GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
New Delhi, the 24th September, 2015
NOTIFICATION No. 20/2015 -CENTRAL EXCISE (N.T.)
G.S.R
...(E).- In exercise of the powers conferred by sub-rule (3) read
with sub-rule (2) of rule 19 of the Central Excise Rules, 2002, the Central
Board of Excise and Customs hereby notifies the conditions, safeguards and
procedures for supply of items like tags, labels, printed bags, stickers, belts,
buttons and hangers (hereinafter referred as specified goods) produced or
manufactured in an Export Oriented Undertaking (hereinafter referred to as EOU)
and cleared without payment of duty to a Domestic Tariff Area (hereinafter
referred to as DTA) unit in terms of Para 6.09 (g) of Foreign Trade Policy,
2015-20, for the purpose of their exportation out of India (hereinafter referred
as specified purpose), namely:-
1. Conditions:--
- the EOU shall furnish a general bond in the Form specified in Annexure-I to
the Ministry of Finance (Department of Revenue)
notification No. 42/2001-Central
Excise (N.T.), dated the 26th June, 2001, as amended from time to time, to the
jurisdictional Deputy or Assistant Commissioner of Central Excise in a sum equal
to the duty chargeable on the specified goods, with 5% Bank Guarantee or as cash
security;
- the specified goods after being used for the specified purpose shall be
exported within six months from the date on which such goods cleared from EOU or
within such extended period as the Deputy or Assistant Commissioner of Central
Excise may in any particular case allow;
- the shipping bill filed by the DTA exporter shall contain the name and
I.E. Code of the DTA exporter along with the name and I.E. Code of the EOU as
supporting manufacturer;
- the DTA exporter shall apply for export incentives based on the Freight On
Board (FOB) value of the consignment exported minus the value of specified
goods.
2. Procedure to be followed by EOU manufacturing the specified goods:-
(i) after furnishing a bond alongwith Bank Guarantee or cash security, as the
case may be, EOU is permitted to clear goods without payment of duty to DTA
manufacturer or as the case may be, processer;
(ii) the EOU shall ensure that the debit in bond account does not exceed the
credit available therein at any point of time;
3. Export of goods:-
- the DTA exporter shall export specified goods as part of export goods. The
shipping bill filed by DTA exporter for export shall also contain name and
address of the EOU as supporting manufacturer, details of the specified goods,
like their description, quantity, value, etc., and reference of invoice number
under which the said specified goods were received from the EOU. The value of
the specified goods should not be less than the value of these goods removed by
EOU:
Provided that in case of shipping bill filed claiming the benefits under any
export promotion scheme, the FOB value of consignment exported shall exclude the
value of specified goods procured from EOU for the purpose of claiming such
benefits;
- the EOU will submit attested photocopy of the shipping bill (EP copy),
Customs attested copy of invoice and self-attested photocopy of bill of lading
or air way bill to the jurisdictional Central Excise and Customs Superintendent
for verification of export of the specified goods. The said Superintendent of
Central Excise having jurisdiction over EOU shall verify the details of export
of the specified goods with reference to the document submitted by exporter;
- the proof of export should be submitted by the EOU to the jurisdictional
Central Excise Office within a period of six months from the date of clearance
of goods from the EOU;
- on submitting certification of export of specified goods and proof of
payment received for the exported goods in which the said specified goods were
contained such supplies of specified goods shall be taken into account for
counting towards discharge of export obligation of the EOU by the Development
Commissioner.
4. Recovery of duty in certain cases:-
Where the specified goods are not received by the DTA Unit or are not exported
by the DTA exporter within the specified period or the extended period as
permitted by the Assistant or Deputy Commissioner in charge of EOU, the EOU
shall be liable to pay the duty leviable on such specified goods alongwith
interest and penalty, if any, in accordance with the provisions of the Central
Excise Act, 1944 (1 of 1944).
Explanation 1.- For the removal of doubts, it is hereby clarified that the
specified goods shall be deemed not to have been used for the specified purpose
even if any of the quantity of the subject goods is lost or destroyed by natural
causes or by unavoidable accidents or for any other reasons during transport
from the place of procurement to the DTA exporter and no wastage of the
specified goods shall be allowed and duty on such goods lost or destroyed shall
be payable by the EOU, alongwith interest and penalty, if any, in accordance
with provisions of Central Excise Act, 1944 (1 of 1944).
Explanation 2.- For the purpose of this notification,-
- "Export Oriented Undertaking" has the same meaning as assigned to "hundred
per cent. export oriented undertaking" in clause (ii) to the Explanation of
sub-section (1) of section 3 of the Central Excise Act, 1944 ( 1 of 1944);
- "Domestic Tariff Area" means India except Special Economic Zone and hundred
per cent. export oriented undertakings;
- Foreign Trade Policy, 2015-20 means Foreign Trade Policy, 2015-20 notified
by the Central Government in the Ministry of Commerce and Industry vide
Notification No. 1/2015-2020, dated the 1st April, 2015 and as amended from time
to time;
- Development Commissioner means Development Commissioner of Special Economic
Zone.
(F.No.DGEP/EOU/04/2015)
(Theodore Tigga)
Under Secretary to Govt. of India
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