Circular No. 07/2021-Customs
F.No. DGEP/SEZ/09/2017 (Part III)
Government of India
Ministry of Finance
Department of Revenue Central Board of Indirect Taxes & Customs
(Directorate General of Export Promotion)
******
New Delhi, dated 22 February, 2021
To,
All Pr. Chief Commissioners/ Chief Commissioners of Customs/ Customs (Prev.),
All Pr. Chief Commissioners/ Chief Commissioners of Central Tax/ Central Excise,
All Pr. Commissioners/ Commissioners of Customs/ Customs (Prev.),
All Pr. Commissioners/ Commissioners of Central Tax and Central Excise,
All Pr. Director Generals/Director Generals under CBIC.
Madam/Sir,
Subject: Clarification regarding payment of Agriculture Infrastructu re
and Development Cess (AIDC) by EOU under various situations and
amendment to Circular no. 35/2016 -Customs dated 29.07.2020 –
regarding.
Finance Bill, 2021 (15 of 2021) dated 01.02.2021, vide clause 115 has
imposed a duty of customs, to be called Agriculture Infrastructure and
Development Cess (AIDC), on the import of goods specified in the First Schedule to
the Customs Tariff Act, 1975 at the rate not exceeding the rate of customs duty as
specified in the said Schedule, for the purposes of financing the agriculture
infrastructure and other development expenditure. The said provision of clause 115
of the Bill has been given immediate effect under the Provisional Collection of Taxes
Act, 1931.
1.1 In exercise of the powers conferred by sub-section (1) of section 25 of the
Customs Act, 1962 (52 of 1962) read with clause 115 of the said bill, Government
of India vide Notification No. 11/2021- Customs dated 1
st February, 2021 vide
Sr. no. 19 read with serial no. 7 of the Annexure to the said notification has fully
exempted goods imported by EO Us/EHTP units/STP units (collectively called
EOUs) from the AIDC as the goods imported by these units enjoy benefit of
exemption from basic customs duty under notification no. 52/2003 -Cus dated
31.03.2003.
1.2 In case of EOU selling finished goods in DTA, BCD exempted on import of
inputs used in such finished goods is to be paid vide Notification No. 59/2017-
Customs dated 30.06.2017 [amending by Notification No. 52/2003 -Customs dated
31.03.2003]. On payment of such BCD by EOU at the time of clearance of finished
goods it is treated as if no exemption of BCD was allowed to the EOU under
Notification No. 52/2003-Customs dated 31.03.2003. Once it is deemed that no
exemption of BCD on inputs is allowed which were imported under exemption
Notification No. 52/2003-Customs dated 31.03.2003, AIDC exemption under
Notification no. 11/2021-Customs dated 01.2.2021 also gets denied on such inputs
and same is also required to be paid by EOU.
1.3 In addition to clearance of goods in DTA there are many situations like
clearance of inputs; capital goods; packing material suitable for repeated use such
empty cones, bobbins, containers; left over textile fabric or textile material etc. or
exit from EOU scheme. In such cases duty/tax of which exemption under
Notification No. 52/2003-Customs dated 31.03.2003 was availed at the time of
import is required to be paid at the time of clearance. In case of clearance of capital
goods, applicable depreciation is allowed for denial of exemption. Unutilized left
over textile fabric or textile material is allowed to be cleared into DTA on payment of
duty leviable at the time of import but for the exemption on transaction value as if
the goods have been manufactured in that unit. Exemption of duty/tax on goods
imported under Notification No. 52/2003-Customs dated 31.03.2003 is also denied
on account of breach of various conditions of EOU scheme. Once EOU is required
to pay back BCD for which exemption was claimed and allowed under Notification
No. 52/2003-Customs dated 31.03.2003 at the time of import then exemption of
AIDC, if availed, in all such situations shall also be denied. Thus, EOU shall be
required to pay AIDC in the manner of payment of BCD against the goods
imported under exemption Notification No. 52/2003 -Customs dated 31.03.2003
under various situations.
2. EOU/STP/EHTP are required to maintain and also submit digital copy of
Form – A to Circular no. 35/2016-Customs dated 29.07.2016, by 10th of month to
proper officer, which captures the summary of receipt, removal, returns and
balance of imported goods under Notification No. 52/2003 -Customs dated
31.03.2003. Copy of Quarterly Performance Report and Annual Performance
Reports [QPR/APR] are also required to be submitted to jurisdictional AC/DC of
Customs as mandated by DGFT Public Notice no. 36/2015-2020 dated 04.09.218.
Though QPR/APR contain details of various activities including revenue
contribution by EOUs but these are reflected in consolidated manner and these
reports may be a monitoring tool for departmental officers with limitations.
However, for effective and monthly monitoring of exemption of duty/taxes availed
under Notification No. 52/2003-Customs dated 31.03.2003, the said Form ‘A’ is
amended and revised Form ‘A’ is annexed herewith. Circular no. 35/2016-Customs
dated 29.07.2016 may be treated as amended to above extent.
3. Difficulties, if any, may be brought to the notice of Board.
4. Hindi version will follow.
Encl: - Revised Form ‘A’
Yours faithfully,
-S/d-
(Saroj Kumar Behera)
Additional Director
FORM -A
Form to be maintained by EOU/STPI/EHTP for the receipt, storage, processing and removal of goods.
(as per Circular 07 / 2021 -Customs dated 22.02 .2021)
Name of EOU and address:
GST/Central Excise Registration No:
Range/Circle ______Division_______ Commissionerate____________
Receipts
Bill of
Entry
No. and
date, if
applicable
Customs
Station of
import, if
applicable
Code and
address of
Warehouse
from where
received
(only
in cases
goods are
procured
from public
or private
warehouse)
Name &
Address of
EoU from
where
goods are
received, if
applicable
Others
(in case of
any
other source
of
procurement)
Details of
B-17 Bond
/ Amount
debited
Descripti
on
of goods
Invoice
No.
Procureme
nt
Certificate
No. and
date
Date of
intimation
filed under
Rule 5 of
IGCR,2017
Unit, Weight
And quantity
Value Duty
assessed
Registration
No. of
means of
transport
Date and
time of
receipt
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Removal for processing (The goods removed for processing shall be accounted in a manner that enables the verification of input-output norms, extent of waste, scrap generated etc)
Date
and time
of
removal
Quantity
cleared
Value Duty
involved
Physical
Exports
Deemed
Export under
Para 6.9 of
FTP
DTA clearances of finished goods Waste, scrap etc. cleared
Qty. Value Qty. Value Qty. Value
Amount paid at the time of clearance Qty. Value Customs
Duty paid
BCD
foregone
on inputs
AIDC
foregone
on inputs
Anti-
dumping
duty
foregone
on inputs
Safeguard
Duty
foregone
on inputs
Other
Cess/
Sur-
charge
paid
Interest/
Misc.
payments
Total of
col. 25
to 30
15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34
Other removals
Return to unit Balance in stock Remarks
Purpose of
removal
Date and
time
Quantity Value Duty Details of document
under which removed
(No. and date)
Purpose of
return
Date and
time
Quantity Value Duty involved Details of document
under which returned
(No. and date)
Quantity Value
35 36 37 38 39 40 41 42 43 44 45 46 47 48 49
Note:- For column 19 to 34 consolidated figures may be provided.
