Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: VAT Audit :: TDS :: articles on VAT and GST in India :: due date for vat payment :: form 3cd :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: ACCOUNTING STANDARDS :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company
Latest Circulars »
 RBI-Framework for imposing monetary penalty on Authorised Payment Systems Operators / banks under Payment and Settlement Systems Act, 2007
 RBI-Sovereign Gold Bonds 2016-17 Series III – Operational Guidelines
  Registrations open for NCFE’s NFLAT (National Financial Literacy Assessment Test)
 Sovereign Gold Bond Scheme 2016 -17 – Series III
 Minutes of the Monetary Policy Committee Meeting October 3-4, 2016
 Registrations open for NCFE’s NFLAT (National Financial Literacy Assessment Test)
 Auction for Sale (Re-issue) of 7.35 per cent Government Stock 2024
 Auction of Government of India Dated Securities October 17, 2016
  Setting The Priorities Right (Shri S. S. Mundra, Deputy Governor – September 28, 2016 – at the 3rd SBI Banking and Economics Conclave in Mumbai)
  Financial Stability in a Weak Global Environment (Shri S. S. Mundra, Deputy Governor - September 22, 2016 - at the 7th SEACEN High Level Seminar for Deputy Governors in–charge of Financial Stability and Supervision, Mumbai)
 RBI issues Directions to United India Co-operative Bank Ltd., Nagina, Bijnor, Uttar Pradesh – Withdrawal of Directions

Regarding review of Risk Management System (RMS)
June, 18th 2012

Circular No.15/2012-Customs



Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

227-B, North Block,

New Delhi-110001


13th June, 2012



All Chief Commissioners of Customs / Customs (Prev.).

All Chief Commissioners of Customs & Central Excise.

All Commissioners of Customs / Customs (Prev.).

All Commissioners of Customs & Central Excise.

All Director Generals under CBEC.


Sir/ Madam,


Subject:  Review of Risk Management System (RMS) regarding



As you are aware Self Assessment has been introduced vide Finance Act 2011. This marks a major change in the system of assessment of customs duty of imported and export goods. Self Assessment is trust based control with more reliance on declarations of the importer and exporters.


2.         In order to implement self assessment effectively and to ensure its benefits to the trade, Board decided that current facilitation level under RMS should be enhanced significantly. Accordingly vide Board Circular 39/2011-Cus dated 2.09.2011 it was decided to enhance facilitation level up to 80%,70% and 60% in case of air cargo complexes, ports and ICDs respectively by rationalizing risk rules and risk parameters.


3.         Risk Management Division has since carried out rationalization of risk parameters and it is reported that facilitation level of Bills of entry has been enhanced appreciably. This means that that more and more numbers of Bills of Entry are not subjected to examination and assessment.


4.         Higher facilitation at the same time has led to a need for more scrutiny of Bills of Entry at Post Clearance Audit (PCA)/Post-Clearance Compliance Verification (PCCV) stage. It is therefore felt that percentage of Bills of entry selected for PCA need to be enhanced by concerned field formations. RMD has also reported that all Chief Commissioner should ensure that higher percentage of facilitated Bills of Entry should be subject to Post Clearance Audit/PCCV.


5.         Board has also introduced On Site Post Clearance Audit (OSPCA) vide Circular No 47/2011- Cus dated 21.10.2011. The Scheme currently covers ACP importers only. It was decided that in respect of ACP importers covered under OSPCA, transaction based PCA in vogue since 2005 after introduction of RMS should be phased out. However in respect of other importers, the same should continue to be operational.


6.         Board is therefore of the view that till the time OSPCA is made applicable to other categories of importers, the percentage of Bills of Entry selected for PCA at a Customs house should be suitably enhanced to safeguard the interest of revenue. Board  also desires that concerned Chief Commissioners of Customs should review the staff position in their jurisdiction and relocate more manpower for audit work as increased facilitation in terms of reduced examination have led to  lesser requirement of staff for examination of goods. It is therefore imperative that excess staff should be diverted for activities such as PCA and SIIB in Customs Houses.


7.    It is also reported that pendency in respect of transaction based PCA remain acute.  Board has taken a serious note of it and desires that the work should be accorded due consideration and pendencies reduced.


8.         These instructions should be complied with strictly and any difficulty in this regard may be brought to the notice of the Board immediately.


Yours faithfully,


(R.P. Singh)

 Director (Customs)



Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions