Guidelines regarding removals of 'rejects' in Domestic Tariff Area by 100% Export Oriented Units - Central Excise - 305/90/85-FTT

Guidelines regarding removals of 'rejects' in Domestic Tariff Area by 100% Export Oriented Units F. No. 305/90/85-FTT Dated 30-1-1986 Government of India Ministry of Finance Department of Revenue Central Board of Excise Customs, New Delhi Subject : Guidelines regarding removals of 'rejects' in Domestic Tariff Area by 100% Export Oriented Units. Under the Scheme of 100% Export Oriented Units 'Rejects may be cleared in terms of Customs Notification No. 13-Cus dated 9.2.81 as amended by Notification No.249/85-Customs dated 13.8.85 upto 5% or upto such other limit as may be fixed by the Board of Approvals. Guidelines for clearance of 'rejects' have been issued by the Ministry of Commerce, vide circular REP No. 26/1985-9/66/85-EPC dated 25.10.1985 a copy of which is enclosed herewith for your information. 2. It is stipulated that the question as to what constituted 'reject' would be decided by the Assistant Collector Central Excise, 'Rejects' will include sub-standard products, but not waste or bye-product. The fact whether an item could be considered as 'reject' or otherwise should be established to the satisfaction of the Assistant Collector of Central Excise having jurisdiction over such units. The Assistant Collector could decide whether an item is 'reject' or otherwise with reference to any quality control yardsticks prescribed by the buyer or the report of the internal quality control department of the manufacturer in 100% E.O.U.s and other technical opinion which the Assistant Collector may also require the manufacturer to produce the correspondence on the basis of which the claim for reject is made.