Jurisdiction and Procedure Audit

1.Consequent to Notification No. 85/2017-Custmos(NT) dated 07.09.2017 and Notification No. 23/2018-Customs(N.T) dated 23.03.2018 the Audit Commissionerate has come into existence from 01.04.2018 in Delhi Customs Zone.

The jurisdiction of Custom Audit Commissionerate will cover all the formations of Delhi Customs Zone.-

The mandate of the Audit Commissionerate is as below

  • Post Clearance Audit-Transactional Based Audit (TBA):- Monitoring, maintenance and enhancement of compliance levels, while reducing the dwell time of cargo. The Risk Management System (RMS) will select the bills of entry for audit, after clearance of the goods, and these selected bills of entry will be directed to the audit officers for scrutiny by the EDI system. In case any possible short levies are noticed, the officers will issue a Consultative Letter setting out the grounds for their view to the Importers/Customs Brokers. This is intended to give the importers an opportunity to voluntarily comply and pay the duty difference if they agree with the department's point of view. In case there is no agreement, the formal processes of demand notices, adjudication etc. would follow.
  • Theme Based Audit (ThBA): - Thematic Audit provides for review of data relating to the entire business activity for a particular commodity, industry or issue. It provides a systematic approach to data collection and an analysis of data to determine the likelihood of non-compliance. The results of the audit are useful for peer review of importers/exporters across a specific industry. Further, Audit would be able to provide a valuable feedback on the levels of compliance to the Risk Management System, thereby enhancing facilitation to the most compliant sector of business/trade.
  • Premises Based Audit (PBA): - Under this Audit process, the legal compliance and correct assessment of Customs duties will be verified by the Customs at the premises of importers, exporters and other related entities felt necessary in the completion of this process. In PBA, Customs would review the imports and exports over a given period and checks all relevant commercial records, including financial statements and contracts to verify the particulars given in a goods declaration. PBA would enable the department to bridge the communication divide and usher in a new era of partnership with trade.
  • 2. Jurisdiction- a) For the Post Clearance Audit-Transaction Audit, three circles have been created and jurisdiction is as below :-

    • • Circle-1 :- Air Cargo Import & Export
    • • Circle-2 :- ICD PPG for Imports and Exports
    • • Cirlce-3:- ICD TKD for Imports and Exports

    b) Two circles for Theme Based Audit (ThBA-1 & ThBA-2). Also three circles for Premises Based Audit (PBA-1, PBA-2 and PBA-3) have also been created, having ‘All India’ jurisdiction, as defined in Notification 85/2017 dated 07.08.2017