Cabinet approves text of MOU with UK on customs matters

The Union Cabinet has approved the text of a new memorandum of understanding (MoU) to be signed between India and United Kingdom on mutual administrative assistance to facilitate cooperation in the prevention, detection, investigation and combating of customs offences.

The decision was taken at the meeting of the Cabinet yesterday presided over by Prime Minister Manmohan Singh.

An official press release said the MoU provides for assistance by sharing information and intelligence to facilitate proper application of customs law and prevention, detection, investigation and combating of customs offences.

The assistance under the MoU shall be provided in accordance with the national laws within the competence and available resources of the customs administration. The MoU also provides for "capacity enhancement" by way of cooperation in exchange of information on new customs law enforcement techniques, modern technologies and on developments in policy, legislation and the evolution of best practices.

The provisions in the approved MoU have been framed to enable systematic and structured exchange of information, including a separate Service Level Framework, to facilitate expeditious response on requests within a prescribed time frame.

This agreement will significantly help the Indian Customs Administration in getting reliable information to enable detection and investigation of customs violations, particularly in the critical area of under-valuation of imports and over-valuation of exports and the consequent fraudulent availment of export incentives.

An MoU had earlier been signed between the Central Board of Excise and Customs (CBEC) and UK Customs on cooperation in customs matters on March 16, 2001. After mutual discussion, it was agreed that the existing MoU needs to be replaced by a new one in the light of the current requirements and to provide for systematic exchange of data and information, the release added.

NNN