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TMI BlogImplementation of Risk Management System (RMS) in Imports at ICD BhambholiX X X X Extracts X X X X X X X X Extracts X X X X ..... 3. The objective of the Risk Management System is to strive for an optimum balance between the facilitation and enforcement. It seeks to concentrate the department's resources on relatively higher risk areas so that the checks exercised are meaningful and effective. The RMS will reduce the burden of routine assessments so that the officers are enabled to devote more time to transactions that require closer scrutiny, thereby improving the quality of work. It will also significantly reduce the dwell time and transaction costs for compliant importers, while providing stringent enforcement against non-compliant ones. RMS does not substitute the duties and responsibilities that officers are required to discharge in their functions. It should, therefore, be seen as a tool for improving the performance of the department and a decision support system. 4. The RMS Process: Bills of Entry and the Import General Manifest (IGM) filed electronically in the ICES either through the Service Centre or through ICEGATE mode will be forwarded to the RMS. The RMS will process the Bill of Entry and the IGM through a series of steps and generate an electronic output for the ICES. This output wil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contained in their bills of entry and the system will generate the Bill of entry Number and print a copy of the Bill of Entry with the TR6 challan for duty payment. The Importer/ CHA will make the duty payment (if any) before proceeding to take delivery of the goods. Though self assessment facility and examination waiver are given to the Authorised Economic Operators, the compulsory compliance requirements (CCRs) applicable to the imported goods must be fulfilled by the importer/ CHA before seeking out of charge. The importers/CHAs have been advised to keep ready all certificates, permits, licenses or any other documents which are essential for clearance of goods or for availing any duty exemption. CHAs/Importers have also been advised to submit all such details of certificates in the annexure filed for a B/E at the ICEGATE/Service centre. Soon after goods registration is done in system and the marks and numbers (seal number and integrity of the seal in the case of PCL) are verified, Appraising officer/ Superintendent will give out of charge in the system, after collecting all necessary documents (listed below) and after verifying that compulsory compliance requirements are fulfill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive aspects of the B/E which are not referred to in instructions. Whenever the Officer assessing BE feels that any specific RMS instruction is not in tune with the declaration in the B/E, he / she should enter a detailed comment in the departmental comments and proceed to take decision as per law, The Risk Management System will also provide to the officers a category of instructions termed Compulsory Compliance Requirements (CCRs). This term refers to compliance requirements that have to be mandatorily fulfilled such as clearance from the Other Governmental Departments (OGDs) like Drug Control authorities, Animal Husbandry authorities, BIS certifications, Plant and Quarantine Authorities etc. Similar instructions would also be provided by the System where any bonds, undertakings certifications etc., are required to be furnished for the purpose of claiming any exemption notifications. It may be noted that while all efforts have been made to make the RMS database containing these instructions as comprehensive as possible, certain requirements might have escaped notice. The officers, therefore, should bear in mind that these are mandatory requirements under the Allied Acts or under t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed only once processed by RMS. While all critical parameters which have a bearing on duty/ levy should not be routinely allowed to be amended and due caution should be exercised while allowing amendments, it should also be ensured that undue delay should be avoided in the course of allowing or rejecting the same. 9. Examination: The examination of all RMS selected bills shall be carried out as per the assessing officer's examination order and the instructions communicated by the RMS. Certain bills of entry may be directly routed by the RMS for examination without any assessment by officers. In such cases, the RMS instructions for examination should be treated as examination orders. The officers shall bear in mind all existing standing orders and circulars issued by the department, while performing their work. The examining officers/ inspectors must ensure that the goods under examination tally with the declared description, including critical parameters like brand, model, make, number, specification, grade, purity, configuration, capacity, denier etc., which may have a direct bearing on valuation, classification or extension of exemption benefit. The examination of the goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able to a very wide range of imports. The list below cites illustrative instances of such requirements. The Officer giving the out of charge shall also ensure that the consignment complies with such requirements, besides the CCRs printed in the B/E and appearing in the examination instructions column, before clearance: a. As per the CBEC Circular no. 39/04 dated 03/06/2004 read with the Plant Quarantine (Regulation of Import into India) 2003, phytosanitary certificate is essential for packaging material used in imported goods. This circular is applicable to all goods covering every CT H imported with packaging made of material of agricultural origin. b. DGFT notification no. RE-44 dated 24/ 11/2000 on labeling and marking rules for imports stipulates that MRP, generic name of the product, month and year of entry into trade channel, name of the importer and address and quantity in standard units must be carried prominently on the principle display panel of the packages. This requirement must be met before customs clearance. c. Import of beef in any form and any product containing beef in any form is prohibited as per note 3 of General Note to the Import Policy. A declarat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lan b, First check copy of the Bill of Entry assessed under first check assessment scheme c. Finally assessed Bill of Entry d. Invoice/ packing list. Fax / E-mail copies of Invoice and other documents duty certified by the Importers may also be accepted for clearance of consignments in view of CBEC Circular No, 40/98-Cus, dated 11.06.98 issued from F.No. 450/81/98 -cus.IV, e, Certificate of origin, wherever required f. Exemption Certificate where required, when concession in duty has been claimed, based on any condition under any exemption notification g. Bill of Entry declaration with GA IT declaration, duly signed by the importer and CHA declaration h. Master Bill of Lading i. House Bill of Lading j, Technical literature etc., wherever required k. ADC clearance, wherever required 1. Other documents specified in the Compulsory compliance instructions generated by the RMS m. Any other documents submitted by the Importer/ CHA, All these documents should be neatly kept in a docket, which will have a check list on the top, containing the documents listed supra. The Check list shall be signed by the OOC officer and the representative of the CHA/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emption Certificates etc.: If the BE is selected for assessment and/or examination, the officers shall verify these details in the system before clearance. For all Facilitated Bills of entry the Out of Charge officer will be responsible to verify the entry in the system. If bond related details are not correct or if any critical document is not available, BE can be referred to assessment group with the permission of the Additional [Joint Commissioner in charge of the Shed. It is further stated that the EDI system will take care of debits in respect of all existing running bonds and where the importer specifies the bond number by system-driven debits. The trade will approach the Bond Clerk in the Appraising Group and AC/DC in-charge of the Group for Bond or UT acceptance. Further, activities like defacing/ manual debiting of certificates issued by various authorities like Central Excise, AEPC, TEXPOCIL etc, which were hitherto being handled by the Appraising Group will now have to be discharged by OOC officers, in all such cases where the bill of entry has not been marked to Assessing Office by RMS. Please note that the CHA/ Importer can give all the relevant details of the Undertak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... very similar to the appraiser's interface, currently available. A limited facility for changing duty related aspects of the BE has been provided in auditor's screen. The Auditor can change rate of duty, deny a notification and differential duty will automatically be computed by system. The auditor is also given specific audit instructions by the RMS. These audit instructions can be accessed by clicking on the View _ RMS instructions menu. These instructions form an assist and are intended to guide officers in conducting audit. It needs to be noted that auditors need not limit their scrutiny to the strict confines of these audit instructions. The auditor has freedom to go beyond audit instructions and scrutinize aspects of the BE which may not have been referred to in the instructions, ii, During the course of audit, the auditor may find it necessary to elicit additional information from importer or seek clarifications from him. It needs to be realized that the ease of eliciting such information from the importer will be considerably dilute, during PCA stage as compared to the promptness with which replies to queries raised during live processing of Bills are receive. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ories to the importer. Monitoring and improving the data quality of declarations by the importer is one of the important functions of the Audit in the post-audit regime. Audit officers can issue advisories to the importer with a view to improving data quality of declarations. An advisory will work in a manner similar to a query and will be issued only after approval by AC/DC (Audit). The key difference between a query and an advisory is that while a query is a request for information/documents from the importer, and holds up the BE from further processing until a reply is received, no reply is envisaged for an advisory. Advisories should be resorted to in cases not involving revenue implications. vi. If the Audit Officer decides to raise an audit point which has revenue implications he can propose one of the following options to the AC/DC (Audit) for approval: a. Issue of a consultative letter (Compliance advisory) b. Issue of a demand note A consultative letter is a mechanism to promote the culture of voluntary compliance by importers in the audit process. It is a tool to operationalize the benefits to the importer by paying up the duty/ interest indicated in the consu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The receipts of the dockets will be acknowledged by audit section by an officer designated for this purpose by the AC/DC (audit). The rest of the dockets should be sent to the CRA with a forwarding memo listing the BE No's as per existing practice. 19, Ensuring un-interrupted messaging between the ICES and RMS: The ICES System Manager will designate officers in the EDI section for monitoring flow of EOD messages from the ICES to the RMS and also the reverse flow of PCA messages from RMS to ICES. Any interruption in the same should be brought to the notice of the LRM or the Addl. / Joint Commissioner of Audit as the case may be. The system manager will ensure that all the B/ Es which have been given out of charge, are submitted to the RMS in the EOD files. If BES are not selected for PCA by the RMS, such BES will be sent to history. Only the selected BES will be queued by the ICES to the audit officers for PCA. ICES will send to history all BES for which no PCA message is received. 20. Provisional Assessment: Whenever there is a relationship between the importer and the supplier, as defined in the Customs valuation rules, the importer/ CHA may indicate this requirement i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inadequate, it should be reported to the LRM. Such feedback shall be routed to the NRM through the office of Local Risk Manager and will be used for updating the NRM. 23. It must be noted that the prime objective of the RMS is to enhance facilitation for compliant importers and compliant consignments. Therefore, all officers, while being vigilant against abuse, must at all times act with a sense of responsibility and avoid doing anything that would cause undue delay or harassment to legitimate trade. 24. In case of any difficulties faced in the implementation of the Risk Management System, the Local Risk Manager (LRM), whose address and contact particulars are given below, may be contacted: Shri. Pawan Kumar Additional Commissioner System Manager Local Risk Manager (Admin) Customs, Pune. Office of the Commissioner of Customs Custom House 41/ A, Sassoon Road, Pune - 411 001. Telephone No.: 020-26051842 E-mail: [email protected] 25. The above said Public Notice may be downloaded from www.punecustoms.nice in. the website 26. Difficulties, if any, may be brought to the notice of the undersigned 27. Hindi version will follow. (M ..... X X X X Extracts X X X X X X X X Extracts X X X X
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