Office of the Commissioner of Customs, Kandla,
Custom House, Near Balaji Temple, Kandla (Kachchh).
27.03.2009
Sub: Implementation of Risk Management System(RMS) for remaining
Export Promotion Schemes.-reg
You are all aware that Risk Management System (RMS) has been implemented in the clearance of cargo covered under the import declarations (bills of entry) filed in Appraising Groups 1 to 6 and DEPB. This office has issued Two Standing Orders Viz. 47/2007 and 48/2007 both dated 19.11.2007 , vide which elaborate instruction have been issued as to how, assessment, examination, out of charge and post clearance audit of the bills of entry have to be carried in respect of facilitated and non-facilitated bills of entry. It has now been decided to extend RMS to cargo covered by the import declarations under various export promotions schemes, which include:
The tentative date for commencement of the same will be 30th March-2009.
2.0 The instructions given to the officers dealing with assessment, examination, management of bond /bank guarantees and out of charge, besides their roles, responsibilities and functions have been clearly laid down in the said two SOs dated 19.11.2007. With this implementation, the practice of concurrent audit being followed in respect of bills of entry filed under all EP Schemes will be dispensed with. In lieu of the concurrent audit of all bills of entry filed under EP schemes, there shall be post-clearance audit (PCA) of only selected bills of entry, just as in the case of Appraising Groups 1 to 6 and DEPB.
3.0 The importers will continue to register their Licences/Authorisation/Scrips/Release Advices in the Section(s) attached with respective Appraising Groups and seek a registration number, which has to be quoted in the licence column at the time of filing the bill of entry. As regards the procurement Certificates (under 100% EOU) and Export Orders (under notification no. 32/97 dated 1.4.1997), the sections associated with the appraising groups are hreeby directed to maintain a register and record the details of imports under the cover of the same. It is also advisable that the Appraising Groups/ Audit/ SIIB does some periodical checks (including cross verification with the jurisdictional Central Excise formations) to rule out any possible misuse of the schemes. Further, the procedures as laid down in the Standing Order dated 19.11.2007 for registration of Bond and BG, wherever required, will continue to be followed as has been the practice in Pre-RMS scenario.
4.0 As regards imports under the EOU scheme are concerned, in the Pre-RMS scenario, the procurement certificates (PC) addressed to the Assistant Commissioner is brought in a sealed cover and details are entered in a register. The bill of entry is then assessed w.r.t. the PC. The PC is issued by the Central Excise Superintendent of the jurisdictional Range on consignment basis with details of goods and invoice no. The particulars of the PC and other details are tallied with the bill of entry filed by the CHA/Importer in the EDI system and after verifying the same the PC is debited/defaced by the assessing officer (Group). The CHA/Importer then presents the debited/defaced PC to the Bond Supdt. Where the bonding procedure is followed and thereafter the CHA/Importer goes to the shed for out of charge, where the goods are then sealed by the Preventive Officer (PO) after OOC for forwarding the same to the concerned Central Excise authority/local EOUs.
Now, in the RMS Scenario, where the bills of entry are facilitated, there is no assessment of the bill of entry and the same directly goes to the shed AO/Supdt. for OOC. In such cases, before going to the shed for OOC, the PC received in the sealed cover, shall be opened by the Bond Supdt. in the Bond Section who will then enter the Bill of Entry No. and the transit allowed (TA) No. in the PC and then the CHA/Importer will present the Bill of Entry to the shed officers. Here the shed officer has to tally the particular of PC with the Bill of Entry and if in order, duly debit/deface the same and also comply with CCR’s and Examination instructions and before granting OOC.
5.0 To reiterate the general procedure, in short, the bills of entry will continue to be filed electronically in the ICES either through the Service Centre or through the ICEGATE mode and the data is forwarded to RMS for processing and assessment of risk involved. The RMS will then generate the risk output based on the risk parameters fixed, which will be communicated to the officers as compulsory compliance requirements (CCRs), Targeting/Intervention/Appraising/Examination instructions. It may please be borne in mind that the CCRs needs to be complied before the out of charge(OOC) is given notwithstanding the fact whether a bill of entry is facilitated or not. The Officers in the Appraising Groups and Sheds/Docks will be responsible in respect of the bills that are queued up for assessment and /or examination as the case may be before them. The officers discharging the role of OOC officer will collect all the documents as mentioned in the SO dated 19.11.2007 including those documents on the basis of which the exemption benefit is being claimed/extended.
6.0 Needless to state that the best way of mitigating the risk associated with most of the imports under the EP Scheme is to put in place some regular and effective mechanism to monitor post-importation implications of the goods (including raw materials, capital goods). This can be taken care by very good liaison with the Central Excise formations where the manufacturer/supporting manufacturer/ 100% EOU etc. are operational. Therefore, there should not be any room for complacence under the mistaken impression that it is the responsibility of the Central Excise officers alone to safeguard the duties of Customs foregone in respect of EP Schemes. Further , in the case of EP schemes where duty-free importation of capital goods is allowed subject to submission of installation certificates in a time-bound manner, due care should be taken by the appraising groups to monitor the time lines and as and when it is necessary the matter can be escalated to the SIIB for proper investigation . In view of this, the ADC/JC in charge of the appraising groups, Audit and SIIB are hereby directed to undertake periodic reviews through strategic Audit and/or verifications by way of special drives whereby existence or otherwise of the importers, supporting manufactures etc, along with the end use and the manner in which the goods imported duty-free are dealt with, to avoid any revenue loss.
7.0 Henceforth, the officers working in the Docks should make sure that the dockets pertaining to Bills of Entry filed in EP Schemes and selected for PCA should also be segregated and sent to the PCA section along with the dockets pertaining to the other Groups.
6.0 In case any problems are encountered in respect of such clearance under RMS the following Officer may be contacted at the stated address;
Shri Vijay Risi,
Joint Commissioner of Customs (SIIB)
Office of the Commissioner of Customs,
Customs House,
Kandla.
(D. S. Negi)
Commissioner
F.No.S/01-01/2009-Appg.(G)
Date: 27.03.2009.
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