February 22, 2002

'15'

    The Central Excise revenue collection during January, 2002 has touched the record figure of Rs.6,776.44 crores, which is a quantum jump of 17.5% over the collection of Rs.5,769.75 crores during the same month last year. As a result the total collections this year have reached Rs.56,005.37 crores.

    The upsurge in the revenue collection during January, 2002 despite the apparent sluggishness in certain key industrial sectors has vindicated the various initiatives taken by Government during the year to simplify the Central Excise rules and procedures to facilitate the trade and industry. Also, an unprecedented level of monitoring at the highest level was done to collect the revenue due to the exchequer. All cases of arrears of revenue were identified and steps taken to realize the outstanding amount. Besides, a number of steps were taken to ensure against blockage of revenue in litigation. The revenue trend so far is a healthy indicator of far better results in the next two months of the Financial year and the performance last year would be surpassed.

    The Customs revenue collection has registered a decline in the current financial year. During April, 2001 – January, 2002, the Customs revenue collection was Rs.33,283 crores as against Rs.38,888 crores during the corresponding period of the last financial year.

    The major reasons for shortfall in revenue are economic slow down resulting in decrease in value and volume of imports, reduction in duty rates, increased revenue forgone on account of drawback, DEPB and other export promotion schemes. An analysis of revenue collection from individual commodity groups during the said period shows that except for vegetable oils, revenue has declined from all major commodity groups, such as machinery, petroleum products, gold, plastic, motor vehicles, chemicals, iron and steel, crude petroleum oil, project import and non-ferrous metals.

    The Government is monitoring the performance of the field formations on a monthly basis to augment revenue collection and to improve the image of Customs. The key items of Customs work closely monitored by the Board are adjudication of cases, recovery of arrears of duty, disposal of uncleared/unclaimed/confiscated cargo, finalization of provisional assessments, sanction of refund and drawback, settlement of audit objections, passenger facilitation, monitoring of Court cases, etc. Apart from this, the Government is attaching considerable importance to plugging leakages of revenue. The areas receiving utmost attention are checking under-valuation and unearthing of various commercial frauds. To check under-valuation, tariff values have been fixed for certain vegetable oils such as, crude palm oil, crude palmolein , RBD palm oil, RBD palmolein and brass scrap. Fixation of tariff values is a major step towards checking under-invoicing and protecting the interests of revenue. Further, the Directorate of Valuation is collecting, collating and circulating valuation data of sensitive items to check under-valuation and have uniform valuation of imported items at all Custom Houses.

    The special measures being undertaken for checking various commercial frauds include the following :

1. Special scrutiny by surprise checks about the actual nature of goods, their values, for specially identified exporters claiming substantial drawback claims to unearth drawback frauds/over valuations etc.
2. Similar special checks about the nature of the goods being exported, their values as also building of appropriate intelligence to detect abuses/frauds of DEPB/DEEC/DFRC schemes. …..2/-
3. Special checks about the bona-fides of the 100% EOUs, especially those importing huge quantities of sensitive commodities, in coordination with Central Excise Commissionerates.
4. Monitoring discharge of export obligations of various registered DEEC/EPCG licensees for timely action against defaulters.

    To augment revenue performance as also to improve the image of the Department, an Action Plan was drawn up for the year 2001-2002 for the field formations. The Action Plan covered areas, such as, measures to check under-valuation, unearthing commercial frauds, monitoring for speedy clearance of imports and exports and reduction of pendency in key areas of work. The Action Plan also included measures for implementing commitments in Citizen’s Charter for improving efficiency and public image, effective vigilance strategy, strengthening the grievance redressal system and staff welfare.

    As a result of efforts undertaken by the department, additional revenue has been realized from disposal of uncleared cargo to the tune of Rs.24 crores during April-December, 2001. Likewise, a sum of Rs. 335 crores has been collected by way of liquidation of arrears of revenue. The sale of confiscated goods during this period has yielded Rs.147 crores. Further, 11,000 cases were adjudicated and 15,500 provisional assessment cases were finalized during this period. The corresponding figures for drawback and refund claims are 4,12,600 and 4,900 respectively. The disposal value of unclaimed/uncleared cargo was Rs.78 crores during April-December, 2001.

    In the recent past the Government has taken several measures to simplify and modernize Customs procedures for the benefit of trade and industry. The main stress has been to change the procedures and on cutting down contact of trade with the officers to the extent possible and introducing computerization in Customs clearances. Some of the major trade facilitation measures undertaken recently include, implementation of EDI at ports, airports and ICDs/CFSs, opening up of a large number of ICDs/CFSs in the hinter-land, introduction of two shift working (8.00 AM to 10.00 PM) on working days at seven major Air Cargo Complexes, simplification in transshipment procedures for faster movement of cargo from the gateway ports to ICDs/CFSs and vice versa, consolidation of Less Container Load (LCL) cargo at gateway ports, abolition of merchant overtime at gates of the docks, one time permission for factory stuffing of export cargo, allowing courier imports and exports through certain Land Customs Stations, simplification of procedures to develop coastal shipping, and effected procedural simplification measures pertaining to EOU/EPZ/SEZ and other export promotion schemes.

    In the last two years Customs’ automation has been extended to all the major ports, airports and ICDs/CFSs. As on date, the import and export documents are processed electronically at 23 Custom Stations. Electronic Message Exchange has also commenced with several of Customs community partners like RBI, DGFT, DGCI&S, AEPC, etc.

    The departmental web site has gone online on 22.8.2000. Tele-enquiry Systems have been introduced at major Custom Houses for automated information regarding status of import and export consignments. Filing of import and export documents over the internet is expected to be operational shortly.

    For a long time now, there was a demand from the various quarters that the Customs circulars and instructions on various subjects should be put together in one place for the benefit of trade and industry as also for the departmental officers. In his Budget Speech for the year 2001-2002, the Hon’ble Finance Minister had announced that a Manual of Customs procedures and instructions would be brought out before 1^st September, 2001. In pursuance of this direction, a Customs Manual was published in September, 2001 covering and explaining the important aspects of Customs work in a simple and lucid language for the benefit of trade and industry.