Saturday, April 20, 2019

Case study of mandatory BIS requirement for imports – Importers needs to be aware of this case

Most of the Indian import traders, who import finished products such as electrical appliances, LED products and IT products etc., are keep on checking with Customs Brokers & consultants that whether their import item will come under Compulsory BIS ( Bureau Indian Standards ) norms are not ?  i.e that particular import item needs prior BIS registration or not ?

Import of mandatory BIS item without proper BIS certification leads to very costly consequences such as detention, demurrage and confiscation etc.,
Below is a land mark case where an importer has dismantled an Electric product and classify it as parts. Under different Bill of Entries they tried to import parts of Electric Iron.

In above case, on 15.04.2019 CESTAT MUMBAI ordered re export of import goods but without penalty under section 112 of Customs Act

‘parts of electric iron’ - case of Revenue is that the appellant imported ‘Euroline’ brand of ‘electric iron’, comprising the main component and certain other parts, excluding ‘power supply’ and ‘base’, in the impugned transaction and the excluded parts were imported separately with intent to evade compliance with the norms of the Bureau of Indian Standards. It is held that “ It is on record that the impugned goods, upon examination and not by the mere reliance on legal fiction in the interpretative rules, were found to be the most vital component of ‘electric iron’ and that the goods were so packed as to easily integrate the other two parts which, admittedly, had been imported separately but concurrently, to support the finding that the goods are, indeed, ‘electric iron.’

undoubtedly, the prescriptions of Bureau of Indian Standards,applies to the finished product and not to the parts but the most essential component that is impugned in this dispute, if allowed to remain non-compliant, would not be conducive to public safety.

As the imported goods, though required to be, are not compliant with the standards, they fail to overcome the bar of prohibition at the threshold  hence ordered to re export.

No comments: