India's Customs Updates: Key Initiatives and International Collaborations

Introduction

On October 28, 2021, the Government of India's Ministry of Finance's Central Board of Indirect Taxes and Customs (CBIC) communicated various key updates and initiatives in a circular addressed to all officers and staff. This document outlines significant international collaborations, customs operations, and internal organizational developments.

International Customs Forum 2021

From October 21-22, I participated in the International Customs Forum 2021 (ICF 2021) held in Moscow. This event celebrated the 30th anniversary of the Federal Customs Service of Russia and featured discussions among global customs administrations on best practices and future strategies. During the forum, India highlighted its 25-year journey towards enhancing customs operations through technology, specifically showcasing advancements such as Faceless Customs and the Compliance Information Portal.

Bilateral Meetings

In conjunction with the forum, the Indian delegation engaged in bilateral discussions with several countries:

Russia: The Deputy Head of the Federal Customs Service, Ms. Elena Yagodkina, met our team. They reviewed ongoing cooperation in customs officer training, Green Corridor facilitation, and joint enforcement initiatives. Both parties explored the potential of the Authorized Economic Operator-Mutual Recognition Arrangement (AEO-MRA) and customs data exchange to enhance the Green Corridor scheme, agreeing to form a working group to address these topics.
Tajikistan: Led by Mr. Khurshed Karimzoda, discussions centered around the progress of the 2018 customs cooperation agreement and the mutual interest in pre-arrival customs data exchanges.
Uzbekistan: Mr. Ilhom Mukhtarov, Acting First Deputy Head of the State Customs Committee, discussed pre-arrival data exchange, customs automation, and establishment of a single window.
Korea: A meeting with Mr. Jaellyeon Lim from the Korea Customs Service focused on the development of an electronic origin data exchange system and the feasibility of pre-arrival customs data exchanges.

Capacity Building Initiatives

As part of the Memorandum of Understanding signed in 2019 between CBIC and the Maldives Customs Service, a group of 10 Maldivian officers completed a five-day training program on Chemical Analysis and Narcotics Drugs & Psychotropic Substances (NDPS) testing from October 18-22, 2021, at the WCO Regional Customs Laboratory in New Delhi. This initiative is crucial for strengthening our collaborative ties with the Maldives.

Enhancing Trade Facilitation

The Trichy Customs Preventive Zone recently inaugurated a new facilitation centre at Maraimalai Nagar on October 22, 2021. This centre will support manufacturers and exporters, particularly MSMEs in the Thiruvalluar, Kanchipuram, and Chengalpet districts, by reducing travel distances by approximately 150 km to Cuddalore for customs compliance, thereby lowering transaction costs and time for stakeholders.

Recognition of Excellence

The Navi Mumbai Municipal Corporation recently conducted a cleanliness survey among all Central and State Government offices, where the CGST Raigad Commissionerate received the second prize for its cleanliness efforts, highlighting the commendable work of our officers.

Vigilance Awareness Week 2021

The Central Board of Indirect Taxes and Customs is observing Vigilance Awareness Week 2021 from October 26 to November 01, 2021, under the theme "Independent India@75: Self Reliance with Integrity." All zones and directorates are encouraged to review pending vigilance cases and adhere to deadlines established by the Directorate General of Vigilance.

Anti-Smuggling and Anti-Evasion Updates

Anti-Smuggling: The Special Intelligence and Investigation Branch (SIIB), Nhava Sheva, seized 39 metric tons of walnuts disguised as dry dates, highlighting smuggling concerns. The duty implications involve walnuts attracting a Basic Customs Duty (BCD) of 100% and IGST of 5%, compared to dry dates which are subjected to a BCD of 20% and IGST of 12%.
Anti-Evasion: The Navi Mumbai Commissionerate identified a case involving ₹12.9 crore related to GST non-payment for services in erection, commissioning, repair, and maintenance, resulting in a recovery of ₹8.43 crores. Additionally, the Audit-II Commissionerate in the CGST & Central Excise Mumbai Zone uncovered a new method of tax evasion involving ₹4.22 crore in service tax and Cenvat Credit dues linked to overseas telecommunication services for vessels operating in international waters, subject to the Reverse Charge Mechanism.