05-10-2012, 11:11 AM
Customs Procedures and Functioning of Container Freight Stations and Ports
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Background
1. In the 4th meeting of the Committee on
Infrastructure on Port Sector held under the
Chairmanship of Hon’ble Prime Minister on
12th May, 2005, it was, interalia, decided that
an Inter Ministerial Group (IMG) under the
chairmanship of Revenue Secretary and
consisting of representatives of Planning
Commission, Shipping and Commerce
Ministries would submit recommendations
for streamlining customs procedures in the
functioning of Container Freight Stations
(CFS) by August, 2005. Accordingly, an Inter-
Ministerial Group was constituted on 4th July,
2005 with the following members:-
(a) Shri K.M. Chandrasekher, Secretary
(Revenue) - Chairman
(b) Shri D.T. Joseph, Secretary (Shipping)
© Shri Gajendra Haldea, Advisor to Deputy
Chairman, Planning Commission
(d) Shri Christy Fernandez, Additional
Secretary, Department of Commerce
(e) Shri A.P. Sudhir, Member (Customs),
Central Board of Excise & Customs
2. The meetings of the group were held
on 20.07.2005, 27.07.2005, 01.08.2005,
08.08.2005, 16.08.2005, 29.08.2005,
04.10.2005, 25.10.2005 and 13.12.2005
amongst the Members and core group
of officers.
INTRODUCTION
1. In accordance with international practice,
all cargo goods imported into the country or
exported out of the country by sea, air, land
or rail routes are governed by the provisions
of the Customs Act, 1962 and other laws of the
country related to entry/ exit from the country.
Customs ensures that the import and export of
goods are in compliance with the Customs Act
and other laws in force. Accordingly, customs
procedures are intended to provide definite,
predictable methods by which the goods can
enter the country and get cleared on payment
of applicable import duties, fulfilling the
requirements of the law of the land.
2. To regulate and to exercise effective control
over import and export activities, goods are
allowed for import/export at notified places
under section 7 of the Customs Act, 1962.
Custodians are appointed under section 45
of the Customs Act, 1962 for safe storage
of goods till they are cleared for home
consumption or warehoused. Clearance
of goods involves classification, assessment,
examination and payment of Customs duty
on imported cargo on the basis of Bill of Entry
presented by the importer or his authorized
agent. The Central Board of Excise and
Customs (CBEC) has prescribed the procedures
through notifications, rules, regulations and
circulars which are implemented by field
formations. These are updated and modified
according to the need, demands of trade and
to improve the efficiency of the system.
Findings of the IMG on various issues
The IMG held detailed discussions on the
various issues raised by the Ministry of
Shipping, Ministry of Commerce & Industry
and Planning Commission as detailed in
previous pages. Further the visit of senior
officials to Mumbai enabled it to study the
problems faced in major ports. The discussions
held with the trade, Port and Customs
authorities also provided feedback on the
problems being experienced by them. After due
deliberations, IMG identified the following
areas for taking follow up action and possible
solutions:-
1. Introduction of revamped Green channel
customs clearance scheme coupled with
internationally accepted modern methods
Findings: The internationally accepted method
of assessing the ‘Risk’ involved in various types
of cargo and prescribing commensurate
Customs clearance procedure is considered
the best practice for devising efficient Customs
clearance. The Risk Management System
(RMS) would provide for selective screening
of high risk cargo while expediting clearance
of low risk cargo. It would give a scientific
basis for a systematic approach to the entire
gamut of risk management and put in place
a mechanism assisted by information
technology to identify and manage risks
associated with the business of cargo clearance.
The International Convention on Simplification
and Harmonization of Customs Procedures,
popularly known as Revised Kyoto Convention.