New Delhi, the 2nd AUGUST, 2007
NOTIFICATION No. 31/2007-CENTRAL EXCISE (N.T.)
G.S.R…(E): In exercise of the powers conferred by sub-rule (3) read with sub-rule (2) of rule 19 of the Central Excise Rules, 2002, the Central Board of Excise and Customs hereby notifies the conditions, safeguards and procedures for supply of items like tags, labels, printed bags, stickers, belts, buttons and hangers (hereinafter referred as “specified goods”) produced or manufactured in an Export Oriented Undertaking (hereinafter referred to as “EOU unit”) and cleared without payment of duty to a unit in Domestic Tariff Area for use in the manufacture or processing of goods which are exported in terms of Para 6.9 (h) of Foreign Trade Policy, 2004-09 (hereinafter referred to as the “specified purpose”), namely:-
(i) the manufacturer or the processor intending to receive specified goods without payment of duty from an EOU unit for the specified purpose shall register himself under rule 9 of the Central Excise Rules, 2002 (hereinafter referred to as “DTA exporter”);
(ii) the DTA exporter shall furnish a general bond in the Form specified in Annexure-I to the Ministry of Finance (Department of Revenue) notification No. 42/2001-Central Excise (N.T.) dated, the 26th June, 2001 to the Deputy or Assistant Commissioner of Central Excise having jurisdiction over the DTA exporter in a sum equal to the duty chargeable on the specified goods, with such surety or security, as such officer may approve to cover the recovery of duty liability estimated to be involved on the specified goods. In case, the DTA exporter is a manufacturer-exporter, he may furnish a letter of undertaking in lieu of a bond in the Form specified in Annexure-II to the Ministry of Finance (Department of Revenue) notification No. 42/2001-Central Excise (N.T.) dated, the 26th June, 2001;
(iii) the specified goods after being used for the specified purpose shall be exported within six months from the date on which these were cleared from EOU unit or within such extended period as the Deputy or Assistant Commissioner of Central Excise may in any particular case allow.
2. Procedure to be followed by DTA exporter for procuring goods without payment of duty:-
(i) after furnishing a bond or an undertaking, as the case may be, a DTA exporter shall obtain certificates in Form CT-1 as specified in Annexure-I to this notification issued by the Superintendent-in-charge having jurisdiction over the DTA exporter in quadruplicate and on the basis of such certificate, DTA exporter may procure the specified goods without payment of duty for the specified purpose;
(ii) the DTA exporter who has furnished the bond or the undertaking shall ensure that the debit in bond account does not exceed the credit available therein at any point of time;
(iii) the DTA exporter, while filing application for issuing certificate in form CT-1 shall declare the manner of usage of these goods and shall furnish, name and address of office of the Superintendent in-charge and jurisdictional Deputy or Assistant Commissioner of Customs or Central Excise of the EOU unit;
(iv) the Superintendent-in-charge of DTA exporter shall also verify the correctness of the declaration made by DTA exporter that the specified goods to be procured are to be used for the specified purpose. He shall, after being satisfied about the correctness of declarations and after due diligence issue a certificate in form CT-1. One copy of CT-1 shall be forwarded to the jurisdictional Superintendent-in-charge of EOU unit, two copies shall be handed over to the DTA exporter and one copy shall be retained for office records;
(v) the DTA exporter will forward one copy of CT-1 to the EOU unit from where they intend to procure the specified goods without payment of duty and retain one copy for their record.
3. Procedure to be followed by EOU manufacturing the specified goods:-
(i) based on the certificate (CT-1) received, EOU unit shall clear the specified goods under an invoice by following the procedure specified in rule 11 of the Central Excise Rules, 002;
(ii) the EOU unit shall intimate about such removal along with a self-attested photocopy of the invoice under which specified goods have been removed to his jurisdictional Superintendent-in-charge. The Superintendent-in-charge shall verify such removal of specified goods with the CT-1 received from the Superintendent-in-charge of DTA exporter;
4. DTA exporter to maintain records:-
(i) on arrival of the specified goods at the premises of DTA exporter, the DTA exporter shall verify the specified goods with the contents mentioned in the invoice;
(ii) the DTA exporter, receiving the specified goods, shall maintain a simple account indicating the quantity and value of the specified goods received, the quantity exported, and the quantity remaining in stock, invoice wise and shall submit a monthly return in the format at Annexure-II to this notification to the jurisdictional Superintendent-in-charge by the tenth day of the following month.
5. Export of the goods:-
(i) the DTA exporter shall export goods along with the specified goods on the application in Form ARE-2 specified in the Annexure to notification No. 43/2001-Central Excise (N.T.), dated the 26th June, 2001 and the procedures specified in the Ministry of Finance (Department of Revenue) notification No. 42/2001-Central Excise (N.T.), dated the 26th June, 2001, shall be followed. While preparing application in form ARE-2, in Table 2 of ARE-2, the DTA exporter shall indicate the invoice No. and date in column (2) in addition to details specified in column (2). The column (13) will be left blank for specified goods received from EOU unit;
(ii) the shipping bill filed by DTA exporter for export shall also contain the details such as name and address of the EOU unit as supporting manufacturer, details including description, value etc. of the specified goods and reference of invoice number under which said specified goods were received based on the information contained in ARE-2. The value of the specified goods should not be less than the value of these goods removed by EOU unit:
Provided in case of shipping bill filed claiming the benefits under export promotion scheme, the FOB value of consignment exported shall exclude the value of specified goods procured from EOU unit for the purpose of claiming such benefits;
(iii) the DTA exporter will submit documents of proof of export containing self-attested photocopy of ARE-2 under which the specified goods were exported and self-attested photocopy of the shipping bill (EP copy) and self-attested photocopy of bill of lading or Air way bill to the EOU unit;
(iv) the EOU unit will submit these documents to his Superintendent in-charge for verification of export of the specified goods. The Superintendent in-charge of EOU unit shall verify the details of export of specified goods with reference to the CT-1 received from the Superintendent-in-charge of DTA exporter and invoice of EOU unit under which the specified goods were removed. After verification, the Superintendent in-charge of EOU unit will endorse ARE-2 and shipping bill that the specified goods have been exported;
(v) on submitting certification of export of specified goods and proof of payment received for the exported goods in which said specified goods were contained through normal banking channel, such supplies of specified goods shall be taken into account for counting towards fulfillment of positive Net Foreign Exchange Earnings (NFE) by the Development Commissioner.
6. Recovery of duty in certain cases:-
(i) where the specified goods are not received by the DTA exporter, the duty shall be recovered from EOU unit in the manner provided in rule 20 of the Central Excise Rules, 2002 alongwith interest and the provisions of section 11A and section 11AB of the Central Excise Act, 1944 (1 of 1944) shall apply mutatis mutandis for effecting such recoveries;
(ii) where the specified goods are not exported within the specified period or extension thereof by the DTA exporter, the DTA exporter shall be liable to pay the amount equal to the difference between the duty leviable on such goods at the time of removal from EOU unit but for the exemption contained herein, alongwith interest and the provisions of section 11A and section 11AB of the Central Excise Act, 1944 (1 of 1944) shall apply mutatis mutandis for effecting such recoveries:
Provided that if the specified goods on receipt are found to be defective or damaged or unsuitable or surplus to the needs of the DTA exporter, he may return these goods to the EOU unit from whom he had obtained these goods and all such goods returned shall be added to the non-duty paid stock of the EOU unit and dealt with accordingly. At the time of return of such goods, the procedure prescribed herein for removal of said goods from the EOU unit to the DTA exporter shall mutatis mutandis apply.
Explanation -For the removal of doubts, it is hereby clarified that the specified goods shall be deemed not to have been used for the specified purpose even if any of the quantity of the subject goods is lost or destroyed by natural causes or by unavoidable accidents or for any other reasons during transport from the place of procurement to the DTA exporter and no wastage of the specified goods shall be allowed.
Explanation– For the purpose of this notification-
(i) “Export Oriented Undertaking” has the same meaning as assigned to “hundred percent. export oriented undertaking” in clause (ii) to the Explanation of sub-section (1) of section 3 of the Central Excise Act, 1944 ( 1 of 1944);
(ii) “Domestic Tariff Area” means India except Special Economic Zone and hundred per cent. export oriented undertakings;
(iii) “Foreign Trade Policy” means the Foreign Trade Policy, 1st September, 2004-31st March, 2009″ published by the Government of India in the Ministry of Commerce and Industry vide notification No. 1 (RE-2007)/ 2004-09, dated the 19th April, 2007 as amended from time to time;
(iv) “Handbook of Procedures, Volume I” means Handbook of Procedures,Volume I, 1st September,2004 -31st March, 2009 published by the Government of India in the Ministry of Commerce and Industry vide Public Notice No. 1(RE-2007)/2004-09, dated the 19th April, 2007 as amended from time to time;
(v) “Development Commissioner” means Development Commissioner of Special Economic Zone.
(F.No.DGEP/FTP/69/2007-EOU & G&J)
Under Secretary to Govt. of India
Serial Number______/___-___ (Financial Year).
Certificate for procurement of specified goods without payment of duty from EOU
This is to certify that,
1. The DTA exporter M/s———————————————————(Name and address ) is/are registered under rule 9 of Central Excise Rules, 2002 in this Range, having registration number__________________________________has furnished a Bond in Form [Specific/General] for Rs___________________, which has been accepted by the Assistant Commissioner of Central Excise/the Deputy Commissioner of Central Excise in F.No. _______________________ on the _________day of the ___________(month) ___________ (Year).
The DTA exporter M/s ______________________________(Name and address) is/are registered under rule 9 of Central Excise (No.2) Rules, 2001 in this Range, having registration number__________________________________has furnished an undertaking in the form specified under Notification No. 42/2001-Central Excise (N.T.) dated 26.06.2001 to the Assistant Commissioner of Central Excise/the Deputy Commissioner of Central Excise, _____________________(Name of the Division or the Office) who has accepted the undertaking in F.No. _______________________ on the _________day of the ___________(month) ___________ (Year).
2. The above-said DTA exporter is permitted to obtain goods without payment of duty from an EOU unit for use in the manufacture or processing of goods for export as per details specified overleaf. This certificate is valid upto six months from the date of issue specified below.Name and Signature of the
Superintendent of Central Excise
(Address of the Range Office)
(To be printed overleaf)
To be filled by the DTA exporter
For Procuring Goods under the procedure specified under
Notification No. ——/2007-Central Excise (N.T.) dated the ——— July, 2007 issued rule 19 of the Central Excise Rules, 2002
Name and address of the EOU unit ___________________________________
Registration Number of the EOU unit _________________________________
Name and address of office of the jurisdictional Superintendent of Customs & C.Ex.—————————–
Details of the goods to be procured
I hereby declare that I have made a provisional debit of Rupees ……………………………………… (in both words and figures) in the Bond Account at serial No………………………………. dated …………… and on this day and after the abovementioned debit, the balance in the Bond Account is Rs. …………………………… .
Please find attested copy of the specific bond/Undertaking details of which is specified by the Superintendent of Central Excise,_____________________________ (address) overleaf.
(Dated signature of the Exporter(s)
or his/ their authorised agents
and their seal
Monthly Return in terms of Para 4 (ii) of this notification
|S.No.||Description of specified goods||
|Opening balance||Received||Total of columns (3) & (4)||Quantity exported|
Note.- Separate entries should be made for each variety or class of goods used.
I/We declare that I/we have compared the above particulars with the records (and) /books of my/our factory and that they are, insofar as I/we can ascertain complete.
Signature of DTA exporter
Name in capital letters