Circular No.57/1997-Cus.date 31/10/97

During the meeting with Commerce Minister held on 23rd October, 1997 to discuss the problems of the exporters, it was pointed out that clearance of export goods under the Export Promotion Scheme, logging of DEEC Books and payment of Drawback were delayed on account of frequent drawal of samples and the inordinate time taken to issue Test Reports. It was explained that Mumbai Custom House has already streamlined the procedure for testing of goods and rationalise the need for drawal of samples. In this connection a copy of Mumbai Customs Mouse Standing Order/Public Notice is enclosed for guidance. The procedure contained in the enclosed Standing Order/Public Notice should be henceforth followed in all the Custom Houses as a measure of export facilitation.

Sd/-
(Sunil Kumar)
Director (Drawback)

F.No.605/161/97-DBK

22/96 Appraising Group VII,
168 New Custom House,
126 Ballard Estate,
Mumbai :400038

Date: 1.2.96

Public Notice

Sub:Testing of goods exported under DEEC and Pass Book Schemes-regarding.

Attention of Importers/Exporters/CHAs and all other concerned is invited to this Custom House Public Notice No. 18 & 19 both dated 31.1.95 and Public Notice No. 150 dated 20.9.95. In terms of the said Public Notices the logging of DEEC export book is allowed only after the required test results. Wherever applicable are available similarly. In cases of Pass Book Scheme the credit is allowed in the Pass Book only after the Test results have been obtained. A number of representations have been received from the trade stating that due to delay in obtaining the test results. A lot of money is blocked as the DEEC Books are not logged/credit not allowed in the Pass Book which has a detrimental effect on the export effort. The matter has been examined. As a measure of export facilitation, it has been decided that following facilities shall be available to the manufacturer exporters in so far as testing of export samples under the DEEC/Pass Book Scheme is concerned.

2. In the case of manufacturer exporters who have Inhouse testing facilities, samples may not-be drawn and the Inhouse Test results may be relied upon for the purpose of logging of DEEC export book as Well as verification of credit under the Pass Book Scheme; provided the Inhouse testing facility of the manufacturer exporter has been recognised as follows;

(a) The manufacturer exporter has been awarded GMP (Good Manufacturing Practices) certificate by the concerned Drug Controller; or

(b) The Inhouse testing facilities are approved by ISI/CSIR/Ministry of Science and Technology or the nodal Ministry; or

(c) The manufacturer exporter has been awarded ISO 9002 certification. In such cases, the exporter would have to enclose a copy of the Inhouse test certificate with the Shipping Bill.

3. Further, where the samples of the export product have earlier been drawn by the Central Excise authorities and test results of the same are available, these test results can be relied upon for the purpose of exports under the said Schemes provided the said test reports bring out the technical characteristics of the inputs as required to be ascertained under the Schemc(s). In such cases the manufacturer exporters would be required to obtain a copy of the test result duly certified by the jurisdictional Central Excise Supdt. and submit the same along with the factory examination report of the export consignment. The test results obtained from the Central Excise test laboratories shall be valid for six months from the date of their issue, for the purpose of waiving the drawal of samples under DEEC/Pass Book Schemes.

4. The above facilities shall be allowed to only manufacturer exporters. However, Customs would have the right to draw samples by surprise, go in for a detailed verification/testing etc., without assigning any reasons whatsoever.

5. This Public Notice comes into effect immediately.

Sd/-
(S K. Bhardwaj)

Commissioner of Customs-11,
Mumbai

Issued from:

F.No. S/16-MISC-885/93 Gr.7

Attested by

Sd/-
(Sandeep Prakash)
Asstt. Commissioner of Customs,

Appraising Group VII, Bombay

S.O. No. 7181/96

Appraising Group VII

New Customs House
Ballard Estate
Mumbai :400038

Date: 1.2.96

Standing Order

Sub : Testing of goods exported under DEEC and Pass Book Schemes-Regarding.

Attention of all officers and Staff is invited to this Custom House Standing Order No. 7078 dt. 20.1.95 and Standing Order No. 7131 dt.21.9.95 regarding procedure for export/import under DEEC, Pass Book Schemes respectively. Specific attention is invited to para 2.3.4. of the Standing Order No. 7080 and para 5 of the Standing Order No. 7131 which provide that in case the goods are required to be chemically tested, the sample of the first consignment shall be necessarily sent for test. The subsequent samples may be sent for test on the basis of one out of 10 consignments to be drawn at random and with an element of surprise. It has been observed that the Custom House Laboratory is not adequately equipped to handle the present work load. Consequently, the test results are delayed which lead to delay in logging of DEEC Export Book and verifications from the Trade. As measure of export facilitation and with a view to reduce the work load on the Custom House Laboratory, following?- instructions are issued with immediate effect.

2. In the case of manufacturer exporter who have Inhouse testing facilities, samples may not be drawn and the Inhouse Test results, a copy of which is to be enclosed with the Shipping Bill, may be relied upon for the purpose of logging of DEEC export book as well as verification of credit under the Pass Book Scheme, provided the Inhouse testing facility of the manufacturer exporter has been recognised as follows;

(a) The manufacturer exporter has been awarded GMP (Good Manufacturing Practices) certificate by the concerned Drug Controller; or

(b) The Inhouse testing facilities are approved by ISI/CSIR/Ministry of Science & Technology or nodal Ministry; or

(c) The manufacturer exporter has been awarded ISO 9002 certification.

3. Further, where the samples of the export product have earlier been drawn by the Central Excise authorities and test results of the same are available, these test results can be relied upon for the purpose of exports under the said Schemes provided the test reports clearly bring out the nature and technical characteristics of the inputs as required to be ascertained under the Scheroe(s). In such cases the manufacturer exporters would be required to obtain a copy of the test result duly certified by the jurisdictional Central Excise Supdnt. and submit the same along with the factory examination report of the export consignment. The test results obtained from the Central Excise test laboratories shall be valid for six months from the date of their issue, for the purpose of waiving the drawalof samples Under DEEC/Pass Book Schemes.

4. The above facilities shall be allowed to only manufacture exporters. In case any exports of the manufacturer exporter come to adverse notice by Customs or by any other agency, the facilities as extended in para 2 & 3 above shall be dis-continueforthwith. Notwithstanding anything in this Standing Order the Department retains the right of drawing the samples by surprise at any time.

5. In respect of Merchant exporters the procedure as prescribed in Standing Order No. 7078 and 7131 shall continue to be followed.

6. This standing order comes into effect immediately.

Sd/-
(S.K. Bhardwaj)
Commissioner of Customs-11
Mumbai

Issued by:

F.No. S/16-MISC-885/93 Gr.7

Attested by

Sd/-
(Sandeep Prakash)
Asstt. Commissioner of Customs

Appraising Group VII Mumbai

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