2010 (10) TMI 681 - AT - Customs

Confiscation - goods/packaging materials did not contain any details of manufacturer s name, address and the period of manufacture, and hence the test reports could not be linked with the consignment under import - Sub-standard toys are known to possess high toxic content due to high concentration of lead and cadmium, which not only poses a grave health hazard to children but also harms the environment - Certificates issued by the manufacturers can be linked to the consignments only when the name and other details of the manufacturers are printed on the toys and packages - Circular No. 21/2008-Cus., dated 18-12-2008 - Since the goods are still with the Department, we direct the appellants to send representative samples to any of the certified laboratories mentioned in the Board s letter dated 7-12-2009 namely IIT, Chennai and M/s. SGS India Pvt. Ltd., Gurgaon and if the imported toys conform to the standards specified, they shall be released to the importers who shall also ensure that the packaging requirements in terms of DGFT Notification No. 44 dated 24-11-2000 are strictly complied with before clearance from the Customs - Appeal is disposed of

Issues:
1. Classification of imported goods under Customs Tariff Headings.
2. Compliance with Foreign Trade Policy provisions for import of toys.
3. Establishment of link between imported goods and certificates.
4. Confiscation of goods for non-compliance with labeling requirements.
5. Guidelines for testing and release of imported goods.
6. Options available to importers if testing is not chosen.

Issue 1: Classification of imported goods under Customs Tariff Headings
In the case of M/s. Nandi Marketing, a bill of entry was filed for clearance of children's bicycle, baby ride, prams, and toys. The goods were classified under different Customs Tariff Headings. The adjudicating authority held that the toys did not conform to the Foreign Trade Policy provisions, leading to confiscation of toys while ordering the release of other goods. The Commissioner (Appeals) set aside the confiscation based on the presence of specific markings on the packaging establishing a link between goods and manufacturer.

Issue 2: Compliance with Foreign Trade Policy provisions for import of toys
The import of toys was subject to specific requirements under the Foreign Trade Policy, including certificates of conformity and testing by accredited laboratories. The failure to provide necessary details on the goods and packaging led to confiscation in some cases. The Commissioner (Appeals) directed testing of goods by certified laboratories in line with CBEC guidelines to determine compliance with standards and allowed for release upon meeting requirements.

Issue 3: Establishment of link between imported goods and certificates
The absence of manufacturer details on the imported goods and packaging raised concerns about the validity of test reports and certificates. The presence of logos and specific markings on packaging was deemed insufficient to establish a direct link between goods and certificates. The requirement for accurate labeling and linkage with certificates was emphasized to ensure compliance with import regulations.

Issue 4: Confiscation of goods for non-compliance with labeling requirements
Confiscation of goods occurred when imported items failed to meet labeling requirements and establish a clear connection with certificates and testing reports. The importance of accurate labeling, including manufacturer details and batch information, was highlighted to ensure traceability and compliance with regulatory standards.

Issue 5: Guidelines for testing and release of imported goods
Guidelines issued by CBEC recognized laboratories with BIS standards for testing imported goods. The Commissioner (Appeals) directed testing of goods by certified laboratories and outlined the process for release upon meeting prescribed standards. Importers were instructed to comply with packaging requirements before clearance from Customs.

Issue 6: Options available to importers if testing is not chosen
Importers were given the option to either send representative samples for testing to certified laboratories or choose re-export of goods within a specified timeframe if testing was not preferred. The judgment provided importers with clear alternatives to ensure compliance with regulations and standards.

In conclusion, the judgment addressed various issues related to the classification, compliance, labeling, and testing of imported goods, emphasizing the importance of adherence to regulatory requirements to safeguard public health and interests. The decision provided detailed directions for handling cases involving non-compliance and outlined options available to importers for resolving issues related to imported goods.

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