On-site Post Clearance Audit at the Premises of Importers and Exporters Regulations, 2011

The Budget had portrayed some dire moves of the Union Government for streamlining the taxation regime of the country. Pursuant to this the Central Board of Excise and Customs has notified the ‘On-site Post Clearance Audit at the Premises of Importers and Exporters Regulations, 2011’ on October 4, 2011.

The key points of the regulation are:

• Importers and exporters should make available the relevant documents as and when required by the proper officer.
• The relevant documents should be maintained by the importer/exporter for a period of five years from the date of import or export.
• The importer or exporter is bound to render assistance to the proper officer in the discharge of his official duty and shall in no case refuse or obstruct the proper officer in discharge of official duty.
• To conduct audit the officer should give atleast fifteen days advance notice to the importer or exporter.
• The officer can obtain prior information relating to imported or export goods, before conducting audit and can visit the premises to gather relevant information relating to imported or export goods.
• The audit will be conducted in the premises of the importer or exporter.
• The importer/exporter will be informed of the objections before preparing the draft audit report. He will be provided opportunity to offer clarifications with supporting documents.
• If he is in agreement with the audit findings, in part or in full, he can make payments of duty due and it will be recorded in the audit report.
• If necessary the officer can inspect the goods and take samples.
• Contravention of the regulation can invite a penalty up to 50,000 rupees. 

Introduction of the regulation is expected to result in higher accountability of the importer/exporter on customs assessment and increased transparency in this regard.

Click here to view the regulation.