Inspection of ICDs/CFSs/AFSs - CBEC's Customs Manual 2023 - Customs

9. Inspection of ICDs/CFSs/AFSs 9.1. It is necessary that each ICD/CFS is closely monitored by way of some sort of audit /visits to ensure that the performance of ICDs/CFSs is of desired standards and requested to put a system in place and take necessary action in a time bound manner. 9.2. Therefore, Board has decided to put in place a proper system for regular inspection for ICDs/CFSs. Such a system would ensure better functioning of ICDs/CFSs in future and would be of great benefit to the importers and exporters using these facilities. Periodical inspections and remedial actions would also avoid these kinds of audit objections. It will bring accountability, standardization and better facility for cross-border trading and in turn improve case of doing business. 9.2.1 The jurisdictional Commissioner at the beginning of every financial year shall chalk out an action plan to conduct inspection of ICDs/CFSs in their jurisdiction, by an officer of the rank of Deputy / Assistant Commissioner or above (who is not in-charge of such ICD/CFS) once every financial year probably in the first quarter of the financial year. 9.2.2 A report on the inspection conducted shall be submitted to the jurisdictional Commissioner of Customs with copy to Chief Commissioner concerned in the proforma given as per Appendix IV. 9.2.3 The jurisdictional Commissioner of Customs upon receipt of the inspection report shall take remedial action wherever deficiencies arc noticed including penal action on the defaulting ICDs/CFSs. 9.2.4 Normally the operations and records in respect of the previous financial year shall be covered in the inspection. 9.2.5 For the ICDs/CFSs, which have not been inspected/audited so far, the initial inspection shall be for the period of last five years or from the date of commencement whichever is earlier. 9.2.6 The Directorate General of Performance Management during the inspections of field commissionerates, done by them shall also examine the records relating to the inspections of ICDs/CFSs. [Refer Circular No. 44/2020 dated 08.10.2020]