Notifications 22/2003 CE and 23/2003 CE amended

By Vijay Kumar

Transfer of Capital goods to SEZ – Permission not required, intimation will suffice.

As per paragraph 2 of notification no. 22/2003 CE dated 31.03.2003, capital goods brought into EOU’s, SEZ units etc. could be transferred to another similar unit with the permission of Deputy Commissioner/Assistant Commissioner. Now, they can be done with prior intimation to the A.C/D.C.

Further, samples of manufactured goods can now be cleared to any other user industry or to a SEZ unit without payment of duty for display by giving intimation to AC/DC with a condition that the goods are returned within 30 days.

Diesel generating sets, captive power plants etc. procured by EOU’s, EHTP, STP can be utilized by other units.

Paragraph 9 of notification no. 22/2003 CE is amended to provide for utilisation of diesel generating sets, captive power plants, central air-conditioning equipments, uninterrupted power supply system, networking equipments, EPABX, Fax, Photocopier equipment, data transfer protocol equipments, and security system procured by an EOU or EHTP or STP to be utilised by other EOU’s, EHTP’s, STP’s belonging to the owner who procures the goods for development of software, data entry etc. Earlier, this facility was available only to STP units. This is now extended to EOU’s and EHTP’s.

Procurement of capital goods to be commensurate with the requirements

Exemption to captive power plants or captive generating sets should be commensurate to the actual requirement of the unit as recommended by the Development Commissioner/Designated officer. This requirement of “commensurate to the actual requirement of the unit” was not there in the notification earlier. Now, this amendment would attract “commensurate litigation”. However, the recommendation of the Development Commissioner/Designated officer is not required for status holders who include Star Export Houses.

Goods can be cleared from EOU’s, EHTP’s, STP’s to Advance Licence Holders without ARO’s and/or Back to Back inland letter of credit.

Now, goods can be cleared from EOU’s, EHTP’s, STP’s to Advance Licence Holders without the requirement of ARO’s and/or Back to Back inland letter of credit subject to the condition that the Advance Licence Holder fulfils all the Customs requirements as if the goods are imported except the requirement of a specific port and the quantity and value are debited in the Advance Licence or the DFRC by the AC/DC.

Notification no. 28/2005 CE, dated 20.05.2005

Import of Samples as Baggage – limit for gem and jewellery enhanced

As per notification no. 154/94 Cus., dated 13.07.1994, samples imported as baggage are exempted subject to a monetary limit of Rs.10000/-. Now, this limit is enhanced to Rs.3 lakhs or 0.25 per cent of the average of the exports in the last three years in case of gem and jewellery subject to the condition that a certificate is produced from the Export Promotion Council regarding the value of exports.

Re-import of cut and polished diamonds after certification/grading by specified agencies/laboratories – notification 55/2001 Cus. Amended.

The requirement of each piece of re-imported cut and polished diamond after certification/grading is reduced from 0.50 carats to 0.25 carat and the Central Gem Laboratory, Tokyo added to the list of specified agencies/laboratories.

Clearance of capital goods from SEZ to EHTP, STP, EOU’s or within the SEZ – no permission required.

As per notification no. 52/2003 Cus. Dated 31.3.2003, capital goods can be cleared from one unit in the SEZ to another or to an EOU/EHTP/STP with the permission of the AC/DC for further manufacture and export or test, repairs etc. Now, no permission is required, they can be cleared after intimating the officer. However, permission is required to take the capital goods outside the units for test, repairs etc. in the case of units other than status holders.

Samples of manufactured goods can be cleared to another unit in the SEZ or EOU/EHTP/STP for display without permission from the AC/DC but after intimating him.

Approval of the Development Commissioner/permission of the Customs or the Central Excise officer waived for personal carriage of gold jewellery or silver jewellery or platinum jewellery or precious stones or semi-precious stones or beads and articles for export promotion tours and temporary display or sale abroad is no longer required – mere intimation would suffice.

Diesel generating sets, captive power plants etc. imported by EOU’s, EHTP, STP can be utilized by other units.

Notification no. 52/2003 Cus is amended to provide for utilisation of diesel generating sets, captive power plants, central air-conditioning equipments, uninterrupted power supply system, networking equipments, EPABX, Fax, Photocopier equipment, data transfer protocol equipments, and security system imported by an EOU or EHTP or STP to be utilised by other EOU’s, EHTP’s, STP’s belonging to the owner who imports the goods for development of software, data entry etc. Earlier, this facility was available only to STP units. This is now extended to EOU’s and EHTP’s.

Import of capital goods to be commensurate with the requirements

Exemption to captive power plants or captive generating sets should be commensurate to the actual requirement of the unit as recommended by the Development Commissioner/Designated officer. This requirement of “commensurate to the actual requirement of the unit” was not there in the notification earlier. Now, this amendment would attract “commensurate litigation”. However, the recommendation of the Development Commissioner/Designated officer is not required for status holders who include Star Export Houses.

Notification no. 50/2005 Cus., dated 20.05.2005