Duty Free Procurement - Central Excise Practice Manual (OLD) - Central Excise

Duty Free Procurement The EOUs are eligible for procurement of goods from DTA without payment of Central Excise duty subject to following of the procedure laid down under Circular Nos. 851/9/2007-CX dated 03.05.2007 and 859/17/2007-CX dated 13.11.2007 . For this purpose Certificate in Form CT-3 annexed to the aforesaid circular dated 03.05.2007 as Annexure-A is required to be issued by the Superintendent, Central Excise in-charge of EOU. Such goods are required to be brought directly from the manufacturer/warehouse into the unit's premises under ARE-3 . On arrival of the goods at the premises of the user industry i.e. EOU, the user industry shall verify the number/quantity/weight/description/value/duty etc. with the contents mentioned in the ARE-3 and invoice of the goods and account for the goods in the records maintained. The user industry shall endorse certificate of warehousing on the application ARE-3 and an intimation regarding arrival of goods with all three copies of the application ARE-3 by the user industry shall be sent to the Superintendent in charge of the EOU. Superintendent shall depute the bond officer to examine the goods on the same day of receipt of information regarding goods arrival and physical verification of the goods would be undertaken within 24 hrs. After examination of such goods, Superintendent in-charge of the EOU on the basis of the report of the bond officer shall countersign the certificate of warehousing on all copies of the ARE-3 . Original copy of ARE-3 shall be send to the Superintendent in charge of the consignor, duplicate copy to the consignor and triplicate copy to the EOU for record. The units are required to submit certificate of warehousing within a period of 90 days to the consignor i.e. the manufacturer unit. In case of textile and Chemical sector EOUs, though CT-3 is issued by the Superintendent of Central Excise, the post facto approval of Assistant Commissioner/Deputy Commissioner in charge of Division is required to be taken. (Ref. Circular No. 66/2002-Customs, dated 8.09.2002 ).