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Open House Meeting held on 04-08-2003
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OFFICE OF THE CHIEF COMMISSIONER OF CUSTOMS
MINUTES OF THE OPEN HOUSE MEETING OF THE CHIEF COMMISSIONER OF CUSTOMS, MUMBAI ZONE-I, II, and III HELD WITH REPRESENTATIVES OF THE TRADE AND INDUSTRY ASSOCIATIONS ON 04.08.2003 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 & Shri C. Sen, Chief Commissioner of Customs, Mumbai Zone-III on 04th August, 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. The following representatives of the Trade & Industries Associations and the Bombay Custom House Agents Association attended the meeting: 1.
AIIEA (All India Importers & Exporters Association) 2.
BCHAA (Bombay Custom House Agent’s Association) 3.
MANSA (Mumbai & Nhava Sheva Ship Agent’s Association) 4.
DMAI (Dyestuff Manufacturer’s Association of India) 5.
TATA GROUP 6.
ASSOCHAM 7.
FIEO (Federation of Indian Exporter Organisation) 8.
CONCOR (Container Corporation of India Ltd., Govt. of India under taking,
Ministry of Railway) 9.
IMC (Indian Merchant Chambers) 10.
IDMA (Indian Drug Manufacturers’ Association) 11.
Confederation of Indian Industries (CII) 12.
Ashish Pednekar 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. 2. The minutes of the meeting earlier held on 07.07.2003 were read and these have been taken as correctly recorded. 3. The representatives of the Trade, Industry and CHA Association raised the following points. I. Points by Indian Merchants’ Chamber. (a)
RE: Delay in Adjudication However, we find that the process of adjudication is very slow. Quite often, the officer who gives personal hearing does not pass order for months together and in the meantime he is transferred. Therefore, that matter has to be heard again before another officer. There have been instances of the same matter being heard before two or three officers but no order being passed. This puts the exporters to great hardship as their claims are withheld. It is suggested that there should be a standing order that the officer who gives personal hearing should pass order within reasonable time and, in any case, definitely before he is transferred. It was stated that in all cases where personal hearing have been concluded it is necessary to communicate the decision immediately or within a reasonable time of 5 days. Where for certain reasons, the above time limit can not be adhered to in a particular case, the order should be issued within 15 days or at most one month from the date of conclusion of personal hearing. As regards transfer of an officer after the personal hearing is conducted by him, it was stated that the system will be evolved to ensure that a concerned officer passes an order before handing over the charge. Accordingly Public Notice will be issued so as to ensure that in case of live Bill of Entry/Shipping Bill decision is taken and communicated to be the concerned party within 5 working days. In case it is not done the concerned party should bring such cases to the notice of Commissioner with copy to the Chief Commissioner and the Association should take up such cases in Watch Dog meeting with the Commissioners. In other cases it could be ensured that an order is passed within 15 days or at most one month from the date of conclusion of personal hearing. [ Action : All Commissioners of Customs, Mumbai Zone I, II & III] (b)
Import of IT Software Further, information technology software can be imported through various modes including by data transfer through the Internet. Two possible modes in which software may be imported are stated below and payment for it is made is stated below. A) Software
dispatched on CD media through courier Later, the Supplier releases the software license code on receiving the payment of US$ 95/-. Only thereafter can the software be used on any computer. B) Software
downloaded through Internet and invoiced separately Later, the Supplier releases the software license code on receiving the payment of US$ 95/. Only thereafter can the software be used on any computer. There is no procedure laid out for the registrations of such imports with the Customs authorities. Request you to kindly provide us the procure to be followed for registration of such software. It may be noted that the RBI in its Master Circular on import of Goods and Services dated 1st July 2003, mentions that: “where are imports are made in non-physical form i.e. software or data through internet/datacom channels and drawings and designs and through e-mail, fax, etc, a certificate from a Chartered Account that the software/data, etc has been received by the importer, may be obtained.” It may also be noted that the circular also asks the authorized dealers to advise the importer to keep the Customs Authorities informed of the imports made by them under the aforementioned clause. It was stated that the RBI Circular dated 01.07.2003 have not been received as yet. The matter will have to be examined before any procedure could be evolved for registration of import of Software cases. [ Action : The Commissioners of Customs(Imports), Mumbai Custom House] II. Points
by All India Importers & Exporters Association An immediate solution on the lines mentioned above is badly required as the trade is suffering due to the resultant delay in verification of the related DEPB, since the Customs refuse to verify the said DEPB pending submission of the related test report an area of compliance which the Exporter is not even aware of in the first place in absence of any information from Customs that samples have been drawn from the related Export Consignment. It was stated that in order to keep the exporter informed of drawal of the sample, indication need to be given on the Shipping Bill itself. But this would require modification of existing Software and thefore steps would be taken to modify the software so that Shipping Bill itself shows that sample have been drawn. Till such time software is modified, extra copy of test memo should be made and given to Exporter/Custom House Agent so that the concerned party knows that a sample have been drawn. [ Action : All Commissioners of Customs, Mumbai Zone I, II & III] (b)
Logging of DEEC Files: It was informed that the Committee set up by the Ministry of Finance to look into the pending logging cases have started functioning and therefore the parties concerned would be informed of the decision on logging. [
Action : The Commissioners of Customs(Export Promotion), III. Points
by Bombay Custom House Agent’s Association The said matter has been brought to the attention of the department on numberous occasions, but unfortunately, it appears that the same uncrupulous elements are still exploiting the EDI System. In order to prevent misuse of CHA Licence by the unscrupulous elements, it is requested, that when a Shipping Bill or Bill of Entry has been logged in Customs EDI System and an E-mail message automatically generated by the Computer, and sent to the concerned Member/Importer/Exporter informing, that the document has been filed against their firm. If the same is not possible to implement immediately, it is requested, that the CHA must be given every alternate day a print out of the list of document, which has been filed against their name for both imports as well as exports. It was stated that Custom House is thinking of providing “on line paid services” to Custom House Agents so that they are in a position to know the status of the B/E / S/B and also the details of B/E / S/B filed by them on particular day. This would take care of the problem posed above. It was further stated that such paid services is already in existence at Air Cargo Complex, Sahar Airport where these details are being E-mailed to the Agents, who have got themselves registered for such services. [
Action : The Commissioners of Customs(General), (b)
Bond Cargo not being granted a period of 90 days Free Interest: We would be grateful, if an appropriate order is kindly issued immediately to rectify the said discrepancy and refund of excess Interest collected refunded. It was stated that normally after the Finance Bill is passed extending the interest period from 30 days to 90 days, the 90 days period should be available to cargo ex-bonded after 14.05.2003 (date on which Finance Act came into force). However since it is a All India issue, before taking final stand in the matter Board’s concurrence/opinion will be sought. [
Action : The Commissioners of Customs(Import), (c)
Bill of Entries noted under Advance Noting Procedure, amendment of Bill
of Lading No., results in, Bill of Entry having to be cancelled. When such a discrepancy is observed, our Members are forced to have the said Advance Bill of Entry cancelled, which had already processed in the department, and a fresh Bill of Entry filed. This result in, wastage of time by more than 72 hours. It is requested, that the amendment of Bill of Lading No. must be permitted and done by the CMC on verification of the original negotiable Bill of Lading, which has been received by the Consignee. It was stated that Bill of Lading is very vital documents and therefore utmost care should be taken to see that Bill of Lading Nos. is correctly mentioned in Bill of Entries filed under Advance Noting procedure. Amendment of Bill of Lading No. cannot be allowed in Advance Noting Procedure. It was also decided that Shri Sorab P. Engneer of Bombay Custom House Agent’s Association will submit a detailed note indicating the problems and solution to the problem being faced by them. [ Action : Bombay Custom House Agents Association ] (d) As per Circular No. 48/2003 dated 6th June 2003, issued by the Ministry of Finance, Govt. of India, revised the norms for execution of Bond with Bank Guarantee under EPCG Licences for various categories of Importers as listed in the said Circular under Sr. No. (a) to (d), were exempted from execution of a Bank Guarantee and (e) who has to execute a 100% Bank Guarantee. The above mentioned Circular in different Customs Zones is being implemented differently. As the category listed under Sr. No. (a) to (d) are exempted from executing a Bank Guarantee, we request, that an appropriate Standing Order along with a Public Notice be kindly issued, so as to prevent confusions and delays that are arising due to the said Circular being implemented as per ones own interpretation. As the point was not very clear the Association was requested to indicate the precise problem being faced by them. In reply to the same it was stated that the Custom House is insisting on Bank Solvent Surety even in cases where exemption from Bank Guarantee have been provided in terms of Board Circular No. 48/2003 dated 06.06.2003. This defeat the very purpose of exemption from Bank Guarantee as Banks gives Solvency Certificate only after taking obtaining security of equivalent amount. After deliberations it was decided that reference would be made to the Ministry and will be persued so that immediately solution is found to the problem faced by the exporters. [ Action : The Commissioners of Customs (Export Promotion, Mumbai Custom House] (a) Inspite of the details of the Bond Bill of Entry available in the system, queries are raised asked for copies of the Warehousing Bill of Entry. Please note, that these result into delay while clearing goods, which is unnecessary, since this information can always be obtained by the Department from the system. (b) While clearing the Ex-bond Bill of Entry under two different schemes, for e.g. if the clearance is partly under DEEC and partly under payment of duty, it will not be possible to assess the same under one single Ex-bond Bill of Entry and even after contacting the Help Desk, it was informed to file two separate Bills of Entry for two different schemes. Please note, in such cases, it results into waste of quantity in the licence, since debit entry will have to be made for the number of packages and the part quantity cannot be adjusted against payment of duty. For such Bills of Entry, either the department needs to find out a way to clear the same under a single Bill of Entry or grant a blanket permission to allow manual noting. (a & b) It was stated that Custom House is taking steps to bring all types of B/E under EDI System and therefore giving blanket permission to allow manual noting in type of cases mentioned above would be retrogatory step. The matter therefore need to be taken up with the System Directorate to find a solution to the problems. In the mean time present System should continue. [
Action : The Commissioners of Customs (General), (c) Inspite of the checklist being submitted for the required quantity of ex-bond, the printout of the checklist doesnot show the details such as IGM Number, item Number, number of packages, gross weight, value etc. (d) Further, even final printout (after necessary correction in the checklist) of the Bill of Ebtry shows the full quantity and not the quantity to be ex-bonded. This applies for all the columns i.e. number of packages, gross weight, freight insurance etc. Even the printout of the duplicate and triplicate copy of the Bill of Entry after payment of duty is received, shows details of the quantity and value as per bond Bill of Entry inspite of the quantity and value required as per ex-bond Bill of Entry. For this, the Appraising Officer once again has to be approached and corrections have to be obtained from Superintendent, Bond Department manually. (e) Interest on the Bond Bill of Entry has to be paid against a Challan and is not being recovered directly against the Ex-bond Bill of Entry, as is the case in an EDI Bill of Entry. (c, d & e) It was stated that specific cases of interest recoverable on Ex-Bond B/E should be brought to the notice of the Commissioner of Customs (Imports), Mumbai Custom House so that he can examine these matter. [ Action : The Commissioners of Customs (Imports), Mumbai Custom House] IV. In addition to the above points received for discussion, the following points were raised. (a) Points
by Mumbai Port Trust. It was decided that the Commissioner of Customs (Imports), Mumbai Custom House will co-ordinate with MANSA and JNPT Customs for evolving procedure for such cases. [ Action : The Commissioners of Customs (Imports), Mumbai Custom House] (b) Points
by Mumbai Custom House (ii) It was informed that Member (Customs) Central Board Excise & Customs would be meeting the Trade Associations on 20th August, 2003 at 11.00 hours in the Conference Hall, 2nd flr., New Custom House, Ballard Estate, Mumbai. The said meeting should be attended by 2 representatives each from Bombay Custom House Agents Association (BCHAA) and Mumbai & Nhava Sheva Ship Agent’s Association (MANSA),one one representative from other Trade Associations, who are member of the monthly Open House meeting. “Date and time of meeting has now been advanced to 19th August at 17.00 hours at the same Venue as 20th August is holiday (Janmashtami)” 4. The next meeting will be held on 1st September 2003 at 15.30 hours. Points for the said meeting be sponsored by 22nd August 2003 positively. (
Deepak KUMAR) Copy to: 1. The Chief
Commissioner of Customs, Mumbai Zone-II & Zone-III Copy for information and wide circulation to : |
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