Simplified procedure for EOUs – Board issues circular
To make the dreams of the Commerce ministry possible, the CBEC has issued a circular simplifying the procedure for EOUs.
facility of importing goods without payment of duty on the basis of pre-authenticated procurement certificates to such units which have physical export turnover of Rs.15 crore and above in the preceding financial year and have a clean track record. Earlier, such procurement certificate was required to be obtained from the jurisdictional office of Customs and Central Excise.
In order to redress the reported problems regarding delays in declaring a warehousing station, a time bound requirement has now been put in place for declaring warehousing stations. Under the new procedure, a site verification report has to be given within 7 days by the jurisdictional Superintendent to his superiors. Under the new guidelines, the entire procedure of verification will have to be completed in less than 30 days.
Permission to exporters to supply spares and components to the original buyer at any time within the warranty period of the exported articles. Earlier, the requirement was that such spares be supplied alongwith the export articles.
EOUs are now permitted to obtain duty-free export promotion materials like brochures, literature, pamphlets etc. for a value upto 1.5% of their export turnover during the previous year.
All EOUs have now been permitted to remove capital goods from their unit for test, repair etc. within the country without requiring any prior permission of the Customs and Central Excise Officers. They are only required to give a prior intimation and have to maintain proper accounts of removal and receipt of such goods.
EOUs have been permitted to effect inter-unit transfer of manufactured goods without prior permission. They only need to give prior intimation to the Development Commissioner and to the Customs & Central Excise authorities.
For the Gems & Jewellery exporters, the units are now allowed to export cut and polished, precious and semi-precious stones for treatment abroad. They can re-import such stones upon payment of duty on the fair cost of treatment and cost of materials used in such treatment