The Hindu Business Line : Chennai Customs House to have risk management system

System's functioning
The RMS will strike an optimal balance between facilitation and enforcement and enable clearance of low risk consignments based on the acceptance of the importer's self assessment and without examination.
In the initial stage, the system will be made operational for Appraising Groups 1 to 6.

Chennai , May 30

The Risk Management System (RMS), an electronic system to clear consignment, will be introduced at Chennai Custom House from May 31.

With this, the present practice of routine assessment, concurrent audit and examination of almost all Bills of Entry — an account of goods entered at a Customs House for imports and exports, detailing the merchant, quantity of goods, their type, and place of origin or destination — will be discontinued.

The focus will now be on quality assessment, examination and post clearance audit of the selected bills in order that the resources of the department are utilised more effectively, says a public notice.

In the initial stage, the system will be made operational for Appraising Groups 1 to 6. As regards the Bills of Entry pertaining to Group VII, the date of implementation will be informed in due course.

The RMS will strike an optimal balance between facilitation and enforcement and enable clearance of low risk consignments based on the acceptance of the importer's self assessment and without examination.

This will enable the department to enhance the level of facilitation and speed up the process of cargo clearance without compromising the interests of revenue.

Actual procedure

Declaration of Bills of Entry and the Import General Manifest (IGM)filed electronically in the ICES (Indian Customs EDI System) either through the service centre or through the Indian Customs and Excise Gate Way will be forwarded to the system.

The RMS will then process the data in the Bill of Entry and the IGM and generate an electronic output for the ICES. This output will determine whether the Bill of Entry will be taken up for action (appraisement or examination, or both, by the officers) or such self assessed bill is given out of charge directly — after duty payment but without assessment and examination, the notice said.

The RMS will facilitate a large number of Bills of Entry, which are perceived to be compliant with the Customs Laws and Regulations. Such self assessed bills will be processed by it to evaluate the risk in the bill if any, duty will be calculated and challan will be generated by the ICES based on declaration/self assessment by the importer.

Clearance of goods

The goods will be ready for out of charge on the basis of the importers' declaration/self assessment and without any assessment/examination by the officers, says the notice.

When Bills of Entry are filed through the Indian Customs and Excise Gate Way or service centre, importers would be able to obtain the copies of their self assessed bills and challan within a very short time.

After payment of duty, goods can be cleared on presentation of the required documents for Customs out of charge to the shed appraiser posted at the shed concerned.

Some Bills of Entry will, however, be selected by the RMS and sent for assessment and/or examination by the officers based on risk parameters and also on a random basis. Similarly, bills may get selected for action based on specific intelligence available.

Further, if any non-compliance is noticed, the system may also select such bills for assessment and/or examination.

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