SALC CIRCULAR NO. 3/2000-2001, Dt. 07/07/2000

Subject:- Export of (i) Freeze Dried Shrimps and (ii) Frozen Pasteurized Crab Meat-Clarification for the purpose of DEPB (Appendix 28A of Handbook of Procedures (Vol. 1).

Sir,

Representations have been received that the customs authorities at some places are categorising the export product viz. Freeze Dried Shrimps as ordinary Sun Dried Shrimps and are covering the same under Sl.No. 1 of the Product Group: Fish and Fish Products (Appendix 28A of Handbook of Procedures (Vol.1) for the purpose of grant of DEPB benefit.

2. It has been mentioned that ‘Freeze Drying’ or Lyophilization is one of the most advanced food processing technologies available internationally and it results in high value addition of the finished products and as such this product should be classified under Sl. No. 2 of the DEPB Schedule so as to entitle the exporters to DEBP benefit @ 5% instead of 2%. Freeze drying is a sophisticated process involving a series of processes which includes cooking, flavouring, addition of preservatives and drying as Lyophilization in advanced machinery. It is not just sun drying or ordinary drying. The product has a very high unit value by virtue of the sophistication of its processing.

3. It has been further represented that the product viz. ‘Frozen Pasteurised Crab Meat’ also is a highly processed and preserved marine product. It is one of the high value added sea food items being sold from India and as such it should also be covered under Sl. No. 2 of the Product Group: Fish and Fish Products in Appendix 28A of Handbook of Procedures (Vol. 1).

4. The Marine Products Export Development Authority (MPEDA) has recommended these proposals. The matter has been considered by DEPB Committee. It is clarified that the export products, viz. ‘Freeze Dried Shrimps’ and ‘Frozen Pasteurized Crab Meat’ are appropriately classifiable under the description of processed, preserved frozen products appearing at Sl. No. 2 of the Product Group viz. : Fish and Fish Products in Appendix 28A of DEPB Schedule and are eligible for DEPB benefit @ 5% provided the exporters concerned specifically declare in the Shipping Bill (as per note below Sl. No. 2) that the preservatives and chemicals, as prescribed in relevant Standard Input Output Norms have been used in the export product. However, with a view to avoid the possibility of the ordinary sun dried shrimps and ordinary frozen crab meat being exported under the garb of ‘freeze dried shrimps’ and ‘frozen pasteurized crab meat’ respectively, the field customs authorities can prescribe suitable checks including physical examination, test etc. on a selective basis for preventing the misuse of the provision.

Yours faithfully,
( S.L. GUPTA )
DY. DIRECTOR GENERAL OF FOREIGN TRADE

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