Implementation of Risk Management System for imports under the 100% EOU Scheme - Imports under Procurement Certificate - Reg. - Customs - 02/2013

OFFICE OF THE COMMISSIONER OF CUSTOMS P.B.NO.5400, C R BUILDING, QUEEN'S ROAD, BANGALORE - 560 001 C. No. VIII/48/69/2012 Cus Tech. PUBLIC NOTICE NO. 02/2013 DATED 14.02.2013 Sub: Implementation of Risk Management System for imports under the 100% EOU Scheme - Imports under Procurement Certificate - Reg. Attention of all the members of the Trade and Industry, Importers and Customs House Agents (CHA's) is invited to the Public Notice No. 57/2011 dated 26.07.2011 and the Public Notice No. 63/2011 dated 04.08.2011 on the above subject. 2. In terms of aforesaid Public Notice dated 04.08.2011, the import under 100% EOU scheme were allowed on the basis of earlier system of Block Transfer Certificates even though the administrative control of the 100 % EOUs was transferred to the Central Excise authorities and no bonds were maintained with Customs formation. 3.1 The matter has been further examined in light of the statutory and functional considerations. 3.2 It is observed that across the country, import clearances by the 100% EOUs are being made against submission of Procurement Certificates (PC) issued by the jurisdictional Central Excise/Customs Officers having jurisdiction over the unit. In Bangalore, a special arrangement is continuing whereby the units are allowed to clear the imported goods on the strength of a Block Transfer Certificate issued by the jurisdictional Officer instead of a Procurement Certificate. However, as the system of Block Transfer is not prevalent at other places, a number of EOUs produce Procurement Certificates for Customs clearance. Therefore, in practice, the field formations of this Commissionerate have to deal with both Block Transfer Certificates and Procurement Certificates. 3.3 The Block Transfer Certificates being in the nature of running bond carry multiple entries which are re-credited upon production of Re-warehousing Certificate(s), which are issued consignment wise. Therefore, while import are permitted against multiple entries in one bond, for re-credited of each entry a separate Re-warehousing Certificate is required. This leads to problems in reconciliation and consequent delays. Further, the coexistence of Block Transfer Certificates and Procurement Certificates creates avoidable confusion and undue burden. 4. Keeping in view the above, it has been decided that with effect from 01.03.2013 the import under 100 % EOU schemes, including under courier mode, will be allowed only on production of Procurement Certificates and the system of Block Transfer Certificates shall be discontinued. 5. No fresh Block Transfer Certificates shall be registered. The Block Transfer Certificates already registered can be utilized in full and the Re-warehousing Certificates should be submitted latest by 15.04.2013. (Sandeep Prakash) Commissioner