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Govt. of India
Ministry of Finance
Department of Revenue
Central
Board of Indirect Taxes & Customs
Directorate General of Export Promotion
Circular No. 10/2018-Customs
New Delhi, Dated the 24th April, 2018
To
All Principal Chief Commissioners/ Chief Commissioners of Customs/Customs
(Preventive)
All Principal Chief Commissioners/ Chief Commissioners of
Central Tax and Central Excise
All Principal Commissioners/Commissioners of
Customs/Customs (Preventive)
All Principal Commissioners/Commissioners of
Central Tax and Central Excise
Madam /Sir,
Subject: Import by EOU/EHTP/STP/BTP without payment of duty by following Rule 5 of Customs (import of Goods at Concessional Rate of Duty) Rules, 2017 -clarification regarding.
Representations have been received from EOUs regarding difficulties faced on
imports due to requirement of submitting information to the DC/AC of Customs at
the Custom Station of importation by way of forwarding a copy of such
information by the Jurisdictional DC/AC of Customs under the Customs (Import of
Goods at Concessional Rate of Duty) Rules, 2017. It is further represented that
due to recent reorganisation of Customs formations and associated administrative
constraints, EOUs are not able to get approved/signed copy of said information
from the Jurisdictional DC/AC of Customs in time, for submitting the said copy
to the DC/AC of Customs at the Custom Station of importation for scheduled
imports.
2. In order to clarify the issue, it is pertinent to broadly recall the
procedure required to be followed by the EOUs as well as Custom officers under
Rule 5 of Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017.
The EOUs are required to provide information in duplicate regarding estimated
quantity and value of goods to be imported to Jurisdictional DC/AC of Customs.
EOU is also required to submit one set of the said information to DC/AC of
Customs at the Custom Station of importation who shall allow the benefit of
exemption notification to the importer on the basis of said information provided
to him. Thus, the Rule 5 of said rules, nowhere prescribes that information
provided by EOU under sub-rule(1)(a) of said Rule 5 is required to be approved
by Jurisdictional DC/AC of Customs on prior basis for imports. It appears that
the misconception is arising out of wrong interpretation of sub-rule(3) of
Rule 5 of the said rules wherein it has been prescribed that the Jurisdictional
DC/AC of Customs shall forward one copy of said information received from
importer to DC/AC of Customs at the Custom Station of importation. However, this
sub-rule nowhere makes this forwarded copy by Jurisdictional DC/AC of Customs a
prerequisite for allowing duty free import by the DC/AC of Customs at the Custom
Station of importation. Further sub-rule (4) of Rule 5 clearly mentions that
DC/AC of Customs at the Custom Station of importation shall allow the benefit of
exemption notification on receipt of copy of information from the importer under
clause (b) of sub-rule (1) of said rule 5.
3. In view of above, it is again
clarified that the importer EOU need not get prior approval of the information
submitted under sub-rule(1)(a) of Rule 5 of Customs (import of Goods at
Concessional Rate of Duty) Rules, 2017 from Jurisdictional DC/AC of Customs for
duty free import at the Custom Station of importation. Information submitted to
the DC/AC of Customs at the Custom Station of importation by EOU is sufficient
for importing goods without payment of duty under exemption notification No.
52/2003-Customs dated 31-3-2003.
4. The Board further prescribes that
Jurisdictional DC/AC of Customs of EOU/EHTP/STP/BTP shall ensure that the
intimation received under sub-rule (1)(a) of Rule 5 of the said rules are
properly scrutinized so that only eligible goods as prescribed under
notification No. 52/2003-Customs dated 31-3-2003 as well as those eligible as
per Letter of Permission (LOP) granted by Jurisdictional Development
Commissioner are imported duty free by the EOUs. After prompt scrutiny, one copy
of such information shall be forwarded to DC/AC of Customs at the Custom Station
of importation as prescribed under sub-rule (3) of the Rule 5 of said rules. The
DC/AC of Customs at Custom Station of importation would reconcile the Bill of
Entry against which goods were imported duty free by EOU on receipt of such
information from Jurisdictional DC/AC of Customs. In case of any discrepancies
noticed, the DC/AC of Customs at Custom Station of importation would inform the
Jurisdictional DC/AC of Customs for taking necessary steps to protect revenue.
5. Difficulties, if any, should be brought to the notice of the Board.
6. Hindi
version follows.
7. This issues with the approval of Central Board of Indirect
Taxes & Customs.
F.No:DGEP/E0U/16/2018
Yours faithfully,
(Saroj Kumar Behera)
Joint Director
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