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 REPRESENTATIVES OF THE TRADE AND INSUSTRY ASSOCIATIONS ON 23rd July, 2004 AT 3.30 P.M. IN THE CONFERENCE HALL OF THE MUMBAI CUSTOM HOUSE.

The Open House Meeting for this month was held under the Chairmanships of Shri K. M. Tiwari, Chief Commissioner of Customs, Mumbai Zone – I, and Shri Joseph Dominic, Chief Commissioner of Customs, Mumbai Zone – II on 23.07.2004 at 3.30 P.M. in the Conference Hall, 2nd floor, New Custom House, Ballard Estate, Mumbai – 400 001. The following senior officers of the department and JDGFT also attended the meeting:-
1. Shri D.S. Sra, Commissioner of Customs (General), Mumbai - I
2. Shri C. M. Mehra, Commissioner of Customs (EP), Mumbai - I
3. Shri Ahmed Hussain, Commissioner of Customs (Import), Mumbai – I
4. Shri Rajendra Singh, Jt. Commissioner of Customs (E.P.), Mumbai – I
5. Shri R. S. Sangia, Asstt. Commissioner of Customs, C.C.O., Mumbai – I
6. Shri Darshan Singh, Joint Director General of Foreign Trade, Mumbai.

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

1) AIIEA (All India Importers & Exporters Associations).
Shri Mohan Nihalani
Shri Amit Wanare

2) BCHAA (Bombay Custom House Agent’s Association).
Shri Mark Farnandes
Shri Bharat M. Shah
Shri Nimish Desai
Shri H. D. Mehta
Shri Omprakash Agrawal
Shri Pankaj Shah
Shri Sorab P. Engineer.
Shri Naval H. Mehta
Shri R. Radhakrishnan

3) Tata Group
Shri Rajendra Nair

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

5) Dyestuff Manufacturer’s Association of India (DMAI)
Shri S. Sriniwasan.

6) ASSOCHAM.
Shri George Joseph.

7) IDMA (Indian Drug Manufacture’s Association)
Shri Vasudev Kataria

8) Indian Merchant Chamber
Shri K. M. Doshi

9) MANSA (Mumbai & Nhava Sheva Ship Agents Association)
Shri P. P. Singh
Shri T. S. Tanwar (Retd.)

10) MCCI (Maharashtra Chamber of Commerce & Industries)
Shri H. S. Birdi

11) Federation of Indian Exporters’ Organisation. (FIEO)
Shri Ahayawalia Banerji

12) Association of Importers & Exporters of Man made Textiles.
Shri Gulam Mohd.

13) Individual / Member of the Public
Shri Rajiv Gupta.

14) Indian Merchant Chember
Shri Virendra Parekh

15) Mumbai Customs House Agents Associations
Shri Ashish Pednekar

16) Frontier Shipping Agencies
Shri Sachin Godbole.

17) Pol India Agency Ltd.
Shri Vijay P. Bhosale

18) ULA
Shri P. S. Subramanium

19) All India Manufacturers Organisation (AIMO)
Shri Babulal Todi

20) Samunder Shipping
Smt. Gurdeep Kaul Bansal
Shri Vivek Mahabar

2. The Chief Commissioners chairing the meeting welcomed all the Representatives of the Associations of the Trade, Industry and CHAs and the officers present in the meeting. They informed the members that the Mumbai Customs Zones have got enhanced Revenue Target for the Year 2004-05 and solicited the cooperation of all the Industry, Trade and other Associations to meet the Revenue Target. They assured the members present in the meeting that the Department would continue to resolve any problems faced by them and provide the appropriate help to expedite the import /export clearances.

3. The Minutes of previous meetings dated 7th June, 2004 as circulated were adopted. The Agenda points were thereafter taken up. The Open House discussion started with a member pointing that the minutes of the meetings may be sent to members by E-mails. It was pointed that members are finding it difficult to take a print out of the minutes from the Website of the Custom House.

4.One of the Agenda points raised by the Synthetics Rayon Textiles Export Promotion Council regarding “Difficulties faced by the exporter on account of delay in logging of DEEC Books” came up for discussion in the meeting. It was represented by the Council that a number of cases of logging of DEEC Books are pending since the relevant files are either missing or not readily traceable by the Department. As a result, the Exporters are unable to submit logged DEEC Books to the DGFT for Redemption Certificate and the DGFT is declaring them as defaulters.

4.1 The Chief Commissioner stated that wherever an Exporter whose documents /files were submitted to the Department for logging and the same are found to be either missing or not readily traceable, makes a request to the Customs Department for a letter to the DGFT recommending them to keep the action in abeyance for certain period to complete the reconstruction of documents, the Department invariably issues a letter to DGFT, recommending to keep the enforcement action against the Exporter in abeyance.
In cases where the files are missing, the Exporters are required to submit the relevant documents for reconstruction of the files to enable the Department to complete logging. Regarding difficulties in reconstruction of files, it was informed that as per the Public Notice No.131/02 dated 22.10.2002 issued by the Commissioner of Customs (EP), Mumbai, reconstruction of Shipping Bills is allowed only if the application for reconstruction is submitted within 5 years of the date of shipment.

4.2 One of the members pointed out that an application of M/s. Unique Pharmaceutical for reconstruction is pending with the Customs Air Cargo. It was also pointed out that piecemeal queries asking for the documents are raised by the Department on the logging files resulting in delay in logging.

4.3 In regard to the specific case of M/s. Unique Pharmaceutical, the Chief Commissioner requested the members that specific cases should be raised before the concerned commissioners and only general problems should be raised in the Open House. However, the Chief Commissioner Zone II asked the concerned member to make a reference indicating the details of the case, to him. As regards piecemeal queries for documents, Chief Commissioners asked the members to ensure that while submitting the file, all the documents as prescribed in the relevant Public Notice, are submitted. Subsequently, if officers ask for some document which is not relevant, the same may be brought to the notice of concerned Deputy / Asstt. Commissioner, Joint Commissioner or Commissioner.

5. The representative of the All India Importers’ and Exporters’ Associations’ pointed out that the exporters are facing a lot of hardships in the finalisation of Provisionally Assessed Shipping Bills. The Shipping Bills do not indicate as to whether these are Provisionally Assessed or finally assessed. The issue was discussed in the last meeting, but the situation has not improved.

5.1 The Chief Commissioner informed the members that Docks Officers are required to endorse the Shipping Bills as “Provisionally Assessed” by putting a rubber stamp manually alongwith signature of the concerned officer. It was reported that officers are making such endorsement on the shipping bills. The Shipping Bills are assessed provisionally on account of various factors such as (i) verification of value, (ii) DEPB / DBK serial no. and its eligibility, (iii) verification of Test Reports, etc. The Chief Commissioner asked the Export Commissioners to issue a Standing Order to the field staff for making the endorsement regarding provisional shipment on the shipping bills. The Chief Commissioner also asked the members to insist for such endorsement by Customs while receiving the copies of LEO.
So far as the finalisation of Provisional Assessments is concerned, the concerned staff should complete the Provisional Assessment immediately on receipt of Test Reports from the approved laboratories and other verifications as required. On finalisation, suitable manual endorsement should be made on the Shipping Bills as “Finally Assessed”.

5.2 It was also represented by the All India Importers’ And Exporters’ Association that verification of DEPB licence is still causing hardships to some exporters. Few other members also expressed the same view. In reply, the Chief Commissioner once again reiterated that the DEPB verification process in both Mumbai Zone – I and Zone – II is smooth and DEPB verification is generally completed within 3 days from the date of receipt of the file. As regards queries for documents, the members should ensure that while submitting the file, all the documents prescribed in the Public Notice are submitted.

6. Thereafter, points represented by one member, Shri Rajiv Gupta, were taken up for discussion. The first point was regarding the verification of Advance Licence, DFRC and DEPB, etc., as discussed in Para 5 above.

6.1. The Chief Commissioner stated that this issue been discussed and steps would be taken to improve the process as per the suggestions given.

6.2 Regarding a problem which occurred at one EOU firm, the member expressed his satisfaction on the action taken by the Department. Hence, the issue was taken as resolved.

6.3 So far as levy of Anti-dumping duty is concerned, the meeting was informed that the Board vide letter F. No.523/2/2004-Cus(TU) dated 31.05.2004 has clarified that Notification No.94/98-Cus dated 24.11.1998 imposing anti dumping duty, had expired on 23.11.2003 and Commissioner of Customs (Import), Mumbai had already issued instructions to finalise all the Provisional Assessment pending on the issue accordingly.

6.4. Regarding release of Bank Guarantee in case of Deemed Exports by one M/s. J. D. Exports, the member was informed that some discrepancies have been found in the EODC as submitted by the party for release of their Bank Guarantee. The concerned exporter was informed about the discrepancy and the exporter has taken back the documents for getting the discrepancy rectified from the DGFT.

7.During the course of the meeting, a few points outside the Agenda were also discussed as per the brief facts given under:

7.1.One member brought to the notice of the Chief Commissioner, Mumbai Zone – II, regarding misuse of EOU Scheme (Notification 23/2003–Cus) by M/s. I. G. Petrochemicals, Taloja. The Chief Commissioner directed the member to give a written submission giving details to enable the Department to examine the same and take necessary action in the matter.

7.2. The levy of “Education Cess” came up for general discussion. The members present expressed their views on the formula on which the education cess is presently being calculated. Members were of the view that the education cess is being charged twice on the CVD part of the Customs duty. In this regard, the Chief Commissioner informed the members that the Custom House is calculating Cess on the basis of formula as prescribed by the Ministry. It was also informed that during the FICCI meeting with Member (Budget), CBEC on 17.07.2004, all these issues had already been raised by the members of the FICCI before the Member (Budget).

7.3. (a) Shri Mark Fernandes, of BCHAA, stated that the unutilised balance amount of TRA taken from the Port Registration (in respect of a DEPB / EPCG Licence, etc.) to another Port for clearance purpose, should be added back to the Licence value, at the Port of Registration, only on the basis of endorsement given by the Port of Clearance, and the Customs at the Port of Registration should not call / wait for the receipt of Non-Utilization Certificate from the Port of Clearance to re-credit the licence.

(b) Shri Fernandes also brought to the notice of the chair that the Printers installed in Mumbai Docks / Custom House, were having frequent Break Downs requested that proper maintenance of these printers may be undertaken by the Department for their smooth functioning.

The Chief Commissioner informed that he had already taken a meeting to review the position and had issued necessary instructions to all concerned to ensure smooth functioning of Printers.

7.4. The representative from “MANSA” requested that the Customs Department should allow the steamer agents to file their IGM / EGMs through “ICEGATE” system to reduce huge compilation of data manually and paper work. The registration formalities to avail such facility should be formulated and issued.
The chief Commissioner replied that the Directorate of System, New Delhi is in the process of developing the required software to introduce the facility.

7.5. A member present expressed the view that the department should give the E-mail ID of all the Senior Officers to enable the members of the trade to communicate as and when required.

The Chief Commissioner replied that the members may contact the officers through E-mail ID of the Custom House.

7.6. One member present in the meeting raised the issue of Revenue Deposit being taken from the steamer Agents by Mumbai Customs House, while filling the IGM / EGMs. It was pointed out that w.e.f. 1st May,2004, R.D. is not required from steamer agents registered with the Customs. It was also informed that the Nhava Sheva, the R. D. is not being taken in such cases. The Chief Commissioner, Mumbai Zone – I, instructed the Commissioner of Customs (Import), Mumbai to look into the matter and issue necessary instructions to concerned staff.

7.7.Shri Mark Fernandes, of BCHAA, pointed out that shipping lines are collecting Container Scanning Charges from the importers when Customs is not collecting any such charge. He required MANSA to issue a Public Notice to their members clarifying that the said amount is not chargeable. The representative of MANSA replied that such Public Notice could not be issued by them; however, BCHAA should give names of the shipping lines collecting such charges to enable them to take up the matter with those shipping lines.

8. Keeping in view the agenda points and space constraints, it was emphasised that the Associations attending the meeting may send one or at the most two representatives from their Associations to attend the meeting.

9. The Chief Commissioner of Customs thanked all the members present.

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