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TMI BlogClarification with respect to amendments to Customs and Central Excise notifications for EOUs - reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... o amendments to Customs and Central Excise notifications for EOUs - reg. EOU/EHTP/STP/BTP schemes are governed by Chapter 6 of Foreign Trade Policy (FTP), duly supported by the relevant Customs and Central Excise notifications. These notifications have now been amended in order to align them with the present Foreign Trade Policy (FTP), 2015-2020, as amended, as well as to remove redundancies that had crept in over the time on account of changes/supersession of certain other notifications mentioned therein and legal developments such as the introduction of GST and exempting the EOUs from the application of the Customs warehousing provisions. These amendments have been carried out by Notifications No. 79/2018-Customs and No. 23/2018-Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rker would need registration under GST Act/Rules to enable the EOUs to export of GST goods directly from its premises. (ii) replacing the reference to Notification No. 62/2004-Customs, dated 12.05.2004 with presently valid Notification No. 50/2017-Customs, dated 30.06.2017 for payment of duty by Gem & Jewellery EOUs on the gold or silver content in the scrap, dust or sweeping cleared to DTA or for payment of duty by nominated agencies in case of failure of export in specified time frame. (iii) removing the reference to old DGFT Policy Circular No. 77(RE) 2003-2004/9, dated 31.03.2009. (iv) prescribing that wastage norms for manufacture of jewellery of gold/silver/platinum would be directly governed by the provisions of the FTP and Handbo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erein when procured indigenously by the EOUs for specified purposes. This notification has been amended to provide for:- (a) deletion of reference to the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) and Additional Duties of Excise (Textile and Textile Articles) Act, 1978 (40 of 1978) these Acts are not in existence post-GST. (b) modification of clauses (a) to (e) of the opening para of the said notification to allow procurement of excisable goods falling under the Fourth Schedule to the Central Excise Act, 1944 (1 of 1944). Also, Annexures I, II, IV and V of the said notification which listed various excisable goods that were allowed to be procured indigenously without payment of Excise duties have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 05.12.2018 4. The Notification No. 23/2003-Central Excise, dated 31.03.2003 prescribes effective duties leviable on the DTA clearance of excisable goods by EOUs. The main amendments are as follows:- (a) removal of reference to non existing entries at Sr. Nos. 5, 5A, 6 and 7A of the Table which have been omitted by Notification No. 16/2017-Central Excise, dated 30.06.2017. (b) removal of the reference to Duty Free Replenishment Certificate (DFRC), which has been replaced by Duty Free Import Authorization (DFIA). (c) removal of the condition that the goods cleared to the DTA must be "similar" to those exported and also removal of the cap of 50% on DTA sale in line with the present FTP, 2015-2020. (d) replacing the references to the ol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w EOUs. The existing EOUs shall continue with the earlier B-17 bond already executed by them so that there is no disruption in their working. Also, all relevant instructions applicable for the old B-17 bond will be mutatis mutandis applicable to the new B-17 bond.
7. While the above paras briefly explain the changes varied out in the aforementioned notifications, all officers concerned are requested to carefully peruse the amending notifications to better understand the new legal stipulations that apply to the EOUs.
8. Difficulties, if any, may be brought to the notice of the Board.
9. Hindi version will follow.
Yours faithfully,
Sd/-
(Saroj Kumar Behera)
Joint Director X X X X Extracts X X X X X X X X Extracts X X X X
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