Government of India
Ministry of Finance
Department of Revenue
(Central Board of Excise & Customs)
New Delhi, dated the 6th October, 2009.
Circular No. 900/20/2009-CX
To,
All Director Generals,
All Chief Commissioners of Central Excise (including LTU),
All Commissioners of Central Excise (including LTU).
Sir/ Madam,
Subject: Permission to bring duty-paid packing materials into export warehouse
under Rule 20 of Central Excise Rules – reg.
Representations have been received from the Trade and the field formations
seeking clarification on the issue as to whether or not the duty paid packing
material can be allowed to be brought in the export warehouse used for packing
of export goods. The clarification has been sought in view of Para 7.2 of the
Board’s Circular No. 581/18/2001-CX dated 29.06.01 which provides that duty paid
goods are not permitted to be brought into the warehouse. It has been stated
that packing materials are normally procured in small quantities and the
suppliers find it difficult to follow the bond procedure.
- The matter has been examined. As per the provisions of Rule 20 of the Central
Excise Rules, 2002, the goods can be removed from the factory without payment of
duty to a warehouse from where the goods are allowed to be exported. The Board’s
Circular No. 581/18/2001-CX dated 29.06.01 prescribes the procedure to be
followed for movement of goods to and from export warehouse. The purpose of
allowing export warehouse is to facilitate export from the country. It is a fact
that number of times packing material in small quantity is required at a short
notice and the supplier may not be interested to follow the detailed procedure
of removal of goods without payment of duty. Therefore, it has been decided that
duty paid packing material can be brought into the export warehouse, but
exporter would not be allowed to claim export benefit like rebate for the duty
paid on the said packing material.
- In view of above, in the above referred Circular, after para 7.2, following
is inserted,-
“However, an exporter desirous of bringing duty paid packing material required
for packaging of other material in the warehouse, may submit a written request
to the jurisdictional AC/DC of the Division, who may grant the permission for a
period of one year at a time. The exporter will maintain proper account of such
goods and shall not claim any export benefit like rebate of duty paid on the
said material.”
- Trade & Industry as well as field formations may be suitably informed.
- Receipt of this circular may kindly be acknowledged.
- Hindi version will follow.
Yours faithfully,
(Amish Kumar Gupta)
OSD (CX-8)
F.No.261/01/2008-CX-8