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Circular No. 29/2017-Customs

F. No. DGEP/EOU/GST/16/2017
Government of India
Department of Revenue
Central Board of Excise & Customs
Directorate General of Export Promotion


New Delhi, 17
th
July, 2017

To

Principal Chief Commissioners/Principal Directors General,
Chief Commissioners/Directors General,
Principal Commissioners/Commissioners,
All under CBEC.

Madam/Sir,

Sub: Operational problems being faced by EOU in GST regime consequent
to amendment in Notification no. 52/2003-Customs dated 31-3-2003–
reg.
EOUs are allowed duty free import of goods under notification
No.52/2003-Custom dated 31-3-2003. However, in view of GST the said
notification has been consequently amended by notification No. 59/2017-
Customs dated 30-6-2017.
2. Trade has brought out problems fac ed by them in following certain
procedures.
(a) It has been represented, that field formations are insisting upon
submission of a continuity bond, in view of rule 5 of the Customs (Import of
Goods at Concessional Rate of Duty) Rules, 2017 , despite units having
executed B-17 bond which is a general purpose running bond.
b) EOUs have also expressed apprehension that information about estimated
quantity and value of goods to be imported is required to be submitted for a
period of one year, in view of rule 5 of said IGCR, rules. They apprehend that
the requirements may increase or change during this period of one year.
c) Trade has also sought a clarification regarding inter unit transfer of goods
from one EOU to another, which was supported by procurement certificate
(PC) in view of Circular no. 35/2016 –Custom dated 29-7-2016 .
d) Trade has also requested to continue the procedure of procurement
certificates for transitional period for import of goods by EOUs.

3. Matter has been examined. It has been decided by Board, that –
(i) The B-17 bond, being a general purpose running bond will serve the
requirement of continuity bond to be submitted under Customs (Import of
Goods at Concessional Rate of Duty) Rules, 2017 , and therefore
EOU/STP/EHTP units are not required to submit separate continuity bond.
(ii) It is to clarify that the requirements of information about estimated
quantity and value of goods to be imported are to be provided under Rule
5(1)(a) of the (Import of Goods at Concessional Rate of Duty) Rules, 2017 for a
period not exceeding one year. This means that units may submit the
requirements for any shorter period than one year and then can give
requirements for the subsequent period. Also there is no bar in the said rules
to amend/give additional information. Therefore, the units can
amend/modify/add such information from time to time as per the requirement
of import of goods.
(iii) For the transitional period upto 31-7-2017, the EOU/EHTP/STP units
would have option to follow the procedure of Rule (5) of IGCR, rules or use
procurement certificate for import of goods.
(iv) The inter unit transfer would be on invoice on payment of applicable GST
taxes. However, such transfer would be without payment of custom duty. The
supplier unit will endorse on such documents the amount of custom duty,
availed as exemption, if any, on the goods intended to be transferred. The
recipient unit would be responsible for paying such basic customs duty, as is
obligated under Notification no. 52/2003-Cus dated 31-3-2003 (as amended),
when the finished goods made out of such goods or such goods are cleared in
DTA. The circular no. 35/2016 –Custom dated 29-7-2016 would stand
amended to the extent that no procurement certificates would be required for
inter- unit transfer.
4. This may be brought to the notice of all the field formations and also the
trade.

Yours faithfully,


(Saroj Kumar Behera)
Joint Director