CUSTOMS & CENTRAL EXCISE COMMISSIONERATE : NAGPUR

TRADE NOTICE NO.351/62/98
TECHNICAL DATED 19.11.98

Subject : Central Excise - Special facility of self-certification and self-sealing to large manufacturer- exporters - Instructions Regarding.

  1. Attention of the trade is invited to Notification No.38/98-CE(NT) dated the 2nd September, 1998, whereby in Rule 187A of the Central Excise Rules, 1944, a proviso has been inserted so as to extend special facility to the large manufacturer-exporters in respect of examination, certification and sealing of export goods at the place of despatch.

  1. Under the newly inserted proviso to rule 187A, two categories of manufacturer-exporters have been defined for eligibility of this facility, namely :-
    The manufacturer-exporter who have paid Central Excise duty exceeding Rs. 10 crores in the preceeding financial year in cash or by debit in current account.
    The manufacturer-exporters who have been accorded the status of Super Star Trading House, Star Trading House, Trading House or Export House under the provisions of the Export-Import Policy announced by the Government from time to time under Section 5 of the Foreign Trade (Development And Regulation) Act, 1992.
  1. Any manufacturer-exporters who opt the facility under this proviso will have to fulfill the two conditions specified thereunder - one relating to intimation to the Department and the other for specifying the category of persons who will certify that goods were sealed in his presence.

The following instructions/guidelines are issued in this regard :-

(i) INTIMATION BEFORE SEALING OF PACKAGES/CONTAINERS

In terms of the first condition the exporter shall give an intimation (mentioning description of the export goods, tentative quantity, value and duty involved and specific date and time of sealing/stuffing and clearance) to the Superintendent of the Central Excise Range with a copy to Assistant Commissioner of Central Excise having jurisdiction over the factory of manufacturer/production, at least 24 hours in advance from the time scheduled for sealing of the packages or stuffing and sealing of a container. In cases where there are frequent clearances for export and the exporter can furnish detailed export-plan in advance (mentioning description of the export goods, tentative quantity, value and duty involved and specific date and time of sealing/stuffing and clearance) the Assistant Commissioner may permit a shorter period for furnishing of intimation. Where such export-plan contains specific details, the same may be accepted as due intimation.

(ii) OBLIGATIONS OF A MANUFACTURER-EXPORTER

  1. The exporter will submit ‘specimen seals’ to the Assistant Commissioner as well as the Range Officer. The seals/sealing pliers must be kept in the safe custody of senior official of the exporter, preferably those who will be certifying on the application in terms of the second condition of the proviso to rule 187A.

  1. In case of sealing of containers, it will be obligatory on the part of exporters to use tamper-proof ‘One Time Locks/Seals’ containing the lock/seal number. This lock/seal number shall be mentioned by the senior official of the exporter on the AR4 at the time of certifying the sealing.

  1. The certificate will be given by making the following endorsement :

"Certified that the description and value of the goods covered by this invoice/AR4 have been checked by me and that goods have been packed and sealed with lead seal/OTL having seal no…………, under my supervision."

Date:-                                                                                                                                  Signature and Stamp

(Name & Designation of the signing person).

  1. As far as possible, in case of containerised cargo, it should be ensured that the consignment should be examined prior to stuffing in the container. In such cases, the Central Excise Officer will supervise the stuffing and the sealing. The exporter will endorse the requisite certificate in the manner specified at ( c) above .

(iii) It is clarified that the aforesaid procedure for examination at the port of export relate to the requirements under the Central Excise Rules.

(iv) The Assistant Commissioner may order for surprise checks to verify whether a manufacturer-exporter is complying with the aforesaid procedure.

(v) All Trade Associations, Chamber of Commerce and Member of RAC are requested to bring the above contents to the knowledge of their member constituent in general and manufacturers in particular.

Sd/-
( K.C.SINGH)
COMMISSIONER

Authority : Ministry’s Circular No.426/59/98-CX issued under F.No.209/08/98-CX.6 dated 12th October, 1998.

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