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TMI BlogStreamlining of Customs post Clearance Audit (PCA) work — InstructionsX X X X Extracts X X X X X X X X Extracts X X X X ..... ustoms, dated 08.01.2019 , the Customs Post Clearance Audit Manual, 2018 and the Instruction No. 18/2020 dated 06.10.2020 relating to Customs Post Clearance Audit. Under the new Customs Post Clearance Audit (PCA) scheme there are Transaction Based Audit (TBA), Premise Based Audit (PBA) and Theme Based Audit (ThBA) and upon review thereof the findings are: i. There is a huge pendency in all the three types of Audit; ii. There is no proper system of reporting; iii. Monitoring of Customs PCA performance is not effective; iv. The follow up mechanism of audit detections needs strengthening; v. Time lines need to be streamlined for various activities of Customs PCA; vi. Monthly meetings to be streamlined; vii. Supervision by the Zonal Chief Commissioners is not effective and viii. Quarterly bulletins need improvement in term of content and structure. 2. Further, the Board has noticed several gaps in the existing reporting system. These include absence of proper formats for reporting, lack of prescribed timelines and inadequate performance monitoring mechanism etc. 3. The Board has examined the matter and accordingly it has been decided to issue the fol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion with the committee formed as per Para 3.2.2 of these instructions. The risk parameters will be dynamic in nature and would keep on evolving as per feedback received and additional information available. The number of entities to be selected for audit during a financial year is to be calculated as per the capacity to conduct audits as informed by the Audit Commissionerates and finally decided by the committee. ] 2 [ 3.2.2. Selection of Premises : The DG Audit shall prepare the list of auditees for PBA in consultation with the DGARM. For this purpose, a committee headed by the DG Audit consisting of all the Commissioners of Customs (Audit), representative from DRI HQ and the Principal ADG/ADG, NCTC, Mumbai shall meet in February every year to finalise the list of auditees for PBA for the next financial year, and thereafter as felt necessary. The final list shall be communicated to the Audit Commissionerates before 31 st March. The Audit Commissionerates shall plan PBA for the year in such a way that the number of auditees is evenly spread in all the months and all selected entities are audited. It must be ensured that every entity selected should be subjected to the full ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s relating to PBA and ThBA (i.e CUS PCA-2 and CUS PCA-3) shall be submitted online by the respective zones having Audit Commissionerates, the reports in respect of TBA (CUS PCA-I) and status of detections (CUS PCA-4) shall be submitted online by all the Zones including the Zones having Audit Commissionerates. All the Commissionerates shall upload the details in these formats in the DDM portal before 10 th of every month from 01.04.2021 onwards. 3.5. Post Audit Compliance cell (PACC) 3.5.1. All the Customs (Audit and jurisdictional) Commissionerates shall have PACC to ensure effective monitoring of Customs PCA. The PACC of Customs (Audit) Commissionerates shall monitor TBA, PBA and ThBA, as the case may be. The PACC of jurisdictional Commissionerates shall monitor TBA and will also coordinate with the audit Commissionerates on PBA and ThBA. The ADC/ JC rank officer shall supervise the proper functioning of PACC. 3.5.2. Principal Commissioner/Commissioner of Customs (in charge of audit or jurisdictional Commissionerate shall convene monthly meeting of PACC and shall send a consolidated monthly report to the ADG Audit of the concerned Zone within seven days of the meeting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee headed by DG Audit, consisting of all the Commissioners of Customs (Audit), representative from DRI HQ and the Principal ADG/ADG, NCTC, Mumbai which meets in February every year to finalise list of auditees for PBA for the next financial year, and thereafter as felt necessary, ] c) committee headed by DG Audit, consisting of all zonal Chief Commissioners to review TBA meets on a half yearly basis, and d) committee of Commissionerates of Customs (audit and jurisdictional) headed by zonal ADGs of DG (Audit) to review TBA on a half yearly basis. v. activities done in terms of different timelines for ThBA; vi. details of MCM held during the quarter, and vii. half yearly reports from the Zonal Chief Commissioners on their review of 5% of audit reports on a random basis. 4. In the Customs PCA Manual, 2018, any aspect which is inconsistent with the above instructions shall be brought to notice for suitable modification of the manual. In case of a conflict the provisions of this Instruction will prevail. 5. The difficulties, if any, faced in implementation of these instructions may be brought to the notice of the Board. Encl.: Annexure-1, 2, 3 and 4. (S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fic mandate to the jurisdictional Commissionerates on the scope and objective of the visit and the areas to be focussed during such visits. Generalised terms of reference shall be avoided. 4. Substituted vide Instruction No. 27/2023- Customs dated 06-09-2023 before it was read as, 3.3.1. Selection of themes: The DG Audit shall convene half yearly meetings of the committee consisting of all the Principal Chief Commissioners/ Chief Commissioners in charge of Customs (Audit) Commissionerates. The committee shall meet in January and July to select the themes for ThBA for the first and second halves respectively for each financial year- 5. Substituted vide Instruction No. 27/2023- Customs dated 06-09-2023 before it was read as, Annexure-1 PAC-1 Transaction Based Audit (TBA) Commissionerate : Month : Date of Last MCM : (Amount Rs. in Lacs) Category Total no. of BEs/SBs given OOC/ LEO during the month Opening Balance of pending TBA No. of BEs/SBs selected for TBA % BEs /SBs Selected during the month No. of B/Es or S/B audited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Note : 1. Captured all the information given in the formats in Audit Manual and as suggested by Commissioner (RI I) 2. Opening Balance should reflect total number of pending TBA as on 1st April, 2020 3. During the month Figures should reflect figures for the reporting month only but in the first report for the curre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Export Total Grand Total (Amount Rs. in Lacs) Detections Made During the month Detections Made Upto the month Amount of Spot Recovery Made Total Recoveries Made During the month (including Spot Recovery) Total Recoveries Made Upto the month (including Spot Recovery) No. Duty Amount No. Duty Amount No. Amount No. Duty Amount No. Duty Amount 9 10 11 12 13 14 15 16 17 18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1st April, 2020 3. During the month Figures should reflect figures for the reporting month only but in the first report for the current Financial Year During the month figures should be from 1 April, 2020 to the reporting month 4. Upto the month figures should reflect cumulative figures for the reporting Financial Year Annexure-3 PCA-3 Theme Based Audit (ThBA) Commissionerate : Month : Date of Last MCM : (Amount Rs. in Lacs) Year of Selection Theme No. Theme Selected Total Number of Importers/ Exporters selected for Audit for the reporting year Opening Balance of pending ThBA No. of Importers / Exporters selected for Audit No. of Audits Conducted During the Month Upto the Month During the Month Upto the Month 1 2 3 4 5 6 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 11 12 13 14 15 16 17 18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ThBA PBA TOTAL (Amount Rs. in Lacs) Disposal During the Month Dropped on Merit by Competent Authority before MCM Dropped on Merit in MCM Recovery Made SCN Issued Total Disposals during the month (Col.10+12+14+16 and 11+13+15+17) No. Amount No. Amount No. Amount No. Amount No. Amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as suggested by Commissioner (RI I) 2. Opening Balance should reflect total number of pending PCA as on 1st April 2020 3. During the month Figures should reflect figures for the reporting month only but in the first report for the current Financial Year During the month figures should be from 1 April, 2020 to the reporting month 4. Upto the month figures should reflect cumulative figures for the reporting Financial Year 6. Substituted vide Instruction No. 27/2023- Customs dated 06-09-2023 before it was read as, a) committee headed by DG Audit, consisting of chief commissioners in charge of Audit Commissionerates meets in January and July every year to decide the themes for ThBA, b) committee headed by the DG Audit, consisting of Commissioners of Customs (Audit), representatives from DRI HQ and ADG in charge of Customs in DG ARM; meets in February every year to finalize the list for PBA, - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxmanagement - taxmanageme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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