Vide Finance Act, 2011, ‘self-assessment’ has been introduced under the Customs Act.
Under ‘self-assessment’, responsibility of filing correct declaration lies with the importer or exporter. The declaration filed by the importer or exporter may be verified by the proper officer when so interdicted by the Risk Management Systems (RMS). In rare cases, such interdiction may also be made with the approval of the Commissioner of Customs or an officer duly authorised by him, who shall not be below the rank of Additional Commissioner of Customs, and that will necessarily be done after making a record of the same in the EDI system.
On account of interdictions, Bills of Entry may either be taken up for action of review of assessment or for examination of the imported goods or both. If the self-assessment is found to be incorrect, the duty may be reassessed. In cases where there is no interdiction, there will be no cause for the declaration filed by the importer to be taken up for verification, and such Bills of Entry will be straightaway facilitated for clearance without assessment and examination, on payment of duty, if any.
Further, provisions have been made in Section 17 of the Customs Act, 1962 to empower the officers of Customs to carry out verification of correctness of assessment of duty relating to imported or export goods at premises of the importer or exporter. This will lead to introduction of ‘On-Site Post Clearance Audit’ in Customs in near future. The focus of self-assessment is reliance on declarations made by the importer and exporter for higher facilitation of consignment at Customs stations and verification of correctness of documents at importer’s or exporter’s premises to detect any infringement. Thus, self-assessment has provided a legal framework to significantly enhance facilitation level in Customs by reducing pre-clearance checks based on risk parameters in case of self-assessed documents.
It is felt that subsequent to introduction of self assessment, the existing facilitation levels under RMS could be increased as responsibility of filing correct declarations has been shifted to importers and exporters. The idea is to move towards a trust-based Customs control. Therefore, risk-based techniques are desired to be fine-tuned to meet this objective. The risk parameters and risk rules should be so designed so as to have an effective interdiction system. The matter was also discussed in the meeting of National Risk Management Committee (NRMC) wherein it was decided that conceptually there should be a fixed target for facilitation for different facilities such as air cargo, ports, ICDs, etc.
It has been reported that the level of facilitation on an average in the last year in air, sea and ICD was 60 per cent, 50 per cent and 40 per cent, respectively. Also, large numbers of transactions selected by RMS were actually found to be compliant. Therefore, it is felt that there is a need to control the interdiction in RMS and comprehensively rationalise various interventions, targets, rules. Similarly, there is a need to check tendency of faulty and indiscriminate construction of targets, etc. by local Commissioners.
It is on record that faulty and indiscriminate targets have resulted in false hits and unnecessary interventions. These ineffective interdictions have resulted in delay in clearance of goods. It is assumed that if this rationalisation of redundant and ineffective targets of Local Risk Management (LRM) and National Risk Management (NRM) are carried out, the percentage of facilitation is bound to increase substantially.
To streamline the procedures and for effective implementation of self-assessment using RMS, the Board has decided that the facilitation target of 80 per cent for air cargo complexes, 70 per cent for seaports and 60 per cent for ICDs should be achieved in the next six months.
Further, to make NRMC broadbased, it has been decided to include Joint Secretary (Customs), CBEC, as one of the members of the Committee. Para 5.2 of Board's Circular No.23/2007-Customs dated 28.6.2007 stands modified to the above extent. The Board has also desired that meeting of NRMC should be held every quarter as outlined in the Board Circular without any exception.
The Board wants the decisions taken by it to be complied with strictly. The DG (Systems) and RMD will ensure that necessary rationalisation and fine-tuning of the Risk Management System is carried out in a time-bound manner so that desired level of facilitation as set out by the Board in respect of air cargo complexes, seaports and ICDs can be achieved. The Board also expects the DG (Systems) to send a report at intervals of two months detailing progress made in this regard. The first such report has to be sent on October 25.
Difficulties faced, if any, are to be immediately brought to the notice of the Board, stressed a Customs communiqué.
Under ‘self-assessment’, responsibility of filing correct declaration lies with the importer or exporter. The declaration filed by the importer or exporter may be verified by the proper officer when so interdicted by the Risk Management Systems (RMS). In rare cases, such interdiction may also be made with the approval of the Commissioner of Customs or an officer duly authorised by him, who shall not be below the rank of Additional Commissioner of Customs, and that will necessarily be done after making a record of the same in the EDI system.
On account of interdictions, Bills of Entry may either be taken up for action of review of assessment or for examination of the imported goods or both. If the self-assessment is found to be incorrect, the duty may be reassessed. In cases where there is no interdiction, there will be no cause for the declaration filed by the importer to be taken up for verification, and such Bills of Entry will be straightaway facilitated for clearance without assessment and examination, on payment of duty, if any.
Further, provisions have been made in Section 17 of the Customs Act, 1962 to empower the officers of Customs to carry out verification of correctness of assessment of duty relating to imported or export goods at premises of the importer or exporter. This will lead to introduction of ‘On-Site Post Clearance Audit’ in Customs in near future. The focus of self-assessment is reliance on declarations made by the importer and exporter for higher facilitation of consignment at Customs stations and verification of correctness of documents at importer’s or exporter’s premises to detect any infringement. Thus, self-assessment has provided a legal framework to significantly enhance facilitation level in Customs by reducing pre-clearance checks based on risk parameters in case of self-assessed documents.
It is felt that subsequent to introduction of self assessment, the existing facilitation levels under RMS could be increased as responsibility of filing correct declarations has been shifted to importers and exporters. The idea is to move towards a trust-based Customs control. Therefore, risk-based techniques are desired to be fine-tuned to meet this objective. The risk parameters and risk rules should be so designed so as to have an effective interdiction system. The matter was also discussed in the meeting of National Risk Management Committee (NRMC) wherein it was decided that conceptually there should be a fixed target for facilitation for different facilities such as air cargo, ports, ICDs, etc.
It has been reported that the level of facilitation on an average in the last year in air, sea and ICD was 60 per cent, 50 per cent and 40 per cent, respectively. Also, large numbers of transactions selected by RMS were actually found to be compliant. Therefore, it is felt that there is a need to control the interdiction in RMS and comprehensively rationalise various interventions, targets, rules. Similarly, there is a need to check tendency of faulty and indiscriminate construction of targets, etc. by local Commissioners.
It is on record that faulty and indiscriminate targets have resulted in false hits and unnecessary interventions. These ineffective interdictions have resulted in delay in clearance of goods. It is assumed that if this rationalisation of redundant and ineffective targets of Local Risk Management (LRM) and National Risk Management (NRM) are carried out, the percentage of facilitation is bound to increase substantially.
To streamline the procedures and for effective implementation of self-assessment using RMS, the Board has decided that the facilitation target of 80 per cent for air cargo complexes, 70 per cent for seaports and 60 per cent for ICDs should be achieved in the next six months.
Further, to make NRMC broadbased, it has been decided to include Joint Secretary (Customs), CBEC, as one of the members of the Committee. Para 5.2 of Board's Circular No.23/2007-Customs dated 28.6.2007 stands modified to the above extent. The Board has also desired that meeting of NRMC should be held every quarter as outlined in the Board Circular without any exception.
The Board wants the decisions taken by it to be complied with strictly. The DG (Systems) and RMD will ensure that necessary rationalisation and fine-tuning of the Risk Management System is carried out in a time-bound manner so that desired level of facilitation as set out by the Board in respect of air cargo complexes, seaports and ICDs can be achieved. The Board also expects the DG (Systems) to send a report at intervals of two months detailing progress made in this regard. The first such report has to be sent on October 25.
Difficulties faced, if any, are to be immediately brought to the notice of the Board, stressed a Customs communiqué.
Source : Exim News Service - NEW DELHI, Sept. 7
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