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Matter regarding destruction of scrap/ waste in the Export Processing
Zones
Circular
No. 18
dated
16th March 1998
I am directed to refer to notification No. 133/
94-Cus dated 22. 6. 94 governing 100% EOUs set up in various Export Processing
Zones/ Free Trade Zones. Under the above notification, seven earlier
notifications each governing 100% EOU in an Export Processing Zone, Were
rescinded. In this connection, the following doubts have been raised:
(i) Whether the
actions taken earlier under these seven Notifications which were issued for
seven Export Processing Zones, are deemed to have been done or taken under the
corresponding provisions of the current Notifn. No. 133/ 94-Cus which has
rescinded all these seven notifications.
(ii) Whether defective or
sub-standard computers and its parts which are not required (useful) for current
production and have also not been used can be destroyed out side the zone i.e.
whether the goods which were imported under an earlier notification could be
allowed destruction under the present notification No. 133/ 94-Cus.
(iii) Whether the goods, which are
permitted for destruction within the zones, can be taken for destruction outside
the zones, as the notification only provides for destruction within the zone.
2. The issue has
been examined by the Board. It is clarified that action taken under the
rescinded seven notifications will be deemed to have been done or taken under
the corresponding provision of the current notification No. 133/94 and goods,
which were imported under any one of the earlier notifications, could be allowed
destruction under present notification. Under para 7(ii) of notification No.
133/94-Cus the imported goods as such may be allowed destruction and under para
7(iii), the scrap/ waste obtained in the process of manufacture may also be
allowed destruction. In the cases where goods cannot be destroyed within the
Zone because of the safety reasons or Municipal Corporation�s regulations,
the Commissioner may permit destruction outside the Zone subject to such
conditions as may be prescribed by the Commissioner since this is only a
procedural requirement and non substantive in nature.
3.
Pending cases may be processed accordingly and the receipt of this letter
may kindly be acknowledged.
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