Open House Meeting held on 21-10-2004

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

F.No-. S/I-22 (2)/2004 CCO
Date : 28.10.2004

MINUTES OF THE OPEN HOUSE MEETING OF THE CHIEF COMMISSIONERS OF CUSTOMS, MUMBAI ZONE I, II & III HELD WITH THE REPRESENTATIVES OF THE TRADE AND INDUSTRY ASSOCIATIONS ON 21ST OCTOBER, 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 Chairmanship of Shri.K.M.Tiwari, Chief Commissioner of Customs, Mumbai Zone-I on 21.10.2004 at 3.30 pm in the Conference hall, 2nd Floor, New Custom House, Ballard Estate, Mumbai-1. The following senior officers of the Department attended the meeting.

1. Shri.D.S.Sra, Commissioner of Customs (General), Mumbai-I
2. Shri.Ahmed Hussain, Commissioner of Customs (Import), Mumbai-I
3. Shri.Ajay Dixit, Additional Commissioner of Customs (EP), Mumbai-I
4. Shri. Chandrakant Valvi, Joint Commissioner of Customs (Import), Mumbai-I
5. Shri.Rajendra Singh, Joint Commissioner of Customs (CCO), Mumbai-I
6. Shri.R.S.Sangia, Deputy Commissioner of Customs (CCO), Mumbai-I


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

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

2.) BCHAA (Bombay Customs House Agent s Association)
Shri.Mark Fernandes
Shri.Omprakash Agrawal
Shri.Sorab.P.Engineer
Shri.Naval H.Mehta
Shri.Geroge Joseph
Shri.Pankaj Shah
Shri.R.Radhakrishnan
Shri.Bharat Shah
Shri.Nimish Desai
Shri.Sashi Tanna

3.) BCCI (The Bombay Chamber of Commerce & Industries)
Shri.Pravin Kanakia

4.) MCCI (Maharashtra Camber of Commerce & Industries)
Shri.H.S.Birdi

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

6.) The Dyestuff Manufacturer s Association of India
Shri.S.Srinivasan

7.) Tata Group
Shri.Rajendran Nair

8.) MANSA (Mumbai & Nhava-Sheva Ships Agents Association)
Captain J.Singh
Captain A.Pillai

2. The Open House Meeting started with the Chief Commissioner of Customs welcoming all the members. The Chief Commissioner of Customs informed that revenue collection in Zone-I upto 20th October 2004 during the current financial year was up by Rs.100 crores as compared to the corresponding period of last financial year. He acknowledged that this could be possible only because of the co-operation from the Trade and solicited their cooperation in this regard in future also. He further informed that sanction for telephone leased lines to establish connectivity between the Custom House and various points in Docks and purchase of new printers, has been obtained from the Directorate General of Systems and the same would be in place shortly. He also introduced Shri.Ajay Dixit, Addl. Commissioner of Customs (Gr.VII & EDI) to members.

3. The Chief Commissioner of Customs stated that during the inaugural function of EDI at CFS Mulund, Shri.A.K.Raha, Directorate General (Systems) had informed that out of the total 13,000 documents filed in the EDI System everyday, about 6,000 (i.e. on all India basis about 45% of total documents) were being filed through ICEGATE. He expressed his anguish that at Mumbai Customs, only 28% of the documents are filed through ICEGATE. He, therefore, requested the Members to educate their representatives in Trade about the facility and encourage them to make use of the facility of filing of documents through ICEGATE. The Representatives of the Trade present in the meeting assured that they would request their members to utilize the facility. The Chief Commissioner of Customs also explained in brief the features of Revised Kyoto convention. He also shared experiences with the members about his participation in the meeting of the 21 countries of Asia Pacific Region on Revised Kyoto Convention held at Manila (Philippines) during 4-8th October 2004, particularly issues relating to simplification, modernization, streamlining of Customs Procedures in India. The initiative taken by India in the matter of EDI of major 30 locations, ICEGATE facility for electronic filing of documents were particularly appreciated by the participating members of 21 countries.

4. Shri.Mohan Nahalani stated that revenue collection at Mumbai Custom House has gone up because of increase in volume of imports and requested the Chief Commissioner of Customs that the target of revenue collection may not lead to any avoidable harassment of importers or exporters. He also suggested that for immediate redressal of problems relating to EDI, the power of sanctioning purchase of Hardware and development of software should be delegated to concerned Commissioners.

5. Shri.Shorab P. Engineer pointed out that the issue relating to collection of overtime for Preventive Officers posted at the gate of Courier Cell, which was discussed in the last meeting, was not minuted in the Minutes issued for the said meeting. He requested that the same should be minuted. In this connection, the Chief Commissioner of Customs informed that a letter has been received from the Addl. Commissioner of Customs (Airport) clarifying that Preventive Officers posted at the gate of the Courier Terminal are on the cost recovery basis and no overtime is collected.

6. Thereafter, the agenda points forwarded by Shri.Rajiv Gupta were taken up for discussion.

6.1 In regard to agenda point relating to blocking of the details of consignee/buyer in EP copy of shipping bill in case of exports by merchant exporters, the Chief Commissioner of Customs clarified that the proforma of Shipping bill is prescribed under Regulations issued under the Customs Act, 1962 and the same cannot be modified by field formations. Therefore, it was regretted that the suggestion to keep the columns in the shipping bills meant for consignee s details blank, cannot be accepted.

6.2 In regard to agenda point relating to issue of irrelevant orders by the Commissioner of Customs (Appeals), the Chief Commissioner of Customs stated that orders passed by the Commissioner (Appeals) are quasi judicial orders and therefore, merits of the same cannot be discussed in this forum.

6.3 In regard to agenda point relating to release of bank guarantee of JD Exports, the Chief Commissioner of Customs informed that two Bank Guarantees for which EODCs were submitted earlier, have already been cancelled. Remaining one bank guarantee, for which EODC was submitted few days back, would be cancelled after receipt of a verification report from the jurisdictional Central Excise authorities and he has already instructed Addl. Commissioner / Gr.VII to pursue the matter with Central Excise and cancel the Bank Guarantee by 31.10.2004.

(Action: Commissioner of Customs (EP), Mumbai)

6.4 As regards Agenda Point relating to delay in issuance of speaking order after personal hearing in one particular case at Aircargo Complex, the Chief Commissioner stated that the matter was discussed during the last meeting of the Open House and Shri Rajiv Gupta was instructed to meet Commissioner of Customs(Imports), Aircargo Complex. He enquired from Shri Rajiv Gupta as to whether he has met Commissioner, Aircargo. On being informed that Shri Rajiv Gupta has not met Commissioner, the Chief Commissioner asked Shri Rajiv Gupta to meet Commissioner, Aircargo for redressal of his grievance.

7. Thereafter, agenda points forwarded by BCHAA were taken up for discussion:

7.1 In regard to agenda point suggesting creation of Bond department at Air Cargo Complex, it was informed that the Bond department at Air Cargo Complex could not be created because of shortage of staff at Superintendent and Ministerial cadre. The Chief Commissioner of Customs instructed the Commissioner of Customs (Import), Mumbai, and the Commissioner of Customs (General), Mumbai to discuss the matter with the Commissioner of Customs (Air Cargo Complex) and sort out the problems in creation of separate Bond Department at Aircargo Complex so as to ensure that a separate Bond Department is created at Aircargo Complex by 31.12.2004.

(Action: Commissioners of Customs (Gen.), (Imp) & Aircargo Mumbai)

7.2. In regard to agenda point relating to debit of DEPB scrips against Education Cess in the EDI System, representative of BCHAA stated that the Board had clarified that in cases where duty is debited from DEPB, Education Cess is not to be collected, but EDI system debits such amount from their DEPB scrips. The Chief Commissioner of Customs informed that it is a software problem and suitable reference would be made to the Directorate General of Systems for undertaking modification of Software.

(Action: Commissioner of Customs (EP), Mumbai)

7.3 In regard to agenda point relating to problems of printers and functioning of EDI System at Mumbai port, the Chief Commissioner of Customs stated that the same have already been discussed and it is expected that the problems would be resolved by 31.10.2004.

7.4 In regard to agenda point relating to Release Advise from Nhava Sheva to Air Cargo Complex, the representatives of BCHAA stated that in few cases RAs were issued from Nhava Sheva and transmitted electronically to Air Cargo Complex, but the same could not be received at Air Cargo Complex. The Chief Commissioner of Customs asked the members to bring such cases to the notice of concerned Addl./Jt. Commissioner or Commissioner to enable them to look into the problem and take corrective action.

8. Representative of MANSA informed that SMTP bonds registered in EDI System at Nhava Sheva for transshipment of imported cargo to ICDs/CFSs, are not being credited after receipt of landing certificates from the ICDs / CFSs. The Chief Commissioner of Customs asked MANSA s representatives to send a detailed note to enable Customs to examine the same.
(Action: MANSA)

9. The MANSA s representative requested that all the Public Notices and Standing Orders should be made available on the website of the Custom House. The Chief Commissioner of Customs informed that Standing Orders are issued for the information of departmental officers and the same cannot be placed on the website. However, relevant Public Notices are placed on the website for information of trade as well as departmental officers.

10. The MANSA s representative pointed out that a large number of refund claims of revenue deposits made along with the IGM, are still pending. The Commissioner of Customs (Import) informed that out of total about 300 claims, about 200 claims have already been sanctioned and remaining claims are under process. The Chief Commissioner of Customs asked MANSA representatives to furnish a list of pending claims and asked MANSA to attend the Trade Facilitation Meetings held every fortnight under the Chairmanship of Commissioner of Customs (Import), Mumbai to sort out such problems.

11. Members suggested that MANSA should take immediate steps to move out containers from JNPT to other ports and ICDs to reduce the congestion at JNPT. Shri.Mark Fernandes suggested that in view of exemption from the requirement of Bank Guarantee for moving containers from one port to another, MANSA should move containers from JNPT to Mumbai Port by vessels to reduce congestion at JNPT. The representative of BCHAA informed that the congestion problem at JNPT is being discussed at the level of Commerce Minister and also in the PMO and it is expected that the Government of India would come out with certain steps to reduce the congestion at JNPT.

12. The Chief Commissioner thanked all the members present.

13. The next meeting will be held on 25/11/2004 at 15.30 hrs. The points sponsored for discussion for the next meeting should reach POSITIVELY by 15/11/2004 in the offices of the Chief Commissioner of Customs, Mumbai Zone-I, II & III.


(Rajendra Singh)
Joint Commissioner of Customs
Chief Commissioners Office
Mumbai I

Copy to:

1. The Chief Commissioner of Customs, Mumbai Zone II & II
2. All Commissioners of Customs, Mumbai Zone-I, II & III
3. The Addl. Commissioner of Customs (EDI), Mumbai Customs / JCH/ACC for immediate display on the Website.
4. The Jt. DGFT, 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


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