TaxTMI 
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TaxTMI 
Streamlining of Customs post Clearance Audit (PCA) work — Instructions
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....d the Instruction No. 18/2020 dated 06.10.2020 relating to Customs Post Clearance Audit. Under the new Customs Post Clearance Audit (PCA) scheme there are Transaction Based Audit (TBA), Premise Based Audit (PBA) and Theme Based Audit (ThBA) and upon review thereof the findings are: i. There is a huge pendency in all the three types of Audit; ii. There is no proper system of reporting; iii. Monitoring of Customs PCA performance is not effective; iv. The follow up mechanism of audit detections needs strengthening; v. Time lines need to be streamlined for various activities of Customs PCA; vi. Monthly meetings to be streamlined; vii. Supervision by the Zonal Chief Commissioners is not effective and viii. Quarterly bulletins need improvement in term of content and structure. 2. Further, the Board has noticed several gaps in the existing reporting system. These include absence of proper formats for reporting, lack of prescribed timelines and inadequate performance monitoring mechanism etc. 3. The Board has examined the matter and accordingly it has been decided to issue the following instructions in respect of Customs PCA. 3.1 Transaction....
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....ns. The risk parameters will be dynamic in nature and would keep on evolving as per feedback received and additional information available. The number of entities to be selected for audit during a financial year is to be calculated as per the capacity to conduct audits as informed by the Audit Commissionerates and finally decided by the committee.] 2[3.2.2. Selection of Premises: The DG Audit shall prepare the list of auditees for PBA in consultation with the DGARM. For this purpose, a committee headed by the DG Audit consisting of all the Commissioners of Customs (Audit), representative from DRI HQ and the Principal ADG/ADG, NCTC, Mumbai shall meet in February every year to finalise the list of auditees for PBA for the next financial year, and thereafter as felt necessary. The final list shall be communicated to the Audit Commissionerates before 31st March. The Audit Commissionerates shall plan PBA for the year in such a way that the number of auditees is evenly spread in all the months and all selected entities are audited. It must be ensured that every entity selected should be subjected to the full audit cycle starting from Desk Review, Audit Plan, Audit Verification and prepa....
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....ats in the DDM portal before 10th of every month from 01.04.2021 onwards. 3.5. Post Audit Compliance cell (PACC) 3.5.1. All the Customs (Audit and jurisdictional) Commissionerates shall have PACC to ensure effective monitoring of Customs PCA. The PACC of Customs (Audit) Commissionerates shall monitor TBA, PBA and ThBA, as the case may be. The PACC of jurisdictional Commissionerates shall monitor TBA and will also coordinate with the audit Commissionerates on PBA and ThBA. The ADC/ JC rank officer shall supervise the proper functioning of PACC. 3.5.2. Principal Commissioner/Commissioner of Customs (in charge of audit or jurisdictional Commissionerate shall convene monthly meeting of PACC and shall send a consolidated monthly report to the ADG Audit of the concerned Zone within seven days of the meeting. The monthly PACC meeting shall be completed at least seven days before the MCM meeting, so that there will be enough time to prepare for the MCM. 3.6. Monitoring Committee Meeting (MCM) 3.6.1. The principal Commissioner/Commissioner of Customs (in charge of audit or jurisdictional Commissionerate as the case may be) shall convene monthly meeting of MCM preferably in the th....
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....asis, and d) committee of Commissionerates of Customs (audit and jurisdictional) headed by zonal ADGs of DG (Audit) to review TBA on a half yearly basis. v. activities done in terms of different timelines for ThBA; vi. details of MCM held during the quarter, and vii. half yearly reports from the Zonal Chief Commissioners on their review of 5% of audit reports on a random basis. 4. In the Customs PCA Manual, 2018, any aspect which is inconsistent with the above instructions shall be brought to notice for suitable modification of the manual. In case of a conflict the provisions of this Instruction will prevail. 5. The difficulties, if any, faced in implementation of these instructions may be brought to the notice of the Board. Encl.: Annexure-1, 2, 3 and 4. (Sharad Srivastava) Director (Anti Smuggling) 5[ ] **************** NOTES:- 1. Substituted vide Instruction No. 27/2023- Customs dated 06-09-2023 before it was read as, "3.2.1. The scope and Coverage: As per the Audit Manual, AEO T1, T2 and T3 categories are to be audited once in every two/three/five years. Therefore, the audit planning is required to be done in such a way....
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....ners/ Chief Commissioners in charge of Customs (Audit) Commissionerates. The committee shall meet in January and July to select the themes for ThBA for the first and second halves respectively for each financial year-" 5. Substituted vide Instruction No. 27/2023- Customs dated 06-09-2023 before it was read as, "Annexure-1 PAC-1 Transaction Based Audit (TBA) Commissionerate : Month : Date of Last MCM : (Amount Rs. in Lacs) Category Total no. of BEs/SBs given OOC/ LEO during the month Opening Balance of pending TBA No. of BEs/SBs selected for TBA % BEs /SBs Selected during the month No. of B/Es or S/B audited Closing Balance of pending TBA (Col. No. 3+4-7) During the Month Upto the Month During the Month Upto the Month 1 2 3 4 5 6 7 8 9 IMPORT EXPORT Total (Amount Rs. in Lacs) Period-Wise Break-UP No. of Consultative Letters issued No. of Detections Made During ....
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....bsp; AEO T3 AEO T2 AEO T1 Export Total Grand Total (Amount Rs. in Lacs) Detections Made During the month Detections Made Upto the month Amount of Spot Recovery Made Total Recoveries Made During the month (including Spot Recovery) Total Recoveries Made Upto the month (including Spot Recovery) No. Duty Amount No. Duty Amount No. Amount No. Duty Amount No. Duty Amount 9 10 11 12 13 14 15 16 17 18  ....
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....ount Rs. in Lacs) Closing Balance of pending ThBA (Col. No 5+6-8) Detections Made During the month Detections Made Upto the month Recoveries Made During the month Recoveries Made Upto the month No. Duty Amount No. Duty Amount No. Duty Amount No. Duty Amount 10 11 12 13 14 15 16 17 18 Note : 1. Captured all the information given in the formats in ....
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.... NOTE : 1. Captured all the information given in the formats in Audit Manual and as suggested by Commissioner (RI & I) 2. Opening Balance should reflect total number of pending PCA as on 1st April 2020 3. During the month Figures should reflect figures for the reporting month only but in the first report for the current Financial Year During the month figures should be from 1 April, 2020 to the reporting month 4. Upto the month figures should reflect cumulative figures for the reporting Financial Year" 6. Substituted vide Instruction No. 27/2023- Customs dated 06-09-2023 before it was read as, "a) committee headed by DG Audit, consisting of chief commissioners in charge of Audit Commissionerates meets in January and July every year to decide the themes for ThBA, b) committee headed by the DG Audit, consisting of Commissioners of Customs (Audit), representatives from DRI HQ and ADG in charge of Customs in DG ARM; meets in February every year to finalize th....
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....he month figures should be from 1st April to the reporting month. Upto the month figures should reflect cumulative figures for the reporting Financial Year. In Column no. 3, number of premises should be reflected which are selected by NCTC, Mumbai and subsequent allocated by the DG Audit to Customs Audit Commissionerates. Commissionerate: Quarter ending: Date of Last MCM: T CUS PCA-3: Theme Based Audit (ThBA) Annexure III Total No. of Bills of Total No. of Shipping Total Opening Theme No. Name of Theme Opening Opening Balance of Balance of Selected Bills of Entry Shipping Bills Entry Bills Balance(BES + Shipping Bills) (4)+(5) Selected Audited Selected Audited Closing Balance of Bills of Entry (4)+(7)- (8) Closing Balance of Shipping Bills (5)+(9)-(10) Total Closing Balance[BES+ SBs] Detections made during the quarter Detections made upto the quarter Recoveries made during the quarter (11)+(12) No. Duty Amount No. Duty Amount No. Duty Paid Interest Penalty Paid 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20A 20B Total (19)+(20A) +(208) 20C Duty No. Interest Paid Penalty Paid Total (22)+(22A) + (228) 21 21 22 22A 22B 22C Opening Balance should reflect total number of pending ThBA ....