Customs green channel for all imports save 26 items

The order (No 7305/97), issued last week, specifies that henceforth examination of cargo will not be carried out as a matter of course in every case. “Delivery of goods to importers whose credentials are above board may be permitted without physical examination of the cargo,” the order says.

The categories exempt include the single-window clearance group, imports through Group VII-A, except those imported under the Duty Exemption Entitlement Certification (DEEC) and passbook schemes, importers of non-sensitive bulk goods, regular actual users with a proven track record, importers of prime/standard goods that assessing officers in the concerned groups or docks deem fit, and imports by charitable institutions for free distribution.

The 26 sensitive items that have to be compulsorily inspected are: Spices like clove, cassia, cinnamon and cardamom, pista, raisins, titanium dioxide, polyester chips, polyvinyl alcohol, low density polyester fibre, LLDPE, high density polyethylene, marble, all types of yarn and fibres, all types of fabrics and lining material, umbrella panels and components, stainless steel, copper, hot and cold rolled coils, tin-free steel, tinplate, motor vehicle parts, bearings, electronic components, sewing needles, air conditioners, diesel engines, zip fasteners, press fasteners, buttons, all types of seconds/defective/second hand goods, non-standard goods as rags, waste paper, scrap, second-hand machinery, and steel defectives.

The order also says that any examination of cargoes has to be specifically permitted by officers of the rank of Assistant Commissioner. The latter, for their part, will have to give reasons for allowing examination. Even though officers at various docks are empowered to examine import consignments, they too require similar permissions from Assistant Commissioners at the docks.While issuing the order, the Commissioner said all specified sensitive items will be examined, especially in cases where their classifications and/or value cannot be ascertained otherwise. Imported items that do not figure in the OGL list, those being cleared under the DEEC or passbook schemes, and goods that are re-imported for any reason will also be subjected to checking.

While clearing import documents that are not inspected, the clearing officers will put bold endorsements on them, saying “no examination carried out”. The order says that goods cleared without examination shall be released the same day.

Says Venugopal: “The aim is to clear 50 per cent of the cargo on the same day on which the bill of entry is presented. This will generate more revenue because it will result in decongestion of port areas, facilitating more imports.”

Lower level customs sources disagree. They feel that the order will not only open the floodgates to smuggling, but might also compromise revenue generation by encouraging corruption at the Group A level, which is where the power to examine imports rest.

Venugopal disagrees. According to him, even though cargo may be cleared without checking, post-import checks by the preventive agencies and stringent action would be enough to deter smugglers.

The customs staff, however, fear that they might still be victimised if something is later discovered to have gone wrong. Moreover, the ban on inspections will slowly make the job of examiners redundant.

Customs sources say that there are already too many black sheep among the categories specified in the order. He cited the example of the misuse of the advance licensing and the passbook schemes, which were rampantly misused by certain elements that are now exempt from inspection.

Even parties with the so-called “proven track record” have been found to have been violating import-export laws by various preventive agencies.

Sources said the provisions of the order will encourage imports in excess of the declared quantity by these specified categories of importers, which, in turn, will spell doom on the revenue generation front.