Finance ministry in a statement Tuesday said the procedures will provide relief to custodians of such ICDs and CFSs since there was no deadline for closure till now.
ICDs and CFS play a vital role in the exim trade as they store and clear import and export goods. These facilities are notified under the Customs Act, 1962 and are administered by the Customs authorities.
However, at times a custodian may like to close or de-notify a facility. Disposal of un-cleared, seized and confiscated goods via import or export are pre-requisites for the de-notification, and the Board noted that this was taking a long time, causing difficulties for the custodians.
The Board issued a circular on August 16 providing the procedure and timelines, stating that any custodian intending to wind up operation has to submit an application to jurisdictional principal commissioner or commissioner of customs for de-notifying the ICD or CFS. A nodal officer at the level of deputy or assistant commissioner of customs would then facilitate the de-notification by coordinating the disposal of the goods lying at the facility in a time bound manner.
“The new procedure would ensure undue cost and time over runs are avoided. Importantly, the de-notification shall be completed within a maximum of four months from the date of receipt of complete application. This is yet another trade facilitation initiative by CBIC,” the Board said.
The Board issued the procedure after it found that not only were custodians getting impacted, customs field formations faced challenges while ensuring timely payment of cost recovery charges and disposal of un-cleared, seized and confiscated goods.
Source : Economic Times
