The Hindu Business Line : Scrutiny norms for export cargo eased

The Central Board of Excise and Customs has now indicated that in case of exports where the duty benefit is above Rs 1 lakh, 10 per cent shipments should be checked on a random basis, and in cases where the duty benefit is below Rs 1 lakh, only surprise checks would be carried out.

KOLKATA, March 14

THE Government, following several representations from trade and industry seeking reduction in percentage examination of export consignments for faster clearance of cargo, has now revised the examination norms for export cargo at port of registration.

The Central Board of Excise and Customs (CBEC), following recommendations by the Export Promotion Board, has now indicated that in the case of exports where the duty benefit is above Rs 1 lakh, 10 per cent shipments should be checked on a random basis, and in the cases where the duty benefit is below Rs 1 lakh, only surprise checks would be carried out.

The examination norms have been revised, keeping in view the quantum of incentive, value of export goods, country of destination etc.

According to CBEC, export goods stuffed and sealed in the presence of the Customs/Central excise officers at the factories of manufacture, ICD/CFS, notified warehouses and other places where the Customs Commissioner has by a special order permitted inspection of goods for export, no examination would be required, except where seals are found tampered with or there is specific intelligence reports.

In such cases, permission of Deputy/Assistant Commissioner would be required before checking. And where exports are made under Free Shipping bills (where there is no export incentive), no examination would be required except where there is a specific intelligence report.

Exporters have been advised that in all cases of exports under schemes like drawback/DEPB and EPCG/DEEC (Export Promotion Capital Goods/Duty Exemption Entitlement Certificate), in respect of consignments selected for examination, a minimum of two packages with a maximum of 5 per cent packages (subject to a maximum of 20 packages from a consignment) shall be opened for examination. The package number to be opened for examination will be selected by the system.

CBEC has also advised Customs authorities to ensure that exporters do not split up consignments so as to fall within the lower examination norms. Accordingly, it is indicated that wherever on the same day the same exporter attempts to export a consignment (other than free shipping bills) involving export incentive of Rs 1 lakh or less (drawback or DEPB) or in other cases having f.o.b. value up to Rs 5 lakh to the same country, the system would alert the examining officer that this is the second shipment of the same exporter.

It is pointed out that after goods have been presented for registration to customs and determination has been made whether or not to examine the goods, no amendments in the normal course are expected. However, in case an exporter wants to change any of the critical parameters, resulting in change of value, DBK, DEPB credit, port etc, such consignment would be subjected to examination.

It has also been clarified that any export consignment can be examined by customs (even up to 100 per cent), if there was any specific intelligence in respect of the said consignment. And to test out the compliance by trade, once in three months a higher percentage of consignments would be taken up for scrutiny. Following the easing of examination norms, the Green Channel facility being allowed in some customs houses shall be discontinued, it is pointed out.

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