HOW TO GET PREPARED FOR CBLR'18 ORAL EXAMINATION ??

Dear friends,

Best wishes to candidates appearing for CBLR’18 Oral Exam to be conducted on 24^th and 25^th of November 2020.

You have cleared one of the toughest online exam and now become eligible to appear for oral test. During online exam, no one was there to monitor you and you were able to select answers quietly within given time line. But oral test will be totally different and you need to equip yourself accordingly.

Duration of the oral test will be about 15 to 20 minutes and on an average approx. 10 to 15 questions including supplementary questions will be asked by the panelists.

As you may know, all the panelists are top most officials of Customs and you need to prepare such way to prove yourself. In oral tests, panelists will throw questions, any of their choice from Customs Law and procedures & allied Acts. If you are presently working in a Customs Broker firm then you may expect few questions from your area of work profile and related to commodities your CB firm is dealing with.

Sometimes panelists will say some commodity name & will ask you to find out HSN code from the Customs Tariff Book kept in front of you. Hence be familiar to find out HSN especially with important chapters like machinery, automobile, plastics and chemicals etc. You need to be 100% strong with Customs Broker obligations including KYC requirements and be thorough enough of CBLR18 which is holy book for a Customs Broker. Do not forget to be updated with latest faceless assessment and CAROTAR’20 procedures. At present this is the key to check whether a candidate is up to date in practical or only bookish.

The candidates are expected to give content rich and meaningful answers hence do not limit yourself to give only one word answer hence give little elaborate answer when required. At the same time, If you do not know the answer to a particular question, do not give wrong answer and do not try to explain too much like an argument, to establish your side. Instead of that you can politely ask for another question. No one is 100% perfect and not expected to know everything in Customs Law and procedures. If you are not able to answer one or two questions, do not get panic.

Oral tests are unstructured but answers should be structured and to the point. If you are very familiar about a particular question prove yourself to establish but do not give too lengthy answers.

Right from knocking the door to leaving the interview hall, behave humbly and maintain good eye contact to the panelist to whom who are answering. When supplementary question is asked by another panelist in the same topic then turn your face and answer to the respective panelists i.e Do not fix your face position to only one panelist. Turn your face and answer to respective panelists.

Due to Covid 19 spread, wear face mask without fail and do not try to shake hand of the panelists. Normally sufficient distance will be kept with broader table to avoid physical contacts but now due to Covid 19 pandemic social distance become mandatory and don’t  try to move nearby panelists.

Do not give any personal appeals and do not try to convince panelists for selection which will not be entertained and such behavior will cause harm. Finally, CB license is given to entrepreneurs hence right from your dressing to answering the questions, everything must be like a budding businessmen.

Again all the best for your success !!!

With regards

Rajesh A

www.eximblogs.com

Date: 22.11.2020

WRONG EXCESS CLAIM OF DUTY DRAWBACK – PLEA OF INADVERTANCE WILL NOT HELP TO ESCAPE FROM PENALTY

A Shipper has claimed Drawback of 7.2% instead of 1% by applying wrong HS code and duty drawback code during year 2011. During 2012 through an Order-in-Original Customs authorities were confiscated the goods under Section 113 of the Customs Act, 1962 on the ground of miscalculation on the entry number on the Drawback Schedule, with an option to redeem the same on payment of a redemption fine of ₹ 75,000/- under Section 125 of the Customs Act. A penalty of ₹ 80,000/- was also imposed under Section 114(iii) of the Customs Act. i.e Confiscation order issued post shipment and goods not physically available

On appeal, the Commissioner of Customs and Central Excise (Appeals), placed reliance on a judgment of the Hon'ble Supreme Court in the case of Commissioner of Customs Vs. Finesse Corporation Inc., reported in 2010 (255) E.L.T. A120 (SC)  held that since the consignment has already been exported and not available for confiscation or redemption, the confiscation order and optional redemption is unsustainable and accordingly, the confiscation and the option of redemption, were set aside. However, the Appellate Authority had found that the petitioner had mis-declared the drawback in serial number with an intention to claim ineligible drawback amount and therefore, confirmed the penalty imposed under Section 114(iii) of the Customs Act.

The Shipper has challenged penalty by way of writ petition before Madras High Court. Let us see Hon’ble Madras High Court important observations ;

When the exporter had admitted of having wrongly quoted the DBK code for the goods and thereafter rectified it itself would amount to misclassification and thereby attempted to export the goods improperly. A mere plea of 'inadvertence' may not absolve the petitioner and grant them immunity from penalty. The discretion of levying penalty is always available with the Statutory Authority under Section 114, whenever such an Authority is of the view that an attempt to export the goods are in such a nature that the goods would be liable to be confiscated under Section 113. Since the Original Authority was of the opinion that the petitioner attempted to export the goods through misclassification, this Court is of the view that the Authority was justified in levying the penalty

The confiscation order, with an option to redeem on payment of redemption fine, was set aside by the Appellate Authority only on the ground that the goods, since already exported, were not available for confiscation and therefore, the confiscation order is bad in law. It was not the finding of the Appellate Authority that the petitioner had not attempted to export the goods improperly. Hence, a mere setting aside of the confiscation order and the option of redemption, will not entitle the exporter to escape his liability from penalty.

M/S. R.S. GRAPHICS VERSUS THE REVISIONARY AUTHORITY AND JOINT SECRETARY TO THE GOVT. OF INDIA, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, MADRAS HIGH COURT, decided on 29.10.2020

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 #Customs Law Quick Bites-45

Amendment of Shipping Bill u/s 149 – Time limit of 3 months under circular No.36/2010 is no more valid !!!

As you aware Shipping Bill conversion from one scheme to another can be made within 3 months from the date of Let Export order. But in relevant Customs Act section 149, the time limit is not specifically mentioned and it says “in such form and manner, within such time, subject to such restrictions and conditions, as may be prescribed”.

Let us see relevant parts of Customs Act and circular ;

SECTION 149. Amendment of documents. - Save as otherwise provided in sections 30 and 41, the proper officer may, in his discretion, authorise any document, after it has been presented in the custom house to be amended 1[in such form and manner, within such time, subject to such restrictions and conditions, as may be prescribed]:

Provided that no amendment of a bill of entry or a shipping bill or bill of export shall be so authorised to be amended after the imported goods have been cleared for home consumption or deposited in a warehouse, or the export goods have been exported, except on the basis of documentary evidence which was in existence at the time the goods were cleared, deposited or exported, as the case may be.

Circular No. 36/2010-Customs Dt. 23rd September, 2010 clause 3 (a) The request for conversion is made by the exporter within three months from the date of the Let Export Order (LEO).

But Kerala High Court took a different view which may be useful to many exporters who seeks Shipping bill conversion from one scheme to another after lapse of three months.

Let us see relevant part of the order ;

For the purpose of issuance of No Objection, provisions of Section 149 of the Customs Act, 1962 envisage the complete procedure for issuance of no objection certificate, ie for the purpose of amendment of a bill of entry or a shipping bill only after fulfilling certain conditions in the proviso.

It is trite ( meaning : lacking originality) law that circulars cannot assume the role of the Principal Act lest (meaning : with the intention of preventing)  the provisions only a binding force. If at all the revenue is facing difficulties in accepting and processing applications for amendment of Shipping Bills, an amendment to the Principal Act can be suggested in accordance with law and till the pendency of the same, an Ordinance can also be issued.

The action of the Customs Dept refusing amendments after lapse of three months  cannot be accepted, for, it is an utter violation of statutory provision of Section 149 of the Customs Act.

PARAYIL FOOD PRODUCTS PVT. LTD. VERSUS UNION OF INDIA, CENTRAL BOARD OF EXCISE AND CUSTOMS, COMMISSIONER OF CUSTOMS, JOINT DIRECTOR GENERAL OF FOREIGN TRADE, DEPUTY COMMISSIONER OF CUSTOMS (EXPORTS), KERALA HIGH COURT,decided on 19.10.2020

Author Remarks : Till amendment of section 149 or issuance of an Ordinance with specified time limit for amendments & unless otherwise Customs goes for appeal against this high court order, Shippers can refer this judgement for Shipping bill scheme conversions, if Customs department refuse to amend / issue NOC by citing three months limitation as per circular No.36/2010

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#Customs Law Quick Bites-44