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Regarding Removal of Brass Borings/ Scrap to the Job Worker for Recycling
into Brass Bars
Customs
Circular No. 93 dated 20th December 2002
I
am directed to invite your attention to the Board�s Circular No. 15/ 96-Cus.
dated the 8th March 1996 on the above subject.
2.
It has been brought to the notice of the Board by an EOU manufacturing
engineering products that during the course of production of brass glands, a lot
of brass boring is generated which can be reused by getting it recycled into
bars through a local job worker. In this way unnecessary import of brass can be
avoided and also raw material cost can be kept under control. However, Board�s
Circular No.15/ 96 dated 8.3.96 does not permit clearance of waste and scrap
into DTA without payment of duty for conversion into ingots on job-work basis
and return thereof to the EOU. It has been pointed out that this provision has
adversely affected the production programme and export commitments of the EOU
and will make the project unviable as their product price will not be
competitive in the international market.
3. The matter has been re-examined by the
Board. Circular No. 15/96-Cus, dated 8-3-1996 referred to above was issued in
the year 1996 and since then the EOU/ EPZ Scheme has undergone significant
changes in respect of subcontracting of production and production process. Under
the present Export and Import Policy 2002-2007, the EOUs and units in EPZ are
allowed to subcontract 50% of the overall production of previous year in value
terms for job work in DTA with the permission of Customs authorities. Having
regard to this new Policy provision and considering the requirements of the EOUs,
it has been decided that the EOUs, may be permitted to remove scrap/borings
generated during the production process into DTA without payment of duty for
conversion into ingots/ bars and return thereof to the supplying EOU. For this
purpose, the procedure prescribed in Board�s Circular No. 65/ 2002-Cus. dated
7.10.2002 may be followed.
4.
The Circular No. 15/ 96-Cus. dated 8-3-1994 stands withdrawn.
5.
Wide publicity may be given by issue of a Public Notice in this regard.
6.
Difficulties, if any, faced in the implementation of above instructions,
may be brought to the notice of the Board at an early date.
Kindly
acknowledge receipt of this Circular.
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