CUSTOMS & CENTRAL EXCISE
NEW DELHI
CUSTOMS
Monthly Revenue Performance Report
(December, 2012)
1. CUSTOMS REVENUE TREND Upto December,2012, the total custom revenue realization is 118553 Crores which is 4.81% more than the actual realization of 113114Crores upto December, 2011. In absolute terms, the actual revenue realization is more by5439.17 Crores.
2. ALL INDIAZONAL REVENUE TREND
The zone wise revenue realization trend Upto December, 2012 is as under:
S. No. / Name of The Region / Zone / Target 2012-13 (BE) / Revenue Upto DECEMBER 2011-12 / Revenue Upto DECEMBER 2012-13 / Excess / Shortfall in Revenue over 2011-12 / % Age Excess / Short Fall over 2011-121 / Mumbai-I (CUS) / 10300 / 6346.38 / 6013.11 / -333.27 / -5.25
2 / Mumbai-II (CUS) / 39600 / 22872.21 / 26366.91 / 3494.70 / 15.28
3 / Mumbai-III (CUS) / 10500 / 5675.11 / 6574.72 / 899.61 / 15.85
4 / Mumbai-I (C.EX.) / 10 / 6.78 / 5.63 / -1.15 / -16.98
5 / Mumbai-II (C.EX.) / 5 / 0.71 / 6.54 / 5.83 / 821.13
6 / Pune / 7800 / 3328.97 / 2280.61 / -1048.36 / -31.49
7 / Nagpur / 900 / 428.18 / 632.79 / 204.61 / 47.79
8 / Ahmedabad (CUS) / 20000 / 15231.51 / 13686.40 / -1545.11 / -10.14
9 / Ahmedabad (C.EX) / 645 / 382.59 / 131.14 / -251.45 / -65.72
10 / Vadodara / 10 / 1.88 / -0.18 / -2.06 / -109.58
I / Western Region / 89770 / 54274.31 / 55697.67 / 1423.36 / 2.62
11 / Bangalore / 6350 / 3631.31 / 4357.38 / 726.07 / 19.99
12 / Mysore / 5 / 1.04 / 7.45 / 6.41 / 615.22
13 / Cochin (C.EX.) / 2000 / 1559.75 / 1164.33 / -395.42 / -25.35
14 / Hyderabad (C.EX.) / 2100 / 1071.49 / 1605.96 / 534.47 / 49.88
15 / Vishakhapatnam(C.EX.) / 7100 / 6690.22 / 4212.86 / -2477.36 / -37.03
16 / Chennai (CUS) / 34000 / 19441.95 / 22291.04 / 2849.09 / 14.65
17 / Chennai (PREV.) / 4100 / 2375.43 / 2145.41 / -230.02 / -9.68
18 / Chennai (C.EX.) / 775 / 556.61 / 448.30 / -108.31 / -19.46
19 / Coimbatore / 300 / 41.33 / 240.11 / 198.78 / 480.94
II / Southern Region / 56730 / 35369.14 / 36472.84 / 1103.70 / 3.12
20 / Lucknow(C.EX.) / 0 / 0.68 / 5.30 / 4.62 / 681.35
21 / Meeurt (C.EX.) / 2900 / 1520.39 / 1887.54 / 367.15 / 24.15
22 / Patna (PREV.) / 250 / 149.92 / 144.55 / -5.37 / -3.58
23 / Ranchi / 0.00 / 0.00 / 0.00
24 / Delhi / 19000 / 10608.82 / 13131.90 / 2523.08 / 23.78
25 / Delhi (PREV.) / 120 / 78.57 / 111.57 / 33.00 / 41.99
S. No. / Name of The Region / Zone / Target 2012-13 (BE) / Revenue Upto DECEMBER 2011-12 / Revenue Upto DECEMBER 2012-13 / Excess / Shortfall in Revenue over 2011-12 / % Age Excess / Short Fall over 2011-12
26 / Delhi (C.EX.) / 2800 / 1364.13 / 1657.53 / 293.40 / 21.51
27 / Chandigarh / 1000 / 560.33 / 758.46 / 198.13 / 35.36
28 / Jaipur / 30 / 18.77 / 25.59 / 6.82 / 36.35
29 / Bhopal (C.EX.) / 540 / 320.85 / 423.19 / 102.34 / 31.90
III / Northern Region / 26640 / 14622.45 / 18145.63 / 3523.18 / 24.09
30 / Kolkata (CUS.) / 10000 / 5674.72 / 6551.09 / 876.37 / 15.44
31 / Bhubaneshwar / 3500 / 3146.51 / 1652.83 / -1493.68 / -47.47
32 / Shillong / 54 / 26.61 / 32.86 / 6.25 / 23.47
IV / Eastern Region / 13554 / 8847.84 / 8236.78 / -611.06 / -6.91
All India / 186694 / 113114 / 118553 / 5439.17 / 4.81
2.1ZONAL ANALYSIS
Customs revenue contribution of Western, Southern, Northern and Eastern Regions is, 46.98%, 30.76%, 15.31% and 6.95% respectively in the total revenue collected upto December,2012. The revenue growth over the corresponding period last year is( 2.62) %, (3.12)%, (24.09)% and (-6.91)%. in Western, Southern, Northern and Eastern Regions respectively.
2.2. CHIEF COMMISSIONERS’ REPORT FOR SHORTFALL IN REVENUE
Out of 32 Zones, 12 have realized less revenue as compared to last year. These are Mumbai-I (Cus.), Mumbai-I (Ex.), Pune, Ahmedabad (Cus), Ahmedabad (Ex.), Vadodara, Cochin (C.Ex), Vizag, Chennai (P), Chennai (C.Ex), Patna (Prev.) and Bhubneshwar. Chief Commissioners of Pune, Ahmedabad (Cus), Vadodara, Vizag, Chennai (P) and Patna (Prev.) have sent their revenue analysis report.
MUMBAI-I (CUS.) ZONE
The actual revenue realization upto December, 2012 is Rs. 6013.11 Crores as against Rs.6346.38 Crores uptoDecember, 2011 resulting in a negative revenueof Rs.333.27 Crores (5.25%).
REVENUE ANALYSIS NOT RECEIVED
MUMBAI-I C.EX.
The actual revenue realization upto December, 2012 is Rs.5.63 Crores as against Rs. 6.78 Crores upto December, 2011 resulting in a negative revenue of Rs.1.15 Crores (16.98%).
REVENUE ANALYSIS NOT RECEIVED
PUNE ZONE
The actual revenue realization upto December, 2012 is Rs. 2280.61 Crores as against Rs. 3328.97 upto December, 2011 resulting in a negative revenue of Rs. 1048.36 Crores (31.49%).
Brief revenue analysis with special reference to major assessees and commodities
Impact of declining iron ore exports: Port wise Iron ore export data based on Indian Ports Association database is as follows:
(Fig. in ‘000 Tonnes)
Port / April 11 – Dec 11 / April 12 –Dec 12 / Decline %All ports / 47817 / 21728 / 54.56%
Goa (Mormugao) / 21540 / 7421 / 65.54%
Vishakhapattanam / 13274 / 8795 / 33.74%
Paradip / 6259 / 1277 / 79.59%
New Manglore / 2268 / 2131 / 6.04%
Kolkata / 3776 / 1195 / 68.35%
Disproportionately larger collection of Customs revenue from specific that too only one commodity during 2011-12 i.e. 71% collection from iron ore exports, has exposed the vulnerability of Customs duty collection in the adversity of significant export reduction due to factors beyond the control of the Revenue during present financial year 2012-13.Buoyancy in Customs Revenue is highly commodity specific i.e. Customs duty on Export of Iron Ore and duty on Import of Coal.
Any major downturn in any sector connected to these commodities has adverse impact on revenue. There is major drop in the export of IronOre from Goa due to reduced exports to China, the major buyer of Goan Ore. China is reported to be facing a slowdown and therefore has stopped importing IronOre from India. The international prices have also fallen leading to exports becoming completely non-competitive. The actual duty collection from exports of Iron Ore during December, 2012is Rs.25.26 crores as against the duty collection of Rs. 436.76 crore during December, 2011, thereby registering a negative growth of Rs. (-)411.50 crore i.e. (-)94.22%. The export duty collection has registered a negative growth of Rs. (-)925.24 Crore i.e. (-)42.41% upto December, 2012 vis-à-vis the period upto December, 2011. IronOre exports slowdown and mining ban in the state of Goa has adversely affected the Customs revenue of this zone considerably.
Impact of Budgetary changes in import duty rate on steaming coal: The effective rate of duty on Steaming Coal was reduced from 10% to 1%. The revenue impact on this count is Rs.87.12 crores upto December,2012 vis-à-vis last fiscal.
Drop in imports of Chemicals by major companies viz. M/s.Zuari Industries Limited due to non finalization of prices of certain chemicals by the foreign suppliers. Besides, prevailing drought has also affected production & clearances leading to reduction in imports. The revenue impact on this count is Rs.35.46 crores upto December,2012 vis-à-vis last fiscal.
Non-repetition of one-off events: (1) Capital Goods which gave import duty of Rs.41 Crores by an Automobile major was a one-time event during last year. The revenue impact on this count is Rs.35.16 crores upto December,2012 vis-à-vis last fiscal. Global supply chain logistics considerations of auto majors under Pune Customs jurisdiction like
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M/s.General Motors and M/s.Volks Wagen import large quantities of their production requirements through major port like Nhava-Sheva preferring Customs clearance over Customs formations within Pune zone like ICD, Talegaon. Our repetitive attempts to woo these big importers have yielded no significant results due to sustained long-term integration of global manufacturing operations with global supply chain logistics offering direct economic advantage to the importers over any switchover to ICDs under Pune zone. (2) A large Customs recovery of Rs.58 Crores was a one-time event during last year.
The Export Duty collection (Rs.3848.66 crores) for 2011-12 accounted for 71% of total Customs Duty collection in Pune Zone i.e. Rs.5380 Crores. The export duty collection has registered a negative growth of Rs. (-)925.25 Crore i.e. (-)42.41% upto December, 2012 vis-à-vis the period upto December, 2011. The import duty collection has also registered a negative growth of Rs. (-)123.12 Crore i.e. (-)10.73% upto December, 2012 vis-à-vis the period upto December, 2011. Goa Customs Commissionerate is likely to collect nearly Rs.50 to 60 crores per month for remaining two and half months with no duty collection expected at all from exports. Pune Customs Commissionerate has projected collection of Rs.250 crores during this period as their best case scenario.
Following commodities have shown negative growth upto December,2012 compared to December,2011 –
(a)Machinery(41-44,50) - There is increase in revenue of 37% compared to last year from Machinery group (41-44, 50). However, there is a shortfall of revenue in respect of commodity “Project Imports” since major portion of the revenue last year 2011-12 under the Project Imports of Rs.10.54 crores as a one time project was from M/s.GAIL India Ltd. On import of Carbon Pipes for use in their pipelines connecting M/s.RGPPL to the Gas grid. No import of pipes or any other articles in the current financial year upto the month.
(b)Petroleum Products - The total revenue realized from Petroleum products upto December,2012 is Rs. 494.76 Crores against Rs. 566.75 Crores upto December,2011, thus registering a negative growth of 12.70%. Refined Petroleum Oils(8) is showing negative growth of (-)87.50% compared to last fiscal due to Budgetary changes, the effective rate of Customs duty on Steaming Coal is reduced from 10.72% to 1.03% and in a preventive case booked against M/s.RGPPL during the last year, an amount of Rs.58.28 crores was recovered in imported Naphtha as a one time recovery. The revenue impact on this count is Rs.73.40 crores upto December,2012 vis-à-vis last fiscal.
(c)Non-Ferrous Metals – Although, there is an increase in revenue of Rs.1.65 compared to last year 2011-12, imports in respect of Non-Ferrous Metals which includes Copper(33), Aluminium(35) & All other Non-Ferrous Metals (34,36,38,39), shows negative and slow growth due to availment of DEEC scheme by Importer.
(d)All other Articles – Articles other than Gold (52A) is showing negative growth of (-) 35.73% vis-à-vis last fiscal.
(e)Motor Vehicles & Parts (46) – The major units in the category are M/s.Chevrolet Sales India Ltd, M/s.Volkswagen, M/s.Premier Bosch, M/s.Talbros are showing negative growth of (-)43.85%. During, 2011-12, M/s.Volkswagen India Pvt.Ltd. had made one time import of car parts and paid revenue of Rs.40.78 crores due to tha fact that the EDI system at Nhavasheva was temporarily in-operative for a while and due to urgency they have cleared consignments from ICD Talegaon. After streamlining at Nhavasheva the importer has shifted back and hence no revenue from this unit till date this year. Further, M/s.Chevrolet Sales India Ltd. Have imported 733 Captiva Cars in last F.Y.2011-12 and paid revenue of Rs.58.27 crores upto December,2011 as compared to 411 cars in this F.Y.2012-13 upto December,2012, paid revenue of Rs.39.50 crores, shortfall of Rs.18.77 crores, due to not so successful launch of this SUV in Indian market.
(f)Rubber & Articles(19) - Revenue in respect of Rubber and Articles up to December,2012 is Rs. 6.13 crores as against Rs. 7.77 Crores up to December 2011, showing a negative growth of (-)21.06% due to shifting one of unit M/s.K-flex has partly shifted their imports to Nhavasheva due to infrastructural problems, hence less imports.
(g)Aircrafts & Vessels(47) - Revenue in respect of Aircrafts & Vessels up to December,2012 is Rs. 5.06 crores as against Rs. 22.85 Crores up to December 2011, showing a negative growth of (-)77.84%. Due to the total ban of Iron Ore Export from Marmagoa port for this entire season (entire state of Goa) there is a slackness in demand of manufacture of barges/iron ore carriers. Hence the decrease in duty under this head that includes vessels.
(h)Pulp, Paper etc.(20) – There is a marginal shortfall of revenue of Rs.0.04 crores. Revenue in respect of Pulp & Paper up to December,2012 is Rs. 9.01 crores as against Rs. 9.06 Crores up to December 2011, showing a negative growth of (-)0.48%. A major importer M/s.Pudumjee Paper Ltd have effected less imports due to their sluggish business.
AHMEDABAD (CUS) ZONE
The actual revenue realization upto December, 2012 is Rs.13686.40 Crores as against Rs.15231.51 Crores upto December, 2011 resulting in a negative revenue of Rs. 1545.11 Crores (10.14%).
Brief revenue analysis with special reference to major assessees and commodities
Commissionerate wise collection of revenue is discussed below:
Commissionerate of Customs, Ahmedabad:
Revenue realization up to DECEMBER -2012 is Rs. 5845.43 crores as compared to Rs.4219.61 crores up to DECEMBER -2011. There is gain of Rs. 1625.82 crores upto the month of DECEMBER -2012 when compared upto DECEMBER -2011.
Following commodities have shown major increase in revenue when their revenue upto DECEMBER -2012 is compared with revenue upto DECEMBER -2011
i)In “Other mineral fuels, oil waxes” (9), there is gain of Rs.409.71 Crores.
ii)In Ores, slag & ash (6), there is gain of Rs. 272.47 crores.
iii)In Gold (52), there is gain of Rs. 967.50 Crores.
iv)In Chemicals (10,11,17), there is gain of Rs. 74.71 Crores.
v)In Plastics (18), there is gain of Rs. 93.02 Crores.
vi)In iron & steel, there is gain of Rs. 73.45 Crores.
vii)In pulp, paper etc. (20), there is gain of Rs. 30.93 Crores.
Commissionerate of Customs, Jamnagar (Prev.):
Revenue realization up to DECEMBER -2012 is Rs. 1948.92 crores as compared to Rs. 3989.38 crores up to DECEMBER -2011. There is a decrease of Rs.2040.46 crores in the total revenue collected upto the month of DECEMBER -2012 when compared to the revenue upto the month of DECEMBER -2011. The main reasons for decrease is due to exemption of 5% Basic Customs Duty on Crude Oil vide Noti. No. 52/2011-Cus dated 25.06.2011, as amended by Noti.No. 12/12-Cus. Dtd. 17.03.2012. As a result there is a shortfall in crude oil revenue by Rs. 2001.71 Crores. The other mineral fuel, oils (Coal) are also showing revenue shortfall by Rs. 241.68 Crores. This is due to Exemption of BCD & reduction of CVD from 5% to 1% on steam coal in the Budget 2012-13. There is excess utilization of drawback during the period by Rs. 92.79 Crores.
Following commodities have shown major increase in revenue when their revenue upto DECEMBER -2012 is compared with revenue upto DECEMBER - 2011.
i)In Aircrafts & Vessels (47), there is gain of Rs.243.00 Crores.
ii)In Articles other than Gold (52), there is gain of Rs. 21.88 crores.
iii)In Plastics (18), there is gain of Rs. 18.97 Crores.
iv)In Chemicals (10,11,17), there is gain of Rs. 42.21 Crores
Commissionerate of Customs, Kandla:
Revenue realization up DECEMBER -2012 is Rs. 5888.53 crores as compared to Rs. 7022.47 crores up to DECEMBER -2011. Thus there is loss of Rs.1133.94 crores in the total revenue collected upto the month of DECEMBER -2012 as compared upto the month of DECEMBER -2011. The main reason for decrease is due to (i) exemption of 5% Basic Customs Duty on Crude Oil vide Noti. No. 52/2011-Cus dated 25.06.2011, as amended by Noti.No. 12/12-Cus. Dtd. 17.03.2012. (ii) Exemption of BCD & reduction of CVD from 5% to 1% on steam coal in the Budget 2012-13. As a result there is a shortfall in crude oil revenue by Rs. 328.39 Crores, Refined petroleum oils revenue by Rs. 704.57 Crores and other mineral fuel, oils (Coal) revenue by Rs. 539.32 Crores. There is excess utilization of drawback during the period by Rs. 343.10 Crores.
Following commodities have shown major increase in revenue when their revenue upto DECEMBER -2012 is compared with revenue upto DECEMBER -2011.
i)In Ores, slag & Ash (6), there is gain of Rs. 296.61 Crores.
ii)In Chemicals (10, 11, 17), there is gain of Rs. 461.24 Crores.
iii)In Iron & Steel (28-32), there is a gain of Rs. 250.36 Crores.
iv)In Aluminium (35), there is gain of Rs. 44.31 Crores.
v)In Plastics (18), there is gain of Rs. 26.22 Crores
vi)In pulp, paper etc. (20), there is gain of Rs. 11.84 Crores
vii)In mineral substances (5), there is gain of Rs. 45.56 Crores.
The revenue collected from the top ten importers of this Zone upto DECEMBER -2012 is Rs. 3719.05 crores which is 27.18 % of the total revenue collected in the Zone i.e. Rs. 13682.88crores.
AHMEDABAD C.EX.
The actual revenue realization upto December, 2012 is Rs. 131.14 Crores as against Rs.382.59 Crores upto December, 2011resulting in a negativerevenue of Rs.251.45 Crores (65.72%).
REVENUE ANALYSIS NOT RECEIVED
VADODARA ZONE
The actual revenue realization upto December, 2012 is Rs. (-0.18) Crores as against Rs. 1.88 Crores upto December, 2011 resulting in a negativerevenue of Rs. 2.06 Crores (109.58%).
Brief revenue analysis with special reference to major assessees and commodities
The Net Customs Revenue Collection upto Dec 2012 is Rs. (-) 0.17 Crore, as against the Net Customs Collection of Rs. 1.88 Crore for the corresponding period of the last financial year (2011-12) resulting in loss of Rs. 2.05 Crore, i.e 109.04 %, in the Net Customs Revenue. Whereas the Gross Customs Revenue collection in Vadodara Zone upto Dec 2012 is Rs. 10.21 Crore as against the collection of Rs. 10.85 Crore in the corresponding period of the last financial year (2011-12) resulting in a loss of Rs. 0.64 Crore, i.e. 5.90%.
The Vadodara Zone comprises of Six Central Excise Commissionerates with no Customs formation and its only source of Customs Revenue is Bonded Warehouses and DTA clearances from SEZ Units. The major portion of the Customs Revenue of the Vadodara Zone used to come from M/s. Essar SEZ, Hazira on DTA clearances. The said unit exited from the SEZ Scheme w.e.f. 01.04.2010, due to which there is a sharp decline in the Customs Revenue. It is worth mentioning that during the financial year 2010-11, out of total Gross Customs Revenue Collections of Rs.115.68 Crore and the net revenue of Rs.106.87 Crore, Rs.105.20 Crore were contributed by M/s. Essar SEZ, Hazira, Surat. With the exiting of the said unit from the SEZ, there was an adverse impact on Customs Revenue, and the net collections during the last financial year, i.e. 2011-12, was Rs. 6.72 Crore only. Accordingly, the Board vide letter dated 30.7.2012 has revised the Customs Revenue Target for this Zone to Rs. 10 Crores for the current F.Y. 2012-13.
COCHIN(C.Ex)
The actual revenue realization upto December, 2012 is Rs.1164.33 Crores as against Rs.1559.75 Crores upto December, 2011resulting in a negative revenue of Rs. 395.42 Crores(25.35%).
REVENUE ANALYSIS NOT RECEIVED
VIZAG C.EX.
The actual revenue realization upto December, 2012 is Rs. 4212.86 Crores as against Rs. 6690.22 Crores upto December, 2011 resulting in a negative revenue of Rs.2477.36 Crores (37.03%).
Brief revenue analysis with special reference to major assessees and commodities
i)The total Customs Revenue for the month of December 2012 is Rs. 417.62 Crores as compared to Rs. 613.77 Crores in December, 2011. The total Customs Revenue up to the month of December, 2012 is Rs. 4214.54Crores. There is decrease to the tune of Rs.2475.68 Crores during the current year as compared to the corresponding period of the last financial year (Please see Annexure - I of the FMR).
ii)The reasons for decrease in import revenue are:
(a)There is practically no revenue so far from one of the major import commodities i.e. Crude Oil and HSD during the current financial year, whereas the revenue realized from this commodity, during 2011-12 was Rs.331Crores (until June 2011, when the exemption has come into force. It is also observed that imports of petroleum products like HSD/Motor spirit are need based and as much are not regular imports.
(b) A shortfall in the revenue from machinery group (41-44, 50) has been observed to the tune of Rs. 763.51 Cr. (74%) over the last year due to steep decline in the import volumes of machinery items (relating mostly to power generation equipment and machinery excluding machine tools etc.). However, during the current financial year from commodity group of Chemicals (10, 11, and 17) and Iron & Steel (28-32), an increase in revenue has been observed to the tune of Rs.222.72 Cr. and 198.54 Cr. respectively. There is a shortfall of revenue in respect of Project Imports since major portion of the revenue last year under the project imports was from power projects and now all these Power Projects have obtained provisional mega Power Project Status and have become eligible to NIL rate of duty.
(c)Steam Coal is one of the major import commodities in the Zone. Though there has been an increase in import volumes of Steam Coal, due to the decrease in the rate of duty (BCD from 5% to NIL and CVD from 5% to 1%), the revenue from this commodity is not commensurate with volume growth.
(d) Due to the withdrawal of DEPB scheme, there has been an increase in drawback payments to the tune of approx. Rs.23 Crores during December of the current financial year as compared to the same month of last year. The outgo on account of Drawback payments is higher than anticipated. The duty foregone on account of DEPB upto December 2011 was Rs. 191 Crores only. But during the current financial year duty foregone on account of DEPB scrips utilization is Rs.52 Crores. This is also one of the reasons for decrease in overall revenue during the month as compared to the same period of last year.
(e)Also, a shortfall to the tune of Rs. 460.30 Crores has been observed in Net Export duties when compared to the same month over the last year. This is mainly on account of decline in export volumes of Iron ore, which is a major export revenue earning commodity.
iii)As far as performance in identified key areas is concerned, all efforts are