SOP for Endorsement of KP Certificates
[DGFT
Notification No. 34/2015-2020-DGFT dated 28 September 2020]
The DGFT said endorsement
of Kimberley Process (KP) certificates issued by valid issuing authority in the
case of errors of minor nature such as typographical can
be allowed subject to endorsement by the Gem and Jewellery
Export Promotion Council as per the standard operating procedure.
Further, it said that
re-export of imported rough diamonds, if so ordered by customs authorities, can
be allowed subject to the technical KP certificate issued by the council.
KP is a joint initiative
of the governments, industry and civil societies to stem flow of 'conflict diamonds'
- the rough diamonds used by rebel movements to finance wars against legitimate
governments.
Effect of
this Notification: Endorsement
of Kimberley Process (KP) Certificates issued by valid Kimberley Process (KP) Certificate
Issuing Authority in the case of errors of minor nature i.e
typographical errors or errors apparent on the face of records can be allowed
subject to endorsement by Gem & Jewellery EPC as
per the Standard Operating Procedure (SOP) which is annexed to this
Notification. Further
re-export of imported rough diamonds, if so ordered by Customs Authorities can
be allowed subject to the Technical Kimberley Process Certificate issued by the
Gem & Jewellery Export Promotion Council (GJEPC).
Subject: Amendment in the Import Policy
Condition No. 3 of Chapter 71 of ITC (HS)-2017, Schedule- I (Import Policy)
S.O. 3369(E).—ln exercise of powers conferred by Section 3 of the
Foreign Trade (Development and Regulation) Act, 1992 (No. 22 of 1992) read with
Para 1.02 and 2.01 of the Foreign Trade Policy (FTP) 2015-2020, the Central
Government hereby amends the Import Policy Condition No. 3 of Chapter 71 of ITC
(HS) 2017, Schedule-I (Import Policy).
2. Existing Policy Condition No. 3:
“(3) No import of rough diamonds shall be permitted unless accompanied
by Kimberley Process (KP) Certificate as specified by Gem & Jewellery EPC”
Amended Policy Condition No. 3:
“(3) Import of rough diamonds shall be permitted only if accompanied by
Kimberley Process (KP) Certificate as specified by Gem & Jewellery EPC:
Provided that in cases of errors of minor nature i.e. typographical
errors or errors apparent on the face of records, the Gem & Jewellery EPC may on the basis of electronic or documentary
instructions of the Kimberley Process (KP) Certificate Issuing Authority
endorse such instructions to the Kimberley Process (KP) Certificate
accompanying the rough diamonds as per the Standard Operating Procedure (SOP)
which is annexed to this Notification. Such endorsed Kimberley Process (KP)
Certificate shall be treated as valid when produced along with the duly
endorsed copies of the electronic or documentary instructions.
Provided further that the Gem & Jewellery
EPC may, at the request of the Kimberley Process (KP) Certificate Issuing Authority
which has issued the Kimberley Process (KP) Certificate accompanying the
imported rough diamonds, issue a Technical Kimberley Process (KP) Certificate, as per
the Standard Operating Procedure (SOP), for re-export of such rough
diamonds, in cases where the imported rough diamonds have not left Customs
control and re-export is ordered by Customs authorities.”
3. This amended Policy Condition shall also be applicable to pending
imports of rough diamonds.
This issues with the approval of Minister of Commerce & Industry.
[F. No. 01/89/180/36/AM-11/PC-2A/Part-II/e-1717]
Annexure
Standard Operating Procedure
1. The Standard Operating Procedure (SOP) as outlined below in para
(iii) is to implement the endorsement of the Kimberley Process (KP) Certificate
and issuance of a Technical Kimberley Process (KP) Certificate as provided in
the Import Policy Condition No. 3 of Chapter 71 of ITC (HS) 2017, Schedule-I
(Import Policy).
2. The SOP is for coverage of errors of minor nature i.e. typographical
errors or errors apparent on the face of records. This will not cover the
cases of attempted unauthorized imports involving substantive violations
warranting action as per the Customs Act, 1962.
3. Standard Operating Procedure to be followed:
a. Gem & Jewellery Export Promotion
Council (GJEPC) through authorised signatory will
inform the KP Certificate Issuing authority electronically of the exporting
country indicating the error marking a copy to the local Customs authority.
b. Simultaneously, Indian importer will be informed through CHA /
directly about the same and the request letter with undertaking will be taken
from the importer indicating the discrepancy and confirming the veracity of the
shipment
c. Upon receipt of letter cum undertaking from the importing party and
confirmation from the KP Certificate issuing authority, GJEPC will ask for
certified amendment copy from the KP issuing authority/fresh KP certificate
d. The KP Certificate issuing authority can endorse such instructions
/changes on the copy of KP Certificate issued by them and re-stamp it OR send
the amendment in e-mail based on their process or issue a fresh KP certificate.
E-mail communication will be endorsed by GJEPC.
e. GJEPC will endorse the KP Certificates received from KP issuing
authority indicating the changes and same to be uploaded on E-Sanchit portal.
f. Customs will be submitted the copy of
mail/communication of the KP issuing authority received from the “authorised e-mail ID of exporting country” and duly
endorsed by GJEPC.
g. In cases of re-export authorized by Customs, such parcels may be
re-exported to the country accompanied by Technical Certificates to be issued
by GJEPC.
h. General Notes:
i. The mode of communication with KP Import / Export
authority will be by mail communication except in the cases wherein formal hard
copy communication/ documentary evidence is desired by any of the countries.
ii. All communication with CHA / Party must be recorded in hard copy or
e mail.
iii. In case of issues when solution to any situation is not derived
between Customs / GJEPC or KP Authorities, Customs may permit re-export of
shipment upon request made by the party within specific timelines.
iv. GJEPC will issue Technical certificate for such cases when the
shipment and details on KP Certificates is mismatched and/or shipment is opened
for valuation or identification purpose and to be re-exported, if ordered by
Customs Authorities.
v. For re-export of shipments which are not opened for any purpose and
supported with valid KP Certificate issued by Export authority, Technical
Certificate may not be required to be issued by GJEPC, provided there is no
offence subsisting under the Customs Act, 1962 or any other law for the time
being in force, in relation to the imported goods. Similarly, in case of
shipment returned to India without opening of the same by importing country and
supported with KP certificate issued by GJEPC, technical certificate may not be
required, provided there is no offence subsisting under the Customs Act, 1962
or any other law for the time being in force, in relation to the imported
goods.
4. Additional guidelines on specific instances are as follows:
|
S.No. |
Nature
of Instance |
Process
/ Steps to be followed |
|
1 |
Difference
in HS Classification mentioned on the KP Certificate and opinion of the
valuation panel member, if the same classification is proved to be conforming
to WCO rules |
The
amendment can be allowed if the importer accepts such change in the final
assessment of Bill of Entry. GJEPC after receiving instruction from KP
Certificate issuing authority in electronic or documentary form may endorse
the amendment in the KP Certificate. |
|
2 |
Short
shipment received under one KP Certificate and noticed before filing of Bill
of Entry. Balance goods shipped under another KPC. |
If both
the shipments arrive at the same port for examination by the Customs parallely, then GJEPC may endorse amendment in KP
Certificate after obtaining instructions from KP Certificate issuing
authority in electronic or documentary form. |
|
3 |
Marginal
difference in the Carat & US$ value mentioned on invoice & KPC (eg. Shipment for difference of 0.01 cents held up). |
i. Amendment may be considered
if import documents support such errors. ii.
GJEPC endorses the KP Certificate after tallying the same with invoice,
packing list and airway bill. iii. In
case any incorrect data is noticed, GJEPC can endorse amendment in KPC after
obtaining instructions from KPC issuing authority in electronic or
documentary form. |
|
4 |
Switching
of two KP Certificates and attached to the wrong packages destined for India |
If both
such parcels are exported by the same exporting entity and are at the same
port in India and the same officer can verify both the original KPCs, then
Customs may consider allowing exchange of KPC on the basis of
consultation/recommendation from GJEPC with due communication from the KPC
issuing authority of exporting country. |
|
5 |
Short
shipment noticed at the time of examination after filing of Bill of Entry |
In such
cases, GJEPC after receiving instructions from KPC issuing authority in
electronic or documentary form may issue Technical Certificate for re-export
if such re-export is allowed by Customs. |
|
6 |
Wrong
shipment meant for another country received due to switching of whole parcels
accompanies by KPC |
For
such cases, GJEPC will issue Technical certificate for re-export, to be
allowed by Customs |
|
7 |
Wrong
KP Certificate (meant for another country) sent with the shipment or placed
inside the shipment meant for India |
i. For re-export allowed by
Customs, GJEPC will issue Technical Certificate ii. In
genuine cases supported by communication from KPC Authority of exporting
country, such situation can be |