CBIC Issues Revised Guidelines Of NRMC Or LRMC For Effective Implementation Of The Risk Management System In Customs And GST

The CBIC's Circulars dated 28.06.2007 and 24.11.2005 on the Risk Management System and Charter of Functions for the National Customs Targeting Centre (erstwhile Risk Management Division (2005-2017) and Risk Management Centre for Customs (2017-2020)) and the constitution of the National/Local Risk Management Committee Following the establishment of the Directorate General of Analytics and Risk Management (DGARM), the Directorate has been investigating the Customs, Passenger Profiling, and GST risk criteria.As a result, there was an urgent need to revisit the guidelines and mandate of the NRMC.

A National Risk Management Committee for Customs and GST has been formed by the CBIC. The DGARM, Delhi, would be the nodal agency in charge of organising the NRMC meeting to examine the operations of the NCTC-Cargo, NCTC, and GST Business Analytics Wing. These DGARM wings will oversee the deployment and refinement of RMS, APIS, and DGARM applications, as well as give input to improve the efficacy of risk management and other connected elements.

The NRMC will be a standing committee with the Member (Investigation), CBIC, as Chairman and Additional Director General, DGARM Hars, Delhi, as Member Secretary of the NRMC.

The NRMC will meet at least once a year.The NRMC shall review the effectiveness of existing risk parameters employed in various modules, namely import, export, container scanning, express cargo clearance system (ECCS), post clearance audit (PCA), protection and enforcement of intellectual property rights (IPR), etc., and risks posed by changes in Modus Operandi, new exemption notifications, and new CCR's. Review existing parameters and suggest new parameters to address concerns about border and port security.

Once NCTC (Pax) is operationalized, the NRMC will look at incremental improvements to be made in the Automated Targeting System. The Business Analytics wing of GST implements various modules, e.g., risky exporters, risky taxpayers, scrutiny of returns, audits, analytical reports, etc. The NRMC will advise on changes, if any, to be made in the various risk criteria that define the risk in these modules.

Yet another function of NEMC is to discuss and advise on enhanced use of technology, data sources, and analytics capabilities to discern security-related risks. Deliberate use of Al/ML, image analytics, geospatial analysis, etc. The NEMC shall address security vulnerabilities in the international supply chain through entity profiling of stakeholders, leveraging information in databases about the movement of vessels and containers, etc.

As per the guidelines, each Custom Zone and CGST zone will establish a Local Risk Management Committee (LRMC), which shall be led by an official at the level of Pr. Commissioner or Commissioner.

The LRMC will be comprised of the Additional/Joint Commissioner in charge of Special Investigation and Intelligence Branch (SIIB), Anti-Evasion/Preventive wings as the case may be, who will be designated as the Local Risk Manager, and who will also function as the Secretary to the Committee. The LRM Committee shall also include the Additional/Joint Commissioner in charge of Customs Post Clearance Audit/CGST Audit and a nominee, not below the rank of a Deputy Director from the regional/zonal unit of DRI, DGGI, DG Audit, and Asst/Deputy Director from DGARM, Delhi or Mumbai, wherever possible.

The LRMC shall review trends in imports of major commodities and all related issues such as admissibility, classification, valuation, CCR's, levy of BCD, IGST, ADD, as well as discuss trends and patterns of trade with a view to identifying risk indicators.

Instruction No. 3/2022-Customs

Dated: 23 April, 2022

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