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Open
House Meeting held on 06-02-2003
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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 & iii HELD WITH REPRESENTATIVES OF THE TRADE ASSOCIATION AND THE BOMBAY CUSTOM HOUSE HOUSE AGENTS ASSOCIATION ON 03.02.2003 AT 4.30 p.m. IN THE CONFERENCE HALL OF MUMBAI CUSTOMS HOUSE. The Open House meeting for this month was held under the Chairmanship of Shri Subrata Basu, Chief Commissioner of Customs, Mumbai Zone -I, on 03rd February, 2003 in the Conference Hall, 2nd flr., New Custom House, Ballard Estate, Mumbai. The following officers were present from the department: Shri Joseph
Dominic, Chief Commissioner of Customs, Mumbai Zone-II. 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.ASSOCHAM 3.
BCHAA (Bombay Custom House Agent’s Association) 4.FIEO
(Federation of Indian Exporter Organisation) 5.TATA
GROUP 6.
CWC (Central Warehousing Corporation) 7.
Confederation of Indian Industries 8.
Maharashtra Chamber of Commerce & Industries 9.Dyestuff
Manufacturer’s Association of India 10. IMC
(Indian Merchant Chambers) 11.All
India Manufacturer’s Organisation 13.All
India Yarn Importer’s Association 14.
Bombay
Chambers of Commerce & Industries The Chief Commissioner of Customs, Mumbai Zone -I welcomed all the members of the trade and industry and Bombay Custom House Agents Association. The minutes of the meeting held on 25th November, 2002 were read out and this was found to have been correctly recorded. The representatives of the trade, industry and CHAs Association raised the following points. (I).
Points raised by Bombay Custom House Agents Association Shri Mark S. Fernandes, President of the Association, stated that there is lack of uniformity in three Customs Zone at Mumbai in following the provisions of EPCG Scheme as some of the officers do not feel bound by the public notice issued by the erstwhile Mumbai Customs Zone and therefore take different view in following the EPCG provisions. It was clarified to them that all public notice issued before the trifercation of Mumbai Customs Zone would be mutatis - mutandis applicable even after its trifercation and all the officers in the present three Zones are bound to follow the same. If any officer takes a view different than what has been indicated in the public notice, the same should be brought to the notice of the concerned Commissioner of Customs. It was further stated that areas of non-uniformity, if any, should be identified by the association and submitted to the Chief Commissioner of Customs, so that suitable action, as deemed fit, may be taken. In this context it was mentioned that the presence of all 3 Chief Commissioner of Customs (Zone I, II & III) in this Forum is indicative of our desire to have a common approach to any common procedural problem. [ Action : Bombay Custom House Agent’s Association ] (b)
Lack of infrastructure facility at several CFS licenced at Nhava Sheva The Chief Commissioner of Customs, Mumbai Zone II indicated that basic infrastructure facilities are good enough at GDL and Mersk CFS while CWC- Container Freight Stations lack basic civic ammunities. It was therefore indicated by him in the meeting to the representative of the CWC that he should provide all basic civic ammunities by 31st March, 2003. As regards CFS owned by Punjab Conware, the Chief Commissioner of Customs stated that he is yet to receive their response and is therefore not able to comment on the facilities available at their end. [Action : Central Warehousing Corporation] (c)
Bonded warehouse at CFS Mulund and proposed Bonded warehouse facility
of Mb.P.T. is lying idle due to non-deployment of preventive staff. It was explained by Commissioner of Customs (General) that initially Department was insisting for cost recovery for preventive staff consisting of Superintendent, Preventive Officer, and Sepoy, to be posted at CFS Mulund Bonded warehouse and therefore the problem was being faced. However to mitigate the difficulties of the trade, it has been decided that cost recovery for preventive staff will be towards Preventive Officer and Sepoy and not for Superintendent. He further informed that after these arrangements, the trade is not facing any problem. As regards preventive escort within same Bonded premises of CFS Mulund, it was decided that in so far movement of cargo is within the Bonded premises of CFS Mulund, no preventive escort will be required as is the practice followed in Nhava Sheva Custom House. Non Finalisation of Project import in Contract Cell leading to blockage of heavy sums in the form of Bank Guarantees/Deposits by importers: It was stated that due to non finalisation of Project import cases in Contract Cell, cases as old as 8 to 10 years are pending finalisation and therefore the importers, who have fulfilled all the conditions specified in the regulation, are compelled to block heavy sums in the form of Bank Guarantees/Security Deposits. The Commissioner of Customs (Imports) Mumbai Customs House explained that he is seized of the issue and have therefore recently posted a full time Asstt. Commissioner and one more Appraising Officer to look after the pending Project import cases. Looking to the volume/size of the problem, it was decided that Shri O.P. Khanduja, Joint Commissioner of Customs (Imports), Mumbai, incharge of Contract Cell, will be meeting the importers who have already submitted the reconciliation statement in the Contract Cell and whose cases are still pending finalisation, between 4 to 5 p.m. every day alongwith his Dy. Commissioner of Customs. The representative of the associations were requested to avail this facility so that steps could be taken by the Department in finalising at least those cases where reconciliation statement have already been submitted. Further the Commissioner of Customs (Imports) Mumbai Custom House informed that in the recent Watch Dog meeting, it has been explained by him that one of the requirement of Project import cases is plant site verification and the same can not be dispensed with. Plant Site inspection however could be done by jurisdictional Central Excise authorities. Shri.Rajendran Nair of Tata Group stated that he has already submitted his suggestions on behalf of the trade relating to Project import cases to the Commissioner of Customs (Imports), Mumbai Customs House, as decided in the Open House meeting held on 25.11.2002. It was therefore concluded that the Commissioner of Customs (Imports) Mumbai Custom House will take appropriate action on the suggestions made by Shri Rajendran Nair. [ Action : The Commissioner of Customs (Imports) & The Joint Commissioner of Customs (Imports), Mumbai Custom House ] Customs is granting factory-stuffing permission for export cargo only for 6 months instead of one time permission: Shri Mark S. Fernandes, President of Association stated that in the past the factory stuffing permission for export cargo used to be given by the Department only once as the order itself indicated that permission is valid till further orders. However in recent past the Department has started the practice of granting factory-stuffing permission for 6 months only. The Chief Commissioner of Customs, Mumbai Zone III stated that in the past, on enquiry, number of EOUs were found to be non-existent and therefore need arose for verification of the existence of the unit before such permission can be granted and hence the Department is now verifying existence of the unit before granting such factory stuffing permission. He also explained that such factory stuffing permission are subject to various conditions. One of which is detailed examination report. He further explained that Board has also prescribed detailed proforma for examination of goods in factory stuffing cases. Therefore after deliberations it was decided that wherever factory stuffing permission is granted, after verification of existence of the unit from Central Excise authorities, the permission shall be granted without time limit i.e. it will be one time permission and said permission will be valid till further orders. Shortage of Appraising staff in various Groups in Mumbai Customs, CFS Mulund & Dronagiri. The Commissioner of Customs (General) explained that there was shortage of Appraising staff in various Groups in different places due to mass scale promotion on account of Cadre Restructuring. However the said problem was only transitional and same is not being faced now as promotion has taken place in all cadres including to Appraising Staff. II.
Points raised by All India Importers & Exporters Association Shri Mohan Nihalani, President of the Association stated that a Standing Orders issued by the Chief Commissioner of Customs Mumbai regarding valuation of Polymers, Polyester Filament Yarn etc. is leading to harassment and corruption and is totally devoide of the parameter under GATT Valuation Rules and therefore need to be withdrawn forthwith. It was explained that said Standing Order No. 7514 dated 4th February 2000 for valuation of Polyester Filament Yarn etc. was issued by the Chief Commissioner of Customs, Mumbai in February, 2000 as reference points only. However Department is agreeable to the trade proposal to review the said Standing Order. The Chief Commissioner of Customs Mumbai Zone I further stated that so long the transaction value is not artificial, the trade should not be afraid at all for its non-approval. Shri Ramakant Kanodia of All India Yarn Importer’s Association stated that said Standing Order was issued about three years back when the petroleum prices were totally different than what it is today. He further stated that he is willing to provide prices of various types of yarn prevailing in international market on monthly basis. The Chief Commissioner of Customs enquired as to what will be the effect of withdrawal of said Standing Order on revenue. Shri Kanodia stated that revenue would definitely increase after withdrawn of the standing order as it would reduce the temptation of clearance of this item by 100% E.O.U. for possible diversion in domestic market. It was therefore decided that Shri Kanodia should submit a letter accordingly to the Commissioner of Customs (Imports), Mumbai Customs House, Mumbai so that the matter could be examined further. [ Action : The Commissioner of Customs (Imports), Mumbai Customs House, Mumbai & All India Yarn Importer’s Association ] Blacklisting of exporters without any opportunity being given to them to explain their position. Shri Mohan Nihalani, President of the Association, stated that many times exporters are being blacklisted when their DEEC files are pending with Customs for audit. This is most most unfair and totally against any cannon of natural justice and law. He therefore requested that arbitrary blacklisting be forthwith discontinued. It was stated that DGFT the blacklists the exporters after following the due process of law and if in any particular case they had blacklisted the exporter when their documents were pending with Customs for audit, on request of the exporter, letter is issued by Customs to the DGFT for re-consideration of the issue and DGFT generally de-list such exporters from blacklist. It was further explained that on the basis of the blacklisting done by DGFT, Customs is taking follow up action as recommended by them as it has no other option. Shri Nihalani stated that a Committee was formed in pursuance to the Open House meeting held on 25.11.2002 for DEEC logging but unfortunately the Committee has not met so far. It was explained to him that after the Committee was formed instructions were received from the Board for logging of the pending DEEC books on the basis of original S/B, Bank realisation certificates and test report and accordingly a Public Notice was issued by the Commissioner of Customs (Export Promotion) Mumbai Custom House on 14.01.2003. Since the Committee could not go beyond the instructions issued by the Board, it was decided that no useful purpose will be served in holding any meeting of the Committee. The Commissioner of Customs (Export Promotion) Mumbai Custom House further explained that a Public Notice and Standing Order will be issued shortly for logging of the DEEC books, which will solve most of the problems faced by the trade. III.
In addition to the above points received for discussion the following
points were raised (b) It was stated that in in respect of food products and pharmaceuticals. Bureau of Indian Standard certificates is required to be submitted for clearance and pending its submission the goods be allowed to be warehoused. After discussion on the issue it was decided that the Commissioner of Customs (Imports), Mumbai Custom House and the Commissioner of Customs (Imports), Nhava Sheva Customs, in consultation with each other, should examine this issue and take appropriate action for warehousing of such goods. [
Action : The Commissioner of Customs (Imports), Mumbai Custom House &
IV. The
Chief Commissioner of Customs, Mumbai Zone I in addition to the above
points observed that [ Action : The Commissioner of Customs (General) ] (b) Dr. Kelkar Committee has recommended sharing of merchant overtime wherever number of importers/exporters are availing the service of an officer at same point of time and therefore in order implement the said recommendation the Department has to provide procedure for implementation. He therefore requested the Bombay Custom House Agents Association to go through these recommendation and submit draft procedure providing for sharing of merchant overtime so that the same could be discussed and adopted by the Department.
[ Action : Bombay Custom House Agents Association ] 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 5th March 2003 at 15.30 hours.
Copy to: The Chief
Commissioner of Customs, Mumbai Zone-II. Copy for information and wide circulation to : 1. AIIEA
(All India Importers & Exporters Association) |
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