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TMI Blog100% EOUs /STP/EHTP units – Scheme & Procedures – RegX X X X Extracts X X X X X X X X Extracts X X X X ..... y creating additional production capacity. It was introduced as a complementary scheme to the Free Trade Zones/ Export Processing Zone (EPZ) Scheme introduced in the sixties, which had not attracted many units due to location restrictions. The exporters showed willingness to set up units with long term commitment to exports under Customs bond operations provided they had the freedom to locate them in places of their choice and given most of the benefits as provided to units set up in the Zones. 2. Over the years the Scheme has undergone various changes and its scope also expanded substantially as compared to the initial Scheme, which was basically for manufacturing sector with certain minimum value addition in terms of, export earnings. With the passage of time the Government introduced the Software Technology Park Scheme (STPI) and Electronic Hardware Technology Park Scheme (EHTP Scheme). The STP Scheme is nothing but a 100% EOU Scheme for the units undertaking the development of Software for Export, using Data Communication Link or in the form of physical exports including export of professional services. In other words, STPs are EOUs specializing in export of Software. The EHT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctor. For instance, the units with investment in plant and machinery of ₹ 5 Crore and above are required to achieve positive NFEP and export US$ 3.5 million or 3 times the CIF value of imported capital goods, whichever is higher, for 5 years. For electronics hardware sector, minimum NFEP has to be 'positive' and minimum EP for 5 years is US$ 1 million or 3 times the CIF value of imported capital goods, whichever is higher. NFEP is calculated cumulatively for a period of 5 years from the commencement of commercial production according to a prescribed formula. 5. The EOUs/STP/EHTP are licensed to manufacture goods within the bonded premises for the purpose of export. As per the policy, the period of bonding is initially for five years, which is extendable to another five years by the Development Commissioner. On completion of the bonding period, it is for the unit to decide whether to continue under, or to opt out, of the scheme. The imported capital goods are allowed to be warehoused for a period of 5 years. For other goods, the warehousing period is one year, which can be extended further by the Commissioner / Chief Commissioner of Customs. On an application being made by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hnology and the same are implemented through its Designated Officers. Chairman, C.B.E.& C. or his nominee is a member of the IMSC also. The availability of any benefit under Customs or Central Excise Acts or the notifications issued thereunder has, however, to be determined by the Commissioner of Customs or Central Excise having jurisdiction. Appropriate inter- Ministerial liaison is maintained for ensuring uniformity as far as possible in the Exim Policy provisions and the provisions built in the relevant Customs & Central Excise notifications. Customs Bonding of EOUs: 10. The premises of EOU/STP/EHTP are approved as a Customs bonded warehouse under the warehousing provisions of Chapter IX of the Customs Act. For this purpose, it is essential that the place where the unit is being set up is declared as a Warehousing station by the Chief Commissioner of the concerned Zone or the concerned Commissioner of Customs or the Commissioner of Central Excise under the provisions of Section 9 of the Customs Act. Hence, in the event a place where EOU/STP/EHTP is proposed to be set up is not declared as a Warehousing Station, the person intending to set up the EOU/STP/EHTP may approach the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii) Software technology products for export- Notification Nos. 138/91 and 140/91 Cus, both dated 22.10.91 and 1/95-CE, dated 4-1-1995. (iii) Electronic hardware products for export- Notification Nos. 96/93 Cus, dated 2.3.93 and 1/95-CE, dated 4-1-1995. (iv) Floriculture, Pisciculture etc. for export- Notification Nos. 126/94-Cus dated 3.6.94 and 136/94-CE, dated 23-2-1995. (v) Aquaculture for export- Notification Nos. 196/94 Cus dated 8.12.94 and 10/95-CE, dated 8-12-1995. (vi) Gold, silver and jewellery products for export- Notifications No. 277/90-Cus dated 12.12.90. (vii) Granite quarrying for export- Notification No. 58/2000-Cus, dated 8-5-2000 and 37/2000-CE, dated 8-5-2000. (viii) Repair and return of finished goods or partially finished goods - Notification No.133/94 and Notification No.134/94 Cus dated 26.2.94. General Conditions of Duty Free Import: 12. The facility of duty free import (extending exemption both from basic & countervailing duty) is subject to certain general conditions in accordance with the EXIM Policy and these are summed up as follows: (i) The goods should be imported into the EOU/STP/EHTP premises directly. However, Granite Quarrying units, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and transfer from one warehouse to another. However, it does not cover the differential duty amount against advance DTA sale for which a separate bond is to be executed. The bond is taken for an amount equal to 25% of the duty forgone on the sanctioned requirement of capital goods plus the duty forgone on raw materials required for 3 months. Surety or security equivalent 5% of the bond amount in the form of bank guarantee or Cash deposit or any other mode of security recognized by the Govt. of India is required to be given by the EOUs. In the case of surety, a letter from the person standing surety duly certified by a Chartered Accountant for solvency is also required to be submitted. (Reference: Public Notice 29/98 dated 5.5.98, 103/98 dated 13.10.98, 131/99 dated 10.12.99 and 70/2000 dated 5.6.2000) Import and Export Procedure: 14. With regard to clearance of import cargo, the EOUs/STP/EHTP are placed in a special category, eligible for fast track or green channel clearance through the Customs. Clearance of import consignments is allowed at the gateway port/ Air Cargo Complexes on the strength of procurement certificate issued to the EOU/STP/EHTP by the jurisdictional Assistant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... again at the time of giving 'LET EXPORT' if the seals are intact and not tampered with. The Courier Company shall within the stipulated period produce the proof of export to the Assistant Commissioner/Deputy Commissioner of Customs Division.(Reference: Public Notice 5/99 dated 8.1.99, 69/99 dated 20.7.99 and 2/2000 dated 5.1.2000) WAREHOUSING PERIOD AND EXTENSIONS THERE TO: As per section 61 of Customs Act, 1962 the imported Capital Goods may be warehoused for a period of 5 years and other goods for a period of 1 year. There is a provision for extension of the warehousing period for the first 6 months in respect of goods, other than Capital goods, by the Commissioner and thereafter, for any further period, by the Chief Commissioner. For extension of warehousing period for capital goods, Chief Commissioner is the prescribed authority. The facility of ware housing is a facility of deferred payment of Customs duty on Imported goods. As long as the goods are in the warehouse no duty is payable. EOUs/STP/EHTP seeking extension to the warehousing period are required to make an application to the Divisional Deputy/Assistant Commissioner at least one month in advance of the expiry of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wise unfit for use goods are required to be brought back subsequently, to the country. The units are also allowed to re-import part consignment/full consignment in case of failure of the foreign buyer to take delivery. 16. The EOU/STP/EHTP may also be allowed to receive free replacement of the goods imported and found defective, damaged or otherwise unfit for use prior to re-export of the same. However, such damaged, defective goods are required to be re-exported subsequently. In case the supplier of such goods does not insist for re-exportation, such goods are required to be either destroyed or cleared into DTA on payment of full customs duty. (Reference: Public Notice No.98/99 dated 4.10.99) Procurement of Goods Indigenously under CT-3 Procedure: 17. The EOU/STP/EHTP can procure goods from DTA without payment of Central Excise duty subject to following of the Chapter X procedure of erstwhile Central Excise Rules, 1944. Such procurement from DTA is against CT-3, which is issued by the Superintendent of Customs in charge of the EOU on an application made in prescribed format ( Annexure A5 ). Such goods are required to be brought directly from the manufacturer /warehouse into the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 16.7.99 and 61/2000 dated 1.6.2000) Valuation of Goods Sold in DTA: 19. Section 3 of the Central Excise Act, 1944 provides that the valuation of goods manufactured in the EOU/STP/EHTP and cleared into DTA is to be done in accordance with the provisions of the Customs law. Thus, when the invoice price of the goods under assessment is in the nature of transaction value, such invoice value can be accepted. (Reference: Board's Circular No.23/84 Cx.6 dated 29.5.84 and instruction issued vide file No.268/335/92/CX.8 dated 17.8.94 and Circular No.330/46/97-CX dated 20.8.97) Levy of Central Excise Duty on Goods Produced or Manufactured by EOU/ STP/EHTP and Cleared into Domestic Tariff Area: 20. In terms of section 3 of the Central Excise Act, 1944, the excise duty leviable on goods manufactured in an EOU/STP/EHTP unit and cleared into Domestic Tariff Area is the amount equal to the customs duty leviable under section 12 of the Customs Act, 1962 or under any other law for the time being in force on like goods produced or manufactured outside India, if imported into India. Thus, the measure of excise duty leviable on goods manufactured in EOU/STP/EHTP is worked out exactly in the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale of scrap/waste/remnants beyond this limit, it is allowed on payment of full duty. Rejects up to 5% of FOB value of export may be sold in DTA with prior approval form Assistant / Deputy Commissioner. For sales above 5% of FOB value of exports, approval of the Development Commissioner is required. The term "rejects" would cover such products which have a definite manufacturing defect and are unfit for exports, as per the declaration of the unit concerned. Thus, it is the responsibility of the unit to prove that the goods in question are rejects only and they should produce a certificate from the competent person indicating that the required quantity / specification has not been achieved due to flaws of technicality or techniques or because of quality of goods and the materials used, by the unit in the manufacture of the product. Para 6 of the Board's Circulars No. 49/00 - CUS dated 22.5.2000 provides the, guidelines regarding removal of rejects For details, Board's letter F.No. 305/90/85/FTT dt:30.1.1986 may also be referred to. As for DTA clearance of goods manufactured by the EOUs which are not excisable (e.g. cut flowers) the duty on inputs and consumables etc. procured/i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lear waste and scrap in Domestic Tariff Area on payment of concessional rate of duty or full rate of duty as explained in detail in paragraph 22 above. Norms for scrap/ waste material for export products under EOU have been prescribed in Appendix 41 of the Handbook of Procedures, Vol. I. In case, scrap, waste and remnants are destroyed with the permission of the Assistant Commissioner/Deputy Commissioner, no duty is payable on them. Further, if waste scrap and remnants are not excisable, the unit would be required to pay duty of customs on the imported goods contained in such waste, scrap and remnants in terms of Board's Circular 18/98 Cus dated 16.3.98. In case the waste scrap and remnants contain indigenous raw materials/inputs procured without payment of central excise duty, the same shall be cleared on payment of excise duty in terms of Board's Circular 330/46/97 Central Excise dated 20.8.97. (Reference: Public Notice No.66/2000 dated 1.6.2000) 29. In case of gem & jewellery EOUs, scrap, dust or sweepings generated in the unit is allowed to be forwarded to the Government Mint or Private Mint for conversion into standard gold bars and return thereof to the unit subject to the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods manufactured and produced by 100% EOU/EHTP/STP units and cleared into DTA, in accordance with the Notification No.2/95-CE dated 4.1.1995, would be at a concessional rate, which is equal to 50% of each of the duties of Customs. It is further clarified in the said circular that each of the duty leviable on import of like goods should be worked out first and thereafter, 50% of the amount of each of the duty so calculated, taken together should be collected as excise duty on such goods produced by 100% EOU/EHTP/STP units are cleared into DTA. For the purpose of clarification the detailed calculation shown in Public Notice No. 33/2001 dt. 15.3.2001 may be referred to. 30. Clearance of Samples: The EOUs are allowed to supply or sell in DTA samples of goods produced by them for display or market promotion up to 1% of the previous year's exports or maximum of ₹ 10 lakhs in the case of new unit going into production on payment of applicable duties. The units are also allowed to take out samples into DTA without payment of duty on returnable basis for the purpose of display/market promotion. In such cases, the procedure prescribed for sub-contracting is required to be followed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be brought back to the unit and accounted for. 4. A general permission by the Assistant/Deputy Commissioner of Customs whenever requested may be given for a period of 6 months at a time to temporarily take out and bring in the said goods of specified employee during the period. The circular 17/98 dated 16.3.98 was modified by CBEC vide Circular 84/2000 Cus dated 16.10.2000 wherein it is clarified that the facility of taking Laptop Computer and Video Projection System shall be available only to 100% EOUs engaged in the development of Software. (Reference: Public Notice 30/98 dated 12.5.98 and 70/99 dated 21.7.99) Sale of Surplus/ Unutilized Goods: 33. The EOU/STP/EHTP are allowed to sell surplus/unutilized goods, imported or procured duty free in DTA on payment of duty on the value at the time of import/procurement and at rates in force on the date of payment of such duty, in case the unit is unable for valid reasons to utilize the goods. The permission for such DTA sale is given by the jurisdictional Assistant Commissioner /Deputy Commissioner of Customs. Likewise, obsolete/surplus capital goods and spares can either be exported or disposed of in the DTA on payment of applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he payment of additional duty of customs subject to following the provisions of EXIM Policy and Handbook of Procedures Vol.-1, 1997-2002 and conditions of notification No. 28/2001-CE dated 16-5-2001. (Reference: Public Notice 70/2001 dated 21.6.2001) Sub-Contracting: 37. The EOUs, other than Gem & Jewellery units, are allowed to sub-contract part of their production process in DTA. These units may also sub-contract up-to 50% of production for job-work in DTA. Sub-contracting of both production and production process are also allowed to be undertaken through other EOU/EPZ/EHTP/STP/SEZ units on the basis of records maintained by the unit. 38. For sub-contractual work performed outside, the units are required to take annual permission from the Customs authorities as per application Annexed at A-8 and are required to furnish information, such as, processes to be carried out on sub-contract basis and the name, address of the subcontractor etc. After getting the permission, the unit is required to follow the Receipt Challan/ Dispatch Challan (RCDC) procedure. Under this procedure, at the time of removal of goods, the unit prepares Dispatch Challan in Format A-9 giving information, suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 17.11.99, 55/2000 dated 5.5.2000, 66/2000 dated 1.6.2000 and 99/2001 dated 28.9.2001 may also be referred) A. Temporary Removal of Goods: The facility of sub contract has been made available after recognizing the fact that it may not be practicable for the unit to have all the manufacturing processes within themselves. So also it facilitates in cutting costs and renders high quality export product. At the same time, certain safe guards have been built in the relevant notifications so as to prevent any misuse of the facility by way of diversion of duty free goods into the DTA. The EOUs are allowed to sub contract in the following two situations. i) Sub contract part of their product process, which may also involve change of form or nature of the goods. On the basis of the permission of the customs, sub-contract up to 50% of the production for Job work in DTA is permitted. ii) Sub contract part of the product. In both these situations the sub-contracting may be either through units in the DTA or through other EOUs. The relevant duty exemption notifications indicate the provision for sub contracting. The units working under the provisions of notification No 53/97-Cus dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous raw materials would not be allowed to sub contract part of their production for job work, as this would convert the units, to trading units rather than manufacturing units and the accountal of the material becomes difficult. (C.B.E.C Circular no. 59/98 Cus dtd.12.8.1998, 67/98 Cus dtd.14.09.1998, 30/99 Cus dtd.25.5.1999 and Circular no. 74/79 Cus dtd.05.11.1999 are relevant as they relate exclusively to the area of sub contracting). B PROCEDURE FOR SUB CONTRACTING: The EOU/EHTP units seeking permission for sub contracting should make an application, in triplicate, to the Deputy/Assistant Commissioner of Customs along with the consent letter from the EOU/DTA unit. The application must indicate the nature of activity for which the goods are proposed to be sent out, the reasons for the job work, the percentage of waste, the maximum value of goods which would be at the job worker's premises and other related details including the input-output ratio where required. Based on the details furnished in the application and after scrutiny of the data furnished, the Deputy/Assistant Commissioner may permit the unit to undertake sub contract subject to the unit maintaining the records/ ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n by the unit, the job work permission will be granted on annual basis unit wise. The unit ii turn will approach the jurisdictional Range Superintendent on case-to-case basis and obtain necessary permission after fulfilling the conditions prescribed for carrying out Job work. Further, the unit availing the facility of Blanket Permission has to submit monthly report to the Deputy Commissioner through the jurisdictional Superintendent indicating the details of goods sent and received in respect of job work to different Job Workers along with the wastages generated at the job worker premises. The format of the Challan for movement of goods/inputs etc., is enclosed in the Annexure at A-9.(Reference: Public Notice 48/96 dated 23.5.96, 99/97 dated 5.12.97, 52/98 dated 8.7.98, 117/98 dated 24.11.98, 68/99 dated 16.7.99, 124/99 dated 17.11.99, 55/2000 dated 5.5.2000, 66/2000 dated 1.6.2000 and 99/2001 dated 28.9.2001) Inter-unit transfer: 43. An EOU/STP/EHTP is allowed to transfer imported or manufactured goods to another EOU/EPZ/STP/EHTP/SEZ unit. The officers in charge of the EOU/STP/EHTP supplying the material and the EOU/STP/EHTP receiving the material are expected to keep a watch on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment Commissioner /Director STPI/STP should be enclosed. The recipient unit will file a Yellow Bill of Entry (Into Bond) based on the particulars mentioned in the Shipping Bill. The Shipping Bill or the Bill of Entry as the case may be is assessed by the concerned Range Superintendents. The receipt of the goods in the Bonding premises will also get inspected and there after the Range Officer of the recipient unit will issue the Re-ware housing certificate. This certificate should be sent to the Range officer of the supplying unit through Registered Post. To facilitate the trade to get the goods bonded in the Bonded premises expeditiously, the procedure of Into Bond Bill of Entry being counter signed by the Deputy/Asst. Commissioner has been dispensed with In respect to Inter Unit Transfers effected between the Ranges of the Customs Division, Bangalore and the CWCs situated in Bangalore Customs Commissionerate. However, in case of the Inter Unit Transfers effected from other Commissionerates, the Bill of Entry has to be countersigned by the Deputy/Assistant Commissioner subsequent to assessment by the concerned Range Superintendents. (Reference: Public Notice 4/99 dated 8.1.99 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses incurred by the Government for posting of Customs staff at its premises to supervise their operations. The cost of posts created for EOU/EHTP has been determined at an amount equivalent to the actual salary and emoluments of the staff deployed i.e. the average pay and allowances including D.A., H.R.A., C.C.A. etc. The EOU/EHTP pay in advance the cost recovery charges determined for the entire year. Generally, one Customs officer supervises the functioning of four to five units and the cost recovery charges are shared amongst them. (Reference Board's instruction F. No. 11018/63/87-Ad IV, dated 11-1-88 and F.No.305/105/85-FTT, dated 10.6.86) Supervision of EOU/STP/EHTP by the Customs/ Central Excise: 48. Operational flexibility has been provided to EOU/STP/EHTP by amendment of "Manufacture and Other Operations in Warehouse Regulations, 1966". The EOU/STP/EHTP no longer carry out manufacturing operations under physical supervision of Customs officers. The procedure for double locking of the warehouse, control over the issue of imported goods etc. has been abolished. All the movements from and to the unit like clearance of raw materials/ component to the job workers pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer will certify for allowing the shipment for Export and give the details of shipping bill number of vessel etc., and return the triplicate copy to the exporter, who will produce it to the inspector in-charge of the EOU/EHTP, as proof of export. PROCEDURE FOR RE-EXPORT OF DEFECTIVE GOODS: 50A) The exemption Notifications granting Customs duty Exemption on the Import of capital Goods, Raw materials, components etc., required by the EOU/EHTP/STP provide for Re-Export of defective parts, components etc., Permission in this regard is to be given by the Deputy/Assistant Commissioner, subject to conditions prescribed by him. For this purpose the Exporter is required to give the copy of the consent letter of the supplier indicating his willingness to receive the returned goods and also the GR waiver where ever applicable. These documents are to be filed in addition to the copy of Bill of Entry at the time of Original Import and also the certificate from the Qualified Engineer of the unit indicating that it is not possible to rectify the defect or re-condition, either in the unit, or elsewhere in India. The unit may be allowed to receive free replacement of the goods wherever found d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NFEP and export performance as prescribed in Appendix 1 of the EXIM Policy.The provision concerning trading units in paragraph 9.21 is in lieu of the earlier paragraph, which dealt with setting up of private bonded warehouses in the EPZs. It may be noted that in case of these units the usual entitlements like DTA sale, Deemed exports benefits, inter-unit, transfer, sub-contracting etc., otherwise, available to EOU units, shall not be available. The trading units would, however, be allowed to supply goods to other EOU/EHTP/STP units or supply goods to DTA against valid advance license or specific duty free imports entitlement. The notifications governing duty free procurement and import by EOU/STP/EHTP units have been amended suitably to incorporate to the said changes. (Reference: Public Notice 66/2000 dated 1.6.2000) DISPOSAL OF CAPITAL GOODS: 52. Para 9.19 of the Exim Policy, 1997-2002 has been amended to allow destruction of obsolete capital goods and spares without payment of duty with prior permission of the presence of Customs officer inside the Zone or outside the Zone/Unit, where it is not permissible or possible to carry out destruction. Due caution is to be exercised t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itely warrant physical segregation of DTA and EOU/EHTP/STP. (For details Circulars No.38/95-Cus dt. 17.05.1995 and No. 77/99-Cus dt. 18.11.1999 and public notice 133/99 dated 13.12.99 may be referred.) CONVERSIONOF 100% EOU TO EPCG SCHEME: 55. With effect from 01.04.1995, the EXIM Policy had been amended to provide that an EOU /EHTP/STP may, as a one time option, also be permitted to de-bond on payment of duty on the Capital goods under the 15% EPCG scheme, subject to undertaking the export obligation applicable under the said scheme and on payment of duties of Customs and Excise applicable at the time of de-bonding. However, as per the present EXIM Policy the option to de-bond and enter the EPCG scheme has been revised as per paragraph 9.27 which provides that the EOU/EHTP/STP unit may also be permitted as a one time option, to de-bond on payment of duty on capital goods under the prevailing EPCG schemes, subject to the unit satisfying the eligibility criteria and such conditions as may be specified by the Board of Approval. The de-bonding shall be on payment of duties of Customs and Central Excise on other goods applicable at the time of de-bonding. Circular No. 8/96-Cus Dt.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Central Excise Law. Even with the introduction of new Central Excise Rules, 2001 with effect from 1.7.2001, the 100% EOUs registered under the Customs Act, 1962 continue to be deemed to have been registered under Central Excise, in view of the exemption contained in Notification No.36/2001 -CE (NT) dated 26.6.2001. Recovery of Duty Forgone under EOU Scheme and Penal Action for Abuse/ Diversion etc.: 58. Under EOU/STP/EHTP Scheme, the units are required to achieve minimum NFEP and Export Performance as stipulated in the Exim Policy. In case of failure to achieve the minimum NFEP and EP within the stipulated period of one year of importation/procurement or within such extended period not exceeding one year/five years as may be granted by the Deputy Commissioner/Commissioner respectively, the duty forgone under the EOU/STP/EHTP scheme along with interest is recoverable from the units. Further, the duty is recoverable from the units in case of non- receipt of imported/ indigenously procured goods in the factory premises after import/procurement, loss of goods in transit, non accountal of imported/ indigenously procured goods, unauthorized DTA sale, clandestine removal etc. Duty ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... boxes, polyethylene bags of a kind unsuitable for repeated use can be cleared without payment of duty. 59B At the time of de-bonding, the EOU/EHTP/STPs are entitled for depreciation on imported/indigenous capital goods. The rate of depreciation on capital goods has been specified and in case of the computers and computer peripherals, accelerated rate of depreciation have been provided for. There may be cases where the unit may choose to debond within the initial bonding period or there may be a situation where the Deputy Commissioner / Director STP may take a decision to debond the unit for having failed to meet the export obligation and where it is decided that the continuance of the unit in the scheme would not be desirable. In the later case the de-bonding is subject to imposition of penalty by the Deputy Commissioner/ Director STP. In the former case, levy of penalty is at the discretion of the Board of Approval. As per para 9.35 of Hand Book of procedures 1997-2002, at the time of de-bonding, depreciation up to 90% is allowed in respect of capital goods. This maximum limit (i.e. 90%) is spread over a period of 8 years. For Computer and Computer peripherals, accelerated dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n No. 1/95-CE dated 4.01.1995. (Reference Board's instructions issued from F. No. 305/136/92-FTT dated 5-6-1992, Circular Nos. 27/98, dt. 1.04.1998 and 43/98-Cus., dt. 26.06.1998). 60. The following registers/records are to be maintained by 100% EOU/EHTP units. These registers can be maintained electronically, in the system also, provided express permission is obtained from the Assistant/Deputy Commissioner Customs.this apart all the information as specified in these registers and documents should also be available in the system.Hard copies of these registers will have to be maintained and submitted to the jurisdictional officers whenever sought for. A Bond register (Format at annexure D-1) B Daily stock account of finished goods (Format at Annexure-D-2) C Rejects account (Format at Annexure D-3) D Wastage/Scrap Account (Format at Annecure-D-4) E Export Account (Format at Annexure D-5) F DTA Sale Account (Format at Annexure D-6) G De-bonding Account (Format at Annexure D-7) H Consumption account (Format at Annexure D-8) I Running Bond Account (Format at Annexure D-9) J Job-work Register (Format at Annexure D-10) K Inter Unit Transfer Register (Format at Annexure D-11) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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