The Food Safety and Standards Authority of India (FSSAI) has issued a clarification on import of food consignment for 100 Export/Re-export purpose or intended for captive use. This advisory was issued on 16th October, 2023.
It may be recalled that as per the Food Safety and Standards (Import) Regulations, 2017:
The customs authority need not refer the imported articles of food to Food Authority for clearance if such articles of food are meant for the following purpose, namely;
Regulation 7(3) of the Food Safety and Standards (Import) Regulations, 2017
a. export as per the extant instructions and export rejected or re- imported articles of food meant for re-export of the Government ;
b. the articles of food or ingredients or additives which are being imported by the manufacturers or
processors for their captive use or production of value added products for hundred per cent exports; or the consignments of articles of food or ingredients or additives imported by the firms or companies for use of their sister concerns or wholly owned subsidiary companies, to be used for hundred per cent export production subject to a defined relationship agreement between the two entities in this behalf;
Explanation 1– For the purposes of clause (b) the importer shall declare in FORM – 8 regarding the captive or end use of the imported product to the Customs Department at the time of filing the bill of entry, declaring that the imported articles of food is meant to be used by the importer for hundred per cent export or re-import of articles of food for export again as the case may be, and that no part thereof shall be supplied for domestic consumption.
Explanation 2– The facility under clause (b) shall not be applicable in the case of trading entities, which do not import such items for their
Hence, in light of this provision, food imported by manufacturers or processors for their captive use or for production of value-added products for 100% export/ re-export can avail the benefit of this exemption from import clearance. To do so, a declaration in form 8 must be made at the time of filing Bill of Entry (BoE) in ICEGATE.
If any importer is availing the benefit of the above provision but the BoE is still transmitted from ICEGATE to Food Import Clearance System (FICS), then the concerned FSSAI official may issue “Not in Scope” certificate. Such certificate will be issued after document verification with due diligence and without visual inspection, sampling and testing.
