Import of metal scrap – submission of copy of contract between buyer and seller – Commercially sensitive information leaked
As per paragraph 2.32 of HBPv1, import of metal scrap in shredded/unshredded form is subject to the condition that the importer shall submit a copy of contract between the importer and exporter stipulating that the consignment does not contain any type of arms, ammunitions, mines, shells, cartridges, radioactive contaminated, or any other explosive material in any form either used or otherwise.
Representations have been received by DGFT stating that, in case they submit the original sales contract stipulating the above condition to Customs, there are chances of their commercially sensitive information being divulged.
The kind DGFT has clarified that import contract shall also include a separate contract (other than the original sales contract) between importer and exporter stating the above cited provisions.
This is really strange – Importers not wanting to share their sales contracts with Customs and the DGFT graciously agreeing. Even now, what prevents the Customs from asking for the Original Sales Contract? And in any case this is a SECURITY matter and needs to be treated differently.
DGFT Policy Circular No. 96 (RE- 08 ) 2004-09 Dated: June 24, 2009