Lakshmi Kumaran & Sridharan AttorneysAn ISO 9001 / 27001 certified law firm

Indian Customs introduces RMS for exports

26th June, 2013

To enable the Customs department to enhance the level of facilitation and speed up the process of cargo clearance, Risk Management System (RMS) is set to be introduced for exports from India. This procedure, already operational in respect of imports into India, is being implemented in respect of exports, from 15th of July this year in ICD Mulund (Mumbai) and ICD Patparganj (New Delhi) initially. The system will subsequently cover all Customs locations where the Indian Customs EDI System (ICES) is operational.    

Post-clearance audit of selected shipping bills  

As per Circular No. 23/2013-Cus., dated 24-6-2013 issued by the Central Board of Customs & Excise, RMS in exports will enable clearance of low risk consignments, based on self assessment of the exporter’s declarations, reducing the dwell time and transaction cost. Focus will be on quality assessment, examination and post-clearance audit (PCA) of shipping bills selected by the Risk Management System. The present practice of routine verification of self-assessment and examination of shipping bills will be discontinued.  

Under this system electronic output from RMS, after a series of steps, will determine the flow of the shipping bill in the ICES i.e. whether the shipping bill will be taken up for Customs control (verification of self-assessment or examination or both) or to be given “Let Export Order” (LEO) directly after payment of export duty (if any) without any verification. It will also provide instructions for the departmental officers, wherever necessary.  

Implementation in phases  

As per the implementation plan, in the first phase, RMS will process data only up to goods examination stage. The shipping bill data after the Export General Manifest (EGM) is filed electronically, will be processed in the second phase of implementation. This second phase will provide output for selection of shipping Bills for drawback scrutiny and Post Clearance Audit (PCA).  
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