Circular No. 35 dated 15^th June 2001

I am directed to invite your kind attention to Appendix 16-E of Handbook of Procedures, Vol. I wherein the guidelines for monitoring the performance of EOUs and EPZ/ SEZ units have been laid down. In the said Appendix, while explaining the method of monitoring a concept of concurrent joint monitoring by the Development Commissioner and the concerned Customs/ Central Excise Officers has been introduced for the first time. This concept is based on the reasoning that such joint review would give the field staff an opportunity to interact with the officials of Ministry of Commerce / representatives of the units and would enable us to monitor the export performance of the units at periodic intervals. Such joint monitoring would also give an opportunity to help resolve the problems/ difficulties being faced by the units. The idea is to remove all bottlenecks in export promotion efforts while not jeopardizing the interest of revenue. In fact such reviews should enable more effective monitoring of export performance & shall enable our officer timely action against the defaulters to safeguard revenue interests.

 2.           Accordingly it is requested that all necessary co-operation may be extended to the Development Commissioner in the matter so as to ensure that the performance of EOU/ EPZ/ SEZ units are effectively monitored and action is taken against the units, which have contravened the provisions of the Exim Policy/ Handbook and the Customs law/ Procedure. Further, such meetings should be utilised to bring the cases of misuse/ default to the notice of Development Commissioner for taking corrective action by way of amendment in the Exim Policy and Handbook etc., where required.

 3.     As success of such joint monitoring would depend upon the groundwork done by concerned Commissioner of Customs/ Central Excise before hand, it may kindly be ensured that our officers participate in such meeting with upto date information along with brief details of any misuse by the units concerned. Such meetings may be taken seriously and a report on the meeting may also be submitted to the Board within 7 days. Any suggestions to make this system of joint monitoring more effective are welcome and may be forwarded to the Board.

 4.     These instruction may kindly be brought to the notice all concerned by way of issuance of a suitable Standing Order/ Public Notice.

 5.           Difficulties, if any, faced in the implementation of the above instructions, may also be brought to notice of the Board at an early date.