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Open House Meeting held on
28-05-07
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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 INDUSTRY ASSOCIATIONS OF 16.05.07 AT 3.30 P.M. IN THE R & I CONFERENCE HALL The Open House Meeting for the month of May, 2007 was held under the Chairmanship of Shri K. M. Tiwari, Chief Commissioner of Customs, Mumbai Zone-I, and Shri N. Sasidharan, Chief Commissioner of Customs, Mumbai Zone-II on 16.05.2007 in the R&I Conference Halls at 11th Floor, Annexe Bldg., New Custom House, Ballard Estate, Mumbai-400 001. Shri A. K. Prasad, Commissioner of Customs (Import), Mumbai Zone-I also attended the meeting. 2. The following representatives of the BCHAA, Trade and
Industry attended the meeting: iii) MANSA iv) ASSOCHAM v) DMAI (Dyestuff Manufactures Association of India) vi) M/s. Liladhar Pasoo Forwarders P. Ltd. 3. At the outset both the Chief Commissioners of Customs, Zone-I & II welcomed the Members of the Trade. The Chief Commissioner of Customs, Zone-I informed the Members that Shri A. K. Prasad, Commissioner of Customs (Import) of Mumbai Zone-I, who was also present in the Meeting, was under orders of transfer and has been relieved to join as Commissioner of Central Excise, Belapur, under Mumbai Central Excise Zone-II. He expressed best wishes to Shri Prasad on behalf of the House for his future assignments and expressed appreciation for his distinguished services and contributions towards trade facilitation, and streamlining the procedures. Chief Commissioner of Customs, Zone-I, also informed the Members that Mrs. Sanghmitra Panda, who has joined in place of Shri A. K. Prasad, is an equally distinguished officer. Capt. P. P. Singh, the MANSA representative congratulated Shri A. K. Prasad for his efficient work and co-operation given by him to Trade. Shri Om Prakash Agrawal, BCHAA president expressed his appreciation to Shri A. K. Prasad on behalf of BCHAA for the trade facilitation work done by him. He wished all the very best to Shri A. K. Prasad for sorting out various issues to the satisfaction of Trade. Shri Mohan Nihalani, President AIIEA also wished all the very best to Shri A. K. Prasad and hoped that Shri Prasad would even do better in his future assignment. 4. Chief Commissioner of Customs, Zone-I informed the Members that a Meeting has been organised by Indian Merchants Chamber on 23rd May, 2007 in Mumbai with Shipping Associations and Ministry of Shipping on the issue of late filing and incorrect filing of EGMs, by shipping companies. He requested Capt. P. P. Singh, the MANSA representative present in the Meeting, to come prepared for the meeting on 23rd May, 2007 on the issue of late filing, wrong filing and non-filing of EGMs by shipping companies. He informed the Members that in large number of cases EGMs are filed with serious errors, especially errors in the Container Nos, Marks and Nos. and names of exporters, by shipping companies and this is the main reason for late settlement of drawback claims in such cases. He hoped that the Members present would also attend the meeting on 23rd May, 2007 organised by Indian Merchants Chamber to raise their view points and for finding solutions to this vexed and persisting problem. 5. Thereafter, the discussions on the minutes of the previous Meeting were initiated. As there was no pending issue from the previous Meeting, the Chair informed the Members that two new points which have been received from M/s. Liladhar Pasoo Forwarded Pvt. Ltd, Mumbai may be discussed. Shri Mohan Nihalani, Meanwhile, informed the Chair that an agenda point for this meeting has also been sent by the Chemicals & Alkali Merchants Association two days ago and that it should also be taken up for discussion. To this the Chair, enquired whether any member of the Chemical & Alkali Merchants Association was present in the Meeting. As no member was present from the Chemical & Alkali Merchant Association in the Meeting, he inquired with Shri Kishori Lal, Addl. Commissioner, Mumbai Zone-I, whether any such point has been received. Shri Lal informed the Chair that no letter from the Chemical & Alkali Merchants Association has been received. Thereafter, the Chair requested Shri Nihalani to give a copy of any such letter to Shri Lal so that it could be taken up for discussion in the next Open House Meeting. Shri Nihalani informed the Chair that it would be done so. NEW POINTS 6. SL. No.1 : Point sponsored by M/s. Liladhar Pasoo Forwarders Pvt. Ltd, Mumbai: BCH PN NO. 85/1999 regarding amendments in EDI Bill of Entry after Out-of-Charge order M/s. Liladhar Pasoo Forwarders Pvt. Ltd, Mumbai had represented regarding amendments in EDI Bill of Entry after Out-of-Charge order is given drawing attention towards Para no.18.4 (i), (ii), (iii) & (iv) of the Public Notice No.85/99 dt.29.07.99. For amendments such as change of importer’s address, description of the goods, nature of packing and weight, name and address of the suppliers, value etc., importers/CHAs make written request for necessary changes based on documentary evidence which were in existence at the time the goods were cleared, deposited as the case may be, under section 49 of the Customs Act, 1962.They had also represented that no Standing Order has been issued on the procedure to be followed for amendments of Bill of Entry under Para 18.4 of Public Notice No.85/99 and therefore the matter becomes time consuming by movement of files from table to table. COMMENTS It was informed that the stated amendments have two situations: In any case, in any specific difficulty encountered be pointed to Senior Officers so that corrective action may be taken accordingly. The point was considered to be closed. 7. SL. No.2 : Point sponsored by M/s. Liladhar Pasoo Forwarders Pvt. Ltd, Mumbai: BCH PN NO. 16/2006 regarding endorsement of EDI Bill of Entry for CENVAT purpose. They also represented that before 22.03.06, importer’s declaration giving details of particulars regarding name and address of the place where the goods are to be sent along with full address of the Range Office of the Central Excise Authority under which the said place is covered used to be pasted on hard copy Bill of Entry and such declarations were endorsed by the Shed Appraiser duly rubber stamped so that importers can present the same bill of entry to the concerned inspector of Central Excise Authority for CENVAT credit purpose. They had drawn attention to the Public Notice No. 16 of 2004 dated 22.03.2006, which states at Para No.4 as under: They had further represented that they have to presume that the said Public Notice No.16/2006 read with Rule 9 of CENVAT Credit Rules 2004 a Bill of Entry is required to be produced by the concerned party registered with Central Excise Authority for availment of CENVAT Credit. They wanted clarification for amendment if a Bill of Entry contains one of the importer’s many addresses registered with DGFT for which IEC certificate is issued and all those addresses are available against the same importer in the EDI system but the address where the goods are meant to be used is not declared in the Bill of Entry, whether the said Bill of Entry can be accepted for availing the CENVAT Credit under CENVAT Credit Rules 2004. COMMENTS It was informed that a reference has been received for re-consideration of Public Notice 16/2006. Board has sought comments of Import Commissionerate which has since been forwarded. Accordingly, Board is seized of the matter. Till then the content of Public Notice 16/06 read with CENVAT Rules 2004 have to be specifically followed. Chief Commissioner of Customs, Mumbai Zone-I, requested Shri A. K. Prasad, the outgoing Commissioner of Customs (Import) to appraise the Members on the issue. Shri Prasad informed the Members that the problem has arisen because even after issuance of CENVAT Credit Rules, 2004, which dispensed with endorsement of Bill of Entry for availment of MODVAT Credit, Shed Officers used to endorse declarations regarding addresses to which the goods would be going. Hence a Public Notice no. 16/2006 dated 22.03.2006 was issued to stop such unwarranted practice. The Bill of entry itself without any separate endorsement is the required document for CENVAT credit. He informed the Chair that a reference has been made to the Board in view of representation received from Trade for change/ amendment in CENVAT Credit Rules, 2004. However, no clarification has been received from the Board till date and therefore Public Notice No. 16/2006 dated 22.03.2006 read with CENVAT Credit rules 2004 is required to be followed scrupulously. He also informed the Members, that instead of insisting for endorsement which is no longer required, they should raise second invoice to overcome this problem. The point was considered to be closed. 8. SL. No. 3 : Point sponsored by Shri Om Prakash Agrawal of BCHAA : Declaration of MRP on imported goods in Docks before Out-of-Charge. Shri Om Prakash Agrawal raised the point that Rule 33 of the Standards of Weights & Measures (Packaged Commodities) Rules 1977 has been deleted but Customs is still insisting for marking / declaration of MRP on imported goods before permitting clearance. To this, Chief Commissioner of Customs, Zone-I informed the Members that DGFT has not yet amended Note 5 of the General Notes to ITC (HS) and as the Board's Circular is based on DGFT instructions, Customs cannot suo motu stop insisting for declaration of MRP before clearance. Customs is only an enforcing agency and is functioning and enforcing statutory laws and procedures in respect of other Government agencies for declaration of MRP. Chief Commissioner, Zone-I, requested the Members to approach DGFT for withdrawing / amending General Note 5 ITC (HS) in line with withdrawal of Rule 33 of the Standards of Weights & Measure (Packaged Commodities) Rules, 1977. He also informed the Members that if sufficient materials are provided to the department a representation to the Board may be made to take up the matter with DGFT for amending General Note 5 ITC (HS). Shri Laxmichand Shah informed the Chair that he has enough material with him and would provide him for necessary action. Shri A. K. Prasad, the outgoing Commissioner (Import) informed the Members that this was a self contradictory situation, as DGFT has not amended General Note 5 ITC (HS) even after the amendment of Rule 33 of the Standards of Weights & Measures (Packaged Commodities) Rules, 1977. He, however, informed the Members that as soon as materials related to the background and legal position are provided by the Members, a representation to the Board will be made. The point was considered to be closed. 9. SL. No. 4 : Point sponsored by Shri. Naval Mehta of BCHAA: Imported goods pending certain clarification/ submission of documents on test/ investigation are not being allowed to be deposited under Section 49 or cleared under Section 60. Shri Naval Mehta, BCHAA Member, raised the point that imported goods lying in docks are not being permitted to be deposited under Section 49 or cleared u/s 60 pending clarifications/ submission of documents/ tests/ investigation even after long periods and Trade is incurring heavy demurrage and detention charges on account of this. To this, Chief Commissioner of Customs, Zone-II asked the Members to bring any specific instances as without any specific instance, nothing can be done. He informed the Members that there are clear out instructions for permitting deposit of goods u/s 49 pending any investigation/ test/ clarification etc and hence unless specific instances are brought to the notice of higher authorities, nothing can be done. Chief Commissioner of Customs, Zone-I also informed the Members that there is no legal hitch and if Trade is having any specific problem it should immediately bring it to the notice of higher authorities. Shri Naval Mehta informed the Chair that in case of Warehouse Bills of Entry, the goods remain under custody of Customs authorities and permission for bonding under Section 60 should be permitted pending any investigation/ test/ clarification and if any violations are found later on Customs Authorities can take appropriate action. To this, Chief Commissioner of Customs, Zone-II, informed the Members that they should not confuse Section 49 with Section 60. He informed the members that the goods need to be cleared form the licence angle and finally assessed before permitting warehousing under Section 60, as there is no provision to revise the value, check the licence aspects or do adjudication at the time of ex-bonding. Except for rate of change of duty and exchange rate every other aspects of assessment are required to be decided at the time of bonding u/s 60. Hence, if the Trade want to save demurrages detention charges in respect of Into-bond Bill of Entry, they may get it converted into Home Consumption Bill of Entry and deposit the goods under Section 49 on payment of duty. The point was considered to be closed. 10. SL. No.5 : Point sponsored by Shri Naval Mehta of BCHAA: Amendment of bills of entry assessed under RMS but pending for duty payment i.e. live bill of entry. Shri Naval Mehta of BCHAA raised the point that amendments in bills of entry assessed under RMS but pending for duty payment are not being allowed by the department. He informed the Chair that in few cases the junior officers had refused amendments of RMS assessed bills of entry filed just after Budget 2007 for claiming exemptions on the grounds that claimed benefit no longer exists as Notification No. and/or Sr. No. in Notification were changed post Budget 2007. He also informed the Chair that pending duty payment, the department should have allowed such amendments and department should have granted general exemptions on its own even though not claimed by importers, in terms of Board's instructions. To this the outgoing Commissioner (Import) Shri A. K. Prasad with the permission of the Chair, informed the Members that they should have met Joint Commissioner or Additional Commissioner or Commissioner on this issue as Dy./ Assistant Commissioner is not empowered to allow amendment in case of RMS assessed bills of entry. He informed the House that no specific instance was brought to his notice and if trade at all had any such problem they should have met Joint Commissioner for such amendments. He also informed the Members that for ACP clients and facilitated Bills of Entry of Non-ACP clients, Joint Commissioner is authorised to allow amendments. He also informed the Members that he had observed that many CHAs filed Bills of Entry without claiming proper notification benefits with the intention to claim the benefit at the time of assessment in Groups. But the problem arises if such Bills of Entry get facilated by RMS and lands directly in docks. He said that he had personally warned many CHAs to desist from making repeated mistakes as it is neither in the interest of Trade nor department. He said that CHAs should be more careful in filing Bills of Entry and they should adapt to changes brought about by RMS to serve the Trade better. To this, Shri Naval Mehta said that even through no exemption was claimed by CHA/importer initially as per Board's instructions, the department should must extend applicable benefits suo- motu. Chief Commissioner of Customs, Zone-I informed the Members to bring specific cases to his notice and amendment prior to duty payment in case of RMS facilitated Bills of Entry in genuine cases may be considered. He also assured the Members that Commissioner (Import) will look into cases where exemption has been denied due to mere change in Notification no./ Sr. No. Post Budget and Members should bring such cases to the notice of Commissioner (Import). He also informed the Members that RMS is still evolving and Mechanism for centralised feeding / updating of Notification etc is being developed. He requested the Members to be patient with RMS and bring it to the notice of the Commissioners if any new Notification or amendment in earlier Notification is not incorporated in the System, so that they should not face such problems. He informed the Members that System is not full-proof and cannot extend Notification benefits on its own and hence requires consistent monitoring / up-gradation to incorporate frequent changes in rates of duty. Shri George Joseph of ASSOCHAM informed the Chair that CHAs should not be penalised for seeking amendments in RMS facilitated Bills of Entry for Notification benefits as importers have already suffered losses on account of heavy demurrage and detention charges and if there is a fault on the part of CHA, importers generally deduct huge amount from payments made to CHAs or ask CHA to compensate for losses. The chair asked the BCHAA Members to be more careful in filing Bills of Entry in RMS and take appropriate steps to sensitise CHAs on this issue. The point was considered to be closed. 11. The meeting ended with a vote of thanks to the Chair. 13. This issues with the approval of Chief Commissioners of Customs, Mumbai Zone-I and Mumbai Zone-II. Sd/- Copy to: | |||