T N C Rajagopalan: For better procedures in Customs clearance

There are delays from the Customs department with regard to system failure and network failure

In response to my column last week on Union Budget proposals in Customs law, readers have raised some issues. I deal here with some of these.

A reader feels there is actually no change in Section 46 of the Customs Act. Even earlier, interest was levied on delay in paying duty, from the date of bill of entry. I’d said the present section does not prescribe any time period within which the bill of entry has to be filed but once the proposed change takes effect, the importer will get only one day from arrival of vessel to do so. If he does not, he will have to pay a fee for late presentation.

Also at present, interest starts after two days from the date on which the bill of entry is returned to the importer for payment of duty. Section 47 is now being amended to compel importers to pay on the same day in a self-assessment and by the next day in an assessment by the Customs. Any delay will attract interest.

Another issue is that in some cases, examination is done after the bill of entry is filed. It does not happen immediately. It takes a minimum of 48 to 72 hours, subject to availability of the Assessing Officer, who is sometimes handling two Container Freight Stations. Edible oil is subject to acceptance and approval by the Food Safety and Standards Authority (FSSAI), which takes three to four working days. The importer waits for this approval to pay.  If the report is negative, the goods have to be sent back to the country of origin and it is very difficult to get refund of the duty paid, says an importer.

I agree that this problem must be looked into by the authorities. I draw attention to CBEC Circular 22/2004-Cus, dated March 3, 2004. It says a disputed or offending consignment should also not be held up, unless its import/clearance is banned under any law [e.g PFA, CITES, Weights & Measures Act, etc] or where prosecution is contemplated. At most, samples should be drawn and the consignment  allowed to be cleared on a provisional basis as a matter of right, says the Circular.   

There are delays from the Customs department with regard to system failure, network failure and absence of superintendent or DC. Invariably, they work only between 11.30 am and 3.30 pm.  Who is accountable for such a delay or limitation, asks a reader. I think these operational issues must be taken up at the local levels with senior officers.

On the issue of bringing the beneficial owner within the definition of importer and exporter, a reader says some unscrupulous Customs house agents misuse the  importer-exporter codes (IEC) for illegal acts without knowledge of the principal.

The suggestion is that the Customs inform the importer or exporter about such use, just as credit card companies flash a message as soon as any transaction takes place.  It is a suggestion the authorities could consider favourably.  

E-mail: tncrajagopalan@gmail.com