Customs Audit – What you 'The Importer' Should Know - 2018

Customs Audit Regulations, 2018

What is a Customs Audit?

A Customs audit is an evaluation of company practices and records.

The audit assists in judging the integrity of information supplied under self-assessment and the level of compliance with legislative requirements.

As an importer or exporter, you are legally responsible for the accuracy of information supplied to Customs, even though you must use a Customs Broker to prepare and lodge your declarations. For your own benefit, ensure you examine and retain all documents supplied to Customs, check them for accuracy, and advise your broker of any errors.

Legal Framework

The legal framework for PCA operations are covered within the Customs Act No. 7 of 2013. 

How we work?

To help business move goods quickly, Customs cannot scrutinize every transaction. Instead audits are used to confirm the integrity of information supplied to us. Customs principal objective is to maximize voluntary compliance and eliminate future errors.

Failure to retain adequate records

All relevant commercial documents must be retained for five years from the date of the transaction with Customs

notification no 45/2018, non tariff dated 24.05.201

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#custombrokers

#import Export 

Pan India strike by Major Port Workers on 28th May 2018

The National Coordination Committee of the six federations of Major Port workers has decided to call for a nationwide one-day token strike on May 28 and serve notice of an indefinite strike on or after May 30 at all the Major Ports against the lethargic and casual attitude of the management of the ports and the Ministry of Shipping in settling the demands of the federations submitted for revising the existing wage structure, service conditions, including pension benefits.

The efforts of the federations to seek the intervention of the MoS (Ministry of Shipping) to resolve the issues have been futile as no discussion has taken place with the Ministry even after repeated requests.

The national co-ordination committee of six federations of major port workers also decided to call for a nationwide one-day protest strike on 28 May against “the casual attitude of the ministry of shipping and Indian Ports Association (IPA) in settling the demands of the port workers for revising the existing wage structure and other service conditions, including pensionary benefits with effect from January 2017 consequent to the expiry of the existing wage settlement”.

Major Ports in India

• Kolkata Port 
• Paradip Port 
• New Mangalore Port 
• Cochin Port 
• Jawaharlal Nehru Port 
• Mumbai Port 
• Kandla Port 
• Vishakhapatnam Port 
• Chennai Port 
• Tuticorin Port 
• Ennore Port 
• Mormugao Port 
• Port Blair Port

#strikeatport

#customclearanceport

#customcleraneaticd

E-way Bill

Implementation of online DO and E- Payment facilities on Port Community Systems (PCS) Rolled out by Indian Port Association (IPA)

Please be informed that the several initiatives which have helped the EXIM trade in reengineering the process for clearance of import cargo / Import Clarence .  One such initiative has been to reduce the hassles faced by members for taking DO from Shipping lines. 

The association were in constant dialogues with the Ministry of Shipping and other Stakeholders to work out a simplified process. 

One of the landmark initiative has been the E Payment gateway facility implemented by IPA for e-invoice payment at PCS portals vide letter No. IPA/ICTD/PCS/PG/2018/3 dated 04.05.2018.

      This facility will help members to make the payments directly against the invoices and this facility comes with all the available payment options.

Members are requested to take note of the same and make use of this facility provided by PCS.

This will help logistics partner  as well clients /Importers /Traders for faster clearance of cargo from port.

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#LogisticsInIndia 

Procedure of issuance of gate pass at ICD TKD (Tughlakabad) has been changed

Please be noted that the procedure of issuance of gate pass at ICD TKD has been changed and now there is no requirement of presentation of paper “DO” for issuance of gate pass.

If the delivery order is made available “online” by the shipping line and the same is reflecting at CONCOR system, gate pass will be issued without manual/paper DO.

Please refer Public Notice dated 27.03.2018 issued by CONCOR, for your better understanding.

This will help speedy clearance of Import Shipment at ICD TKD ( Tughlkabad), it will also help Custom House agent and Freight forwarders as well as no need to send the field executive at port in person.

Freight forwarders need to be take care before making payments to shipping line as once DO get online shipment can be delivered without paper Delivery order ( even without surrender of Bill of Leading) 

#DO    #deliveryorder     #Freight forwarding 

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Export Procedure Under GST REGIME - A HUGE RELIEF TO EXPORTERS

#CHA

Exports under Bond/Letter of Undertaking

"RULE 96A. Refund of integrated tax paid on export of goods or Services under bond or Letter of Undertaking. - (1) Any registered person availing the option to supply goods or services for export without payment of integrated tax shall furnish, prior to export, a bond or a Letter of Undertaking in FORM GST RFD-11 to the jurisdictional Commissioner, binding himself to pay the tax due along with the interest specified under sub-section (1) of section 50 within a period of -

(a)		fifteen days after the expiry of three months [or such further period as may be allowed by the Commissioner] from the date of issue of the invoice for export, if the goods are not exported out of India; or
(b)		fifteen days after the expiry of one year, or such further period as may be allowed by the Commissioner, from the date of issue of the invoice for export, if the payment of such services is not received by the exporter in convertible foreign exchange.………."

In this regard, Board has also issued Notification No. 37/2017 - Central Tax dated 4th October, 2017 specifying the related conditions and safeguards for furnishing a Letter of Undertaking in place of a Bond by a registered person who intends to supply goods or services for export without payment of integrated tax as under;

(i)		Exporters without payment of integrated tax shall be eligible to furnish a Letter of Undertaking in place of a bond except those who have been prosecuted for any offence under the Central Goods and Services Tax Act, 2017 or the Integrated Goods and Services Tax Act, 2017 or any of the existing laws in force in a case where the amount of tax evaded exceeds two hundred and fifty lakh rupees;
(ii)		The Letter of Undertaking shall be furnished on the letter head of the registered person, in duplicate, for a financial year in the annexure to FORM GST RFD - 11;
(iii)		Where the registered person fails to pay the tax due along with interest, within the prescribed period, the facility of export without payment of integrated tax will be deemed to have been withdrawn.

Furthermore, in order to promote consistency and uniformity in the trade, Board, vide Circular No. 8/8/2017-GST dated 4th October, 2017, has clarified that exporters shall furnish the duly filled up FORM GST RFD-11 to the jurisdictional Deputy/Assistant Commissioner having jurisdiction over their principal place of business. It is also clarified that the LUT shall be furnished on the letter head of the registered person in duplicate along with self-declaration to the effect that the conditions of LUT have been fulfilled. Accordingly, it has been prescribed that the LUT shall be accepted unless there is specific information otherwise.

Procedural Bottlenecks

 The exporters have been facing grave difficulties in submitting LUT with the jurisdictional officers having jurisdiction over their principal place of business. It has been observed that procedures to submit LUT manually to the jurisdictional officer have become a matter of great difficulty and are fraught with complexities, since humongous documents are being insisted upon by the department making a complete departure from the intended policy of the government. It is seen that the following documents are being asked for by the field formations for submission physically along with the LUT:

♦		Covering letter requesting acceptance of LUT,
♦		Copy of GST Registration Certificate,
♦		GST FORM RFD-11- in duplicate,
♦		Annexure- Letter of Undertaking (LUT)- in duplicate,
♦		Identity proof of witnesses signing on LUT,
♦		Self-Declaration on letter-head that the entity has not been prosecuted for any offence under GST Act, or any of the existing laws in force in a case where the amount of tax evaded exceeds two hundred and fifty lakh rupees,
♦		Incorporation documents of the entity,
♦		Identity Proof of Director/Partner/Proprietor, signing the documents,
♦		Copy of Trade Licence of the entity,
♦		Copy of IEC code, etc.

Bold Step Forward

At this juncture it is inspiring to note that the Board has acted rapidly and in order to resolve the matter, issued Circular No. 40/14/2018 - GST dated 06.04.2018 addressing certain issues relating to furnishing of Bond/LUT giving substantial relief to the export community. Accordingly, in partial modification of Circular No. 8/8/2017-GST dated 4th October, 2017, sub-paras (c), (d) and (e) of para 2 of the said Circular are modified as follows:

♦		An LUT shall be deemed to be accepted as soon as an acknowledgement for the same bearing the Application Reference Number (ARN) is generated online.
♦		No document needs to be physically submitted to the jurisdictional office for acceptance of LUT.
♦		If it is discovered that an exporter whose LUT has been so accepted was ineligible to furnish an LUT in place of bond as per Notification No. 37/2017-Central Tax, then the exporter's LUT will be liable for rejection.

Thus, the execution of LUT has again been made plain and simple by mandating that the online submission of LUT shall suffice to be considered as acceptance of LUT in case an acknowledgement for the same, bearing the ARN, is generated online. There is no requirement of physical submission of the same to the jurisdictional office. This is not only a bold initiative by the government but a true reflection of its intent of making the administration free of regulatory bottlenecks.

Government trying to boost export to reduce the trade deficit . Center also given instruction to  states to ensure smooth movement of cargo to ICD / Port / Airports. Focus on Logistics to boost exports will also increase in employment in this sector. Logistics in India is a  wide sector and to boost export logistics sector need to be improved along with simplification of procedure and policies.  

#CUSTOMHOUSEAGENT
#Logistics in India

As a trusted and licensed custom house agent, Customhouseagent discharges all duties and services related to Sea custom clearing of consignments with utmost care and minimum delays. We are not only well-informed of the Customs laws and procedures but we also closely follow all the rules & regulations and recent changes in the public notices, issued from time to time to provide clients with revised import custom clearing services and logistics solutions. With over 25 years of expertise and wide exposure in the import trade as a certified and award-winning Sea import Custom clearing agent, Customhouseagenteffortlessly clears all types of consignments whether LCL/FCL sea imports across the globe with utmost care & security to meet clients' requirements and satisfaction.
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