Government of India
Ministry of Commerce and Industry
Directorate General of Foreign Trade
Policy Circular No. 10 /2009-14
Dated 12th October 2009
To
1. All Regional Authorities
2. All Development Commissioners of SEZs
3. All Commissioners of Customs
4. D/o Commerce, EOU Division
Subject: Clarification to enable procurement of spares beyond 5% by granite
sector EOUs.
Para 6.7 (a) of HBP (04-09) {para 6.6(a) of HBP (09-14)} allows granite sector
to take spares up to 5% of the value of the Capital Goods to quarry site.
Representations were received from EOUs in granite sector stating that some of
the Customs Authorities apply the 5% limit in regard to procurement of spares
also under Customs Notification 52/03.
- The matter was taken up with Department of Revenue, which has clarified vide
OM DGEP/FTP/62/2009-EOU dated 12.8.2009 as under:
“EOUs in granite sector are allowed to procure capital goods, which are required
in connection with processing and manufacture or production of articles of
granite for export. Besides these capital goods, these units are also allowed
certain specified quarrying equipments and spares up to 5% value of quarrying
equipments in each year. These quarrying equipments and spares are allowed to be
taken to quarry outside the unit. These quarrying equipments and spares are
specified under Annexure V of Notification No. 52/2003-Cus and 22/2003-CE both
dated 31.3.03. The capital goods and spares required in the EOU in connection
with processing and manufacture or production of articles of granite for export
are specified in Annexure I of the notification 52/2003-Cus.
Para 6.7 (a) of HBP v 1 {6.6(a) of HBP (09-14) } puts restriction of removal of
spares to 5% to quarrying site. Thus spares allowed duty free for quarrying need
to be restricted to that level. However, there is no limit for the spares
required for capital goods for use within EOU.”
- Accordingly, Department of Revenue has clarified that there is no limit for
spares required for capital goods for use within the EOU.
- This issues with the approval of Director General of Foreign Trade
Sd/-
(Hardeep Singh)
Jt. Director General of Foreign Trade
(File No. 01/92/180/223/AM 09/PC VI)