Export of Polyester Staple Yarn under the Intermediate Advance Licensing Scheme - Instructions regarding - Central Excise - 5/88

Export of Polyester Staple Yarn under the Intermediate Advance Licensing Scheme - Instructions regarding Circular No. 5/88 Dated 29-1-1988 [From F. No. 209/22/87-CX.6] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Export of Polyester Staple Yarn under the Intermediate Advance Licensing Scheme - Instructions regarding. Though Polyester fibre is covered under the Intermediate Advance Licensing Scheme, exporters of Polyester yarn (including Polyester blended yarn) are statedly discouraged from working under the Intermediate Scheme and procuring polyester fibre from indigenous manufacturers as there is no specific exemption from excise duty leviable on such staple fibre. Further the procedural requirements of rule 191B of the Central Excise Rules, 1944 under which the fibre can be obtained duty free but under bond, for export purposes, is said to be onerous. The concerned trade interests have represented that the Polyester fibre and Polyester yarn manufacturers could work under the Intermediate Scheme provided suitable relaxations are given under rule 191B. Their request has since been examined carefully by the Board and in the interest of export promotion, it has been decided that Polyester yarn manufacturers-exporters could procure duty-free Polyester Staple Fibre from local manufacturers under rule 191B, with the following relaxations :- (i) The whole factory premises of the yarn manufacturer would be considered as bonded and there would be no need to segregate any part of the premises for purposes of manufacture of yarn under bond under Rule 191B; (ii) It will not be necessary for the local Central Excise Officers to supervise the issues of P.S.F. for manufacture of Polyester yarn under bond under Rule 191B, in the same factory premises; and (iii) The proper officer would grant the yarn manufacturer one-time permission for procurement of P.S.F. under bond under Rule 191B and there should be no need to seek piece-mean permission for every consignment, as required under Para 5 of Notification No. 53/59-C.E., dated 9-5-1959. The manufacturer of Staple fibre and yarn working under the Intermediate Advance Licensing Scheme to have enter into a suitable joint bond with the Licensing authorities i.e. The Chief Controller of Imports and Exports to ensure the eventual export of staple yarn made from duty-free inputs allowed to fibre manufacturers. 4. The Collector of Customs and Central Excise should submit a quarterly report for one year on the working of the above procedure to the Director General of Inspection (Customs Central Excise), New Delhi. The report for a quarter should be received in the D.G.I.'s Office latest by the 10th of the month following the quarter. The D.G.I. in turn will study the reports and forward his comments and suggestions, if any, to the Board by the 25th of the month following the quarter. 5. Suitable trade notice may be issued.