OFFICE OF COMMISSIONER OF CUSTOMS NS-II & IV
JAWAHAR LAL NEHRU CUSTOM HOUSE, NHAVA SHEVA TAL: URAN, DIST.
RAIGAD, MAHARASHTRA- 400707
F.No.S/12-Gen-82/2015-16 AM(X) Date: 07.06.2017
Public Notice No. 71/2017
Sub: DTA clearance of goods procured by EOUs/EHTP/STP units from indigenous sources- charging of Duty – Reg.
Attention of all the importers, Exporters, Customs Brokers, and other stake holders is invited to the subject ‘DTA clearance of goods procured by EOUs/EHTP/STP units from indigenous sources- charging of Duty’ communicated by Board Circular No. 13/2017-Cus dated 10.04.2017 and Circular No. 74/2001 dated 04.12.2001.
2. Attention is drawn to Circular No. 74/2001-Cus dated 04.12.2001 issued on the above subject, in which, it was clarified that in case raw materials/ capital goods etc., procured from indigenous sources by EOUs/EPZ/SEZ/EHTP/STP units are transferred/ sold back to DTA except for the purpose of replacement, the deemed export benefits already availed of against such goods shall be required to be refunded back and that the export benefits shall be deposited through TR in the designated bank. It was further clarified that the goods will be allowed to be cleared to DTA only on production of a certificate from the jurisdictional Development Commissioner to the effect that such deemed export benefits are paid back. In cases, where no deemed benefits were availed, a certificate to this effect from the jurisdictional Development Commissioner shall be produced. Only after production of such certificate, these raw materials/ capital goods could be cleared on payment of appropriate central excise duty.Online GST Certification Course by TaxGuru & MSME- Click here to Join
3. It has been brought to the notice of the Board that following difficulties are normally being faced in getting the certificate from the Development Commissioner:
4. The matter has been examined by the Board. Attention is drawn to the amendment made to the Notification No. 23/2003-CE dated 31.03.2003 vide Notification No. 29/2007-CE dated 06.07.2007 whereby an ‘Explanation’ was added to the principal notification stating that “goods received from Domestic Tariff Area under the benefits of deemed exports under Paragraph 8.3(a) and (b) of the Foreign Trade Policy shall be treated as imported goods.” This amendment has been made for the purpose of levy of duty on goods manufactured by such procured raw material so as not to treat them at par with goods manufactured out of wholly indigenous material. This has been amply brought in para 12 of Circular no. 12/2008-Cus dated 24-7-2008. Therefore, goods procured domestically by EOUs/EPZ/SEZ/EHTP/STP units on which deemed export benefits have been availed shall be treated as imported goods and applicable Customs Duty has to be paid (after granting applicable depreciation on capital goods) at the time of clearance of such goods.
5. However, it appears that field formations are insisting on production of a certificate from the Development Commissioner as required under Circular No. 74/2001-Cus dated 04.12.2001 even after payment of applicable Customs Duties on clearance of capital goods procured from DTA by EOU/STP/EHTP units where deemed export benefits have been availed.
6. In partial modification to the Circular No. 74/2001-Cus dated 04.12.2001, It is clarified that the indigenous goods supplied to the EOUs/EPZ/SEZ/EHTP/STP units after availing the deemed export benefits are to be treated as ‘imported goods’ and accordingly, duty as applicable to the imported goods is liable to be paid. Once the goods are treated as imported goods and applicable Customs Duty is paid at the time of their transfer/ sale back into DTA or exit, there is no requirement of refund of the deemed export benefits availed on such goods or for the production of a certificate from the Development Commissioner regarding refund or non- availment of deemed export benefits at the time of clearance of such goods or exit.
7. Alternatively, the EOU/STP/EHTP units would also be allowed to clear the domestically procured goods or on exit, on payment of Excise Duty as per Notification No. 22/2003-CE dated 31.03.2003 only on production of certificate from Development Commissioner to the effect that deemed export benefits have been paid back or not availed, as the case may be, as envisaged in Circular No. 74/2001-Cus dated 04.12.2001.
8. Difficulty, if any may also be brought to the notice of Deputy / Assistant Commissioner in charge of Appraising Main (Export) through email / phones (email address: email@example.com, Phone No : 022-27244959,).
COMMISSIONER OF CUSTOMS
1. The Chief Commissioner of Customs, Mumbai Zone- II.
2. All the Commissioner of Customs, Mumbai Zone- II.
3. All Addl./Joint Commissioners of Customs, Mumbai Zone- II.
4. All Deputy/Asstt. Commissioners of Customs, Mumbai Zone- II.
5. The DC/EDI for uploading on the JNCH website.
6. Bombay Custom House Agent Association.
7. All Trade Associations.