Duty to be paid on DTA sale made - Central Excise Practice Manual (OLD) - Central Excise

Duty to be paid on DTA sale made under Paragraph 6.8(a) of FTP On fulfillment of positive NFE (Net Foreign Exchange Earnings) the EOUs other than gem and jewellery units, are allowed to sell goods including rejects (upto 5% of FOB value of exports), waste, scrap, by-products and services in DTA upto 50% of FOB value of exports at a concessional rate of duty. The concessional rate of duty is charged in an amount equal to 50% of basic Customs duty (25% prior to 1.3.2008] and 100% additional duty of customs under section 3 of Customs Tariff Act. Any other duty of customs under any other law for time being in force is taken into account unless specifically exempt. Whereas the clearance of finished goods in DTA up to 50% of FOB is on payment of concessional rate of duty subject to the condition of achievement of positive NFE, sales in DTA beyond 50% attract full duties. The waste and scrap generated is required to conform to SION norms and in case of higher wastage the EOU can get the norms fixed from BOA on the basis of data verified by excise authorities. No DTA sale of waste, scrap and by-products would be allowed at concessional rate of duty unless the unit is eligible for DTA sale entitlement under para 6.8(a) of the Foreign Trade Policy . (Ref.: Notification No. 23/2003-CE, dated 31-3-2003 as amended).