DGFT Backtracks on New System of Pre-shipment Inspection of Metal Scrap,
Old System to Continue “Till Further Orders”
-Arun
Goyal-
The DGFT while unveiling the
FTP 2015-2020 emphatically said at Vigyan Bhavan on 1st April,
2015-2020 that there won’t be any changes to the new FTP released and there
will be only a mid-term review after two-and-half-years. Within a week of this
announcement, the DGFT amended the new FTP Hand Book of Procedures relating to
Metal Scrap import pre-shipment inspection certificate (PSIC) to keep in
abeyance the provisions of para 2.55 and 2.56 of
Handbook of Procedures, 2015-20 (which came into effect from 1.4.2015) till
further orders. Accordingly, the procedure for issue of
Pre-Shipment Inspection Certificate (PSIC), as laid down in para
2.32.2A and 2.32.2B of Handbook of Procedure Vol. I 2009-14, would
remain in effect, till “further orders”.
We understand that the DGFT
suspended the new system which requires videos of all containers with the date
stamped detail of the inspectors in the backdrop of the material. The Indian
importer was advised to be a part of the videography in the new system.
The requirement for
videography followed complaints from Customs that the Inspection Certificates
were being issued in bulk by agents in India with fabricated physical
inspection reports based on mere photographs. There were also allegations that
forged certificates were being submitted to customs by unscrupulous importers.
The new system did raise
transaction costs and administrative burden on DGFT whose servers could not
handle the massive data generated by the video clips of each and every
container. ABS News Service understands that snapshots and stills will
substitute to videos in revised system under preparation.
There are also complaints that
unnecessary detail like passports of each inspectors were being asked for in
the application form for Agency approval in the new system. It was felt that
the approved agency is responsible for the antecedents of the inspectors, micromanagement from DGFT will serve little
purpose.
DGFT is moving towards a
modern system of inspection with provision for roaming inspectors picking up
scrap at competitive prices for the Indian market with portable inspection
devices. This will take time and there will be teething problems during the
transition period.
DGFT Notification Text given below
Subject: Keeping in abeyance the provisions of para 2.55 and 2.56 of Handbook of Procedures, 2015-20.
05-PN(RE) In exercise of powers conferred under
10.04.2015 paragraph 2.04 of the Foreign
Trade Policy
(DGFT) 2015-2020, in order to
facilitate transitional
arrangements, the
Director General of Foreign
Trade hereby keeps in abeyance the provisions of para 2.55 and 2.56 of Handbook of Procedures, 2015-20
(which came into effect from 1.4.2015) till further orders. Accordingly,
the procedure for issue of Pre-Shipment Inspection Certificate (PSIC), as laid
down in para 2.32.2A and 2.32.2B of Handbook of
Procedure Vol. I 2009-14, would remain in effect, till further orders.
Effect of Public Notice
In order to facilitate
transitional arrangements, the provisions of para
2.55 and 2.56 of Handbook of Procedures, 2015-20 are kept in abeyance till
further orders and the procedure for issue of PSIC will be regulated as per procedure
laid down in para 2.32.2A and 2.32.2B of Handbook of
Procedure Vol.I, 2009-14, till further orders.