In a circular issued on Wednesday, the Central Board of Excise and Customs (CBEC) streamlined the examination norms keeping in view the quantum of incentive, value of export goods, and the country of destination. The industry for long had been demanding reduction in percentage examination of export consignments prescribed in the circular issued on December 8, 1998, for faster clearance of cargo.
The new circular while rescinding the earlier circular, said that for export goods stuffed and sealed in the presence of the CBEC officials at their factories, ICD/CFS, notified warehouses and other places where the concerned commissioner had permitted examination of goods, there will be no examination except where the seals were found tampered or there was specific intelligence information. Further, for consignments involving no export incentives, there will be no examination except where there would be specific intelligence information. Under the 1998 circular, 10 per cent of the consignments falling in this category could be selected for examination at random.
Under the new examination norms, in case of export consignments involving drawback/DEPB up to Rs 1 lakh, and shipped to the sensitive places, 25 per cent of the consignments will be examined physically. The scale of examination for the consignment falling under the same category but shipped to other places will be 2 per cent only.
Fifty per cent of the consignments involving drawback/DEPB of more than Rs 1 lakh, and shipped to sensitive places, would be examined now. The scale of examination in this category for consignments shipped to other places would be 10 per cent. The 1998 circular had provisions for physical examination of all consignments involving drawback/DEPB of over Rs 1 lakh, and 50 per cent in case of a duty involvement of up to Rs 1 lakh except in certain specific cases.
As per the new examination norms for export under EPCG/DEEC schemes, 25 per cent of the consignments where the FOB (free on board) value would be up to Rs 5 lakh, will be physically examined if the consignments would be shipped to sensitive places, and 2 per cent in case of other places.
Fifty per cent of the consignments in this category with fob value of more than Rs 5 lakh, and shipped to sensitive places, would be examined. The scale of examination would be 10 per cent for consignments shipped to other places, according to the new norms.