FEBRUARY 26, 2016

By P Rosi Reddy, IRS (Rtd) Advocate

INDIAN Customs Department does not enjoy good reputation because of the misdeeds of some middle men and CHAs (now called brokers) who are hand in glove with some corrupt customs officials. Some of the Customs Brokers charge hefty Sums for the clearance of cargo containers from the importer in the name of Customs Officers for assessment, examination etc.This is continuing even after introduction of RMS where the goods are self assessed and the Bill of Entry will not go to a Group for assessment. There is no way the importer knows that his Bill of Entry has gone to appraising section or cleared under RMS. Had he known that his Bill was cleared under RMS, he would pay less to Customs agent and reduce transaction cost. Hence it is suggested that a column/ field in Bill of Entry be inserted to reflect status of clearance ie. RMS/Assessed. By this mechanism half the corruption in the name of Customs officers shall be curbed.

(2) It is further suggested that CBEC should fix Service Charge to Customs licensed brokers for the clearance of containers in a broader way. This will eliminate all the ills in the present system and make the system more transparent. The railways fix the menu charges supplied in Railways by the catering contractor. Income tax also fixed remuneration for tax preparers. CBEC has fixed legal charges for Advocates and auditors.Even RBI fixed audit rates to auditors auditing Banks. This is high time to fix rates for clearance of cargo by the CBEC to reduce transaction costs and to improve the image of the Department.