Grant of No Objection Certificate for beaching of the vessel imported for breaking, with-out payment of customs duty in case of non-generation of customs duty challan — m/reg. - Customs - Public Notice No. 09/CCP/JMR/2023

OFFICE OF THE COMMISSIONER OF CUSTOMS (PREV.), SEEMA SHULK BHAVAN , Jamnagar - Rajkot Highway, Near Victoria Bridge, Jamnagar - 361001 Email ID: [email protected] Phone No.: (0288-2772701) Fax No.: (0288-2772702) Date: 10-05-2023 Public Notice No. 09/CCP/JMR/2023 Subject : Grant of No Objection Certificate for beaching of the vessel imported for breaking, with-out payment of customs duty in case of non-generation of customs duty challan m/reg. With reference to the above captioned subject, the Ship Recycling Industries Association (SRIA) have represented the difficulties being faced by them while granting of no objection certificate for beaching of vessels imported for breaking due to delay in generation of Challan for the payment of customs duty. 2. The Ship Recycling Industries Association (SRIA) have represented that sometimes the entire process of assessment of Bill of Entry gets delayed due to assessments being referred to the Faceless Assessment Group (FAG) by EDI System. As a result of delay in assessment, there is subsequent delay in generation of challan for the Payment of customs duty, which ultimately results in delay in grant of beaching permission in respect of vessels imported for breaking at SBY Alang. In such situation, the beaching which is apparently based on tide timings gets missed, and adds to the additional logistics cost for them. 3. With this, the association has requested for grant of no objection certificate for beaching of vessel imported for breaking just after filing Bill of Entry pending payment of Customs duty, due to delay in generation of challan for the payment of customs duty, subject to the grant of Customs Out of Charge only after payment of applicable customs duty. 4. It is observed that, in majority of cases, the customs FAG assessment is completed and consequent challan for the payment of customs duty is generated within 24 hours. However, sometimes the said Process of assessment and consequent challan generation gets delayed due to technical glitch in EDI System or due to any other reasons. In such cases, there may an issue of tide getting missed. 5. In view thereof, the above mentioned representation of the Ship Recycling Industries Association (SRIA) has been examined in the light of the existing practice along with provisions of Customs Act, 1962 and it is observed that, as a matter of general practice no objection certificate for beaching of vessel imported for breaking can't be granted just after filing Bill of Entry pending payment of Customs duty. However, in light of the difficulties being faced by the members of SRIA and as a measure of trade facilitation, the existing procedure @ for granting of no objection certificate for beaching is being relaxed provisionally to the extent given below, till the necessary amendment in Ship Breaking Code is introduced by the respective Ministry. 6. Accordingly, the provisional no objection certificate for beaching of vessel imported for breaking may be granted by Customs, subject to the compliance of all the following conditions specified as under: a. Bill of Entry has been filed in EDI module and subsequent query, if any, raised has also been complied with by the importer, but, Challan for the payment of customs duty is not generated even after lapse of 24 hours from the time of filing of Bill of Entry; b. Importer submits proof to the effect that at least 20% of the total payable Customs duty is already available in Electronic Cash Ledger maintained by ICES as credit: c. Importer submits an undertaking that they shall deal with imported vessel for breaking only after the payment of applicable customs duty and on the grant of Customs Out of Charge, irrespective of the beaching permission granted to them in the subject matter: d. Importers shall follow the Customs Act, Rules and Regulations issued thereunder including existing procedure as contained in the Standing Order No.s 03/1999 dated 18.10.1999, 04/1999 dated 18.10.1999, 05/1999 dated 01.11.1999 and 06/1999 dated 01.11.1999 issued by the then Commissioner of Customs and Central Excise, Rajkot. It is emphasised that, the importer shall not remove any material /any goods from the imported vessel before grant of Out of Charge by the Customs, which is to be given after payment of assessed duties and taxes. The responsibility of safety and security of the imported vessel and materials lies with the importer, 7. In light of the above, the importer may submit application for grant of NOC for beaching along with relevant documents before the concerned customs authority in case the conditions stipulated at para (6) above have been complied with. 8. It is reiterated that, there is no other change in the existing procedure followed by the customs as per Standing Order Nos. 03/1999 dated 18.10.1999, 04/1999 dated 18.10.1999. 05/1999 dated 01.11.1999 and 06/1999 dated 01.11.1999 issued by the then Commissioner of Customs and Central Excise, Rajkot. 9. Difficulties, if any, being faced, may be brought to the notice of the Additional Commissioner (Technical), Customs (Prev.), Jamnagar. (RAM NIWAS) Chief Commissioner (In-Situ)