Comments/views are invited from trade and industry for “On-Site Post Clearance Audit at the Premises of Importers and Exporters Regulations, 2011

DRAFT

‘On-site Post Clearance Audit at the Premises of Importers and Exporters Regulations, 2011’

 F.No.450/1/2010-Dir (Cus), Dated – 1st August, 2011.

Government of India, Ministry of Finance, Department of Revenue, Central Board of Excise and Customs

CBEC has decided to introduce ‘On-Site Post Clearance Audit’ (OSPCA) in Customs.  In this regard, suitable legislative amendments have been made in the Finance Act, 2011.  The CBEC has framed draft ‘On-site Post Clearance Audit at the Premises of Importers and Exporters Regulations, 2011’ on the manner of conduct of audit at the premises of importers and exporters.

2. CBEC solicits views, comments and suggestions on draft ‘On-site Post Clearance Audit at the Premises of Importers and Exporters Regulations, 2011’ from the trade and industry associations, departmental officers and others.  The views, comments and suggestions to the draft Regulations may please be sent, latest by 16th August, 2011, to Director (Customs), Ministry of Finance, Department of Revenue, Central Board of Excise & Customs, Room No.227-B, North Block, New Delhi – 110001 or at Fax No. (011) 23092173 or at e-mail I.D.: dircus@nic.in 

3. The draft ‘On-site Post Clearance Audit at the Premises of Importers and Exporters Regulations, 2011’ have been put up only to elicit public response.  No final decision has been taken as yet by the Government / Board, which will proceed further in the matter only after due examination of the response received.

Encl:  Annexure.

  ( R. P. Singh )

Director (Customs)

 To

All Concerned.

———————————————————
Annexure

 DRAFT

 On-Site Post Clearance Audit at the Premises of Importers and Exporters Regulations, 2011

  In exercise of the powers conferred  by section 157, read with section 17, of the Customs Act, 1962 (52 of 1962), the Central Board of Excise and Customs hereby makes the following regulations namely:-

1. Short Title, extent and commencement.-

(1) These regulations may be called the ‘On-site Post Clearance Audit at the Premises of Importers and Exporters Regulations, 2011’.

(2) They shall apply to audit of assessment of duty relating to imported or export goods, as the case may be, at the premises of the importer or exporter, as the case may be.

(3) They shall come into force on the date of their publication in the Official     Gazette.

 2. Definitions- In these regulations, unless the context otherwise requires,-

(a) ‘Auditor’ means an officer of customs who is assigned the function of audit by the Commissioner of Customs;

(b) ‘Audit’ means examination of bills of entry, shipping bills, invoices, packing lists, import licences, books of account, and other records of transaction relating to imported and export goods, so as to check the accuracy and correctness of assessment of duty thereof and may include inspection of goods at the premises, if available;

(c) ‘Books of Account’ includes ledgers, day-books, cash books, account-books and other accounts whether kept in the written or printed form and data stored on a floppy, disc, tape or any other form in electro-magnetic data storage device;

(d) ‘Premises’ includes the place at which imported or export goods and connected books of account, records of transaction and other documents are ordinarily kept by an importer or exporter, as the case may be, and his registered office or the premises indicated in his Importer Exporter Code (IEC) issued by the Ministry of Commerce and Industry and the places wherever the imported or export goods, as the case may be, are ordinarily kept;

(e) Words and expressions used and not defined herein but defined in the Customs Act, 1962 shall have the same meaning respectively, assigned to them in the said Act.

 3. Obligation of importers and exporters.-

 (a) The importer or exporter, as the case may be, shall maintain such documents and records of transaction including electronic data relating to assessment of duty of imported or export goods, as the case may be, as prescribed by the Board for a period of five years from the date of import or export, as the case may be;

 (b) The importer or exporter, as the case may be, shall make available in a timely manner such books of account, records of transaction and other relevant documents relating to imported or export goods, as the case may be, as required by the auditor;

(c) The importer or exporter, as the case may be, shall provide true and correct information to the auditor;

(d) The importer or exporter, as the case may be, shall render assistance to the auditor in the discharge of his official duty and shall in no case refuse or obstruct the auditor.

 4. Manner of conducting audit.-

(a) The auditor shall, where considered necessary, obtain from the importer or exporter, as the case may be, prior information relating to imported or export goods, as the case may be, before conducting audit.  The auditor may also take a tour of the premises to gather relevant information relating to imported or export goods, as the case may be;

(b) The auditor shall conduct the audit in the premises of the importer or exporter, as the case may be;

(c) The auditor shall inform the importer or exporter, as the case may be, of the objections, if any, before preparing the Draft Audit Report to provide an opportunity to offer clarifications with supporting documents in order to resolve potential disputes early and avoids unnecessary disputes;

(d) Where the importer or exporter as the case may be, is in agreement with the audit findings, in part or in full, he may make voluntary payments of duty due, if any, and the auditor shall take the same on record in the Audit Report;

(e) The auditor shall before finalizing the Audit Report discuss with the importer or exporter, as the case may be, steps, if any, to improve compliance;

(f) In the course of audit, if found necessary, the auditor may inspect the imported or export goods, if available;

(g) The auditor may take samples of imported or export goods and copy of relevant documents to verify the correctness of assessment of duty.

 5. Penal provisions.- An importer or exporter, who contravenes any provision of these Regulations or abets such contravention or fails to comply with any provisions of these Regulations with which it was his duty to comply, shall be liable to a penalty which may extend to fifty thousand rupees.

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