Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
227-B, North Block,
New Delhi-110001
13th June, 2012
Circular No.15/2012-Customs
To
All Chief Commissioners of Customs / Customs (Prev.).
All Chief Commissioners of Customs & Central Excise.
All Commissioners of Customs / Customs (Prev.).
All Commissioners of Customs & Central Excise.
All Director Generals under CBEC.
Sir/ Madam,
Subject: Review of Risk Management System (RMS) –
regarding
As you are aware Self Assessment has been introduced vide Finance Act 2011.
This marks a major change in the system of assessment of customs duty of
imported and export goods. Self Assessment is trust based control with more
reliance on declarations of the importer and exporters.
- In order to implement self assessment effectively and to ensure its
benefits to the trade, Board decided that current facilitation level under RMS
should be enhanced significantly. Accordingly vide Board
Circular 39/2011-Cus
dated 2.09.2011 it was decided to enhance facilitation level up to 80%,70% and
60% in case of air cargo complexes, ports and ICDs respectively by rationalizing
risk rules and risk parameters.
- Risk Management Division has since carried out rationalization of risk
parameters and it is reported that facilitation level of Bills of entry has been
enhanced appreciably. This means that that more and more numbers of Bills of
Entry are not subjected to examination and assessment.
- Higher facilitation at the same time has led to a need for more scrutiny of
Bills of Entry at Post Clearance Audit (PCA)/Post-Clearance Compliance
Verification (PCCV) stage. It is therefore felt that percentage of Bills of
entry selected for PCA need to be enhanced by concerned field formations. RMD
has also reported that all Chief Commissioner should ensure that higher
percentage of facilitated Bills of Entry should be subject to Post Clearance
Audit/PCCV.
- Board has also introduced ‘On Site Post Clearance Audit’ (OSPCA) vide
Circular No 47/2011- Cus dated 21.10.2011. The Scheme currently covers ACP
importers only. It was decided that in respect of ACP importers covered under
OSPCA, transaction based PCA in vogue since 2005 after introduction of RMS
should be phased out. However in respect of other importers, the same should
continue to be operational.
- Board is therefore of the view that till the time OSPCA is made applicable to
other categories of importers, the percentage of Bills of Entry selected for PCA
at a Customs house should be suitably enhanced to safeguard the interest of
revenue. Board also desires that concerned Chief Commissioners of Customs should
review the staff position in their jurisdiction and relocate more manpower for
audit work as increased facilitation in terms of reduced examination have led to
lesser requirement of staff for examination of goods. It is therefore imperative
that excess staff should be diverted for activities such as PCA and SIIB in
Customs Houses.
- It is also reported that pendency in respect of transaction based PCA remain
acute. Board has taken a serious note of it and desires that the work should be
accorded due consideration and pendencies reduced.
- These instructions should be complied with strictly and any difficulty in
this regard may be brought to the notice of the Board immediately.
Yours faithfully,
(R.P. Singh)
Director (Customs)
F.No.450/20/2007-Cus.IV