Operational problems being faced by EOU in GST regime consequent to amendment in Notification no. 52/2003-Customs dated 31-3-2003 - Customs - Public Notice: -23/2017

OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS, CUSTOM HOUSE, AHMEDABAD - 380009. F. No.:- VIII/48-74/Cus/T/2017 Dated:-24.07.2017 Public Notice: -23/2017 Sub: Operational problems being faced by EOU in GST regime consequent to amendment in Notification no. 52/2003-Customs dated 31-3-2003. Attention of the Trade is invited to Board's Circular No. 29/2017-Customs issued vide F. No. DCEP/EOU/CST/16/2017 dated 17.07.2017. In this regard as it is known that EOUs were allowed duty free import of goods under notification No.52/2003-Custom dated 31-3-2003. However, in view of CST the said notification has been consequently amended by notification No. 59/2017-Custcms dated 30-6-2017. 2. Trade had brought out problems faced by them in following certain procedure accordingly Board has decided that: - (i) The B-17 bond, being a general purpose running bond, will serve the Requirement of continuity bond to be submitted under Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017, and therefore EOU/STP/EHTP units are not required to submit separate continuity bond. (ii) It is to clarify that the requirements of information about estimated quantity and value of goods to be imported are to be provided under Rule 5(1)(a) of the (Import of Goods at Concessional Rate of Duty) Rules, 2017 for a period not exceeding one year. This means that units may submit the requirements for any Shorter period than one year and the can give requirements for the subsequent period. Also there is no bar in the said rules to amend/give additional information. Therefore, the units can amend/modify/add such information from time to time as per the requirement of import of goods. (iii) For the transitional period upto 31-7-2017, the EOU/EHTP/STP units would have option to follow the procedure of Rule (5) of IGCR, rules or use procurement certificate for import of goods. (iv)The inter unit transfer would be on invoice on payment of applicable CST taxes. However, such transfer would be without payment of custom duty. The supplier unit will endorse on such documents the amount of custom duty, availed as exemption, if any, on the goods intended to be transferred. The recipient unit would be responsible for paying such basic customs duty, as is obligated under Notification no. 52/2003-Cus dated 31-3-2003 (as amended), when the finished goods made out of such goods or such goods are cleared in DTA. The circular no. 35/2016 -Custom dated 29-7-2016 would stand amended to the extent that no procurement certificates would be required for inter-unit transfer. 3. The relevant Board Circular may be assessed at http://cbec.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-2017/circ29-2017cs.pdf 4. Difficulties faced, if any, may be brought to the notice of the Department. [P V R Reddy] Principal Commissioner Customs, Ahmedabad