Implementation of “On Site Post Clearance Audit” – reg.

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....ing in self-assessment of import/export duties by importers/exporters vide the Finance Act, 2011. 2. OSPCA is a trade facilitation measure aimed at expediting clearances while safeguarding the interest of revenue. "Self-assessment" reposes trust on an importer/exporter to make correct import/export declarations in terms of description of goods, value, exemption notification etc. for clearance of import/export goods. Further, Section 17 of the Customs Act, 1962 provides that the proper officer may verify the self-assessment. On the import side, the verification is done with help of a "Risk Management System" (RMS) that validates all Bills of Entry on basis of specified risk rules and, if warranted, identifies those that require review of ....

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....proper officer for verification of correctness of assessment of duty on imported or export goods at the premise of importer or exporter. Further, Section 157 of the said Act empowers the Board to frame regulations on the manner of conducting audit at the premise of the importer or exporter. Accordingly the "On Site Post Clearance Audit at the Premises of Importer or Exporter Regulations, 2011" has been notified w.e.f. 4.10.2011. Other recent supporting legislative changes include enhancing time limit to one year for refund of Customs duty and for demanding Customs duty under Sections 27 and 28 of the Customs Act, 1962 respectively. 5. When OSPCA is conducted it should cover all import/export transactions including those under the export ....

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....d as under: (i) Those that are registered with LTU Commissionerates - to be audited by the audit wing of LTU concerned; (ii) Multi Location Units - to be audited by the Central Excise Commissionerates with the nodal Commissionerate being the one having jurisdiction over the registered/head office of the ACP importer; and (iii) Others ACP importers - to be audited by the Central Excise Commissionerate having jurisdiction over the head office/registered office of the ACP importer. 8. As aforestated, OSPCA is viewed as a trade facilitation measure and one way to do away with avoidable interface with the Department. ACP importers with manufacturing facilities and/or those registered as service providers/recipients ....