Exemption to Import of Human Embryo - embryonic clarification needed
By TIOL News Service
NEW DELHI, FEB 17, 2014: BY amending notification 5/2014-Cus dated 17.02.2014, the following entry has been inserted in notification 12/2012-Cus -
(1)
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(2)
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(3)
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(4)
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(5)
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(6)
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"16A
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0511 99 99
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Human Embryo
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Nil
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-
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1A";
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The condition 1A reads -
"1A
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If the importer furnishes an undertaking to the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be, that the human embryo shall not be used for commercial purpose";
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The question is who is going to keep a track of whether the importer sticks to the "undertaking" that the 'human embryo' would not be used for commercial purpose?
Incidentally, it was only on 9th January, 2014 that the CBEC issued a Circular 01/2014 in the matter of classification of "Human Embryo" and it reads -
Reference have been received on issue of classification and importation of the 'Human Embryo' frozen in liquid nitrogen under the Customs Tariff Act, 1975. Doubts have been raised whether 'human embryo' is classifiable under heading 0511 or 3001.
2.The matter has been examined by the Board in consultation with Indian Council of Medical Research (ICMR). ICMR have clarified that 'Human Embryo' is placed under the category of animal embryos. Accordingly 'human embryo' will be classified under CTH 0511 9999.
3.Import Policy Norms finalized by DGFT for 'Human Embryos' vide notification No. 52(RE-2013)/2009-2014 dated 2nd December, 2013 as restricted and the import will be allowed subject to a NOC from ICMR.
The DGFT notification No. 52(RE-2013)/2009-2014 dated 2nd December, 2013 reads -
In exercise of powers conferred under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with paragraph 2.1 of the Foreign Trade Policy, 2009-2014, as amended from time to time, the Central Government hereby makes the following amendment in Chapter 5 of ITC (HS) 2012, Schedule 1 (Import Policy):
2. Human Embryo is classified under ITC (HS) Code 0511 99 99 of Chapter 5 of ITC (HS) 2012, Schedule 1 (Import Policy). Import of Human Embryo will be 'free' subject to a 'No Objection Certificate' from Indian Council of Medical Research (ICMR). Accordingly, the import policy under EXIM Code 0511 99 99 is revised as under:
Exim Code
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Item Description
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Policy
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Policy Conditions
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05119999
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Other
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Restricted
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Import of Human Embryo will be free subject to a 'No Objection Certificate' from Indian Council of Medical Research (ICMR).
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So, now an importer who wishes to import 'Human Embryo' will have to give a "NOC" from the ICMR and will be entitled to claim Nil rate of Customs duty upon giving an undertaking that the human embryo shall not be used for commercial purpose.
Shouldn't the exemption have been more specific inasmuch as the 'Description of the goods' should have been "Human Embryo frozen in liquid Nitrogen" rather than only using the words "Human Embryo" & giving scope for charging duty on the "liquid Nitrogen" in which the 'Human embryo' is frozen & also the 'container'!
Long back, when 'Frozen Semen' was unconditionally exempted by notification 17/2001-Cus, the frozen semen equipment like 'liquid nitrogen containers' was also exempted.
Perhaps, this is an exemption entry which has not yet been born!