The (CBIC) Central Board of Indirect Taxes & Customs has been notified the process for inspection of (ICDs) Inland Container Depots or (CFSs) Container Freight Stations or (AFSs) Air Freight Station. The circular stated that the periodical inspections and remedial actions would avoid these kinds of audit objections. This inspection of ICDs/CFSs/AFSs will bring standardization, accountability, and better facilities for cross-border trading and in turn improve ease of doing business.
Inspection of ICDs/CFSs/AFSs
In the 16 Audit Report of 2018 on Working of Inland Container Depots (CDs) and Container Freight Stations (CFSs) several defects have been pointed out related to land area requirement, infrastructure, specific demarcated for import and export goods, fumigation[1], monitoring of the movement of import and export cargo, adequate space for storing hazardous goods, execution of Bond, handling of un-cleared cargo, Bank Guarantee and Insurance and theft, pilferage of cargo.
The Central Board of Indirect Taxes & Customs has then decided to put in place the proper system for regular inspection for ICDs/CFSs, with an objective to ensure better functioning of (ICDs) Inland Container Depots and, (CFSs) Container Freight Stations in future. This would be of great benefit to the exporters and importers using these facilities.
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Procedure for Inspection of ICDs/CFSs/AFSs
Various Directions by CBIC
The CBIC has issued various directions that are as follows:-
- First- The jurisdictional Commissioner at the beginning of every financial year will check out an action plan to conduct an inspection of (ICDs) Inland Container Depots and (CFSs) Container Freight Stations in their jurisdiction, by an officer of the rank of Deputy or Assistant Commissioner or above. The condition has to be officer must be such who is not in-charge of ICD/CFS. The inspection has to done once every financial year probably in the first quarter of a financial year.
- Second- The inspection report must be submitted to the jurisdictional Commissioner of Customs with a copy to the concerned Chief Commissioner in the on Performa.
- Third- The first inspection must be completed by 31st December, 2020.
- Fourth- The jurisdictional Commissioner of Customs on the receiving of the inspection report have to take remedial action wherever the defects have been noticed including the penal action in case on defaulting by (ICDs) Inland Container Depots and (CFSs) Container Freight Stations.
- Fifth- Normally all the operations and records in respect of the previous financial year has to be covered in the inspection.
- Sixth- In case the (ICDs) Inland Container Depots and (CFSs) Container Freight Stations that have not been inspected and audited so far, the initial inspection must be done for the period of last five years or from the date of commencement, whichever comes earlier.
- Seventh– The Directorate General of Performance Management during an inspection of field commission rates done, must also examined the records related to the inspection of (ICDs) Inland Container Depots and (CFSs) Container Freight Stations.
Conclusion
The CBIC has stated periodical inspections related to the inspection of (ICDs) Inland Container Depots and (CFSs) Container Freight Stations and (AFSs) Air Freight Station. It will ensure the proper functioning for the same. The Board has earlier notified Handling of Cargo in Customs Area Regulations 2009 to regulate the functioning of Customs Cargo Service Providers including custodians of ICDs/CFSs.
Read our article:CBIC Prescribes Measures for timely Assessment of Bills of Entry and Clarification of Faceless Assessment
Circular-No-44-2020
