This notification exempts goods used by a unit in a special economic zone from from Central Excise duty and Additional duty.
19
th
October, 2000.
Notification No. 52 /2000-Central Excise
G.S.R. 803(E). - In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944, (1 of
1944), read with sub-section (3) of section 3 of Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of
1957), the Central Government, being satisfied that it is necessary in the public interest so to do and in supersession of the
notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 41/2000-CE, dated the 26
th
May, 2000 [ G.S.R 500 (E), dated the 26
th
May, 2000], except as respects things done or omitted to be done before such
supersession, hereby exempts excisable goods (hereinafter referred to as the said goods) specified in the Schedule to the
Central Excise Tariff Act,1985 (5 of 1986), when brought by a unit ( hereinafter referred to as the said unit) located in Special
Economic Zone as notified by the Government of India in the Ministry of Commerce and Industry ( hereinafter referred to as the
Zone) from factory of manufacture or warehouse situated in other parts of India, for the purposes of manufacture of goods,
services, production, processing, assembling, trading, repair, reconditioning, re-engineering, packaging or in connection
therewith and export thereof ( hereinafter referred to as the said purpose ) from the whole of the duty of excise leviable thereon
under section 3 of the said Central Excise Act, and the additional duty of excise leviable thereon under section 3 of the said
Additional Duties of Excise (Goods of Special Importance) Act, subject to the following conditions, namely:-
1. The said unit has been authorised by the Development Commissioner to establish the unit in the Zone for the said
purpose.
2. The said goods are brought directly into the unit from the factory of manufacture or warehouse.
3. The said unit executes a bond in the form specified by the Assistant Commissioner of Central Excise or Customs or
Deputy Commissioner of Central Excise or Customs, binding itself -
(i) to bring the said goods into the said unit in the Zone and to use them for the said purpose;
to dispose of the said goods or the services, articles produced, manufactured, processed and packaged in the said unit in the
Zone or the waste, scrap and remnants arising out of such production, manufacture, processing or packaging in the manner as
provided in the Export and Import Policy and in this notification;
to achieve positive NFEP ( Net Foreign Exchange Earning as a Percentage of Exports) as provided in paragraph 9.32 of the
Export and Import Policy read with the provisions of Handbook of Procedure, Vol. I and to comply with the conditions stipulated
in this notification, the relevant provisions of Export and Import Policy and the relevant provisions of Handbook of Procedures,
Vol. I and to pay on demand;-
(a) in case of failure to achieve the said positive NFEP the duty equal in amount to the portion of the duty leviable on the said
goods but for the exemption contained in this notification and the duty so payable shall bear the same proportion as the
unachieved portion of NFEP bears to the positive NEFP to be achieved along with interest at the rate of 24% per annum on the
said duty to be paid on demand from the date of procurement of the said goods till the payment of such duty.
(b) in case of failure to utilise the said goods for the said purpose within the period of five years, an amount equal to the duty as
leviable on the said unutilized goods along with interest at the rate of 24% per annum on the said duty from the date of
importation or procurement of the said unutilized goods till the payment of such duty.
1. The said unit shall maintain proper account, in format convenient to it and financial year-wise, of all foreign exchange
inflow by way of exports and other receipts, all foreign exchange outflow on account of imports, payment of dividend,
royalty, fees, similar other accounts, consumption, utilisation of the said goods and sale of goods produced,
manufactured, processed, packaged and services rendered including waste, scrap and remnants arising out of such
production, manufacture, processing or packaging in the Domestic Tariff Area and shall submit regularly quarterly
statement and monthly statement in case of gem and jewellery to the Assistant Commissioner of Central Excise or
Customs or Deputy Commissioner of Central Excise or Customs in the proforma prescribed in Appendix 16H of the
Handbook of Procedures, Vol.I.
2. The unit follows the procedure contained in Chapter X of the Central Excise Rules, 1944 (hereinafter referred to as the
said rules) with the modification that certificate in form CT-3 annexed to this notification as Annexure-I shall be used by
the Central Excise Officer in-charge of the unit in place of a certificate in form CT-2 provided in the said rules.
3. The Assistant Commissioner of Central Excise or Customs or Deputy Commissioner of Central Excise or Customs may,
subject to such conditions and limitations as may be imposed by him and subject to the provisions of the Export and
Import Policy -
permit the said goods or goods manufactured, produced, processed, partially processed or packaged in the said unit to be
taken to any other unit in another Special Economic Zone or to Export Oriented Undertaking or Export Processing Zone or
Software Technology Park or Electronics Hardware Technology Park units temporarily without payment of duty -
(a) for repairs, processing, testing or display and to be returned to the said unit thereafter, or
(b) for the purposes of manufacture and export therefrom, subject to maintenance of proper accounts by both the receiving
and supplying units:
permit the said goods or partially processed or packaged in the said unit to be taken outside the Zone without payment of duty
for the purpose of test, repairs, replacement, calibration, refining, processing, display, job-work or any other process necessary
for manufacture of final product and to be returned to the unit thereafter or remove the same without payment of duty under bond
for export from job-worker's premises:
Provided that in case of export from the job-worker's premises, such job-worker shall be Central Excise registrant under rule
174 of the said rules:
Provided further that waste or scrap or remnants generated during such process at the job-worker's premises shall be either
returned to the unit in the Zone or shall be cleared on payment of duty as if the said waste or scrap or remnants have been
procured by the said unit;
permit removal of moulds, jigs, tool, fixtures, tackles, instruments, hangers, patterns, drawings without payment of duty to the
premises of the sub-contractors subject to the condition that the such goods shall be brought back to the said unit on
completion of the jobwork within the stipulated period as specified by the Assistant Commissioner of Customs or Central
Excise or Deputy Commissioner of Customs or Central Excise:
Provided that this condition shall not apply to the said unit if such unit is engaged in gem and jewellery.
(7) The Assistant Commissioner of Central Excise or Customs or Deputy Commissioner of Central Excise or Customs may,
subject to such conditions and limitations as may be imposed by him and subject to the provisions of Export and Import Policy,
permit the said unit engaged in gem and jewellery in the Zone -
(i) to take out gold, silver or platinum for job-work in the Domestic Tariff Area and to bring back the jewellery finished or semi-
finished , including studded jewellery containing quantity and purity equal to the gold, silver , platinum taken out within the period
of thirty days from the date of such taking out :
Provided that no diamonds, precious stones or semi-precious stones shall be allowed to be taken out.
(ii) to receive plain gold or plain silver or plain platinum jewellery from any place in India against exchange of gold or silver or
platinum of the same purity and quantity in weight as that of the said gold or silver or platinum jewellery, as the case may be:
Provided that in case of activities mentioned at (i) and (ii) above in this condition, the Domestic Tariff Area unit supplying such
jewellery against exchange of gold or silver or platinum or after jobwork shall not be entitled for deemed export benefits and the
said unit in the Zone shall not be eligible for wastage or manufacturing loss against such jewellery;
(iii) to take out items of gem and jewellery temporarily into Domestic Tariff Area without payment of duty for the purpose of
display and to be returned thereafter;
(iv) for personal carriage of gold Jewellery or silver jewellery or platinum jewellery or precious stones or semi-precious stones
or beads and articles as samples upto US$ 1,00,000/- for export promotion tours and temporary display or sale abroad subject
to the condition that the exporter would bring back such jewellery, precious stones or semi-precious stones or beads and
articles or the sale proceeds within a period of forty-five days from the date of departure through normal banking channel;
(v) to export Jewellery including branded jewellery for display and sale in the permitted shops set up abroad, or in the
showroom of its distributors or agents:
Provided that items not sold abroad within a period of one hundred eighty days from the date of their export shall be re-
imported within a period of forty-five days from the expiry of such period from the date of expiry;
(vi) to remove parts and tools of machines temporarily into Domestic Tariff Area without payment of duty for the purpose of
repairs and return thereof after such repairs.
(vii) to remove moulds, tools, patterns and drawing to the premises of the sub-contractors for jobwork without payment of duty
and to be returned to the unit thereafter within the period specified in this behalf by the Assistant Commissioner or Deputy
Commissioner of Central Excise or Customs as the case may be;
(viii) to send scrap, dust or sweepings of gold arising in the manufacturing process in it's unit to the Government Mint or
Private Mint for conversion into standard gold bars and to be returned to the said unit thereafter or to clear such scrap, dust or
sweeping to the Domestic Tariff Area on payment of duty on the gold content in the said scrap, dust or sweepings.
(8) Subject to the satisfaction of the Assistant Commissioner of Central Excise or Customs or Deputy Commissioner of Central
Excise or Customs, duty shall not be leviable in respect of -
the said goods ( including capital goods ) or goods manufactured, processed or packaged in the said unit, if such goods are
destroyed within the Zone or outside the Zone, when it is not possible or permissible to destroy the same within the Zone.
the scrap or waste material or remnants arising in the course of such production, manufacture, processing or packaging, if
such scrap or waste material or remnants are destroyed within the Zone or destroyed outside the Zone when it is not possible
to destroy the same within the Zone:
Provided that this condition shall not apply in the case of gold, silver, platinum, diamonds, precious stones and semi-precious
stones.
2. Notwithstanding anything contained in paragraph 1, in a case where the said unit is engaged in the development of software,
the exemption contained therein shall also apply to goods procured by such units for training and for development and testing
of software for export and for providing consultancy services for development of software "on site" abroad.
Provided that the conditions stipulated in this notification are complied with by the said unit engaged in the development of
software; and
Explanation. - The consultancy fees received by the said unit in convertible foreign currency for consultancy services for
development of software on site abroad shall be deemed to be exports for the purpose of fulfilment of the said positive NFEP
under this notification.
3. Notwithstanding anything contained in this notification, the said unit (other than a trading unit), shall be allowed to clear in
accordance with the Export and Import Policy, the finished goods including by-products and services, manufactured or
produced out of the said goods (including rejects, waste, scrap and remnants arising in the course of production, manufacture,
processing or packaging of such articles and re-usable containers, cones, bobbins) into Domestic Tariff Area on payment of
duty:
Provided that where such finished goods (including rejects, waste, scrap and remnants) are not excisable, excise duty equal in
amount to that leviable on the inputs obtained under this notification and used for the purpose of manufacture of such finished
goods, which would have been paid but for the exemption under this notification, shall be payable at the time of clearance of
such finished goods:
Provided further that the services shall be allowed to be rendered by the said unit in the Domestic Tariff Area subject to
achievement of positive NFEP as stipulated in the Export and Import Policy.
4. Notwithstanding anything contained in this notification, the said unit engaged in trading shall be allowed to clear the said
goods in the Domestic Tariff Area without payment of duty, if such clearance is against Advance License or special duty free
entitlement as per the provisions of the Export and Import Policy or to other Special Economic Zone or Export Oriented
Undertaking or Export Processing Zone or Electronic Hardware Technology Park or Software Technology Park units.
5. Without prejudice to any other provisions contained in this notification, the Assistant Commissioner of Central Excise or
Customs or Deputy Commissioner of Central Excise or Customs may, subject to such conditions and limitations as he may
deem fit to impose under the circumstances of the case for the proper safeguard of revenue interest and also subject to such
permission of the Development Commissioner of the Zone, wherever it is specially required under the Export and Import
Policy, allow said unit in the Zone to clear any of the said goods for being taken outside the Zone, to any other place in India in
accordance with the Export and Import Policy:
Provided that -
(a) such clearance of capital goods, may be allowed on payment of duty on the depreciated value thereof and at the rate in
force on the date of payment of such duty;
Explanation .- The depreciation shall be allowed for the period from the date of commencement of commercial production of
the said unit or where such goods have been received after such commencement, from the date such goods have come into
use for commercial production to the date of payment of duty;
(b) such clearance of goods(including empty cones, bobbins, co ntainers, suitable for repeated use) other than those
specified in clause (a) may be allowed on payment of duty on the value at the time of procurement and at the rate in force on
the date of payment of such duty;
(c) such clearance of used packing materials, such as cardboard boxes, polyethylene bags of a kind unsuitable for repeated
use without payment of any duty.
Explanation.- For the purpose of this notification -
(a) "Export and Import Policy " means the Export and Import Policy, 1997- 2002, published by the Government of India in the
Ministry of Commerce, vide notification No.1(RE-99)/1997-2002, dated 31
st
March, 2000, as amended from time to time;
(b) "Export Oriented Unit" means a Hundred Percent Export Oriented Unit as approved by the Board of Approvals appointed
by the notification of the Government of India in the Ministry of Industry, Department of Industrial Policy and Promotion or the
Development Commissioner concerned;
(c) "Export Processing Zone" means the Export Processing Zone as notified by the notification of the Government of India in
the Ministry of Finance (Department of Revenue) under section 3 of the Central Excise Act, 1944 ( 1 of 1944);
(d) " Electronic Hardware Technology Park (EHTP) unit " means a unit established under and in accordance with the Electronic
Hardware Technology Park ( EHTP) Scheme notified by the Government of India in the Ministry of Commerce, vide notification
No. 5( RE-95)/ 92-97 , dated 30
th
April, 1995 and approved by the Inter-Ministerial Standing Committee appointed by
notification of the Government of India in the Ministry of Industry (Department of Industrial Development), No. S.O. 117(E),
dated the 22
nd
February, 1993;
(e) "Handbook of Procedures, Vol. I" means the Handbook of Procedures, Vol. I, 1997- 2002 published by the Government of
India, Ministry of Commerce vide Public Notice No. (RE-2000)/ 1997-2002 dated the 31
st
March, 2000;
(f) "Special Economic Zone" means the Special Economic Zone as notified by the Government of India in the Ministry of
Commerce and Industry ;
(g) " Software Technology Parks (STP) Unit" means a unit established under and in accordance with Software Technology
Parks(STP) Scheme notified by the Government of India in the Ministry of Commerce vide notification No. 4 (RE-95) / 92-95,
dated 30
th
April, 1995 and approved by the Inter-Ministerial Standing Committee appointed by the notification of the
Government of India in the Ministry of Industry, Department of Industrial Development, No. S.O. 117(E), dated the 22
nd
February, 1993.
ANNEXURE-I
No.--------------- Date-------------
FORM C.T.3
Certificate for removal of excisable goods under bond
This is to certify that:
1. Mr./Messrs------------------------(Name and address) is/are bona fide licensee holding licence No.--------------- valid upto ------
---------------
2. That he/they has/have executed a bond (General Surety/General Security.
No.--------------------- date-------------------- for Rs.-----------------with the Assistant Commissioner/ Deputy Commissioner of
Custom or Central Excise ---------------------- and as such may be permitted to remove -----------------------(quantity) of ----------
--------(excisable goods) from the unit at --------------------------- to their undertaking -------------- at--------------------------
3. that the specimen signatures of his/their authorised agent namely Shri ---------------are furnished herebelow duly attested;
Specimen Signature Sd/- Central Excise Officer- In-charge of
Owner or his authorised Agent Attested the unit in Special Economic Zone
(RAJENDRA SINGH )
UNDER SECRETARY TO THE GOVERNMENT OF INDIA
F.NO. 305/66/2000-FTT
