Mumbai Customs :::: Open House Meeting

Open House Meeting held on 19-08-2005

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

F.No.S/I-22 (6) 2005 CCO

Date: 8th September 2005

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 19TH AUGUST, 2005 AT 3.30 P.M. IN THE CONFERENCE HALL OF THE MUMBAI CUSTOM HOUSE .

1. The Open House Meeting for the month of August, 2005 was held under the Chairmanship of Shri. K. M. Tiwari, Chief Commissioner of Customs, Mumbai Zone-I and Shri.P. C. Jha, Chief Commissioner of Customs, Mumbai Zone-II on 19.08.2005 at 3.30 P.M. in the Conference Hall, New Custom House, Ballard Estate, Mumbai – 400 001. Shri.S.S.Sandhu, Zonal Joint DGFT also attended the meeting. The following senior officers of the Department attended the meeting.

The following officers were present:

(1) Shri.K.P. Misra, Commissioner of Customs (General), Mumbai Zone – I.
(2) Smt. Neelam Rattan Negi, Commissioner of Customs (EP), Mumbai Zone – I.
(3) Shri.A.K.Prasad, Commissioner of Customs (Import), Mumbai Zone – I.
(4) Shri. H. O. Tiwari, Commissioner of Customs (Export), JNCH, Mumbai Zone –II.
(5) Shri. Najib Shah, Commissioner of Customs (Import), JNCH, Mumbai Zone –II.
(6) Smt. Sanghamitra Panda, Commissioner of Customs (Import), ACC, Mumbai Zone –II.
(7) Shri. M. K. Gupta, Commissioner of Customs (Export), ACC, Mumbai Zone –II.
(8) Shri. Rakesh Kumar Sharma, Addl. Commissioner of Customs, CCO, Mumbai Zone–I.
(9) Shri. R. S. Sangia, Deputy Commissioner of Customs, CCO, Mumbai Zone –I.

2. 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.Naval H.Mehta
Shri.Kiran Rambhia
Shri R. Radhakrishnan

2) Indian Merchants Chamber
Shri.Mark S.Fernandes
Shri. K. M. Doshi
Shri. Virendra Parekh
Shri Ajit Shah

3) B.C.C.I (The Bombay Chamber of Commerce & Industries)
Shri.Pravin Kanakia

4) M.C.C.I ( Maharashtra Chamber of Commerce & Industries)
Shri. Ashish Pednekar

5) Federation of Indian Exporters’ Organisation (FIEO)
Ms Shyamali Banerjee

6) AIIEA (All India Importers & Exporters Associations)
Shri Mohan Nihalani

7) Tata Power
Shri.Rajendra Nair

8) I.D.M.A
Shri.Vasudev Kataria

9) D.M.A.I
Shri.S.Srinivasan

10) ASSOCHAM
Shri.George Joseph

11.) BHEL
Shri S. M. Varne

12) Transworld Shipping
Shri Krishna Kumar Menon
Shri. Gopal Viswanathan
Shri Kabiraj Pedini

13) Hapag Lloyd
Shri. N. U. Krishnan
Ms. Bhaktma

14) ULA
Shri F. Sara
Shri Pradip Shinde

15) 24 x 7 Logistic Pvt. Ltd.
Shri. Yogesh Thakkar

16) Association of Importers & Exporters of Man-Made Textiles
Shri. Gulam Mohamed

17) Individual / Member of the Public
Shri Rajiv Gupta

18) Expeditors Intl. Pvt Ltd.
Ms Pooja Wadhwa

At the outset, the Chief Commissioner of Customs, Mumbai Zone-I, welcomed all the representatives of the Associations of the Trade, Industry and CHA’s, and the officers present in the meeting. The Chief Commissioner of Customs, Mumbai Zone-I, thereafter introduced Shri P. C. Jha, Chief Commissioner of Customs, Mumbai Zone-II, who has recently taken over the charge of Mumbai Zone-II, and other senior officers of the Department present in the meeting, to the Members of the Trade/Industry.

4. Thereafter, the Minutes of the last meeting held on 23.6.2005, were taken up for consideration. Regarding Point No.2 of the Minutes of the last meeting, the Chief Commissioner informed the Members that the comments in respect of the draft format of Bank Guarantee under EPCG Scheme, which was forwarded to the BCHAA and AIIEA, had not yet been received from AIIEA. Shri Mohan Nihalani, AIIEA, requested for a week’s time to submit their comments. The Chief Commissioner of Customs informed that on receipt of comments from Shri Mohan Nihalani, the format of Bank Guarantee would be finalized and a suitable Public Notice prescribing the Standard Format would be issued. The Minutes of the last meeting dated 23.6.2005 were thereafter adopted and treated as approved.

(Action : Commissioner of Customs (E.P.), NCH, Mumbai)

5. Thereafter, the Agenda Points as forwarded by the BCHAA were taken up for discussion :-

5.1 In regard to Agenda Point relating to “Telegraphic Release Advice (T.R.A.) not being received at Air Cargo Complex properly through E.D.I.”, Smt. Sanghamitra Panda, Commissioner of Customs (Import), ACC, Mumbai Zone –II, informed that the problem could be due to the improper feeding of data by the staff posted at New Custom House, Mumbai & JNCH. In such cases, instructions have been issued to the concerned DC/AC to issue non-utilisation certificate on priority basis, so that R.A. issued wrongly can be rejected. She further informed that Systems Managers of New Custom House/Jawahar Custom House have also been informed to issue fresh R.As on urgent basis in such cases. The Chief Commissioner directed the Commissioners of Customs (Import), New Custom House, Mumbai & JNCH to look into the matter and if necessary, to take up the matter with D.G.( Systems), New Delhi, to resolve this problem, at the earliest.

(Action : Commissioner of Customs (Import), NCH, Mumbai/Nhava Sheva)

5.2 In regard to the Agenda Point relating to “Imposition of heavy penalties due to amendment of IGMs especially at Mumbai Customs”, the Chief Commissioner informed that at present amendments in IGM are allowed as per provisions of the Customs Act, 1962 and Board’s Circular No.13/2005-Cus. dated 11th March, 2005. It was further clarified that the matter has already been referred to the Board for making certain amendments in the said Circular. The Board is already seized of the matter and a revised Circular containing comprehensive guidelines in the matter is likely to be issued shortly.

5.3 Regarding Agenda Point relating to “Absenteeism by Appraising Officers due to attending to Court Cases”, the Chief Commissioner informed that it becomes necessary for the officers conversant with the case to go to the Court to brief the Counsel. However, whenever any officer attends the Court, it is ensured that the Assessment work is not affected. He further informed that the matter regarding the posting of more officers in the Custom House is also being pursued with the Board.

5.4 In regard to the Agenda Point relating to “Import Licensing Note to Chapter 87 i.e. whether Para 3(1)(a) of the said note applies only to cars or for all vehicles including two-wheelers”, the Chief Commissioner informed that the matter requires detailed examination in consultation with Director General of Foreign Trade, and suitable clarification will be issued in the matter.
	(Action : Commissioner of Customs (Import), NCH, Mumbai)

5.5 In regard to the Agenda Point relating to “Import of goods or inputs under Vishesh Krishi Upaj Yojana”, the Chief Commissioner informed that the matter requires detailed examination to check the scheme under which the Import is contemplated. He requested Commissioner (E.P.) to examine the matter in detail and issue necessary clarification in the matter.
	(Action : Commissioner of Customs (E.P.), NCH, Mumbai)

6. Regarding the Agenda point relating to “Certain clarifications/suggestions with regard to proposed Taxation Law Amendment Bill, 2005”, the Chief Commissioner informed that as the said Bill is yet to be enacted, no clarifications can be given at this stage. The Members were therefore advised to send their suggestions/comments in the matter directly to the Member (Budget), or Joint Secretary (TRU), C.B.E.C., New Delhi.

7. In regard to the Agenda Point relating to “Procedure for Cancellation of Bank Guarantee furnished against Advance Licence under DEEC Scheme”, the Chief Commissioner informed that a comprehensive Public Notice in this regard shall be issued by Mumbai Customs House. He requested Commissioner (E.P.) to examine the whole issue in detail in accordance with the instructions issued by the Board and issue a Public Notice within a month.

(Action : Commissioner of Customs (E.P.), NCH, Mumbai)

8. The Agenda Points forwarded by “The Synthetic & Rayon Textiles Export Promotion Council” and “M/s.Jaysynth Impex Ltd.” could not be taken up for discussion, as no representative from their side was present in the meeting.

9. Thereafter, the Agenda Points as forwarded by BCHAA were taken up for discussion.

9.1 The representative of the BCHAA raised a point regarding “Issuing of Public Notice for change in “High Sea-Sale” under EDI, at New Custom House, Mumbai,” similar to the Public Notice issued at JNCH, Mumbai Zone-II. The Chief Commissioner requested the Commissioner of Customs (Import), New Custom House, Mumbai, to issue a Public Notice/Standing Order on the lines of the Public Notice issued by JNCH, for the sake of uniformity in the practice at both Ports.

(Action : Commissioner of Customs (Import), NCH, Mumbai)

9.2 Regarding the Agenda Point relating to “Escorting of packages for EOU Units within Mumbai Zone”, the Chief Commissioner clarified that in respect of Cargo sealed by Customs, and/or where B-17 Bond has been executed by the Importer, there is no need of any Escort by a Preventive Officer.

9.3 In regard to the Agenda point relating to “Acceptance of SVB Bond, in case of Advance Noted Bills of Entry within 7 days period”, the Chief Commissioner clarified that the point raised by BCHAA is acceptable and a suitable Standing Order/Public Notice shall be issued by Mumbai Customs House.
	(Action : Commissioner of Customs (Import), NCH, Mumbai)

10. Thereafter, Agenda Points as forwarded by Shri Rajiv Gupta, were taken up for discussion.

10.1 In regard to the Agenda Point relating to “the incorporation of name of the supporting manufacturer on the Bill of Entry for CENVAT purpose”, the Chief Commissioner informed that the Bill of Entry format is a Statutory Format under the “Bill of Entry (Forms) Regulations, 1976”. Hence, the same cannot be changed. It also requires change in the Software by the D.G.(Systems). However, the Commissioner (Imports) clarified that in respect of Re-import clearances, party may avail Cenvat Credit on the basis of evidences in the form of Bill of Entry coupled with supporting Shipping Bill, ARE-I Invoice etc., subject to the satisfaction of jurisdictional Central Excise authorities. In case there is any problem in this regard, the matter may be taken up with the jurisdictional Central Excise authorities.

10.2 Regarding the point relating to “Delay in Testing of Samples and submission of Test Reports”, raised by Shri Rajiv Gupta as well as certain other members including Shri Mohan Nihalani of AIIEA, the Chief Commissioner of Customs, Mumbai Zone-II suggested that the said issue should be discussed in detail by a Committee comprising of the representatives of the Trade, Dy.C.C. and Shri H.S. Narang, Joint Commissioner of Customs (Import), New Custom House, Mumbai. The following representatives were nominated by the respective Associations for the said purpose :-

(i) Mr. Mohan Nihalani, AIIEA.
(ii) Mr. Mahesh H. Doshi, Indian Drug Manufacturer’s Association.
(iii) Mr. Vasudev Kataria, Indian Drug Manufacturer’s Association.
(iv) Mr. S.Srinivasan, Dyestuff Manufacturer’s Association of India.
(v) Mr. K.M.Doshi, Indian Merchants Chamber.

The Chief Commissioner of Customs, Mumbai Zone-II, directed the Committee to hold their meeting on 25.8.2005 in the office of the Dy.C.C., New Custom House, Mumbai, and submit their detailed suggestions/recommendations to the Chief Commissioner of Customs, Zone-I & Zone-II, at the earliest, so that the problem could be resolved amicably.

11. The meeting thereafter ended with thanks to the Chair.

12. The next Open House Meeting will be held on 05.10.2005 at 15.30 hrs. The points sponsored for discussion for the next meeting should reach POSITIVELY by 23.09.2005 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.

Sd/-
(RAKESH KUMAR SHARMA)
Addl. 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./Joint Commissioners of Customs (E.D.I), Mumbai Customs/Jawahar Custom House, Nhava Sheva/Air Cargo Complex, Mumbai - for immediate uploading of the Minutes on the website.
4. Shri S.S.Sandhu, Zonal 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.