Movement of intermediate goods without payment of duty to manufacturers of resultant articles - 33/90 - Central Excise - Non Tariff

Movement of intermediate goods without payment of duty to manufacturers of resultant articles

Notification No. 33/90-C.E. (N.T.)

Dated 5-9-1990

In exercise of the powers conferred by sub-rule (1) of rule 191BB of the Central Excise Rules, 1944, the Central Government hereby specifies all excisable goods (hereafter in this notification referred to as the "intermediate goods"), as goods whose removal from the place of manufacture shall be permitted without payment of duty for supply to manufacturers of all articles (hereafter in this notification referred to as the "resultant articles") subject to the following conditions, namely :-

(i) the manufacturer of such intermediate goods holds an Advance Intermediate Licence or has applied for such licence to the Licensing Authority and has obtained an acknowledgement for the same, for supply of such goods to a manufacturer who is an holder of a Duty Exemption Entitlement Certificate and an Advance Licence under the Duty Exemption Scheme (hereafter in this notification referred to as the "ultimate exporter");

(ii) the intermediate goods are supplied against a Advance Release Order to an ultimate exporter for use in the manufacture of resultant articles;

(iii) The quantity of intermediate goods removed without payment of duty of excise does not exceed the duty free entitlement indicated in part C of the Duty Exemption Entitlement Certificate issued to an ultimate exporter;

(iv) the intermediate goods are utilised by the ultimate exporter for manufacture of resultant articles to be exported or for use as replenishment of duty paid excisable goods of identical specifications and technical characteris­tics which have been used in the manufacture of resultant articles already exported in discharge of export obligations under a Duty Exemption Entitlement Certificate:

Provided that the intermediate goods obtained for replenishment of duty paid excisable goods may be utilised for further production in the factory of the ultimate exporter or may be disposed of in such manner as may be specified by the Assistant Collector of Central Excise having jurisdiction over the factory of the ultimate exporter;

(v) the ultimate exporter registers himself with the Assistant Collector of Central Excise having jurisdiction over the factory giving particulars and ground plan of the factory, description of each of the intermediate goods and resultant articles, the process of manufacture of such resultant articles, and such other particulars as may be specified by the said Assistant Collector;

(vi) the ultimate exporter enters into a bond with the Assistant Collector of Central Excise having jurisdiction over the factory, with such security as may be specified by him, undertaking to pay an amount equivalent to the duty of excise leviable on intermediate goods, in the form annexed to this notification;

(vii) the ultimate exporter applies to the Assistant Collector of Central Excise having jurisdiction over the factory in writing every time he desires to ob­tain intermediate goods and the provisions of Chapter VII of the Central Excise Rules, 1944, so far as they relate to the movement of excisable goods from one warehouse to another shall apply for movement of intermediate goods from the place of their manufacture, production or storage to the factory of the ultimate exporter;

(viii) the ultimate exporter makes necessary arrangements for facilitating drawal of samples and subjecting them to such tests as may be directed by the Assistant Collector of Central Excise having jurisdiction over the factory;

(ix) any waste or bye-product arising from the process of manufacture under taken by the ultimate exporter on the intermediate goods obtained under this notification shall -

(a) be cleared on payment of duty; or

(b) be allowed to be used again for manufacture of resultant articles; or

(c) if found unfit for further use, be destroyed under the supervision of an officer of Central Excise in accordance with the procedure specified by the Assistant Collector;

(x) the ultimate exporter exports the resultant articles within the period specified in the Duty Exemption Entitlement Certificate or within such extended period as may be permitted by the Licensing Authority or the Committee;

(xi) the export of resultant products made out of intermediate products, namely, nylon fibre, nylon yarn, nylon fabrics, polyester fibre, polyester yarn, polyester fabrics, stainless steel sheets, stainless steel strips, magnetic tapes, precious metals, metals clad with precious metals and articles thereof, be made only through -

(a) any of the sea ports at Kandla, Bombay, Nhava Sheva, Cochin, Madras, Visakhapatnam and Calcutta; or

(b) any of the airports at Bombay, Calcutta, Delhi, Madras and Bangalore; or

(c) any of the internal container depots at Delhi and Bangalore;

(xii) the ultimate exporter maintains account of the intermediate goods and the resultant articles and exports thereof in the proforma specified under parts D, E, F and G of the Duty Exemption Entitlement Certificate;

(xiii) the ultimate exporter submits within thirty days of the expiry of the period specified in condition (x), a detailed summary of the accounts maintained in the proforma specified in condition (xii), along with attested copies of the shipping bills, bills of lading and the Duty Exemption Entitlement Certificate with appropriate entries made by the officers of Customs in part F of the proforma indicating the export of the resultant articles :

Explanation - For the purposes of this notification, -

(a) "Advance Licence", "Advance Intermediate Licence", and "Duty Exemption Scheme" have the same meanings as assigned to them in Chapter XIX of Import-Export Policy, April 1990 - March 1993 Vol. I as published vide Public Notice of the Government of India in the Ministry of Commerce No. 1-ITC(PN)/90-93 dated the 30th March, 1990, as amended from time to time.

(b) "Committee" means the Inter-Departmental Committee as constituted by the Central Government under the Office Memorandum of the Government of India in the Ministry of Commerce, Office of the Chief Controller of Imports and Exports No. 3/54/75-EPC, dated the 3rd December, 1975 and the Circular No. 9/30/85-EPC, dated the 28th June, 1985, and 168-ITC(PN)/88-91 dated 29-9-1989 (F.No. 9/191/86-EPC), for the time being in force, or as reconstituted by the Central Government from time to time.

(c) "Duty Exemption Entitlement Certificate" and "Advance Release Order" shall have the same meanings as assigned to them in Chapter XIX of the Handbook of Procedures April 1990 - March 1993 Vol. I as published vide Public Notice of the Government of India in the Ministry of Commerce No. 1-ITC(PN)/90-93 dated 30-3-1990 as amended from time to time.

(d) "Licensing Authority" means an authority competent to grant a licence under the Imports (Control) Order, 1955 made under the Imports and Exports (Control) Act, 1947 (18 of 1947).

BOND (WITH SECURITY) TO BE ENTERED INTO BY THE MANUFAC TURER OF ARTICLES FROM NON-DUTY-PAID EXCISABLE GOODS UNDER RULE 191-BB OF THE CENTRAL EXCISE RULES, 1944

(Delete the letters and words not applicable)

I/we ........................................................ of ......................................... hereinafter called the obligor(s) am/are jointly and severally bound to the President of India (hereinafter referred to as the Government) in the sum of rupees ................................................................ to be paid to the Government for which payment I/We jointly and severally bind myself/ourselves and my/our legal representatives.

WHEREAS the above bounden obligors have applied to the Assistant Collector of Central Excise at ......................... for, and obtained his permission vide Registration Certificate No. dated ............................................... to manufacture the following articles, for export outside India, and to receive from time to time, for the manufacture of the said articles, the excisable goods indicated against each such articles in quantities as may be required by the obligor(s) but not exceeding the limits specified hereunder, without payment of duty from the place of the production or manufacture or storage as the case may be.

Description of the articles Excisable goods required for manufacture Description Quantity not exceeding the following limits.

 AND WHEREAS the Assistant Collector has required the obligor(s) to deposit as guarantee for the amount of this bond

the sum of Rupees in cash the securities as hereinafter mentioned of a total face value of rupees ...................................... endorsed in favour of the Assistant Collector of Central Excise namely :-

AND WHEREAS the obligor(s) has/have furnished such guarantee by depositing with the Assistant Collector of Central Excise the Cash/Securities as aforementioned;

Now THE CONDITION OF THIS BOND is that if the said obligor(s) shall undertake manufacture and export of articles as per provision of Rule 191BB read with notification issued thereunder to the satisfaction of the Assistant Collector.

AND, if the obligor(s) shall not make any change in the nature or manner of manufacture specified in his/their application or use the said excisable goods for any purpose other than that stated in the application without prior approval of the Assistant Collector.

AND, if the obligor(s) shall observe all the provisions of the Central Excise Rules, 1944 and all amendments therein issued from time to time, so far as they relate to the use of excisable goods without payment of duty in the manufacture of such articles and for removal of such articles for export; and if all dues, whether excise duty, or other lawful charges which shall be demandable on the said articles and goods as shown by records of the proper officer be duly paid into the treasury to the account of the Collector/Assistant Collector within 10 days of the date of demand thereof being made in writing by the said officer.

THIS obligation shall be void.

OTHERWISE and on breach or failure in the performance of any part of this condition the same shall be in full force, AND the Government shall, at its option, be competent to make good all the loss and damages either from the amount of the guarantee deposit or by enforcing its rights under the above written bond or by both.

I/WE declare that this bond is given under the orders of the Central Government for the performance of an act in which the public are interested.

Place:

Date:

(1) Witness                               (1)Address                               (1)Occupation

(2)Witness                                (2)Address                               (2)Occupation

Accepted by this….day of….19

..................of Central Excise (for and on behalf of the President of India)