Customs - Voluntary payment of duty along with interest - Not Allowed?
AN issue raised at the recent Open House meeting of Mumbai Customs was that the Customs authorities insist for amendment to the Bill of Entry under Section 149 of the Customs Act and allow payment of differential duty only after the amendment has been allowed by the Customs. It is pointed out that they should be allowed to make payment in Cash Department directly in the case of short levy etc. Members of BCHAA informed that payment of differential duty should be accepted and interest payment should be on the day the differential duty is paid and the amendment can be carried out later on.
The Chief Commissioners informed the house that there is no restriction in paying the duty amount voluntarily as the same is prescribed in the Act itself. However, Department is facing system related issues which restricts voluntary payment of Customs duty before the Bill of Entry is reassessed and exact duty amount quantified. In the instance, where the importer/CHA initially pays the differential duty, the B/E is forwarded to Bank Queue and unless the duty is paid the Bill of Entry remains alive in ICES 1.5 system and would be shown as pending in the Bank queue. The Chief Commissioners further desired that a Committee comprising of Commissioner of Customs (Imp), Zone I and II, Banking officials and Stakeholders be formed immediately and the Committee should come out with a suggestive measure to resolve the issue by the next meeting.
Some of the other issues raised in the meeting were:
Only Two Copies of IGM: The Public Notice No. 20/2014-15 dated 1.4.2015 restricts submission of two hard copies of IGMs, however, the prevailing practice still continues and copies of IGMs are submitted to four different sections of the Customs.
Chief Commissioner of Customs, Zone I informed the house that a decision has been taken by the Board to restrict submission of hard of copies of IGM to two and Public Notice No. 20/2014-15 dated 1.04.2015 has been issued to that effect. Therefore, Department should stick to the Public Notice and henceforth, the Shipping Agents are required to submit only two hard copies of IGM. Chief Commissioner further directed Commissioner (Import) and Principal Commissioner (Gen) to ensure compliance of the Public Notice No. 20/2014-15 dated 1.4.2015.
In Crew Sign on/off procedure, immigration and baggage examination is done at different places. It was requested that both should be at the gate itself to save time and fuel.
Chief Commissioner, Mumbai Zone I informed the house that the process of crew sign on/off and baggage examination involves, CISF, Customs and Immigration. The Chief Commissioners directed the Pr. Commissioner (Gen) to explore the possibility of the request by consulting with immigration, CISF authorities and find out a solution.
Payment of interest in respect of delayed settlement of Duty Drawback payments-
The issue is as regards the payment of interest on delayed payment of drawback there is no provision in ICES 1.5 System for payment of interest for delay in processing of drawback claims. However, in terms of Section 75A (1) of the Customs Act, 1962, where any drawback payable to a claimant is not paid within a period of one month from the date of filing of a claim for payment of such drawback, interest shall be paid. Exporters are liable to get their legitimate claim and Act specifies that Department should suo moto initiate necessary steps in paying interest if there is delay in processing drawback.
The Chief Commissioners informed the house that the issue of payment of interest in respect of delayed settlement of drawback be taken up with DG/Systems and initiate necessary steps to institutionalize the procedure.
Where to pay the fee for appeal?
in terms of Section 129E of the Customs Act, 1962, to file an appeal, against an order issued, there is a requirement to make a Pre-Deposit to the jurisdictional Custom House. At present there is no such prescribed instructions at New Custom House and at ACC, Mumbai to recover the pre deposit amount.
The Chief Commissioners, informed the house that the request is genuine and a suitable Standing Order would be issued in due course of time.