LABELLING, PACKAGING, PACKING AND MARKING GOODS

LABELLING

An important stage after manufacturing of goods or their procurement is their preparation for shipment.

This involves labelling, packaging, packing and marking of export consignments.

Labelling requirements differ from country to country and the same should be ascertained well in advance from the buyer.

The label should indicate quality, quantity, method of use etc.

Special international care labels have been specified for the textile items by GINITEX

PACKAGING

Packaging fulfils a vital role in helping to get export products to the market in top condition, as well as in presenting goods to the overseas buyer in an attractive way.

While packaging, quality should not be compromised merely to cut down costs, packaging should also be in conformity with the instructions issued by the importer.

Packing refers to the external containers used for transportation .

The shape of packing cases play a very important role in packing the cargo, and the nature of packing material to be used will depend upon the items exported

With regard to specification for the size, weight and strength, care must be taken to ensure that the weight of standard case does not exceed 50 Kg. for easy handling of the cargo.

Before packing and sealing the goods, it should be ensured that all the contents are properly placed in the case and the list of contents of packing notes should be prepared so that the buyer, the Customs authorities and the Insurance authorities can easily check the contents of each and every case.

The consolidated statement of contents for a number of case is called the Packing List, which should be prepared in the prescribed standardised format.

MARKING

Marking means to mark the address, number of packages etc. on the packets.

It is essential for identification purpose and should provide information on exporters' mark, port of destination, place of destination, order number and date, gross, net and tare (A deduction from gross weight made to allow for the weight of a container) weight and handling instructions.

It should also be ensured that while putting marks, the law of buyer's country is duly compiled with.

All shipping cases should be marked a number with special symbols selected by the exporters or the importers, so that the competitors cannot find out the details of the customers and the country of destination or supplier's country of despatch.

Care should also be taken to ensure that the marking conforms to those written in the invoice, insurance certificate, bill of lading and other documents.

The International Cargo Handling Co-ordination, Association has set out for the use of exporters a number of recommendations for the marking of goods carried by ocean-going vessels.

They are equally useful for sending goods by other modes of transportation.

POINTS TO BE KEPT IN MIND

The marks should appear in certain order. Essential data should be placed in oblong frames with lines 1.5 centimetres thick, and subsidiary information should be placed in another type of frame.

Declaration on large packages should be placed on two continuous sides, and for consignments bound together on a pallet, also on the top.

Handling instructions should be placed on all four sides. Similar packages, such as goods in sacks, should be marked on two opposite sides.

Lettering should be at least 7.5 centimetres high for essential data, and at least 3.5 centimetres for subsidiary data.

If the package is too small for such letter, other sizes may be used, but in the same ratio. The sizes of the symbols should also be in proportion to the size of the package and of the other markings.

Only fast dyes should be used for lettering. Essential data should be in black and subsidiary data in a less conspicuous colour; red and orange lettering should be reversed for dangerous goods only.

For food packed in sacks, only harmless dyes should be employed, and the dye should not come through the packing in such a way as to affect the goods.

Stick-on labels should only be used on individual package or parcel and all old labels should be removed.

Marking should be made by stencil or by branding or by pencil or brush without a stencil. If stencils are used, care should be taken that the letters and figures are perfectly legible to prevent confusion. This is especially true of the letters and figures --- B.R.P, O, G-G-D-C, H.N; 3-8 : 6-9 and 1-7.

The surface to be marked should be smooth and clean. If packages are to be bonded, they can be marked before this is done; the hoops should not however, cover the markings.

The figure should indicate the total number of packages making up the consignment and the consecutive number of the individual package. For example :1520/15/1 identifies the first package of a total number of 15 packets and 1520/15/15 the last one.

The name of the ship and the bill of lading number should be shown when this is possible. Handling instructions must appear in the language of the exporter and importer, and also, if possible, in the language of the countries where goods are to be handled en route or trans shipped.

NEW EXCISE PROCEDURE

All excisable goods exported out of India are exempt from payment of Central Excise Duties, for which two different procedures have been approved

1. Rebate of Duty on Goods Export Procedure Under this, the manufacturer has first to pay

the excise duty on goods meant for export and then claim refund of the same after exportation of such goods to countries except Nepal and Bhutan.

This is done under Rule 12 of Central Excise Rules. Under this rule, rebate of duty is granted for the finished stage as well as input stage.

Rebate of duty in respect of the excisable materials used in the manufacture of the exported goods shall not be allowed if the exporter avails of the drawback allowed under the Customs and Central Excise Duties Drawback Rules, 1995 or Modvat.

The following procedure should be followed while exporting under the rebate of duty.

Removal of goods under claim of rebate from a factory or warehouse without examination by the Central Excise Officers.

The exporters are allowed to remove the goods for export on their own without getting the goods examined by the Central Excise Officers.

Form AR4 in such cases should be prepared in sixtuplicate, giving all particulars and declarations.

The exporter shall deliver triplicate, and quadruplicate, quintuplicateand sixtuplicate copies of AR4 to the Superintendent of Central Excise having jurisdiction over the factory or the warehouse, within 24 hours of the removal of the consignment and would retain the original and duplicate copies for presenting along with the consignment to the Customs Officer at the point of export.

The jurisdictional superintendent of Central Excise examines the information contained in AR4 and verifies the facts of payment of duty and other certificates/declarations made by the exporter.

After he is satisfied that the information contained in the AR4 is true, he signs at appropriate places in the four copies of AR4 submitted to him and plus his stamp with his name and designation below his signature.

He would then dispose of the triplicate, quadruplicate, quintuplicate and sixtuplicate copies of AR4 as under:-

Triplicate: To there bate sanctioning authority viz. Maritime Commissioner of Central Excise or the assistant commissioner of Central Excise declared by the exporter on the AR4. This copy on the request of exporter may be sealed and handed over to the exporter / his authorized agent for presenting to the rebate sanctioning authority.

Quadruplicate: To the Chief Accounts Officer in the Commissionerate Headquarters.

Quintuplicate: Office copy to be retained by the Central Excise Officer.

Sixtuplicate: To be given to the exporter.

Procedure for exports under Central Excise Seal Where the exporter desires the sealing of the goods by the Central Excise Officers so that the export goods may not be examined by the Customs Officers at the Port/Airport of shipment.

He should present an AR4 application in sixtuplicate to the Superintendent of Central Excise having jurisdiction over the factory/warehouse at least 24 hours before the intended removal of the export goods from the factory/warehouse.

The Superintendent of Central Excise may depute an Inspector of Central Excise or may himself go for sealing and examination of the export consignment.

Where the AR4 indicates that the export is in discharge of an export obligation under a Quantity-based advance License or a Value-based Advance License issued under the Duty Exemption Scheme, in such cases the consignment is invariably examined and sealed by the Superintendent of Central Excise himself.

The Central Excise Officer examining the consignment would draw samples wherever necessary in triplicate.

He would hand over two sets of samples, duly sealed, to the exporter or his authorized agent, for delivering to the Customs Officers at the point of export.

He would retain the third set for his records. The export consignment is carefully examined vis-`-vis the description of goods, their value and other particulars/declarations on the AR4.

The Central Excise Officer verifies the facts of payment of duty and other certificates/declarations made by the exporter.

After he is satisfied that the information contained in the AR4 is true he would allow the clearances and also sign all the six copies of the AR4 at appropriate places and put his stamp with his name and designation below his signature.

The copies of AR4 are disposed of as under: Original and Duplicate: To the exporter for

presenting to Customs Officer at the point of export along with the export consignment.

Triplicate: To the rebate sanctioning authority i.e. Maritime Commissioner of Central Excise or the jurisdictional Assistant Commissioner of Central Excise, as declared by the exporter on the AR4. The Central Excise officer may handover this copy under the sealed cover on exporter's request.

Quadruplicate: To the Chief Accounts Officer at his Commissionerate Headquarters.

Quintuplicate: To be retained for records.

EXPORT UNDER BOND PROCEDURE

Under the second procedure known as "Exports Under Bond" goods can be exported out of India except to Nepal or Bhutan without prior payment of duty subject to the execution of the Bond with security / security for a sum equivalent to the duty chargeable on the goods to be exported.

This is done under Rule 13 of Central Excise Rules which deals with export of goods in Bond as well as utilisation of raw materials etc. without payment of duty for manufacture and export of excisable goods.