First time exporters, verification of documents - Customs - Public Notice No. 42/2019

OFFICE OF THE COMMISSIONER OF CUSTOMS EXPORT INLAND CONTAINER DEPOT: TUGHLAKABAD: NEW DELHI-110020 C.NO. VIII/ICD/TKD/Export/Tech./23/17/part-II/9825-36 Date: 13.11.2019 Public Notice No. 42/2019 Subject: First time exporters, verification of documents - regarding Attention of all the Ex-porters (exporting goods from ICD TKD, New Delhi),' Customs Brokers and Member of the Trade is invited regarding submission of KY C documents and procedure to be followed in case of first time exporters and verification of genuineness of the exporters, who are exporting goods for first time through LCD TKD, New Delhi. 2. Representations have been received from first time exporters / other stakeholders highlighting problems faced during verification of documents by Customs. It has been represented that number of documents are being asked from them, which adds to the transaction cost and also leading to increase in dwell time. 3. With the objective to promote ease of doing business, reducing use of paper, to make export easier and hassle free and also to facilitate easy access of database of first-time exporters, procedure for KYC verification of first-time exporters would be as under: (i) A 'KY C cell' has been established at ICD-Export TKD, New Delhi headed by Deputy/Assistant Commissioner (Export Processing), ICD-Export TKD, New Delhi for verification of KYC details of first-time exporters. (ii) All such first-time exporters or their Custom Brokers shall (in addition to copy of IDC Certificate issued by DGFT), submit only document as mentioned in category-I and only one document from category-Il to the KYC Cell. CATEGORY-I (i) In case of Proprietorship Firm: Copy of Aadhar or Passport of the Proprietor; (ii) In case of Partnership Firm: Copy of Aadhar or Passport of all the Partners and copy of Partnership Deed [A partnership deed, also known as a partnership agreement; is a document that outlines in detail the rights and responsibilities of all parties to a business operation], or (iii) In case of Limited Liability Partnership: Copy of Aadhar or Passport of the designated Partners + Certificate of Registration issued by Registrar + LLP Agreement (Charter denotes its scope of operation).; (iv) In case of Company: Copy of Aadhar or Passport of the present Managing Director / any other Director + Certificate of Registration issued by Registrar + Memorandum and Articles of Association (Charter of the Company which defines its scope of operation); CATEGORY-II (i) A copy of Income Tax Return/ VAT or Sale Tax Return / GST Return filed for the previous / current year / month, as the case may be; or (II) Certificate from the Bank, with whom, the Bank Account is being maintained for the purpose of remittance of foreign exchange to the effect that account is being maintained satisfactorily. 4. Further, if an exporter has exported from any other Customs House and submits proof of past Export made, then, normally, fresh set of documents should not be insisted upon, except for random verification, wherever necessary. 5. It is being expected from Customs Brokers that they discharge their obligations as per Regulation 11 of Customs Broker Licensing Regulations, 2013 (relevant text reproduced below for reference) in proper form and manner and exercise all due diligence. 11. Obligations of Customs Broker. A Customs Broker shall - (n} verify antecedent, correctness of Importer Exporter Code {IEC} number, identity. of his client and functioning of his client at the declared address by using reliable, independent, authentic documents, data or information; and (o} inform any change of postal address, telephone number, e-mail etc. to the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be within one month of such change. PROCEDURE The first-time exporters can submit the required documents through email id: [email protected] or in person to KYC Cell at ICD-Export TKD, New Delhi under dated acknowledgement. (ii) The KYC cell (in case of first-time exporter), will open a separate file for each such first-time exporter, as the case may be and File no. should be mentioned in the Departmental Comment column of Shipping Bill, as the case may be. (iii) The Deputy/Assistant commissioner of Customs (KYC cell) will send a list of above-mentioned exporters on fortnightly basis to the CCCU for uploading the same on the Zonal website in the following format: LIST OF 'EXPORTERS WHO HAVE SUBMITTED KYC DOCUMENTS FROM 15.11.2019 TO------- Sr. No. File No. Name of Exporter GSTIN IEC No. (iv) The KY C Cell should get, the details submitted by such first-time exporter, verified with the help of SIIB. (v) ADC/JC in-charge of SIIB shall ensure that the physical verification of the address declared in the IEC is completed at the earliest in at least 10% of the cases. (vi) For verification of outstation addresses, Customs formation, nearest to that address, may be requested to verify the address of such first-time exporters. (vii) Officer responsible to complete verification of aforesaid KYC documents in SIIB should also make telephonic call to the concerned Bank Branch as mentioned in the IEC details (obtained from DGFT website} or in the copy of Bank statement submitted by the exporter to verify the genuineness of the Bank accounts against that IEC. (viii) It will be the responsibility of SIIB to complete the verification process within reasonable time limit and inform the results to KYC Cell on monthly basis. (ix) KYC Cell will then create a unique Digital ID of the said first-time exporter in the format TKDOOOX and should maintain details of all such first-time exporters in a register, including details of verification results received from SIIB. This register should be put up before jurisdictional ADC/JC on monthly basis. In case of any adverse report indicating mis-declaration, matter should be immediately reported to ADC/JC (SIIB) to initiate preventive measures including putting a suitable alert against such EC in ICES. Further, a suitable remark should be inserted in the database hosted on Zonal website against such first-time exporters. 6. This Public Notice will be effective from 15.11.2019. 7. Difficulty, if any, may be brought to the notice of Deputy I Assistant Commissioner (Export Processing), LCD-Export TKD in-charge of KYC Cell. Action to be taken in terms of decisions taken in the Public Notice should be considered as standing order for the purpose of officers and staff. (Sunil Tated) Commissioner LCD-Export TKO