Faceless Assessment - Measures for timely assessment of Bills of Entry and clarification on defacement of physical documents - Customs - PUBLIC NOTICE No. 63/2020

OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS CUSTOMS HOUSE : PORT AREA : VISAKHAPATNAM-530 035 F. No. P3/20/2019-AM Date: 13.10.2020 PUBLIC NOTICE No. 63/2020 Sub: Faceless Assessment - Measures for timely assessment of Bills of Entry and clarification on defacement of physical documents - reg. Attention of Importers, Customs Brokers and all other Stakeholders is invited to the Board's Circular No.45/2020-Customs dated 12.10.2020 on the above subject. Reference is also invited to Board's Circular No.40/2020-Customs dated 04.09.2020 stipulating the rollout schedule for implementation of Faceless Assessment pan India by 31.10.2020. The Board Circulars No. 28/2020-Customs, dated 05.06.2020, No.34/2020-Customs, dated 30.07.2020 as well as Instruction No. 09/2020-Customs, dated 05.06.2020 related to Faceless Assessment may also be referred to. 2. Board has reviewed the implementation of Faccless Assessment. While the implementation has been largely smooth, Board's attention has been drawn to some issues impacting the pace of assessment and clearances of consignments. As the prompt and timely assessment of Bills of Entry and clearance of imported consignments are key objectives of Turant Customs, these issues have been examined and remedial measures have been identified. Accordinghly, Board prescribes the following measures for Faceless Assessment: 3. Continuous Assessment: There may be possible delays in assessment when Bills of Entry (B/E) are assigned to FAGs in locations that are on an official holiday or when assessment is to be done on a closed holiday (say, Sunday). Further, time sensitive goods such as life-saving drugs or imports by security/defence and other Government agencies would require prompt Customs clearance at all times including outside the normal office hours. Hence, it is decided to make all Saturdays (except second Saturday) as working day for all the Faceless Assessment Groups across the country. In respect of time-sensitive/urgent consignments such as lifesaving drugs, security/defence related consignments etc. imported by Government and its agencies/PSUs ete it is advised that end use of such consignments in the B/E may be indicated for easier identification of such consignments. 4. Handling of queries: Trade is here by informed that reply to any query is to be provided at the first instance and ensure that complete details such as description of the commodity, brand name, model and any other specifications essential for the assessment are submitted at the time of filing the Bill of Entry. Furthe, it is advised that trade may upload all supporting documents like product/technical literature and mandatory documents, certificates at the first instance, which would help avoiding further queries and delays. It is noticed that at times, the documents are uploaded on e-Sanchit but are not linked to B/E, leading to a situation where Appraising/Assessing officer is unable to view the document and is thus compelled to raise a query. Hence, trade is advised to avoid such situation and ensure linking every uploaded document to the relevant B/E. The step by step guide in at https://www.icegate.gov.in/Download/ICESAdvisory_352020on_amendment_and_query_reply_with supp_docs_v2.pdf. This Office Public Notice No. 62/2020 this regard is available Dt.12.10.2020 may also be referred in this issue. 5. First Check issue: Upon review of the practice of the FAG officers resorting to First Check, it is clear that this practice needs to be streamlined both for purposes of uniformity across the country and different FAGs and also to address associated delays in assessment. Board has thus identified the following imports/situations where First Check (this term as well as the term Second Check is being used as it is well known in the field and trade) shall ordinarily be resorted to by the FAG officers for carrying out assessment: (a) Old and used machinery/capital goods provided the Inspection/Appraisement report from the country of export is not available in the format prescribed or is not produced at all or is insufficient as per Circular No.07/2020-Customs, dated 05.02.2020. (b) Old and used goods where the examination is essential to determine valuation, classification, and other parameters. This does not include the cases covered under 2 nd proviso to Section 46 (1) of the Customs Act, 1962. (c) Articles of jewellery, precious metals, imitation jewellery where valuation must be ascertained by a jewellery expert. (d) Cases of re-import of goods under various exemption notification, which requires establishment of identity to the satisfaction of Deputy Commissioner/Assistant Commissioner of Customs. All other instances, including the FOc (Free of Charge) and temporary import consignments, must ordinarily be resorted to only Second Check. However, in the exceptional instance when the FAG has genuine reasons to believe that a First Check examination report is required for completion of assessment i.e., determination of valuation, classification, rate of duty, and other parameters relevant for determination of Customs duty, the same may be ordered only with the approval of Joint Commissioner/Additional Commissioner in the Customs Automated System. It is clarified that this would include the cases where importer himself requests for First Check. 6. Re-aSsessmentof B/E: Importer may seek re-assessment claiming that he has forgotten to claim an exemption or he is in possession of some document that requires an element such as freight etc. to be changed. The various scenarios and the prescribed routes for carrying out reassessment are as follows: (a) Scenario I: Where the amendment is requested before 00C and would impact the assessment. Re-assessment in this scenario would be resorted to only if the B/E has not been given 00C. The request by the importers for those amendments impacting assessment would be sent to FAG for approval and consequent re-assessment. The above Scenario1 would apply in following instances: i. The self-assessed B/E is verified and found in order and the importer seeks an amendment that may impact the assessment. Once recalled for re-assessment, the B/E would be sent for consideration of the same FAG which had re-assessed the subject B/E in previously. ii. The self-assessed B/E is facilitated post which the importer seeks an amendment that may impact the assessment. In such case, the B/E would be sent to the any of the FAG for assessment by the Customs Automated System. ii. The self-assessment made by the importer is questioned by the FAG and after due process, the assessment is changed. In this case the importer may either accept the new assessment or seek an assessment order. In both situations, if the importer subsequently seeks an amendment impacting the assessment, the B/E would be sent for consideration of the same FAG which had re-assessed the subject B/E previously. (b) Scenario 2: Where the re-assessment is requested before O0C but would not impact the assessment. This scenario covers situations like requests for amendments like change in details of invoice based on the documentary evidence, short shipments, change in BL/AWB or fulfilment of conditionalities decided by assessment such as Bond conditions etc. These amendments continue to be approved by PAG. (c) Scenario 3: Where the re-assessment is requested after 00C has been given under Section 47 of the Customs Act, 1962. This scenario covers situations where re-assessment with or without amendment is to be carried out for any reason after 00C has been given. The same shall continue to be done by PAG. The re-assessment being done by Customs officer arising out of various reasons is presently done by the PAG. This practice will continue. 7. Certificate of Origin: (i) Board has received feedback that there is need for clarity with respect to requirement of submission of original hard copy of a Certificate of Origin (COO) issued under various Free Trade Agreements. As seen, para 4 of Circular No.42/2019-Customs, dated 29.11.2019 states the field offices must ensure that no physical copy of any supporting document is submitted and every relevant document is submitted only electronically via e-sanchit either by the beneficiary or by the Participating Government Agency . Likewise, para 3.1 of Circular No.32/2020-Customs, dated 06.07.2020 states: (i) The document verification by Customs officers at Assessment and Customs Compliance Verification (CCV) stages would normally be based on the documents uploaded in the e-Sanchit, not requiring physical submission of documents. However, if in any exceptional situation the physical submission of documents is required by Customs, for defacement or validation, such submission would be made only at the TSKs. (ii) Documents requiring verification during examination for validation with goods would continue to be done during examination, as at present. (iii) One or more TSKs may be set up for the convenience of the trade (iv) Suitable procedures are to be devised for handling safe keeping of the documents produced at TSKs. ldeally these documents should also be kept in electronic form. For uniformity, Board hereby instructs all field formations to adhere to directions in Circular No.32/2020-Customs, dated 06.07.2020, which requires submission of original hard copy of a COO. This approach is in line with the Operational Certification Procedures for the various Trade Agreements notified in terms of section 5 of the Customs Tariff Act, 1975. 8. Grievance Redressal: In addition to other functions, Turant Suvidha Kendra (TSK) at the Port of Import would act as Facilitation Helpdesk for any grievance related to clearances of the B/E filed in the port. The list of the TSKs and their email and telephone/ contact details are available at http://www.cbic.gov.in/htdocs-cbec/enquiry-points. To serve as a single point interface for the escalation of any issues including the B/Es in the FA requiring urgent attention, shri. Shiril Saroj, Addl Commissioner, Custom House, Vizag, has been designated as Nodal Officer in the Custom House. He may be contacted by e-mail [email protected]. 9. Difficulties, if any, faced in implementation of this Public Notice may be brought to the Notice of Additional/Joint Commissioner of the Customs of this Custom House. (Dr. D.K. Srinivas) Principal Commissioner of Customs