Trade Facilitation Committee Meeting held on 9-11-06

OFFICE OF THE COMMISSIONER OF CUSTOMS (IMPORT)
NEW CUSTOM HOUSE, BALLARD ESTAE, MUMBAI- 400 001

F. NO. PGC/MISC-06/2001 (Pt.) I
Date : 24.11.2006

MINUTES OF THE TRADE FACILITATION COMMITTEE MEETING HELD ON 09.11.2006 UNDER THE CHAIRMANSHIP OF SHRI A.K. PRASAD, COMMISSIONER OF CUSTOMS (IMPORT)

1. A meeting of the Trade Facilitation Committee was held on 09.11.2006 under the Chairmanship of Shri. A. K. Prasad, Commissioner of Customs (Import). The following Members of the Trade, Port and Bank Officials attended the meeting: -

(a)
Shri Naval Mehta
-
BCHAA
(b)
Shri Kiran Rambhia
-
BCHAA
(c)
Shri C. S. Murty
-
MANSA
(d)
Shri L.A.Menzes
-
Bank of India
(e)
Shri P. D. Rathi
-
MbPT
(f)
Shri S. H. Tiwari
-
MbPT
(g)
Shri. Mohan Nihalani
-
AIIEA
(h)
Shri. Jayant Lapsia
-
ALBIEA
(i)
Shri. Uthaya Kumar
-
MbPT.

2. The following officers attended the meeting on behalf of the Department.

(a)
Shri Sunil Jain
-
Addl. Commissioner of Customs (Import)
(b)
Shri Manish Mohan
-
Jt. Commissioner of Customs (Import)
(c)
Shri. B.Rengaraj
-
Asstt. Commr. of Customs, A (G)
(d)
Shri Ajay Kumar
-
Asstt. Commr. of Customs, EDI
(e)
Shri S.S. Bhadoria
-
Asstt. Commr. of Customs, Import
(f)
Ms Firdaus Naik
-
Appraising Officer, A (G)
(g)
Ms. Alex
-
Appraising Officer, A (G)
(h)
Shri U.M.Sapkal
-
NIC

3. The Commissioner welcomed all the members present and confirmed the minutes of the earlier meeting held on 05.10.2006.

4. With regard to Test report Commissioner informed that the details of the Test Report have been incorporated in the Custom House Website. Details in respect of the date of drawal of sample by Docks Staff and also the date of receiving of the text report by group can also be seen on Website. An officer from the EDI Section is being deputed to verify on daily basis that all the fields in Mumbai Customs web site are working properly.
(ACTION: EDI)
5. On points regarding difficulties faced by trade owing to alleged difficult / impractical practices adopted by Shipping Lines, Commissioner informed that frequent meeting with MANSA And BCHAA have resulted in resolution of many issues like Insurance of container by Insurance Companies.
Shri C.S.Murty of MANASA stated that not much progress has been made in respect of certain issues. Commissioner asked him to bring all such cases to his notice.
(ACTION : MANSA, BCHAA)
6. Regarding refunds of revenue deposit by the Import Department the Asstt. Commissioner of Import Noting informed that 850 cases pertaining to 32 parties are pending with Import (Noting) section as NOC from MCD in respect of these are awaited. NOC, IN 2 cases of M/s ACT Shpg. P. Ltd involving Rs. 6000/-, 5 cases of M/s PIL Mumbai P. Ltd involving Rs. 15000/-& 14 cases of M/s Intra Trade P. Ltd. involving Rs. 42,000/-have been received from MCD Section and refund is under process.
Commissioner directed Asstt. Commissioner (Import) to ensure speedy clearnce of refunds cases. He directed to put the refund cases on Website so that progress can be monitored effectively. He further directed Import Department to call for Out Turn report from Deputy Manager Cargo Accounts and sanction refund after taking order from Commissioner. M.C.D.may deal with it later.
(ACTION Import Noting)

7. The issue related to dwell time was discussed in earlier meeting. Commissioner informed that an extensive study is on to explore the possibility to decrease the dwell time that has been substantively decreased in respect of the assessment of B/E.
(ACTION : EDI)

8. Regarding issue related to out of charge of bulk cargo and the gate module Commissioner informed that Implementation has been post poned because D.G.Systems has not yet allowed purchase of PCs because of implementation of Thin client servers.
(ACTION : EDI)

9. Regarding the introductions of new centralized CHA Directory system. Commissioner informed that the Directorate of Systems have had meeting with CHA Association and Director (Customs) on various aspects of this issue. It is learnt that by second week of November this is likely to be implemented at New Delhi and Mumbai.The Directorate of system will also be opening a help center at Mumbai Custom House to sort out any future problem.
Feedback was sought from Shri Naval Mehta of BCHAA about the registration of their members with centralised CHA Director System. He informed that 46 members have still to get themselves registered with centralised CHA Director Systems.
(ACTION: EDI ,BCHAA)

10. In respect of the status information of Bills of Entry through SMS facility Commissioner informed that the tender has been floated in order to start SMS facility so that any importer/CHA can know the present status of the B/E available in ICEGATE. This facility is going to be implemented very soon after completing the formalities of tender.
(ACTION : EDI)

11. With respect to the issue of assessment of Bills of Entry related to “Job work” the matter was discussed with the Commissioner (Export) and it has been decided to allow assessment of all Bills of Entry pertaining to “Job work” in Group VII of Export Commissionerate. Public Notice No 54/06 dated 09.11.06 has been issued in this regard.

NEW AGENDA POINT
12. In the last meeting M/s Indian National Shipowners’ Association (INSA) vide their letter dtd. 13th Sep 06. had raised the issue regarding refund of IGM Revenue deposit of M/s S.K.S. (Ship) LTD. and also of.

i) Deletion of item no from earlier IGM and liaison between EDI Section and MbPT.
ii) Cancellation of bank guarantee bearing no GB26/204 executed for RS. 36 Lakhs by them.
The Commissioner had directed the Asstt. Comm.(Imp noting section )to look in to the matter. Since the representative of INSA did not attend the meeting the issue was not discussed

13. Shri Jayant L.Lapsia of AILBIEA vide letter dated 08.11.06 raised the following issues for discussion
(i) MERCHANT OVER TIME: This issue has been pending for a long time, especially after it was agreed that MOT at Aegis Logistics, Pirpau Terminal would be allowed and accordingly application was made to preventive department long ago.
In this regard Commissioner informed that the matter was discussed with DC (PG) who has stated that no application is pending with them. Commissioner asked Shri. Jayant L.Lapsia to give a copy of the application and relevant correspondence so that he can look into the matter.
(ACTION Shri. Jayant Lapsia)

(ii) OUT OF CHARGE: This issue needs to be resolved IMMEDIATELY, Since, intermittently, we are facing acute problems resulting in nerve wrecking delays. It was agreed in earlier meeting, that, till the issue is finally resolved, out of charge would be given by any of the appraisers from Group 1,2A, Oil Unit of Docks, irrespective of which group the Bill of Entry was assessed, But unfortunately, this is not happening.
Commissioner informed that there appear to be some misunderstanding. No such decision was ever taken. Out of charge can be given by the group where Bill of Entry is assessed. Shri Lapsia said that they are facing the problems in group where there is only 1 appraiser, as the person who has assessed the Bill of Entry cannot give out of charge. Commissioner clarified that in such cases the Trade can take out of charge from Docks. In all other cases the Docks is giving out of charge. Only in case of Bulk Cargo for the convenience of Trade, Public Notice 55 dated.31.08.2004 allow relevant groups to give out of charge also. However the said Public Notice does not prevent the Docks staff to give out of charge. Hence Trade has got the option of taking out of charge from Group or Docks.
(ACTION: DOCKS/ APPRASING GROUPS)

(iii) Out of charges of Ex-Bond Bills of Entry: Since there is no examination nor any other checks required in ex-bond bills of entry, the out- of- charge procedure, after duty payment/ ADF No., should be simplified so that out of charge is given instantly on payment of duty/ADF No as was being done earlier during manual bills of entry era. In earlier days (manual B/Es) the out of charge was given by duty clerk and there were absolutely no delays.
In this regard Commissioner informed that the clerical staff can not be allowed to give out of charge. Out of charge is not just a procedural formality It is the last stage in the assessment of Bill of Entry which is very important as any changes in policy, rate of duty or mistake can be noticed at this stage. Hence it is important that out of charge is given by gazetted officers. However Trade’s request for prompt out of charge may be considered. Commissioner directed Asstt Commissioner. (Bond) to arrange the office timing of the officers accordingly so that at least 1 officer is available at late hours for giving out of charge during rush hours. The problem was mainly on Fridays.
(ACTION : BOND DEPARTMENT)

(iv) Concurrent filling of EX-BOND Bill of Entry immediately after assessment of Warehousing Bill of Entry: This facility was a boon in days of manual bills of entry, the turnaround of incoming consignment increased and there was continuous cash flow of revenue to the department. Under EDI this is just not possible, as Ex- Bond bills of entry can be filed only after out of charge of INTO Bond Bill of Entry is generated. This results in accumulation of stocks and puts pressure on installations, importers, and transporters. Department, service providers and other Please find a viable solution to this issue.
Commissioner informed that until Into Bond Bill of Entry is given out of charge, Ex-Bond Bill of Entry can not be allowed to be filed and assessed because it will not be legally possible as in case of any change in rate of duty or tariff value what shall be the date of Ex-Bond Bill of Entry if the assessment of Into-Bond Bill of Entry is not completed. Therefore Commissioner suggested that in case of bulk cargo the Trade can look for alternative way like filing of 2 or 3 separate Into –Bond Bill of Entry as per their requirement.

14. It was decided that next meeting would be held on 07.12.2006. at 5.00 P.M.

15. The meeting ended with a vote of thanks to the chair.

( NASIM ARSHI )
JOINT COMMISSIONER OF CUSTOMS (IMPORT)
(APPRAISING GENERAL)
MUMBAI


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