Government of India
Ministry of Finance
Department of Revenue
(Central Board of Excise and Customs)

Instruction No. 18/2016-Customs

Room No. 229A, North Block,
New Delhi, Dated the 12^th April, 2016.

To,
All Pr. Chief Commissioners/ Chief Commissioners of Customs
All Pr. Chief Commissioners / Chief Commissioners of Customs (Preventive)
All Pr. Chief Commissioners/ Chief Commissioners of Customs and Central Excise
Sir /Madam

Subject: 23^rd report of PAC (16^th Lok Sabha) on ICES 1.5 based on C&AG Report No. 11 of 2014-reg;

Reference is invited to the Observation / Recommendation 9 of PAC (Twenty-Third Report of the Public Accounts Committee (16^th Lok Sabha).

2. The Committee observes that shortage of staff is severely affecting the performance of the Customs Department. They note that CBEC had directed that the time On-site Post Clearance Audit (PCA) was made applicable to all categories of importers. Further, the percentage of B/Es selected for PCA at Customs House should be suitably enhanced to safeguard the interest of revenue. The Committee understands that the concerned Chief Commissioners of Customs were supposed to review the staff position in their jurisdiction and reallocate more manpower of audit work as increased facilitation in terms of reduced examination had led to lesser requirement of staff for examination of goods. It was, therefore, mperative that excess staff should have been diverted for activities such as PCA and Special Investigation and Intelligence Branch (BSSIB) in Customs Houses.
   2.1 However, the compilation of information on PCA activity received from field offices revealed that the Board’s instructions to reallocate more manpower for PCA to increase scrutiny of RMS cases have not been followed in any location and showed increasing trend in pendency of cases in 8 of the 10 Custom locations for which data has been received. The Committee therefore recommends that more manpower be allocated to the field office for strengthening PCA and SIIB in Customs Houses.
   
3. It is pertinent to mention here that vide Staff Allocation Order dated 01.08.2014 staff strength was allocated in various grades to different Commisssionerates of Customs, Central excise and Service Tax, as a whole. Its further deployment within the Commissionerate for various functions as per the functional requirements is the prerogative of the Pr. Commissioner/Commissioner in-charge of the Commissionerate.
   
4. In view of above, it is directed that the concerned competent authority may reconsider the staff position in their jurisdiction and reallocate additional manpower to enhance the performance of PCA and Special Investigation and Intelligence Branch (SIIB) in Customs Houses.

Yours faithfully,
(Pawan Khetan)
OSD (Customs-PAC)
F. No. 307/22/2015-SO (PAC-Customs)