3. Mumbai & Nhava Sheva Ship Agent's Association (MANSA)
Col. T.S.Tanwar (Rtd.)

4. The Association Chamber of Commerce & Industries of India (ASSOCHAM)
Shri George Joseph
Shri Rajendra Nair

5. FIEO (Federation of Indian Exporter Organisation).
Shri Gulam Mohd.

6. Maharashtra Chamber of Commerce & Industries (MCCI)
Shri H.S. Birdi
Shri Ashish Pednekar

7. J.M.Baxi & Co.
Shri Mathew D'Silva
Shri B. Sashidhara

8. IDMA
Shri Mahesh H. Doshi

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

10. Container Movement (Bombay) Transport Pvt. Ltd. (CMT)
Shri Kiran M. Baxi
Shri Ramchandra V. Nagwekar

13. Individual/Member of the Public
Shri Rajiv Gupta

2. The Chief Commissioners of Customs, Mumbai (S/Shri Joseph Dominic (Zone-II), K.M.Tiwari (Zone-I) and Jogendra Singh (Zone-III) welcomed all the members of Trade, Industry, CHAs Association and officers present in the meeting. The Chief Commissioner of Customs wished all the members and officers present a Happy Holi and ensuing Happy New Year. The Chief Commissioner of Customs said that the Revenue collection at Mumbai Customs House and Air Cargo Complex were far below the Revenue Targets and the collections at Jawahar Customs House, Nhava Sheva were also not very encouraging as expected. He, therefore, requested all the Members and Associations to cooperate with the Deptt. to maximize the Revenue collections so as to reach close to the Revenue Target by 31st March, 2004. Thereafter, the Minutes of the meeting held on 09.02.2004 were confirmed.

3. The Agenda points were taken up for discussions. The representatives of Trade, Industry and CHA association raised the following points:-

I. Issues raised by Anil Bamba of SRTEPC :
3.1 Settlement of claim for goods destroyed by fire at Dronagiri : The Member brought out that a devastating fire broke out at CWC, Shed No.4, Dronagiri, Nhava Sheva on 07.6.2002. M/s. Rajlakshmi International, Mumbai, one of their Member-Exporter, represented that they had lost 85 cartons of textile fabrics in that fire. The goods were covered under Shipping Bill No. 817081 dtd. 06.6.2002. The party had lodged a complaint for claim for Rs.17,28,870/-. But till date, party has not received the claim amount despite assurances by CWC.

3.1.1. The Chief Commissioner of Customs informed that this is an issue which is to be settled between CWC and the exporter. However, he informed that CWC has been requested to expedite processing of their claims.

3.2 Debiting of only 50% Customs Duty against DEPB at JNPT : We understand from our Member-Exporter that at JNPT Customs, only 50% of the Customs duty is being debited against DEPB, and importers are forced to pay the balance 50% in cash. The above measure followed at JNPT Customs is presumably to achieve maximum Revenue during the financial year ending 31st March, 2004. However, the move is causing immense financial hardships to exporters, importing under the DEPB Scheme as their cash resources are seriously affected. Besides, exporters are already reeling under the impact of the sudden and abrupt reduction in DEPB rates recently.

3.2.1 The Chief Commissioner of Customs, Mumbai Zone - II (Shri Joseph Dominic), informed that the Association has since discussed the issue personally with him and the same has been settled. Therefore, issue merits no further discussion.

II Points raised by Shri Rajiv Gupta :
3.3 Clearance of consignment of Commercial Grade of Chemicals under Advance Licence : Shri Rajiv Gupta explained the difference between the 'Chemicals' and 'Technical' grade of the chemicals and was of the view that the 'Commercial' grade chemicals are prepared in volume for general industrial use and purity level vary but they are often comparable in purity to 'Technical' grade chemicals. He tried to explain that against Advance Licence all the grades of chemicals may be allowed import irrespective of the grade mentioned in the licence.

3.3.1 The Chief Commissioner clarified that there cannot be a general ruling that all grades of chemicals will be allowed import irrespective of the specification mentioned in the Licence. Only those chemicals having characteristic matching strictly with the norms such as grade, percentage of purity, strength, capacity, etc. provided in the Licence would be allowed for imports. Further, in case where no specifications have been endorsed on the Licence, the Chief Commissioner clarified that only those grades of chemicals which are required for use in the manufacture of the product to be exported and described in the Licence would be allowed for imports. However, he asked Shri Rajiv Gupta to make a detailed representation of the specific case to the Commissioner (EP) for appropriate decision.

3.4 Delay in releasing the Bank Guarantee in respect of deemed Export Licence after issuance of EODC by RLAs : Shri Rajiv Gupta stated that the Bank Guarantees in respect of deemed export licence after issuance of EODC by RLAs are not been released expeditiously because the Customs intended to verify the details of the deemed exports by referring the matter to the C.Excise authorities. He has quoted a specific representation of M/s.JD Exports.

3.4.1 The Chief Commissioner of Customs clarified that M/s.JD Exports have still not submitted any documents to the O/o Commissioner (E.P.) and they have been specifically advised on phone to expedite submission of the documents. The Chief Commissioner of Customs also clarified that as indicated in the Minutes dtd. 21.01.2004 (Para 3.9.1) of the Open House Meeting held on 05.01.2004, the verification of the deemed export from the C.Excise authorities cannot be dispensed with. However, to expedite verifications, the Commissioners of C.Excise in the Zones have been requested that the reports of verifications of deemed exports may be sent to the Customs House within 3 days from the receipt of the request at their end. This measure will help the Trade to a great extent in resolving their problem.

III The following points outside the Agenda points were also taken up for discussions :
3.5 Conversion of Free Shipping Bills into various Export Promotion schemes : Shri Mohan Nihalani of AIIEA queried as to whether conversion of Free Shipping Bills to different Export Promotion Schemes permitted in the past will also be revoked because of the latest Board's order.

3.5.1 The Chief Commissioner clarified that the instructions under Circular No. 04/2004-Cus. dtd. 16.01.2004 issued by the Board will apply prospectively. All the decisions taken before the receipt of such instruction will not be reopened.

3.6 Delay in securing delivery order by Steamer Agents : Shri Bharat Shah of BCHAA brought out that they have faced difficulties for securing delivery orders from the Steamer Agents as they are not accepting documents generated by them where Shipping Bills/Bills of Entries are filed through Icegate. The Steamer Agents are of the view that the documents generated by CHAs in their business cannot be relied upon as they are not verified/certified by the Customs.

3.6.1 The Chief Commissioner clarified that this is an issue which has to be settled between CHAs, Importers and the Steamer Agents, and Customs have no role to play. However, he would take up the issue with Steamer Agents to help the Trade.

3.7 Establishing identity of the samples taken personally by the MD/CEOs of the Export firms : Shri A.Ravindra Kumar, Asstt. Director, SRTEPC, Mumbai, stated that the MD/CEO and other Executives of the export firms invariably carry with them the trade samples of the garments as their personal baggage to show it to their prospective buyers abroad. Their request for Export Certificates at the time of their departure is invariably not acceded to by the Customs authorities. On their return when they bring back their samples they face difficulties in clearing the same as their personal baggage without payment of duty.

3.7.1 The Chief Commissioner advised Shri A.Ravindra Kumar, Asstt. Director, SRTEPC, Mumbai to make a detailed representation to the Chief Commissioner, Zone-III, as the problem relates to Airport only and the problem has never been individually brought to the notice of the Commissioner (Airport) in the past. The Chief Commissioner, Zone-III (Shri Jogendra Singh) assured Shri. A.Ravindra Kumar, Asstt. Director, SRTEPC, Mumbai, the issue, on receipt of the representation will be examined for appropriate action.

3.8 Securing original documents from MCD : Shri Rajendra Nair of ASSOCHAM brought out that whenever the original documents are required to be collected from MCD it takes a very long time to secure the same. To obviate this difficulty he suggested that in case MCD fails to take out the original documents within 15 days from the receipt of the 'R-Slip' from the Deptt. orders for reconstruction of the documents may be given.

3.8.1 The Chief Commissioner of Customs clarified that ordering of reconstruction of the documents is a very delicate issue and reconstructed documents may find use for genuine or fraudulent purposes. Therefore, the issue would require indepth study before any instructions are issued in this regard. He requested Shri Rajendra Nair to submit a detailed representation containing proposals/suggestions to the Commissioner (Gen.) who will examine the issue and suggest solutions for the above said problem.
(Action : ASSOCHAM/Commissioner (Gen.))

3.9 Test reports pending with DYCC : Shri Sorab P. Engineer of BCHAA brought out that there is huge pendency of samples pending for test as well as issuance of Test Reports (after the Test results) with the DYCC as they are not getting the Test Reports from the DYCC for long time. He also stated that queries are raised by DYCC in the Test Reports also to produce further proof/literature for confirming the Test Results.

3.9.1 The Chief Commissioner assured the Member that he will take up the issue of pending Test Report and the undesired queries raised by DYCC.
(Action : Commissioner (Gen.))

3.10 Delay in noting the documents: Shri H.S. Birdi of MCCI stated that there is lot of delay in noting the Bills of Entry where DEEC Licence is pending verification. The importers are required to give an affidavit duly notarized stating interalia that they were not involved in any offence case booked by the C.Excise or Customs. This process takes long time which eventually delays the noting. The Member suggested that instead of insisting on furnishing an affidavit, a simple declaration stating the same facts may please be accepted to avoid delay in noting.

3.10.1 The Chief Commissioner of Customs clarified that henceforth declaration/undertaking for the above purpose only instead of affidavit would be accepted to avoid delay in noting of the Bills of Entry.

4. The Chief Commissioners of Customs thanked all the members present.

5. The next meeting will be held on Monday, the 12th April, 2004 at 15.30 hrs.. The points sponsored for the meeting should reach the O/o Chief Commissioner of Customs, Mumbai Zone I, II & III latest by 31.3.2004 positively.

(O.P.KHANDUJA)
Addl. Commissioner of Customs/CCO
Mumbai - I

Copy to :

1. The Chief Commissioner of Customs, Mumbai Zone-II & Zone-III.
2. All Commissioner of Customs, Mumbai Zone-I, II & III.
3. The Addl. Commissioner of Customs (EDI), Mumbai - for website display.
4. The Jt. DGFT, Mumbai.

Copy for information and wide circulation to :

All Associations with a request to inform members to view the minutes on the website of Mumbai Customs at www.mumbaicustoms.gov.in