EOUs - No Special Permission from Development Commissioners
A Mumbai Commissioner of Customs in a recent Public Notice had stated: (DDT 2534 - 09 02 2015)
The facility of duty exemption is available to the EOU/STPS/EHTP as per the Letter of Permission (LOP) issued by the Development Commissioner. However, quantity and goods of such class and description eligible for duty exemption are to be restricted as per the particulars mentioned in each Procurement Certificate (PC) issued by the Central Excise authorities.
Instances have come to the notice that procurement certificate have been issued even for those items which were not mentioned in the LOP. Further, many times import details do not correspond with the goods particulars mentioned in the PCs in terms of description and quantity.
The Development Commissioner of an SEZ seems to have a different view. The Development Commissioner of Visakhapatnam SEZ, who is the Development Commissioner for the two States of Telangana and Andhra Pradesh, in a letter to the Chief Commissioners of Customs and Central Excise states,
This is with reference to the letters received from EOUs for seeking permission to import and /or procurement of goods from DTA for their authorized activities permitted in the Letter of permission (LoP) in view of the insistence of such a permission from office of the Development Commissioner by the field formations of Central Excise.
An EOU may import and /or procure from DTA or bonded warehouses in DTA / international exhibition held in India, without payment of duty, all types of goods, including capital goods, required for its activities, provided they are not prohibited items of import under ITC (HS).
Issuance of Letter of Permission (LoP) and execution of Legal Agreement (LUT) as per Appendix 14-I-F of FTP, 2009-14 and duly accepted by the Development Commissioner authorizes an EOU to import and / or procure all types of goods including capital goods required for its activities mentioned in the Letter of Permission into their factory in terms of the above said rule position. However, the import/procurements shall be for the values mentioned in the said LUT and subject to fulfillment of the Customs & Central Excise rules and procedures.
In view of the above, he has requested the Chief Commissioners that the field formations of Central Excise may not insist for any special permission from the Development Commissioner, VSEZ for import and /or procurement of goods from DTA by the EOUs for their authorized activities mentioned in the Letter of Permission/ permissions given under broad banding granted by the Development Commissioner .
This is the difference between the Revenue Department and the Commerce Department.
A development Commissioner once remarked that the SEZ authorities are like a mother - wants the children to grow and be happy, while Customs is like a father - wants to discipline the children.