No On-site Audit
for Exports
Letter by CBEC Chairman to Delhi
Exporters Association on Implementation of On-site Post Clearance Audit
[D.O.F.No.131311/2011-Ch
(E&C) dated 1st September 2011]
This has reference to your letter dated 23rd
August, 2011 wherein certain apprehensions has been raised by the Association
that the proposed implementation of On-site Post Clearance Audit (OSPCA) by the
Customs will cause hardship and inconvenience to the exporting community.
2. At the outset,
I would like to inform you categorically that for the present the scheme will
not be applied to exporters. OSPCA will be implemented in a phased manner
beginning only with importers who avail the Accredited Clients Programme (ACP).
Other categories of importers would be covered in subsequent phases but even
then, taking into account administrative costs of conducting OSPCA and the
nature and size of the business it is not intended to cover all importers and
the present Customs House Audit shall continue side-by-side with OSPCA. I may
add that OSPCA would require an effective Risk Management System (RMS) as an
essential prerequisite, which is so far not even introduced on the export side.
3. In the
connection, you would appreciate that OSPCA is a globally preferred mechanism
to provide greater Customs facilitation in terms of faster clearances to the
trading community while at the same time ensuring compliance of the legal
provisions. This also allows the development of simplified Customs procedures
for such traders. Another advantage offered by OSPCA is a single point audit
combining Customs, Central Excise and Service Tax. It is in this background
that in like manner of other Customs administrations, the Indian Customs has
proposed to implement OSPCA. This is one vision of Customs which would take
some more time and background preparation for implementation on the export
side. The Chambers of Trade & Industry would be definitely consulted before
its implementation on export side.
4. I expect this
would set at rest your concerns that OSPCA will cause any inconvenience or
hardship to the exporting community.