OFFICE OF THE CHIEF COMMISSIONER OF CUSTOMS, MUMBAI ZONE-I,
NEW CUSTOM HOUSE, BALLARD ESTATE, MUMBAI – 400 001.

MINUTES OF THE OPEN HOUSE MEETING OF THE CHIEF COMMISSIONER OF CUSTOMS, MUMBAI ZONE I, II & III HELD WITH THE REPERSENTATIVES OF THE TRADE AND INDUSTRY ASSOSCIATONS ON 17TH MAY, 2005 AT 3.30 P.M. IN THE CONFERENCE HALL OF THE MUMBAI CUSTOM HOUSE.

The Open House Meeting for the month of May, 2005 was held under the Chairmanship of Shri. Joseph Dominic, Chief Commissioner, Customs Zone-II and Shri.K.M.Tiwari, Chief Commissioner, Customs Zone-I on 17.05.2005 at 3.30 P.M. in the Conference Hall, New Custom House, Ballard Estate, Mumbai – 400 001. The following senior officers of the department attended the meeting:

The following officers were present:

1. Shri.D.S.Sra, Commissioner of Customs (General), Mumbai-I
2. Shri.K.P.Mishra, Commissioner of Customs (EP), Mumbai-I
3. Shri.Y.G.Parande, Commissioner of Customs (Import), ACC, Mumbai-II
4. Shri.A.K.Prasad, Commissioner of Customs (Import), Mumbai-I
5. Shri.S.S.Sandhu, Zonal Joint DGFT.
6. Shri.Ajay Dixit, Additional Commissioner of Customs (EP), Mumbai-I
7. Shri.Rajendra Singh, Jt. Commissioner of Customs (CCO), Mumbai-I
8. Shri.Darshan Singh, Joint DGFT.
9. Shri.Rakesh Kumar, Dy. Chief Chemist, New Custom House, Mumbai.

The following representatives of the BCHAA, Trade and Industry attended the meeting :


1.) BCHAA (Bombay Custom House Agent’s Association).
Shri.Pankaj Shah
Shri.Omprakash Agarwal
Shri.P.K.Divgikar
Shri.Sashi Tanna
Shri.H.D.Mehta
Shri.Naval H.Mehta
Shri.Sorab P.Engineer

2.) Tata Group
Shri.Rajendra Nair

3.) ASSOCHAM
Shri.George Joseph

4.) D.M.D.I
Shri.S.Srinivasan

5.) Indian Merchant Chamber
Shri.Mark S.Fernandes

6.) I.D.M.A
Shri.Yogin Majumdar

7.) A.I.M.O
Shri.Babulal B.Todi

8.) B.C.C.I
Shri.Pravin Kanakia

9.) M.C.C & I
Shri.H.S.Birdi

10.) A.I.I.E.A
Shri.Mohan H.Nihalani

11.) Pharmaxcil
Shri.K.K.Thakur

12.) Sandvik Asia Ltd.
Shri.Mahesh Balal

13.) Others
Shri.Rajiv Gupta

2. The Open House meeting began with the Chief Commissioners welcoming all the Members. Chief Commissioners informed the Members that the Committee of 3 Additional/Joint Commissioners to standardize the format of Bank Guarantee under EPCG, set up pursuant to discussions in the previous Open House meeting held on 24/03/2005 could not complete the work for the reason that one of Members proceeded on long leave. Chief Commissioners assured the Members that format of Bank Guarantee would be standardized by 31st May, 2005.

3. Thereafter, Agenda Points as forwarded by the BCHAA were taken up for discussions.
3.1 In regard to Agenda Point relating to delay in testing of samples by Dy.C.C, Chief Commissioner directed that Dy.C.C. should complete testing of samples and send Test Reports to concerned Group/Section in Custom House within 10 days of receipt of samples. In cases where Dy.C.C. is not able to forward the Test Report within 10 days, the reasons for delay should be communicated to the concerned Group/Section.

In case Dy.C.C. is not able to test certain samples because of non-availability of testing facility, the concerned Group/Section should be informed immediately and thereafter, concerned Group/Section would get the same tested in some other Government laboratory expeditiously. If there is no Government laboratory to test the sample, the same may be forwarded to the approved private laboratory for testing.

It was also pointed out that sometimes Appraising Officers seek opinion of Dy.C.C. on classification of the goods under Customs Tariff. Chief Commissioner clarified that Dy.C.C. is not required to give an opinion on the classification of the goods under the Customs Tariff.

(Action: Dy.C.C., Assessment Groups)

3.2. In regard to Agenda Point relating to request for implementation of one time factory stuffing permission at Mumbai Customs, the Chief Commissioner directed the Commissioner of Customs(EP), New Custom House, Mumbai to issue a fresh Public Notice allowing one time factory stuffing permission and direct the concerned officials to follow the same.

(Action: Commissioner of Customs (EP)

3.3 In regard to Agenda Point relating to cancellation of Rule-8 CHALR-2004 Exams scheduled to be held on 14/12/2004 and non-declaration of results of Oral Exams held on 8/11/2004, the Chief Commissioner informed that the Exams under Rule 8 of CHALR-2004 were conducted by the Directorate General of Inspection, New Delhi. Director General (Inspection), New Delhi has been reminded to look into the matter and expedite the same.

3.4 In regard to Agenda Point relating the Docks Appraiser questioning the value, the Chief Commissioner stated that officers at the Docks normally don’t question the value if goods physically found, tally in all respect with the declaration. However, in case of any discrepancy having a bearing on value, the Appraiser at the Docks have to refer the matter to concerned Group for necessary action.
3.5 In regard to request of BCHAA for setting up of Help Desk for ICEGATE at each of the Custom Houses in Mumbai, the Chief Commissioner assured the Members that the suggestion would be examined.

(Action: Commissioner of Customs (EP)

3.6 In regard to Agenda Point relating to delay in clearance of cargo through Air India at the Air Cargo Complex, the Chief Commissioner directed the Commissioner of Customs, Air Cargo Complex to sponsor the issue for discussion in the High Level Inter Ministerial Meeting chaired by the Chairman, CBEC. The trade may also sponsor the issue in the said meeting by sending Agenda Papers to Director (Customs), CBEC.

(Action: Commissioner of Customs (ACC)

3.7 As regards request of the BCHAA for holding Category II Exams for CHA’s employees, the Chief Commissioner directed the Commissioner of Customs (General), New Custom House to hold the said Exams by 30th June, 2005.

(Action: Commissioner of Customs (Gen.)

3.8 Representatives of BCHAA stated that as per para 4.19 of the HandBook of Procedures (Vol-I), Mumbai seaport, Nhava Sheva and Mumbai Airport are to be treated as single port for the purposes of imports and exports. It was pointed out that EPCG Licences with endorsement of port as Mumbai, are being registered at Nhava Sheva, whereas the EPCG licences with endorsement of port as Nava Sheva are not being registered at Mumbai Custom House.

The Zonal Joint DGFT clarified that for the purpose of registration of EPCG licences, ports of Mumbai, Nava Sheva and Mumbai Airport are to be treated as single port in terms of para 4.19 of the HandBook of Procedures(Vol-I), and hence, licences issued for Nava Sheva and Mumbai Airport can be registered at Mumbai Custom House and vice versa.

4. Representative of the Indian Drug Manufacturers Association reported that crude caffeine is being imported by certain importers at Nhava Sheva without payment of anti-dumping duty. The Chief Commissioner clarified that said clearances were made by EOUs or under advance licences and for such imports, anti-dumping duty is not leviable. However, the Department would cause investigation if any such goods were not used for manufacture of export goods and were diverted in open market subsequent to clearance.

(Action: Commissioner of Customs (Imports), JCH)

5. Thereafter, Agenda Points forwarded by the Indian merchants Chamber were taken up for discussions.
5.1 Representative of the Indian Merchants Chamber stated that customs clearances are getting delayed due to categorization of IGM amendments and compulsory adjudication in case of major amendments in terms of the Board’s Circular No. 13/2005-Cus. dated 11/3/2005. The Chief Commissioner clarified that in case of bonafide mistakes in IGMs, amendments may be allowed after adjudication for penal action under 117 of the Customs Act, 1962 irrespective of values by the Assistant /Deputy Commissioners. The adjudication proceedings should be completed in such cases within 2 days of receipt of request for amendment. However, cases of suspected frauds may be investigated and necessary action for confiscation u/s 111 and imposition of penalty u/s 112 of the Customs Act, 1962 may be taken.

5.2 As regards Agenda Point relating to request for waiver from Bank Guarantee for certain categories of importers, the Chief Commissioner clarified that blanket permission for waiver from bank guarantee cannot be given. Each case is to be examined and decided on merits by the concerned Commissioner.

6. Representative of M/s SANDVIK stated that the present practice of execution of SVB Bond at GVC Cell of Custom House, Mumbai is causing delay in clearance as the debit of the Bond requires movement of Bill of Entry from ACC Sahar to Custom House and back to ACC Sahar. It was suggested that in cases referred to GVC Cell, New Custom House, Mumbai, the importers should be allowed to execute Bond and debit the same at the port of import. The Chief Commissioner clarified that wherever SVB Bonds are required, importers may be allowed to execute separate Bonds at different ports/airports of imports and the importers need not come to New Custom House, Mumbai for execution of bond and debit of the same for clearances through Nhava Sheva or ACC, Mumbai.

7. The Chief Commissioner of Customs thanked all the Members present.

8. The next Meeting will be held on 24.06.2005 at 15.30 hrs. the points sponsored for discussion for the next meeting should reach POSITIVELY by 15.06.2005 in the offices of the Chief Commissioner of Customs, Mumbai Zone-I, II and III. Points received after the said date, will be taken up for discussion only in the next Open House Meeting.

(Rajendra Singh)
Joint Commissioner of Customs
Chief Commissioner’s Office
Mumbai – I

Copy to :

1. The Chief Commissioner of Customs, Mumbai Zone II and III
2. All Commissioners of Customs, Mumbai Zone I, II and III
3. The Addl. Commissioner of Customs (E.D.I.), Mumbai Customs/ J.C.H./ A.C.C., for immediate display on the Website.
4. The Jt. D.G.F.T., Mumbai

Copy for information and wide circulation to :
All Associations with a request to inform all their members to view the Minutes of the Meeting on the Website of Mumbai Customs at www.mumbaicustoms.gov.in