Implementation of Risk Management System (RMS) in Exports - Clarifications - Customs - TRADE FACILITY No. 38/2013

GOVERNMENT OF INDIA OFFICE OF THE COMMISSIONER OF CUSTOMS CUSTOM HOUSE: COCHIN- 682009 F. No. C1/01/2013 TU Cus.Pt.I Dated: 19.12.2013. TRADE FACILITY No. 38/2013 Sub: Implementation of Risk Management System (RMS) in Exports - Clarifications-reg. Attention of the Exporters, Customs Brokers and members of the Trade is invited to the Board's Circular No. 23/2013-Customs dated 24.06.2013 on the implementation of Risk Management System (RMS) in Exports and Trade Facility No. 34/2013 dated 28.11.2013 issued by this Custom House regarding rolling out RMS in Exports in this Custom House. 2). Before implementation of RMS in Exports in this Commissionerate, shipments of all the Central Excise/ Customs stuffed containers were allowed without further Customs examination at the Port, after ensuring that seals are intact / not tampered. The self sealed containers were also generally allowed for shipment without examination except in cases where the EDI system identified /selected the consignments at random for examination. After the rolling out of RMS in Exports in this Commissionerate, with effect from 10.12.2013, it is reported that the EDI system randomly selects the containers stuffed under the supervision of Central Excise/ Customs also for examination. In such cases, the RMS instructions require examination of selected packages from those identified consignments. 3). As the officers are bound to follow the instructions given by the RMS, this results in further examination of the consignments. Hence the matter was taken up with the Directorate General of Systems. The Risk Management Division of the Directorate General of Systems has explained the following as the reasons for the factory stuffed containers being picked up for examination. I) In course of implementation of RMS (Export), it is observed that at the time of filing check-list (Shipping Bills), full details are not being furnished by the exporters/Customs Broker at the stage of submission or the data is entered in inappropriate fields. Some instances are as cited below: a) Exporters are not providing information as to whether the consignment is Factory stuffed or otherwise; if yes, Seal Type i.e., whether Authorized /Self /Warehouse (A/S/W) or whether examined by Central Excise or otherwise at the submission stage, though a specific fields are available in the declaration. b) Exporters are not providing information about claim of benefit under Chapter 3 of Foreign Trade Policy i.e., SFIS , VKGUY, FMS, FPS in specified column of Shipping Bill though a specific field namely 'Whether export under Reward Scheme' is available in the declaration. It is also observed that in many cases this intention of claim is mentioned as part of Description or under Invoice Details. I) If the exporter fails to provide the details mentioned at point (a) above, then the consignment may be selected for examination despite the fact that it has already been examined by the Central Excise Officers. 4). Therefore, the Exporters/Customs Brokers are requested to furnish these information as well as the other details in full at the submission stage itself and in the respective field only so that smooth processing of the bills can be ensured and inconvenience of last moment amendments etc. can be avoided. It is also brought to the notice that the Seal Type i.e., whether Authorized /Self /Warehouse (A/S/W) and other particulars as per Annexure-C shall be entered at the time of filing the check-list (Shipping bill), except the details regarding the number of containers, container number, seal number etc. which might not be known at the time of filing the check list. All concerned are also directed to ensure that the particulars are correctly declared at the time of filing the check-list (Shipping Bill), as any wrong entries noticed at the time of registration of Shipping bill may result in detailed examination before shipment. 5). All Exporters and Customs Brokers are advised to take care of the above requirements so as to minimize the chances of their factory stuffed containers being picked up for examination and consequential delays. It is reiterated that RMS system can pick up containers/consignments at random for examination, in which case they will be required to be examined prior to grant of LEO. Difficulties, if any, on implementation of the above may be brought to the notice of the undersigned. Sd/- (Dr. K. N. RAGHAVAN) COMMISSIONER OF CUSTOMS