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TMI BloglmpIementation of Risk Management System (RMS) in ImportsX X X X Extracts X X X X X X X X Extracts X X X X ..... l be processed under the RMS. 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. ft 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) fled 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 fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... horized Economic Operator (AEO) will be granted self appraisal based on the declarations 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 Authorized Economic Operator (AEC), the compulsory compliance requirements (CCRs) applicable to the imported goods must be fulfilled by the importer/CHA before seeking out of charge. The importers/CBS 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. CBs/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 FCL.) are verified, Appraising officer/ Superintendent will give out of charge in the system, after collecting all necessary docum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstructions. The officer has the freedom to go beyond the instructions and scrutinize other sensitive 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, theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion and consequent treatment by risk management system as a bill of entry is processed 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 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, classifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich are very general in nature or are applicable 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 cir. no. 39/04 dated 3/6/04 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 CTH imported with packaging made of material of agricultural origin. b. DGFT notification no. RE -44 dated 24/11/2000 on labelling 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g list. Fax / E-mail copies of Invoice and other documents duly 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.lV. 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 GATT declaration, duly signed by the importer and CB declaration h. Master Bill of Lading i. House Bill of Lading j. Technical literature etc., wherever required k. ADC clearance, wherever required I. Other documents specified in the Compulsory compliance instructions generated by the RMS m. Any other documents submitted by the Importer/CB. 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 CB/Importer While signing the documents the OOC office, shall put his name stamp under his signature. 13. Changes in Bond management: For B/Es filed in Grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Groups by RMS. Please note that the CB/Importer can give all the relevant details of the Undertaking/Duty exemption certificate/Central excise certificate etc in his annexure to the BE. In all such cases the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he BE has been Provided In audit 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 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 diluted, during PCA Stage as compared to the Promptness with Which replies to queries raised during live Processing of Bills are received Thus queries during the audit process have to be limited to the minimum and should be resorted only Where there is a real information gap. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 operationalise the benefits to the importer by paying up the duty/ interest indicated in the consultative letter. The consultative letter has to be approved by AC/DC (Audit) and further by ADC/JC (Audit) before it gets issued to the importer. On receipt of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt 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 CRM 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/ CB may indicate this requirement in the relevant SVB columns in the Annexure filed at the service centre / through ICEGATE. The ICES will assess the BE provisionally based on this indication. The LRM sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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