Mumbai, July 1: The import of 6,000 metric tonnes of the best Italian marble worth over Rs 8.39 crore has been cleared by the Mumbai customs. According to information made available to The Financial Express by market sources, the importer, identified as Carrara Marble and Granite Industries, has got the consignment cleared by classifying it under a different chapter heading of the Customs Tariff Act.

Import of marble is banned unless it is for re-export. However, even in the case of re-export, the importer needs an import license. Earlier, importers used to bring in Italian marble using the duty-exemption entitlement certificate (DEEC) scheme. But since November 1996, this route was closed by the Directorate General of Foreign Trade (DGFT).

When importers earlier used the advance licensing route under DEEC, the imports bore a premium of Rs 2.5 lakh per metric tonne; under the new of marble imported where as the new route on which Carrara had intended to adopt would have cost the importer only about Rs 30,000 per mt, a cool saving of Rs 2.2 lakh.

In the normal course, marble falls under the chapter heading 25. Imports under DEEC were effected under the provisions of chapter heading 25.15. However, even this chapter restricts marble imports and lays down the condition that imports can be made only for re-export purposes. Moreover, imports require a licence. No import licenses have ever been sought for re-export purposes, trade sources claim. With the DGFT closing the DEEC route, importers found a new opening under the chapter heading 680221.09. This chapter permits the import of marble if it is described as `others' against a special import license. It also does not attract the conditions of re-export as prescribed in the Exim Policy.

To get around the import ban, the importer apparently labelled the marble consignment as "honed" or "planned" marble to classify it as some "other" form of marble. However, in the harmonised system of nomenclature, there is no mention of marble "honed" or "planned", both of which suggest that the stone was partially processed. When the first consignment imported by Carrara landed at Mumbai port, the customs staff at the docks, as well as the concerned customs group, objected to the imports saying that it was neither "honed nor planned" but just Italian marble in block and slab forms. They, therefore, refused to give the importer the benefit of chapter 68. However, a senior custom officer later ordered its clearance on the ground that ``he had personally examined the samples'' (File No S/26—240/97/Gr III of June 4, 1997).

The consignment was not only cleared but trade sources say that the importer flew down to Italy and booked over 200 containers capable of carrying 20 metric tonnes each of marble. One chartered ship is already reported to have unloaded 1,700 tonnes of marble blocks imported under the same chapter 68.Thus the entire intended imports are to the tune of over US $ 723,000. If the customs officer's clearance for such import consignments is taken as a precedent, trade circles say that the floodgates will open for more marble imports.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.