Exporters and importers should start focusing on ‘self-assessment' of goods even as the Customs would like to be more of a facilitator of cargo movement, according to Mr Y.G. Parande, Member, Central Board of Excise and Customs (Budget and Computerisation).
There is currently self-assessment of goods in service tax and excise. This has been extended to Customs as well, he said at Cargo Scope, a two-day conference and exhibition organised by the Shipping Times along with the Southern India Chamber of Commerce and Industry.
The Finance Bill, 2011, stipulates ‘Self-Assessment' of Customs duty in respect of imported and export goods by the importer or exporter, as the case may be. This means that while the responsibility for assessment would be shifted to the importer / exporter, the Customs officers would have the power to verify such assessments and make re-assessment, where warranted.
Fast clearance
Mr Parande said the onus of assessment of goods entirely shifts to the exporter or importers for quicker clearance of cargo. “We should move from suspicion-based to trust-based assessment. The Customs department would not like to intervene in pre-clearance of cargo. Our officers will be more of compliance officials than assessment officials,” he said.
According tothe self-assessment of goods, the exporter or the importer should classify and assess the value of the goods correctly. There will be a guidance cell in the Customs department but the advice will not be legally binding, he said.
Compliance issue
The Customs department will, in due course, shift to post-clearance audit and onsite audit when required. There is greater need for the industry to invest time in compliance. The Custom House Agents too should start training their people on the compliance, he said.
Under the scheme of self-assessment, the Bill of Entry or Shipping Bill that is self-assessed by the importer or exporter may be subject to verification with regard to correctness of classification, value, rate of duty, exemption notification or any other relevant particular having bearing on correct assessment of duty on imported or export goods.
Verification
Such verification will be done selectively on the basis of the output of the Risk Management System (RMS), which not only provides assured facilitation to those importers having a good track record of compliance but ensures that on the basis of certain rules, intervention, high risk consignments are interdicted for detailed verification before clearance. For the purpose of verification, the proper officer may order for examination or testing of the imported or export goods.