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Circular No. 31/95-Cus.
dated 30/3/95
F.No. 605/1/95- DBK
Government of India
Ministry of Finance
Department of Revenue, New Delhi

Subject : VBAL – Endorsement in sensitive List

Instances have been brought to the notice of the Board where exporters are facing difficulties in clearing their imported goods on account of objections being raised by the custom Houses with regard to endorsement of quantities/ value in the Sensitive Lists. In this regard the position is clarified as under :-

    • (a) Where non-sensitive items have been imported by the Licence holders/ transferees, there is no need to direct them to obtain any endorsement of the quantity or other details for sensitive items so long as such sensitive items are not being imported. In other words if the value restriction with reference to the items appearing in the Sensitive List is k
    • nown, only  the balance value should be taken for import of non-sensitive items. Where, however, the importer does not import a
    ny of the sensitive items but desires to import only non-sensitive items to the full value of the Licence, there should be no objection for such clearances if the sensitive goods are under List-I, or List-II i.e. with quantity or value restriction.

(b) But in respect of sensitive goods endorsed on the Licence and falling in Part III of the Sensitive List with both quantity and value restrictions, the value of such goods in the sensitive goods should be excluded from the general flexibility allowed under the Scheme. This is amplified in the Head Note at page 733 of Handbook (Volume II) which reads as under:-

    • “In respect of the following items, Licence shall be issued with both value and quantity as limiting factor and the individual CIF value f
    or imports of these items shall not be utilised for import of other items permitted in the Licence”.

2. The above position has been clarified in Member (Cus+EP)’s telex F.No. 605/1/95- DBK dated 24.3.95 addressed to Shri S.K. Bhardwaj, Collector of Customs, Bombay and to all Collectors of Customs.

3. Based on the above guidelines, please issue recovery instructions and ensure immediate clearance of all Bills of Entries pending. In case of any doubt on any of the DEEC import, Collectors should contact either Member (Customs + EP) or Commissioner (Drawback) on Telephone followed by Fax on the doubts for issuing clarifications.

Sd /-
K.D. Tayal
Commissioner (Drawback)

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