FFFAI’s rec­om­men­da­tions to the CBEC

Dushyant Mu­lani, Ex­ec­u­tive Com­mit­tee Mem­ber & Mem­ber of Cus­toms Sub-Com­mit­tee, Fed­er­a­tion of Freight For­warders As­so­ci­a­tions in In­dia (FFFAI), met up L. Satya Srini­vas, JS (Cus­toms), Gov­ern­ment of In­dia, to dis­cuss and sub­mit some rec­om­men­da­tions high­ligh

Cargo Talk - - Association -

On March 31, 2017, the Cen­tral Board of Ex­cise & Cus­toms (CBEC) is­sued the ‘No­ti­fica­tion 26/2017-Cus’ an­nounc­ing cer­tain amend­ments in the Cus­toms Act’s Sec­tion 46 (2) and Sec­tion 47 (3) with an ob­jec­tive to en­sure time bound clear­ance of ex­port and im­port con­sign­ments. The changes have been car­ried out in the Leg­is­la­tion by en­forc­ing the pe­nal pro­vi­sions for the trade to fol­low time bound process. As per the changes made in Sec­tion 46 (3), fil­ing the Bill of En­try (BoE) should be be­fore the end of the next day, fol­low­ing the day (ex­clud­ing hol­i­days) on which the air­craft or ves­sel or ve­hi­cle car­ry­ing the goods ar­rives at a cus­toms sta­tion. If the BoE is not filed within the time spec­i­fied and the proper of­fi­cer of Cus­toms is sat­is­fied that there was no suf­fi­cient cause for such de­lay, the im­porter shall be li­able to pay charges for late pre­sen­ta­tion of the BoE at the rate of ru­pees five thou­sand per day for the ini­tial three days of de­fault and at the rate of ru­pees ten thou­sand per day for each day of de­fault ex­ceed­ing three days. Com­ment­ing on the new rules per­tain­ing to Sec­tion 46 (3) Mu­lani said, “It is ev­i­dent from the facts that there are mul­ti­ple rea­sons caus­ing de­lay, which are be­yond the con­trol of an im­porter. To men­tion a few are: high down time of ICEGATE/EDI sys­tem; fre­quent break­down leads to non-sub­mis­sion of BoE de­layed fil­ing of IGM by car­ri­ers and con­sole agents, lack of col­lab­o­ra­tion from all stake­hold­ers re­gard­ing ad­vance fil­ing, sud­den queries re­ceived from ICEGATE to re-sub­mit due to tech­ni­cal rea­sons, etc.” The amend­ment made in Sec­tion 47 (2) on timely pay­ment of Cus­tom Duty in­struct that the im­porter shall have to make pay­ment of duty on the same day in case of self-as­sessed BoE and in case of re-as­sess­ment or pro­vi­sional as­sess­ment it should be within one day after the re­turn of the BoE. Re­act­ing to this amend­ment Mu­lani pointed out that due to er­ratic func­tion­ing of ICEGATE/EDI sys­tem, e-pay­ment mod­ule, the im­porter is un­able to make timely pay­ment. On the other hand, non- func­tion­ing of e-pay­ment mod­ule from 8.30 p.m. to 4.00 a.m. and er­ratic/slow func­tion­ing of ICEGATE, ma­jor­ity of the print outs for e- pay­ments are re­ceived late in the evening. Hence the trade is un­able to make the pay­ment of Cus­tom Duty on the same day. In ad­di­tion, mis­match of hol­i­days for Banks and Cus­toms are re­sult­ing in late pay­ment of Cus­tom Duty. “Ad­vance Pay­ment of Cus­toms Duty is avoided by im­porters due to threat of re­fund aris­ing out of any sit­u­a­tion which can lead to dou­ble pay­ment of Cus­toms Duty,” Mr Mu­lani high­lighted.

Ma­jor Rec­om­men­da­tions:

Y For generic is­sues, such as EDI Sys­tem break­down, ICEGATE is­sues, the waiver should be given up­front and im­me­di­ately. Y The present process of tak­ing exemption per­mis­sion by pre­par­ing note sheet for each and ev­ery con­sign­ments need to be dis­con­tin­ued.

Y The Car­rier and Con­sole Agents should en­sure that Amend­ments in BoE are car­ried out within few hours of land­ing and in­cor­po­ra­tion of such amend­ments by way of re­call / re-as­sess­ment should be car­ried out by the Depart­ment on top pri­or­ity. Y Date Val­i­da­tion in the EDI Sys­tem should be cre­ated and IGM / In­ward Date de­tails should be cap­tured on real time ba­sis.

Y For LCL cargo, penalty clause needs to be waived.

Y There should be strict time­lines and guide­lines for the Cus­toms of­fi­cers to carry out as­sess­ment and ex­am­i­na­tion within stip­u­lated hours. Y In­ter­est on the Bill of En­try should be levied if im­porter fails to pay the Cus­tom Duty on the next day (work­ing day) in­stead of present pro­vi­sion of Same Day.

Y Bank should be in­structed to pro­vide cus­tom duty pay­ment on a 24 hours ba­sis.

Y Cus­tom Duty pay­ment should be in­sisted only when there is con­fir­ma­tion of phys­i­cal ar­rival of goods and other stake­hold­ers such as Ship­ping Lines , Air­lines, Con­sole Agents be sen­si­tised to pro­vide such in­for­ma­tion in­stantly upon land­ing of cargo. Y Even in­for­ma­tion of part land­ing , Short land­ing should be pro­vided prior to ar­rival of cargo by these agen­cies.

Ad­vance Pay­ment of Cus­toms Duty is avoided by im­porters due to threat of re­fund aris­ing can lead to dou­ble pay­ment

Dushyant Mu­lani Ex­ec­u­tive Com­mit­tee Mem­ber & Mem­ber of Cus­toms Sub-Com­mit­tee, Fed­er­a­tion of Freight For­warders As­so­ci­a­tions in In­dia (FFFAI)

CT BUREAU

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