Important changes in EOU Scheme in 2014 - Central Excise Practice Manual (OLD) - Central Excise

Important changes in EOU Scheme in 2014 (a) Paragraph 6.2(a) (i) of FTP has been amended vide notification No. 51 (RE -2013)/2009-2014 allowing EOUs to export prohibited goods on permission of Board of Approval and subject to the condition that raw materials are imported. (b) Notification No. 22/2003-CE, dated 31.3.2003 granting concession of duty on goods sold by EOU in DTA has been amended vide notification No. 18/2014-CE dated 11.7.2014 in order to provide exemption from Education Cess and Secondary Higher Education Cess (custom component). (c) Full exemption from excise duty has been provided on plastic materials reprocessed out of the scrap or waste and cleared into the DTA by an EOU. ( Ref: S. No. 147 of notification No. 12/2012- Central Excise, dated 17th March, 2012 as amended vide notification No. 12/2014-Central Excise, dated 11.07.2014 ). (d) Provision has been incorporated in the Customs Tariff Act, 1975 to charge Safeguard duty on inputs/raw materials, imported without payment of safeguard duty by an EOU, when cleared into DTA as such or used in the manufacture of final products which are subsequently cleared into DTA.