PUBLIC NOTICE NO.85/2001 Date: 13.07.2001

Norms for granting permission for factory/warehouse stuffing of export goods and procedure- reg.
Attention of the Exporters, CHAs and all concerned is invited to this Custom House Notices Nos. 112/89 dated 8.9.89, 168/95 dated 11.10.95 and 138/99 dated 23.12.99 prescribing norms for granting permission for factory/warehouse stuffing of export goods and procedure therefore.

2. Representations have since been received from various exporters and trade to review the procedure for obtaining permission for factory/warehouse stuffing and examination of the export goods under the DBK, Free, DEPB, DEEC and DFRC schemes. It has been represented that currently exporter/CHA apply for factory stuffing permission separately for various export promotion schemes to different sections of Export deptt., which causes inconvenience to them. Therefore, in order to streamline the procedure and with a view to further facilitate exports it has been decided that the exporters/CHAs may apply to AC/DC (Gr.7 Exports) for a single permission for factory stuffing under DEEC, DEPB, DFRC schemes. Similarly for factory stuffing permission for DBK and Free exports, single application may be made to DC (Export).

3. AC/DC of Customs (Export/Gr.7)/ (Export) will grant such permission for a period of three (3) months at a time for examination and stuffing of export consignments under supervision of Central Excise Officers or Customs Officers, as the case may be, on M.O.T. basis. In each such case a model examination order would be issued to the jurisdictional AC/DC of Central Excise in case of stuffing under C. Ex supervision or to the AC/DC (Docks) for stuffing under Customs supervision, as the case may be. The permission letter will be sent in a sealed cover to the concerned officers to examine the cargo to be stuffed.

4. The category of goods which will be so allowed to be stuffed at such places are as follows:-

(a) All goods in the factory of production whether or not such goods are excisable;

(b) Perishable frozen sea food/fish/meat/similar item and agricultural horticulture and similar goods;

(c) Articles of foods and pharmaceutical goods which require specialized packing in order to be protected from contamination, deterioration etc;

(d) Glassware and similar articles of fragile nature and

(e) Goods to be exported under duty free shipping bills.

5. In case of exporters having their factories in Mumbai, either they can obtain such permission for 3 months or obtain permission for individual shipments, as the case may be, for stuffing/examination. These exporters will have the option to stuff and examine their export cargo either under Central Excise/Customs supervision. Customs staff for the supervision/examination of export cargo will be available on overtime only on holidays or after normal office hours.

6. In cases of export other than under claim for drawback, DEFC, DEPB or DFRC Schemes and where the manufacturer exporter is a Central Excise Licencee, such export cargo may not be subjected or re-examination in the Docks if it has been examined and sealed under Central Excise supervision. In respect of such free shipping bills, (wherein no claim for Drawback or DEPB or part of export obligation of DEEC or DFRC scheme is envisaged) exporters can avail of the Central Excise supervision facility for examination/stuffing of the containers subject to the condition that such examination is supervised by an officer not less than the rank of Supdt. of Central Excise. This facility would be applicable to all export products which are manufactured in factories under Central Excise Control and which follow the procedure for clearance of goods under Central Excise invoice and the exports are required to be done under AR4 procedure. Small scale units registered with Central Excise can also avail of the above procedure.

7. In respect of goods which are manufactured in factories which are not under Central Excise control, the facility of factory stuffing under Central Excise supervision can be availed by such factories which are situated outside the jurisdiction of Greater Mumbai on M.O.T. basis. In respect of units situated in Greater Mumbai, the examination/stuffing of export cargo have to be normally done only under the supervision of the Customs officers. For this purpose, the services of Customs officers will be available only after office hours and on holidays. However, if such exporters have to execute export orders on urgent basis and during working hours from Monday to Friday (excluding public holidays) they can avail the service of Central Excise Officers for examination/stuffing of the goods at such factory premises on MOT basis.

8. Documents, information to be submitted at the time of making application for the grant of requisite permission by the manufacturer exporter/merchant exporter are as follows:-

(A) IN CASE OF FACTORY STUFFING BY MANUFACTURER EXPORTER:

(i) A request letter for factory stuffing in original mentioning the details reasons for such factory stuffing.

(ii) A copy of Central Excise registration certificate, duly attested by the concerned Central Excise authority in case of units registered with Central Excise, or an attested copy of Small Scale industries Certificate, duly attested, in case of SSI units not registered with Central Excise;

(iii) In case of not-excisable goods or SSI units not registered with Central Excise, original copy of NOC from AC/DC Central Excise mentioning therein their willingness for deputing the Central Excise officers to supervise the examination and stuffing operations in such factory.

(iv) Items to be stuffed with address of factory for every such request or renewal of permission along with their respective DEPB heading No/SION entry Nos. etc.

(v) Export performance in format Annexure ‘A’, duly signed by the exporter.

(B) IN CASE OF FACTORY STUFFING BY MERCHAND EXPORTERS:

(i) Request letter for factory stuffing mentioned therein the detailed reasons for such factory stuffing;

(ii) NOC from supporting manufacturer with every such application;

(iii) A copy of Central excise registration certificate, duly attested by the concerned Central Excise authority in case of units registered with Central Excise or attested copy of SSI registration certificate in case of S.S.I. units, not registered with Central Excise;

(iv) Original copy of NOC duly signed by the AC/DC of Central Excise, in case of non-excisable goods or S.S.I. units not registered with Central Excise, mentioning their willingness for deputing Central Excise Officers to supervise the examination and stuffing operations, in such factory;

(v) Items to be stuffed with address of factory for every such request or renewal of permission along with their respective DEPB heading No./SION entry Nos. etc.

(vi) Export performance in format Annexure ‘A’ duly signed by the Exporter.

(C) IN CASE OF WAREHOUSE STUFFING OF GOODS UNDER FREE, DUTIABLE OR EX-BOND S/BILL:

(i) Request letter for warehouse stuffing permission mentioning therein detailed reasons for such warehouse stuffing;

(ii) Original copy of the NOC from the or warehouse owner with every such request or renewal of permission;

(iii) Original copy of NOC duly signed by AC/DC, Central Excise mentioning therein willingness of deputing the Central Excise officers to supervise the operation;

(iv) Items to be stuffed alongwith address of the warehouse and the exporter for every such request or renewal of permission;

(v) Export performance of the exporter in the format Annexure ‘A’ duly signed by the exporter;

D. IN CASE OF WAREHOUSE STUFFING FOR OTHERS :-

(i) Request letter mentioning therein the detailed reason for factory/warehousing stuffing;

(ii) NOC from Warehouse owner;

(iii) Original letter from jurisdictional AC/DC of Central Excise mentioning therein their No Objection and willingness for deputing Central Excise officers to supervise the stuffing operation at the place of such stuffing.

(iv) Items to be stuffed along with address of the warehouse and the exporter for every such request or renewal of permission along with their respective DEPB heading No/SION entry No., etc.

(v) Export performance of the exporter in the format at Annexure ‘A’ duly signed by the exporter.

9. While applying for such permission the exporter should specify the description of the product to be exported and the details of the inputs claimed under the respective scheme. This one time permission shall be valid for a period of three months and for a particular exporter and the place of stuffing provided that:-

(a) There is no change in the description of the commodity and its particulars/specification;

(b) There is no change in the DEPB/DBK rates and the conditions laid down therein;

(c) There is no change in the EXIM policy or other relevant and allied Acts.

10. Exporters shall present the goods along with relevant invoices (in quadruplicate for export under DBK claims and triplicate for other exports.) packing list, GR form etc. with a written request for prior examination to the jurisdictional Supdt. of Central Excise. The goods will be examined and sealed by the inspector of Central Excise under supervision of Supdt. Central Excise. In case of containers, after examination, the Supdt. Central Excise will supervise stuffing and sealing of the container (after verifying it to be empty) with Customs Bottle Seal only. In case of consignments of value exceeding Rs.25 lacs and all consignments of sensitive commodities established to be prone to malpractices, examination, stuffing and sealing of the containers will be carried out under supervision of AC/DC, Central Excise and necessary orders to this effect will be given on the Model Examination Order. The details of examination carried out (including verification of particulars for duty drawback) and sealing of packages/containers, the container No, and seal No., will be recorded on the invoice/packing list and countersigned by the supervising officer. The Supdt. of Central Excise as well as the inspector of Central Excise will examine the Export cargo as per the model examination orders given by the Custom House. In all cases, unless specifically waived, sealed samples are required to be forwarded to the Custom House. The representative samples should be drawn by the Supdt. of Central Excise and should be sealed with Central Excise seals and should bear indication of shipping bill No., wherever filed in advance or the invoice No., and accompanying documents.

(11) In case the goods under export are subject to compulsory pre-shipment quality inspection, the same can be carried out simultaneously with the Central excise examination and this fact of inspection and sealing of goods by export inspection agency/Agmark official may also be incorporated in the report of Central Excise Inspector.

(12) Whenever export cargo is moved from places under AR4, an extra copy of AR4 should invariably be attached to the S/Bills. The examination report by Central Excise Officers should also be endorsed on the reverse of S/Bills (duplicate and DBK/DEFC etc. copies) where S/Bill is presented to Excise officer after obtaining examination order from Custom House and in other cases on reverse of Invoice.

(13) Thereafter, the exporters are required to file the shipping bill in the Export Deptt of the Custom House along with Central Excise certified copies of invoices, packing lists, G.R. forms etc. Ordinarily there will be no further examination at the docks provided the Central Excise seals and export inspection agency/Agmark seals, if any, are found intact.

14. Exporters are advised to correctly follow the procedure prescribed to avoid re-examination of cargo at the Port. In cases where it comes to notice that the examination by Central Excise Officer has not been carried out in accordance with the prescribed procedures as required under the scheme or where Customs officer has doubts, such cargo shall be subjected to re-examination by Customs in the Docks.

15. In the case of export cargo examined outside the Port by the Customs officers, the Customs seal will be verified by the P. Os in charge of the Division under whose supervision the shipment is to be effected.

16. In other cases not covered by the above, Commissioner (EP) may grant special sanction in individual cases depending on the merits of such cases.

17. This Public Notice supercedes all other Public Notices issued earlier on this subject.



Sd/- 11.07.2001
(M. DWIVEDI)
COMMISSIONER OF CUSTOMS (EP)



Copy to: All concerned


ATTESTED

(U.H. JADHAV)
DY. COMMISSIONER OF CUSTOMS
GROUP VII

A N N E X U R E ‘A’

FORMAT TO BE ENCLOSED WITH APPLICATION FOR FACTORY/WAREHOUSE STUFFING PERMISSION

1. NAME OF EXPORTER

2. FULL ADDRESS

3. NAME AND ADDRESS OF SUPPORTING MANUFACTURER

4. DESCRIPTION OF EXPORT GOODS

5. DEPB HEADING

6. SION ENTRY NO.

7. DEEC LICENSE NO./ APPLICATION NO.

8. PLACE OF STUFFING

9. PERIOD FOR WHICH PERMSSION IS SOUGHT

10. WAS ANY PERMISSION FOR W/H OR FACTORY STUFFING GRANTED EARLIER

11. EXPORT HOUSE STATUS

12. EXPORT PERFORMANCE DURING LAST THREE YEARS

1. 1996-97

2. 1997-98

3. 1998-99

4. 1999-TILL DATE

13. FREQUENCY OF EXPORT

14. DESTINATION OF EXPORT

15. CENTRAL EXCISE REGISTRAION; CERTIFICATE NO.

16. REASONS FOR FACTORY STUFFING



(SIGNATURE OF EXPORTER)

F.NO. S/16-MISC-536/01-GR.VII

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