16/12/2014 - Of Mumbai Customs

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(Unit-IV)
DATE: 16.12.2014
Minutes of the Open House Meeting held on 04.12.2014.
An Open House Meeting was held on 04.12.2014 under the Chairmanship of S/Shri
A.K.Kaushal, Chief Commissioner of Customs, Zone I, B.B. Prasad, Chief Commissioner of
Customs, Zone II and B.S.Vasudev, Chief Commissioner of Customs, Zone III in the
Conference Hall, 2nd Floor, NCH, Mumbai Zone- I.
2.
3.
From the department side, the following officers attended the meeting:
(i)
Shri Dhirendra Lal, Additional Commissioner of Customs, Zone- I.
(ii)
Shri. K.G.V.N.Surya Teja, Deputy Commissioner of Customs, CCO, Zone- I.
(iii)
Shri Clint J D’Silva, Assistant Commissioner of Customs, CCO, Zone-I
The following members attended the meeting from the trade side:
Sr. No.
Name (Mr./Ms)
Company/Designation
1
Sh Nimish Desai
NHD Forwarders P Ltd
2
Sh. Ashish Pednekar
President BCHAA
3
Sh. Om Agarwal
BCHAA
4
Mr.Mark S.Fernandes
Indian Merchants Chamber
5
Sh. Dushyant Mulani
BCHAA
6
Mr.Sorab P.Engineer
BCHAA
7
Sh. Kiran Rambhia
BCHAA
8
Sh. Vinayak B. Apasaj
BCHAA
9
Sh. K.B.Bhandari
10
Sh. K. Srivasthan
IDMA
11
Sh. Mihir Bhadamkar
ACAAI
12
Sh.Ashok Kumar Saini
M/s. Ashok Kumar Saini
13
4.
Sh. Mahendra
M.Chaurasia
BCHAA Lakka Transglobal (I) P
Ltd
Nitin Transport Company
14
Sh. K.S. Shetty
Vice President BCHAA
15
Sh. Rajesh Gosalia
BCHAA/COSIA
At the outset, the three Chief Commissioners welcomed all the members of the trade.
Thereafter, Agenda points still open from the Minutes of the last meeting held on 17.10.2014
along with the fresh points received thereafter were taken up for discussion.
4.1
Linking/list of amended Public Notices on JNCH/NCH/ACC’s websites:[Please refer to Point 4.1 of minutes of last meeting dated 17.10.2014]
Shri A.K. Kaushal, Chief Commissioner, Zone-I informed that the substantial progress
has been made for the years 2011- 2014 and the same has been uploaded on the website of
Mumbai Customs Zone-I. Shri B.B. Prasad, Chief Commissioner, Zone-II informed that in the
first phase, work of providing hyperlinks in the later Public Notices for earlier instructions/public
notices, whenever required, has been completed. In the second phase, the work of providing
hyperlinks in the earlier Public Notices etc has started. This will be completed by the next Open
House Meeting. Shri B.S. Vasudev, Chief Commissioner, Zone-III informed that the PNs listed
on the website are scanned copies and hence there is a difficulty in providing hyperlinks. He
further informed that new scanned copies of re-typed PNs will be needed to be uploaded afresh.
The notice of supersession/amendment etc. has been placed in the YEAR WISE INDEX OF
PUBLIC NOTICES in the Website.
The House expressed satisfaction at the progress made in this behalf. Further progress
made will be brought to the notice of the House.
(Point is closed)
4.2
Lengthy process of the goods to re-export from bond:(Refer to Point 4.2 of minutes of last meeting dated 17.10.2014)
The BCHAA vide their email dt 07.03.2014 raised the point that there is lengthy process of the
goods to be re-exported from Bond. The document has to move to 10 different tables for
signatures and it was suggested that document should not be required to be put up to DC
(Import) as bonding of goods had been permitted only because they were eligible for import in
the first place.
Shri A.K.Kaushal, Chief Commissioner of Customs, Zone I informed that after approval
of all three Chief Commissioners, a Public Notice No. 58/2014 has been issued by
Commissioner of Customs (Import), NCH, Mumbai on 03.12.2014.
(Point is closed)
4.3. Auto Acknowledgement of e-mails & replies to e-mails:
(Refer to Point 4.4 of minutes of last meeting dated 17.10.2014)
Sh. Rajiv Gupta raised this point that if there is a facility available in the system for auto
acknowledgement, then why the same is not being implemented; that there is invariably no
reply in respect of the e-mails and thes e-mails are official communication & as per the Citizen’s
charter, they need to be attended to by the Customs officials. He informed that this needs to be
ensured by this August house to ensure better transparency and accountability.
Shri B.S.Vasudev, Chief Commissioner of Customs, Zone III informed that the facility of
auto-acknowledgement of e-mail has been activated. Presently, this facility has been provided
on gmail account i.e. ccmumbaizone3@gmail.com, accimport.mumbai@gmail.com and
accexport.mumbai@gmail.com. An application has also been made to NIC so that this facility
can be provided through NIC based e-mail ID.
(Point is closed)
4.4
Non Payment of Duty Drawback and Illegal reduction in Duty Drawback amount:
(Refer to Point 4.5 of minutes of last meeting dated 17.10.2014)
The issue pertains to non Payment of Duty Drawback by the Mulund CFS and illegal
reduction in Duty Drawback amount in respect of 10 Shipping Bills pertaining to M/s Gemini
Exports. No Deficiency memo was served in these cases. Interest is payable at the rate of 6%
per annum as on date if the Drawback amount is not paid within 1 month in terms of Section
75A (1) of the CA, 1962
Second issue pertains to perpetration of Illegal reduction in the payment of Duty
drawback amount and payment of interest in respect of delayed Duty Drawback in terms of
Section 75 A of the Customs Act, 1962 in respect of M/s. Polydrug Laboratories Pvt Ltd. The
reduction of drawback amount is due to the present practice of restricting FOB value of the
Shipping Bill to 150% of ARE-1 value.
Shri A.K.Kaushal, Chief Commissioner of Customs, Zone I informed that the practice of
restricting FOB value of the Shipping Bill to 150% of ARE-1 value being followed in this regard
is being ascertained from other locations and after that matter will be taken up with the Board.
(Action: All Commissioners (Export), Zone I/II/III, Mumbai)
4.5
Point raised by Shri Joseph Tharakan of Bruce Logistics P Ltd:
(Refer to Point 4.7 of minutes of last meeting dated 17.10.2014)
SIIB-ACC has picked up several Bs/E cleared in the past demanding to pay duty
difference due to wrong classification of goods+interest+25% Penalty. Now, the request is to
give an opportunity to the importer/CB to represent the issue and give an opportunity to rectify
the mistake wherever admissible. It is not fair from the part of Dept. to recover penalty in cases
where an opportunity is not given to the Importer/CB to represent the issue. The issue brought
to the notice is:
 Goods are eligible for concessional rate of duty but presented with wrong
CTH/notification. Opportunity should be given to rectify and to avail the benefit without
imposing penalty.
Shri B.S.Vasudev, Chief Commissioner of Customs, Zone III informed that no specific
case has been brought to his notice. However, instructions have been given not to pass any
order without following the principles of natural justice.
(Point is closed)
4.6 Examination from ‘H’ category to ‘G’ category for Custom Broker pending.
(Refer to Point 4.8(i) of minutes of last meeting dated 17.10.2014)
Sh. S.P. Engineer from BCHAA raised the issue of shortage of the CHA staff as the exams
for the CHA staff from H category to G category is pending for a while. Last exams were held
sometime in 2012.
Shri A.K.Kaushal, Chief Commissioner of Customs, Zone I assured the House that the
exam for Category ‘H’ to ‘G’ would be conducted in January 2015 and the Orals would be
conducted in time. On a suggestion from the trade that the exams should be conducted once in
six months, Shri A.K.Kaushal, Chief Commissioner of Customs, Zone I informed that the
necessary time frame for conducting the exams would be given in advance.
(Action: Commissioner (Gen), Zone I, Mumbai)
4.7 Easing the process of filing of Manual B/E where Scheme/Notification has not
been updated in the system.
(Refer to Point 4.8(ii) of minutes of last meeting dated 17.10.2014)
Sh. Dushyant Mulani from BCHAA gave a suggestion for easing the process of seeking
permission to file a manual Bill of Entry (as it involves 12 steps) where the Scheme/Notification
has not been updated in the system. He suggested that a list of schemes/notifications can be
given to Manual Noting section on a fortnightly basis so that B/Es of the same can be filed
without permission to avoid any delay in filing of such B/Es.
Shri B.S.Vasudev, Chief Commissioner of Customs, Zone III informed the House that
Facility Notice No. 06/2014 dated 13.11.2014 has been issued in this regard and
representatives of BCHAAA expressed their satisfaction with the procedural simplification
introduced by this facility notice.
The Commissioners in Zone I and II are also requested to do similar action as done by
Zone III.
(Action: Commissioners (Import) Zone I and II, Mumbai)
4.8
Pendency of Bills of Entry for Assessment at ACC, Sahar,Mumbai.:
(Refer to Point 4.8(iii) of minutes of last meeting dated 17.10.2014)
Sh. Dushyant Mulani from BCHAA further pointed out that there is frequent breakdown
of the EDI system especially in the afternoon between 2pm to 6pm due to heavy workload. DG
System may be asked to increase the Bandwidth. He further stated that though the workload at
ACC and at JNCH is heavy, yet the system problem seems to be more at ACC only.
Sh. Ashish Pednekar of BCHAA informed that now there is no pendency at ACC, Sahar
and he thanked the Chief Commissioner, Zone-III for the initiatives taken by him..
(Point is closed)
Fresh Agenda Points
4.9
Amendments of Shipping Bills post EGM:
This point was raised by Shri Bala Ayer, Secretary, ACAAI.
He requested to look into the
matter as amendments to shipping bills are taking about five to six months at Air Cargo
Complex, Sahar. He indicated that there are two main reasons for delay: 1. Due to accumulation
of files before the files are sent for amendment and 2. Lengthy procedure involving twenty
steps.
He brought to attention the two notices issued by JNCH i.e., Standing Order No. 34/2008
and Public Notice No. 88/2009 and stated that the same procedure can be adopted by the other
Zones.
Shri A.K.Kaushal, Chief Commissioner of Customs, Zone I enquired about the step
causing the maximum delay. Shri Rajesh Gosalia from BCHAA informed that the procedure at
MCD is taking the maximum time. Shri A.K.Kaushal, Chief Commissioner of Customs, Zone I
assured to look into the matter and issue necessary instructions.
(Action: Commissioners of Customs (Export), Zone-I and III, Mumbai)
4.10
Regulation 6 Examination under CBLR, 2013:
This point was raised by Shri Nimish Desai. The point pertains to furnishing of solvency
certificate to the tune of Rs. 5 lakhs for appearing in the Regulation 6 exams which may deprive
people from weaker sections of an opportunity to qualify for the same. This may amount to
discrimination against weaker section as it deprives them of an opportunity to qualify and have
better job prospect in their lives.
Shri A.K.Kaushal, Chief Commissioner of Customs, Zone-I informed that this point was
received late and the issue would be examined in detail and necessary action would be taken.
(Action: Commissioners of Customs (Gen), Zone-I, Mumbai)
4.11
Drawing of Samples from Export consignments under free S/Bs with ARE form:
Shri S.P. Engineer raised this point that the Officers at the Export Shed are drawing
samples for test in respect of free shipping bills accompanied by ARE-1 form also.
Shri Dhirendra Lal, ADC clarified that there is already a Board Circular No. 6/2002-Cus
dated 23.01.2002 regarding examination norms for Export consignments and there is no
need to reiterate the same. Since Board instructions are clear, any specific instance should
be brought to the notice of the Commissioner concerned.
(Point is closed)
4.12
Submission/Verification of documents for the First Time Importers:
Shri Dushyant Mulani, BCCHA raised the issue of verification of documents for first time
importers by all the three Zones. He stated that if the verification is done at one Zone, the
verification procedure need not be done again at the other Zones if the importer/CHA
produces a copy of the Bill of Entry assessed at the other Zone.
The three Chief Commissioners agreed to the proposal of accepting the verification
procedure at one Zone and informed the House that necessary action would be taken.
However, random verification can be done wherever necessary.
(Action: All Commissioners (Import), Zone-I, II and III, Mumbai)
5.
The next Open House Meeting is scheduled to be held on 6th February, 2015 in the
Conference Hall, 2nd floor, New Custom House, Mumbai. It is requested to trade to send agenda
points at least 15 days in advance i.e. by 21st January, 2015 so that feedback is obtained from
all dealing sections and can be resolved early.
Sd/(Dhirendra Lal)
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/(Dhirendra Lal)
ADDL. COMMISSIONER OF CUSTOMS