Draft Scheme of 'On Site Audit' on lines of EA 2000 Audit for Imports
AS a trade facilitation measure, CBEC is considering introduction of scheme of ‘On Site Post Clearance Audit (PCA)' for imports in Customs and Draft Scheme has been put up to elicit public response.
The Scheme aims at reducing the transaction costs and dwell time for imports and at the same time balancing the conflicting interests of faster clearance and customs checks.
As per prevailing international practices, the Indian Customs also would like to facilitate trade further by allowing release of goods on the basis of declaration of the importer without physical examination of the goods. But as it is the concern of any Government that goods imported are as per the declaration, that proper duty has been paid and that when concessional rates have been availed of subject to end use, the conditions have been fulfilled, that no national laws have been violated, such facility has to be accompanied by an onsite audit after the clearance of imported goods. It might increase the compliance costs as audits would be done at importer's premises. But this will be more than compensated by faster clearance of imports with considerable savings on warehousing, insurance, demurrage, faster sale etc. And such a scheme will be in consonance with the Kyoto Convention also.
The importers are broadly divided in four categories - manufacturers, service provider, trader, individual consumer. So far as manufacturers and service providers are concerned, most of them are likely to be registered with the Commissionerates and the on site audit will be combined with EA 2000 audits. That leaves the importers who are basically traders and units which are exempted/not registered and the jurisdiction for customs on site will be decided based on their IEC Code. In case of multi locational manufacturers/ service providers, the audit will be conducted at the business premises as well as the factory premises.
The views, comments and suggestions to the draft Scheme can be sent to dircus@nic.in latest by 15th October, 2010.
F.No.-Dir. (Cus); Dated; September 10, 2010