Threat to All eBay International Sellers - ADC NOC Issue

[real.phoenix]

Dear Friends,

I have been selling Herbal Medicines and Skin Care products on eBay since last 5 years. I started from 1 order and in a week and grew to 50 orders per day in a span of 5 years.

Every year,  there is a customs issue at Mumbai where the shipments are detained and people selling herbal products are asked to provide an ADC NOC. This issue arises whenever there is a new Customs Commissoner who would ask for these details. Until January 2014, such issues got resolved by meeting the concerned officer, discussing our mode of business with them and showing the samples of the products that we sell on eBay. However, this time, the issue is just not getting resolved.  It has been more than 60 days and we are still unable to sell.

I have visited multiple times, the Mumbai Customs Office at Sahar, Ville Parle and Ballard Pier, Mumbai FDA Office, CDSCO Office at Mumbai and CDSCO Office at Ahmedabad and met all the highly placed influencial Govt. Officers to seek an answer to this issue. However, I have not received any correct response from any of these offices.

As per AYUSH, an ADC NOC is needed for every shipment containing chemical, medicines, herbal products or medical device. Hence, an ADC NOC is applicable to all the Dabur, Himalaya, Zandu, Baba Ramdev products etc.

Now, in order to get an ADC NOC, following things are needed: Drug License, Export License, Purchase Bills and Most Importantly, a COA giving the details that the Heavy Metals are within permissible limit. The product label should also not mention that it is for sale in India only.. Due to these requirements, it becomes impossible for a small scale online seller to obtain an NOC.

The ADC NOC can be waived off solely upon the discretion of the Customs Officer or an ADC himself can endorse that an NOC is not needed for such products.

However, the Mumbai Customs is not willing to waive off the ADC NOC requirement and at the same time the ADC asks for the COA to issue an NOC.

Due to this, it is now not possible for any eBay seller from Gujarat, Maharashtra, MP, AP or Goa to do a cross border trade of herbal products. Along with me, several other online  seller and eBay sellers have met the Customs as well as the CDSCO repeated number of times but there is no resolution so far.....

Since an ADC NOC is a legal requirement, sooner or later, it can impact other ports also.

Hence, take care before you venture into this segment...

Kind Regards,

Mustufa Baldiwala

[real.phoenix]

IndiaPost can be used for shipping commercial shipments. If this was not the case, then IndiaPost would not have a department called Business Post. I am shipping items internationally over last 5 years and I have frequently visited the FPOs at Mumbai and Delhi. If you go to the FPOs, you will find lot of online sellers as well as exporters using IndiaPost Registered Airmail and Registered Parcel service to ship their merchandise.

eBay sellers business is miniscule compared to the other exporters. Ahmedabad Business Post receives more than 1000 shipments daily from various textile traders who export their garments using IndiaPost.

Mumbai FPO receives more than 8000 shipments daily and Delhi FPO receives 12000 shipments on daily basis.

If postal channel was illegal for exports then these FPO would not receive so many items from trader every day.

IEC is not mandatory.  Yet, if you put it, then it is good.

The documents such as IEC or other Licenses are needed only when they want to check the legal correctness of the trader.

[2014arunsun]

Hi Love India2003/Real.Phoenix

Iam a new seller based out of chennai. 

A few of my packages got returned due to no ADC. Can you please let me know from where to obtain the ADC?

How long will the ADC be valid? Can I mention in the ADc that Iam an ebay seller and would want to sell on ebay and hence would require ADC.

[real.phoenix]

Meet the Customs Officer with your IEC, Purchase Bills, PayPal payment details and PAN Card.

ADC is a legal requirement but the Customs Officer may waive off for small shipments of herbal products.

You may request the officer to waive of the ADC requirement.

Process of getting ADC is simple but the ADC will ask for following docs to grant an NOC

1) Form 20B, 21B
2) ADC Sheet duly filled

3) Sample of product

4) COA

5) Purchase Invoice

6) Sales Invoice (on which the ADC will put an NOC)

[real.phoenix]

ADC NOC is per Shipment

If you have 5 shipments then you need to get an ADC NOC for all 5

It is valid only for one time

This is not a certificate. It is something like a gate pass for one time

[2014arunsun]

Hi Mustafa very much thanks for your response.

How to meet the customs officer and explain the case?

No one knows where the customs officer is.

Any leads that you could give.

[real.phoenix]

Meet the Customs Superintendent who is in charge of Postal Appraisal Section (PAS).

Chennai
Sr. Customs Supdt
Postal Appraising Dept., [AIR]
II Floor, Foreign Post Air Complex Meenambakkam
Chennai - 600027
Ph: 25254225

Carry following -

1) Photocopies and Original Purhase bills of few of your last purchases

2) Photocopies and Original Bank Statement where you receive PayPal NEFT payments

3) Photocopies and Original PAN Card

[2014arunsun]

Thanks Mustafa

I shall give it a try and see.

If it doesnot work out, probably I will stop doing this line of products..

[real.phoenix]

Don't stop. There would be issues in every line of business. One of the seller from Pushkar Rajasthan, is a very big exporter of garments. Few months back, the Delhi customs stopped his shipments containing cotton handprinted cloth.. He was asked to furnish the documents confirming that the dyes used in the cloth for printing were genuinely herbal and non-toxic!

Hence, such issues will apply to all businesses. Don't stop your business because of these problems.

[satishkc]

Arun any update on your meeting with the appraiser , Many of my parcels got returned today by customs stating IEC needed (we had mentioned IEC on every parcel) and remittance proof needed since the items are commercial.

Satish

[satishkc]

Hi Mustafa,

Do you have any idea about ebay icss partner quantium by singpost, their tariff seems to be on par with indiapost.

Tariff url:

http://deals.ebay.in/tnc/quantium_Services_TnC.html

Is this service still available, I have also written to ebay.

thanks,

satish