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CBIC notifies procedure for Inspection of ICDs/CFSs/ AFSs [Read Circular]

CBIC - procedure - Inspection - ICDs - CFSs - AFSs - Taxscan

The Central Board of Indirect Taxes and Customs (CBIC) notified the procedure for inspection of Inland Container Depots (ICDs) or Container Freight Stations (CFSs) or AFSs.

In the Audit Report 16 of 2018 on Working of Inland Container Depots (CDs) and Container Freight Stations (CFSs) various defects were pointed out related to land arca requirement, infrastructure, specific demarcated arcus for imported and export goods and fumigation, adequate space for storing hazardous goods, monitoring of the movement of export and import cargo, handling of uncleared cargo, execution of Bond, Bunk Guarantee and Insurance and theft and pilferage of cargo.

The Board has decided to put in place a proper system for regular inspection for ICDs/CFSs, with the objective to ensure better functioning of ICDS/CFSS in future and would be of great benefit to the importers and exporters using these facilities.

“Periodical inspections and remedial actions would also avoid these kinds of audit objections. It will bring accountability, standardization and better facilities for cross-border trading and in turn improve ease of doing business,” the circular said.

The Board issued various directions.

Firstly, the jurisdictional Commissioner at the beginning of every financial year shall chalk out an action plan to conduct inspection of ICDs/CFSs in their jurisdiction, by an officer of the rank of Deputy/ Assistant Commissioner or above, who is not in-charge of such ICD/CFS, once every financial year probably in the first quarter of the financial year.

Secondly, a report inspection conducted shall be submitted to the jurisdictional Commissioner of Customs with copy to the Chief Commissioner concerned in the on proforma.

Thirdly, the first inspection, wherever required, shall be completed by December 31, 2020.

Fourthly, the jurisdictional Commissioner of Customs upon receipt of the inspection report shall take remedial action wherever deficiencies are noticed including penal action on the defaulting ICDs/CFS

Fifthly, normally the operations and records in respect of the previous financial year shall be covered in the inspection.

Sixthly, for the ICDS/CPSS, which have not been inspected/audited so far, the initial inspection shall be for the period of last five years or from the date of commencement whichever is earlier.

Lastly, the Directorate General of Performance Management during the inspection of field commissionerates, done by them shall also examine the records relating to the inspection of ICDs/CPSS.

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