Circular No. 18/99-Cus
dated 29/4/1999

F.NO. 305/40/99-FTT
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and customs, New Delhi

Subject : EXIM Policy, 1997 2002, incorporating amendments upto 31.3.99 aligning of customs provisions – Regarding

The revised edition of the Exim Policy and Handbook of Procedures, incorporating amendments upto 31.3.99, comes into force from 1st April, 1999. The amendments made in them, necessitate certain changes in the existing circulars or issue of fresh instructions. These have been discussed below:

(i) As per para 8.35 of the EXIM Policy, samples made in wax models, silver models and rubber moulds can be exported under intimation to Development Commissioner, provided its value does not exceed Rs. One lakh in a year. The value of samples, so exported, shall not be counted towards discharge of Export Obligation. In this context, it is clarified that in such cases there may not be any receipt of the foreign exchange because the units may supply the samples free of cost to promote trade and formalities for GR may not be insisted upon and the samples may be allowed for export keeping in view the above changes Para (iii) of circular No 26/97, dt. 8.7.97, issued from F.No. 305/70/97 FTT, stands modified to the above extent.

(ii) As per para 8.89 of the HOP, personal carriage of Gem and Jewellery parcels by foreign buyers from all EOU and EPZ units and also from DTA units located in Calcutta, Chennai, Delhi and Mumbai is permitted.  In this regard, it may be stated that provisions already existed in Notification No. 3/88 -Cus, dated 14.1.88, in condition No. (xiiib) and Notification No. 177/94-Cus, dated 21.10.94, in condition No. (13) for personal carriage of Gem & Jewellery by the foreign bound passenger. Notification No. 277/90-Cus dt. 12.12.90 has been amended by Notification No 40/99-Customs, dated the 28th April, 1999 to incorporate the similar provisions. To operationalise this facility for the EOUs situated in municipal limits of Calcutta, Chennai, Delhi & Mumbai, either the parcel containing Gem & Jewellery can be taken up by the authorised couriers after appraisement and sealing alongwith the  Shipping bill from the EOU to the Airport for depositing the same with Assistant Commissioner at airport or one of the Customs Officers posted in the EPZ, who may not be in-charge of the said EOU, would be deputed to take the said export consignment, pass the Shipping Bill in the Zone and deposit the package with the AC at the airport for handing over to the foreign bound passenger. The procedure prescribed by the respective Commissioner for the personal carriage of jewellery from the EPZ units  may be aligned to the above principles, wherever necessary.

The personal carriage of the Gem & Jewellery by the foreign bound passengers may also be allowed  from the DTA units situated in the municipal limits of Calcutta, Chennai & Mumbai. The procedure for such personal carriage may mutatis-mutandis be like the procedure for the personal carriage of jewellery from the stand-alone EOUs for export mentioned above.

(iii) The provisions for re-import of goods within one year of date of exportation for re-export after repairs or remaking is provided at Sl.No 10 of notification 3/88 Cus, dated the 14th January, 1988, at Sl.No.11 of Annexure-1 of notification 177/94-Cus, dated the 21st October, 1994, and Sl.No. 10 of Annexure  to the notification 277/90-Cus, dated the 12th December 1990. The reimported jewellery is re-exported after carrying out repairs or re-making. During such process the weight of jewellery may marginally decrease because of polishing or increase because of soldering, addition or replacing component etc. It has been decided 2% weight variation may be allowed in case of re-imported jewellery re-exported after repairs and remaking.

(iv) Para 8.40 of HOP provides for export of gold/silver/platinum jewellery and articles thereof  through courier through the selected Airports only. To operationalise this, the notifications, governing Gem & jewellery units operating under EOU/EPZ  have been suitably amended. The procedure as prescribed in the Para 5 of CBEC Circular No. 22/98-Cus, dt. 27.3.98 issued from F.No. 305/60/98-FTT for export of sample through courier may be followed for export of Gem & Jewellery through courier, within the restrictions & limitations as given in the respective notifications and the EXIM Policy.

2. No time limit for utilisation of the raw materials has been prescribed for the units operating in the Zones, whereas the EOUs were required to consume/use the raw materials within one year as per section 61(1) (b) of Customs Act, 1962. The Handbook of procedures vide Para 9.10 (d), prescribes the maximum period of two years for all units subject to extension by the customs. Such extensions may be liberally given unless any malafide is suspected.

3. The public Notice/Trade Notice to give wide publicity may please be issued within two weeks of receipt of this circular.

(K.M. Ravichandran)
Sr. Technical Officer (FTT)

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