Circular No. 61/96-Cus.
F.No. 605/184/95- DBK
Government of India
Ministry of Finance
Department of Revenue, New Delhi
Subject: Amendment of Notification No. 81/95-Customs dated 31st March, 1995 relating to jobbing under Duty Exemption Scheme
Notification No. 81/95- Customs dated the 31st March, 1995 has been amended by Notification No. 87/96-Cus. dated the 18th November, 1996(Copy enclosed)1 to provide that jobbing operations would not be carried out in a Ware House under the provisions of Section 65 of the Customs Act. The amendment provides that jobbing on goods imported under Notification No. 81/95-Customs can be undertaken in accordance with the procedure prescribed in the Customs (Import of Capital Goods at Concessional Rate of Duty for manufacture of Excisable Goods) Rules, 1996.
2. A proviso has been added by the amending notification stating that where jobbing is undertaken by, or through Cottage Industry, and the operations are not carried out in any specific premises, the importer shall be repaired to execute a Bond with surety / security for complying with conditions specified in the notification. The purpose of this proviso is to permit jobbing operations by the importers undertaking in Cottage or Household sector, who are not under excise control, i.e. where jobbing is to be done at various unspecified locations, and no supervision by Central excise authorities is possible. An example of such operations shall be cases where material imported in terms of the notification is distributed to job-workers for doing some operations in their own premises. In all such cases monitoring of endues would require to be done by the customs authorities in terms of bond executed by the importer. While permitting clearance of goods in such cases, care should be taken to draw samples of the imported goods for testing/ comparison with the resultant products to be exported. The fact of imported material in the resultant product must be verified based on the result of the test/ comparison, and also the declaration and account of consumption submitted by the importer. Appropriate conditions may be incorporated in the bond to be executed for ensuring the compliance with this condition.
suitable Public Notice for information of the trade and Standing orders for field staff may kindly be issued.