, and the proper description of the goods.
Key Amendments
The most significant amendment has been the emphasis on electronic filing of the bill of entry, aiming to streamline the customs clearance process. Other amendments clarify timelines for filing and responsibilities of the importer.
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Browse all case laws →Frequently Asked Questions
What is the prescribed manner for making entry of imported goods under Section 46 of the Customs Act, 1962?
Section 46(1) mandates that an importer, excluding those dealing with goods for transit or transhipment, must submit a bill of entry electronically on the customs automated system to the proper officer for either home consumption or warehousing, following the prescribed form and manner. The Principal Commissioner or Commissioner of Customs can permit alternative submission methods if electronic entry is not feasible. Refer to the relevant Customs regulations for specific format and procedural details.
What are the time limits for presenting a bill of entry for imported goods under Section 46(3) of the Customs Act, 1962, and what are the consequences of late filing?
As per Section 46(3), the bill of entry generally must be presented before the end of the day preceding the arrival of the aircraft, vessel, or vehicle carrying the goods. However, it can be presented up to 30 days prior to the expected arrival. If the bill of entry is presented late without sufficient cause, the importer is liable to pay charges for late presentation as prescribed. The Board may also prescribe different time limits.
What declaration and documents are required to be submitted along with the bill of entry under Section 46(4) of the Customs Act, 1962?
Section 46(4) requires the importer to make a declaration regarding the truthfulness of the contents of the bill of entry. The importer must also produce the invoice and any other prescribed documents relating to the imported goods in support of this declaration. Refer to the Customs rules for a comprehensive list of prescribed documents.
What responsibilities does an importer have regarding the accuracy and validity of information presented in the bill of entry as per Section 46(4A) of the Customs Act, 1962?
Section 46(4A) explicitly states that the importer is responsible for ensuring the accuracy and completeness of the information provided in the bill of entry. The importer must also ensure the authenticity and validity of all supporting documents, and ensure compliance with any restrictions or prohibitions applicable to the goods under the Customs Act or any other relevant law.
Can a bill of entry for warehousing be substituted for a bill of entry for home consumption or vice versa under Section 46(5) of the Customs Act, 1962?
Yes, Section 46(5) allows the proper officer to permit the substitution of a bill of entry for home consumption with one for warehousing, or vice versa. This substitution is permissible if the proper officer is satisfied that the interests of revenue are not prejudicially affected and that there was no fraudulent intention.
What options are available to an importer who lacks complete information about the goods at the time of filing the bill of entry under Section 46 of the Customs Act, 1962?
The second proviso to Section 46(1) provides recourse for importers lacking full information. If the importer declares their inability to furnish complete particulars due to a lack of information, the proper officer may allow them to examine the goods in the presence of a customs officer or deposit the goods in a public warehouse (without warehousing) pending the production of the missing information. This declaration needs to be subscribed before the proper officer.
How does the electronic filing mandate under Section 46 impact customs clearance procedures?
The electronic filing mandate under Section 46(1) aims to streamline and expedite customs clearance by utilizing the customs automated system. This system allows for faster processing of bills of entry, reduced paperwork, and improved communication between importers and customs authorities. However, it also places a greater emphasis on the importer's digital literacy and access to the necessary technology. The Principal Commissioner or Commissioner of Customs can permit alternative filing methods where electronic entry is not feasible.
Key Conditions & Requirements
| Condition | Details |
|---|---|
| Mandatory Electronic Filing of Bill of Entry | The importer must electronically file a bill of entry on the customs automated system for home consumption or warehousing, unless specifically exempted by the Principal Commissioner/Commissioner of Customs. |
| Bill of Entry Timing: Before Arrival | The bill of entry should be presented before the end of the day preceding the day of arrival of the goods. It can be presented up to 30 days prior to the expected arrival. |
| Late Presentation Charges | If the bill of entry is presented late without sufficient cause, the importer is liable to pay charges as prescribed. |
| Declaration and Document Requirements | The importer must declare the truthfulness of the bill of entry's contents and provide the invoice and other prescribed documents to support the declaration. |
| Accuracy and Validity of Information | The importer is responsible for the accuracy, completeness, authenticity, and validity of the information provided in the bill of entry and supporting documents. |
| Compliance with Restrictions and Prohibitions | The importer must ensure compliance with any restrictions or prohibitions related to the imported goods under the Customs Act or any other applicable law. |
| Substitution of Bill of Entry Types | The proper officer may allow substitution between a bill of entry for home consumption and a bill of entry for warehousing, provided revenue interests are not prejudiced and there is no fraudulent intention. |
| Provisional Entry Due to Lack of Information | If unable to furnish all particulars, the importer may declare this to the officer, who may allow examination or deposit of goods in a public warehouse pending information. |
Amendment History
Inserted (w.e.f. 8-4-2011)by section 44(a)(i) of the Finance Act, 2011 (8 of 2011).
Inserted by section 76 (w.e.f. 29-3-2018) of the Finance Act, 2018 (13 of 2018).
Substituted by section 76 (w.e.f. 29-3-2018) of Finance Act, 2018 (13 of 2018), for "in the prescribed form".
Substituted for "Provided that" (w.e.f. 8-4-2011) by section 44(a)(ii) of the Finance Act, 2011 (8 of 2011).
Substituted (w.e.f. 6-8-2014)by section 78 of the Finance (No.2) Act, 2014 (25 of 2014), for "Commissioner of Customs". Earlier words "Commissioner of Customs" were substituted (w.e.f. 26-5-1995) by section 50 of Act 22 of 1995, for the words "Collector of Customs".
Inserted by section 76 (w.e.f. 29-3-2018) of Finance Act, 2018 (13 of 2018).
Substituted by section 100 of the Finance Act, 2017, for sub-section (3). Earlier sub-section (3) was amended by , section 82(i) of Act 25 of 2014 (w.e.f. 6-8-2014); by section 63 of Act 33 of 1996 (w.e.f. 28-9-1996); by section 50 of Act 22 of 1995, (w.e.f. 26-5-1995) and by section 8(a) of Act 25 of 1978, (w.e.f. 1-7-1978). Sub-section (3), before substitution by Finance Act, 2017, stood as under: "(3) A bill of entry under sub-section (1) may be presented at any time after the delivery of the import manifest or import report, as the case may be: Provided that a bill of entry may be presented even before the delivery of such manifest or report, if the vessel or the aircraft or the vehicle by which the goods have been shipped for importation into India is expected to arrive within thirty days from the date of such presentation".
Substituted (w.e.f. 28-03-2021) s. 93 (i) of Finance Act 2021 (13 of 2021)
Substituted (w.e.f. 28-03-2021) s. 93 (ii) of Finance Act 2021 (13 of 2021).
Substituted (w.e.f. 29-3-2018) by s. 76 of the Finance Act, 2018 (13 of 2018).
Substituted (w.e.f. 28-03-2021) s. 93 (iii) of Finance Act 2021 (13 of 2021).
The words "at the foot thereof" omitted (w.e.f. 8-4-2011) by section 44(b) of the Finance Act, 2011 (8 of 2011).
Substituted by section 76 (w.e.f. 29-3-2018) of Finance Act, 2018 (13 of 2018), for "relating to the imported goods".
Inserted by section 76 (w.e.f. 29-3-2018) of Finance Act, 2018 (13 of 2018).