Self sealing of export containers - Board makes it mandatory - excise shackles are preferable to Customs ones
As per CBEC circular no. 736/52/2003-CX dated 11.08.2003, the facility of self-sealing was extended to all categories of manufacturer-exporters. In spite of this facility being extended to all categories of manufacturer-exporters, it is found that the manufacturers are reluctant to avail the facility. Why?
DDT spoke to an exporter. He said it is simple costing. Each seal by the Central Excise officers involves costs like providing a vehicle for the whole day and other incidental expenditure which may come to about Rs. 3000/- per consignment. The exporters who have tried self sealing in protest against the arrogant Central Excise officers have found that they are pious priests compared to the Customs officers in the ports. The self sealed containers are subject to checks in the Customs Ports, where they are practically ravaged, delayed and cots are multiples of what it would cost to get them sealed by excise officers.
But CBEC is again playing spoilsport. They find that with too many exports, the Central Excise Range staff is always away on export work and they don't have enough time to do the Range work. What is the Range work? Sending reports to the Board on Revenue realised yesterday, likely to be realised tomorrow, Cenvat credit taken on electronic broom sticks during 1994 - 95, percentage of increase in Cenvat credit and consequent fall in revenue with reasons thereof. And things like that.
Board has realised that even those manufacturer-exporters who have the option of self-sealing make request for Central Excise sealing since the percentage of examination at the port of export of such containers is substantially reduced. However Board notes that as per its Circular No. 6/2002-Cus dated 23.01.2002, where exports are against free shipping bills, no opening/examination of containers is to be done at the port of export, except where there is intelligence/information about any concealment, mis-declaration, etc
So, now Board has decided that henceforth in case of exports under free Shipping Bill, i.e., Shipping Bills wherein no export benefits are being sought, the manufacturer-exporter shall mandatorily resort to self-sealing of containers. The central excise officers shall not attend to the request of stuffing and sealing of export containers in their presence, in case the exports are under free shipping bills. Further, with a view to ensure safety and security of the export consignment, all such containers should be sealed with tamper proof one time bottle seals as stipulated vide Board's Circular No. 01/2006-Cus. dated 02.01.2006.
CBEC CIRCULAR NO. 860/18/2007-Cx., Dated: November 22, 2007