Agricultural & Aquaculture Units - Central Excise Practice Manual (OLD) - Central Excise

Agricultural Aquaculture Units Export Oriented Unit engaged in aquaculture, agriculture, animal husbandry, floriculture, horticulture, piciculture, viticulture, poultry or sericulture may import or procure specified goods without payment of duty as specified in the notification Nos. 52/2003-Customs and 22/2003-CE, both dated 31-03-2003 respectively. The CBEC vide Circular No. 15/95-Cus., dated 23-2-1995 clarified that EOUs in the aquaculture, agriculture, horticulture, viticulture and other such sectors where due to large areas of operations that units are not amendable to Customs bonding are not required to subjected to customs bonding procedure and supervision by Customs Officer on cost recovery basis is also not required for this units. However, the agricultural or aqua cultural units operating at a premise which are amenable to bonding are not exempted from Customs bonding etc. The EOUs engaged in processing of agricultural products and/or packaging or production or manufacture of agricultural produce are allowed to take out specified goods to the fields or farms of contract farmers for production or in connection therewith and to bring back the produce to the EOU for processing of export subject to the conditions of the notifications and Foreign trade Policy. (Ref: CBEC Circular No. 38/2002-Cus. Dated 1/7/2002 and 29/2003-Cus. dated 3/4/2003 ).