SME Chatroom: Purpose of shipping mark to enable package to be identified

In an LC we received, there is a condition to affix shipping marks in a particular way. The BL shows the shipping marks as mentioned in the LC, but also shows some additional details, such as the type of goods, warnings as to the handling of fragile goods, net and gross weights. Is it a discrepancy?

No. A shipping mark’s purpose is to enable identification of a box, bag or package. If an LC specifies the details of a shipping mark, the documents mentioning the marks should show these details; additional information is acceptable provided it is not in conflict with the LC terms. This position is clarified at Clause 34 of the International Standard Banking Practices for examination of documents under documentary credits, 2007 (ICC Publication no. 681 E).

We obtained an EPCG authorisation in 2017. We installed the capital goods imported, but have not yet fulfilled the export obligation. Now, we want to shift the capital goods to our own unit in another location. Can we do so?

Yes. Para 5.04(a) of HBP says that the authorisation holder shall be permitted to shift capital goods during the entire export obligation period to other units mentioned in the lEC and RCMC of the authorisation holder, subject to production of fresh installation certificate to the RA concerned within six months of the shifting.

We are an EOU. We are required to execute B-17 bond and furnish surety or security along with the B-17 bond. As per CBEC Circular no.54/2004-Cus dated October 13, 2004, units which are in existence for the last three years with unblemished track record and have export turnover of Rs 5 crore or above, are exempted from furnishing bank guarantee or surety along with B-17 Bond. Now, what are the parameters for determining our unblemished track record?

As per CBEC Circular no.36/2011-Cus dated August 12, 2011, the parameters are that the unit should have achieved NFE/export obligation wherever applicable and the unit should not have been issued a show cause notice or a confirmed demand, during the preceding three years, on grounds other than procedural violations, under the penal provision of the Customs Act, the Central Excise Act, the Foreign Trade (Development & Regulation) Act, the Foreign Exchange Management Act, the Finance Act, 1994 covering Service Tax or any allied Acts or the rules made thereunder, on account of fraud/collusion/willful misstatement/ suppression of facts or contravention of any of the provisions thereof.

We supplied goods to a SEZ unit by filing a bill of export. They have been rejected. How to get them back? 

Rule 48(3) of the SEZ Rules, 2006 says that where goods procured from the DTA by a unit are supplied back to DTA, as it is or without substantial processing, such goods shall be treated as re-imported goods and shall be subject to such procedure and conditions as applicable in the case of normal re-import of goods from outside India.

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