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F.No.val/nidb/12/2005                                       Mumbai, 21st Feb., 2008

 

 

                        Minutes of the meeting held on 14.02.08 ON CRD AND SVB MATTERS

 

         

The Commissioner (Valuation), Directorate General of Valuation, Mumbai has conducted a meeting of Officers dealing with SVB in Chennai, Delhi, Kolkata and Mumbai Custom Houses on 14.02.08 in Mumbai and the following Officers attended the meeting.

 

(i)     Shri Bani Bhattacharya, ADG, RMD, Mumbai.

         (ii)     Shri S. K. Rahaman, Addl. Commissioner, Valuation, Mumbai.

         (iii)    Shri. M. R. R.  Reddy,  Addl. Commissioner,  SVB, Mumbai.

         (iv)    Shri Y. K. Agarwal, Jt. Commissioner, Valuation, Mumbai.

         (v)     Shri K. Balaji Majumdar, Jt. Commissioner, RMD, Mumbai.

         (vi)    Shri Jitendra Kumar, Jt. Commissioner, ACC, Delhi.

         (vii)  Ms. Indira Sisupal, Asstt. Commissioner, SVB, Chennai Custom      House.

(viii)          Shri I. Tirkey, Asstt. Commissioner, SVB, Kolkata Custom

                   House.

         (ix)     Shri Deepak Bhilegaonkar, Assistant Commissioner, Valuation Mumbai.

         (x)      Shri  Ashish Mishra, Asstt. Commissioner, Valuation, Mumbai.

(xi)           Shri T. R. Krishnakumar, Superintendent, Valuation, Chennai.

    (xii)     Shri George Fernandez, Superintendent, Valuation, Mumbai.

 

 

2. The Commissioner (Valuation) has welcomed the Officers to the meeting. He has explained the importance of maintaining updated Central Registry Database (CRD). There was a presentation from DGOV about CRD.

 

3. PENDENCIES OF DISPOSAL OF SVB CASES:- The main issue relating to functioning of SVBs pertained to huge pendencies. The disposal performance of various SVBs is given in Annex A.  As per the Board Circular, investigation and finalization of SVB cases must be completed within 4 months of registration, failing which extra duty deposits should be discontinued. However, Annex A shows  many cases  which are of pendency more than 4 months. The Commissioner has asked the SVB Officers to finalise the pending cases immediately.

 

 

4. CONFIRMATION E-MAIL:- As on date, all additions / modifications will be verified by a system generated return mail system.   A system-generated email will automatically be generated and mailed to the email address of the SVB Supervisor who is requesting for the addition/modification. Many of the SVB Officers have asked DGOV to create e-mail addresses for their SVBs to

                                                

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which such system generated e-mail could be sent. The Commissioner (Valuation) has directed that e-mails (e.g. svbm@dov.gov.in) may be created on DGOV mail server.  The mail addresses alongwith the passwords would be handed over to the respective SVBs. Whenever there is a change in the Officers posted in SVB, the passwords may be handed over by the transferred officer to the incoming officer.

 

5. E-MAIL TO RMD ABOUT ADDITIONS / MODIFICATION:-The Joint Commissioner, RMD, Mumbai informed that RMD must be taken into loop while registering and/or amending the data. Every time a SVB case is registered and amended, the mail server can send a mail to RMD automatically so as to enable the RMD consider the risk involved and treat it appropriately, wherever required. For this, an e-mail account as deemed fit may be created and shared by DGoV with RMD. Finer operational details of this could be worked out in consultation, once this proposal is agreed to.  

 

6. UPDATING CRD:-It is found that SVB units are neither entering details of new cases registered nor amending the status of cases on which decisions have been taken. The discrepancy in the number of cases shown in CRD on DGOV web site and the number of cases shown pending in the reports submitted by various SVBs (Custom Houses), is shown in Annex B. The Commissioner has directed all SVB Officers that the updations may be done immediately.

 

7. DEFICIENCIES IN DATA:- On careful study of this database, certain deficiencies have been noticed. The type of deficiencies noticed is enclosed as Annex C. It is noticed that faulty data has been entered with wrong IECs of importers. The status regarding decided/pending for old cases is not correctly fed by respective SVB supervisors. These deficiencies were pointed out by DGOV vide letter VAL/NIDB/12/2005DT 19-11-07 The details of records as in Nov’07, where clarification was required from Custom Houses having SVBs  were enclosed and sent. The DGOV has also nominated a nodal officer from Mumbai HQs and from Zonal units to provide guidance/assistance to SVBs for updating the CRD. Custom Houses having SVBs need to take this seriously. The details of records as in Feb’08, where certain deficiencies are noticed and where certain clarification was required from Custom Houses having SVBs  was prepared and  the same was discussed in the meeting. The Commissioner has expressed the urgent need of the SVB Supervisors to do this job. The corrected version may be uploaded by the Customs House directly on the website, and the DGOV may be kept informed of the same.

 

 8.  EFFECT ON RMS:-The ADG, RMD and JD, RMD have explained to the SVB Officers about the implications of deficiencies in data of CRD on the working of Risk Management System (RMS). They have explained in detail as to how the risk parameters are decided on the basis of available data in CRD. It has been reported that the data was incomplete and contradictory, hence the

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same could not be put to precise use in managing risk associated with related party transactions on the pre-clearance as well as post-clearance environments. Hence, they suggested that due diligence may be exercised while entering the data and to ensure that key data elements like IEC, Importer’s Name, Supplier's Name, Supplier's Country, whether Transaction Value/Invoice Value/Declared Value was accepted or not etc., are invariably entered. They also stated, that in the post-RMS scenario this was very crucial and any leniency on this front might lead to revenue loss.  Accordingly they have emphasized the need to correct the deficient data immediately.

 

9. CRD DATAFIELDS:-The DGOV has proposed certain changes in the data format through system and has  proposed certain changes in the usage of  data fields, which are enclosed as Annex D1 and D2. All the SVB Officers were receptive and have  supported the proposed changes in the data format through system. Apart from the above changes, some of the SVB Officers have also suggested that a new data field namely “whether by Department/Party/Both” may be introduced after “whether Appeal filed or not”. The Commissioner Valuation has directed that the above proposed changes may be made applicable with prospective effect. The opinion of DG, Valuation was communicated to all the SVB Officers that all SVBs should fill up the missing data in one month’s time. If they fail to do so, the incomplete data should be deleted and the SVB concerned should re-examine these cases.  The list of deleted cases may be circulated to all Customs Stations.

 

10. DGOV SVB REGN No:-  At the time of registration of a new case, it was suggested that it may be made mandatory to generate a DGOV SVB REGN No. e.g. DOV0000012 on website. The No. is required for filing the BE by that importer with PD and  1% EDD. In BE Format, at S.No 38 (a) the Ref No. to be quoted is website generated DGOV SVB REGN No. This No is mandatory for issue of PD Circular and the No. shall be quoted on the Circular.

 

11. CASES UNDER INVESTIGATION:- On opening of the menu for “Enter Details of a New Case” the dialogue box shows various details for the registry of the case. for present status of the case, the drop down box gives four options, namely IN FORCE, STAY, APPEAL and DROPPED. The SVB Delhi has suggested that one more option namely “ cases under investigation” may be added in the drop down box of Present Status of Case for all the new cases registered and which are under investigation. The Commissioner Valuation has directed the necessary change may be done.

 

12  ORDER IN ORIGINAL : The Additional Commissioner SVB Mumbai has suggested that the complete Order-in-Original(OIO) or atleast the  “Order” portion of the OIO may  be entered in CRD apart from the “gist of the SVB decision” in CRD. The “gist of the SVB decision “ may be made  be in HTML so that , if it is clicked, then only the OIO will be displayed in a separate window in PDF format . The Commissioner Valuation has directed the necessary change may be done.

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13. INTRANET VERSION OF CRD :  As it is not possible for all appraising staff to access CRD through intranet, the DGOV has prepared intranet version of CRD which can be accessed by appraising staff in their local intranet. The DGOV has sent SVB intranet software along with initial database to all Custom stations vide covering letter no.VAL/NIDB/12/05 dtd.18.10.2005.  It is learnt that, at many Customs formations,  the CRD is not made available in the intranet to the officers.  The DGOV has also reminded all Customs stations vide letter of even no. dtd.17.5.2006 about the feedback. But till date no feedback has been received. In the meeting it was once again  suggested that the intranet version of CRD may be loaded. A CD containing the CRD intranet version software with the CRD database as on date was given to all SVB Officers . The Commissioner  Valuation has directed that the Zonal Units of DGOV may supervise this work in the Customs formations in their jurisdiction . The CRD is required to be updated on  monthly basis by accessing the database either through ICENET or by downloading from DGOV website. It was  also suggested that a training session may be conducted to the appraising staff on the utilisation of CRD. If required staff from  DGOV may also be called conducting such training

 

14.VALUATION INSPECTION OF SVB Units:- In the Chief Commissioners’ Conference held on 03.01.06, after detailed discussion, it was decided the DGOV will undertake inspection of the SVBs of the Custom Houses with regard to the SVB orders.  During inspection, the statistics will also be crosschecked with reference to the records available with the SVB as well as the concerned appraising group.  These inspections should be done with regular periodicity.  Once such inspection was conducted  in SVB Chennai in Oct’07 and a copy of inspection notes was circulated to all in the meeting. The Commissioner Valuation has asked the SVB Chennai to attend to the issues raised in the inspection. It was proposed that such inspections of other SVBs also would be conducted shortly.

 

15.  The meeting was concluded by proposing a vote of thanks to all who attended the meeting.

 

 

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