Exports of Gems and Jewellery through Courier Mode

The Central Board of Indirect Taxes and Customs (CBIC) clarified the export of Gems and Jewellery through Courier mode. With this notification, CBIC announced that extant regulations do not restrict exports of gems and jewelry through the courier mode and only apply to imports. Gems and jewelry exports could be done through courier services following all other regulations in place for such exports. The current article briefs the Exports of Gems and Jewellery through Courier mode.

The Gist of CBIC Notification

The CBIC has received various representations from the Gems and Jewellery Export Promotion Council seeking clarification on whether gems and jewelry are allowed to be exported through courier under the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010, as also the Courier Imports and Exports (Clearance) Regulations, 1998. CBIC clarified that,

The restriction imposed by Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010 on gems and jewelry applies only to their imports
The Courier Imports and Exports (Clearance) Regulations, 1998 place a restriction on imports of precious and semi-precious stones, gold, or silver in any form and not on their exports

The official notification about the export of Gems and Jewellery through Courier mode is attached here for reference: [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2020/12/Circular-No-52-2020-updated.pdf"]

Governing Law

The government of India has framed the Courier Imports and Exports (Clearance) Regulations, 1998, for regulating Export/Import through courier mode. According to this regulation, the courier goods are cleared through a fast-track mode on the observance of simple formalities by courier companies.

Examination of parcels is kept to a minimum, and clearance is allowed based on selective scrutiny of documents.
The courier company will pay the duty on behalf of importers/exporters before taking delivery of the parcels.
The weight limit for courier/express material (individual packages) for imports and exports is fixed at 70 kg.

Export of Gems and Jewellery

Export of gems and jewelry, including samples thereof, by Export Oriented Units or units in Export Processing Zones is allowed through courier.
Export of cut and polished diamonds, gems, and jewelry under any scheme of EXIM Policy from Export Oriented Units, units in Export Processing Zones, or units in the Domestic Tariff Area is allowed through courier.

Note: The export will be allowed subject to the condition that the value of each export consignment under such export does not exceed Rs. 20 lakhs.

Procedural Formalities for Clearance of Export of Gems and Jewellery

In the case of gems and jewelry export, the Authorized Courier files Courier Shipping Bills with the proper officer of Customs at the airport or Land Customs Station before departure of a flight or another mode of transport.
Different forms have been prescribed for the export of documents and other goods.
The Authorised Courier is required to present the export goods to the proper officer for inspection, examination, and assessment.

A regular Shipping Bill, as prescribed in the Shipping Bill and Bill of Export (Form) Regulations, 1991, must be filed for specific categories of export goods. Such Shipping Bills are processed at the Air Cargo Complex or the EOUs or STP or EHTP, and after that, with the permission of Customs, the goods are handed over to a courier agency for onward dispatch. The goods to which this procedure applies are as follows:

Goods originating from EOUs/STPs/EHTPs,
Goods exported under DEEC, EPCG, and Drawback schemes
Goods that require export licenses under the Foreign Trade (Development and Regulation) Act,1992.

Examination Norms for Gems and Jewellery exported by courier

The following examination norms are provided for the export of courier consignments:

100% screening of export consignments will be done through X-ray or other NII techniques.
Physical examination of export documents, gifts, samples, and goods is limited to 10% of the total courier consignments or specific intelligence. The consignments so selected will be examined 100%
Selection of consignments' physical examination would be based on various parameters such as the nature of goods, value, weight, the status of the exporter, etc
The Commissioner of Customs in the respective port will exercise the discretion of random examination of goods on a specific parameter such as country of export and nature of goods as presently provided in the EDI system
Any consignment can be examined by the Customs (even Upto 100% examination) if there is any specific intelligence or there is doubt during X-ray in respect of the said consignment
Under the automated process, the consignments will be identified for examination based on risk analysis

Transshipment of Gems and Jewellery

The transshipment facility between two Customs stations is available under courier mode as per the provisions of the Customs Act, 1962, Goods Imported (Conditions of Transhipment) Regulations, 1995, and other instructions.

Disposal of Uncleared Goods

The Courier regulations for both manual and electronic modes prescribe a procedure for clearing uncleared goods.

In the case of imported goods, the same is required to be detained by Customs, and a notice is issued to the Authorised Courier, and interests can be disposed of after the expiry of 30 days of the arrival of the said goods.
The charges payable for storage and holding of such goods are to be borne by the Authorised Courier.
In the case of export goods, a similar procedure as in respect of imported goods is prescribed, the only difference being that such goods can be disposed of if they have not been exported within seven days of arrival into the Customs Area or within such extended period as may be permitted by the Customs.

Courier Electronic Clearance procedure

Clearance of export goods will be done as follows:

The Authorized Courier or his agent will file, in an electronic form, a manifest for export goods before its export with the proper officer, viz. Courier Export Manifest (CEM) in a prescribed format.
The courier packages containing the export goods will not be dealt with after the presentation of documents to the proper officer, except with the permission of the appropriate officer, to open any package of export goods brought into the Customs area, to be loaded on a flight.
The Authorized Courier or his agent shall make entry of goods for export, in Courier Shipping Bill-III (CSB-III) for documents in a prescribed format, before presenting it to the proper officer.
Any export goods brought into customs area for export purpose and not exported within 7 days or within the such extended period as permitted by the proper officer in case of delay beyond the control of the Authorized Courier and declared exporter, may be detained by the proper officer and sold or disposed of by the custodian, after notice to the concerned Authorized Courier and declared exporter. Such Authorized Courier shall pay the charges for storage and handling of such goods.