Self-Sealing Procedure for Export Containers Under GST

Summary: Before GST, container sealing for exports was supervised through three methods: self-sealing at factories or warehouses, sealing under Central Excise officers, or sealing at Container Freight Stations (CFS) or Inland Container Depots (ICD). Post-GST, to ease business operations, the requirement for CBEC official sealing was removed, allowing exporters to self-seal containers under certain conditions. Circulars such as 26/2017-Cus, 36/2017-Cus, 37/2017-Cus, and 41/2017-Cus outline the procedures. Exporters must inform jurisdictional customs about the stuffing location and be registered under GST. Non-GST registered exporters must use CFS/ICD for sealing, except for Status Holders recognized by DGFT. Transport documents should align with GST laws. Exporters need one-time permission from the jurisdictional Customs Superintendent, with subsequent consignments requiring only intimation. Customs officers will inspect premises and forward reports for approval by the Principal Commissioner. Permission granted at one customs station applies to all. If permission is denied, exporters must seal goods at CFS/ICD. A new permission is needed for a change in premises. Required documents include IEC, GST certificates, GST returns, factory registration, RCMC, export goods details, authorized personnel details, and bank confirmations.

Pre-GST (before GST) regime, sealing of containers was done in either of the following three ways

1. Containers stuffed at factory or warehouses under self-sealing procedure.

2. Containers stuffed/sealed at factory or warehouse under supervision of Central Excise officer

3. Containers stuffed and sealed at Container Freight Stations/Inland Container Depots.

Post GST (After GST) for ease of business and to create trust-based environment, the provision of sealing of containers with export goods by CBEC officials is done away and SELF SEALING IS ALLOWED subject to satisfaction of certain conditions .and following circular is issued in this regard;

Self-sealing procedure-conditions

1. The exporter shall inform the details of the premises (factory or warehouse or any other place) where container stuffing is to be carried out, to the jurisdictional customs officer.

2. The exporter should be registered under the GST.

• Where exporter is not a GST registrant, he shall bring the export goods to a Container Freight Station/Inland Container Depot for stuffing and sealing of container. However, in certain situations, an exporter may follow the self-sealing procedure even if he is not required to be registered under GST Laws. Such an exception is available to the Status Holders recognized by DGFT under a valid status holder certificate issued in this regard.
• 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 transport challan or lorry receipt shall be the transport document)

Permission by exporters One time and thereafter only intimation

1. Any exporter desirous of availing self-sealing shall apply for permission to the jurisdictional Custom Officer of the rank of Superintendent, at least 15 days before the first planned movement of a consignment from his/her factory/ premises.

2. 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.

Procedure by Customs Officers

The jurisdictional Superintendent or Inspector of Customs

1. On receipt of the application for self-sealing officers shall visit the premises to inspect the premises regarding viability check and

2. Submit a report to the jurisdictional Deputy Commissioner of Customs within 48 hours.

3. The jurisdictional Deputy Commissioner of Customs shall forward the proposal, in this regard to the Principal Commissioner/Commissioner of Customs who would grant permission for self-sealing at the approved premises.

Permission granted at one ports will be valid at all the customs stations

Self-Sealing permission given by a Principal Commissioner/Commissioner of Customs one customs stations shall be valid for export at all the customs stations.

Permission is not granted for Self-Sealing

Where the visit report of the Superintendent or an Appraiser or an Inspector of Customs regarding viability of the stuffing at the factory/ premises is not favourable, the exporter shall bring the goods to the Container Freight Station (CFS) /Inland Container Depot (ICD)/Port for sealing purposes.

Change in approved premises

Fresh permission is required before commencement of self-sealing at the new premises

Checklist of documents for application for permission of self sealing

i. Copy of IEC

ii. Copy of GST certificates

iii. Copy latest GST return (GSTR-1, GSTR-3B)

iv. AEO certificates if any

v. Factory registration certificates

vi. RCMC certificates

vii. Description and tariff code of exports goods

viii. Details/Biodata of Persons (Name/ Aadhar/photo/ who authorised for self sealing on behalf of the Exporter

ix. Details of director/partners

x. consent Letter or No objection Letter for Use of premises

xi. Confirmation of Bank Details with Signature Attestation

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This article is prepared by CA Rajnish Kumar (+91-8130883807) only for academic purpose and Effort have been made to make document error free, but it is possible that some error might have crept into this document.