Procedures for export & re-import of jewellery through e-commerce mode

Byefficpro

The Central Board of Indirect Taxes and Customs on 30th June 2022, has notified the framework for e-commerce exports of jewellery through courier mode. This framework has been implemented through standard operating procedure (SOP) for bringing uniformity and certainty on the process and steps to be followed to facilitate such export via international courier terminals (ICTs).

Based on electronic declarations, the SOP specifies the processing, transportation, and procedural elements of such exports through International Courier Terminals. The framework takes into account the necessity for consistent action by Customs, which provides assurance for commerce. It also meets a particular demand of the e-commerce Ecosystem for the re-import of rejected items in certain circumstances and to the specified amount.

The SOP is applicable to e-commerce export of jewellery made of precious metals failing under CTH 7113 and intimation jewellery falling under CTH 7117 of the first schedule to the customs Traffic Act, 1975.

THE STANDARD OPERATING PROCEURE IS AS FOLLOWS:

  1. Electronic declaration on ECCS and uploading of documents
  2. Producing the goods at the ICT for exports
  3. Customs assessment and examination
  4. Clearance for export
  5. Procedure for re-import of returned jewellery items
  6. Provision of infrastructure at an ICT for secure handling and movement of jewellery consignment
  7. Provision of enabling environment by customs field formations

Electronic declaration on ECCS and uploading of documents

  • The authorized courier shall electronically file the courier shipping bill on behalf of the exporter on the express cargo clearance system

The seller registered on the e-commerce platform shall be the exporter and,

The buyer on the e-commerce platform shall be the consignee declared in the courier shipping bill.

  • Such e-commerce payment should be received in advance through electronic payment & unique payment identity is generated electronically
  • To facilitate these e-commerce related exports, certain fields have been added in the CSB-V as markers such as website name/URL of the e-commerce operator, payment transaction ID, e-commerce Order No. and date and Jewellery item specifications (for example – stock keeping unit no. (SKU No.), precious metal content or purity and relevant specifications for studded stones i.e., dimensions, quantity, origin, cut, clarity, colour, carat for diamonds and for other precious and semi-precious stones, name/category of stones i.e., Natural or synthetic etc.).
  • There is field of GSTIN of the seller cum exporter in bill
  • Uploading of documents is also provided in the portal ECCS
  • Additional documents can also be uploaded to support the custom clearance process (if available)

Producing the goods at the ICT for exports

  • On the conclusion of e-commerce sale, the exporter will hand over the goods to authorized courier for export through ICT with declaration and content of export package and value terms of export.

Customs assessment and examination

  • Assessment and examination are based on risk management system based on some specific intelligence-based system.
  • In course of assessment the jewellery is subject to x-ray scanning prior to export
  • If opened by the customs than the package will be securely sealed by custom department by self-adhesive sticker “opened and sealed by Indian customs’’

Clearance for export

Let Export Order (LEO) will be granted after completion of custom requirements

Procedure for re-import of returned jewellery items

  1. Re-imports of jewellery using the courier mode on ECCS through e-commerce platform and returned through same platform is being enabled in following conditions:
  • The authorised courier files the bill of entry for re-import with same import export code and same international courier terminal where the bill was originally made for export
  • Re import transaction should be from same consignee of the said jewellery and same e-commerce platform
  • Image of the return confirmation page should be uploaded on ECCS
  • The reason for the re-import should be provided and the returned jewellery should be re-imported with original packing
  • Exporter who is re-importing continues to have valid IEC(importer-exporter code ) and registration cum-membership
  • FOB value of re-imports should not be less than 25,000 when exported
  • The re-import order shall be placed within 45 days of LET EXPORT ORDER of courier shipping bill
  • Corresponding exports stands reconciled by proper filing of export general manifest (EGM)
  • each Courier Bill of Entry filed for such re-import includes item-wise details corresponding to the concerned Courier Shipping Bill number(s) (CSB-V) filed for export;
  • the jewellery item under re-import conforms to and correlates with the description filed, and other specifications given, in the corresponding Courier Shipping Bill (CSB-V);
  • total CIF value of such reimports for an IEC holder in a financial year does not exceed 2% of the total F()B value (in INR) of jewellery classified under CTH 7113 (excluding CTSH 71131190 and CTSH 71131960) and imitation jewellery classified under CTH 7117, of the First Schedule of the Customs Tariff Act, exported by that IEC holder in the previous financial year under the courier mode on ECCS or Rupees I Lakh, whichever is greater;
  • total number of Courier Bills of Entry filed for such re-imports on account of returns, in a financial year, does not exceed 5% of the total number of Courier Shipping Bills (CSB-V) filed by that IEC holder in the previous financial year under Courier mode on ECCS for jewellery classified under CTH 7113 (excluding CTSH71131190 and CTSH 71131960) and Imitation jewellery classified under CTH7117, of the First Schedule of the Customs Tariff Act or ten, whichever is greater;
  • notwithstanding above paras, for the financial year 2022-23, the total CIF value of such re-import for any IEC holder shall not exceed Rs.50,000 and the total number of Courier Bills of Entry of such re-import shall not exceed five;
  • any tax benefit arisen at the time of corresponding export is neutralised
  • identity of the jewellery under re-import is established to be the same as the one exported and it has not been altered or enhanced.
  1. The monitoring of such re-imports returns including value limit, number of courier bills shall be governed by field formation as per CCR instruction and reports or information that will be made available in ECCS.
  2. For ease of matching the returned jewellery item with the exported jewellery, suitable changes are being made in the ECCS. The form of Courier Bill of Entry has been enabled to capture the details of the corresponding Courier Shipping Bill of export. Further, ECCS will prompt the importer to upload image of 'return confirmation page' of the ecommerce platform, which can be compared with the image of 'product listing page' of the same platform uploaded while filing the Courier Shipping Bill. These details and matching will facilitate the identification process.
  3. Such re-imports of returns will undergo 100% examination. Amongst other necessary checks, details mentioned in the corresponding Courier Shipping Bill and supporting documents uploaded on ECCS at the time of export will be matched.
  4. Duty exemption may be claimed on re-import of return in accordance with corresponding exemption notification, e.g. Notification No. 45/2017-Customs, if the requirements under the Courier Regulations/this SOP are also met.
  5. Suitable amendments have been made to the Courier Regulations (notification no. 57/2022-Customs (N.T.) dated 30.06.2022) to enable such re-imports.

Provision of infrastructure at an ICT for secure handling and movement of jewellery consignment:

In terms of handling the courier in custom areas, the custodian shall provide following infrastructure at ICT to ensure secure handling, movement and storage of jewellery exports and re-imports: –

    1. Strong room for safe keeping and separately earmarked secure area for examination;
    2. Appropriate equipment such as karat meter, lenses, weighing scale, microscope, bulbs and other such equipment as maybe required for aiding the examination and assessment; and
    3. CCTV cameras covering the secure areas, strong rooms and other areas utilized for the movement and handling of the jewellery consignments

 

Source: Circular issued by CBIC

Related Blogs