Exemption to goods imported by EOUs - SION to be fulfilled
As per Notification No. 52/2003-Cus., dated 31.3.2003, the EOU has to pay, on demand, if the proper officer is not satisfied that the goods imported are used for production of export goods or cleared for home consumption within a period of three years. Now a condition is added that the proper officer has to be satisfied that the production is in accordance with the Standard Input Output Norms (SION) as notified by the DGFT. What happens if there is no SION? The kind department will allow 2% as wastage. What happens if the waste is beyond 2% and goods other than those given in the SION are used? Use of the goods will be allowed on the basis of self-declared norms and Development Commissioner will fix ad hoc norms within three months and the Board of approval will fix the norms finally. The definition of status holder has also been changed as given above.
Serial No. 5 of Notification No. , Dated July 6, 2007