2011 (2) TMI 22 - AT - Customs

Appeal decision on toy import requirements: testing, standards, packaging. Importers comply or face re-export.

The appeal was disposed of based on the directions provided regarding testing, conformity to standards, and packaging requirements. Importers were ... Restriction on import of toys in public interest - conformity to DGFT Notification No.113/(RE-2008)/2004-2009 - representative sample testing at CBEC recognized/BIS standard laboratories - packaging requirements in terms of DGFT Notification No.44 dated 24.11.2000 - option of re exportConformity to DGFT Notification No.113/(RE-2008)/2004-2009 - restriction on import of toys in public interest - Imported children's toys must conform to the standards and requirements specified in DGFT Notification No.113/(RE-2008)/2004-2009 and may be subject to denial of clearance if such conformity is not established. - HELD THAT: - The Tribunal applied the reasoning in M/s. Lukkad Impex & Others Final Order No.1121 to 1123/10 dated 7.10.2010 and accepted that the Government's restriction on import of toys is motivated by health concerns and public interest. Consequently, import of toys must conform to the standards specified in Notification No.113/(RE-2008)/2004-2009; absence of manufacturer details and year of manufacture may justify non-conformity findings and attendant departmental action, subject to the remedial directions given by the Bench. [Paras 2, 3]Findings of non-conformity under the DGFT notification were upheld as a legal basis for withholding clearance unless compliance is demonstrated.Representative sample testing at CBEC recognized/BIS standard laboratories - packaging requirements in terms of DGFT Notification No.44 dated 24.11.2000 - option of re export - Imported toys held as not conforming shall be permitted release if representative samples, tested at CBEC recognized/BIS standard laboratories referenced in the Board's letter dated 7.12.2009, confirm conformity; the importer must also comply with packaging requirements or may elect re export within a specified time. - HELD THAT: - Following the ratio in the cited Lukkad Impex order, the Tribunal directed that representative samples be sent to either of the certified laboratories named in the Board's 7.12.2009 communication (IIT Chennai or M/s. SGS India Pvt. Ltd., Gurgaon). If testing shows conformity with the prescribed standards, the goods shall be released to the importer, who must furnish an undertaking that the packaging requirements under DGFT Notification No.44 dated 24.11.2000 will be strictly complied with prior to clearance. If the importer declines to obtain testing, the alternative of re export was preserved and a two month period for re export was granted. [Paras 3, 4]Directed testing of representative samples at specified certified laboratories and release upon conformity with an undertaking on packaging; allowed option of re export within two months if testing is not undertaken.Final Conclusion: The appeal was disposed of by applying the earlier Lukkad Impex precedent: the imported toys must either be tested at the CBEC recognized/BIS standard laboratories named in the Board's 7.12.2009 letter and, if found conforming and packaging requirements are assured, released to the importer, or the importer may opt for re export within two months. Issues:- Clearance of goods described as children toys- Conformity to DGFT Notification No.113/(RE-2008)/2004-2009- Requirement of testing by certified laboratories- Packaging requirements under DGFT Notification No.44 dated 24.11.2000Clearance of Goods - Issue Analysis:The issue in dispute pertains to the clearance of goods described as children toys. The department contended that the goods imported did not conform to DGFT Notification No.113/(RE-2008)/2004-2009 as the test report and certificate lacked essential details such as the manufacturer's name, address, and year of manufacture. Consequently, the consignment was held to be non-compliant, leading to confiscation with the option of re-export.Conformity to DGFT Notification - Issue Analysis:The Tribunal referred to an earlier order in the case of M/s.Lukkad Impex, where it was established that the import of toys must adhere to Notification No.113/(RE-2008)/2004-2009 due to health concerns and public interest. The Tribunal highlighted the guidelines issued by the CBEC recognizing laboratories with BIS standards capable of testing the goods. It was decided that representative samples should be sent to these certified laboratories for testing. If the goods met the specified standards, they would be released to the importers, who were required to ensure compliance with packaging requirements outlined in DGFT Notification No.44 dated 24.11.2000.Requirement of Testing by Certified Laboratories - Issue Analysis:In line with the precedent set in M/s.Lukkad Impex, the Tribunal directed the assessees in the present case to send representative samples to the certified laboratories mentioned in the CBEC's letter dated 7.12.2009. If the imported goods were found to conform to the specified standards upon testing, they would be released to the importers, subject to compliance with packaging requirements. Alternatively, importers failing to test the goods were given the option of re-export within two months.Packaging Requirements under DGFT Notification - Issue Analysis:The judgment emphasized the importance of adhering to packaging requirements stipulated in DGFT Notification No.44 dated 24.11.2000 before clearance of the goods. Importers were instructed to provide an undertaking ensuring strict compliance with these packaging standards to facilitate the release of goods found to meet the specified quality criteria. Failure to comply with testing or packaging requirements would result in the option of re-export within the specified timeframe.In conclusion, the appeal was disposed of based on the directions provided regarding testing, conformity to standards, and packaging requirements, as outlined in the judgment, thereby resolving the issues related to the clearance of children toys and ensuring compliance with relevant notifications and guidelines.