Procedure for import/export of Gem & Jewellery and other items by 100% EOUs through personal carriage- Reg. - Customs - 101/2003

OFFICE OF THE COMMISSIONER OF CUSTOMS C. R. BUILDING : QUEENS ROAD POST BOX NO 5400, BANGALORE-1 Public Notice No. 101/2003 Dated. 07/08/2003 Sub: Procedure for import/export of Gem Jewellery and other items by 100% EOUs through personal carriage- Reg. 1. Attention of trade is invited to Paras 6.23/6.24 of the Export and Import Policy and Para 6.24 of the Handbook of Procedures, 2002-07, as in force prior to 01-04-2003, in terms of which export/import of gem and jewellery items by the 100% EOUs was allowed by way of personal carriage. The procedure in this regard had been specified by Public Notice No,71/2001-CUS dated: 15-06-2001 issued by this Office from file C.No. VIII/48/297/2001 Cus. Tech. 2. The aforesaid provisions of the import policy and procedure have since been modified and the facility which was earlier restricted to gem and jewellery items only, has now been extended to all goods. In this regard, Para 6.24 of the Exim Policy, as revised with effect from 01-04-2003, is reproduced below: Personal Carriage of Import/Export Parcels including through Foreign bound passengers: Import/Export through personal carriage of gem and jewellery items may be undertaken as per the procedure prescribed by Customs. The export proceeds shall, however, be realized through normal banking channel. Import/export through personal carriage for units, other than gem and Jewellery units, shall be allowed provided the goods arc not in commercial quantity . 3. Similarly, tile relevant extracts from Appcndix-XIV-1 issued under Para 6.1 or the Handbook of Procedures arc also reproduced below for ready reference: Personal carriage of gems and jewellery for Export promotion tours: 19.2 Personal carriage or gold/silver/platinum jewellery, cut and polished diamonds, precious, semi-precious stones, beads and articles as samples up to US $ 1,00,00 for export promotion tours and temporary display/sale abroad by EOUs is also permitted with the approval of the Development Commissioner, subject lo the Following conditions: (a) EOU shall bring back the goods or repatriate the sale proceeds within 45 days from the date of departure through normal banking channel. (b) The unit shall declare personal carriage of such samples to the Customs while leaving the country and obtain necessary endorsement. Personal carriage of import/export parcels including through foreign bound passengers:- 21.1 Import/export through personal carriage of gem and jewellery items may be undertaken as per the procedure prescribed by Customs. The export proceeds shall, however, be realized through normal banking channel. Import/export through personal carriage units, other than gem and jewellery units, shall be allowed, provided the goods are not in commercial quantity. 21.2 For personal carriage of jewellery by foreign bound passenger, the following documents shall be submitted by HOU units as proof of exports. (a) Copy of the shipping bill filed by the EOUs ; (b) A copy of the Currency Declaration form filed by the Foreign buyer with the Customs at the time of arrival; and (c) Foreign Exchange Realisation/Encashment Certificate from the Bank. 21.3 In addition to this. Personal Carriage by foreign bound passenger on document against Acceptance (DA)/Cash On Delivery (CDO) basis is also allowed. The EOUs will have to furnish the following documents as a proof of exports:- (a) Copy of Shipping Bill; (b) Bank Certificate of Export and Realisation. 21.4 The procedure for personal carriage of import parcels will be the same for import of goods by airfreight except that the parcels shall be brought to the Customs by the EOUs/foreign national for examination and release. Instructions issued by the Customs authorities in this regard should be followed as mutatis mutandis . 4. The Central Board of Excise and Customs have issued Circular No.29/2003 dated: 03.04.2003 explaining the salient features of the Exim policy and the corresponding changes in the Customs/Central Excise Notifications. Para 7 (viii) (b) of the said Circular is reproduced below for reference. As regards export/import through personal carriage by air, presently this facility is limited to gems and jewellery goods only. Now, it has been decided to allow this facility to all goods provided they are not in commercial quantities subject to production of procurement certificate and other relevant documents and following the procedure specified by the respective jurisdictional Commissioners of Customs or Central Excise, as the case may be, of the International Airport . 5. In the above background, the procedure for export of gem and jewellery items by personal carriage through Bangalore Airport/Air Cargo Complex is hereby prescribed as under (which will be in supercession of the aforesaid Public Notice No.71/2001 -CLIS dated: 15-06-2001): 1) The exporter shall file in duplicate, a letter with the Deputy Commissioner/Assistant Commissioner (DC/AC') in charge of exports at the Air Cargo Complex enclosing a photocopy of the passport and a photocopy of the air ticket of the intending passenger seeking permission for personal carriage. The authorization from the Chairman/Managing Director/Managing Partner as the case may be, from the exporting company in favour of the said passenger the may be an employee of the company in favor of the said passenger the may be an employee of the company or may be a foreign buyer) authorizing him to export the said goods on behalf of the EOU shall also be filed in original. 2) The said letter shall be processed by the Superintendent in the export section and will be put up to the Assistant Commissioner/Deputy Commissioner for clearance. 3) One copy of the letter giving clearance from the Assistant Commissioner by way of suitable endorsement in the letter itself shall be returned to the exporter. This will act as the permission in principle for personal carriage. 4) The exporter will then file Shipping Bill in 4 copies. Copies of invoice, packing list and GR will also be filed with every copy of the Shipping Bill. In other words there shall be 4 sets (Original i.e. Customs Copy, Duplicate i.e. Airlines copy, triplicate i.e. export promotion copy and quadruplicate i.e., party copy). 5) The shipping Bill will be assessed by the Superintendent, Exports who will give the examination order thereon. 6) The examination will be conducted in the presence of the Assistant Commissioner, by the Superintendent (Examination) and the Jewellery Appraiser (nominated for this purpose from the panel approved by the Customs Department as per the list given by the Jewellers Association. Bangalore) 7) The said jewellery Appraiser will issue the JAC in duplicate (i.e., the Jewellers' Association Certificate) giving particulars of purity/quantity etc., of the items under export. 8) The examination report shall be endorsed on the Shipping Hill and the goods will be sealed with Customs seal. 9) After counter signature in the Shipping Bill by the Assistant Commissioner for clearance at his level, the let export order will be given by the Superintendent (Examination). 10) The SDO (Station Duty Officer from the Airport) will check the seal on the box and will endorse the duplicate shipping bill on the reverse side for allowed for shipment . 11) The goods will then he deposited with the MSIL by the SDO. in the presence of the exporter. The MSIL will endorse the Shipping Bill to this effect. 12) The Original set of the Shipping Bill along with one copy the JAC will be retained by the Customs and the other three sets will be returned to the exporter. 13) On the scheduled travel date, the passenger preferably with another representative of the exporter, will contact the SDO sufficiently in advance of the flight and will hand over the duplicate set of the Shipping Bill to the SDO. The SDO after checking the original passport and original ticket of the passenger will procure the parcel from the MSIL in exchange of the duplicate set of the Shipping Bill which will be handed over to MSIL. 14) The SDO will escort the parcel and passenger to the airport. 15) Upon completion of check-in/security check/other formalities by non-customs agencies, the SDO will hand over the parcel to the passenger as he boards the flight and will make an endorsement to this effect on the duplicate copy of the Shipping Bill carried by the passenger. 16) The duplicate Shipping Bill will be returned back by post to the exporting unit, which will be filed by them with the concerned Range as proof of shipment. 6. In respect of import of gem and jewellery items by personal carriage, the reverse procedure will be followed which will be as under: 1) The passenger on arrival will hand over the gem and jewellery items along with a copy of the invoice and packing list to the SDO (Station duty Officer of customs) at the Airport, who will in the presence of the passenger seal it and will issue a Detention Certificate. The goods will lie handed over by SDO to MSIL under receipt. 2) The importing unit will file Bill of entry at the Air Cargo Complex for clearance of goods along with the usual documents and the Procurement Certificate issued by the Range/Division in terms of CBEC Circular No. 14/9S-CUS. dated 11-03-1998 read with Board's Circular No.84/2001-CUS. dated 21-12-2001. 3) After assessment of documents the papers will be marked for examination. 4) On the strength of the Bill of entry carrying me order of examination, the MSIL, will make the consignment available for examination by the Jewellery Appraiser and the Supdt.(Examination). After examination is over and die examination report has been recorded on the Bill of entry, the bill will be countersigned by the Assistant Commissioner and the Supdt., examination will give the out of charge. 5) The goods will be handed over to the importer by the MSIL. Suitable endorsement will also be made on the Detention Certificate, (both company's copy and department's copy) to the effect that the goods have been handed over to the importer. 6) The other procedures as already being followed in respect of normal import of commercial cargo like debiting of transfer bond, reware housing certificate from the jurisdictional Division/Range, etc., will continue to be followed. 7. In respect of export/import of items other then gem and jewellery by personal carriage, the same procedure as above will apply except that the steps relating to examination by the Jewellery Appraiser will not be required. 8. It is clarified that in terms of the policy, the facility of personal carriage (both import and export) of all items oilier than gem and jewellery is available provided they are not in commercial quantity. The term commercial quantity is not defined anywhere. It is therefore decided that for the purpose of Bangalore Customs Commissionerate, quantity in excess of whatever is permissible as cabin baggage by the concerned airline, and/or exceeding Rs-20 Lakhs in value will he treated as commercial quantity and will not be allowed by the mode of personal carriage. It is further clarified that for the present this facility would be limited to personal carriage of such items as cabin baggage and would not be allowed as checked - in baggage. 9. It is also clarified that this Public Notice is only for (be procedures required to be followed for effecting import/ex per I through personal carriage and is without prejudice to the applicability of various restrictions in force on import/export of specified items in terms of Customs Act/Import and Export policy. 10. All Trade Associations are requested to bring the contents of this Public Notice to the notice of their members and trade at large. Difficulties encountered, if any, in implementations of this Public Notice may please be brought to the notice of the undersigned immediately. Sd/- (P.R. CHANDRASEKHARAN) Commissioner of Customs, Bangalore