Board Prescribes Detailed
Procedure for Inspection of ICDs, Customs Commissioners to Accountable for both
Inspections and Reporting
·
No Provision for Audit of Action on
User Complaints
[CBIC
Circular No. 44/2020-Customs dated 8 October 2020]
Subject: Procedure for inspection of ICDs/CFSs/ AFSs.
Kind
reference is drawn to Audit Report 16 of 2018 on Working of Inland Container
Depots (ICDs) and Container Freight Stations (CFSs) wherein several
deficiencies have been pointed out by the Audit. Major deficiencies pointed out
by the Audit arc related to land area requirement, infrastructure, specified
demarcated areas for imported and export goods and fumigation, adequate space
for storing hazardous goods, monitoring of the movement of export and import
cargo, hand ling of un-cleared cargo, execution of Bond, Bank Guarantee and
Insurance and theft and pilferage of cargo.
2.
Further the Audit, among other things, observed that there is lack of internal
control including internal audit and inspection. Audit has also observed that
corrective action on systemic deficiencies should not be restricted to the
instances commented in audit report and all the field formations may be
sensitized about the system deficiencies.
3.
The Board vide Notification No. 26/2009-Customs (N.T. ) dated 17.3.2009
notified Handling of Cargo in Customs Area Regulations 2009 to regulate the
functioning of Customs Cargo Service Providers including custodians of ICDs /CFSs.
Further, Circular 13/2009 dated 23.03.2009, Circular No. 04/2011 dated 10.
01.2011, Circular No. 40/2016 dated 26. 08.2016 and
Circular No. 49/2018 dated 03.12.2018 were also issued to streamline various
procedures relating to ICDs/CFSs. Further, D.O letter No. 434/15/2017-Cus.IV
dated 16.08.2019 was issued by Member (Customs) wherein, he has inter alia,
stated that it is necessary that each ICD/CFS is closely monitored by way of
some sort of audit /visits to ensure that the performance of ICDs/CFSs is of
desi red standards and requested to put a system in place and take necessary
action in a time bound manner. Chief Commissioners were requested to take stock
of the issues for all ICDs/CFSs under their jurisdiction, draw a plan for time
bound actions and submit an action taken report by 30th November,
2019. However,
the compliance reports in response to the above letter arc not complete in many
zones. Apparently, many other field formations arc not checking the performance
of ICDs and CFSs in their jurisdiction in a systemic way on regular basis.
4. Therefore, Board has decided to put in place a proper
system for regular inspection for ICDs/CFSs. Such a system would ensure better
functioning of ICDs/CFSs in future and would be of great benefit to the
importers and exporters using these facilities. Periodical inspections and remedial
actions would also avoid these kinds of audit objections. It will
bring accountability, standardization and better facility for cross- border
trading and in turn improve case of doing business.
5.
Accordingly, the Board directs that
(i) The jurisdictional Commissioner at the beginning of every
financial year shall chalk out an action plan to conduct inspection of
ICDs/CFSs in their jurisdiction, by an officer of the rank of Deputy/ Assistant
Commissioner or above (who is not in-charge of such ICD/CFS) once every
financial year probably in the first quarter of the financial year.
(ii) A
report on the inspection conducted shall be submitted to the jurisdictional Commissioner
of Customs with copy to Chief Commissioner concerned in the proforma
given as per Annexure.
(iii) The
first inspection, wherever required, shall be completed by 31. 12.2020.
(iv) The
jurisdictional Commissioner of Customs upon receipt of the inspection report
shall take remedial action wherever deficiencies arc noticed including penal
action on the defaulting ICDs/CFSs.
(v) Normally
the operations and records in respect of the previous financial year shall be
covered in the inspection.
(vi) For
the ICDs/CFSs, which have not been inspected/audited so far, the initial
inspection shall be for the period of last five years or from the date of
commencement whichever is earlier.
(vii) The Directorate
General of Performance Management during the inspections of field commissionerates, done by them shall also examine the
records relating to the inspections of ICDs/CFSs
6.
All the field formation and stakeholders may be suitably sensitized about the
circular.
7.
Difficulty, if any, faced in the implementation may please be brought to the
notice of the Board.
F.No.394/86 /2020-Cus(AS)