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| CBEC helps exporters get accredited status |
| TNC Rajagopalan / Aug 23, 2010, 00:39 IST |
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Exporters recognised as ‘Status Holders’ under the Foreign Trade Policy (FTP) i.e. those who have at least Rs 20 crore export and/or deemed export turnover in the previous three years plus the current one, have good news. The Central Board of Excise and Customs (CBEC) has decided to grant them the benefits of assured facilitation under the Accredited Clients Programme (ACP) of the Customs. The criteria of cases of infringements relating to Customs, Central Excise and Service Tax for grant of ACP status have also been redefined, making it easier for more exporters and importers to get the ACP status.
ACP was launched in November 2005. Under the scheme, Accredited Clients were, as a matter of course, allowed Customs clearance on the basis of their declarations, and without examination of goods at all the EDI-enabled Customs stations. Custom houses were to create separately earmarked facility/counters for providing Customs clearance service to the Accredited Clients.
The eligibility criteria for granting ACP status were not too onerous. Imports of at least Rs 10 crore value or excise or customs duty payment of Rs 1 crore was the main requirement. The other conditions included reliable systems of record keeping and internal controls and at least 25 bills of entry in a year with requests for amendments to them at less than 20 per cent. But two conditions ensured that few could get ACP recognition — one, that no show-cause notices proposing penalty should have been issued to the applicant under the customs, excise, service tax or any allied laws; and two, that there should be no duty demands pending on account of non-fulfilment of export obligation. In April 2008, the FTP introduced a provision that for status holders, the Customs will give a decision on conferring of ACP within 30 days from receipt of application. Even so, only 232 entities got recognition as Accredited Clients till now.
Now, CBEC has issued Circular number 29/2010 dated August 20, 2010, extending ACP to all status holders and also removing the unrealistic conditions mentioned above, which barred many importers/exporters from availing of the scheme. Besides, only cases of mis-declaration or mis-statement or collusion or wilful suppression or fraudulent intent, aimed at duty evasion, availing of central value added tax (CENVAT) credit, rebate, refund, drawback, benefits under export promotion/reward schemes or mis-declaration and/or clandestine/unauthorised removal of excisable/import/export goods warranting confiscation of said goods or wherein customs/excise duties and service tax have been collected but not deposited with the exchequer or non-registration with the department with intent to evade payment of duty/tax will be reason enough to deny ACP recognition. For reporting such cases for exclusion of any party from ACP, the powers have been vested with Chief Commissioners of Customs/Excise. In short, frivolous show-cause notices or even mere demands for duty under export promotion schemes will not result in denial of ACP recognition.
Importers and status holders, however, should note that ACP is designed for those who have a corporate commitment to compliance and have in place people, processes and systems that are designed to ensure compliance. They have to make an application in the format given in the ACP brochure available on the CBEC website. If granted, the ACP recognition will be valid for one year and will be renewed only against good compliance record.
Email: tncr@sify.com
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