Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Subject: G&J Units in EOU/EPZ/ Jhandewalan Complex procedural relaxations
Representations have been received from Trade and Industry as also the Ministry of Commerce about the problems being faced by the Gem & Jewellery units in EOU/EPZ schemes in regard to the clearance of used capital goods and used packing materials into DTA. Other problems brought to the notice of the Ministry relate to temporary removal of parts and tools of machinery for repair and exchange of plain hand-made gold, silver and platinum jewellery from DTA against supply of gold, silver, platinum of the same purity and quantity.
2. The matter has been examined, and to address the above problems, amendments have been carried out in notification Nos.3/88-Cus, dated the 14.1.88, governing Special Export Oriented Complex, Jhandewaln, 277/90-Cus, dated 12.12.90, governing standalone 100% Gem & Jewellery EOUs and 177/94-Cus, dated 21.10.94, governing Gem & Jewellery units in Export Processing Zones vide notification No. 10/2000-Cus, dated 28.1.2000. A copy of the notification is enclosed for reference.
3. The sailent features of the amendments made are as given below:
1.Disposal of used packing materials by Gem & Jewellery units.
The Gem & Jewellery units can now clear the used packing materials, such as, cardboard boxes and polyethylene bags of a kind unsuitable for repeated use into DTA without payment of duty. Such clearance shall be allowed by the Assistant Commissioner of Customs subject to the conditions and limitations as may be imposed by him and subject to provisions of the Export and Import Policy, 1997-2002.
2. Disposal of capital goods
Gem & Jewellery units can now clear capital goods into DTA on payment of duty leviable on such goods on the depreciated value thereof and at the rate in force on the date of payment of such duty. The norms of depreciation shall be the same as applicable to the capital goods other than computer and computer peripherals as provided in the Board’s Circular No.43/98,dt.26.6.98. The depreciation in respect of capital goods shall be allowed for the period from the date of commencement of the commercial production of the unit or where such goods have been imported after such commencement, from the date such goods have come into use for commercial production, upto the date of payment of duty. Further, such capital goods may be allowed to be debonded under the EPCG scheme, permitting import of capital goods at 10% duty or at zero duty in terms of notification in force at the time of debonding.
3. Repairs, maintenance of machinery tools.
Gem & Jewellery units can now clear the parts and tools of machinery in DTA without payment of duty for repairs and return thereof. Such clearance shall be allowed on the basis of an undertaking by the unit and subject to such conditions as may be imposed by the Assistant Commissioner of Custom in this behalf.
4. Exchange of hand-made gold/silver/platinum plain jewellery. “
Gem & Jewellery units can receive hand-made plain gold, plain silver and platinum jewellery from any place in India in exchange of gold,silver or platinum of same purity and quantity in weight as that of gold or silver or platinum jewellery as the case may be. This facility would be subject to such condition as the Assistant Commissioner of Customs may prescribe in this regard. This exchange of hand-made jewellery shall be restricted only in respect of the plain jewellery. Further, the units shall not be eligible for any wastage or manufacturing loss against exchange of such hand-made plain jewellery. It is clarified that the DTA unit exchanging the hand-made gold/silver/platinum plain jewellery with the Gem & Jewellery units in EOU/EPZ/Special Export Oriented Complex, Jhandewalan, shall not be allowed any deemed export benefits.
4. Wide publicity may be given by issue of a Public Notice in this regard.
5. Kindly acknowledge receipt of this Circular, Difficulties, if any, faced in the implementation of the above changes, may
be brought to the notice of the Board at an early date.