INTRODUCTION OF RISK MANAGEMENT SYSTEMS (RMS) IN
EXPORTS – REGARDING
Circular No.:
23/2013 Custom
Dated :
24/06/2013
1. Attention is invited to the Board Circular No.43/2005-Cus
dated 24.11.2005 whereby Risk Management System (RMS) was introduced in Imports
as a trade facilitation measure and for selective interdiction of high risk
consignments for Customs control.
2. Implementation of RMS in Imports has been one of the most
significant steps in the ongoing Business Process Re-engineering initiative of
the department. In continuation of this initiative, the Board has now decided
to introduce RMS in exports in Customs locations where the Indian Customs EDI
Systems (ICES) is operational. The RMS in exports will enable low risk
consignments to be cleared based on self assessment of the declarations by
exporters. This will enable the department to enhance the level of facilitation
and speed up the process of cargo clearance. By expediting the clearance of
compliant export cargo, the RMS for exports will contribute to reduction in
dwell time, thereby achieving the desired objective of reducing the transaction
cost in order to make the business internationally competitive. The RMS in
Exports is scheduled for implementation from 15.07.2013 onwards.
3. The RMS for exports is developed with the following
components (i) ensuring appropriate control measures for proper and speedy
disbursement of drawback and other export incentives (ii) effective utilization
of human resources, to match the workload with the resources available (iii)
ensuring proper and expeditious implementation of existing control over export
under the applicable Allied Acts and Rules.
4 With the introduction of the RMS in exports, the present
practice of routine verification of self-assessment and examination of Shipping
Bills will be discontinued and the focus will be on quality assessment,
examination and post clearance audit (PCA) of Shipping Bills selected by the
Risk Management System.
5. Shipping Bills filed electronically into ICES through the
Service Centre or the ICEGATE will be processed by RMS. The RMS will process
the data through a series of steps/corridors and produce an electronic output
for the ICES. This output from RMS will determine the flow of the Shipping Bill
in ICES i.e. whether the Shipping Bill will be taken up for Customs control
(verification of self-assessment or examination or both) or to be given “Let
Export Order” directly after payment of Export duty (if any) without any
verification of self-assessment or examination. The RMS will also provide
instructions for Appraising Officer/Superintendent, Examining Officer/Inspector
or the Let Export Order (LEO) Officer, wherever necessary. The decisions
communicated by the RMS on the need for verification of self-assessment and/or
examination and the appraising and examination instructions communicated by the
RMS have be followed by the field formations. It is possible that in a few
cases, the field formations might decide to apply a particular treatment to the
Shipping Bill which is at variance with the instructions received for the RMS
owing to risks which are not factored in the RMS. Such a course of action shall
however be taken only with the prior approval of the jurisdictional
Commissioner of Customs or an officer authorised by him for this purpose, who
shall not be below the rank of Addl./Joint Commissioner of Customs, and after
recording the reason for the same. A brief remark on the reasons and
particulars of Commissioner’s authorization should be made by the officer
examining the goods in the departmental comments in the EDI system.
6. Board has decided to implement RMS in export in two
phases. In the first phase the RMS will process the data and provide the output
to ICES only up to goods examination stage. In the second phase, the RMS will
also process the Shipping Bill data after the Export general Manifest (EGM) is
filed electronically and provide output to ICES for selection of shipping Bills
for Drawback scrutiny and Post Clearance Audit (PCA).
7. With the implementation of export RMS, a Post Clearance
Audit (PCA) function will be introduced in respect of exports after the LEO is
given for export consignment. The objective of PCA is to monitor, maintain and
enhance compliance levels, while reducing the dwell time of cargo. The RMS will
select the Shipping Bills for audit, after issue of LEO, and these selected
Shipping Bills will be directed to the audit officers for scrutiny by the ICES.
It may be noted that the auditors are specifically being instructed to
scrutinize declarations with reference to exports incentives, duty drawback and
other compliance requirements Wherever necessary, RMS will provide instructions
for audit Officers. In case any possible short levies or undue claim of export
incentives are noticed, the officer will issue a Consultative Letter setting
out the ground for their views to the exporters/CHAs. Audit Officers should
also scrutinize declarations with reference to data quality and advise the exporters/
CHAs suitably where the quality of their declarations is found deficient. Such
advise is expected to be followed and will be monitored by the Local Risk
Managers (LRM).
8 As in the case of Import, the national management of the
Risk Management systems shall be the responsibility of the Risk Management
Division. There will be a single Local Risk Manager (Admin) for a location for
both import and export.
9. The implementation of RMS for exports will necessitate
reorganization for staff. Board desires the Chief Commissioner of Customs to
undertake a comprehensive reorganization of the officers deployed for
processing of Shipping Bills. The present appraising facilities should be
right-sized in tune with the quantum of Shipping Bills coming for assessment. A
separate PCA section needs to be created and sufficient staff should be
diverted to the Post Clearance Audit. The strength of the staff for examination
of cargo would also be required to be readjusted.
10. With the introduction of RMS in exports, the selection
of Shipping Bills for verification of Self-assessment and/or examination will
be based on the output given by RMS to ICES. Accordingly the examination and
assessment norms contained in the Board’s Circulars No. 06/2002 –Cus dated
23.01.2002, 01/2009-Cus dated 13.01.2009 and 28/2012-Customs dated 16.11.2012
would stand modified to that extent. However, owing to some technical reasons
if the RMS fails to provide output to ICES or RMS output is not received at
ICES end in time, the existing norms of assessment and examination prescribed
by the aforementioned circulars will be applicable.
11. To begain with, RMS in Exports will be introduced w.e.f.
15.7.2013 at ICD Mulund and ICD Patparganj. With the implementation of RMS in
exports the existing facilitation scheme viz. Accelerated Clearance System vide
Circular No.30/2003-Cus dated 4.4.2003. would be phased out. As the deployment
of the export RMS is likely to take place in a phased manner across the ICES
locations, the existing facilitation scheme will continue to be operative in
each Customs station until the operationalisation of the export RMS at the
station.
12. Board desires DG (Systems) to forward the detailed
instruction/draft public notice to field formation separately.
13. Any difficulty in implementation of these instructions
should be brought notice of the Board immediately.
Regards
CA. Mona Singhal
Partner
Arpit Gupta & Associates
Chartered Accountants
701, Nirmal Tower,
26, Barakhamba Road,
Connaught Place, Delhi-110001
Mobile:- +91-9873082769
Website: www.caaga.co.in
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