Govt. of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Directorate General of Export Promotion
New Delhi, the 25th February, 2009
Circular No. 10/2009-Cus
Sub: Certification of invoices for supply of goods from DTA to EOUs for claiming
deemed export benefits – reg.
Supplies of goods manufactured in India from Domestic Tariff Area (DTA) to
EOUs/STPs/EHTPs/BTPs are regarded as ‘deemed export’ and are eligible for the
deemed export benefits specified under Para 8.3 of Foreign Trade Policy (FTP)
[Para 6.11 (a) read with Para 8.2 (b) of the FTP]. DGFT has clarified that the
scope of such supplies for deemed export benefits is only for those goods which
are covered under para 6.6.1 of HandBook of Procedure (HBP) [DGFT’s Policy
circular No. 23/2008 dated 28.07.2008].
- The goods specified in the annexures to notification 22/2003-CE dated
31.03.2003 read with para 6.6.1 of HBP are allowed to be procured without
payment of duty against CT-3 form and following ARE-3 procedure. Goods received
under ARE-3 are verified and certified by the jurisdictional Customs /Central
Excise officer in terms of the Board’s circular No. 851/9/2007-CX dated
03.05.2007 and 19/2007-Cus dated 03.05.2007 for the units under self bonding
procedure. On many occasion, however, EOUs procure duty
paid/exempted/non-excisable goods. These goods though not procured under
CT-3/ARE-3, if otherwise eligible in terms of notification 22/2003-CE read with
para 6.6.1 of HBP, are also to be endorsed as a proof of supplies made, by the
officer-in-charge of EOU after verification and due accountal for deemed export
benefits. The onus of satisfying whether the goods being received in the EOU/STP
etc. have borne the applicable duties would be on the authority sanctioning
deemed export benefits (Development Commissioner or Regional Authority of DGFT,
as the case may be).
- An EOU/STP/EHTP/BTP unit seeking endorsement of an invoice from
Customs/Central Excise officer for such supplies shall, within one working day
of arrival of goods, file intimation along with duplicate copy of invoice to the
Superintendent-in-charge of the unit. On arrival of the goods at the premises of
the EOU, the authorized person of the unit shall verify the
number/quantity/weight/description/value/duty paid etc. with the particulars
mentioned in the invoice. The authorized person of the unit shall make entry in
the account/register containing information relating to details of invoice, date
of receipt, description of goods including marks and number, quantity, value,
rate and amount of duty and shall affix his/her signature. The unit is required
to keep accounts of these goods for its consumption in the manufacture of goods
for exports and DTA clearances, removal of these goods as such and closing
balance. The Superintendent-in-charge shall depute a bond officer to examine the
goods on the same day of receipt of intimation of arrival of goods. The bond
officer shall conduct physical verification of the goods within one working day
of receipt of intimation by the Superintendent-in-charge. The bond officer shall
countersign entry in the account/register for the goods found to be eligible for
procurement by the EOU in terms of notification No. 22/2003-CE read with para
6.6.1 of HBP. The bond officer shall submit a report to the
Superintendent-in-charge who shall make an endorsement on the copy of the
invoice as a proof of supply, its quantity and date of such receipt. A photo
copy of this invoice will be kept in the Range office for records.
- In respect of EOUs which are operating under self-bonding procedure,
attestation of ARE-3 shall be done by the office-in-charge for claim of deemed
export benefit, on the basis of verification and warehousing by the
EOU/STP/EHTP/BTP itself. However, in case of receipt of goods without following
ARE-3, the procedure as prescribed above shall be followed.
- Accountal, consumption and removal of goods received by EOU as prescribed
above, is to ensure that (i) deemed export benefit already availed is refunded
in terms of Board’s circular No. 74/2001-Cus dated 1.12.2001 in case of transfer
/ sale back of goods by EOU into DTA; (ii) to pay customs duty on the goods sold
in DTA by EOU which are manufactured out of goods on which deemed export
benefits availed (notification No. 23/2003-CE as amended by notification No.
29/2007-CE dated 06.07.2007); and (iii) such supplies are considered for
consumption in accordance with Standard Input Output Norms.
- This issues with the approval of Central Board of Excise & Customs.
- Wide publicity may please be given to these instructions by way of issuance
of Public/Trade Notice. Difficulties, if any, in implementation of these
instructions, may be brought to the notice of the Directorate General of Export
Promotion.
- Receipt of this circular may kindly be acknowledged.
Yours faithfully
(Y.S.Shahrawat)
Addl. Director General
F.No.DGEP/EOU/32/2007