GST Details

Procedure of Self Sealing of Containers by Exporter

By Adv Mayur Desai

In the earlier regime, there were three categories of containers which arrive at the port/ICD:

  1. Containers stuffed / sealed at factory premises or warehouse under supervision of central excise officer.

  2. Containers stuffed at factory premises or warehouse under self-sealing procedure.

  3. Containers stuffed and sealed at Container Freight Stations/ Inland Container Depot.

Factory stuffing to replaced by E-sealing

The practice of factory stuffing under the supervision of Central Excise authorities is proposed to be replaced by E-sealing of container by exporter . 

One of the key aspect relating to simplified sealing procedure for export of goods is the use of tamper proof electronic seals of standard specifications. 

Mandatory Applicability of E-selling Procedure:

The applicable date for RFID e-sealing implies that exporters are required to use this procedure from the prescribed date. Any container sealed at the exporters premises before the prescribed date, shall not be required to be brought with RFID e-seal.

Mandatory applicability of RFD Self Sealing Procedure to following type of Exporters namely:

1.  Mandatory applicability of e-selling from 15th December,2017: 

Wither effect from 15th December, 2017 e-selling shall become mandatory in respect of all exporters who have been permitted self-sealing facilities under erstwhile procedures, exporters who are Authorised Economic Operators and exporter availing supervised stuffing permission at their premises for the following locations:

  • JNCH, Nhava Sheva.
  • Chennai Port.
  • Mundra Port.
  • Hazira Port
  • Cochin Port.
  • Kattupalli Port
  • Kolkata Port
  • ICD Tughlakabad
  • Tuticorin Port.
  • Pipava Port.
  • Vishakhapatman Port
  • Krishnapatnam Port
  • ICD Bagalore
  • ICD Tirupur
  • ICD Ludhiana 

2. Mandatory applicability of e-selling from 1st  January,2018:

In respect of all exporters who have been permitted self-sealing facilities under erstwhile procedures and exporters who are Authorised Economic Operators, it would be mandatory to seal their export containers with prescribed RFID e-seal w.e.f 8thNovember, 2017.

3.    On voluntary Basis

Those exporters who are in possession of RFID e-seals are at liberty to commence availing the facilitative procedures instantly.

Prescribed Procedure:

The Board in its Circular No. 36/2017 – Customs dated 28.08.2017 prescribed a detailed procedure to be followed by the exporter.

1. Automatically Entitled for Self-sealing  :

The Exporters who were availing self- sealing at their factory under supervisory of the Department, will be automatically entitled for self-sealing procedure. Further, who are already following the self-sealing procedure need not to approach the jurisdictional officers.

2.Validation of permission :

The permission to self-seal, once granted shall be valid unless withdrawn by the concerned officer for non-compliance to law, rules & regulations. In case the exporter makes a request for a change in the approved factory, then the prescribed procedure as provided in the Circular No 26/2017 shall be followed & a fresh permission shall be obtained.

3.Intimation of Physical Serial Number

The exporter will be obligated to declare the physical serial number of e-seal at the time of filing Integrated Bill or in the case manual shipping bill before the container is dispatched for the designated port.

Exporter shall directly procure RFID Seals from vendors, confirming to the prescribed standards & specifications. In case, the RFID Seals found to be tampered with, then mandatory examination would be carried out by the Customs Authorities.

4. Requisite details from Exporters

The exporter shall seal the container with the tamper proof electronic seal of standard specification. Before sealing the container, the exporter shall feed following the data namely: such as name of the exporter, IEC code, GSTIN number, description of the goods, tax invoice number etc.

 The electronic seal should have a unique number which should be declared in the Shipping Bill.

Before sealing the container, the exporter shall feed the data namely:

– IEC (Importer Exporter Code)

–  Shipping Bill Number

– Shipping Bill Date

– e-seal number

– Date of sealing

– Time of sealing

– Destination Customs Station for export

– Container Number

– Trailer- Truck Number

The information need not be mounted “in the electronic seal” but tagged to the seal using a ‘web / mobile application’ to be provided by the vendor of the RFID seals. Data once uploaded by the exporter should not be capable of being overwritten or edited.

5. Inspection of containers

Unless there are valid reasons or intelligence inputs, there shall be no inspection of such containers, once the RFID e – seal is read as intact or not tampered.

However, an RFID seal affixed on a self-sealed container is found tampered, the same shall be subject to Inspection or examination. After due inspection, further movement of such a container shall not be allowed under the RFID e-seal procedure and existing system of using the traditional bottle seals by customs shall continue.

6.   Non – Applicability the Procedure

The prescribed procedure does not apply to export of non-containerized cargo or Air cargo or for movement of cargo from CFSs to ICDs/Ports or cargo exported through Land Customs Stations.

 Full containers brought to Ports without RFID e-seals shall be taken to a CFS or allowed direct port entry, as the case may be, and will be subject to usual RMS treatment. Similarly, Full Containers Loads arriving at ICDs, but without RFID e-seals, will be subject to usual risk management parameters.

7.  New Applicants for self-sealing permission

Regarding the exporters who have newly applied to the jurisdictional customs authority for self-sealing permission under circular 26/2017-Cus dated 1st July 2017, they shall commence use of the facility subject to grant of permission and upon adoption of RFID e-sealing.

Note:- If any query feel free to write un on our mail id: mayur@pmlegal.in or info@pmlegal.in