F.No. S/12-Gen-40/ AM(X) Part-III Date: MINUTES OF PERMANENT TRADE FACILITATION COMMITTEE MEETING (EXPORT) HELD ON

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1 OFFICE OF THE COMMISSIONER OF CUSTOMS (NS-IV) JAWAHARLAL NEHRU CUSTOM HOUSE, NHAVA SHEVA TAL: URAN, DIST: RAIGAD, MAHARASHTRA Tel: , F.No. S/12-Gen-40/ AM(X) Part-III Date: MINUTES OF PERMANENT TRADE FACILITATION COMMITTEE MEETING (EXPORT) HELD ON The monthly meeting of Permanent Trade Facilitation Committee (PTFC, Export) was held on at AM in the Conference Hall at 7 th Floor of the Jawaharlal Nehru Custom House. The meeting was chaired by Shri John Joseph, Chief Commissioner of Customs, Zone-II, Shri Shrawan Kumar, Commissioner of Customs, NS-III,, Shri M.R. Mohanty, Commissioner of Customs, NS-II, Shri Subhash Agrawal, Commissioner of Customs, NS-G &NS-IV and Shri Vijay Singh Chauhan, Commissioner of Customs, NS-V. 2. The following members of trade attended the meeting: - Sr. No. Names (Smt./Shri/Ms.) Organization/Association/Designation 1 V. K. Agarwal ONIDA 2 Neelesh Datir AILBIEA 3 Vinayak Apsat BCHAA 4 Paresh Thakkar BCHAA 5 Venkat Narayanan CFSAI 6 James Joseph CFSAI 7 S. Srinivas CFSAI 8 Manish Kumar MANSA 9 Subash Rajkumar MANSA 10 Chetna M Badheka AIWCBA 11 Roshan Irani AIWCBA 12 Laksha Tadadikar CFSAI 13 Umesh Grover CFSAI 14 Ganpat Korede BCHAA 15 Nimish Desai WISA 16 Paresh Shah WISA 17 R. Rajasekhar CROP CARE 18 Shankar Shinde RCCI 19 Hiren Ruparel BCHAA 20 Dushyant Mulani BCHAA 21 Karunakar Shetty BCHAA 22 Omparkash Agrawal MSWA 23 Mohan Nilani AIIEA 24 Mark Fernandez Sylvester & Co.

2 3. The following officers of the Department attended the meeting:- Sr. No. Names (Smt./Shri/Ms.) Designation 1 Sungita Sharma Pr. Addl. Director General, Directorate General of Vigilance, Mumbai 2 Ashir Tyagi Addl. Commissioner of Customs, JNCH 3 Vijay Rishi Addl. Commissioner of Customs, JNCH 4 DhirendraLal Addl. Commissioner of Customs, JNCH 5 Rahul Nangare Addl. Commissioner of Customs, JNCH 6 Nikhil Meshram Addl. Commissioner of Customs, JNCH 7 Akhilesh Pandey Addl. Commissioner of Customs, JNCH 8 Jagdish Sharan Addl. Commissioner of Customs, JNCH 9 Chinta Isaac Jt. Commissioner of Customs, Directorate General of Vigilance, Mumbai 10 Dinbandhu Diwakar Dy. Commissioner of Customs, JNCH 11 D.S. Rana Dy. Commissioner of Customs, JNCH 12 C.P. Singh Dy. Commissioner of Customs, JNCH At the outset, the Chairperson welcomed all the members and started deliberations on installation of Container Scanning System at JNCH. The Pr. ADG/Vigilance, Smt. Sungita Sharma elaborated the strategies for installation of Container Scanning System at JNCH. Detailed discussion was made on following points- appropriate location for installation of the Container Scanning System measures to be taken to minimize interference, how to improve System related issues with help of Risk Management Division ways to maximize utilization of the Scanning System Strengthening of Container Scanning Division Integration of scanned images to ICES 1.5 module etc. Trade was further requested to provide feedback/suggestion/study reports on this issue. Thereafter, Chairperson directed to initiate the discussions on the agenda of the meeting. The agenda relating to Import Commissionerates were discussed first, and then following agenda of the Export/General Commissionarates were deliberated upon. 4. The discussion & decision in respect of Agenda of NS-G, NS-II&NS-IV Commissionarates are as under. OLD POINTS Point No.1: Centralization of KYC KYC is an important requirement to be fulfilled by all stakeholders. However, at present, it is observed that to fulfill the said compliances, each agency is asking for the same multiple times such as shipping lines / NVOCCs / Forwarders etc. Request: -In order to bring uniformity and transparency for compliance of KYC norms trade suggested that KYC Compliance to be carried out in a uniform manner as being done by SEBI on a central system. Discussion:It is clearly mentioned in the Public Notice No. 99/2016 that where transactions between Shipping lines / Containers lines /their agents/ sub agents and the exporters are of a recurring nature and documents collected from exporter / the production of such KYC documents will not be required for similar transactions by the

3 said person/exporters for the succeeding six months. Trade requested to put the KYC compliance on the website so that any agency can view the same. Status : Trade was informed that the issue of Centralized KYC is under examinationby SIIB(I), JNCH, NS-III. [Attn: DC/SIIB(Import)] Point 2: Permission for goods registration and partial delivery. Request :After obtaining OOC at RMS facilitation Centre, in case of part delivery still do importer required to take permission from Customs? If yes, from whom? Background :M/s Mirc Electronics Ltd has represented that as per PN 160/2016 dated importer can obtain out of charge at RMS Facilitation Centre for RMS facilitated Bills of Entry and approach for delivery at CFS where Preventive Officer of the CFS will check container No. and Seal No. at the time of passing the containers from the CFS. On 21 st Dec 2016, on obtaining OOC at RMS facilitation Center for BE No dated which was containing 5 X40, when they approached CFS for delivery, it was informed that so far only 3 containers arrived and balance 2 containers are under movement. CFS informed the Importer to obtain permission from Docks AC for part delivery. AC Docks informed that since OOC is given by RMS Facilitation Centre, take permission from AC, Facilitation Centre only. Discussion: DC/RMS Facilitation Centre informed that OOC is given at RMS Facilitation Centre, but RMS Facilitation center does not have any access or physical control over the CFS. Hence, the permission for part delivery of cargo has to be permitted by DC/Docks, in charge of the concerned CFS. Trade was informed that Public Notice has already been issued addressing their concern. Status :Public Notice No. 184/2016 dated issued. Point 3 : Clarification sought regarding Editorial changes in the Harmonized System of Nomenclature (HSN) for certain chapters including chapter 40 to be effective from Request : M/s Balkrishna Industries Ltd has observed that there are no notification/guidelines from Nhava Sheva Customs on subject issue. They sought clarification on following points- 1. In the case where Imports are under- utilization, against the Advance Authorization and the exports are expected to start in January 2017, then how do we complete the EO with current HS code when the merger will happen in January 2017? 2. As regards to fresh Advance Authorizations should we import against the Current HS Code, when the EO discharge will happen after January 2017? 3. Since we have not imported against few Advance Authorizations, should we get it amended with New HS Code from DGFT or surrender and issue fresh AAS? Discussion : Trade was informed that Public Notice has already been issued addressing the subject matter. Status : PN 183/2016 dated issued. Point 4: Issue of endorsement on ARE-1 by Customs for submission to Central Excise.(Sponsored by M/s WISA) Request :As per Board circular 55/2016 & PN 152/2016 of JNCH, Printing of Ex Control copy of S/Bills and EP copy of S/Bill are done away. However, Ex Control copy

4 is still getting generated and at many locations it is not signed. Also ARE 1 which needs to be submitted as proof of exports to Central Excise office also needs to be signed and endorsed for shipment is not been done now. Suggestions: (i) Requirement of endorsement by Customs may please be done away and necessary PN be issued for the benefit of Trade and C. Excise authorities. Discussion:It was informed that Docks officers are not signing ARE-1 copy. Till date there is no any instruction not to sign the ARE-1. Also, one of the requirement of signed copies of ARE-1 is to tender it before Central Excise Authority for different reasons. Before taking any decision to do away the requirement of signature of Customs on ARE- 1, issue required to be examined under consultation with Central Excise Authority. Status : Trade members were informed that the matter has already been referred to Board for guidelines on ARE-1.In the meantime, vide Office Order No. 01/2017 dated officers have been posted in CFS M/s Punjab Conwareto undertake work of ARE-1 endorsement till further orders. It was decided to issue suitable Public Notice addressing the issues. [Attn : DC/AM(X)] Point 5: On-line registration of Annexure C for Export Request: As per practice, all Annexure C for registration of goods for exports are done manually, which is resulting in to delay in terms of dwell time. M/s WISA has requested that online registration of Annexure C for goods registration of export may be considered and implemented. Discussion:Annexure C is a format required to be filled up by Examining Officers when export goods are brought for examination. It is a declaration which is required to be signed by the CHA/Exporter and further countersigned by Examining Officer with a certificate that verified goods arrived. Verified the number of packages and marks and number thereon and found to be as declared. Also CFS endorses information like weight, package etc. on this document. It acts as a summary sheet with help of which Shed Officer counterchecks online data fed against the Shipping Bill and corrects, if required. At present there is practice of manual filing of Annexure C. However, it was informed that there is a provision in EDI system for registration of Annexure C online. Trade requested to take up the matter with DG System to make the module for online registration of Annexure C functional. Status:- DC/EDI informed that the matter is being communicated to DG Systems to make the module online registration of Annexure C functional. Point 6 : Facility of touch screen at all parking plaza. (M/s WISA) Issue : Trade is facing difficulty as there is no facility to check the status of the Shipping Bill submitted to customs for LEO. Request: M/s WISA has requested to install touch screen facility for the trade to check the status of Shipping Bills at all the parking plaza. Discussion: Trade was informed that prompt action would be taken up to set up touch screen facility at Parking Plaza. Status:- DC/EDI informed that the custodian is supposed to provide all the infrastructure for facilitating trade. Only the IP address for touch screen will be provided by this office and the touch screens have to be provided by the custodian

5 itself. It was decided to take up the issues with Port Terminals in forthcoming CCFC meeting Point 7: Permission for export of Central Excise Stuffed container through CFS mode in place of Buffer yard. (M/s WISA) Issue: Since the facility of Parking Plaza of all terminals for export is started, all the facility of Buffer yard storage, examination / LEO and direct movement of export containers into the terminal from Buffer yard is withdrawn. Many exporters for various reasons example- having multiple container shipments handled at parking plaza has to keep the container vehicle waiting till all the container trailer entered into. Request: To permit entry and storage of export container at CFS in lieu of buffer yard and once the entire lot of containers under S/Bill arrived, exporter can get LEO done at CFS as Central Excise stuffed /Sealed containers. Movement of such Containers is allowed directly from CFS in to the Port Terminals following procedure for movement as CFS stuffed container without insisting to be routed through parking plaza for LEO. Discussion Para 6 of the Public Notice No. 174/2016 dated addressing the subject matter speaks that Central Excise stuffed/sealed containers routed through any of the CFS instead of Parking Plaza for export clearance will be treated as Dock Stuffed Cargo. As per prevalent practice Docks Stuffed Cargo are given LEO only after examining the consignment. Trade represented that such Central Excise Stuffed/self-sealed containers routed through any of the CFSs should not be treated as Docks Stuffed Cargo and exemption from examination should be extended to these containers after verifying Central Excise seal/seal number. Trade was informed that suitable Public Notice has already been issued on the subject matter. Status: Public Notice No. 03/2017 has been issued. Point 8 : RMS B/E filed under multiple Advance Licence required to be recalled for correction of Bond value for each Licence. (M/s WISA) Issue : If B/E filed with two or more Advance license and assessed under RMS, system is debiting full Duty value against each license instead of pro-rata basis Bond value. Hence, all RMS B/Es are to be recalled and reassessed with correction in Bond value to be debited pro-rata basis of quantity debited in each license. ( Ref: B/E No dated 23/12/2016 gr 7D ) Request: Recall and re-assessment defeats the purpose of RMS. System fault if any, may please be looked into and rectified. We are also taking it up separately with system directorate for this issue. Discussion: It was informed that in case of more than one Advance Authorization utilized in single Bill of Entry for different quantity/items, licence amount for each item is debited correctly, however, corresponding Bond value is not debited on pro-rata basis. In such cases, for each items, full Bond amount is debited instead of amount equal to licence utilized. Status: DC/EDI informed that the matter is being communicated to DG Systems to look into the matter and do the needful. (Issue closed) Point 9. Suggestion for successful implementation of PN No 160/2016 for timely registration (M/s BCHAA)

6 Request: M/s BCHAA has suggested following point for successful implementation of PN No. 160/2016- a) Need proper guidelines in case where examination is prescribed for Bill of Entry. At present, trade is facing issues where the container has not reached the CFS within 24 Hours. b) Trade should not be made to approach SIIB / Group Addl. Commissioner in such cases c) Infact it would be prudent to exclude the cases where examination has been prescribed to be exempted from the Office Order (Prescribing registration within 24 hours) Discussion: It was informed thatthese points has no relevance with respect to PN 160/2016. CBEC Circular No. 43/2005 dated has made provision for particular treatment for exceptional case and these provisions have been incorporated in Para 6 of PN 160/2016. (Issue Closed) NEW POINTS Point 1 : EP Copy prints upto to be made available (M/s BCHAA) Issue : As per the terms of the Board Circular No. 55/2016 dated , the printout pertaining to EP copy have been discontinued w.e.f. 1/12/16, hence EP copy printouts upto would be required by the exporters. In view of the same we kindly request you to ensure that the EP copy upto are duly printed and provided to the trade before Status : Public Notice No. 04/2017 and 15/2017 have been issued in this regard. Point 2 : Request for waiver of Over Time for Export stuffing after 6.00 p.m. (M/s BCHAA) Issue: We refer to our request made vide letter No BCHAA/VA/898/2016 dated 30 th November, 2016(copy enclosed) to kindly waive the MOT Charges in larger interest of promoting export trade at JN Customs. Status : Issue already referred to Board. (Issue closed) Point 3 : Amendments in Shipping bill transmission Issue : There are considerable cases where the permission for amendment has been obtained, however such amendment details are not transmitted to DGFT due to system error. Request : M/s BCHAA requested to provide a solution in order to ensure that DGFT accepts the Amendment carried out with Customs either through system or manually. This point is very crucial for MEIS related amendments. In larger interest of promoting exports, we seek your urgent intervention. (Copies of complaints received from member attached) Status : As per the instructions laid down in Public Notice No. 94/2015 dated the shipping bills filed for the period from to wherein the exporter has inadvertently marked the reward scheme as N are being retransmitted through ICES 1.5 system to DGFT. Also, the shipping bills filed after September 2015 wherein reward scheme is marked as Y but not reflecting on DGFT

7 are being transmitted from EDI office. It was decided that the matter will be discussed with DGFT authority during upcoming CCFC meeting. Point 4 : For MEIS Authorization RA should be accepted by instead of existing process of sending through speed post only.(m/s BCHAA) Status : DC/Licence Section informed that - Attention is invited to the Para 9.12 and Para 9.13 of P.N. No. 29/2011, dt regarding Implementation of Indian Customs EDI System v 1.5(ICESv1.5) at JNCH on , which is reproduced as under: All licenses registered in location running on ICES 1.5 shall be available for automatic online debits against B/E filed at any of the ports which are operation under ICES 1.5. A Common Ledger of Licenses shall be centrally maintained in the system for debits in respect of Bills of Entry filed at all the ICES location operating under ICES 1.5. Therefore, no TRA shall be required. However, TRA shall be issued for NON EDI locations which are still operating manually or for ICES locations which are running on old ICES Version 1.0. For this the TRA shall be generated in the system and a hard copy of TRA shall be issued which has to be registered in the system at ICES 1.0 locations The TRA is issued by the Non-EDI locations and non-centralized locations will be registered in the same manner as license registration. On registration of TRA, the system will generate a TRA registration No. This Registration No. should be endorsed on the Importers copy of TRA (Original) and the Customs copy received from issuing Customs station. In this regard, it is informed that presently, TRA is generated in the EDI System in triplicate namely (i) Customs Copy for port of Clearance (ii) Customs copy for port of issue(o/c) (iii) Importer s Copy. As per above said P.N., TRA should be registered in the same manner as license registration and registration No. should be endorsed on the TRA (Original). If we receive the TRA on , it will be deviation from present practice of issuing TRA in Triplicate only as copy being the additional copy. Further, chances of re-registering of the same TRA may be occurred due to TRA received on and TRA received Hard Copy as the present EDI system is not filtering the Incoming TRA. Hence, present system for registering the TRA on receipt of original TRA(Hard copy) through Speed Post seems justified. Discussion :Issue was discussed and it was decided that present practice is more practical and safe and thus, it should continue. Point 5 : MEIS Shipping bills- Shipping bill prior to not yet transmitted (M/s BCHAA) Request : Associations can collect data from Exporters whose Shipping bill not yet transmitted and forward it to DG Systems for transmission to DGFT for respective shipping bills. Shipping bill after , not transmitted due to reasons multiple item or not marking tick in reward box. Status : DC EDI informed that the shipping bills dated after and not transmitted due to reasons multiple item or not marking tick in reward box, the exporter are advised to submit list of such shipping bills to EDI Section for retransmission to DGFT. Further, it was decided to take-up the matter with DGFT authority during next CCFC meeting.

8 Point 6 : For successful implementation of exports through Parking Plaza BCHAA has suggested that a) Sufficient deployment of Custom Officers with EDI Terminals b) Direct gate-in of Central Excise sealed container and Refer containers c) Availability of Buffer area for Export containers d) In order to avoid congestion at the Parking Plaza, containers arriving from ICDs where LEO has already been granted at the ICD itself, should be gated in directly into the terminal without being routed through the Parking Plaza. e) In order to facilitate Ease of Doing Business while exporting the containers through Parking Plaza, there should be Centralized cell for giving LEO Discussion : During discussion, trade were well informed that necessary steps have already been taken on their concerns and their suggestion have been incorporated in Public Notices which have already been issued. Status: - (i) For point (a)- 15 Superintendent of Customs(P) and 30 Inspectors (PO) is already deployed with EDI Terminals in all three Parking Plazas. (ii) For points (b), (c), (d) and (e) Public Notice No. 174/2016 dated and Public Notice No. 163/2016 dated has already been issued Point 7: Entry time of containers at Parking plaza should be treated on par with gate cut- off time of port terminals (M/s BCHAA) Status : Public Notice No. 03/2017 issued suggesting Port to issue advisory on above lines. However, it was further decided to take up the issue during next CCFC meeting Point 8: In order to ensure that export trade is properly facilitated, assessment of export shipping bills should be carried out on 24 7 basis. (M/s BCHAA) Discussion : It was informed that presently, aforesaidactivities are not under 24X7 andwith the existing staff strength, it is not possible also. Status : Trade may take up the issues with Board. Point 9: To integrate the momentum of Ease of Business, the steps taken by JN Customs needs to be also reciprocated with availability of Shipping Lines at PUB for acceptance of document after LEO (handover set)(m/s BCHAA) Discussion : The issue was discussed in details and it was directed that Shipping Line must ensure physical presence of their representative in PUB for acceptance of documents after LEO so that dwell time can be minimized. It was decided that matter will also be discussed during upcoming CCFC meeting. Status : Issue to be discussed in CCFC meeting Point 10: Allocation for all Allied Agencies in the Parking Plaza/ Single Location (M/s BCHAA) Request : All Allied Agencies such as ADC, PQ, Shipping Line Surveyors etc should be asked to sit in the Parking Plaza itself so that all the processing of documents can be done at one location. Currently the ADC & PQ offices are located at different locations. Different Shipping Line Surveyors are currently sitting at different locations and we need to go to their respective location to hand over documents after obtaining LEO. If

9 all the surveyors are seated in a single location then it would bring out a lot of ease in doing business. (This is currently the practice in Mundra Port). Discussion :-Trade were informed that JNPT has already allotted space for PGAs. Further, the issue will be taken for discussion in next CCFC meeting Status : Issue to be discussed in CCFC meeting Point 11 : EDI Charges (M/s BCHAA) Request : Currently the EDI Charges of Rs. 56/- are being collected. With the reduction of prints (EP Copy) the Charges for the same should also be reduced. Discussion : The charges at EDI Service Centre, JNCH are being collected as per the Public Notice No. 25/2016 dated M/s BCHAA pointed out that recently Board has issued Circular No. 55/2016-Customs dated and subsequently JNCH issued Public Notice 152/2016 dated wherein printout copies of GAR7 forms, TR-6 Challans, TP Copy, Shipping Bill (Exchange Control Copy and EP copy), Bill of Entry (Exchange Control Copy) have been discontinued. As printout of these copies are no more required, the EDI charges fixed for printouts may be revised/reduced. Status : Issue under examination.(attn : DC/EDI) Point 12 : Infrastructure for CB Cabins (M/s BCHAA) Request : Prior to the new gate in process all CB has cabins allotted in PUB/CFS from where they used to operate and maintain documentation etc. The current facilities are inadequate in the parking areas. M/s BCHAA requested for help in creating Cabins which could be given out on rent to CB for their operations at nominal cost. Status : Matter may be taken up in CCFC meeting. Point 13 : Clarity and uniformity of Port Terminal Charges Request : BCHAA requested that clarity and uniformity is required in the charges (Handling, shifting, storage etc.) being levied by Port Terminal for DPD. Status :Issues to be taken up with Terminals. (Issue closed) Point 14 : Slow working of EDI Systems (M/s BCHAA) Request : BCHAA represented that their members are facing difficulty in processing export consignments due to technical error in EDI system which has resulted in status of Shipping Bill being reflected as Pending for RMS. They have requested that - Request 1) We kindly request you to represent the matter for resolving the system related problem. Request 2)Whenever in such cases where system is down, manual assessment and manual LEO be permitted. Request 3) we kindly request that assessment of SB be carried out till p.m. to facilitate the export trade. Status : DC/EDI informed that 1. The issue has already been forwarded to DG Systems. 2. In case where Assessment or LEO is not possible due to system error, manual assessment and manual LEO is permitted on case to case basis Presently, aforesaidactivities are not under 24X7. With the existing staff strength, it is not possible also, as of now.

10 Point 15 : Endorsement of ARE 1 Form instructions Required for Ground Staff (M/s BCHAA) Request: We request you to kindly issue necessary instruction to ground staff for endorsement of ARE 1 Form. Discussion : Already discussed in point no. 4(old) above. Status : Two Preventive Officers have already been posted for said endorsement vide office Order No. 01/2017 dated (Issue closed) Point 16 : Amenities required at Parking Plaza for operating staff (M/s BCHAA) Request : Parking plaza has become the main center for processing of export cargo and hence basic amenities such as canteen, generator, washroom facility, working area for CB Staff, Service Centre needs to be augmented on topmost priority. Status : Issue should be raised before Terminals & CCFC Meeting. Point 17 : LEO Cell to be created at JNCH Bldg Request : With huge success on import side, we request that for giving LEO, a cell be created at JNCH Building to facilitate export trade. Status : Issue is under examination. (Attn : DC/PG) 5) The members of the meeting were informed that the next PTFC meeting shall be held on at 11.30hrs at Conference Hall, 7 th Floor, JNCH. The Chairpersons requested all the Association Members to forward their agenda points, if any, at least 05 working days in advance on Fax No or by to Appraising Main (Exp) Section on apmainexp@jawaharcustoms.gov.in for taking up the issue in the upcoming PTFC meeting. 6) The meeting ended with thanks to the Chair. 7) This issues with the approval of the Commissioner of Customs NS-G& IV. (Jagdish Sharan) Customs Addl. Commissioner of Appraising Main (Export) To, All the Members of PTFC by Copy to:- 1. The Chief Commissioner of Customs, Mumbai Customs Zone-II, JNCH, Nhava Sheva. 2. The Principal Commissioner of Customs, NS-I, JNCH, Nhava Sheva 3. The Principal Additional Director General, Vigilance, NCH 4. The Chief Commissioner of Customs, Directorate General of Taxpayer Services, CR Building, IP Estate, New Delhi The Pr. Addl. Director General, Directorate General of Tax Payers Services, Mumbai Zonal Unit, Room No. 138/139, New Custom House, Ballard Estate, Mumbai.

11 6. The Commissioner of Customs (NS-G & IV, II, III, V), JNCH, Nhava Sheva. 7. All ADC/JC, DC/AC of Customs (N.S.-Gen, II & IV), JNCH, Nhava Sheva. 8. DC/Appraising Main (Import), JNCH. 9. AC/EDI for uploading on JNCH website. 10. Office Copy.