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100% Export Oriented Units - Permission to destroy waste generated during production - M/s. Arkay Exports, New Delhi - Customs - F. No. 305/125/85-FTTExtract 100% Export Oriented Units - Permission to destroy waste generated during production - M/s. Arkay Exports, New Delhi F. No. 305/125/85-FTT Dated 3-3-1986 Government of India Ministry of Finance Department of Revenue Central Board of Excise Customs, New Delhi Subject : 100% Export Oriented Units - Permission to destroy waste generated during production - M/s. Arkay Exports, New Delhi - Reg. The question regarding allowing of destruction of waste/scrap generated in 100% E.O.U. during their Manufacturing operation has been under examination for sometime now. It has been observed that certain types of waste materials such as Chindias, Trimmings etc. generated in the manufacture of garments which may be of very little or no commercial value, are causing congestion and fire hazards in the premises of the Units operating under 100% Export Oriented Units Scheme. It is considered that 100% EOUs, being licensed under Section 58 of the Customs Act, 1962, could be allowed the benefit of Section 65 (2) of the Customs Act, 1962. In effect, the waste or refuse which is destroyed, can be permitted clearance without payment of Customs Duty in terms of Clause (a) of Sub-section 2 of Section 65 of the Customs Act, 1962. However, that portion of the waste or refuse which relates to the manufacture of 'finished goods' which are cleared for home consumption (as 25% of the output and as 5% Rejects cleared into the Domestic Tariff Area) must be cleared on payment of duty in terms of Clause (b) of sub-section 2 of Section 65 of the Customs Act, 1962.
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