The Central Board of Indirect Taxes and Customs (CBIC) has issued revised guidelines for the National Risk Management Committee (“NRMC”)/Local Risk Management Committee (“LRMC”) for effective implementation of the Risk Management System in Customs and GST.
Consequent to the creation of the Directorate General of Analytics and Risk Management (DGARM), the Directorate has been looking into the risk parameters of Customs, Passenger profiling, and GST, there is an urgent need to revisit the guidelines and mandate of the NRMC.
As per the circular, there shall be established a National Risk Management Committee for Customs and GST. The DGARM, Delhi will be the nodal agency responsible for convening the NRMC meeting to review the functioning of the NCTC-Cargo, NCTC (Pax), and the GST Business Analytics Wing. These wings under the DGARM will supervise the implementation and enhancement of RMS, APIS, and the DGARM applications and provide feedback for improving the effectiveness of risk management and all related aspects. The NRMC will be a Standing Committee with the Member (Investigation), CBIC, as Chairman and Additional Director General, DGARM Hqrs, Delhi will the Member Secretary of the NRMC.
The circular further included the names of Standing Committee members. The NRMC shall be convened once every year and will have the functions including reviewing 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 on the border and port security, the Business Analytics wing of GST implements various modules e.g., Risky Exporters, Risky Taxpayers, Scrutiny of Returns, Audit, 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, deliberate and advise on new and emerging risks, and suggest ways to address systemic risks, have cross-cutting implications.
The NRMC may hold an additional meeting(s) in a year, as and when the situation warrants. Recommendations/deliberations of the National Risk Management Committee Meeting will be submitted to the CBIC and other relevant stakeholders for further necessary action.
A Local Risk Management Committee (LRMC) shall be constituted in each Custom Zone and CGST zone and it shall be headed by an officer, not below the rank of Pr. Commissioner/Commissioner.
“The LRMC will comprise 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 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. LRMC Minutes/Periodic reports with the approval of the Pr/Commissioner will be sent to the ADG, DGARM, Delhi who will be the Member Secretary of the NRMC,” the circular said.
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