Regarding manual filing and processing of bills of entry / shipping bills - stringent checks required to prevent misuse - Customs - F.No.401/81/2011-Cus.III

Instruction F.No.401/81/2011-Cus.III Government of India Ministry of Finance Department of Revenue Central Board of Excise Customs Room No. 253-A, North Block, 4 th May, 2011, New Delhi-110001. To, All Chief Commissioners of Customs/ Customs (Prev.)/ C CE, All Directors General of CBEC, All Commissioners of Customs / Customs (Prev.) / C CE All Commissioners of Customs Central Excise (Appeals). Subject: Regarding manual filing and processing of bills of entry / shipping bills - stringent checks required to prevent misuse Sir / Madam, Recent past DRI has detected several cases in which bills of entry/shipping bills were processed manually or manual clearance was allowed on EDI documents. Such cases have indicated the possibility of illegal import / export of restricted / prohibited goods and substantial loss of revenue to the Government exchequer. These cases highlight the high propensity to commit fraud and duty evasion that is associated with the manual processing of documents at any stage in the clearance process. It also needs to be noted that neither Directorate of Systems nor Directorate of Valuation are capturing the data relating to exports in respect of non-EDI locations. Most Customs locations have devised their own list of cases for which manual processing is allowed on a regular basis according to public notices and standing orders issued in this regard. 2. The matter has been examined in the Board. In order to redress the issue, it has been decided that only in the rarest of rare and genuine cases manual processing and clearance will be allowed and data for manual documents is compulsorily entered and transmitted at all locations within the stipulated time period. 3. The Board has taken a serious note of the cases of misuse detected on account of manual documentation as well as of casual manner in which this facility is being extended, which is prone to be detrimental to revenue. Accordingly, to redress the issue it has been decided that manual processing and clearance of import/export goods shall be allowed only in exceptional and genuine cases which for some reasons cannot be processed through EDI. This authority should be vested in a senior officer of the level of Joint/Additional Commissioner of Customs and it should be closely monitored by the Commissioner of Customs. Needless to state the facility of manual documentation should be an exception to the rule of EDI processing and should be withdrawn no sooner EDI processing is possible. 4. The Board has also decided that data for manual documents should be compulsorily entered and transmitted at all locations within the stipulated time period. For this purpose the Commissioner of Customs shall nominate an officer of the level of Assistant/Deputy Commissioner of Customs to oversee this task and shall closely monitor the same to ensure there is no deficiency in data quality or gap in entry and transmission of data. 5. The Board desires that the aforementioned instructions may be strictly complied with. Difficulties, if any, noticed in this regard may be immediately brought to the notice of the Board through the Chief Commissioner concerned. Needless to say any failure in complying with these instructions will have a revenue angle, and hence inevitable consequences. Yours faithfully, Internal Circulation: As usual. (Vikas) Under Secretary (Customs-III/VI) Telefax-011-2309 5532 Fax-011-2309 2173 E-mail- [email protected]