11/03/2014 - mumbaicustomszone1.gov.in

OFFICE OF THE CHIEF COMMISSIONER OF CUSTOMS,
MUMBAI ZONE – I, NEW CUSTOM HOUSE, MUMBAI
F NO.S/I–22(02)/2013-CCO-I Pt.I
DATE: 03.04.2014
Minutes of the Open House Meeting held on 11.03.2014.
An Open House Meeting was held on 11.03.2014 under the Chairmanship of Shri
A.K.Kaushal, Chief Commissioner of Customs, Zone I, Shri C.S. Prasad, Chief Commissioner of
Customs, Zone II and Shri B.S.Vasudev, Chief Commissioner of Customs, Zone III in the
Conference Hall, 2nd Floor, NCH, Mumbai Zone- I.
2.
3.
4.
From the department side, the following officers attended the meeting.
(i).
Shri Roopam Kapoor, Commissioner of Customs (Export), ACC, Mumbai
(ii).
Shri. H.B.Negi, Additional Commissioner of Customs, CCO, Zone I
(iii).
Shri Pankaj Bodke, Additional Commissioner of Customs, CCO, Zone II
(iv).
Shri Rajiv Magoo, Assistant Commissioner of Customs, CCO, Zone I
The following attended the meeting from the trade side.
Sr. No.
Name (Mr/Ms)
Company/Designation
1
Mohan Nihalani
AIIEA
2
Bala Iyer
ACAAI
3
Pankaj Shah
BCHAA
4
Mark S.Fernandes
Indian Merchants Chamber
5
Rajesh Gosalia
H T Shah & Co.
6
Sorab P.Engineer
BCHAA
7
C.S.Murty
MANSA
8
K.Srivastav
IDMA
9
Omprakash Agarwal
BCHAA
10
Rajiv Gupta
Individual/Member of Public
11
Shakti Pillai
Srishan Agencies Pvt. Ltd.
12
Nimish Desai
N.H.Desai & Co.
13
Joseph Tharkan
Cargo Concept Pvt. Ltd.
14
Leena Ganguly
Leena Forwarders
15
Deepak Thakkar
16
B.Ganguly
S.M.C.Pvt. Ltd
17
Ketan Sejpal
BML Logistics Pvt. Ltd
18
Yogesh S. Thacker
S.J.Thacker F.F.Pvt. Ltd
Shanti Shipping Agencies Pvt.
Ltd.
At the outset, Shri A.K.Kaushal, Chief Commissioner of Customs, Zone I, Shri C.S.
Prasad, Chief Commissioner of Customs, Zone II and Shri B.S.Vasudev, Chief Commissioner of
Customs, Zone III welcomed all the trade members. Thereafter, action taken on Minutes of
meeting held on 27.11.2013 was taken up for discussion as mentioned below:-
1
4.1
Updating of customs website
[Please refer to Point 4.3 of minutes of last meeting dated 27.11.2013]
(i)
E-MAIL ID & Fax No. of officers posted at JNCH and ACC should be provided on
their respective website:Shri Rajiv Gupta had raised a point vide his E-Mails dated 28.08.2013 and 05.11.2013
that the fax numbers on the JNCH as well as the ACC website are missing and E-mail IDs of the
responsible officials having interface with the users should be provided. Shri H.B.Negi,
Additional Commissioner of Customs had informed in the last meeting dated 27.11.2013 that
the fax numbers and e-mails IDs of the officers posted in Zone-I have been uploaded on the
Mumbai Zone-I’s website. Shri Rajiv Gupta vide letter dated 28.12.2013 again pointed out that
the ACC website still does not contain the e mail IDs of all the officials dealing with the users in
the course of their duty and the same is true of JNCH.
Shri H.B.Negi, Additional Commissioner of Customs informed that fax numbers and EMail IDs of the officers have been uploaded on the respective websites of Mumbai Zone –II and
Air Cargo Complex.
(Issue resolved and point closed)
(ii)
Linking/list of rescinded Public Notice on JNCH/NCH/ACC’s websites:-
Shri
S.P.Engineer of BCHAA during the last meeting dated 29.11.2013 had enquired about progress
made with regard to his point raised in earlier meeting dated 25.09.2013 that if a Public Notice
has mention of earlier public notice no., then the said earlier public notice should also be
enclosed/displayed with new Public Notice for ease of reference.
BCHAA vide their letter dated 09.01.2014 by citing an example stated that information
for submission of first time exporters is detailed in JNCH Public Notice No.58/2009 and
subsequently elaborated upon in Public Notices No. 23/2010 and No. 55/2012 and if one only
reads Public Notice No. 58/2009, where there is no reference about the subsequent Public
Notice No. 23/2010 and 55/2012 which resulted into many delay caused by confusion and on
account of non-compliance and it has been requested that in the case of Public Notices being
changed, the earlier ones may be listed as rescinded, or on these Public Notices posted on the
website a mention be made to refer to subsequent Public Notices issued.
Shri H.B.Negi, Additional Commissioner of Customs informed that the issue has been
taken up by the EDI, New Custom House, Mumbai and they are identifying the rescinded Public
Notices and in the process of updating the same on the website.
(Action: Additional Commissioner (EDI) New Custom House, Mumbai, Air Cargo
Complex, Mumbai and JNCH, Nhava Sheva)
4.2 POINTS RAISED BY SHRI RAJIV GUPTA VIDE E-MAILS DATED
28.08.2013,
13.09.2013 and 05.11.2013.
4.2.1 Payment of Drawback to the exporters in 30 days or pay interest if the Drawback is
held for more than 30 days:[Please refer to Point 5.1 of the minutes of last meeting dated 27.11.2013 and Point
5.7(B) of meeting dated 25.09.2013]
Shri Rajiv Gupta pointed out that as per Rule 13 of the Customs, Central Excise Duties
& Service Tax Drawback Rules, 1995, interest is payable in all cases where the Duty Drawback
payment has not been made within 30 days. He pointed out that sending a scroll to the bankers
does not suffice as it is seen that actual credit in respective accounts of Exporter is delayed
therefore the bankers should be asked to ensure that the credit is disbursed the day the scroll is
2
given to them by customs or the next day i.e. a service standard is set. He also suggested that
Auto e mail solution of informing the exporter about any deficiency needs to be implemented or
information given through the BIN.
Shri C.S.Prasad, Chief Commissioner of Customs Zone II in the last meeting dated
27.11.2013 informed that Shri Rajiv Gupta submitted details of two exporters M/s. Gemini
Exports & M/s. Polydrug Laboratories P. Ltd with reference to payment of interest in respect of
delayed duty drawback. He further informed that the issue was examined and it is observed that
there was significant difference in the date of credit of the drawback amounts in the account of
the Exporters and the scroll dates, therefore, information was called from the Exporters; in reply
exporters have informed that they are not in a position to provide the information as the
department has already got the required information therefore, a letter has been sent to the
Bank to get the said information so that necessary action could be taken.
Shri C.S.Prasad, Chief Commissioner of Customs Zone II also informed that the Bank
has been instructed to ensure that the drawback amount should be transferred to the Exporter’s
account latest by the next day and the Bank has assured that the same will be implemented. It
was further informed that Auto e-mail solution of informing the exporter about deficiency is not
feasible and it was suggested that the current status of S/Bills is available on Icegate Website
and it may be verified from the said website.
Shri B.S.Vasudev, Chief Commissioner of Customs, Zone-III observed that local
issues/individual grievances should not be raised at this forum. He urged Members of Trade to
raise such points in PTFC Meeting first and unresolved issues of larger interest should be raised
in Open House Meeting.
(Issue resolved and point closed)
4.2.2 Serious problems arising in the release of LUT/BGs after the completion of the
export obligation:
[Please refer to Point 5.4 of the minutes of last meeting 27.11.2012 dated and minutes of
meeting dated 25.09.2013]
Shri Rajiv Gupta raised the point of problems in release of LUT/BGs after completion of
export obligation by specifically pointing out the case of Encube Ethicals P. Ltd., Mumbai at
JNCH, Nhava Sheva.
Shri Rajiv Gupta vide E-Mail dated 05.11.2013 also raised a point that in 95% of the
cases, the BG/LUT release should be automatic without calling for any documents as per the
CBEC circular and he also pointed out that CHAs/exporters have to visit to the concerned office
to locate the files.
Shri B.Ganguly of S.M.C.Pvt. Ltd raised a point that their 8 BGs are pending for last 8-10
months.
Shri C.S.Prasad, Chief Commissioner of Customs Zone II had informed in the last
meeting dated 27.11.2013 that Department carries out verification on random basis in 5% of
cases only and the rest 95% EODC are automatically closed without scrutiny/verification; the
selection of 5% cases for random verification is based on certain risk parameters; the details of
same are incorporated in a Public Notice and put on website every month.
Shri A.V.Rajguru, Asstt. Commissioner of Customs, CCO Zone-II in the last meeting
dated 27.11.2013 informed that there were total 19 licences of M/s. Encube Ethicals Pvt. Ltd
pending for bond cancellation; on submission of required documents 18 out of the 19 licences
3
were cancelled without any delay and the remaining one licence no. 0310574858 dt. 18.05.2010
was also cancelled after verification.
Shri C.S.Prasad, Chief Commissioner of Customs Zone II, informed that they are
receiving very less EODC from DGFT; in month May,2013, only 11 EODC’s were received from
DGFTs against 157 EODCs from CHA/Party and in subsequent months also they received very
less EODC from DGFT; in June, 52 EODCs from DGFT and 226 EODCs from CHA/Party; in
July, 36 from DGFT and 149 from CHA/Party; in August, 12 EODCs from DGFT and 192
EODCs from CHA/Party; in September, 8 from DGFT and 192 EODCs from CHA/Party. He
further informed that only 5% cases are selected for verification and details of the selection is
uploaded on website by issuing a public notice.
Shri Rajiv Gupta raised a point that as per rules EODCs are dispatched by DGFT to port
of registration through registered post then why the EODC submitted by CHA/Party are
accepted and BG/LUTs are released.
In this regard, Shri Pankaj Bodke, Addl. Commissioner of Customs, CCO Zone-II
informed that Bond/BG/LUTs in respect of the EODCs which are received through CHA/Party
are cancelled only after due verification from DGFT. All the Members of Trade also expressed
their satisfaction in present practice and stated that it is a trade facilitation measure and should
be continued.
Shri B.S.Vasudev, Chief Commissioner of Customs, Zone-III observed that this point is
being raised again and again by Shri Rajiv Gupta and action has been taken by the Department
on the particular case hence, it was decided by the House to close this Point.
(Issue resolved and point closed)
4.2.3
Payment of Duty Drawback by converting Brand Rate S/B into AIR S/B:
[Please refer to Point 5.5 of minutes of last meeting dated 25.09.2013 and Point 5.7 (B)
of minutes of meeting dated 25.09.2013]
Shri Rajiv Gupta raised a point that there is no difference of requirement of documents
under All India Rates and Brand Rate cases except that in case of Brand Rate cases, the Brand
Rate letter has to be given. Secondly, in case of EDI S/Bs there is no document required to be
filed by the exporter to get the duty drawback amount; why the payment of duty drawback is
held back illegally once the exporter has made the request for conversion.
Shri Roopam Kapoor, Commissioner of Customs (Export), ACC, Mumbai, informed in
the last meeting that reply has already been sent to exporter vide letters dtd.18.11.2013 &
25.11.2013 and copies of letter were also forwarded to DC/Export Shed and DC/Export
Assessment for necessary conversion in this regard. He further informed that the party has till
date not submitted the relevant documents, however, as per party’s request the same is being
processed for which necessary action like (a) amendment of shipping bill by competent
authority, (b) retrieval of shipping bill by concerned officer and then, subsequently, sanction of
drawback as per the queue in the EDI System needs to be undertaken and is in the process.
Shri Roopam Kapoor, Commissioner of Customs (Export), ACC, Mumbai now informed
that after conversion of the shipping bills from Brand rates to All Industry rates, the drawback
amount under All Industry rates rate have been disbursed.
(Issue resolved and point closed)
NEW POINTS
5.
Shri Rajiv Gupta vide E-Mail dated 28.12.2013 has sponsored several points however it
was observed that most of the points were already discussed and resolved in present meeting
4
and in the previous meetings dated 25.09.2013 and 27.11.2013. The following points which
were either resolved in previous meetings or discussed at length in this meeting in foregoing
paras were not taken up for discussion again and it was decided by the House to close these
points.
i)
Updating of customs website
ii)
Payment of Drawback to the exporters in 30 days or pay interest if the Drawback
is held for more than 30 days
iv)
Serious problems arising in the release of LUT/BGs after the completion of the
export obligation
v)
Payment of Duty Drawback by converting Brand Rate S/B into AIR S/B
vi)
Non transmission of DEPB S/Bs to DGFT for claiming DEPB entitlement
vii)
Abuse of official position and perpetuation of wrongs continues in FMS
verification even after taking up the matter with the Commissioner of Customs
(Export), ACC, Mumbai
viii)
Non acceptance of letter by the ACC officials
ix)
Procedure for the conduct of Open House
Point sponsored by Shri Laxmichand Shah:6.
Customs is not taking part in joint survey in case of the RMS facilitated Bill of
Entry where shortage of goods is noticed at the time of delivery of goods.
Shri
Laxmichand Shah raised a point that Bill of Entry is assessed under RMS and Duty is paid
before Bill of Entry is presented to the Shed Appraiser / Superintendent for following the
examination order. In case of FCL consignment, Container is not opened and Out of Custom
Charge is given and in such case, either delivery is taken along with the Container or Goods are
destuffed in CFS for taking loose / break bulk delivery in trucks. While destuffing the packages,
shortage is noticed and therefore joint survey is conducted in presence of CFS / Insurance and
Shipping Agent. Customs refuses to participate in holding such survey stating that once Out of
Charge Order is given, job of Customs is over. If Customs Survey is not held, importers will not
get refund of Duty. It is suggested that in case of RMS assessment, if shortage is noticed while
taking delivery in CFS / Docks / Bond W/H, DC(in charge of shed ) should permit Custom
Survey and issue an Examination Report Certificate showing details of Goods missing including
Value, Duty so that same can be attached with Application for Refund of Duty. In no
circumstances, Customs can recover duty for the Goods not delivered to the importers.
Shri Pankaj Bodke, Addl. Commissioner of Customs Zone II informed that in RMS
facilitated Bill of Entry, inspection of the container no. and seal no. is carried out and on tallying
both with the details declared in Bill of Entry, out of charge is given without examination of the
goods hence any shortage noticed by the importer after OOC, Customs has no role to act on
such issues. Shri C.S.Prasad, Chief Commissioner of Customs, Zone-II asked Shri Pankaj Shah
of BCHAA to raise this issue in PTFC Meeting.
(Action:
Shri Pankaj Shah, BCHAA to raise in PTFC meeting at JNCH, Nhava
Sheva)
7.
Points sponsored by Shri Bala Iyer of ACAAI:-
7.1
EDI linkage of Customs and Central Excise:- Shri Bala Iyer raised
a point that
Customs and Central Excise being from the same ministry are not linked by EDI like banks,
5
DGFT etc and once linked, requirements for ARE documents and 'proof of export documents'
should be done away with.
Shri C.S.Prasad, Chief Commissioner of Customs, Zone-II informed that they have taken
up this issue with DG System for action at their end. Shri H.B.Negi Additional Commissioner of
Customs informed that DG(System) is already working on the project to connect both the
department and which is likely to be completed soon.
(Issue resolved and point closed)
7.2
ADC office be linked by EDI:-
Shri Bala Iyer raised an issue that the Assistant Drug
Controllers office be linked by EDI so that the shippers can send their documents directly to the
Asst. Drug Controller for NOC. If any query is raised by the Asst. Drug Controller, this can be
answered by shipper easily as they are more technically qualified instead of customs broker
carrying the documents back and forth. A lot of time can be saved.
Shri C.S.Prasad, Chief Commissioner of Customs, Zone-II informed that the matter has
been referred to Assistant Drug Controllers office for their comments and the issue regarding
connectivity to ADC’s office through EDI has also been taken up with DG System.
(Issue resolved and point closed)
7.3
Clearance of urgent air shipment on priority basis:- Shri Bala Iyer raised a point
that at times there are very urgent shipments booked by air for which the shipper is willing to
pay high airfreight charges and these are usually booked the same night therefore he wants to
know whether these consignments can be cleared on priority basis by the officers so that the
consignments do not miss the planned flight.
Shri Roopam Kapoor, Commissioner of Customs (Export), ACC, Mumbai informed that
two sheds at ACC are working 24 hours and no consignment remains uncleared for more than
24 hours. He further informed that normally airline work on T + 6 and if a shipping bill is filed six
hours before it is rare that it is not cleared by the time of flight.
(Issue resolved and point closed)
7.4
Amendment in IGM should be allowed online:- Shri Bala Iyer raised a point that
amending an IGM for any reason is very time consuming and laborious and the whole process
is manual. He suggested IGM amendments should be made available on-line. He also pointed
out a specific case where despite submission of 15 documents, amendment in IGM could not be
done and he had to re-export the goods.
Shri A.K.Kaushal, Chief Commissioner of Customs, Zone-I informed that after filing of
IGM, amendment in IGM is allowed by the proper officer depending upon the nature of the
amendment. He further informed that major amendment cases as provided in Board’s Circular
No. 13/2005 attract adjudication proceeding also.
Shri B.S.Vasudev, Chief Commissioner of Customs, Zone-III informed that the issue
would be examined.
(Action: CC, Mumbai Customs Zone-III)
7.5 Pharma products sealed and packed in drums in sterile condition should not be
opened at the time of export. Shri Bala Iyer raised a point that some pharma products like
bulk drugs are packed in the factory under special climatic conditions and these bags are then
sealed and packed in drums for export. He suggested that at the time of examination these
drums should not be opened, but it can be x-rayed and in the event the officer wants to examine
the contents, then only the drum should be opened and not the plastic bag containing the drugs.
He further stated that these bags are packed in sterile conditions and opening of these bags in
6
non-sterile conditions contaminates the drugs and these are rejected by the consignee at
destination.
Shri C.S.Prasad, Chief Commissioner of Customs, Zone-II informed that if the packages
are sealed by the Central Excise authorities at the place of manufacturer then no examination is
carried out at the time of export and only CE seals will be verified. Shri Roopam Kapoor,
Commissioner of Customs, ACC (Export) suggested that for waiver from physical examination,
pharmaceutical exporters should obtain GMP certification.
(Issue resolved and point closed)
Point sponsored by Shri Yogesh S.Thacker:8.
Regarding New Membership/Annual/Legal Fees charged by Customs Broker
Association: Shri Yogesh S. Thacker of S.J.Thacker Freight Forwarders Pvt. Ltd. sponsored a
point that why Customs does not specify the amount of fees to be paid by the Customs Broker
to become a member of the Third party (association); why membership fees is to be paid every
year; BCHAA has started threatening members who have refused to pay 4 times extra
membership fees by not issuing Membership renewal certificate though fees for the same has
been collected; why pay legal fees to BCHAA, when customs has not specified the same;
monopoly of BCHAA and hence demanding fees from members and the legal fees collected by
BCHAA for 2011-12 & 2012-13 is Rs.3,30,00,000/- approx.
Shri C.S Prasad, Chief Commissioner of Customs Zone II informed that annual
membership fee is fixed by the Association itself and it is an internal matter between CHAs and
BCHAA.
Ms Leena Ganguly of Leena Forwarders, Shri B.Ganguly of S.M.C.Pvt. Ltd and Shri
Yogesh S. Thacker stated that despite writing so many letters, BCHAA has not responded them.
On this, Shri Pankaj Shah of BCHAA has fixed up a date i.e. 13.03.2014 at 2.00 PM at BCHAA
office to sort out their problems and differences between them.
(Issue resolved and point closed)
9.
BCHAA vide their letter dated 07.03.2014 has sponsored following three points:-
9.1
Lengthy process of the goods to re-export from bond:- There is lengthy process of
the goods to be re-exported from Bond. The documents move to 10 different tables for initials
and it is suggested that document should not require to be put up to DC, Import as goods
bonding has been permitted only because they are eligible for import in first place.
9.2
Waiver of AC/DC’s permission for manual noting of SB/BE under the schemes
which are not covered under the EDI:- As per the Public Notice No.39/2013 of JNCH and
P.N. No.01/2014 of ACC, manual processing of SB and BE for the schemes which are not
covered by the EDI system requires permission from AC/EDI to carry out the manual noting for
SB and BE, thus delaying the process. It is suggested that the manual noting section should
carry out noting of such SB and BE directly.
9.3
Customs is not taking part in joint survey in case of the RMS facilitated Bill of
Entry where shortage of goods is noticed at the time of delivery of goods:-
RMS
facilitated B/E, OOC is given immediately. While de-stuffing import delivery, shortage is noticed
in the consignments and the customs officer must be part of the joint survey held in presence of
CFS/Insurance and shipping agent, before taking out delivery of the goods. The suggestion is
that in RMS assessment, if shortage is noticed while taking delivery in CFS/Docks/Bond W/H,
DC (in charge of shed) should permit Custom survey and issue an examination report certificate
7
showing details of goods missing including value, duty so that same can be attached with
application for refund of duty and customs should not recover duty for the goods not delivered to
the importers.
Shri A.K Kaushal, Chief Commissioner of Customs Zone-I informed that these points
were received in the evening of 10.03.2014, therefore, the same could not be examined and
hence it is not possible to discuss in this meeting. However, it is assured that the same will be
discussed
in
the
next
meeting
after
taking
opinion/
comments/
views
from
the
Commissionerates.
10.
Shri Rajesh Gosalia after pointing out the lengthy procedure for re-export from bond
informed that one of their such consignment of M/s Premier Solvent has been pending for reexport for last 5 days at JNCH, Nhava Sheva.
Shri C.S.Prasad, Chief Commissioner of Customs, Zone-II asked Shri Rajesh Gosalia to
give the details of the consignment and assured him that the same would be allowed today
itself. Shri C.S.Prasad, Chief Commissioner of Customs, Zone-II informed that a committee of
two Additional Commissioners i.e Shri H.B.Negi, ADC/Zone-I & Shri Aseem Kumar, ADC\ZoneII will be formed and they will conduct a study in the matter and give their report.
11.
The next Open House Meeting is scheduled to be held on 28.05.2014 at 3.30pm in the
Conference Hall, 2nd floor, New Custom House, Mumbai. It is requested to trade to send agenda
points atleast 15 days in advance i.e. 13.05.2014 so that fruitful feedback is obtained from all
dealing sections and can be resolved early. It is further stated that the point received after
13.05.2014 will not be entertained and discussed in the proposed Meeting.
SD/-03.04.2014
(H.B.NEGI)
ADDL. COMMISSIONER OF CUSTOMS
Copy to:
1. The Chief Commissioner of Customs, Mumbai Zone I
2. The Chief Commissioner of Customs, Mumbai Zone II
3. The Chief Commissioner of Customs, Mumbai Zone III
4. All Commissioners of Customs, Mumbai Zone I,II & III
5. PS to Member (Budget), CBEC, New Delhi for information.
6. The Addl./Joint Commissioners (EDI), NCH/JNCH/ACC (for uploading Minutes on websites
and action on Para 4.(ii).
7. Copy for information and wide circulation to: All Associations with a request to inform their
members
to
view
the
minutes
of
the
meeting
on
the
website
www.mumbaicustomszone1.gov.in
8. Copy to all the members of the trade through e-mail.
9. Office Copy.
Sd/(H.B.NEGI)
ADDL. COMMISSIONER OF CUSTOMS
8

Download Report