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K.R. Srivats

New Delhi , Aug. 26

IN a major relief for export-oriented units (EOUs) that import raw silk from China, the Finance Ministry has decided to discontinue the current practice of drawing samples to test the grade of raw silk imported by such units from China.

A similar benefit has also been conferred on the raw silk imported from China by the units in the special economic zones (SEZs) of the country.

The Central Board of Excise and Customs (CBEC) had in May 2003 directed field formations to regularly check raw silk consignments coming from China and test them for the grade.

To ensure that the clearances were not delayed, the Revenue Department had then held that the consignments may be cleared, without waiting for test report, by taking a test bond with suitable bank guarantees from importers.

The move to draw samples to test the grade of raw silk consignments came after the Board realised that some "unscrupulous importers" were "mis-declaring" the grades of raw silk consignments to avoid payment of anti-dumping duty.

The Finance Ministry had in January 2003 imposed anti-dumping duty on raw silk of grade 2A and below imported from China.

Although EOUs are exempted from payment of anti-dumping duty, the imports made by them were also subjected to grade test.

The rationale given for drawing samples in case of import by EOUs was that the Revenue Department wanted to ensure that EOUs fork out the anti-dumping duty if the imports are not used for export production or they get diverted into domestic tariff area (DTA) clandestinely.

After considering the "genuine difficulties" faced by EOUs, the CBEC has now decided to discontinue the practice of drawing samples for grade test on the raw silk consignments from China.

The only condition is that the EOUs would have to now give a legal undertaking (without bank guarantee or security) to the Assistant or Deputy Commissioner of Customs in charge of the port of import, airport, Inland Container Depot (ICD) or Land Customs Station (LCS).

More Stories on : Silk | Excise and Customs | Exports & Imports | Standards & Benchmarks

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