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"Self removal" in place of "customs bonding" for 100% EOUs - Customs - F. No. 305/105/85-FTTExtract "Self removal" in place of "customs bonding" for 100% EOUs F. No. 305/105/85-FTT Dated 10-6-1986 Government of India Ministry of Finance Department of Revenue Central Board of Excise Customs, New Delhi Subject : - 100% EOUs - Introduction of "Self-Removal" in place of "Customs Bonding" for 100% EOUs - Reg. The undersigned is directed to refer to your replies to Ministry's letter F.No. 305/105/85-FTT dated 28.10.1985 on the above subject and to say that the Board has decided that the Collectors may identify the units according to the following categories:- (i) Unit importing Capital Goods only - It is seen that certain Units use only imported Capital Goods but certain Units use only imported Capital Goods but otherwise depend on indigenous raw materials/components, etc. In this category, Units which grind and polish Granite slabs, process pulses etc., could be covered. It is felt that Units falling in this category can be freed from 100% supervision/and from posting an officer on cost recovery basis as the nature of Capital Goods used by these Units makes it difficult to divert such items. As such there may be no objection in relaxing requirements of physical supervision subject to the maintenance of suitable records by the Units so as to account for the imported Capital Goods and the indigenous raw materials which are procured duty-free. The Units would no doubt be subject to occasional surprise checks by the nearest Range/Divisional officer, in addition to periodical auditing of their records. (ii) Units having co-relation between raw materials and finished products - In certain Units, where only one or two basic raw materials are used for manufacture of the end products, and where a fairly accurate co-relation between the input and output is possible (after making an allowance for wastage as per prescribed norms), it may be possible to do away with physical supervision and to rely upon the records maintained by the Unit showing utilisation of the imported raw materials and the number of Units produced within a given time period. Though the Collectors have not indicated the Units falling in this category, it appears from the list of Units supplied by the Association for 100% EOUs that about 15 Units can be brought under this category. For example certain Units manufacture Wire Wheels, Xerographic Equipment's Systems, Freight Containers and Split Pulses. (iii) Unit located in close proximity. - It is seen that certain Units are located in close proximity, as for example, in NOIDA, and this factor could facilitate sharing of officers for purposes of supervision, etc. The costs could be shared equally thereby reducing the financial burden of the small Units. The operations of such Units could be supervised by two or three officers and they could inspect the records of the Units in the course of their inspection. In addition these units could be subjected to surprise checks by the nearest range or Divisional office. 2. You are requested to identify units falling within the aforesaid categories and issue instructions for doing away with physical supervision for the units falling in (i) (ii) above under information to Board. You may also work out a detailed procedure for surprise inspections periodical auditing of the records of such units and issue suitable instructions to the field formations. 3. As regards units in (iii) above, you may make necessary arrangements to group them for purposes of providing common supervising staff for units falling in a group and in such cases physical supervision of individual units in a group may be done away with. 4. You may however, issue suitable instructions for surprise inspection as well as periodical auditing the records of such units. 5. A report of the action taken may be furnished to the Ministry urgently.
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