Data quality of information furnished by the importers and exporters for assessment purposes - Customs - 54/2010

OFFICE OF THE COMMISSIONER OF CUSTOMS (GENERAL) NEW CUSTOM HOUSE, BALLARD ESTATE, MUMBAI 400001 F. No. S/26 Misc- 168/2009-10 CFS (M)(I) Date : 20.08.2010 Public Notice No. 54/2010 Subject : Data quality of information furnished by the importers and exporters for assessment purposes. The Customs assessment, to a large extent, is a function of classification and valuation of goods, not only for levying correct duty on imports or extending appropriate incentives on exports but also for the purposes of ensuring uniformity of assessment practices and enforcing restriction / prohibitions imposed under allied laws. Further, policy makers and all other concerned also use Customs import and export database for policy decision and for statistical purposes. 2 . One of the most essential requirements for ensuring correct classification and valuation of goods is the quality of data furnished by the importers and exporters as regards its completeness and accuracy. It has, however been felt that the quality of data furnished by the trade has remained quite poor despite the fact that this issue has been emphasized time and again by the Customs administration. The basic information like brand, grade, model, specification, unit quantity code, weight, country of origin etc. are not declared properly, even though such information is required to be filled specifically in the bill of entry and shipping bills. Further it has also been noticed that different classifications are assigned for same commodity by the same importer. In some cases such nondeclaration by unscrupulous importer/exporter is to evade duty/claim higher benefit on exports or restriction. However, in majority of cases it may be on account of casual approach. As a result, not only the quality of assessment has suffered but also the quality of National Import and Export database has remained below expectation. Thus, poor quality of data furnished by the trade is a matter of serious concern for customs administration. 3 . In the above context, attention of trade and all other stake holders is invited to the fact that it is mandatory for the importers / exporter/ CHAs to declare full and correct information concerning the goods being imported/exported such as description, brand, model, grade, specification, etc. in the appropriate columns while filing the bill of entry or shipping bill, as the case may be. Further, the unit of quantity declared should be the standard unit. 4 . All concerned sections, i.e., Appraising Groups, Import Docks, Export Assessment and Export Docks shall verify that all fields in the bills of entry/shipping bills, including brand, grades, model specification, unit of quantity, country of origin etc. have been filled correctly by the importer/exporter/CHAs. In all such cases where complete details are not furnished, documents shall be returned for incorporating the same. Since, this mandatory requirement is not complied by a large number of importers/ exporters/CHAs, it has been decided to take stern action in case of noncompliance. In case an importer/exporter/CHA repeatedly fails to furnish the complete details in documents furnished by him, an appropriate penal action would be initiated, including suspension of license of CHA, wherever situation so warrants. Concerned sections shall enforce strict compliance of these instructions . 5 . For stakeholder s education, interactive sessions were conducted by the officer s of Commissioner of Customs (Import) in New Custom House, Conference Hall in the 2nd floor in the month of July 2010. Another Session is expected to be held in the month of September, 2010. Interested importers/exporters/ CHAs are requested to attend these sessions. 6 . In addition, as far as this ICD is concerned all interested importers/exporters/ CHAs are requested to contact Joint Commissioner of Customs (Mulund /ICD)/ Asstt. Comm. Of Customs, Mulund/ICD(Import /Export), for any assistance required. 7 . All stakeholders are advised to follow the above guidelines scrupulously. Difficulties faced, if any, may please be brought to the notice of Commissioner of Customs (General), New Custom House, Mumbai. 8 . This issues with the approval of the Commissioner of Customs (General). Sd/- ( S. P. Rao ) Joint Commissioner of Customs ICD, Mulund