Please give Specific Description in Export Shipping Bill, Generic Description not Acceptable, Says JNPT Customs

The following Public Notice was issued by the Commissioner of Customs (Export) Jawaharlal Nehru Customs House on 5th May 2011.

[Customs Public Notice No. 75 dated 5th May 2011]

Subject: Mention of correct description in the Shipping Bill.

Attention is invited to Public Notice no.42/2010 dated 07-04-2010 issued by the Chief Commissioner’s Office Mumbai Zone-II regarding information to be furnished by Importers/Exporters for assessment purposes.

2.   One of the essential requirement for ensuring correct classification and valuation of goods is the quality of data furnished by the importers and exporters. The declared description should be accurate, specific and complete.

3.   In spite of the issuance of the said Public Notice, it has been observed that in number of cases specially in the case of export of fabrics, the data quality is very poor. Some of the illustrations are given below:

i)    It has been noticed that exporters/CHAs simply reproduce the relevant entry from Drawback Schedule or DEPB Schedule. For example generic entry such as “DYED & OR PRINTED FABRIC MADE FROM 100% PFY/TEX YARN W OR W/O EMBD. & W OR W/O MET YARN DYED & OR PRINTED”, is being mentioned in the Shipping Bill and even in the invoices. From the said generic description it is not possible to identify whether the exported fabric is only dyed or printed or with embroidery or without embroidery. This results in increased examination and raising objection leading in delay in clearance of consignment for export. Number of times, the exporters claim EPCG benefit also but in the absence of specific description it becomes difficult to verify whether the exported goods comply with the requirement of EPCG Licence, like against import of Embroidery Machines whether export of embroidered fabric has been made or not.

ii)    Normally, the value of fabric depends upon GSM of fabric. It is also a common trade practice to purchase or sale of fabric based upon GSM. However, it has been noticed that in most of the cases, the GSM is not declared in the invoice and Shipping Bills.

iii)   It has also been noticed that even though different types of fabric (different GSM, with embrodiery,without embroidery, printed or non printed) is being exported in one invoice but an uniform price per sq. yard is being declared for all such fabric cases. In such cases, officers find difficult to verify the declared value.

iv)   In number of cases, exported goods is declared as embroidered fabric. However, on examination it is found that part of the fabric is not embroidered. This has been noticed specially in cases where a set consisting of salwar, kameez and dupatta is being exported where one of the fabric is not embroidered.

4.   In view of the above mentioned issues, it has been decided that in order to improve the data quality and to ensure determination of correct value and speedy clearances, all Exporters and CHAs are advised to follow the below mentioned guidelines in case of export of fabrics.

(i)   Instead of generic description, the specific and clear description must be given in the Invoice and Shipping Bills. For example “Printed polyester fabric without embroidery”, “Polyester fabric with embroidery” “15% Polyester, 35% Viscose Suiting fabric” etc. should be mentioned, as the case may be. Further, when specific description is given , there is no need to reproduce the generic description as per Drawback/DEPB schedule. The office of DGFT, Mumbai has also clarified that if specific description without generic description is given, there would not be any difficulty in issue of DEPB or other export incentives.

(ii)  GSM of each type of fabrics should be declared.

(iii)  If there are different type of fabric in a consignment, then except for embroidered fabric, the quantity and value of each type of fabric should be declared separately. However if a set of fabric like Salwar, Kameez and dupatta is being exported, in that case a combined value for full set may be declared.

(iv) Quantity of embroided and non-embroided fabrics should also be declared separately.

(v)  For the purpose of claiming drawback or DEPB, relevant RITC/Drawback Sl.No./DEPB Sl.No. shall also be given.

5.   Similarly, for the DEPB/Drawback entries wherever more than one type of material/process is given, like “HDPE/PP beauty case/suit case with or without aluminium frame ...-(entry No.33E of Product code 63”) the exact description of items being exported may be given. Like wise for “made-ups”, the exact description like bedsheet or pillow/cover alongwith composition of constituent material etc., may be given.

6.   It is Clarified that the requirement of GSM would not be applicable for garments. But specific description like Shorts, Trousers,Ladies Gown,Children Frock etc should be given alongwith composition of fabric used therein.

7.   During assessment and examination the officer would ensure that accurate, specific and complete description is being given for the correct classification, valuation and assessment of goods.

8.   However in case of genuine difficulties in following the above mentioned guidelines, the AC/DC may accept the declared description.

9.   This Public Notice is issued after considering the views given by Exporters/CHA Association on the draft Public Notice issued on 03.12.2010. However Any difficulty in following the above mentioned instructions may be brought to the notice of the undersigned.

10.  This P N would be applicable for all goods which would be brought in CFS from 16.05.2011.

F. NoS/12-Gen-160/2011 AM (X)