Customs Circular No- 19/2011 dated 15.04.2011
Compliance of DGFT Notification No. 44 (RE-2000)/1997-2002 dated 24.11.2000 -
Labeling of goods in bond prior to Ex-bond clearance - regarding.
Representations have been received about difficulties being faced by importers
in carrying out labeling of certain commodities which are small sized and
sensitive to heat and dust in CFSs prior to clearance of the same under the
provisions of DGFT Notification No.44 (RE-2000)/1997-2002 dated 24.11.2000. The
problem is further compounded due to shortage of space in various CFSs. It has
been represented that importers should be allowed to carry out the labeling
activities as mandated under DGFT Notification No.44 (RE-2000)/1997-2002 dated
24.11.2000 in the warehouse before the clearance of the goods by the proper
officer of Customs for home consumption.
2. DGFT Notification No.44 (RE-2000)/1997-2002 dated 24.11.2000 provides for
labeling of the goods imported into India which are covered by the provisions of
'Standards of Weights & Measures (Packaged Commodities) Rules, 1977'. This
Notification mandates that compliance of labeling conditions have to be ensured
before the import consignment of such commodities are cleared by Customs for
home consumption.
3. The matter has been examined in the Board. In order to redress the issue and
to remove the difficulties faced by importers on account of space constraints at
CFSs/ Port / ICDs and the nature of goods, etc., it has been decided to extend
the facility of labeling on imported goods in Bonded warehouses subject to
certain procedural conditions.
4. In this regard, it is clarified that the importers should first ascertain
that for such marking / labeling facility, space, is available in warehouse
prior to exercising this option. In such cases, importers may file Warehousing
Bill of Entry. The assessing group will give suitable directions to Dock staff
to allow bonding of the goods without labeling and with endorsement on the
Warehousing Bill of Entry that verification of compliance of DGFT Notification
No.44 (RE-2000)/1997-2002 is to be done prior to de-bonding by Bond
Superintendent. The goods will be labeled in the bonded premises and compliance
of DGFT Notification No.44 (RE-2000)/1997-2002 will be ensured at the time of
ex-bonding of the goods, by the Bond Officer, by examining the goods again and
endorsing the Examination Report on the Ex-bond Bill of Entry. It is provided
that 100% examination at the time of Ex-bond clearance of goods should be done
to ensure compliance of DGFT Notification No. 44 (RE-2000)/1997-2002. The
Examination Report can be endorsed on hard copy of Ex-bond Bill of Entry where
EDI facility is not extended, and on hard copy as well as EDI system where EDI
facility is extended to Bonded Warehouses. It is also clarified that this
facility is applicable only to goods that cannot be easily labeled in ports /
CFS, having regard to their size and other factors such as sensitivity to
temperature and dust.
5. Further, as the activity of labeling and re-labeling including declaration of
Retail Sale Price (RSP) on goods amounts to manufacture in terms of section 2(f)
of the Central Excise Act, 1944, if the same is carried out on goods warehoused,
it would be considered as manufacturing operations having been undertaken in
bond / warehouse and accordingly, the provisions of 'Manufacture and Other
Operations in Warehouse Regulations, 1966' would apply on those goods. Importers
can, therefore, avail the facility of carrying out labeling in warehouse after
following above procedure and the provisions of 'Manufacture and Other
Operations in Warehouse Regulations, 1966'.
6. Suitable trade notice / standing order may be issued to guide the trade and
industry in this regard.
7. Difficulty faced, if any, in implementation of these instructions may be
brought to the notice of the Board immediately.
F.No.450/29/2011-Cus-IV
Yours faithfully,
( R. P. Singh )
Director (Customs)