Procedure to be followed for granting of Letter of Factory Stuffing Permission (LoFSP) to manufacturer-exporters, merchant-exporters and onetime/first time exporters and seasonal exporters on prior verification basis - Customs - 23 /2010

OFFICE OF THE COMMISSIONER OF CUSTOMS (EXPORT), JAWAHARLAL NEHRU CUSTOM HOUSE, SHEVA, DIST RAIGAD, MAHARASHTA F.NO. S/6-Misc-02/2007-FSP-JNCH PUBLIC NOTICE NO. 23 /2010 DATED 26/02/10 (Referred / amended vide P.N.No. 04/2011, 27/2010, 60/2010, 100/2010, 22/2011, 02/2011, 31/2012, 47/2012, 55/2012, 02/2013, 15/2015) ( Referred / amended vide S.O.No. 50/2011) SUB: Procedure to be followed for granting of Letter of Factory Stuffing Permission (LoFSP) to manufacturer-exporters, merchant-exporters and onetime/first time exporters and seasonal exporters on prior verification basis reg Attention of the Exporters, CHAs and the Public is invited to the Public Notice No 57/2001 dated 03.09.2001, 70/2001 dated 21.11.2001, 52/2008 dated 01.07.2008 and 61/2009 dated 04.09 2009 issued by this Customs House whereby the processing of Factory Stuffing Applications/requests received from the Exporting Communities are regulated. However, the procedures of the said Public Notices call for a revisit in the context of number of frauds detected involving the misuse of the Factory Stuffing Permissions. The procedure of granting of Factory Stuffing Permission on post-verification basis has also failed to fulfill the objectives sought for. It was also noticed that the verification reports regarding the genuineness of the premises where export goods were sought for stuffing in number of cases were pending for long which necessitated the cancellation of Factory Stuffing Permission granted to such exporters. It is also a fact that many a times the central excise field formations do not have adequate manpower to offer their services to the supervision of export stuffing at the factory premises of the exporters. Thus, being informed about the host of factors discussed above, it has been decided to make the changes in the procedure for grant of factory stuffing permission as outlined below. 2. The FSP Cell, herein after will issue Letter of Factory Stuffing Permission (LoFSP) in the format as annexed to this Public Notice (Annexure A) to the categories of exporters mentioned below subject to the requirements detailed therein and thereof. 3. In terms of Boards Circular No 860/18/2007-CX dated 22.11.2007 self- sealing of export of goods has been made mandatory for the manufacturer - exporters (whether status holder or not) who export such goods under free shipping bills. Therefore, LoFSP will not be granted to the manufacturer-exporters exporting goods under free shipping bills. However, they can opt for factory stuffing of export goods under export incentive schemes and permission will be given scheme-wise. 4. In case of non-status holder manufacturer exporters operating under any of export incentive schemes i.e in case of exports other than under free shipping bills, the LoFSP will be granted only on receipt of prior verification report regarding the genuiness of the existence and functioning of the units and the No objection Certificate from the concerned jurisdictional Central Excise Authorities regarding deputing of officers for supervising the export stuffing The genuineness of the IEC will also be confirmed from DGFT before issue of LoFSP. 5. Similarly, in case of non -status holders merchant exporter the LoFSP will be granted only on receipt of prior verification report regarding the genuineness of the existence and functioning of the units and No objection Certificate from the concerned jurisdictional Central Excise Authorities regarding deputing of officers for supervising the export stuffing. The genuineness of the IEC of the exporter will also be confirmed from DGFT website before issue of LoFSP. 6. In case of status- holder merchant and manufacturer exporters, the LoFSP will be granted provisionally which will be valid for 30 days and within such period the verification reports i.e NOC from the concerned jurisdictional Central Excise Authorities regarding deputing of officers for supervising the export stuffing and verification report regarding the genuineness of the existence and functioning of the unit shall be submitted by them failing which the permission will stand automatically cancelled. 7. In case of first time exporters the factory stuffing permission from JNCH will be granted only after verifying the genuiness of their existence (IEC from DGFT) and warehouse/factory premises from Central Excise Authorities and subject to their complying with the provisions of Public Notice no. 58/2009 dated 28.08.2009. 8. Exporters also seek ONE Day permission and request for stuffing of containers at Turbhe Railway Station / Grain Yard at Sewri Station and private warehouses at APMC Market Vashi on MOT basis. Since the goods are bulky in nature (sugar, vegetable oil etc.) they need to be stuffed into the containers directly from the Railway wagons at the Railway yard itself. However, the LoFSP will be granted in these cases on their compliance of the P.N.No 58/2009 dated 28.08.2009 and on verification of IEC from DGFT website. 9. Though the LoFSP granted to manufacturer -exporters and others is one time permission in nature, their track record will be monitored and reviewed periodically i.e after a period of every six months. The LoFSP will be cancelled forthwith in cases where the verification report is adverse, not received within the stipulated period and / or the exporters are facing any proceedings under Customs, Excise, Service Tax or any other allied Acts. 10. All the exporters who seek LoFSP shall submit their request in the prescribed application form (as in Annexure-B) along with the following documents to the FACTORY STUFFING CELL, of this Customs House:- i) NOC issued by Central Excise Authorities for deputing officers for Supervising the factory stuffing of export cargo ii) Original copy of the verification report of the genuineness of the existence and functioning of the factory and all other details sought for in Annexure- B issued by Central Excise addressed to the DC, FSP CELL, (in sealed Cover). iii) Copy of the IEC issued by DGFT. iv) e-mail address of the unit and the telephone number of the GM/CEO of the unit. v) Other documents as in P.N. No. 57/2001 dated 03.09.2001 58/2009 Dated 28.08.2009 as applicable. 11. The FSP CELL upon receipt of the application along with the said documents will cross check the genuineness of the details furnished in the sealed cover with the soft copy of the verification report received from the official e-mail address of the jurisdictional AC/DC Central Excise and also the genuineness of the IEC from DGFT website. The LoFSP shall within TWO DAYS be granted to the exporter. 12. The Exporters clearing goods under the Factory stuffed Permission shall invariably produce at the time of goods registration a copy of the LoFSP duly attested by the Jurisdictional Central Excise officer along with the ARE-1 and other documents. The goods registering Officers posted in the Export Shed/CFS will cross check the validity of factory stuffing in the EDI system. 13. The Central Excise officer who supervised the examination and stuffing of the cargo in the appointed premises as per the LoFSP shall mention his office contact Number and put his stamp of name and designation in the examination report/ARE-1 and other documents. Similarly, the contact number, name, designation of the authorized signatory of the exporter also will be legibly indicated below his signature in the ARE-1 that accompanies the export goods. 14. The profile of exporters and their existence is a dynamic phenomenon. Hence, it becomes necessary to verify as to whether the exporters who had availed Factory Stuffing Permission , though, positive verification report was received in respect of them, are still active exporters and functional. Many who availed the permission might have gone out of the trade/business. However, there is no record at present in this Custom House regarding the status of the permissions granted to them since the permission is one time in nature. Therefore, to prevent any possible misuse of the permission of such dysfunctional or defunct exporters by unscrupulous exporters, it has been decided to call for the permissions so issued prior to 2007 to all exporters and revalidate them. Hence, the concerned exporters are hereby required to approach this office with the original permission within a period of 30 days from the date of issue of this Public Notice. 15. Any difficulty experienced in the implementation of this Public Notice may be brought to the notice of the undersigned immediately. (B. K. SINHA) COMMISSIONER OF CUSTOMS (EXPORT) To, All the Concerned Copy to :- 1.The Chief Commissioner of Customs, Mumbai Zone II 2.The Commissioner of Customs (Import),JNCH 3.All the Addl./Jt. Commissioner of Customs, JNCH 4.The Bombay Custom House Agents Association. ANNEXURE A OFFICE OF THE COM MISSIONER OF CUSTOMS (EXPORT) JAWHARLAL NEHRU CUSTOM HOUSE, NHAVA SHEVA TAL-URAN, DIST- RAIGAD, MAHARASHTRA- 400 707. LETTER of FACTORY STUFFING PERMISSION (LoFSP) (Under The Authority of PN NO 57/2001) This Letter of Factory Stuffing Permission( LoFSP) is hereby granted to M/s--------------------------------------------------------- having their factory / supporting manufacturer address at ------------------------------------------------------- and bearing the IEC.No---------------------------- the Central Excise Registration No--------------------------------------- issued by the Division--------- Range ----------- of the Commissionerate------ of --------------- on the basis of the application of the Unit received in this office on . for the scheduled goods in the premises specified herein. 2. This LoFSP is limited and valid only to the goods that are mentioned herein and not to any other goods and subject to the fulfillment of the conditions herein prescribed. LoFSP No.------------------------------------------ (RAJU SAKTHIVEL) JOINT COMMISSIONER OF CUSTOMS NHAVA SHEVA. SCHEDULE OF GOODS PERMITTED FOR FACTORY STUFFING (Additional Sheet may be enclosed where ever required) Sr.No. Description of export goods R.I.T.C. Factory Address of stuffing CONDITIONS 1.This LoFSP is valid for the premises and purposes specified in the application. 2. This LoFSP is not transferable. 3.This LoFSP is not valid in case the goods are not as specified in the schedule attached to this permission. 4. No correction/changes/amendment in the LoFSP will be valid unless the request for any correction/change/amendment is applied for and approved by the competent authority. 5. This LoFSP shall remain valid till the permission-holder carries on the activity for which it has been issued or surrenders it or till it is revoked/suspended by the competent authority. 6. The grant of this permission shall be without prejudice to any other action that may be taken by such other agencies over the premises or purpose to which such agencies may require to enforce such laws to be complied by the Unit. 7. The Unit shall provide necessary assistance co-operation as may be required by the Central Excise authorities for carrying out the examination norms laid down in this permission. 8. This LoFSP is valid for Manufacturer- Exporters for only exports other than under free shipping bills as per Boards Circular No 860/18/2007-CX dated 22.11.2007. EXAMINATION ORDER (AS MAY BE APPLICABLE) Verify particulars as per Invoice and Packing List; Inspect Container No. (As declared on Invoice); Verify empty container, Inspect Lot, Check Marks and Numbers; Examine 10% after selection, Check description, classification, Quantity, Weight, Value and quality, specification, Technical characteristic, grade size, weight, thickness, items Nos., Part Nos., Make Model, Composition etc., of the input; Draw representative sample in duplicate and forward the same duly sealed; Ensure one time tamper proof bottle sealing in terms of the Boards Circular No. 1/2006 dtd. 02.01.2006 (F.No. 450/86/2005-Cus-IV) ; Verify ISPMNO15compliance; eligibility of and correctness of scheme incentive claimed ; verify and ensure that the goods being exported / stuffed are not part/components of arm/ammunition and do not contain any prohibited items. INSTRUCTIONS TO THE FACTORY STUFFING SUPERVISING OFFICERS OF CENTRAL EXCISE i) Package numbers opened and examined by the officers must be recorded in the examination report. ii) Net weight/quantity of the goods and their classification under Customs Tariff and Central Excise Tariff separately, actually ascertained by the examining officers must be recorded in the examination report. iii) Invoice and packing list should also be authenticated by way of signature by the officers on the obverse of such documents. iv) Please ensure that there is no prohibition/restriction on export of goods either by DGFT or CBEC or any other Department as on the date of stuffing. This permission does not confer any right to export any restricted or prohibited goods without complying with the relevant conditions, imposed under any Notification/Export Policy/Rules/Law. v) In case exporter is covered by categories stipulated P.N No 22/96 dated 01.02.96 of Mumbai Customs House, Central Excise Certified copy of the exporters in house test/analysis report must be enclosed with examination report. Representative sealed sample in duplicate must however be forwarded to A/C Export, invariably for future reference/record. vi) Any discrepancy sought to be brought to the notice of Customs Authorities must be mentioned boldly in Red Ink/Typing. vii) Please contact at Phone No. 27241253 for any clarification. This permission is valid only for the aforementioned SCHEME Description of goods. This letter No. and date must be cited in examination report. viii) The Pre Shipment Inspection Certificate issued by the Export Inspection Agency under the Export (Quality Control Inspection) Act, 1963, if applicable, is to be verified. ix) Whenever the goods are exported under Advance License/DEEC scheme, Chartered Engineers Certificate is to be verified to the effect that the goods under Exports are manufactured out of exempt materials as per SION norms. x) This permission may be revoked any time by this office if anything adverse against the exporter/supporting manufacturer is brought to the notice of this office. xi) The contact number of the examining officer may also be mentioned in the export report for clarification if any. xii) PHO/PQ certificate or any other certificate as applicable shall be produced at the time of examination / stuffing of goods. xiii) In case of consignments exceeding ₹ 25 Lakhs and all consignments of sensitive commodities established to be prone to malpractices, examination, stuffing and sealing of the container should be carried out under the supervision of AC/DC. xiv) Please compulsorily verify as to whether the raw or solid wood packaging material(SWPM) used for packing of the export goods are treated and marked as per the provisions of International Standards for Phytosanitary Measures( i.e ISPM No. 15) or the export goods are accompanied by a Phytosanitary Certificate issued by agencies accredited or certified by Department of Agriculture and Cooperation(DAC) .( see http://agricoop.nic.in). In case of non-compliance, the matter may be referred to the Plant Quarantine authorities for proper treatment of export goods before their release as required under Boards Circular No. 14/2009-Cus dated 06.05.09 under intimation to this office. xv) Report to the JC/ADC (FSP) immediately any discrepancies noticed in respect of the export goods permitted under this instrument to this office for initiating necessary action. (RAJU SAKTHIVEL) JOINT COMMISSIONER OF CUSTOMS, ANNEXURE B APPLICATION FORM FOR OBTAINING LETTER OF FACTORY STUFFING PERMISSION. (LOFSP) 1.IEC Details i. IEC Number ii. Date of issue iii. Issuing Authority 2. Applicant Firm Details i. Name ii. Address (Registered Office in case of Companies and Head Office in case of Others) iii. Address of Factory where goods are manufactured iv. Telephone Nos. v. Email address (for correspondence with JNCH) 3. Details of Proprietor/ Partners/ Directors of the applicant firm i. Name ii. Fathers Name iii. Residential Address iv. Telephone 4. Nature of Concern (please tick) i. Government Undertaking ii. Public Limited Company iii. Private Limited Company iv. Proprietorship v. Partnership vi. Others 5. Type of Exporter (please tick) i. Merchant Exporter ii. Manufacturer Exporter iii. Merchant cum manufacturer Exporter iv. Other (please specify) 6. Industrial Registration Details i. SSP/IEM/LOl or IL Registration Number ii. Date of issue iii. Issuing Authority iv. Products for which registered 7. RCMC Details i. RCMC Number ii. Date of issue iii. Issuing Authority iv. Valid upto v. Products for which registered 8. Status House Details i. One/Two/Three/Four/Five Star ii. Certificate Number iii. Date of Issue iv. Issuing Authority v. Validity Date 9. PAN and Bank Details i. Pan Number ii. Issuing Authority iii. Name of the Bank iv. Account No. v. Type of Account 10. Excise Details i. Excise Registration Number ii. Issuing Authority iii. Range Address (Phone Number) iv. Division Address (Phone Number) v. Commissionerate Address. (Phone Number) 11. VAT Details i. VAT Registration Number ii. Issuing Authority 12. Turnover Details for the preceding three licensing years FY Annual Domestic Turnover (Rs. Lakhs) Annual Export Turnover ( Rs. Lakhs) (enclose copies of Balance sheets is for three years) 13. Factory Stuffing Premises Details i. Name ii. Address ( including Survey No ) iii. Storage / handing capacity iv. Facilities in the premises ( Attach a separate sheet) v. Telephone No of CEO/GM vi. email address vii. Details of directs of the stuffing premises 14. Details of goods for which permission is sought i. Nature and description of export goods ii. Scheme of export iii. RITC Code Nos. (Attach a separate sheet, if required) iv. Nature of packing material used in the export of goods 15. CHA details i. Name of the CHA ii. Address iii CHA Licence No. iii. Name of the Directors / CEOs iv. Telephone Numbers of Directors / CEOs /G.M. v. email address of CHA 16. Please provide details of proceedings initiated under Customs / Excise / Service Tax , if any for past three years. Place Date Signature of the Applicant Name Designation Official Address Residential Address Email Address Telephone No. Mobile No. DECLARATION / UNDERTAKING 1. I / We hereby declare that the particulars and the statements made in this application are true and correct t the best of my / our knowledge and belief and nothing has been concealed or withheld therefrom. 2. I / We fully understand that any information furnished in the application if found incorrect or false will render me / us liable for any penal action or other consequences as may be prescribed in law or otherwise warranted. 3.I / We hereby certify that the firm / Company for whom the application has been made has not been penalized under Customs Act/Allied Acts. 4. I hereby certify that I am authorized to verify and sign this declaration in terms of Power of Attorney vested in me by the Firm / company. Place Date Signature of the Applicant Name Designation Official Address Residential Address Telephone No. Mobile No.