CBIC asks customs officers to complete inquiry in commercial fraud cases within a year

The CBIC has asked customs field formations to disclose the specific nature of inquiry being undertaken while issuing letters/summons in export/import fraud cases and also complete investigations within a year. In an instruction, the Central Board of Indirect Taxes and Customs (CBIC) said officers must maintain a "balanced" approach during an investigation into tax evasion in import or export of goods -- generally referred to as commercial intelligence/fraud (CI) cases -- to avoid disruption in ease of doing business.

The CBIC said before initiating an investigation, it is desirable that an analysis of all information, and cross-checking available data be undertaken to minimise interface with the importer/exporter.

Within the jurisdiction of the commissionerate, the commissioner is responsible for developing and approving any intelligence, investigation, and its completion.


"A CI case investigation must reach the earliest conclusions which is normally not more than a year," the CBIC said in the instruction issued on November 1.

CBIC Chairman Sanjay Kumar Agarwal said the guidelines underline the approach of minimal disruption during investigations of CI fraud cases.

"These measures are designed to maintain transparency, reduce unnecessary delays and create a more business-friendly environment..," Agarwal said in a letter to CBIC officers.

After the initial decision to conduct an investigation, customs officers may seek documents from the exporter/importer, preferably by writing a letter.

In seeking information/documents in CI matters, the letter/summons should disclose the specific nature of the inquiry being initiated, it said, adding that vague (or general) expressions must be avoided.

"Whereever permissible, the officer indicates to the person summoned, the option to attend by an authorised agent," it added.

The CBIC also said the customs commissioner may consider meeting, by appointment, the importer/exporter or his representative wherever a "reasonable grievance" persists in an ongoing inquiry.