Board notifies conditions, safeguards and procedures for supply of items like tags, labels from EOUs to DTA for use in the manufacture of export goods
As per Para 6.9 (h) of Foreign Trade Policy, 2004-09, Supplies of accessories including tags, labels, printed bags, stickers, belts, buttons or hangers to DTA Unit for export, will be counted for positive NFE. Now CBEC has prescribed the conditions and procedures for such clearances:-
1. The DTA exporter has to be registered under rule 9 of the Central Excise Rules, 2002
2. theDTA exporter shall furnish a general bond in a sum equal to the duty chargeable on the specified goods. If he is a manufacturer-exporter, he may furnish a letter of undertaking in lieu of a bond.
3. the specified goods after being used for the specified purpose shall be exported within six months from the date on which these were cleared from EOU unit or within such extended period as the Deputy or Assistant Commissioner of Central Excise may in any particular case allow.
Procedure:
(i) after furnishing a bond or an undertaking, a DTA exporter shall obtain certificates in Form CT-1 issued by the Superintendent-in-charge having jurisdiction over the DTA exporter in quadruplicate and on the basis of such certificate, DTA exporter may procure the specified goods without payment of duty for the specified purpose;
(ii) the DTA exporter who has furnished the bond or the undertaking shall ensure that the debit in bond account does not exceed the credit available therein at any point of time;
(iii) the DTA exporter, while filing application for issuing certificate in form CT-1 shall declare the manner of usage of these goods and shall furnish, name and address of office of the Superintendent in-charge and jurisdictional Deputy or Assistant Commissioner of Customs or Central Excise of the EOU unit;
(iv) the Superintendent-in-charge of DTA exporter shall also verify the correctness of the declaration made by DTA exporter that the specified goods to be procured are to be used for the specified purpose. He shall, after being satisfied about the correctness of declarations and after due diligence issue a certificate in form CT-1. One copy of CT-1 shall be forwarded to the jurisdictional Superintendent-in-charge of EOU unit, two copies shall be handed over to the DTA exporter and one copy shall be retained for office records;
(v) theDTA exporter will forward one copy of CT-1 to the EOU unit from where they intend to procure the specified goods without payment of duty and retain one copy for their record.
(vi) based on the certificate (CT-1) received, EOU unit shall clear the specified goods under an invoice by following the procedure specified in rule 11 of the Central Excise Rules, 2002;
(vii) theEOU unit shall intimate about such removal along with a self-attested photocopy of the invoice under which specified goods have been removed to his jurisdictional Superintendent-in-charge. The Superintendent-in-charge shall verify such removal of specified goods with the CT-1 received from the Superintendent-in-charge of DTA exporter ;
NOTIFICATION NO. Dated: August 2, 2007