2011 (2) TMI 22 - AT - Customs

Restriction on import of toys - assessees to send representative samples to certified laboratories - if, on testing, the imported goods are found to conform to the standards specified, then it shall be released to the importers who shall also give an undertaking that the packaging requirements in terms of DGFT notification are strictly complied with before clearance - importer choosing not to get the goods tested, he can exercise the option of re-export of goods within two months

Summary

Issues:
- Clearance of goods described as children toys
- Conformity to DGFT Notification No.113/(RE-2008)/2004-2009
- Requirement of testing by certified laboratories
- Packaging requirements under DGFT Notification No.44 dated 24.11.2000

Clearance of Goods - Issue Analysis:
The issue in dispute pertains to the clearance of goods described as children toys. The department contended that the goods imported did not conform to DGFT Notification No.113/(RE-2008)/2004-2009 as the test report and certificate lacked essential details such as the manufacturer's name, address, and year of manufacture. Consequently, the consignment was held to be non-compliant, leading to confiscation with the option of re-export.

Conformity to DGFT Notification - Issue Analysis:
The Tribunal referred to an earlier order in the case of M/s.Lukkad Impex, where it was established that the import of toys must adhere to Notification No.113/(RE-2008)/2004-2009 due to health concerns and public interest. The Tribunal highlighted the guidelines issued by the CBEC recognizing laboratories with BIS standards capable of testing the goods. It was decided that representative samples should be sent to these certified laboratories for testing. If the goods met the specified standards, they would be released to the importers, who were required to ensure compliance with packaging requirements outlined in DGFT Notification No.44 dated 24.11.2000.

Requirement of Testing by Certified Laboratories - Issue Analysis:
In line with the precedent set in M/s.Lukkad Impex, the Tribunal directed the assessees in the present case to send representative samples to the certified laboratories mentioned in the CBEC's letter dated 7.12.2009. If the imported goods were found to conform to the specified standards upon testing, they would be released to the importers, subject to compliance with packaging requirements. Alternatively, importers failing to test the goods were given the option of re-export within two months.

Packaging Requirements under DGFT Notification - Issue Analysis:
The judgment emphasized the importance of adhering to packaging requirements stipulated in DGFT Notification No.44 dated 24.11.2000 before clearance of the goods. Importers were instructed to provide an undertaking ensuring strict compliance with these packaging standards to facilitate the release of goods found to meet the specified quality criteria. Failure to comply with testing or packaging requirements would result in the option of re-export within the specified timeframe.

In conclusion, the appeal was disposed of based on the directions provided regarding testing, conformity to standards, and packaging requirements, as outlined in the judgment, thereby resolving the issues related to the clearance of children toys and ensuring compliance with relevant notifications and guidelines.