EOUs – procedure for imported goods
If procurement of indigenous goods is so complicated, can import of raw materials by EOUs be lagging behind? Strangely, the procedure for imported goods is rather simple. There is a Customs circular too to regulate the movement of non duty paid goods.
Here the EOU with an export turnover of Rs. 15 crores and above in the preceding financial year and having a clean track record as determined by the jurisdictional Commissioner of Customs or Central Excise, is allowed self warehousing – of course subject to an elaborate procedure.
The EOU
1. shall specify and intimate the Jurisdictional Asstt./Dy. Commissioner of Customs or Central Excise the particulars of person(s) who are nominated for examination and certification of re-warehousing.
2. On arrival of the indigenous goods at the premises of the unit, the authorized person of the unit shall verify the number/quantity/weight/description/value/duty paid etc. with the particulars mentioned in the application (ARE-3) and invoice. If no discrepancy is found on verification, the authorized person shall warehouse the goods and make entry in the account/register containing information relating to details of ARE-3 and invoice, date of receipt and warehousing, description of goods including marks and number, quantity, value, rate and amount of duty and shall affix his/her signature. The unit shall endorse certificate of warehousing on all copies of the application. The goods so warehoused can be used for the intended purpose. The unit shall, within one working day of arrival of goods, send original copy of ARE-3 to the Superintendent-in-charge of his unit, duplicate copy of ARE-3 to the consignor and retain triplicate copy of ARE-3 for his record.
3. On arrival of the imported goods at the premises of the unit, the authorized person of the unit shall verify the number/quantity/weight/description/value/rate and amount of duty etc. with the content mentioned in the bill of entry. If no discrepancy is found on verification, the authorized person shall warehouse the goods after making entry in the account/register containing information relating to details of bill of entry for warehousing, date of receipt and warehousing, description of goods including marks and number, quantity, value, rate and amount of duty and affix his/her signature. The authorized person of the unit shall issue certificate of warehousing on all copies of the bill of entry as prescribed below. The goods so warehoused can be used for intended purpose.
4. Ten percent of the consignments, subject to minimum of two, received in a month will be randomly selected, spread over the entire month, for verification by officer-in-charge after the receipt of ARE-3 and manual or electronic bill of entry, as the case may be. A report of verification and warehousing details shall be furnished by the officer in respect of consignments selected for verification in all copies of ARE-3 or bill of entry.
A lot of fraud and evasion have been detected in the EOU sector, but this certainly is not the way to deal with the problem, as this will only increase corruption and complaints.
CBEC CIRCULAR NO. 19/2007-Cus., Dated: May 3, 2007