Govt. orders cutoms to allow Auto LEO under ECCS to ensure ease of doing exports

Central Board of indirect revenue and customs, Ministry of Finance in its letter dated September 7, 2020, asked the Principal Chief Commissioner and Chief Commissioner to allow the facility of Auto Let Export Order (LEO) under the Express Cargo Clearance System (ECCS), in order to facilitate exports by courier and to enhance the global competitiveness of India’s exporters.

The finance ministry’s letter state that “it has been decided, that export goods which are covered under CSBs, and are fully facilitated by RMS (no assessment, no examination) and cleared by customs x-ray scanning shall be automatically given LEO by the ECCS. This is expected to considerably reduce the dwell time of clearance of export shipments through courier”it said.

The letter also said that the facility of Auto LEO has been developed by the Directorate General of Systems & Data Management and is ready for launch. The Courier Shipping Bills (CSBs) filed for clearance of export goods under ECCS are subjected to Risk Management System (RMS), after the registration of the goods by the Custodian (arrival scan and weight record). The RMS either facilitates or interdicts a Courier Shipping Bill (CSB) as per risk parameters, the letter said.

 What is Let export order (LEO)?

Let export order is the final customs clearance procedures to export any goods outside country. Similarly, Pass out or ‘Passed out of customs’ is the concluding procedures of import customs clearance procedures to take delivery of imported goods.

For exportable, goods to be transported to the airport, port, or container freight station the exporter requires custom clearance for the same. He has to complete necessary export customs clearance procedures at his nearest customs location by filing a shipping bill and other required export documents related to the commercial aspect of the export transaction, insurance, quality, logistics, and compliance. The customs officer will verify various aspects such as the value and classification of goods (in case of drawback shipping bills), duty and cess as applicable, description in invoice and actuals, sample assessment, testing the exportability under EXIM policy, etc. The proper officer of customs designated then permits to move goods out of the country by authorizing ‘Let Export Order’ (LEO) in the shipping bill for each consignment. Once after obtaining LEO in a shipping bill relating to each consignment, the exporter or his customs house agent delivers goods to the shipping carrier to move to the final destination of a foreign country.

What is Express Cargo Clearance System (ECCS)?

The Express Industry Council of India (EICI) has jointly with the Indian Customs has developed a software application for Automation of Customs clearance  under the Courier Imports and Exports (Electronic Declaration and Processing ) Regulations, 2010. The process is known as Air Express Cargo at Courier Terminal.