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Open House Meeting held on 28-12-2004
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OFFICE OF THE CHIEF COMMISSIONER OF CUSTOMS
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 INSUSTRY ASSOCIATIONS ON 28th December, 2004 AT 3.30
P.M. IN THE CONFERENCE HALL OF THE MUMBAI CUSTOM HOUSE
The following representatives of the BCHAA, Trade and Industry attended the meeting: 1) AIIEA (All India Importers & Exporters
Associations). 2) BCHAA (Bombay Custom House Agent’s Association). 3) Indian Merchant Chamber 4) Individual / Member of the Public 5) SRTEP 6) TATA Group 7) ASSOCHAM 8) BCCI 2. The Chief Commissioner of Customs opened the meeting by welcoming all the members. The Chief Commissioner stated that the revenue position in Mumbai Customs Zones till December, 2004 is satisfactory. The congestion at Nhava Sheva has reduced considerably. He also pointed out that about 100-200 crores revenue is always in the pipeline because of delay in payment of duty by the trade after assessment of Bills of Entry. He therefore solicited the cooperation of all concerned in reducing the delay in payment of duty. He requested all Trade Associations & CHAs to make all-out efforts to achieve the revenue target for the current financial year. He wished all the members present a very happy & prosperous New Year. 3. The Chief Commissioner observed that sometimes decisions taken in the Open House are not implemented for the want of Standing Order/instructions. It was therefore, decided that the decision taken in the Open House Meetings would be binding on all the officers in Mumbai Customs Zones-I, II & III and they should implement the decisions and need not wait for Standing Orders etc. 4. One of the members raised the issue relating to requirement of ‘NOC’ from Animal Quarantine Authorities for clearance of “lactose” of pharma grade, as mentioned in para 7 of the minutes of the last Open House Meeting held on 25.11.2004. The Chief Commissioner observed that NOC from Animal Quarantine Authorities is not required for clearance of “lactose” of pharma grade as it does not contain any animal based ingredients. 5. Another member referred to para 6 of the minutes of the last meeting
held on 25.11.2004, wherein it was represented that the department is
asking the importers, who are re-importing the consignments under Section
20 of the Customs Act, 1962 read with Notification 94/96-Cus, to refund
/ return the export benefits availed by them and then present re-imported
consignment for assessment. It was also represented that in cases wherein
the goods / units are not excisable, the parties are being asked to get
NOC from Central Excise authorities. 6. It was pointed by a member that at the time of re-export, NOC from concerned import Group is insisted upon by the Export Section. The Chief Commissioner observed that in cases where relevant Bill of Entry is assessed finally, such NOC is not required and the practice should be discontinued. 7. Shri. Mark Fernandes stated that cargo is being diverted from Nhava Sheva to other ports due to collection of congestion charges by the shipping lines. After the matter was taken up, the quantum of congestion charges was reduced, but they have started collecting ISPS charges. The Chief Commissioner stated that the issue could not be sorted out in the fora and the same needs to be discussed separately in presence of all the stakeholders. 8. Thereafter, Agenda Points forwarded by M/s. Amritlal Chemaux (P) Ltd. were taken up for discussion. 8.1 In regard to drawback claims of M/s. Amritlal Chemaux (P) Ltd., pending for long at CFS, Mulund, the exporter stated that the claim is pending for the reason that they did not have bank account in the Bank nominated by the Customs at CFS Mulund. He has further stated that as they did not have regular exports from the CFS Mulund, it is not feasible for them to open bank account in the said bank. The Chief Commissioner directed that drawback claim may be settled by issuing a cheque in favour of exporter as was done prior to introduction of EDI at CFS, Mulund. 8.2 In Regard to pending drawback claims of M/s. Amritlal Chemaux (P) Ltd. at JNPT, the Chief Commissioner informed that 3 drawback claims relating to shipping bills were finalized and 2 claims pending for test reports would be finalized very soon. Remaining 2 claims were not traceable and efforts would be made to trace out and finalise the same expeditiously. (Action: CC (E.P.) / JCH) 8.3 It was pointed out by one of the members that there was delay in issuance of E.P. Copies of S/Bill and the printout of S/Bill was illegible. The Chief Commissioner assured the members that the problems in printers would be rectified immediately at all the places. The delay in printing and issuing of E.P. Copy will be attended to on priority basis. (Action: CC (E.P.) / JCH) 9. Thereafter, Agenda Point forwarded by the MANSA was taken up for discussion. The representative of MANSA was not present in the meeting. However, the point relating to an update on the filling of IGM through ICEGATE forwarded by them was taken up for discussion. The Chief Commissioner informed that a Public Notice prescribing procedure for filing of IGMs through ICEGATE has already been issued at JCH and it has been verified that about 25% IGMs are being filed through ICEGATE at JNPT. (Action: CC (E.P.) / JCH) 10. Shri Mohan Nihalani of AIIEA, stated that the DEPB scrip relating to M/s. Sanghavi Enterprises, Mumbai, expired because of procedural delays by the Customs. On matter being taken up with the concerned officers, he did not find satisfactory response and moreover, the behaviour of certain officers was not upto the mark. The Chief Commissioner directed the Commissioner (E.P.) to look into the matter urgently and take prompt remedial action. (Action: CC (E.P.) / MCH) 11. M/s Coronet stated that bank guarantees executed under DEEC/EPCG licences were not released on time. The Chief Commissioner informed that the issue relating to release of bank guarantees executed prior to issuance of Board’s Circular No.48/2003 dated 06.06.2003, Ministry of Law has opined that the bank guarantees could not be released unless the conditions of the said bank guarantees are fulfilled by the exporters. The Ministry has been informed about the opinion of the Ministry of Law and a clarification in the matter from the Ministry is awaited. 12. Therefore, the points raised by Shri. Rajiv Gupta were taken up for discussion. 12.1 The trade faced considerable difficulties in issuance of TRAs electronically to Kandla Port. The Chief Commissioner stated that EDI is not functional at Kandla port and therefore, electronic transmission of TRA to Kandla is not feasible. However, to avoid delay, the officers issuing TRAs would ensure that a copy of TRA issued for Kandla is forwarded to Kandla Customs through E-dex on the same day. (Action: All Custom Houses) 12.2 When the original bonds are not traceable, there should be a method to cancel them. The Chief Commissioner observed that in cases where original bonds are not traceable, the same should be cancelled by issuing a letter and there is no need for asking the exporters to furnish certified copy of bond. 12.3 Verification of DEPB Scrips expired in the Customs custody. The Chief Commissioner directed that the Department should verify the DEPB even if the validity of the DEPB scrip expired while in the custody of the Department. However, at the time of registration of DEPB scrip for utilization, it should be ensured that the same is revalidated by the DGFT. In case DEPB scrip is expired in customs custody, a letter may be issued to DGFT recommending revalidation of the DEPB scrip. 13. Shri Ashish Pednekar, BCHAA stated that during physical examination of cargo imported under DEEC/DFRC/EPCG licences, Docks officers insist for licences which have already been verified and debited by the Groups. The Chief Commissioner observed that once licences have been debited by the Groups, there is no need for second verification of licences by the Docks. 14. It was represented by one of the members that the DYCC insist for Chemical Abstract Serial No.(CAS) for the chemical items, while testing the samples. The members were of view that this should not be done in all cases. The Chief Commissioner stated that matter would be discussed with the DYCC. (Action: Commissioner of Customs (Imp), NCH/JCH) 15. One of the members reported electronic transmission of TRA from JCH/ACC to Mumbai Customs often takes more than 24 hours resulting in delay in clearance. The Chief Commissioner directed the Systems Mangers (EDI) to look into the matter and take immediate remedial steps for reducing the time taken for transmission of TRAs. (Action Systems Managers(EDI), JCH/NCH/ACC) 16. It was pointed out by one of the members that in case of Advance Filling of B/Entry, whenever there is a change in exchange rate, the department asks for the cancellation of the Bill of Entry and filing of fresh Bill of Entry, which causes problems to importers and leads to delays in clearance of goods. It was requested that suitable provision may be made in the software for changes in exchange rate which will update the change automatically without ever canceling the whole Bill of Entry. The Chief Commissioner stated that the Systems Manager to look into the matter and if necessary, the same be taken up with the Directorate of systems for remedial action. (Action Systems Managers (EDI), JCH/NCH/ACC) 17. The Chief Commissioner of Customs thanked all the members present. 18. The next meeting will be held on 11.02.2005 at
3.30 P.M. The points sponsored for discussion for the next meeting
should reach positively
by 31.01.2005 in the offices of the Chief Commissioner of Customs, Mumbai
Zone – I, II and III. (Rajendra Singh) Copy to - Copy for information and wide circulation to:
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