Self sealing and power to central excise officer at the place of despatch

[Narendra Soni]

Dear Expert,

1.We have factory stuffing permission, Can we also opt for self sealing procedure simultaneously.Should we required to surrender our factory stuffing permission if opt for self sealing.

2.Whether central excise department has power to visit randomly and check container stuffing under self sealing & self certification.In this regard please refer Board circular no.426/59/98-CX dated 12.10.1998 in Para 5-duty of central excise officer at the place of despatch.Is it applicable/effective as on date.

Kindly suggest.

[Rajagopalan Ranganathan]

Sir,

As per para 10 of Chapter 7 of CBEC's Manual of Departmental Instructions

10. Despatch of goods by self-sealing and self-certification

10.1 The facility of self-sealing and self-certification is extended to all categories of manufacturers-exporters subject to compliance with the existing instructions. The Exporter shall however, endorse the certificate on ARE-1/ARE

2. Export goods, which are self- sealed by the manufacturer Exporter himself shall be subjected to examination norms at the port of export as prescribed by customs from time to time. It may, however, be noted that the procedure for examination and sealing of the goods at the place of the dispatch by central excise officers is purely optional and the option shall remain only with the manufacturer-exporters. (Circular No. 736/52/2003-CX. Dated 11.8.2003).

For this purpose the owner, the working partner, the Managing Director or the Company Secretary, of the manufacturing unit-Exporter or a person (who should be permanent employee of the said manufacturer-exporter holding reasonably high position) duly authorised by such owner, working partner or the Board of Directors of such Company, as the case may be, shall certify on all the copies of the application (A.R.E. 1) that the description and value of the goods covered by this invoice/ARE-I/ARE-2 have checked by me and the goods have been packed and sealed with lead seal/one time lock seal having number _____ under my supervision.

In this instruction it is not mentioned that central excise department has power to visit randomly and check container stuffing under self sealing & self certification. Export consignment which are cleared under self certification may be examined by Customs at the port of export as per prescribed norms.

[Narendra Soni]

Dear Rajagopalan Ji,My query is different what you replied.I have posted two queries,please suggest for both separately.Please also refer Board circular mentioned in my query,then reply accordingly.Thanks and Regards

[Mukund Thakkar]

1.We have factory stuffing permission, Can we also opt for self sealing procedure simultaneously.Should we required to surrender our factory stuffing permission if opt for self sealing.

In case of your export under free shipping bill you can opt self sealing procedure,

And your export under any scheme likes Adv Authorisation or under EPCG in such case you have to require stuffing permission of dept.

so you need not to surrender your factory stuffing permission. self sealing circular is not mention any where that you have to surrender.

2.Whether central excise department has power to visit randomly and check container stuffing under self sealing & self certification.In this regard please refer Board circular no.426/59/98-CX dated 12.10.1998 in Para 5-duty of central excise officer at the place of despatch.Is it applicable/effective as on date.

view given by Rajagopalan Ranganathan which has self explantory.

[Narendra Soni]

Thanks Mr. Mukund,

Still reply to point 2 is not cleared.

My query is "2.Whether central excise department has power to visit randomly and check container stuffing under self sealing & self certification.In this regard please refer Board circular no.426/59/98-CX dated 12.10.1998 in Para 5-of this circular "Duty of central excise officer at the place of despatch" is mentioned.Is it applicable/effective as on date"

Neither Mr. Rajagopalan nore you have replied this.Again requested to please refer the Board circular no.426/59/98-CX dated 12.10.1998 , and then suggest.

Thanks n regards.

[Mukund Thakkar]

Dear Soni,

please refer the following circular which has cleared your qeary.

Circular No. 445/11/99-CX, dated 17/3/1999

Special facility of self-certification and self-sealing to large manufacturer-exporter - Further instructions

[Narendra Soni]

Thanks Mr. Mukund for prompt and valuable reply.

As per the circular referred by you, Para 7 of circular 426/59/98 is omitted.-Its Ok, because it pertained to "Duty of Customs officer at the place of Export i.e.port"-this is not part of my query.

However my query is pertained to para 5 of circular 426/59/98,"Duty of central excise officer at the place of despatch i.e.factory:- which is not omitted and not modified till date. In the circular referred by you in para 3 it is also mentioned that "Sample can be drawn at the place of despatch by the central excise officers ....as per manner specified in circular 426/59/98". Hence so far I under stood that central excise has power to select randomly and check "description/quantity/value/weighment of at least one package of consignment subject to not more than 10% of consignment in a month".

Please confirm Is my understanding is correct .

Thanks again for your valuable time & suggestion.

[Suryanarayana Sathineni]

Dear Friend,

In my view, there is no bar in availing both the options. You can avail self sealing also simultaneously.

To clear your doubt, it is better if you submit a letter to the Department that in addition to the container stuffing, you also would like to use self-sealing facility for certain consignments as and when required or based on the convenience.

Best Regards

Suryanarayana

AI Summary

Can self-sealing be used with factory stuffing? Excise officers' random checks debated; confirm with department for clarity. A discussion in a forum revolves around the process of self-sealing and the authority of central excise officers concerning container inspections at dispatch points. A participant queries whether they can opt for self-sealing without relinquishing factory stuffing permission and if excise officers can conduct random checks under self-sealing protocols. Responses clarify that self-sealing can be adopted alongside factory stuffing permission and that excise officers may conduct random checks, as per certain circulars, but the exact authority remains debated. Participants suggest confirming with the department for clarity on using both procedures simultaneously.