Procedure to be followed for granting of Factory Stuffing Permission (FSP) to manufacturer-exporters, merchant-exporters and first time exporters – reg. - Customs - 09/2014

OFFICE OF THE COMMISSIONER OF CUSTOMS CUSTOM HOUSE : COCHIN- 682009 F.No. S 32A/25/2014-Gr VII-Cus Dated: 01.04.2014 PUBLIC NOTICE No. 09/2014 Sub: Procedure to be followed for granting of Factory Stuffing Permission (FSP) to manufacturer-exporters, merchant-exporters and first time exporters reg. Attention of the Exporters, Customs Brokers and the Public is invited to the Public Notice No. 161/2001 issued by this Customs House whereby the processing of Factory Stuffing Applications/requests received from the Exporting Communities are regulated. However, the procedures of the said Public Notice call for a revisit in the context of CBEC Circular No. 20/2010-Cus., dated 22-7-2010 and Circular No. 860/18/2007-CX dated 22.11.2007. Accordingly it has been decided to make the following changes in the procedure for grant of factory stuffing permission as outlined below. In terms of Board s Circular No. 860/18/2007-CX dated 22.11.2007 self-sealing of export goods has been made mandatory for the manufacturer-exporters (whether status holder or not) who export such goods under free shipping bills. Therefore, FSP will not be granted to the manufacturer-exporters exporting goods under free shipping Bills. However, they can opt for factory stuffing of export goods under export incentive schemes and permission will be given scheme-wise. In case of non-status holder manufacturer exporters operating under any of export incentive schemes ie. In case of exports other than under free shipping bills the FSP will be granted only on receipt of prior verification report regarding the genuineness of the existence and functioning of the units and the No Objection Certificate from the concerned jurisdictional Central Excise Authorities regarding deputing of officers for supervision the export stuffing. Similarly, in case of non-status holders merchant exporter the FSP will be granted only on receipt of prior verification report regarding the genuineness of the existence and functioning of the units and No objection Certificate from the concerned jurisdictional Central Excise Authorities regarding deputing of officers for supervising the export stuffing. In case of status-holder merchant and manufacturer exporters, the FSP shall be granted provisionally which will be valid for 30 days and within such period the verification reports ie. NOC from the concerned jurisdictional Central Excise Authorities regarding deputing of officers for supervising the export stuffing and verification report regarding the genuineness of the existence and functioning of the unit shall be submitted by them failing which the permission will stand automatically cancelled. All the exporters who seek FSP shall submit their request in the prescribed application form along with the following documents to the Factory Stuffing Cell of this custom house: 1) Original copy of the verification report of the genuineness of the existence and functioning of the factory and NOC issued by Central Excise Authorities for deputing officers for Supervising the factory stuffing of export cargo as in Annexure A/B/C, whichever applicable, addressed to the DC, FSP Cell (in sealed cover). 2) Copy of the IEC issued by DGFT, duly certified by the authorized signatory of the exporter. 3) Copy of the PAN card 4) E-mail address of the unit and the telephone number of the GM/CEO of the unit. 5) Other documents as in Public Notice No.161/2001 as applicable. In case of first time merchant exporters, in order to ascertain the genuineness of the exporter, the factory stuffing permission will be granted only after scrutiny of the following documents, in addition to those mentioned in para 6 above: a) Copy of VAT/Sales Tax Registration/Exemption certificate of the merchant exporter. b) A certificate from the bank with whom the bank account is being maintained for the purpose of remittance of foreign exchange to the effect that account is being maintained satisfactorily. c) Where the bank account is less than 3 months old, details of other bank accounts held by the exporter. d) Copy of last Income Tax return/VAT or Sales Tax Return filed. All these documents shall be duly certified by the authorized signatory of the exporter. In terms of Board s Circular No. 20/2010-Cus., dated 22-7-2010, a single FSP will be valid for all customs stations. Hence the exporter has to furnish a list of customs stations from where he intends to export his goods. There will be a Factory Stuffing Permission cell (FSP cell) in the Custom House with an Assistant/Deputy Commissioner in charge who will be the point of contact for all the communication relating to the grant of FSP. The exporter shall ensure that the Central Excise officer who supervised the examination and stuffing of the cargo in the appointed premises as per the FSP shall mention his office contact number and put his stamp of name and designation in the examination report/ARE-1 and other documents. Similarly, the contact number, name, designation of the authorized signatory of the exporter also will be legibly indicated below his signature in the ARE-1 that accompanies the export goods. The Exporters clearing goods under the Factory Stuffed Permission shall invariably produce at the time of Goods registration a copy of the FSP duly attested by the jurisdictional Central Excise officer along with the ARE-1 and other documents. It is also necessary to verify as to whether the exporters who have already availed Factory Stuffing Permission are still active and functional, as many who availed the permission might have gone out of the trade/business. Therefore, to prevent any possible misuse of the permission issued to such dysfunctional or defunct exporters, it has been decided to call for the permissions so issued prior to 01.01.2011 to all exporters and to revalidate them. Hence, the concerned exporters, who have been issued FSP before 01.01.2011, are hereby informed to approach this office with the original permission before 31.05.2014 and to get them revalidated. Any difficulty experienced in the implementation of this Public Notice may be brought to the notice of the undersigned immediately. Sd/- (Dr. K. N. RAGHAVAN) COMMISSIONER OF CUSTOMS