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 REPRESENTATIVES OF THE TRADE AND INDUSTRY ASSOCIATIONS ON 13.10.2003 AT 3.30P.M. IN THE CONFERENCE HALL OF MUMBAI CUSTOMS HOUSE.

The Open House meeting for this month was held under Shri Subrata Basu, Chief Commissioner of Customs, Mumbai Zone-I & Shri Joseph Dominic, Chief Commissioner of Customs, Mumbai Zone-II & III on 13th October, 2003 in the Conference Hall, 2nd flr., New Custom House, Ballard Estate, Mumbai.
The following officers were present:
1. Shri K.K. Agarwal, Commissioner of Customs (General), Mumbai Custom House.
2. Shri Ahmed Hussain, Commissioner of Customs (Imports), Mumbai Custom House.
3. Shri Shishir Kumar, Commissioner of Customs (Export Promotion), Mumbai.
4. Shri N.K. Bhujabal, Commissioner of Customs (Export Promotion), Nhava Sheva Custom House,
5. Shri Darshan Singh, Jt. Director General Foreign Trade, Mumbai.
6. Shri C.M. Sharma, Addl. Commissioner of Customs, CCO, Mumbai Custom House.
7. Shri Manoj Krishna, Addl. Commissioner of Customs (Export Promotion), Mumbai Custom House.
8. Shri Rajendra Singh, Joint Commissioner of Customs (Export Promotion), Mumbai Custom House.
9. Shri Vivek Prasad, Joint Commissioner of Customs (Imports), Mumbai Custom House.
10. Shri. Chandrakant Valvi, Joint Commissioner of Customs (Imports), Mumbai Custom House.
11. Shri Sandhu, Jt. Director General Foreign Trade, Mumbai.
12. Shri Jhamman Singh, Asstt. Commissioner of Customs, CCO, Mumbai.

The following representatives of the Trade & Industries Associations and the Bombay Custom House Agents Association attended the meeting:

1. Bombay Custom House Agent's Association (BCHAA)
Shri Mark S. Fernandes
Shri Naval H. Mehta
Shri Pravin Kanakia
Shri Rajiv Desai
Shri Pankaj Shah
Shri Sorab P. Engneer

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

3. Mumbai & Nhava Sheva Ship Agent's Association (MANSA)
Shri Ramesh Bhatia
Col T.S. Tanwari (Retd.)

4. Dyestuff Manufacturer's Association of India (DMAI)
Shri S. Srinivasan

5. Maharashtra Chamber of Commerce & Industries (MCCI)
Shri H.S. Birdi

6. Confederation of Indian Industries (CII)
Ms. Neelima Sharma

7. The Association Chamber of Commerce & Industries of India (ASSOCHAM)
Shri Rajendran Nair

8. National Organic Chemical (Rubber Chemical Division)
Shri A Sivaraman
Shri J.B. Khale

9. IMC (Indian Merchant Chambers)
Shri K.M. Doshi

10. Maharashtra Chamber of Commerce & Industries (MCCI)
Shri H.S. Birdi

11. IMC (Indian Merchant Chambers)
Shri Nishant Shah

12. Individual Member of the Public
Shri R. Gupta

2. The Chief Commissioner of Customs, Mumbai Zone - I, welcomed all the members of the Trade, Industry and CHAs Association and the officers to the meeting.

3. The representatives of the Trade, Industry and CHA Association raised the following points.
I. Issues raised by MANSA (Mumbai & Nhava Sheva Ship Agent's Association)
3.1. The Refund of Revenue Deposit by Mumbai Customs to Shipping Agents. The Details for the period 1995 till 2003 submitted by MANSA vide letter dated 22nd September 2003 through Mumbai Port Trust may please be referred and that Refund of Revenue Deposit of Rs. 3,000/- per IGM paid by Agents may be taken up for early refund.

3.1.2 The Commissioner of Customs (Imports) informed that recently 12 cases have been decided and the refund was granted. On receipt of the list from Association further action would be initiated.
Association (MANSA) was asked to provide the list of pending cases of Revenue deposit to Commissioner of Customs (Imports), Mumbai alongwith details of payment such as cash number, date and copy of challan number with supporting documents for consideration of respective claims so that action could be initiated/concluded.

II. Issues raised by M/s National Organic Chemical Industries Limited (NOCIL).
4.1. It was represented that till recently TRAs were sent to Kandla Custom House by hand of the Importer/CHA in sealed cover and these are now being sent under Registered Post with remarks.
"The TRAs may be utilised only after receipt of Registered Post."
It was represented that the old procedure in sealed envelop to the importer may be reintroduced.
4.1.2 Their request was accepted. The Chief Commissioner of Customs also directed that in order to co-relate the TRAs and to prevent mis-use and avoid fraud, TRA should be sent by TRA issuing Custom House by e-mail or EDEC to TRA using Custom House giving details of TRA so issued. On utilisation of TRA, the Custom House of TRA will also intimate the details of the TRA received debited by them to TRA issuing Custom House through e-mail or EDEC. This will facilitate speedy delivery of TRA and fraud would be prevented.

III. Issues raised by All India Importers & Exporters Association.
5.1 The Association represented that any major changes, which are sought to be brought about by any Group of Customs, should be discussed with the trade in advance, in a meeting, chaired by atleast the Chief Commissioner of Customs.

5.1.2 The Chief Commissioner of Customs informed that the suggestion has been noted.
5.2 The Association represented that the issue of indication relating to Marking of "Country of Origin" on the packing of the import goods has been in existence, for several years. The Custom House has now started enforcing these regulations very strictly. Since this rule was being not enforced by Customs for several years, it had created an impression in the minds of the importers that such markings "Country of Origin" was not required.
For this offence, the Customs authorities have started levying penalties, which vary from Group to Group and are not very high in some cases. It was pleaded that the said consignments could be released under a "Caution" advice to the concerned importers, so as to fall within the parameters of judicial aspects of the provisions of "Promissory Estopel."

5.2.1 The Chief Commissioner of Customs informed that the matter had been taken up for discussion in All India Chief Commissioner's Conference at Vizag with regard to Trade Marks Act, 1999. However the concerned officers would take lenient and pragmatic view.

5.3 The issue of import of 2nd hand Computers as 2nd hand capital goods was also taken up as it was decided that 2nd hand Computers are not capital goods.

5.3.1 The Jt. DGFT, Mumbai informed that the issue has been considered under Circular No. 16 RE dated 29th September, 2003 issued by DGFT read with para 2.17 of Exim Policy. It was felt that there is a need for more clarification to circular, which should be suitabily taken up by the trade with DGFT. It was further informed that the Customs shall keep decision on cases pending, so that the trade can get suitable clarification from DGFT. The Chief Commissioner of Customs informed that in case of difficulty, the concerned Commissioner of Customs may be approached.

6. During discussion the following points were also raised.
6.1 Remedies provided by the Circulars of the Board are not implemented with due required speed.

6.1.2 The Chief Commissioner of Customs desired specific cases, for consideration.

6.2 Examination report is being recorded and generated in Computer System in Docks, after 6.00 P.M due to hardware problems in Mumbai Port.

6.2.2 The Chief Commissioner of Customs informed that all the Examining Officers have been instructed by Commissioner/Joint Commissioner to follow the instructions with regard, to examination and report for goods so that goods examined during first round in Forenoon, the feeding of examination report shall be made before lunch and for the 2nd round examination report shall be fed before 6.00 p.m.
It was also informed that Trade should present their Bs/E before 4.00 p.m. each day to Examining Officer, so as to conduct examination during the sameday, examination report can be generated on the same date before 6.00 P.M. This is to prevent any avoidable delay. Any difficulty, if noticed, should be taken up with Jt. Commissioner of Customs i/c (Docks) for its redressal.
It was also informed that the CHA Association alongwith Joint Commissioner (Docks) may carry out a joint visit to resolve issues relating to generation of EDI Systems.

6.3 Time limit could be prescribed for calling the original Bs/E and other documents from MCD in Requisition Slip. In the event, the documents are not received from MCD with in the prescribed time, the procedure for reconstruction of Bills of Entry, Shipping Bills may be considered by the officers.

6.3.1 The Chief Commissioner of Customs informed that the issue would be considered on case to case basis. Any importer/exporter, if aggrieved, may represent their case to concerned Deputy Commissioner for appropriate decision.

6.4 Grievance Committee meeting, Open House meeting being held by DGFT is not being attended by Customs House Officers for immediate consideration of grievances.

6.4.1 The Chief Commissioner of Customs informed that Shri K.P. Mishra, Jt. Commissioner (Export), Mumbai Custom House would attend the meeting in DGFT Office from Mumbai Zone-I and one Addl./Joint Commissioner from Jawahar Custom House, Nhava Sheva (dealing with Export Promotion issues) should be nominated by Chief Commissioner of Customs, Mumbai Zone-II.

6.5 Error in transmission of data from DGFT to Custom House leads to certain difficulties, especially for IEC Code etc.

6.5.1 The Chief Commissioner of Customs informed that CMC and Addl. Commisioner (EDI) would examine the issue so as to facilitate the trade for verification of available data in Customs EDI System. Before concluding the Chief Commissioner of Customs informed the following points.
(a) Custom House passes issued to CHAs are being verified by the officers so as to avoid presence of un-authorised persons in Customs Area. It was therefore advised that CHA/Importer/Exporter should prominently display the original Identity Card/Custom House pass so as to facilitate checking of unauthorised persons in the Customs House.

(b) The TRA procedure between Jawahar Custom House and Mumbai Custom House and vice versa was modified recently. It is observed that the annexure being debited are not being re-submitted by CHA/importer for feeding the data on the system. The CHA/Importers should ensure that such debits / document for such debits are presented for appropriate posting in the System without delay. Feasibility of posting of Data Entry Operators for this purpose would also be examined by Addl. Commissioner of Customs (EDI), Jawahar Custom House/Mumbai Custom House/Air Cargo Complex.

(c) The importer of Textiles had raised a point regaring Test of Fabric to test as to whether the fabrics so imported are texturised or non-texurised and there were delays in the clearances.

In this regard the CHA and importer were advised that at the time of filing Bs/E. The importer/CHA should make a specific and clear declaration about the nature of yarn as to whether or not it is a texturised or non texurised fabric. Based on the test report issue by Deputy Chief Chemist of Customs House, the importer/CHA were advised to get their assessment finalised without delay and clear the consignment. In case of dispute or descripencies in the Test-Reports sample can be forwarded to Central Revenue Laboratory, New Delhi for re-test.
7. The next meeting will be held on 10th November, 2003 at 15.30 hours. Points sponsored for the meeting should reach Chief Commissioner of Customs, Mumbai Zone-I & Mumbai Zone-II, Nhava Sheva before 5thNovember, 2003 positively.

( C.M. SHARMA)
Addl. Commissioner of Customs
Chief Commissioner's Office
New Custom House, Mumbai Zone-I.

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