The Central Board of Excise and Customs (CBEC), last Monday issued a circular (In continuation of Circular No. 26/2017 dated 01.07.2017) regarding Implementation of Electronic Sealing of Containers by Exporters w.e.f. 1st October 2017.
The Board in its earlier Circular prescribed certain conditions for Self-sealing procedure.
1. Obligation to intimate Jurisdictional Customs Officer
The exporter shall be under an obligation to inform the details of the factory or warehouse where container sealing is to be carried out.
2. GST & Other Compliance
The exporter should be registered under the GST and should be comply or file requisite Forms i.e. Form – GSTR 1 & GSTR 2.
Where exporter is not a GST registrant, then he shall bring the export goods to a Container Freight Station/Inland Container Depot for sealing. However, certain situations, an exception is available to the Status Holders recognized by Director General of Foreign Trade (DGFT) under a valid status holder certificate.
Any exporter desirous of availing this procedure shall inform the concerned Officer at least 15 days in advance before the first movement of a consignment from his/her factory or warehouse.
The jurisdictional Superintendent or an Inspector of Customs shall visit the premises from where the export goods will be sealed for export. The concerned Officer will submit a report to the jurisdictional Deputy Commissioner of Customs or the Assistant Commissioner of Customs within 48 hours.
Further, the jurisdictional Deputy Commissioner of Customs or the Assistant Commissioner of Customs shall forward the proposal to the Principal Commissioner/Commissioner of Customs who would grant permission for self-sealing at the approved premises.
Once the permission is granted, the exporter shall furnish only intimation to the jurisdictional Superintendent or Customs each time self-sealing is carried out at approved premises. In case of unfavorable Order by concerned officer, the exporter shall bring the goods to the Container Freight Station for sealing purposes.
3. Validity of Self-sealing Permission
Self-Sealing permission once given by the concerned officer shall be valid for export at all the customs stations. The customs formation granting the self-sealing permission shall circulate the permission along with GSTIN of the exporter to all Custom Houses concerned.
Transport document for movement of self-sealed container by an exporter from factory or warehouse shall be same as the transport document prescribed under the GST Laws.
In the case of an exporter who is not a GST registrant, way bill or lorry receipt shall be the transport document.
The exporter shall seal the container with the tamper proof electronic seal of standard specification. Before sealing the container, the exporter shall feed the data such as name of the exporter, IEC code, GSTIN number, description of the goods, tax invoice number etc.
The exporter intending to clear export goods on self-clearance shall file the Shipping Bill under digital signature.
4. Consignments are subject to Inspection
All consignments in self-sealed containers shall be subject to examination or inspection at the port of export. At the port, the customs officer may verify the integrity of the electronic seals to check for tampering, if any.
The Board in its latest Circular prescribed a procedure to be followed by the exporter.
1. The Exporters who were availing self- sealing at their factory under supervisory of the Department, will be automatically entitled for self-sealing procedure. Further, who are already following the self-sealing procedure need not to approach the jurisdictional officers.
2. Non-Compliance :
The permission to self-seal, once granted shall be valid unless withdrawn by the concerned officer for non-compliance to law, rules & regulations.
In case the exporter makes a request for a change in the approved factory, then the prescribed procedure as provided in the Circular No 26/2017 shall be followed & a fresh permission shall be obtained.
3. Intimation of Physical Serial Number
The exporter will be obligated to declare the physical serial number of e-seal at the time of filing Integrated Bill or in the case manual shipping bill before the container is dispatched for the designated port.
The exporter shall directly procure RFID Seals from vendors, confirming to the prescribed standards & specifications. In case, the RFID Seals found to be tampered with, then mandatory examination would be carried out by the Customs Authorities.
4. Requisite details from Exporters
5. Vendors Obligations
All vendors will be required to transmit the said details to RMD & the respective destination ports.
Further, all vendors shall be required to make their own arrangements for reading or scanning of RFID one-time Bolts at the Customs ports.
The integrity of the RFID Seal would be verified by the Customs Officer at the port.
Further, the vendor shall undertake to integrate the information stored on the data retrival server with ICEGATE at his own cost as specified by the Director General of Systmes, New Delhi.
The Author is a budding Tax Law Professional & can be reached at firstname.lastname@example.org