Minutes /Actionable Points Arising out of the CCFC Meeting Held on 13.12.2017

Minutes /Actionable points arising out of the CCFC Meeting held on 13.12.2017:

In compliance to CBEC Circular No. 13/2015-Customs, dated 13.04.2015, the meeting of CCFC was held on 13.12.2017 in the New Custom House, New Delhi, under the Chairmanship of Shri Sunil Kumar Sawhney, Chief Commissioner of Customs (DZ).

The meeting was attended by the following officers:-

Sr. No. / Name of the Officer
(S/Shri/Ms.) / Designation & Department / Phone Number / E-mail-Id
1. / O. P. Dadhich / Pr. Commissioner, Custom Preventive / 25652984 /
2. / S. K. Sinha / Commissioner of Customs, ACC (Export) / 25655385 /
3. / Sanjeev Srivastava / Commissioner of Customs, ICD-TKD (Export) / 26366658 /
4. / B B Gupta / Commissioner of Customs, ICD, PPG / 22233091 /
5. / Rajesh Nandan Srivastava / Commissioner of Customs, ICD-TKD (Import) / 26368848 /
6. / V. Sangeeta / Commissioner of Customs, ACC (Import) / 25652970 /
7. / Dr. Kavita Bhatnagar / Commissioner of Customs (General) / 25655386 /
8. / Manish Kumar / Commissioner of Customs (IGI Airport) / 25652090 /
9. / Vinay K. Singh / Addl. Commissioner, CCCU (DZ) / 25654097 /
10. / Zamir Ahmed / Asstt. Commissioner, CCCU (DZ) / 25656086 /
11. / Yashpal Taneja / BAR(I) C/o Fedex Regulatory Advisory / 9811371016 /
12. / Bhawani Singh / AGM-OPS, DCSC / 9990593131 /
13. / Dr. Vijay Kumar / Regional Officer, AQCSS / 9958199310 /
14. / Manoj Sharma / S&M, CELEBI / 9650893310
25601205 /
15. / Tarun Sabharwal / AGM Cargo, DIAL / 47197906,
9810056073 /
16. / Puneet Jain / Vice President, DCCAA / 9873655551
23538880 / dccaa.dccaa.in
17. / Gurvinder Singh / Hon. Secretary DCCAA / 9810003738
25764343 / dccaa.dccaa.in
18. / Nisha Kaushik / Drug Inspector, CDSCO / 8447027741 /
19. / Dr. D. C. Rajak / Joint Director, NPQS / 8968633245 /
20. / Ranjeet Rana / Manager, Jet Airways / 99100078056 /
21. / Abhijeet Singh / Sr. Supervisor, EICI / 9999055269 /
22. / Shankar Karua / Deputy Manager, DCSC / 9911820833 /
23. / J. D. Shar / Manager, Air India / 8800197093 /
24. / Madhulika / Dy. General Manager, Air India / 981816447 /
25. / Anil Kotnala / Group General Manageer, CEO, NR CONCOR / 9971471705 /
26. / Sumant Kr. Behera / DGM (C&O) TM/TKD CONCOR / 9163390917 /

At the outset, Shri Sunil Kumar Sawhney, Chief Commissioner of Customs (D.Z.) welcomed all the participants and initiated the proceedings and informed the participants about the objective and mandate of CCFC and sought the cooperation of all participating Government agencies and other stake holders in meeting the objective of CCFC which is to facilitate the genuine trade in their imports and exports and their ease of doing business.

2.Thereafter the following agenda items of the CCFC meeting were taken up:

A. Board of Airlines Representative, Northern Region:

The issue relates to the problems being faced by Airlines while using the Transshipment Module: In this connection, it is stated that the online transshipment process is not streamlined as the transshipment module doesnot support following amendments;

Change of flight/cancellation of Cargo Transfer Manifest (CTM)/ Transshipment Permit (TP) in case of mis-connection.

Dual TP fee for single transaction of transshipment (CTM fee as well as TP fee) whereas Customs circular 6/2007 dated 22.01.2007 and Customs manual both clarify that CTM may itself be treated as application for transshipment and there no need of separate transshipment application.

Change of Master airway bill(sector airway) is not supported.

Processing of Part shipments TP is not allowed.

There is no in-house access to users.

The above challenges delay TP process and result into heavy demurrage andadverse customer reaction. Airlines are bound to pay heavy demurrages to custodian for no fault of them due this. They requested that the custodian be advised for waiver / foregone of demurrage charges occurring due to amendments while processing online TP until above issues are fixed and process is streamlined in order to support trade and ease of doing business.

Response: The representative who represented Board of Airlines Representative India (BAR) on the aforesaid issue was informed that based on a reference received from Airlines regarding improvisation and enhancements desired in the current TP Module, Commissioner ACC (Import) has already sent a letter to Joint Director, DG (Systems) on 14.09.2017 followed by email to the National Systems Manager (NSM) on 31.10.2017. Further, the issues are also brought to the knowledge of Additional Director General, Directorate General of Data Management & System vide letter dated 28.11.2017 so as to make necessary changes in the system to resolve the problems being faced by the Airlines Industry while using the Transshipment Module.

The Chair also desired to know how frequent this problem is encountered. It was replied by the representative that such cases were very few and had happened only in case of misconnection of flights. It was further stated that there were about four such cases in two months. However, there was no issue in case of normal operations. The Chair desired that they should come up with more details in this regard. Moreover, the matter has already been taken up with DG (Systems). However, it may take some time to make necessary amendments, in the system.

As regards, waiver / foregone of demurrage charges by the custodian in such situations, the custodian representative stated that it was matter of their earnings /revenue and so long as they are providing the service, they are required to charge for that. The custodian was advised to re-examined their position in the interest of ease of doing business.

At this point, the Air India representative raised the issue of Bond value not getting balanced.In terms of Customs Circular No. 06/2007 dated 22.01.2007, the receiving airlines should prepare its cargo manifest and transshipment be allowed under Customs supervision. The value oftransshipped cargo should be debited from the Transshipment Bond. Customs at destination airport will acknowledge the receipt of the cargo and send back the acknowledgement manifest through the carrier. The carrier should produce such acknowledgement at the originating airport within 10 days oftransshipment. On the basis of such acknowledgement the Transshipment Bond would be re-credited.

The Chair observed that this point is not in the Agenda. However, it was advised that the matter may be taken up with the Commissioner, ACC(Import) and if thereafter, the issue persists, the point may be sent for consideration in CCFC.

B.DCSC Cargo Terminal:

Issues:

1.EDI message for Exam /Inspection from Customs:

It is stated that once the Cargo Arrival (CAR) message is triggered from COSYS to Customs system, look into the possibility of a returnacknowledgement message which shall have the information onwhether the shipment will be under exam or inspection andthe number of pieces required for examination or the package numbers that need to be retained at the truck dock for examination.

Based on the information received back from customs, the said packages or number of packages will be retained at the truck dock for Custom Examination. Remaining shipment will be taken inside the bonded area for storage. This will reduce the congestion at the Truck Dockespecially during peak hours and will also help in reducing the processing time ofcargoby 25%.

Response: It is informed that COSYS system is at DCSC and ICMS (Integrated Cargo Management System) is at CELEBI. This issue pertains to changes in ICES required for linking it with COSYS. The information onwhether the shipment will be under examination or inspection andthe number of pieces required for examination will be known only when the bill is presented. However, bringing only selected packages in the examination area may not be feasible as the Shed officer has to inspect the lot and select the number of packages to be examined following the open order. Thus, the suggestion of keeping only the selected packages to examination area will make the whole examination process meaningless and will be prone to misuse. Further, this has pan India ramifications. Hence, the matter needs to be taken with DG Systems, CBEC to provide the facility of return acknowledgement message which shall have the information on whether the shipment will be under exam or inspection and the number of pieces required for examination between COSYS and Customs Systems. A reference to DG Systems will be made on this count.

2.Disposal of Customs held goods and uncleared cargo:

There is a request for a more speedy procedure for disposal ofcustoms hold shipments and uncleared cargo in both exports and imports. Presently the entire process takes time and gets extended considerably. These shipments occupyvaluable space in the terminal and with the increase in number of such shipments it becomes extremely difficult in managing the situation, thus need a defined timelines for the same.

Response: In this regard, it is informed that in so far as Customs held goods,only after completion of all formalities,i.e., NOC from FSSAI, etc., litigation, due court process/CESTAT, adjudication etc., the said cases become ripe for disposal. In such ripe for disposal cases, valuation of goods is done by the Govt. approved valuer and same is put before the JPC. Once reserved price is fixed by JPC, goods are put for e-auction through MSTC Ltd. (A Govt. of India Enterprises) which are engaged to conduct e-auction/e-tender for goods to be disposed of.

Thus, the process time for disposal depends on the various factors. However, all efforts arebeing made to dispose the goods expeditiously.

As regards the unclaimed uncleared cargo, the Custodian has to expedite the disposal after obtaining the NOC from the concerned Customs Commissionerate. It was advised that in respect of such cargo, the custodian and the concerned Asstt./Dy. Commissionershould review the position at the end of each month.

C.ACC (IMPORT) COMMISSIONERATE:

1.More space for examination: There is a need for more space for Customs examination of goods in view of the following points:-

(i)There is an RMS facilitation Centre created in Import Shed dedicated to RMS clearance related activities with a view to create a single point for consignments routed through RMS.

(ii)One of the factors of Customs clearance which is always stressed upon is reduction of dwell time of imports. For overall Trade facilitation speedy clearance is always desirable and for achieving this objective more space for examination is required.

Response: It was agreed upon that by 1st January, 2018, custodian have to come up with a concrete plan in this regard since there is severe space constraint and the enabling provision stipulates inspection of the whole lot followed by examination of selected packages as per open order. In this connection, attention is drawn to Rule 5 of the Handling of Cargo in Customs Areas Regulations, 2009 which stipulates conditions to be fulfilled by customs cargo service provider.

2.Provision of additional X-ray Scanners: One X-Ray Machine has already been installed in the Flight check area of CELEBI on 28.12.2016. Due to increase in volume of Baggage and traffic at Air Cargo Complex, New Delhi, more X-Ray machines are required to be installed in Delhi Cargo Service Centre (DCSC) so that Baggage scanning can be managed at CELEBI as well as DCSC.

Response: It was pointed out to them that though the department is also working in this regard, however, the process may take its own time. Meanwhile, the custodian having regard to requirement, take steps to provide the X-ray Scanner. In this connection, attention is drawn to Rule 5 of the Handling of Cargo in Customs Areas Regulations, 2009 which stipulates conditions to be fulfilled by customs cargo service provider.

3.Installation of more CCTV Cameras: With a view to ensuring better safety, security and improved vigilance more CCTV cameras need to be installed at Air Cargo Complex. Also, all cameras to be operational and working.

Response: The custodian informed that there are about 450 CCTV Cameras installed there and all are working. The Chair desired the custodian may ensure that all the cameras are working covering all the strategic areas. In this connection, attention is drawn to Rule 5 of the Handling of Cargo in Customs Areas Regulations, 2009 which stipulates conditions to be fulfilled by customs cargo service provider.

4.Digitization of Dockets: Customs dockets contain all import clearance related documents like B/E, Invoice/packing list, Airway Bill, TR-6 challans, certificates etc. which are presently being managed in physical form. It is highly desirable to digitize the dockets as it will help their quick retrieval and analysis and will in turn add to speedy clearance as well as enhanced Customs control.

Response: It was informed that the Document Management System (DMS) is operative in ICD, Tughlakabad and is working fine. It was advised that the same may be replicated in Air Cargo also.

5.Numbering of Boxes Containing Goods: It is observed that the boxes containing goods donot have a box No./lot No. etc. due to which random selection of goods for examination may not be possible. Importers / CHAs may therefore ensure that the No. is mentioned in each box of a consignment entering Import Shed with their detailed mentioned in the Packing List.

Response: It was informed that the Airlines go by the Airway Bill (AWB) number. In this connection, the Chair directed that the Shed officers should go to the stacking area and select the packages for examination. They should also check the packing list.

The Chair emphasized the need for all PGAs to engage regularly with the Commissioners of |Customs for resolving specific queries/concerns.

CONCLUSION: The Chair thanked all the participating members / agencies and stated that with the support of all the agencies, the trade facilitation could be further enhanced. It was also stated that PGAs and other stake holders need not wait for the CCFC meetings and if there are any issues which need intervention by Commissioners of Customs or at his level, the same may be taken up without delay.

The meeting ended with the vote of thanks to the chair.

(Vinay K. Singh)

Additional Commissioner

CCCU (DZ)