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 INDUSTRY ASSOCIATIONS ON 28TH OCTOBER, 2005 AT 3.30 P.M. IN THE CONFERENCE HALL OF THE MUMBAI CUSTOM HOUSE.

1. The Open House Meeting for the month of October, 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 28.10.2005, at 3.30 P.M. in the Conference Hall, New Custom House, Ballard Estate, Mumbai - 400 001. Shri Rajeev Jain, Addl. Director (Systems), also attended the meeting. The following senior officers of the Department attended the meeting.

(1) Smt. Neelam Rattan Negi, Commissioner of Customs (EP), Mumbai Zone-I
(2) Smt. Sanghamitra Panda, Commissioner of Customs(Import), ACC, Mumbai Zone-II.
(3) Shri M. K. Gupta, Commissioner of Customs (Export), ACC, Mumbai Zone-II.
(4) Shri Manish Mohan, Jt. Commissioner of Customs, CCO, Mumbai Zone-I.
(5) Shri Sunil Jain, Jt. Commissioner of Customs (EDI), Mumbai Zone-I.
(6) Shri R. S. Sangia, Dy. 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 R. Radhakrishnan
Shri Nimish Desai
Shri Pankaj Shah
Shri Sorab P. Engineer
Shri H. D. Mehta
Shri Rajiv Desai

2) MANSA
Capt. P. P. Singh
Shri C. S. Murty

3) Indian Merchants Chamber
Shri K. M. Doshi

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

4) M.C.C.I. (Maharashtra Chamber of Commerce & Industries)
Shri H. S. Birdi

5) AIIEA (All India Importers & Exporters Association)
Shri Mohan Nihalani

6) Tata Power
Shri Rajendran Nair

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

8) B.H.E.L.
Shri M. G. Kargaonkar
Shri S. W. Varne

9) SRTEPC (The Synthetic & Rayon Textiles Export Promotion Council)
Shri A. Ravindra Kumar

10) Individual / Member of the Public
Shri Rajiv Gupta

3. At the outset, the Chief Commissioner of Customs, welcomed all the representatives of the Associations of the Trade, Industry and CHA's, and the officers present in the meeting. The Chief Commissioner assured the Trade that sincere efforts are being made by the department for the expeditious clearance of goods and constructive suggestions from the Trade are always welcome.

4. Thereafter, the Minutes of the last Meeting held on 19.08.32005, were taken up for consideration.
4.1 Regarding Point No.4 of the Minutes of the last Meeting, the Chief Commissioner informed the Members that the suggestions from Shri Mohan Nihalani, in respect of the draft format of Bank Guarantee under EPCG Scheme, had not yet been received. Shri Mohan Nihalani said that he would submit the suggestions within a week.

4.2 In regard to Point No.5.1 of the previous Minutes relating to "Telegraphic Release Advice (T.R.A.) not being received at Air Cargo Complex properly through E.D.I.", the Chief Commissioner informed that the matter is being taken up with DG/Systems, New Delhi. Members of the Trade were also advised to hold a meeting with Jt. Commissioner of Customs (EDI), JNCH and NCH, Mumbai, to resolve the specific cases.

4.3 In regard to Point No.5.4 of the previous Minutes 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 clarified that the D.G.F.T. has issued a relaxation for an individual importer who had imported a motor cycle claiming benefits of permanent settlement wherein the vehicle was not in his possession for a period of one year as required vide Notification 29(RE)2004, dated 28.01.2004. In view of the above it is apparent that the condition of possession of vehicle for a minimum period of one year as laid down vide 29(RE)2004 dated 28.01.2004 is applicable for import of motor cycles also.

4.4 In regard to Point No.5.5 of the previous Minutes relating to "Import of goods or inputs under Vishesh Krishi Upaj Yojana", the Chief Commissioner informed that a Standing Order No.7889/05, dated 21.09.2005, has been issued.

4.5 In regard to Point No.7 of the previous Minutes relating to "Procedure for Cancellation of Bank Guarantee furnished against Advance Licence under DEEC Scheme", the Chief Commissioner informed that a Public Notice No.113/2000, dated 06.09.2002, has already been issued.

4.6 In regard to Point No.9.1 of the previous Minutes relating to "Issuing of Public Notice for change in "High Seas Sale" under EDI, at New Custom House, Mumbai", the Chief Commissioner informed that a Public Notice No.57/2005, dated 27.09.2005, has been issued.

4.7 In regard to Point No.9.3 of the previous Minutes relating to "Acceptance of SVB Bond, in case of Advance Noted Bills of Entry within 7 days period", the Chief Commissioner informed that a Public Notice No.56/2005, dated 23.09.2005, has been issued.

4.8 In regard to Point No.10.2 of the previous Minutes relating to "Delay in Testing of Samples and Submission of Test Reports", the Chief Commissioner informed that the Committee set up to discuss the matter has since submitted its detailed recommendations. Also, he assured that the usual period of getting reports in ten days has to be reduced and efforts are being made in this regard.
The Minutes of the last Meeting held on 19.08.2005 were thereafter adopted and treated as approved.

5. Thereafter, the Agenda Points as forwarded by BCHAA were taken up for discussion.
5.1 The representative of BCHAA raised a point regarding ‘Filing of Bill of Entry under EDI system for CETH 76071999’ and stated that currently the system refuses to accept the Bill of Entry for this CETH Number and the trade is asked to file manual Bill of Entry. The Chief Commissioner informed that the matter has been referred to the Directorate of Systems for updation.

5.2 In regard to the point relating to ‘Filing of Bill of Entry under EDI System for CETH 30049069/30049099’, the Chief Commissioner asked the members of the Trade to have a meeting with Jt. Commissioner of Customs, EDI, JNCH, Nhava Sheva to sort out the problem.

5.3 In regard to the point relating to ‘missing Port Code’, the Chief Commissioner clarified that the Port Code Directory is maintained by the Directorate of Systems, New Delhi. Specific cases of missing Port Codes may be brought to the notice of EDI Section so that the matter can be taken up with Directorate of Systems, New Delhi, to add them to the Port Code Directory.

5.4 The representative of BCHAA raised a point relating to ‘acceptance of SVB Bond on the basis of self declaration of the importer without waiting for filing of Bill of Entry or Cargo arrival’. The Chief Commissioner clarified that in terms of the Board’s Circular No. 11/2001 dt. 23.02.2001, the SVB registration can be done only after the import and approval of the Commissioner concerned. The Chief Commissioner informed that instructions have been issued that, in all cases, whether under Advance Bill of Entry or otherwise, the registration of cases received in the Section, after the approval of the Commissioner of Customs and completion of all required formalities, should be completed within 24 hours to avoid delay.

5.5 In regard to the point relating to ‘Document Tracking System on ICEGATE’, the Chief Commissioner stated that the members of the Trade should have a meeting with the Jt. Commissioner of Customs, EDI, NCH to sort out the problem.

6. Thereafter, the Agenda Points as forwarded by ‘The Synthetic and Rayon Textile Export Promotion Council’, were taken up for discussion.
6.1 In regard to the points relating to ‘Conversion of Free Shipping Bills into DEPB Shipping Bills’, the Chief Commissioner clarified that the discretionary power to allow conversion of Shipping Bills has been accorded to the Commissioner of Customs on a case by case basis as per CBEC Circular No. 04/2004 Cus, dated 16.01.2004. Hence, the matter may be presented to the concerned Commissioner with the appropriate evidence who may then decide the case as per rules and regulations framed in the matter from time to time.

6.2 In regard to the point relating to ‘Closure of file at Mumbai Customs after payment of Differential duty’, the Chief Commissioner clarified that the concerned Group has written a letter, dated 15.09.2005, asking the importer to submit the Redemption Certificate from the DGFT in terms of Notification No. 71/87, and the Group concerned is still awaiting the reply from the Importer.

6.3 In regard to the point relating to ‘Cancellation of Bank Guarantees’, the Chief Commissioner clarified that all 19 Bank Guarantees have been released in respect of M/s. Chambal Fertilizers & Chemicals against EPCG Licence No. 0171948 dated 21.10.99.

7. Thereafter, the Agenda Points as forwarded by the Mumbai And Nhava-Sheva Ship-Agents Association (MANSA), were taken up for discussion.
7.1 In regard to the point relating to ‘Demand notices under Section 116 beyond time bar period’, the Chief Commissioner clarified that there is no time bar for demand notices under Section 116 of the Customs Act, 1962, and there are no instructions to drop the old demands.

7.2 In regard to the point relating to ‘Major/minor amendment in the IGM’, the Chief Commissioner clarified that the matter has already been referred to the Board, and clarifications are expected shortly.

7.3 In regard to the point relating to ‘Bank’s solvency letter for renewal of Bond or issuance of new Bond’, the Chief Commissioner clarified that the matter is resolved after issuance of Public Notice No. 49/2005, dated 04.10.2005, according to which no bank guarantee is required.

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

9. The next Open House Meeting will be held on 07.12.2005 at 15.30 hrs. The points sponsored for discussion for the next meeting should reach POSITIVELY by 25.11.2005 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/-
(MANISH MOHAN)
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./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.
5. Shri Rajeev Jain, Additional Director (Systems), NCH, 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