Board Circular No,29/2017 -Customs dated 17.07.2017 on the Operational problems being faced by EOU in GST regime consequent to amendment in Notification No. 52/2003- Customs dated 31.03.2003 - Customs - TRADE FACILITY NO. 08/2017

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE OFFICE OF THE COMMISSIONER OF CUSTOMS CUSTOM HOUSE, WILLINGDON ISLAND, COCHIN-682009 F. No. C1/03/2016-TU. Cus. Dated: 19.07.2017. TRADE FACILITY NO. 08/2017 Subject: Board Circular No,29/2017 -Customs dated 17.07.2017 on the Operational problems being faced by EOU in GST regime consequent to amendment in Notification No. 52/2003- Customs dated 31.03.2003- Reg . Kind attention of Exporters, Importers, Customs Brokers, Steamer Agents and all other stakeholders is drawn to the Central Board of Excise Customs (CBEC) Circular No. 29/2017 -Customs dated 17th July 2017 (copy enclosed), which addresses the issues faced by Export Oriented Units (EOU) consequent to the amendment of Notification No.52/2003 dated 31.03.2003. 2. In view of the various difficulties being faced by EOUs in GST regime as a result of the amendment of the said notification by Notification No.59/2017- Customs dated 30.06.2017, the Board has clarified that: (i) The B-17 bond, will serve the requirement of Continuity Bond to be submitted under Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 (IGCR) and hence the EOU/STP/EHTP units are not required to submit a separate continuity Bond. (ii) The EOUs may submit the information about estimated quantity and value of Goods to be imported, which is required as per Rule 5 of IGCR Rules, 2017, for any period less than one year and can give requirements for the subsequent period. There is also no provision in the said rule barring the units from making any additions/ modifications/ amendments to the information submitted. (iii) For the transitional period up to 31.07.2017, the EOU/EHTP/STP units can either follow the procedure of Rule (5) of IGCR Rules or use Procurement Certificates for import of goods. (iv) Inter Unit Transfer of goods would be on invoice, on payment of applicable GST but would be without payment of Customs Duty. The amount of such duty exemption claimed will be endorsed by the supplier Unit on the documents. The recipient unit would be responsible for payment of such basic Customs Duty, as is obligated under Notification No.52/2003-Cus dated 31.03.2003 (as amended), when the finished goods made out of such goods are cleared in DTA. No Procurement Certificate would be required for Inter Unit Transfer, and to this extent Circular No.35/2016 -Custom stand amended. 3. Consequent to the above mentioned changes notified by the Board, all the stakeholders are required to take cognisance and comply with the same. Sd/- (Pullela Nageswara Rao) Commissioner of Customs