Eight Digit HS Code on Shipping Bill Mandatory

[DGFT Policy Circular No. 40 dated 16th July 2010]

Sub: Declaration of Intent for claiming benefits of various schemes under Chapter 3 of FTP 2009-14 and mentioning of ITC [HS] Codes on Shipping Bills, mandatory requirements thereof.

In order to operationalising EDI Message Exchange of Chapter 3 Reward Schemes of FTP with Customs Database, a meeting was held under the Chairmanship of DGFT on 21.5.2010. In terms of the decision taken therein, it has been decided that:

a) Attention is invited to Public Notice No. 82/2009-14 dated 16.7.2010. For export of goods exported from 1st January 2011 onwards, the Declaration of Intent for Claiming the benefits under Chapter 3 of FTP, in terms of Para 3.11.8 of FTP 2009-14 as amended by Public Notice No. 82/2009-14 dated 16.7.2010, has been made mandatory for all types of shipments seeking to claim the benefits of Chapter 3 reward schemes.

b) It has further been decided that exporter shall mandatorily mention the 8 digit ITC (HS) code on the Shipping Bill. Moreover, where 8 digit ITC (HS) code for the export product / category is not specified in the Chapter 3 scheme related Appendices, the applicable entry of the intended reward scheme should be mentioned on the Shipping Bill.

c) The EDI Software of Customs (ICEGATE) is being modified from the present system of categorizing shipments as “NO EXPORT INCENTIVE” (in case the export is not under Chapter 4 or 5 of FTP, i.e. DBK, DFIA, AA, DEPB and/or EPCG Schemes) to merely clicking “YES” in the relevant place to enable the exporters to declare their intent in the Shipping Bills. The exporters may, however, declare the intent anywhere in the Shipping Bill till such time the ICEGATE software is modified.

2. EPCs should make special efforts to educate the Trade and Industry in general and exporting community in particular with respect of this change regarding the requirement of ‘declaration of intent’ even for all types of shipments including those under Advance Authorisation, DEPB, Drawback, EPCG, DFIA etc. and the ‘mandatory requirement of mentioning the 8 digit ITC HS Code on the Shipping Bill’.

This issues with the approval of DGFT.