Import of waste paper – DGFT says Customs will carry out more physical examination
AS reported in DDT-1085–06-04-2009, there is a conflict of interests - while the import is free as per FTP, there is a condition prescribed under the Hazardous Material Rules.
Now DGFT clarifies that the applications submitted to the M/o Environment & Forests for NOC are to be accompanied by the certificate of an independent pre-shipment inspection agency for consignments which are shipped after 25.4.2009.
To ensure that no unwanted material is imported under the garb of waste paper during this interim period (till the consignments are received along with pre-shipment inspection certificate), Customs would carry out a higher percentage physical examination of imported cargo, than normally prescribed by them under the rules. The consignments shipped on or after 25.4.2009, which do not have the requisite pre-shipment inspection certificate, shall not be allowed to be unloaded at the Indian ports.
The DGFT circular says the Customs WOULD carry out a higher percentage physical examination. Does it mean the Customs will examine from today or they should have done it long ago? ‘ Would' is perhaps the past tense of ‘ will'. Now will the Customs, or would the customs examine?
And who is the DGFT to decide that Customs would examine, not that Customs officers will be unwilling to do examination? And how do you examine containers of waste paper in a port or Customs Station?
There was a case sometime back when a sample of imported waste paper contained very good quality writing paper. The importer stated that he had ordered for waste paper only to be made into pulp in his paper factory and what the Customs thought was good quality paper must have been treated as waste by the foreign supplier. Even in a huge port it was not possible for the Customs to unload all the containers and pick out the good paper. The good Commissioner had a brilliant idea. He ordered that the unloading at the factory end should be under the physical supervision of the Jurisdictional Central Excise superintendent, who was to ensure that the good quality paper is torn into pieces in his presence. Imagine the plight of this superintendent who was depending on this assessee for supply of white papers to his office – even for writing the Show Cause Notices to the same very assessee. And here he was supervising destruction of good quality writing paper.
DGFT Policy Circular No. 82(RE-08)/2004-2009 Dated: April 28, 2009