Have you ever tried to explain the positioning of Customs Department under Union Govt? My survey says you might not felt fully confident at first instance.
Although, most of you have quite a good expertise in dealing with routine work inside Customs Department but not so sure about the organisational silos.
However, the only reason for this, I see you seldom needed all this information in your routine work.
On an important note, I would suggest you getting to know all this because the Customs Department also offers you an opportunity for working on deputation. Yes, you can go into another department for exposures and come back to your department.
But how does it matter? I am afraid, you may at times, not be knowing that the top brass of the department of your deputation and the parent one is one and the same. And ignorance becomes at times embarrassing.
So, let us try uncovering the organizational silos of your very own Customs Department for you got, why is it imperative.
How Ministry of Finance (MoF) Looks like
Ministry of Finance(MoF) serves as the Treasury Department of Govt of India. In particular, it oversees taxation, financial legislation, financial institutions, capital markets, centre and state finances, and the Union Budget.
Also, MoF is the cadre controlling authority of the Indian Revenue Service (IRS), Indian Economic Service(IES), Indian Cost Accounts Service (ICAS) and Indian Civil Accounts Service (ICAS).
Ministry of Finance(MoF) has 5 departments under its wings
1.Department of Revenue
2. Department of Expenditure
3. Department of Economic Affairs
4. Department of Financial Services &
5.Department of Investment and Public Asset Management (DIPAM)
Each of these Departments has a Secretary as its head, usually an IAS. Further, the senior most secretary of all five department is appointed as Finance Secretary. For instance, Sh. Hasmukh Adhiya is currently both Revenue Secretary & Finance Secretary on account being senior most of all the five secretaries. He is an 1981 batch IAS, Gujrat cadre.
Brief On All The Five Departments Under MoF
A. Functioning of Department of Revenue
This department controls matters relating to all the Direct and Indirect Union Taxes through two statutory Boards viz, the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes & Customs (CBIC).
Further, either of Boards is headed by a Chairman who is also ex officio Special Secretary to the Government of India (Secretary level).
Just to add, CBDT and CBIC (earlier CBEC) were constituted under the Central Board of Revenue Act, 1963. At present, the CBDT has 06 Members and the CBIC has 05 Members. The Members are also ex officio Secretaries to the Government of India.
Forming of CBDT Currently
- Chairperson CBDT- Sushil Chandra
- Member(Income Tax)
- Member(Legislation and Computerization)
- Member(Revenue)
- Member(Personnel & Vigilance)
- Member(Investigation)
- Member(Audit & Judicial)
Forming of CBIC Looks Like
- Chairperson CBIC – Mr. S. Ramesh, IRS
- Member(Budget) – Mr. John Joseph, IRS
- Member(Customs) – Mr. Pranab Kumar Das, IRS
- Member(admin.) – Mr. Raj Kumar Barthwal, IRS
- Member(GST) – Mr. Mahender Singh, IRS
- Member(IT) – Mr. Susanta Kumar Panda, IRS
- Member( Central Excise, Service Tax and Legal) – Smt. Ameeta Suri, IRS
B. Functioning of Department of Expenditure
It is the nodal agency for overseeing the public financial management system (PFMS) in the Central Government and matters connected with the finances. Main activities of the Department include pre-sanction appraisal of major schemes/projects (both Plan and non-Plan expenditure), handling the bulk of the Central budgetary resources transferred to States, and implementation of the recommendations of the Finance and Central Pay Commissions etc. National Institute of Financial Management (NIFM), Faridabad comes under the administrative control of Department of Expenditure.
So, the Department of Expenditure is about regulating chiefly the expenses part of the government.
C. Functioning of Department of Economic Affairs
It is the nodal agency of the Union Government to formulate and monitor country’s economic policies and programmes.
Also, one of the main responsibilities of this Department is the preparation and presentation of the Union Budget (including Railway Budget) & budget for the states under President’s Rule and UTs.
In short, Department of Economic Affairs is about Budget, Economic Policies and their implementations.
D. Functioning of Department of Financial Services
The Department of Financial Services oversees Banks, Insurance and Financial Services provided by govt agencies and private corporations.
Also, it concerns pension reforms and Industrial Finance and Micro, Small and Medium Enterprise.
Notably, Pradhan Mantri Jan Dhan Yojana has been started by them.
Further, Pension Fund Regulatory and Development Authority (PFRDA) a statutory body also works under this department.
To sum up, the Department of Financial Services is about looking after financial institutions.
E. Functioning of Department of Investment and Public Asset Management (DIPAM)
Department of Investment and Public Asset Management (DIPAM) was earlier Department of Disinvestment. This department concerns proper management of Centre’s investments in equity including its disinvestment in central public sector undertakings.
Although, since 1999, DIPAM acted as an independent ministry (The Ministry of Disinvestment) until 2004.
Later on, the Department of Disinvestments (now DIPAM) came under MoF in May 2004.
So, chiefly DIPAM is about management of govt equity to give leg up.
Role of CBIC, Earlier CBEC
Customs Department comes under administrative control of Central Board of Indirect Taxes & Customs (CBIC) which in turn forms a part of the Department of Revenue under the Ministry of Finance, Government of India.
Moreover, CBIC apart from being administrative authority of Customs is also an administrative authority for all Custom Houses, Central Excise Commissionerates and the Central Revenues Control Laboratory.
Role of Customs Department of India
If you examine the things in present scenario, the customs department has a dual role to play.
Unlike early Customs, where its main work was to check the outright smuggling , the role of modern day Customs Department has forked into two.
For Smuggling to put on check the Customs today also has a major role to play . But the trade facilitation and easing the trade procedure has also come up in its top agenda.
In view of dual challenge, that comprises sharp detection to avoid tax evasion and trade facilitation to cut down costs, time and bring efficiency, the role of Customs department has simply has gone upwards.
As per last fiscal year’s data Customs department has been instrumental in revenue collection of almost Rs. 2.10 lakhs crore . Out of which nearly 30% alone was contributed by Mumbai Customs.
Additionally, making seizures of Gold and drugs almost everyday is part of routine work by Customs. In some or other part of the country these seizures are effected with all major credit to Customs Department.
By doing this, Customs Department not only safeguards the economic frontiers but also protects the country from being destroyed. Seriously, the drugs and arms smuggling if not checked by Customs Department can ruin the country in no time.
Government Measures to Strengthen Customs Department
Mr. Arun Jaitley, the Finance Minister, Govt of India launched recently, two IT tools namely ICETAB & ICETRAK. To actualise digital India, govt took every step to transform the masses to match up the vision behind. The Customs Department could not be ignored given its importance in ranking the country. The software launch by the hon’ble FM is a step towards that end.
Precisely speaking, ICETRAK app is going to be a one-stop portal for effective communication between trade and the Department of Customs & Central Excise. This app facilitates tracking of documents of Imports and Exports and has a duty calculator too. It comes with GSTIN enquiry feature and many other information / notifications pertaining to Customs Act for the trade. True to its core, CBIC launched this as a measure of Trade Facilitation and ease of doing business.