EOUs/EHTP/STP Units – Excise Exemption on Goods Cleared to DTA - 023/2003 - Central Excise - Tariff

Sr. No.

Chapter or heading No. or sub-heading No.

Description of Goods

Amount of Duty

Conditions

(1)

(2)

(3)

(4)

(5)

1.

Any chapter

All goods

Duty of excise leviable thereon as is equivalent to the additional duty of customs leviable on such goods under sub-section (5) of section 3 of the Customs Tariff Act, 1975 (51 of 1975), read with the proviso to sub-section (1) of section (3) of the said Central Excise Act.

1

¹⁹[1A

 Omitted]

¹⁹[1B

 Omitted]

^[2]2.

Any Chapter

All goods

In excess of the amount equal to the aggregate of duties of customs leviable on like goods, as if,-

(a) the duty of customs specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), read with any other notification in force was reduced by 50%, and

(b) no additional duty of customs was leviable under sub-section (5) of section 3 of the said Customs Tariff Act: Provided that while calculating the aggregate of customs duties, additional duty of customs leviable under sub-section (5) of section 3 of the said Customs Tariff Act shall be included if the goods cleared into Domestic Tariff Area are exempt from payment of sales tax or value added tax.

Illustration: - Assuming product X has the value ₹ 100/- under section 14 of the Customs Act, 1962, and for the purposes of this illustration, is chargeable to basic customs duty of 10% ad valorem and additional duty of 20% ad valorem only, then the computation of duty required to be paid would be as follows:

Basic Customs duty but for this exemption= ₹ 10/-

Basic Customs duty because of this exemption= ₹ 5/-

Value for the purposes of calculation of additional duty = ₹ 100/- + ₹ 5/- = ₹ 105/-

Additional duty= 20% of ₹ 105/- = ₹ 21/-.

Total duty payable after this exemption= ₹ 5/- + ₹ 21/- = ₹ 26/-

2

3.

Any Chapter

All goods ²⁹[*****]

In excess of amount equal to aggregate of duties of excise leviable under Section 3 of the Central Excise Act or under any other law for the time being in force on like goods produced or manufactured in India other than in an export oriented undertaking, if sold in India.

3

²⁶[3A

 Omitted

 ]

4.

Any Chapter

All goods produced or manufactured wholly from the raw materials produced or manufactured in India, ²⁷[***]

In excess of amount equal to 30% of the duty payable under section 3 of the Central Excise Act, 1944.

Illustration.- Assuming product X has the value ₹ 100 under section 14 of the Customs Act,1962 and is chargeable to basic custom duty of 25% ad valorem, special additional duty of 4% ad valorem and not chargeable to additional duty. The computation of duty required to be paid would be as follows:

Basic Customs duty = ₹ 25/-

Value for the purpose of special additional duty if leviable = ₹ 100/- + ₹ 25/- = ₹ 125/-

special additional duty if leviable= 4% of ₹ 125/-= ₹ 5.00/-

*Total duty payable but for this exemption= ₹ 25/-+ ₹ 5.00/-= ₹ 30.00/-

Thirty per cent. of the aggregates of the duties of customs= 30% of ₹ 30.00/-= 9.00/-

Duty required to be paid in accordance with this notification = ₹ 9.00/-

4

5.

 ²⁶[Omitted]

5A.

²⁶[Omitted]

6.

²⁶[Omitted]

7.

²⁶[Omitted]

7A.

²⁶[Omitted]

8.

²⁶[Omitted]

9.

²⁶[Omitted]

10.

²⁶[Omitted]

11.

²⁶[Omitted]

12.

²⁶[Omitted]

13.

²⁶[Omitted]

14.

²⁶[Omitted]

15.

²⁶[Omitted]

16.

²⁶[Omitted]

17.

²⁶[Omitted]

18.

²⁶[Omitted]

19

²⁶[Omitted]

20.

²⁶[Omitted]

21.

²⁶[Omitted]

22.

Any Chapter

All goods

In excess of "Nil" when cleared to a person holding an Advance License issued by the licensing authority in terms of ³⁰[paragraph 4.03]of the Foreign Trade Policy, read with relevant provisions of the Hand book of Procedures, Volume-I.';

11

23.

Any Chapter

All goods

In excess of amount equal to additional duty of customs leviable under section 3 of the Customs Tariff Act, 1975 (51 of 1975) on similar goods if imported, when cleared to a person holding ³¹[Duty Free Import Authorisation Scheme in terms of ³⁵[paragraph 4.24]] of the Foreign Trade Policy, read with relevant provisions of the Hand book of Procedures, Volume-I.

11

Sr.No.

Conditions

1.

If the goods being cleared into the Domestic Tariff Area are not exempt by the State Government from payment of sales tax or value added tax;

³²[**

***]

3.

If,-

(i) the goods are produced or manufactured wholly from the raw materials produced or manufactured in India;

(ii) the goods are cleared into Domestic Tariff Area in accordance with sub-paragraphs (a), (d), (e) and (g) of ³⁶[paragraph 6.07] of the Foreign Trade Policy; and

(iii) such goods, if manufactured and cleared by the unit other than export oriented undertaking are not wholly exempt from duties of Excise or are not chargeable to 'NIL' rate of duty.

 ²⁸[3A

Omitted]

4.

If,-

(i) the goods are produced or manufactured wholly from the raw materials produced or manufactured in India;

(ii) such goods are cleared in the Domestic Tariff Area in accordance with sub-paragraphs (a), (d), (e) and (g) of ³⁶[paragraph 6.07] of the Foreign Trade Policy; and

(iii) the goods, if manufactured and cleared by the unit other than export oriented undertaking are wholly exempt from duties of Excise or are chargeable to 'NIL' rate of duty.

 5.

²⁸[Omitted]

6.

²⁸[Omitted]

7.

²⁸[Omitted]

8.

²⁸[Omitted]

9.

²⁸[Omitted]

10.

²⁸[Omitted]

11.

If,-

(i) the Advance License Holder/³³[Duty Free Import Authorisation Scheme] holder fulfills all the procedural requirements of Customs which are required to be fulfilled if the goods are imported against such Advance License or ³³[Duty Free Import Authorisation Scheme] except the requirement of specific port of import; and

(ii) the quantity and the value of each of the items are debited by the Deputy Commissioner or Assistant Commissioner of Customs or Central Excise as the case may be, in the said Advance License or ³³[Duty Free Import Authorisation Scheme] and legible endorsement made by the Deputy Commissioner or Assistant Commissioner of Customs or Central Excise as the case may be, on the said Advance License or ³³[Duty Free Import Authorisation Scheme] to that effect."

¹⁷[1A.

Any chapter

 All goods

Duty of excise leviable thereon as is equivalent to the education cess leviable on such goods under section 94 of the Finance (No.2) Act, 2004 (23 of 2004), read with the proviso to sub-section (1) of section (3) of the said Central Excise Act.

-]

¹⁸[1B.

Any chapter

All goods

Duty of excise leviable thereon as is equivalent to the Secondary and Higher Education cess leviable on such goods under section 139 of the Finance Act, 2007 (22 of 2007) read with the proviso to sub-section (1) of section (3) of the said Central Excise Act

-]

³[3A

(i) 50 to 63;

(ii) 25 or 68

i) Textile and textile articles;

ii) Granite and granite articles

In excess of an amount equal to the aggregate of duties of excise leviable under section 3 of the Central Excise Act, 1944 or under any other law for the time being in force on like goods produced or manufactured in India other than in an export oriented undertaking, if sold in India.

3A]

"5.

5208 to 5212

All goods, of cotton not containing any other textile material and not subjected to any process.

⁴[In excess of amount equal to 4% of duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986).

Explanation.- The value of the goods shall be determined in terms of section 4 of the Central Excise Act.]

5

5A.

5208 to 5212

All goods , not subjected to any process other then the goods specified against Sl. No.5.

⁵[In excess of amount equal to ²⁰[12.5%] of duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986).

Explanation.- The value of the goods shall be determined in terms of section 4 of the Central Excise Act.]

5

6.

5407, 5408, 5512, 5513, 5514, 5515, 5516

All goods, not subjected to any process

⁶[In excess of amount equal to ²¹[12.5% ] of duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986).

Explanation.- The value of the goods shall be determined in terms of section 4 of the Central Excise Act.]

5

7.

3006 10 or 60

All goods, of cotton not containing any other textile material whether or not processed

⁷[In excess of amount equal to 4% of duty of excise in the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986).

Explanation. - The value of the goods shall be determined in terms of section 4 of the Central Excise Act.]

5

7A.

3006 10 or 60

All goods, of man made fiber not subjected to any process

⁸[In excess of amount equal to ²²[12.5%] of duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986).

Explanation. - The value of the goods shall be determined in terms of section 4 of the Central Excise Act.]

5

8.

71

Plain Gold Jewellery

⁹[In excess of ¹⁶[10%] ad valorem]

6

9.

71

Studded Gold Jewellery

In excess of 5% ad valorem.

6

10.

71

Plain Silver Jewellery

¹⁰[In excess of 6% ad valorem]

6

11.

Any Chapter

Rags, trimmings and tailor cuttings arising in the course of manufacture of ready made garments

In excess of 'Nil'.

7

12.

05

Waste of fish or crustaceans, mollusks or other aquatic invertebrates

In excess of 'Nil'.

-

13.

2306 90 17 and 2306 90 27

Castor oil cakes,

In excess of 'Nil'.

8.

14.

2309

Guar meal

In excess of 'Nil'.

9

15.

5202

Cotton waste (including yarn waste and garneted stock)

In excess of 'Nil'.

-

16.

5307, 5310, 57, 5801, 5802, 5806 or 6305

Yarn of jute and goods of jute.

In excess of 'Nil'.

10

17.

Any Chapter

Bone meal.

In excess of 'Nil'.

10

18.

Any Chapter

Rice husk and shark, residue of wheat, residue of pulses; and residue of any other cereal.

In excess of 'Nil'.

10

19

Chapter 9

Tea waste, and coffee waste.

In excess of 'Nil'.

10

20.

Any Chapter

Waste of Castor oil seed, waste of caster oil derivatives; waste of sesame seed; and waste of any other oil seed.

In excess of 'Nil'.

10

21.

Any Chapter

Waste from food industries.

In excess of 'Nil'.

10"

³[3A

If-

(i) the said goods are cleared into Domestic Tariff Area in accordance with sub-paragraphs (a), (d), (e), (g) and (k) of Paragraph 6.8 of the Foreign Trade Policy;

(ii) the said unit has achieved positive Net Foreign Exchange Earning;

(iii) the said goods are produced or manufactured by the unit wholly from the raw materials produced or manufactured in India except the use of duty paid imported inputs upto 3% of the FOB value of exports of the said unit in the preceding financial year;

(iv) the said unit exercises an option in terms of Para 6.8 (l) of the Foreign Trade Policy for availing this exemption by informing in writing to the jurisdictional Deputy/Assistant Commissioner of Customs or Central Excise:

 Provided that-

  (a)  such option is exercised before effecting first clearances into Domestic Tariff Area on or after 1st day of April in any financial year:  

     Provided that for the remaining period of the year 2008-09, such option shall be exercised before effecting first clearances in Domestic Tariff Area on or after 1st June, 2008;

  (b)  such option shall not be withdrawn during the remaining part of the financial year; and

  (c)  once such option is exercised, the unit shall not be allowed to import or utilize duty free inputs for any purpose; and

(v) the said goods, if manufactured and cleared by a unit other than an export oriented undertaking are not wholly exempt from duties of Excise or are not chargeable to "NIL" rate of duty.]

"5.

'If,-

(i) the goods are produced or manufactured wholly from the raw materials produced or manufactured in India; and

(ii) the goods are cleared in the Domestic Tariff Area in accordance with sub-paragraphs (a), (d), (e) and (g) of paragraph 6.8 of the Foreign Trade Policy.

6.

If the goods are cleared into Domestic Tariff Area in accordance with Paragraph 6.8 ( c) of the Foreign Trade Policy.

7.

If the percentage of waste material in the form of rags, trimmings and tailor cutting does not exceed the percentage fixed in this regard by the Board of Approvals for export oriented undertakings or as the case may be, by the Development Commissioner.

8.

If the goods are manufactured from indigenous castor oil seeds on indigenous plant and machinery.

9.

If the goods are manufactured wholly from indigenous guar seeds.

10.

If the goods are manufactured wholly from indigenous raw materials."

“2.

If,-

(i) the goods are cleared into Domestic Tariff Area in accordance with sub-paragraphs (a), (d), (e) and (g) of Paragraph 6.8 of the Foreign Trade Policy;

(ii) exemption shall not be availed until Deputy Commissioner of Customs or Assistant Commissioner of Customs or Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise, as the case may be, is satisfied with the said goods including Software, Rejects, Scrap, Waste or Remnants;

(a) being cleared in Domestic Tariff Area, other than scrap, waste or remnants are similar to the goods which are exported or expected to be exported from the units during specified period of such clearances in terms of Foreign Trade Policy;

(b) the total value of such goods being cleared under sub-paragraphs (a),(d),(e) and (g) of Paragraph of the Foreign Trade Policy, into Domestic Tariff Area from the unit does not exceed 50% of the Free on Board value of exports made during the year (starting from 1st April of the year and ending with 31st March of next year) by the said unit;

(c) the balance of the production of the goods which are similar to such goods under clearance into Domestic Tariff Area, is exported out of India or disposed of in Domestic Tariff Area in terms of Paragraph 6.9 of the Foreign Trade Policy;

(iii) clearance of goods into Domestic Tariff Area under sub-paragraphs (a), (d), (e) and (g) of Paragraph 6.8 of the Foreign Trade Policy shall be allowed only when the unit has achieved positive Net Foreign Exchange Earning ; and

(iv) clearance of goods into Domestic Tariff Area under sub-paragraph (d) of Paragraph 6.8 of the Foreign Trade Policy in excess of 5% of free on board value of exports made by the said unit during the year (starting from 1st April of the year and ending with 31st March of the next year) shall be allowed only when the unit has achieved positive Net Foreign Exchange Earning.”