On-site Post Clearance Audit (OSPCA) for faster clearance of Customs by importers & exporters.

Document Text

On-site Post Clearance Audit (OSPCA) for faster clearance of Customs by importers & exporters This has reference to your letter dated 23rd August, 2011 wherein certain apprehensions has been raised by the Association that the proposed implementation of On-site Post Clearance Audit (OSPCA) by the Customs will cause hardship and inconvenience to the exporting community. 2. At the outset, I would like to inform you categorically that for the present the scheme will not be applied to exporters OSPCA will be implemented in a phased manner beginning only with importers who avail the Accredited Clients Programme (ACP). Other categories of importers would be covered in subsequent phases but even then, taking into account administrative costs of conducting OSPCA and the nature and size of the business it is no intended to cover all importers and the present Customs House Audit shall continue side by side with OSPCA. I may add that OSPCA would require an effective Risk Management System (RMS) as an essential prerequisite, which is so far not even introduced on the export side. 3. In this connection, you would appreciate that OSPCA is a globally preferred mechanism to provide greater Customs facilitation in terms of faster clearances to the trading community while at the same time ensuring compliance of the legal provisions. This also allows the development of simplified Customs procedures for such traders. Another advantage offered by OSPCA is a single point audit combining Customs, Central Excise and Service Tax. It is in this background that in like manner of other Customs administrations, the Indian Customs has proposed to implement OSPCA. This is one vision of Customs which would take some more time and background preparation for implementation on the export side. The Chambers of Trade & Industry would be definitely consulted before its implementation on export side. 4. I expect this would set at rest your concerns that OSPCA will cause any inconvenience or hardship to the exporting community. M.F. (D.R.) Letter D.O. F. No. 13/311/2011-Ch (E&C), dated 01-09-2011

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