Board issues clarifications on Foreign Trade Policy – just around the time when the next FTP is almost ready
Government had issued notification No. 50/2005-Cus. and 28/2005-C.E., both dated 20.05.2005 to implement the changes in the Foreign Trade Policy. After 8 months Board has now come up with detailed instructions- better late than never. The highlights of the Board instructions.
Time bound certification for de-bonding from EOU scheme: Assessee can assess the duty liability himself and inform Central Excise /Customs who should confirm the dues within 15 days and issue No Dues certificate within 15 days of payment.
DTA Sale: Similar goods cleared in the DTA would mean similar goods as defined in the Customs Valuation Rules.
Verification of Premises of EOU/EHTP/STP to be done through Customs or Central Excise on behalf of Development Commissioner.
Dispensing with the requirement of ARO for supply of goods by EOU/EHTP/STP units to advance License Holders - Henceforth the goods manufactured in EOU/EHTP/STP may be sold to Advance License Holders/ or DFRC holders on the basis of Advance License or DFRC itself. However, the jurisdictional Assistant Commissioner shall make endorsement on the reverse of the original copy Advance License/DFRC so as to clearly indicate the extent of the value already utilized. A copy of the advance license or DFRC after making endorsement shall be sent to the licensing authority and concerned Deputy Commissioner/Assistant Commissioner of Customs/Central Excise of the licensee.
Inter-unit Transfer of Manufactured goods: goods would be removed from one EOU/EHTP/STP to another under the cover of ARE-3. However, the goods to be transferred shall be properly examined by the bond officer and sealed in his presence before dispatch to the other EOU/EHTP/STP unit. The jurisdictional customs/ central excise officer in-charge (bond officer) of the receiving unit shall examine the seal on receipt of the goods in the premises of receiving unit and if the seals are found intact, issue necessary re-warehousing certificate. In case of discrepancy in seals the goods may be examined to verify proper receipt before issue of such re-warehousing certificate. The copy of the re-warehousing certificate along with examination report shall then be sent to the jurisdictional customs/ central excise officer in-charge of the transferor unit.
Sharing of Goods between EOU/STP units: Sharing of diesel generating sets or captive power plants, central air conditioning equipments, uninterrupted power supply system, net-working equipments, EPABX, fax, photocopier equipments, data transfer protocol equipments and security system between EOU/EHTP/STP units belonging to the same owner and irrespective of their location. However, such goods shall not be removed from the unit, which had imported or procured such goods
Import/procurement of DG Sets: recommendation of Development Commissioner need not be insisted and this facility may be permitted on the basis of simple intimation
Re-warehousing Certificate: It is the responsibility of bond officer to ensure that duty free goods are received in the premises of EOU/EHTP/STP units and are duly accounted for. Therefore, it is reiterated that re-warehousing certificate should be issued only after physical verification of the goods. What happened to SRP?
CT-3 and Procurement Certificate: In case any gross misuse/abuse of the EOU Scheme by any EOU/EHTP/STP is noticed or any evidence suggesting prima facie evasion of substantial duty by EOU/EHTP/STP comes to light, the CT-3 procurement certificate facility to the EOU/EHTP/STP may not be suspended with immediate effect. Instead the jurisdictional Deputy/ Assistant Commissioner may withdraw the facility of pre-authenticated CT-3 certificate for a period for six months at a time, and allow the unit to import/ procure goods duty free on the basis of individual CT-3 certificates/ procurement certificates subject to the condition that the unit furnished additional bank guarantee to cover the 100% duty foregone on such duty free import/ procurement. However, this executive order of the jurisdictional Deputy/ Assistant Commissioner may be reviewed or amended by the jurisdictional Commissioner of Customs or Central Excise, on receipt of any request from the unit. Board has further clarified that while deciding to withdraw the facility of pre-authenticated CT-3 certificate, proper care may be taken that the withdrawal is not done for mere procedural violations.
Re-import of rejected jewellery: if any export incentives have been availed on the export of goods, which have been re-imported, the same has to be paid back as the re-import has nullified the effect of export.
CIRCULAR NO. , Dated: January 13, 2006