The Customs department will introduce a Risk Management System (RMS) for exports as an experimental project at Inland Container Depots in Mulund (Mumbai) and Patparganj (Delhi), with effect from July 15. The move is expected to ensure proper and speedy disbursement of drawback and other export incentives, effective utilisation of available personnel and suitable monitoring of export consignments, to ensure compliance with applicable laws.
Under the new system, the RMS will electronically process the data contained in the shipping bills, filed electronically. And, determine whether these should be taken up for Customs control (verification of self-assessment or examination or both) or given the 'Let Export Order (LEO)' directly. The RMS will also provide instructions for the appraising officer/superintendent or examining officer/inspector or the LEO Officer, wherever necessary, to be followed by the field formations. Any need for variance with the RMS instructions will require approval of senior officers.
Apparently, the RMS will enable clearance of low risk consignments on the basis of self-assessment or declarations by exporters. The shipping bills selected for examination and/or assessment will be high value consignments, shipments where export incentives are claimed beyond the specified threshold limits, cargo being shipped to sensitive destinations and those of a sensitive nature. The present practice of routine verification of self-assessment and examination of bills will be discontinued. The focus will be on quality assessment and examination.
With implementation of export RMS, a post-clearance audit function will also be introduced. The RMS will not only process the data and provide the output up to the goods examination stage but also process the shipping bill data after the Export General Manifest is filed, by selecting shipping bills for drawback scrutiny and Post Clearance Audit (PCA). The shipping bills selected by RMS will be directed to the audit officers, who will scrutinise declarations with reference to export incentives, duty drawback and other compliance requirements. They will also scrutinise declarations with reference to data quality. In case any possible short levies or undue claim of export incentives are noticed, a letter will be issued to the exporter or Customs house agent.
The Central Board of Excise and Customs expects the RMS in exports to hasten the process of cargo clearance and contribute to reduction in dwell time. This would reduce the transaction cost. In due course, the RMS will be extended to all Customs stations where shipping bills are processed electronically.
The new system will require the Customs to re-allocate the personnel required to assess the shipping bills, examine the export cargo and take up PCA. For exporters, the advantage would be the absence of manual intervention in the selection of shipping bills for examination of export cargo or for assessment or for audit after export of goods.
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