Open House Meeting held on 05-03-2003

OFFICE OF THE CHIEF COMMISSIONER OF CUSTOMS
MUMBAI ZONE-I, NEW CUSTOM HOUSE,
BALLARD ESTATE, MUMBAI-400 001.

F.No-. S/I-22(4)/2003 CCO
Date : 07.03.2003


MINUTES OF THE OPEN HOUSE MEETING OF THE CHIEF COMMISSIONER OF CUSTOMS, MUMBAI ZONE-I, II & III HELD WITH REPRESENTATIVES OF THE TRADE AND ASSOCIATION ON 05.03.2003 AT 3.30P.M. IN THE CONFERENCE HALL OF MUMBAI CUSTOM HOUSE.

The Open House meeting for this month was held under Shri Subrata Basu, Chief Commissioner of Customs, Mumbai Zone-I, Shri Joseph Domine Chief Commissioner of Customs, Mumbai Zone-II, Shri C.Sen, Chief Commissioner of Customs, Mumbai Zone-III on 05th March, 2003 in the Conference Hall, 2nd flr, New Custom House, Ballard Estate, Mumbai.

The following officers were present from the department :
1. Shri K. K. Agarwal, Commissioner of Customs (General), Mumbai Custom House.
2. Shri Shishir Kumar, Commissioner of Customs (Export Promotion), Mumbai Custom House.
3. Shri Ahmed Hussain, Commissioner of Customs (Import), Mumbai Custom House.
4. Shri N.K. Bhujal, Commissioner of Customs (Export Promotion), Nhava Sheva Custom House.
5. Shri K.M. Tiwari, Commissioner of Customs (Export Promotion), Air Cargo Complex
6. Shri Y.G. Parande, Commissioner of Customs (Import), Air Cargo Complex.
7. Shri M.C. Thakur, Commissioner of Customs, Chhatrapati Shivaji International Airport.
8. Shri Deepak Kumar, Additional Commissioner of Customs, CCO, Mumbai Custom House.
9. Shri C.M. Sharma, Additional Commissioner of Customs, CCO, Mumbai Custom House.
10. Shri Jai Prakash, Additional Commissioner of Customs (Export Promotion), Nhava Sheva Custom House.
11. Shri Rakesh Sharma, Additional Commissioner of Customs (EDI), Mumbai Custom House.
12. Shri Hemant Bhat, Joint Commissioner of Customs (General), Mumbai Custom House.
13. Shri V.K. Verma, Joint Commissioner of Customs (Export Promotion), Mumbai Custom House.
14. Shri O.P. Khanduja, Joint Commissioner of Customs (Imports), Mumbai Custom House.
15. Shri R.D. More, Asstt, Commissioner of Customs, CCO, Mumbai Custom House.

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

1. AHEA (All India Importers & Exporters Association).
Shri Mohan Nihalani

2. BCHAA (Bombay Custom House Agent’s Association).
Shri Naval H. Mehta
Shri Mark S. Fernandes
Shri Bharat M. Shah
Shri R. Radhakrishnan
Shri Vijay Desai
Shri H.D. Mehta
Shri Nimish Desai
Shri Sorab P. Engneer
Shri Pankaj Shah

3. FIEO (Federation of Indian Exporter Organisation).
Ms. Shyamali Banerjee
Shri Gulam Mohd.

4. All India Manufacturer’s Organisation.
Shri Arvind Tibrewala

5. Dyestuff Manufacturer’s Association of India.
Shri S. Srinivasa

6. TATA GROUP
Shri Rajendran Nair

7. Confederation of Indian Industries.
Shri S.K. Kini

8. Bombay Chambers of Commerce & Industries.
Shri Pravin Kanakia.

1. 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 03.02.2003 were read and these have been taken as correctly recorded.

I. Points raised by : All India Importers & Exporters Association:
(a) Based on the Board’s Circular No. 8/2003-CUS and Circula r No. 9/2003-CUS dated 17th February, 2003 Public Notice be issued and the provisions of the Circular No. 9/2003-CUS dated 17.02.2003 may also be extended pari-passu, to export under DEPB Scheme when composite items are exported.

It was I nformed the Public Notice is being issued based on the aforesaid Circulars and in so far as extension of the provisions of Circular No. 9/2003 dated 17.02.200. to export under DEPB Scheme is concerned, it was explained that under DEPB Scheme the DEPB benefit would be admissible on the export of composite product including assembled product having more than one constituent items for which DEPB rates are individually fixed. In such cases the DEPB entitlement would be restricted to the lowest of the rate applicable to the constituent items ignoring the rate of the constituent items(s) having weight less than 5% of the total net weight of such product. However, no DEPB benefit would be admissible on the export of such product, if any constituent items(s) is weighing more than 5% of the total net weight (of the product) and does not have any DEPB rate fixed. Hence it would not be possible to extend the provisions of the Circular No. 9/2003-CUS dated 17.01.2003 to export under DEPB Scheme.

(b) Exporters are being blacklisted by DGFT even when their documents are pending with Customs for Audit. Therefore proper mechanism needs to be involved for requisite co-ordination between Customs and Zonal DGFT to avoid such unnecessary blacklisting.

The Committee formed in pursuance to the Open House meeting held on 25.11.2002 for DEEC logging needs to be continued even after the Board’s instruction for logging of DEEC book have received so as to induce the element of accountability.

It was explained that the issue of blacklisting of exporters should be taken up with the Zonal DGFT with suggested that as and when the exporter in reply to the notice issued to him for blacklisting states that his DEEC book is pending with Customs for Audit, the Zonal DGFT should take up the matter with the Customs
It was further explained that after receipt of Ministry’s instructions dated 27.11.2002 on logging of DEFC book, a doubt has araisen and therefore reference have been made to the Ministry of logging of VABAL DEEC Book. In the meantime if any exporter has problem about logging of DEEC Book or his blacklisting by DGFT, such exporter can meet Shri Rajendra Singh, Joint Commissioner of Customs (Export Promotion) in Mumbai Customs House and Shri S.K. Singh, Joint Commissioner of Customs (Export Promotion) in Nhava Sheva Customs House between 3 to 4 p.m any day. It was further decided that there is no need for revival of the Committee formed in pursuance of Open House meeting held on 25th November,2002.
Action : The Joint commissioner of Customs (Export Promotion). Mumbai Customs House, The Joint Commissioner of Customs (Export Promotion).
Nhava Sheva Customs House

II. Points raised by Bombay Custom House Agent’s Association.

(a) Duty Free Replenishments Certificates (DFRC) is issued by DGFT in USD and also in Indian Rupees. Customs have systems to debit the Value of the said license Indian Rupees only and hence exporter losses the quantity in the license.

It was explained that in Nhava Shiva Customs House, where such documents are dealt with manually. Debiting of DFRC is done in US S at the exchange rate and cited in the certificate whereas in the Mumbai Custom House, it is being debited in Indian Rupees, After deliberation it was decided that the Duty Free Replenishments Certificate Would be decided in US S only and therefore Mumbai Custom House should take up the matter with System Directorate, so that such Certificate could be debited in US S.

[Action : The Commissioner of Customs (General), Mumbai Customs House]

(b) It is repeatedly brought to the notice of the officer concerned that the EDI systems. At MOD, STP and Fair Basin and frequently break down, resulting the officers and our staffs have to run from one points of the work center to other. Thus resulting the delay in delivery of the consignments. The same is situation at Nhava Sheva also.

It was explained that Mumbai Customs House EDI System was working on Mumbai port Trust. In the mean while the EDI system connectivity at the Dock has been made operational on the Radio Link The Radio Link Connectivity is disrupts in the EDI system due to abrupt variation in atmospheric condition, magnetic forces and requires certain times for reconnection. These problems are temporary one till full fledged mechanism of fiber optic cable connectivity is established. It was further explained that 2 months printout of failures of the EDI connectivity at the Dock Indicates that times taken for rectification has been between 30 to 60 minutes. It was further decided that the Additional Commissioner of Customs (EDI), Mumbai Custom House should monitor this on regular basis.

[Action : The Additional Commissioner of Customs (EDI), Mumbai Custom House]

(C) Examination of 100 % Export cargo for Sensitive Port.
Whenever Examination of Cargo for Sensitive port are examine by EO the same is examine 100% and sample and or Shipping Bill are forwarded to the DC (DOCKS), who once again the additional package no. for examination. This results in delay in Shipments.
We therefore suggest that CBEC circular No 6/02 dated 23.01.2002 be implemented in true sense.

It was explained that Board’s instructions dated 13.01.2003 have been received wherein it has been clarified that the instruction regarding the scale of physical examination as contained in Board’s circular No 6/02 dated 23.01.2002 should be followed instead of 100% of the examination of the consignment under export incentive scheme exported to sensitive destination. The concerned Commissioners would issue the Public Notice, if not already issued.

[Action : The Commissioner of Customs (Export Promotion),
Mumbai Custom House, Nhava Sheva Custom Hose & Air Cargo Complex]

III. In addition to the above points received for discussion the following points were raised,

(a) Shri Mark S. Fernades, president of the Bombay Custom House Agent’s Association requested for clarification as to the date from which the interest on warehoused goods would be 15%
Clause (ii) of sub section of section 61 of Customs Act. 1962 has been reduced to 15% per annum w.e.f March, 2003. [Notification No 18/2003-CUS (NT) dated 01.03.2003]

(b) The Bombay Custom House Agent’s Association and All India Importers & Exporters Association stated that Steamer Agents do not take proper care in filing the complete Import General Manifest as a result the importer has to suffer by way of demurrage and therefore steps may be taken by the Customs so as to ensure that full and complete Import General Manifest is filed by them.

After deliberation it was decided that the Commissioner of Customs (Imports), Mumbai Custom House should hold a meeting of MANSA and The Bombay Custom House Agent’s Association & All India Importers & Exporters Association on this issue to sort out the problem.

[Action : The Commissioner of Customs (Imports),
Mumbai Custom House]

(C) Shri S.K. Kini of Confederation of Indian Industries stated that there is doubt about the concessional rate of 9% duty prescribed under item. No. 92 (Helical/Spiral C.T. Scanner with Laser Camera and accessories) of List. 17 to Sr. No. 363 of Notification No 21/2002-Cus dated 01.03.2002 read with Notification No. 26/2003-Cus dated 01.03.2003.

It was decided that Shri. S.K.Kini should give details note on the issue to
the Commissioner of Customs (Imports), Mumbai Custom House for clarification in the matter.

[Action : The Commissioner of Customs (Imports), Mumbai Customs House]

iv. The Chief Commissioner of Customs, Mumbai Zone-1 In addition to the

above points observed that :

(a) Public Notice No. 25/03 dated 04.03.2003 has been issued by the commissioner of Customs (General), Mumbai Custom House informing the trade that up to date status of B/E S/B and Drawback claim, including text and nature of queries in available online by logging to Mumbai Custom House Website by going through the “Trade facilitation Folder” . the details of B/E or S/B will also informed that as Trade Facilitation measure the minutes of the Open House is being placed on the Mumbai Customs House Website and minutes of last Meeting held on 03.02.2003 is already available on its Website.

Lastly the Chief Commissioner of Customs Mumbai Zone I thanked all the officers and members present for their co-operation and active participation.

The next meeting will be held on 7th April 2003 at 15.30 hours. Points for the said meeting be sponsored by 27th March 2003 positively.

(DEEPAK KUMAR)
Addl. Commissioner of Customs/CCO
New Custom House, Mumbai Zone-I.

Copy to :

1. The Chief Commissioner of Customs, Mumbai Zone-II.
2. The Chief Commissioner of Customs, Mumbai Zone-III.
3. All Commissioner of Customs, Mumbai Zone-I, II & III.

Copy for information and wide circulation to :

 


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