Classification of Laboratory Chemical Imports for Traders

Traders importing laboratory chemicals must classify these goods under appropriate chapters/headings in the Customs Tariff Act, 1975. According to the recent amendment through Notification No. 62/2024-Customs (N.T.), effective from 19th September 2024, imports of laboratory chemicals under Heading 9802 are restricted to actual users only. The chemicals must be in packaging not exceeding 500 grams or 500 milliliters. Therefore, laboratory chemicals imported for trading purposes, irrespective of quantity or packaging size, cannot be classified under Heading 9802 and should be classified under relevant sections in the Customs Tariff.

EPCG Authorisations and Recent Amendment Impact

The recent Public Notice No. 15 dated 25th July 2024, amending Para 5.15(c) of the HBP 2023, applies to EPCG authorisations issued during the 2015-20 policy period as well. As specified in the new Para 5.15(e) of the HBP, these amendments extend to past authorisations, ensuring consistency across policy periods. For EPCG authorisations issued prior to 1st April 2015, the provisions of Para 5.13(d) will apply.

Switching from CIF to Ex-Works (Ex-W) Basis: Risks and Considerations

Switching from CIF to Ex-Works (Ex-W) basis will shift several costs and risks to the buyer. In an Ex-W contract:

• The seller’s obligation ends once the goods are made available at the named place and notice is given.
• The buyer bears all costs related to loading, transportation, export duties, taxes, customs clearance, and ocean freight.
• The buyer is responsible for marine insurance costs and any variations in insurance costs.
• Any required export documents (licenses, inspection certificates, etc.) must be facilitated by the seller but at the buyer’s expense.
• Delays or additional costs after taking delivery also become the buyer’s responsibility.

Thus, importing on Ex-W terms requires careful consideration of potential cost increases and the logistical challenges involved.

Closing IDPMS Entries for Import of Free Samples

Banks are increasingly reluctant to close Import Data Processing and Monitoring System (IDPMS) entries based on CA certificates for small value imports like free samples. To close such entries, you may need to provide supporting documentation such as:

• Proof of free-of-cost imports, including invoices marked as free samples.
• Courier or customs documentation showing no monetary transaction for the goods.
• Any relevant communication with the exporter confirming the nature of the shipment.

If issues persist, consider discussing with the bank to understand their specific documentation requirements for closure of IDPMS entries related to free samples.