Customs Formalities

1.Receiving of Bill of Entry(B/E) along with required documents.

Duly filled up and C&F Agent signed B/E is required to submit to the receiving section of the concerned customs station which gives a date seal and embosses a serial number.Customs stations having ASYCUDA facility generate automatic bill of entry number & date.Customs stations which have Direct Trader Input(DTI) facility follow a little different procedure where the trader himself electronically submits required data.Here also B/E no. and date in generated from the computer system automatically.

Following documents are to be submitted with the B/E:

  • Authorization letter to the C&F Agent to release the goods in favor of the importer/concerned bank
  • Customs copy of Letter of Credit Authorization ( LCA)
  • Customs copy of Letter of Credit ( L/C)
  • Original Indent/proforma invoice
  • Original Insurance cover note
  • Bank certified Invoice
  • Bank endorsed B/L (or AWB/TR/RR)
  • Original Packing list
  • Endorsed Bill of exchange
  • Original Country of origin certificate
  • Original Pre-Shipment Inspection (PSI) Certificate
  • Other documents as applicable/ required under the provision of any other law/ rules/ regulations in effect.
  • Other certificates such as health/ phytosanitary /quarantine/ human consumability/ explosive/ radiation test etc.certificates; certificate from inspector of factory/ BSTI/ BCSIR etc.

Noting of B/E in respective Import General Manifest (IGM)

Noting of B/E in the respective Import General Manifest (IGM) is done by the noting assistant against the specific line number

Appraisement/ Examination/ Tests and assessment of imported goods

Physical examination & chemical or other tests(if required) of the goods is done by the appraisers and the principal appraiser (Assistant Commissioner or above if required).Chemical test is done in the laboratories like BCSIR, BSTI, BUET, Custom house etc. in order to determine the accuracy of the declarations made by the importer in the LCA/ LC/ invoice/ packing list/ country of origin certificate etc.Above all such test results are cross checked with declarations made in the B/E in respect of description, quantity, quality, packing, origin, condition etc of the goods.

Assessment

  • Checking of the import documents to ascertain whether required documents have been submitted as well as the genuinity of goods documents.
  • Examining the documents to ascertain the legality/ appropriateness of the import i.e whether it has been done in conformity with the provisions of the applicable law like-

    • The Imports and Exports (Control) Act,1950
    • The Foreign Exchange (Regulations) Act, 1947
    • The Customs Act, 1969
    • The Value Added Tax Act, 1991
    • Other allied Acts/ Regulations and the rules, orders, regulations etc. made there under

Determination/ checking of appropriate H.S.Code or classification of the goods in order to value goods properly, levying duty and taxes and determining other legal aspects of the import

Determination of the rates of Customs Duty (CD), Supplementary Duty (SD), Value Added Tax (VAT), Infra-structural Development Surcharge (IDSC) and Advance Income Tax (AIT). Present duty and taxes rates are as under :

  • CD = Nil, 7.5%, 15%, 22.5% and 32.5% (five slabs)
  • SD = 10%, 20%, 30%, 50%, 60%, 100% and 250%
  • VAT = 15%
  • IDSC = 3.5%
  • AIT = 3%

Valuation of goods: is done by the customs officials/ PSI Agency in order to determine the Assessable Value (AV) of the goods for levying and calculating the duty and taxes on the basis of GATT Valuation Method that is transaction value method (the price actually paid or payable by the buyer to the seller for the goods to be valued). Valuation is done in following manners:

  • Valuation of reconditioned vehicles, petroleum products, scrap vessels etc is done on the basis of officially established minimum value.
  • Valuation of Government imports, import under zero rate of CD , import for 100% export industry, import of bonded goods, baggage's, commercial samples, diplomatic and defence import is done by the appropriate officer of the concerned customs stations on the basis of GATT Valuation Method
  • Valuation of all other goods is done by the Pre-shipment Agencies (PSI) on the basis of GATT Valuation Method by issuing Clean Report of Finding (CRF) after verifying the export price of the goods in exporting country.PSI agencies also certify the appropriate H.S.Code, actual quantity, real commercial as well as technical description and quality of the goods
  • Calculation of duty and taxes is done by the appraisers or assessing officers on the basis of the following manner which has been prescribed by the laws:
  • CD = Assessable Value X Rate of CD
    SD = (AV+CD) X Rate of SD
    VAT = (AV+CD+SD) X Rate of VAT
    AIT = AV X Rate of AIT
    IDSC = AV X Rate of IDSC
  • Confirmation of Assessment is done by the principal appraiser by putting his seal and signature on the 1st, 2nd and 3rd copy of the B/E

4.Payment of duty and taxes

is made, to the Bangladesh Bank or other banks which perform treasury functions, through the treasury chalan or on the 1st, 2nd and 3rd copy of B/E.

5.Out pass/Clearance order

is given by the principal appraiser by putting his seal and signature on the 1st and 2nd copy of B/E once he is satisfied that the applicable duty and taxes has been paid

6.Delivery of goods

is given by the port authority after getting the clearance order from the shipping lines, customs authority and finally from the port authority. At the point of exit from the port area representatives of customs and port authority usually checks the documents to ensure that the imported goods have been delivered