CBIC To Inspect All Export Goods, Not Just Random Samples

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The Central Board of Indirect Taxes and Customs (CBIC) will now inspect all export goods instead of random samples at ports. This move will hopefully bring to a halt the spurious export trade of rags in the name of apparel, to collect duty drawbacks and other export benefits.

It is usual for CBIC authorities to scrutinise the goods by drawing random samples from every consignment. But in recent weeks, they have started examining all the goods. Apparel exporters say the situation is forcing them to repack the examined goods and also causing delay in shipments.

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According to senior CBIC officials, “The solution was not voluntarily brought on by the board but was forced by the exporters. We noticed numerous exporters shipping banned goods and many other involving in frauds to claim benefits given to the export businesses without sending goods or exaggerating value of the goods. For instance, at a port in Mumbai, exporters were caught shipping red sanders, whose trade was banned. So the central government put pressure on the board and sacked many officials.”

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The move by CBIC has prompted the Apparel Export Promotion Council (AEPC) to write to the board to ease the process. AEPC acting chairman, A Sakthivel has requested CBIC to exempt  exporters from 100% mandatory examination of export consignments. “While the apparel industry is already facing difficulty, it is adding more burden. So, we request CBIC to  turn again towards 2-3% scrutiny of Authorised  Economic Operator (AEO) and other status holders. The random sample scrutiny may be done to avoid such delay,” he said.

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