What is Factory Stuffing / Self-Sealing Permission for Export?
In simple terms, Factory Stuffing / Self-Sealing
Permission means that an empty container comes to your factory from the
nearest ICD or main port, you stuff the goods, and seal it yourself. You
don't need to send your goods to CFS for
loading. If the seal is not tampered with, no one will open your
container,
and it will be loaded directly onto the
vessel.
Previously, the factory stuffing process was done in the presence of a
jurisdictional excise officer who would check and
seal your container. However, from 2018, the physical presence of the
officer has been discontinued, and exporters now
need to seal the container themselves with an electronic seal. This new
process is called Self-Sealing Permission.
How Does the Self-Sealing Permission Procedure Work?
Once exporters are granted Self-Sealing permission, they need to buy
E-seals. Each E-seal contains a unique RFID chip
with electronic information. The normal cost for one E-seal is Rs.300,
and
they are generally sold in boxes containing
20-30 E-seals. You can only buy these from registered vendors.
After stuffing the container, you need to attach the E-seal. During this
process, you need to fill in all shipment
details on the online web module/application of the E-seal vendor, such
as
IEC code, SB number and date, seal number,
date and time of sealing, destination customs station for export,
container
number, truck number, etc. Once this
information is entered online, it cannot be edited, so be careful when
filling it out.
When your container reaches the port, a customs officer checks the
E-seal
with their device. If it displays a "Not
Tampered" message, all further formalities are processed smoothly. This
is
the overall process.
Pros and Cons of Factory Stuffing / Self-Sealing - Should you opt for it?
- No Multiple Handling: Generally, if you stuff goods at CFS, loading/unloading happens 2-3 times, and different people handle it, increasing the risk of damage to goods.
- Cost Saving: If an ICD or main port is near your factory, you can save on CFS storage charges. The overall saving is a minimum of Rs. 2000 to 3000 per container.
- Optimization of Container Space: If your trained labor regularly stuffs the goods, they know how to do it efficiently without wasting space.
- Long Distance from Factory to Port: If your factory is far from the port or ICD, the cost of transporting the empty container from the port or ICD to your factory will be very high, making factory stuffing unviable. Apart from this, there are no other major cons.
Cons :
Eligibility Criteria & Application Procedure for Self Sealing Permission
-
All exporters who file GST returns are eligible to apply for Self-Sealing
Permission. The initial validity of
Self-Sealing Permission is 5 years for manufacturer exporters and 1 year for
merchant exporters. After this period, they
need to reapply to extend the validity.
Initially, the application for factory stuffing permission was made at the GST/Excise office. However, as per the latest rules, the application should be made at the jurisdictional Preventive Customs office of the factory or warehouse where you intend to carry out factory stuffing.
After submitting the application, a customs officer will visit the factory for inspection to check if there is sufficient space to carry out factory stuffing.
Based on the factory visit report and NOC from the jurisdictional GST office, the Preventive Customs officer will grant Self-Sealing Permission.
Once permission is granted by the Preventive Customs office, you need to register it at the respective port from where you will export.