The New Year gift from Central Board of Excise and Customs (CBEC) was extension of 24x7 customs clearance to 13 more airports in respect of all export goods and to 14 more seaports in respect of specified import and export goods. Its circular of December 31, 2014, gives effect to the finance minister’s promise in his Budget 2014-15 speech to deepen this facility.
It was first introduced as an experiment in September 2012 at four air cargo complexes (Bengaluru, Chennai, Delhi and Mumbai) and four ports (Chennai, Navi Mumbai, Kandla and Kolkata). It covered ‘facilitated’ bills of entry, where no examination and assessment is required and factory-stuffed export containers and export consignments are covered by free shipping bills. This was extended to 13 more air cargo complexes in June 2013 and at the four where it already existed, to cover export of all goods. CBEC advised exporters that as shipping bills may be filed 14 days in advance of export by sea and seven days ahead in the case of export by air, they should file do so well in time, to facilitate smooth clearance.
With the latest CBEC circular no. 19/2014-Cus dated December 31, the facility of 24x7 clearance for specified imports viz. goods covered by ‘facilitated’ bills of entry and specified exports viz. factory-stuffed containers and goods exported under free shipping bills will be made available at 18 specified seaports. And, for specified imports (goods covered by facilitated bills of entry) and all exports (covered by all shipping bills) at 17 specified air cargo complexes.
After introduction of self-assessment, the responsibility to make a correct assessment of Customs duty had shifted to importers and exporters. The Customs could focus more on consignments interdicted on the basis of risk assessment. Further, CBEC had increased the level of facilitation to 80 per cent in the case of air cargo complexes, 70 per cent in case of seaports and 60 per cent for inland container depots and container freight stations. So, 24x7 Customs clearance is possible without much addition to staff.
The finance ministry, however, dampened the celebrations by deciding to not extend beyond December 31 the notification of March 2014 reducing excise duty rates on two-wheelers, four-wheelers, consumer durables and capital goods. Apparently, the shortfall in revenue collection and fiscal pressure prompted that decision but the perception is also that the duty cuts did not help boost demand for those goods. The ministry cut the tariff values on gold, silver and vegetable oils, extended the nil duty on chickpeas, imposed fresh anti-dumping duty on pentaerythritol and allowed import of sodium citrate without safeguard duty from developing countries (other than China).
The commerce ministry lifted the prohibition on export of buffalo tallow from integrated meat plants registered with the Agricultural and Processed Food Products Export Development Authority and having rendering facilities, subject to compulsory pre-shipment bio-chemical tests by approved laboratories. The Director General of Foreign Trade has prescribed detailed procedures for issue and modification of importer-exporter code numbers online.
In sum, we at last saw some activity towards the end of 2014. Meaningful reforms should follow in 2015.
Email: tncrajagopalan@gmail.com
