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Circular No.{0/2018-Customs
F.No:DGEP/EOU/ 16/2018
Govt. of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes & Customs
Directorate General of Export Promotion
RREKKKKKK
New Delhi, Dated the 24th April, 2018
To,
All Principal Chief Commissioners/ Chief Commissioners of Customs/Customs
(Preventive)
All Principal Chief Commissioners/ Chief Commissioners of Central Tax and Central
Excise
All Principal Commissioners/Commissioners of Customs/Customs (Preventive).
All Principal Commissioners/Commissioners of Central Tax and Central Excise
Madam /Sir,
Subject: Import by EOU/EHTP/STP/BTP without payment of duty by following Rule
5 of Customs (import of Goods at Concessional Rate of Duty) Rules, 2017 -
clarification regarding.
Representations have been received from EOUs regarding difficulties faced on
imports due to requirement of submitting information to the DC /AC of Customs at the
Custom Station of importation by way of forwarding a copy of such information by the
Jurisdictional DC/AC of Customs under the Customs (Import of Goods at Concessional
Rate of Duty) Rules, 2017. It is further represented that due to recent reorganisation of
Customs formations and associated administrative constraints, EOUs are not able to get
approved/signed copy of said information from the Jurisdictional DC/AC of Customs in
time, for submitting the said copy to the DC/AC of Customs at the Custom Station of
importation for scheduled imports.
2; In order to clarify the issue, it is pertinent to broadly recall the procedure required
to be followed by the EOUs as well as Custom officers under Rule 5 of Customs (Import of
Goods at Concessional Rate of Duty) Rules, 2017. The EOUs are required to provide
information in duplicate regarding estimated quantity and value of goods to be imported
to Jurisdictional DC/AC of Customs. EOU is also required to submit one set of the said
information to DC/AC of Customs at the Custom Station of importation who shall allow
the benefit of exemption notification to the importer on the basis of said information
provided to him. Thus, the Rule 5 of said rules, nowhere prescribes that information
provided by EOU under sub-rule(1)(a) of said Rule 5 is required to be approved by
Jurisdictional DC/AC of Customs on prior basis for imports. It appears that the mis-
conception is arising out of wrong interpretation of sub-rule (3) of Rule 5 of the said rules
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wherein it has been prescribed that the Jurisdictional DC/AC of Customs shall forward
one copy of said information received from importer to DC/AC of Customs at the Custom
Station of importation. However, this sub-rule nowhere makes this forwarded copy by
Jurisdictional DC/AC of Customs a prerequisite for allowing duty free import by the
DC/AC of Customs at the Custom Station of importation. Further sub-rule (4) of Rule 5
clearly mentions that DC/AC of Customs at the Custom Station of importation shall allow
the benefit of exemption notification on receipt of co py of information from the importer
under clause (b) of sub-rule (1) of said rule 5.
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3. In view of above, it is again clarified that the importer EOU need not get prior
approval of the information submitted under sub-rule( 1)(a) of Rule 5 of Customs (import
of Goods at Concessional Rate of Duty) Rules, 2017 from Jurisdictional DC/AC of
Customs for duty free import at the Custom Station of importation. Information submitted
to the DC/AC of Customs at the Custom Station of importation by EOU is sufficient for
importing goods without payment of duty under exemption notification No. 52/2003-
Customs dated 31-3-2003.
4. The Board further prescribes that Jurisdictional DC/AC of Customs of
EOU/EHTP/STP/BTP shall ensure that the intimation received under sub-rule ( 1)(a) of
Rule 5 of the said rules are properly scrutinized so that only eligible goods as prescribed
under notification No. 52/2003-Customs dated 31-3-2003 as well as those eligible as per
Letter of Permission (LOP) granted by Jurisdictional Development Commissioner are
imported duty free by the EOUs. After prompt scrutiny, one copy of such information shall
be forwarded to DC/AC of Customs at the Custom Station of importation as prescribed
under sub-rule (3) of the Rule 5 of said rules. The DC/AC of Customs at Custom Station
of importation would reconcile the Bill of Entry against which goods were imported duty
free by EOU on receipt of such information from Jurisdictional DC/AC of Customs. In
case of any discrepancies noticed, the DC/AC of Customs at Custom Station of
importation would inform the Jurisdictional DC/AC of Customs for taking necessary steps
to protect revenue.
S. Difficulties, if any, should be brought to the notice of the Board.
6. Hindi version follows.
7. This issues with the approval of Central Board of Indirect Taxes & Customs.
Yours faithfully,


2Y (LeIS
(Saroj Kumar Behéta)
Joint Director


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