Procedure to be followed for granting of Letter of Factory Stuffing Permission (LoFSP) to manufacturer-exporters, merchant-exporters and onetime/first time exporters and seasonal exporters on prior verification basis reg. - Customs - 23/2010

OFFICE OF THE COMMISSIONER OF CUSTOMS (EXPORT) JAWAHARLAL NEHRU CUSTOM HOUSE, SHEVA DIST RAIGAD, MAHARASHTA F.NO. S/6-Misc-02/2007-FSP-JNCH DATED 26/02/10 PUBLIC NOTICE NO. 23/2010 SUB: Procedure to be followed for granting of Letter of Factory Stuffing Permission (LoFSP) to manufacturer-exporters, merchant-exporters and onetime/first time exporters and seasonal exporters on prior verification basis reg. Attention of the Exporters, CHAs and the Public is invited to the Public Notice No 57/2001 dated 03.09.2001, 70/2001 dated 21.11.2001, 52/2008 dated 01.07.2008 and 61/2009 dated 04.09 2009 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 Notices call for a revisit in the context of number of frauds detected involving the misuse of the Factory Stuffing Permissions. The procedure of granting of Factory Stuffing Permission on post-verification basis has also failed to fulfill the objectives sought for. It was also noticed that the verification reports regarding the genuineness of the premises where export goods were sought for stuffing in number of cases were pending for long which necessitated the cancellation of Factory Stuffing Permission granted to such exporters. It is also a fact that many a times the central excise field formations do not have adequate manpower to offer their services to the supervision of export stuffing at the factory premises of the exporters. Thus, being informed about the host of factors discussed above, it has been decided to make the changes in the procedure for grant of factory stuffing permission as outlined below. 2. The FSP Cell, herein after will issue Letter of Factory Stuffing Permission (LoFSP) in the format as annexed to this Public Notice (Annexure A) to the categories of exporters mentioned below subject to the requirements detailed therein and thereof. 3. In terms of Boards Circular No 860/18/2007-CX dated 22.11.2007 self- sealing of export of goods has been made mandatory for the manufacturer - exporters (whether status holder or not) who export such goods under free shipping bills. Therefore, LoFSP 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. 4. In case of non-status holder manufacturer exporters operating under any of export incentive schemes i.e in case of exports other than under free shipping bills, the LoFSP will be granted only on receipt of prior verification report regarding the genuiness 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 supervising the export stuffing The genuineness of the IEC will also be confirmed from DGFT before issue of LoFSP. 5. Similarly, in case of non -status holders merchant exporter the LoFSP 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. The genuineness of the IEC of the exporter will also be confirmed from DGFT website before issue of LoFSP. 6. In case of status- holder merchant and manufacturer exporters, the LoFSP will be granted provisionally which will be valid for 30 days and within such period the verification reports i.e 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. 7. In case of first time exporters the factory stuffing permission from JNCH will be granted only after verifying the genuiness of their existence (IEC from DGFT) and warehouse/factory premises from Central Excise Authorities and subject to their complying with the provisions of Public Notice no. 58/2009 dated 28.08.2009. 8. Exporters also seek ONE Day permission and request for stuffing of containers at Turbhe Railway Station/Grain Yard at Sewri Station and private warehouses at APMC Market Vashi on MOT basis. Since the goods are bulky in nature (sugar, vegetable oil etc.) they need to be stuffed into the containers directly from the Railway wagons at the Railway yard itself. However, the LoFSP will be granted in these cases on their compliance of the P.N.No 58/2009 dated 28.08.2009 and on verification of IEC from DGFT website. 9. Though the LoFSP granted to manufacturer -exporters and others is one time permission in nature, their track record will be monitored and reviewed periodically i.e after a period of every six months. The LoFSP will be cancelled forthwith in cases where the verification report is adverse, not received within the stipulated period and/or the exporters are facing any proceedings under Customs, Excise, Service Tax or any other allied Acts. 10. All the exporters who seek LoFSP shall submit their request in the prescribed application form (as in Annexure-B) along with the following documents to the FACTORY STUFFING CELL, of this Customs House:- i) NOC issued by Central Excise Authorities for deputing officers for Supervising the factory stuffing of export cargo ii) Original copy of the verification report of the genuineness of the existence and functioning of the factory and all other details sought for in Annexure-B issued by Central Excise addressed to the DC, FSP CELL, (in sealed Cover). iii) Copy of the IEC issued by DGFT. iv) e-mail address of the unit and the telephone number of the GM/CEO of the unit. v) Other documents as in P.N. No. 57/2001 dated 03.09.2001 58/2009 Dated 28.08.2009 as applicable. 11. The FSP CELL upon receipt of the application along with the said documents will cross check the genuineness of the details furnished in the sealed cover with the soft copy of the verification report received from the official e-mail address of the jurisdictional AC/DC Central Excise and also the genuineness of the IEC from DGFT website. The LoFSP shall within TWO DAYS be granted to the exporter. 12. The Exporters clearing goods under the Factory stuffed Permission shall invariably produce at the time of goods registration a copy of the LoFSP duly attested by the Jurisdictional Central Excise officer along with the ARE-1 and other documents. The goods registering Officers posted in the Export Shed/CFS will cross check the validity of factory stuffing in the EDI system. 13. The Central Excise officer who supervised the examination and stuffing of the cargo in the appointed premises as per the LoFSP 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. 14. The profile of exporters and their existence is a dynamic phenomenon. Hence, it becomes necessary to verify as to whether the exporters who had availed Factory Stuffing Permission , though, positive verification report was received in respect of them, are still active exporters and functional. Many who availed the permission might have gone out of the trade/business. However, there is no record at present in this Custom House regarding the status of the permissions granted to them since the permission is one time in nature. Therefore, to prevent any possible misuse of the permission of such dysfunctional or defunct exporters by unscrupulous exporters, it has been decided to call for the permissions so issued prior to 2007 to all exporters and revalidate them. Hence, the concerned exporters are hereby required to approach this office with the original permission within a period of 30 days from the date of issue of this Public Notice. 15. Any difficulty experienced in the implementation of this Public Notice may be brought to the notice of the undersigned immediately. (B. K. SINHA) COMMISSIONER OF CUSTOMS (EXPORT)