Regarding implementation of ‘On Site Post Clearance Audit’.

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....al Excise (Appeals) All Directors General under CBEC.   Sir / Madam,   Subject:   Implementation of 'On Site Post Clearance Audit' - Regarding.             CBEC has introduced the scheme of 'On Site Post Clearance Audit' or OSPCA at premises of importers and exporters' vide Notification No. 72/2011-Cus. (NT) dated 4.10.2011. Guidelines for the conduct of OSPCA had been earlier circulated on 13.5.2011.  This scheme complements the legislative change resulting in self-assessment of import / export duties by importers / exporters vide the Finance Act, 2011. 2.         OSPCA is a trade facilitation measure....

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.... for importers to further reduce the dwell time. Therefore, a necessity was felt to introduce OSPCA.  3.         OSPCA allows verification of self-assessment on periodic basis by scrutiny of relevant business records at the importers / exporters premise. Thus, an importer or exporter can benefit from reduced clearance time and can deal with the goods promptly, saving on insurance, warehouse and storage charges. On the other hand, the Customs can do a comprehensive company oriented check to ensure that imports or exports conform to the declarations. 4.         OSPCA is provided for vide Section 17(6) of the Customs Act, 1962, which empowers the proper ....

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...., if required. There is also a provision of imposing penalty on an importer / exporter in case of contravention of any provisions of the said Regulations.  6.         To begin with, Board has operationalized OSPCA w.e.f. 1.10.2011 only for importers registered under the Accredited Client Programme (ACP). It has also been decided that ACP importers shall be subjected to OSPCA on annual basis i.e. once during each financial year. However, during the transitional phase of the current financial year, the records for previous months beginning from 1.4.2011 may be taken up for audit. Coverage of OSPCA shall be increased in subsequent phases and the periodicity of audit in respect of other entities p....