Subject : Pre-shipment inspection of silk goods - Laying down a revised procedure - Reg.

    I am directed to invite your kind attention on the above subject.  As you are aware, the present system of pre-shipment inspection of certain silk goods entails submission of an application with a sample swatch to the CSB Certification Centre by the exporters.  This is followed by testing of the sample swatch by CSB to the determine the composition and silk contents.  Then an inspection at the exporters premises of the consignment is conducted.  The inspection is on a random basis with a selection of 5% of the parcels and detailed examination of the parcels selected.  A Customs Endorsement and a Pre-shipment Inspection Certificate are issued after the inspection, subsequent to which the exporter moves the goods to the Customs Warehouse for further processing including random verification by Custom.  The Customs endorsement given by the CSB forms the basis of entries in DEEC Book.

2.  The matter has been examined in consultation with the Ministry of Textiles, and it has been felt that the above procedure can be simplified by allowing the CSB to carry out its inspection at the Customs Point itself thereby avoiding two levels of inspection, first by the CSB and second by the Customs.  Accordingly, a revised procedure has been worked out which will be applicable to all silk exports other than silk waste not carded /combed, carpets and hand woven fabrics exported to EEC countries.  In respect of excluded categories of items, the old system of pre-inspection by CSB will continue.

3.  The new system / revised procedure will operate in all places where Customs facilities and CSB Certification Centers are both located.  In places where there is a CSB Certification Centres but no Custom Office, the exporter will have an option either to take the goods to any Custom point where a CSB certification facility exists, or in the alternative, he may opt for existing system of pre-shipment inspection by CSB.

4.  Under the revised procedure, the exporters will bring the consignments of silk goods directly to the Custom Point and for each consignment they will submit applications for pre-shipment inspection in the prescribed formats of CSB.  The applications will be in duplicate accompanied by two copies of relevant export invoices, two packaging lists alongwith a sample swatch of dimensions 6" x 6" representating each item/yarn constituents in the consignment.

5.  Inspection staff of the CSB Certification Centre will be stationed at the Customs Points.  On receipt of the consignments with documents and sample swatches, the CSB inspectors will check the correctness of the HS code in the application and make necessary corrections under his authentication.  The Customs will, using an appropriate random number generation system, identify certain consignments for check by the CSB Inspector.  The CSB inspector will check the contents of the parcels          by visual and physical test for fibre purity,        constituents, construction               particulars with the sample swatch attached to the corresponding application and the description declared by the exporters.  In case the items in the parcels              conform to sample swatch and description in the application on a prim                examination, the CSB inspector will issue and endorsement to that effect to the               on the invoice.  However, in the event of a mismatch, the CSB inspector will inform to the Customs in writing for appropriate action by Customs.  For spee                    of export goods, CSB will conduct such examination and submit                   the same day.

6.  In the case of parcels which have been checked and cleared for export, there will be an analysis of the corresponding sample swatch in the laboratory.  Wherever variations in the fibre compe                      are detected on analysis in the lab against the declaration, the CSB will               the same to the Customs in writing for taking appropriate action against the exporter.  Entries in the DEEC book will be done by the customs after CSB makes the detailed Customs Endorsement/Inspection Certificate available.

7.  In laying down the above procedure                     objective is to avoid two levels of inspection, first by the CSB and secom                             Customs.  Thus wherever parcels have been visually checked by the CSB Inspection Staff the same will not ordinarily be subject to second inspection by Customs.  However, the Customs may independently check 5% of the consignments in the same manner as applicable to Self-Certification Units under Ministry Circular F.No. 450/126/98 CUs. IV dated 8.12.98 (circular No.90/98-Cus.IV).  As explained therein, only one out of 5 containers would be opened for visual inspection of the content.  Thereafter from each opened container minimum of two                 and maximum of 5% packages my be examined.  The Commissioner after experience of one year may reduce this examination with orders in writing separately for each exporter.

8.  Difficulties if any, in the implementation of the procedure may kindly be brought to the notice of the Board.  The procedure may be brought to the notice of the trade as well as the Department Officers by way of issued suitable Public Notice and Standing Orders.