At a time when every gesture of the government is geared to cut down transaction cost and simplify and quicken procedures involved in Indian exim trade, the latest notification by Customs at Nhava Sheva, the leading gateway port of containerized cargo in the country, is serving just the opposite, according to a large number of exporters.
As per the revised procedure, that got into effect from October 1, 2009, factory stuffed and export containers are made to route through Container Freight Stations (CFSs) for the purpose of verifying registration and grant of Let Export Order (LEO) before they are allowed gate-in at port terminals.
Cargo belonging to status holders,
EOU and SEZ units still enjoy the facility of direct entry into port terminals as they are untouched by the new guidelines. However, for small exporters, whose boxes constitute nearly 60% of daily export of about 1500 boxes out of Nhava Sheva, the procedure of wheeling the cargo to the CFSs translate into avoidable delay and extra expenditure.
According to Customs officials, the revised procedure is implemented primarily to check fraudulent exports due to heavy inflow of export containers.
As stuffing of export goods are carried out at the factory under the supervision of the Central Excise Officers who acts as Customs Officers and the containers are allowed by the Customs after elaborate procedure, the boxers are not subjected to re-examination or re-assessment at the CFSs. However, the new rules stipulate moving the containers to any one of the 12 odd CFSs only to check the container number and seal number as per the export invoice and shipping bill. After this, the LEO is allowed in the EDI system and copy of the shipping bill is generated. Even though the facility has been provided for 24x7, the Customs EDI gets officially switched off between 11.00 PM to 7.00 AM for updating the system.
After completing the formalities at CFSs, the containers are checked at port terminals. In case of delay or cancellation of vessel, there is also a charge payable to the port.
"The new procedure is not effective in checking the fraudulent exports but will certainly involves more delay and extra expenditure in clearing the export cargo, which will have to be borne by us," said an exporter based out of Mumbai. He alleges that due to this new stipulation only CFSs and Customs are benefited.
"They keep saying this, for the concept of CFS and other facilities there have to be some regulation without which it is quite possible that there could be lot of duty evasion...," said an official of a leading CFS in Nhava Sheva. "Port users always put forth various arguments. But for Rs 300 and a few hours if the government can have all information and everything under its control, I think it is worthwhile," he said on condition of anonymity "The procedure can be made effective and simple by having a superintendent who could allow the LEO on the basis of the shipping bills processed in his system," said a Customs consultant.
"It is incumbent upon the Customs authorities to take the export trade community into confidence and conduct trial before implementing a new procedure and to see that there is no extra cost and delay involved in the procedure," he added.
Source : The Economic Times