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Government of India
Ministry of Finance
Department of Revenue Central Board of Indirect Taxes & Customs
(Directorate
General of Export Promotion)
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Circular No. 07/2021-Customs
New Delhi, dated 22nd February, 2021
To,
All Pr. Chief Commissioners/ Chief
Commissioners of Customs/ Customs (Prev.),
All Pr. Chief Commissioners/ Chief
Commissioners of Central Tax/ Central Excise,
All Pr. Commissioners/
Commissioners of Customs/ Customs (Prev.),
All Pr. Commissioners/
Commissioners of Central Tax and Central Excise,
All Pr. Director
Generals/Director Generals under CBIC.
Madam/Sir,
Subject:
Clarification regarding payment of Agriculture Infrastructure and Development
Cess (AIDC) by EOU under various situations and amendment to Circular no.
35/2016-Customs dated 29.07.2016 – regarding.
Finance Bill, 2021 (15 of
2021) dated 01.02.2021, vide clause 115 has imposed a duty of customs, to be
called Agriculture Infrastructure and Development Cess (AIDC), on the import of
goods specified in the First Schedule to the Customs Tariff Act, 1975 at the
rate not exceeding the rate of customs duty as specified in the said Schedule,
for the purposes of financing the agriculture infrastructure and other
development expenditure. The said provision of clause 115 of the Bill has been
given immediate effect under the Provisional Collection of Taxes Act, 1931.
1.1 In exercise of the powers conferred by sub-section (1) of section 25 of
the Customs Act, 1962 (52 of 1962) read with clause 115 of the said bill,
Government of India vide Notification No. 11/2021- Customs dated 1st February,
2021 vide Sr. no. 19 read with serial no. 7 of the Annexure to the said
notification has fully exempted goods imported by EOUs/EHTP units/STP units
(collectively called EOUs) from the AIDC as the goods imported by these units
enjoy benefit of exemption from basic customs duty under notification no.
52/2003-Cus dated 31.03.2003.
1.2 In case of EOU selling finished goods
in DTA, BCD exempted on import of inputs used in such finished goods is to be
paid vide Notification No. 59/2017-Customs dated 30.06.2017 [amending by
notification no. 52/2003-Cus dated 31.03.2003.]. On payment of such BCD by EOU
at the time of clearance of finished goods it is treated as if no exemption of
BCD was allowed to the EOU under notification no. 52/2003-Cus dated 31.03.2003..
Once it is deemed that no exemption of BCD on inputs is allowed which were
imported under exemption notification no. 52/2003-Cus dated 31.03.2003., AIDC
exemption under Notification No. 11/2021- Customs dated 1st February, 2021 also
gets denied on such inputs and same is also required to be paid by EOU.
1.3 In addition to clearance of goods in DTA there are many situations like
clearance of inputs; capital goods; packing material suitable for repeated use
such empty cones, bobbins, containers; left over textile fabric or textile
material etc. or exit from EOU scheme. In such cases duty/tax of which exemption
under notification no. 52/2003-Cus dated 31.03.2003. was availed at the time of
import is required to be paid at the time of clearance. In case of clearance of
capital goods, applicable depreciation is allowed for denial of exemption.
Unutilized left over textile fabric or textile material is allowed to be cleared
into DTA on payment of duty leviable at the time of import but for the exemption
on transaction value as if the goods have been manufactured in that unit.
Exemption of duty/tax on goods imported under notification no. 52/2003-Cus dated
31.03.2003. is also denied on account of breach of various conditions of EOU
scheme. Once EOU is required to pay back BCD for which exemption was claimed and
allowed under notification no. 52/2003-Cus dated 31.03.2003. at the time of
import then exemption of AIDC, if availed, in all such situations shall also be
denied. Thus, EOU shall be required to pay AIDC in the manner of payment of BCD
against the goods imported under exemption notification no. 52/2003-Cus dated
31.03.2003. under various situations.
2. EOU/STP/EHTP are required to
maintain and also submit digital copy of Form – A to Circular no.
35/2016-Customs dated 29.07.2016, by 10th of month to proper officer, which
captures the summary of receipt, removal, returns and balance of imported goods
under notification no. 52/2003-Cus dated 31.03.2003.. Copy of Quarterly
Performance Report and Annual Performance Reports [QPR/APR] are also required to
be submitted to jurisdictional AC/DC of Customs as mandated by DGFT Public
Notice no. 36/2015-2020 dated 04.09.2018. Though QPR/APR contain details of
various activities including revenue contribution by EOUs but these are
reflected in consolidated manner and these reports may be a monitoring tool for
departmental officers with limitations. However, for effective and monthly
monitoring of exemption of duty/taxes availed under notification no. 52/2003-Cus
dated 31.03.2003., the said Form ‘A’ is amended and revised Form ‘A’ is annexed
herewith. Circular no. 35/2016-Customs dated 29.07.2016 may be treated as
amended to above extent.
3. Difficulties, if any, may be brought to the
notice of Board.
4. Hindi version will follow.
Encl: – Revised
Form ‘A’
Yours faithfully,
-S/d-
F.No. DGEP/SEZ/09/2017 (Part
III)
(Saroj Kumar Behera)
Additional Director
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