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POLICY CIRCULAR NO. 25 (RE-2003)/2002-2007 Dated
: 28 - 1 - 2004
To
All Licensing Authorities
All Commissioners of Customs
Subject : Condition 8 of Chapter I A (General conditions of import) of the
ITC (HS) Classification of Export and Import items.
I. Several representations have been received regarding the
transaction cost involved in 100% sampling of edible / food products under the
PFA Act in terms of Condition 8 of Chapter I A (General conditions of import) of
the ITC (HS) Classification of Export and Import items. In consultation with
the Ministry of Health and Family Welfare the procedure for sampling has been
modified and is detailed below :
(1) In respect of consignments of high risk food items (list to be
notified separately) and perishable items like fruits, vegetables, meat, fish,
cheese, etc., samples would be drawn and tested as per the instructions
contained in the Customs Circular No. 58/2001–Cus, dated 25.10.2001.
(2) In respect of food items not covered under (1) above, the
following procedure would be adopted:
(a) Samples would be drawn from the first five consecutive consignments of each
food item, imported by an individual importer and referred to Port Health
officers (PHOs) for testing to ascertain the quality and health safety standards
of the consignments.
(b) In the event of the samples conforming to the prescribed standards, the
Customs would switch to a system of checking 5% - 20% of the consignments of
these food items on a random basis, for checking conformity to the prescribed
standards;
(c) The selection of food items for random checking and testing would be done
by the Customs taking into consideration factors like the nature of the food
products, its source of origin as well as track record of the importers.
(d) In case, a sample drawn from a food item in a particular consignment fails
to meet the prescribed standards, the Customs would place the import of the said
food item on alert, discontinue random checking for import of such food items
and revert to the procedure of compulsory checking. The system of random
sampling for import of such food items would be restored only if the test
results of the samples drawn from the 5 consecutive consignments re-establish
that the food items are in conformity with the prescribed standards.
(e) The Customs would also develop and maintain a database regarding the food
items imported, its importers and the test results, which would be periodically
shared with DOC and Ministry of Health and Family Welfare.
II. It is further clarified that the condition on import of edible / food
products as per Condition No. 8 of the Chapter I A (General conditions of
import), of ITC (HS) Classification of Export and Import items shall not be
applicable on imports made under Annual Advance Licenses and Advance Licenses
for physical exports issued with A.U. condition. Similarly, this condition will
not be applicable on imports made by 100% EOUs and units in EPZ / SEZ. However,
the aforementioned condition shall be applicable when the 100% EOUs and units in
EPZ / SEZ, effect sale / transfer any edible / food products to Domestic Tariff
Area.
This issues with the approval of DGFT.
(Pratima Dikshit)
Joint Director General of Foreign Trade