Exemption to goods when brought to Noida Export Processing Zone - 05/86 - Central Excise - Tariff

Exemption to goods when brought to Noida Export Processing Zone

Notification No. 5/86-C.E.

Dated 20-1-1986

In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts excisable goods when brought into NOIDA Export Processing Zone, being a free trade zone (hereinafter referred to as the Zone) from the factories of their manufacture or warehouses situated in other parts of India for use by the industries located in the Zone for the production of goods or in connection with production of goods intended solely for export from the whole of —

(i) the duty of excise leviable thereon under section 3 of the Central Excises and Salt Act, 1944 (1 of 1944), and

(ii) the additional duty of excise leviable thereon under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), subject to the following conditions, namely :—

(a) the consignee is authorised to establish manufacturing unit or units in the Zone;

(b) the consignee brings the excisable goods directly from the factory of manufacture or warehouse;

(c) the entire excisable goods so brought are used by or on behalf of the consignee in the Zone for the production of goods or in connection with the production of goods solely meant for export and all such goods are exported; and

(d) the procedure set out in the Appendix to this notification is followed in the Zone.

2. Notwithstanding anything contained in this notification the goods produced for manufactured in the Zone may be cleared for home consumption outside the Zone in such quantity and subject to such limitations and conditions as may be specified by the Development Commissioner of the Zone (hereinafter referred to as the Development Commissioner), on payment of duty of excise leviable on such goods under section 3 of the Central Excises and Salt Act, 1944 (1 of 1944).

3. For the purpose of this notification, the "NOIDA Export Processing Zone" shall comprise the places bearing the khasra numbers or survey numbers, as the case may be, and enclosed by the boundaries specified in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 4/86-Central Excises, dated the 20th January, 1986.

APPENDIX

Procedure to regulate 'inbond' movement of duty free excisable goods for use in the Zone

(a) Application for obtaining duty free goods by plot holder at NOIDA Export Processing Zone. — Any person intending to obtain duty free goods for use by him in his factory or warehouse situated in the Zone shall make an application in writing to the Development Commissioner in proper form to be prescribed by the Development Commissioner, stating therein the annual quantity of the excisable goods required and the purpose for and the manner in which such goods are intended to be used and declaring that the goods will be used for such purpose and in such manner only. The Development Commissioner or any officer duly authorised by him may grant the application after causing such inquiries to be made as he may deem fit and the applicant shall then enter into a bond in the form given in Annexure D1 to D4 below with such surety or sufficient security, in such amount and under such conditions as the Development Commissioner may approve. The Development Commissioner may, however, allow the annual quantity of excisable goods to be brought as furnished by the manufacturer or such quantity as the Development Commissioner may extend on a request to that effect. The concession shall expire on the 31st December every year, but may be reviewed if the Development Commissioner or a duly authorised officer sees no reason to the contrary :

Provided that, in the event of death, insolvancy or insufficiency of the surety, or where the amount of the bond is inadequate, the Development Commissioner or his duly authorised officer may, in his discretion, demand a fresh bond, and may, if the security furnished for a bond is not adequate, demand additional security.

After the grant of the application and execution of bond by the applicant the security officer will issue a certificate, in the form given in Annexure E below certifying that, —

(i) the applicant is a bona fide plot holder of the Zone;

(ii) has executed a bond in the form given in Annexure D1 to D4 below with the Zone authorities showing the number and particulars of the bond; and

(iii) that the specimen signatures of the authorised agent of the importer furnished on the body of the certificate is genuine and he would attest it. The certificate will be sent by the security officer under registered post (acknowledgment due) to the factory or warehouse from which the goods are to be obtained. A copy of the certificate will also be sent by the security officer to the Superintendent of Central Excise in-charge of the range under which the factory or warehouse, from where the goods are to be received, falls.

(b) Removal of goods to NOIDA Export Processing Zone. — On receipt of the aforesaid certificate the factory or warehouse (consignor) from where the goods have to be removed shall prepare an application in the form given in Annexure A below in quadruplicate for removal of non-duty paid goods from one warehouse to another mentioning clearly the number and date of the bond in Annexure D1 to D4 as per the certificate issued by the Security Officer of the Zone. Removal Application in Annexure A below must be serially numbered. The Serial No. should be according to the financial year. The Serial No. must be noted on all the copies. Whenever any removal application has to be cited in the course of correspondence, the name of the factory or warehouse, the serial number and date of Annexure A below should always be quoted as reference. The consignor shall, however, intimate, to the proper officer about the removal of goods at least 12 hours before such removal is expected to take place.

(c) Marking of the Packages. — Packages to be marked and address to be noted in the application.

The factory or warehouse of removal (consignors) must —

(i) ensure the packages bear proper marking and number;

(ii) ensure that all copies of Annexure A below are prominently marked "Intended for use in Noida Export Processing Zone";

(ii) give the full address of the factory or warehouse of removal as well as of the Superintendent of Central Excise in-charge of the range under which the factory or warehouse falls and the Central Excise Collectorate to which it is attached.

Whenever any of these addresses is used for despatching purposes, care must be taken by the despatching factory or warehouse to see that the full address of the Superintendent of Central Excise in-charge of the range including the names of the district is properly reproduced.

(d) Preparation of GatePass. — The consignor shall also prepare a gate pass in form G.P. 2 in Appendix Z to the Central Excise Rules, 1944 in respect of the goods proposed to be removed from his warehouse and will thereafter clear the goods on his own without any verification by any Central Excise Officer.

(e) Disposal of documents in Annexure A and GatePass. — The consignor shall send the original and triplicate copy of Annexure A below and original copy of the gate pass along with the consignment to the consignee. The duplicate copy of Annexure A below will be sent by the consignor to the Development Commissioner. The quadruplicate copy of Annexure A below along with a copy of the gate pass will be sent by the consignor to the officer-in-charge of his factory or warehouse within 24 hours of the removal of the consignment in question. The said officer-in-charge shall maintain an account of all such removal in Annexure B below.

(f) Action at destination. — On receipt of the duplicate copy in the Zone's Administrative Office, it must immediately be entered in the "Record of Receipts in bond" given in Annexure C below and forwarded the same day to the Security Officer. The entries in this record should be verified against relative entries of the Record of Raw Materials prescribed by the Development Commissioner.

(g) Responsibility for further accounting. — After delivery of the non-duty paid excisable goods from a manufacture in the rest of India to the Plot holder in the Zone, proper accounting of these goods will be the responsibility of the Zone authorities.

(1) (h) Examination of the consignment on receipt. — The consignee must give intimation of the arrival of the consignment at his premises to the Security Officer of the Zone without any delay and should store the same separately and intact, pending examination and check by the Preventive Officer who will be deputed by the Security Officer for this purpose. The Preventive Officer after taking account of the goods will identify them with the marks and numbers, and weigh the consignment in full. Thereafter, he shall complete the re-warehousing certificate on the duplicate copy received from the Security Officer and original and triplicate copy of the applications presented by the consignee, return duplicate to the Central Excise Officer-in-charge of the factory or warehouse of removal direct and triplicate to the consignee for despatch to the consignor after noting thereon the deficiency or excess, if any.

(2) Duty on shortages/losses in transit. — Since the bond in Annexure D1 to D4 (surety/security/general surety/general security) would have been executed by the consignee, duty on shortages will be demanded from him after condoning the permissible losses in transit. For each commodity a separate schedule of losses will be formulated and issued by the Development Commissioner.

(i) Re-entry. — If the duplicate application is received by the Security Officer of the Zone, before the arrival of the goods is reported to him by the consignee, he must keep it pending, securely and systematically filed in a file marked "pending duplicate in Annexure A application" and record the particulars of the consignment in his "Record of receipts in bond" prescribed as in Annexure C below and no sooner the consignment is received, he will follow the procedure prescribed in paragraph (h) above.

(j) Duty leviable on excisable goods not duly accounted for as having been utilised in the manufacture of goods for export, etc.— If any excisable goods obtained under this procedure are not duly accounted for as having been utilised in the production of goods or in connection with the production of goods meant for export only, or are not shown to the satisfaction of the proper officer to have been lost or destroyed by natural causes or by unavoidable accidents during storage or handling in the approved premises, or, have been permitted to be disposed of as refuse or wastage within the permissible limits prescribed by the Development Commissioner, the applicant shall, on demand by the proper officer, immediately pay the duty leviable on such goods. The concession may at any time be withdrawn by the Development Commissioner if a breach of the procedure is committed by the applicant, his agent or any person employed by him. In the event of such a breach, the Development Commissioner may also order the forfeiture of the security deposited under paragraph (a) above and may also confiscate the excisable goods and all goods manufactured from such goods in store in the premises of the applicant.

(k) Despatch of duplicates by registered post acknowledgment due. — Despatch of the duplicate application in Annexure A referred to in paragraph (e) above must always be made by registered post acknowledgment due, and the postal receipt acknowledgment must be systematically filed by the consignor and presented for inspection to the Superintendent of Central Excise in-charge of the factory whenever required.

(l) Demand of duty on goods not reaching destination. — Under sub-rule (1) of rule 156-B of the Central Excise Rules, 1944, if the certificate of re-warehousing of a consignment of excisable goods despatched to the consignee at the Zone [as per paragraph (h)(1)] is not received back by the consignor within 90 days of the removal of the goods or within such extended period as may be allowed by the Collector of Central Excise it is the responsibility of the consignor to himself pay the duty leviable on the consignment by a debit entry in his account current. However, a provision has been made that in such cases where the consignor produces proof of re-warehousing to the satisfaction of the proper officer after payment of duty in the manner indicated above, he will be eligible for grant of refund of the duty so paid by making an application.

The Officer-in-charge of the factory or warehouse may also demand duty on a consignment the re-warehousing certificate in respect of which has not been received within the stipulated period. In such cases if the consignor has already paid the duty leviable on the consignment by a debit entry in his account current, he may intimate the officer in-charge about the particulars of such deposit in reply to this notice of demand.

(m) Action by the officer-in-charge of the factory or warehouse of removal in case of non-receipt of the warehousing certificates. — If the duplicate copy of Annexure A below [see paragraph h (1)] is not returned to the officer-in-charge of the factory or warehouse of removal within a month of the removal of consignment, reminders must be issued regularly at fortnightly intervals to the security officer of the Zone. If, despite such reminders the duplicate application is not received within two months of the date of removal of the consignment, the matter should be reported to the Assistant Collector of Central Excise in whose charge the consignor operates who must immediately communicate with the Assistant Collector of Customs of the Zone and either secure a satisfactory proof of the consignment having been duly received by the importer at the Zone or ensure that the duty properly due on the goods not so received at destination is recovered as per paragraph (1) above.

(n) Verification of the use of non-duty paid goods. — On receipt by the consignee, such goods shall be utilised in the production of goods or in connection with the production of goods intended (solely) for export. It shall be the responsibility of the Assistant Collector of Customs/Security Officer of the Zone to ensure that all non-duty paid goods have been fully utilised for the production of goods or in connection with the production of goods intended for export only or are otherwise  accounted for to the  satisfaction of  the Development Commissioner.

Range …………Original

Duplicate

Triplicate

Quadruplicate

ANNEXURE A

FORM A.R. 3-A

Application for removal of excisable goods from a bonded warehouse in India to a plot in the NOIDA Export Processing Zone

I/We holder(s) of Central Excise Licence No...............in Form............ Apply for leave to remove the undermentioned goods from the warehouse at ……... to the Factory at Plot No. .............. of Sector No...............of Mr./Messrs ....................... of the NOIDA Export Processing Zone.

Number and date of entry in warehouse register	Description of goods	No. and description of packages	Gross weight of packages	Marks and number of packages	Quantity of goods
(1)	(2)	(3)	(4)	(5)	(6)
Date of first warehousing (in the case of tobacco only)	Value	Duty		Manner of transport	Remarks
		Rate	Amount
(7)	(8)	(9)	(10)	(11)	(12)

1.	To be entered by the consignor/owner or his authorised agent in words and figures.
2.	The aforesaid Mr./Messrs ........ have executed a bond at destination; in Form B-5A. (Surety or Security) or B-5 (Gen-Sur) bearing No ...... dated ............... for rupees ..................

Delete the entries not applicable.

A certificate from the Central Excise Officer of Central Excise ......... in Form C.T. 3 is attached.

3. I/We hereby declare the above particulars to be true.

Place Date

Signature of Consignor(s)/Owner(s) or his/their authorised agent.

(1) Certificate of Central Excise Officer at Warehouse of Removal.

To

The Security Officer,

NOIDA Export Processing Zone.

I hereby certify that the consignment conforms in all respects to the description given above and I have permitted removal under Transport permit in Form G.S. No. ...............dated ..............

Place Date

Inspector of Central Excise.

2. Certificate of Preventive Officer at Warehouses at NOIDA Export Processing Zone.

I hereby certify that the consignment arrived at Plot No. …..... of Sector...... of the NOIDA Export Processing Zone and that the goods conform in all respects to the description given above/overleaf/except for the following discrepancies and that they have been re-warehouses under Entry No ........... dated .............. of the Raw Materials Account Register prescribed by the Development Commissioner, NOIDA Export Processing Zone.

Place	Preventive Officer
Date	NOIDA Export Processing Zone.

ANNEXURE B

Record of Removals in Bond

Range Officer

Sl. No.	A.R. 3 No. & Date	Name, address & L.4 of the factory of removal	GOODS			DESTINATION
			Description	Net quantity dispatched		Name, address and L. 4 No. of the factory of NOIDA Export Processing Zone	Plot No...... Sector No...
(1)	(2)	(3)	(4)	(5)		(6)	(7)

Duplicate A.R. 3
No. and date of B-5A bond and by whom executed (Consignor or Consignee)	Date of Despatch to Security Officer at destination	Date of reminders issued for return	Date of return of duplicate	Date of dispatch of Circle Officer of origin for record
(8)	(9)	(10)	(11)	(12)

Whether triplicate A.R.3 received by consignor from consignee Yes/No	Date of re-warehousing			Gain (Plus) or loss (Minus) in transit				Action taken on loss, if bond taken from consignor	Remarks
				Total		Percentage of Col. 5
(13)		(14)	(15)		(16)		(17)		(18)

ANNEXURE C

NOIDA EXPORT PROCESSING ZONE

Record of Receipts in Bond (for NOIDA Export Processing Zone)

 

Sl. No.	No. and date of			Description of goods		Rate of duty
	A.R. 3A	Gate pass
(1)	(2)	(3)		(4)		(5)
No. of packages			Net Quantity		Name, L.4 No. and address of consignor	Duplicate A.R. 3A
						Date of receipt	Date of return
(6)			(7)		(8)	(9)	(10)

Gain (Plus) or Loss (Minus) in transit		Action taken on loss if bond taken from consignee	Remarks
Total	Percentage of Col. 7
(11)	(12)	(13)	(14)

ANNEXURE D-1

FORM B-5A (SURETY)

Bond (with surety) for the due arrival and re-warehousing of excisable goods removed from a warehouse in India to a factory in the NOIDA Export Processing Zone.

(Delete letters and words not applicable)

(1)  I/We ___________ of ______________. [hereinafter called the obligor (s)] and

(2) I/We _________ of (hereinafter called the surety) are jointly and severally bound to the President of India in the sum of ________ rupees to be paid to the President of India for which payment we jointly and severally bind ourselves and our legal representatives.

The above bounded obligor(s) being permitted to remove the goods described in his/their application No. _______, dated ______ from the bonded warehouse at ______ to the Factory at Plot No. ________ Sector No. _______of the NOIDA Export Processing Zone.

The condition of this Bond is that if the obligor(s) and his/their legal representatives shall observe all the provisions of the Central Excise Rules, 1944, and all such amendments thereto, as may be issued from time to time to be observed in respect of the goods so transferred;

And, if all the said goods are duly removed to and re-warehoused at the factory at NOIDA Export Processing Zone, before the _____ day of_________198.

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.

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		Signature(s) of Obligor(s)
(1) Witnesses	(1) Address	(1) Occupation
(2)	(2)	(2)

Place
Date		Signature of Suret
(1) Witnesses	(1) Address	(1) Occupation
(2)	(2)	(2)

Accepted by me this _________ day of _________ 198___________ of Central Excise

NOIDA Export Processing Zone

(for and on behalf of the President of India)

ANNEXURE D-2

FORM B-5A (SECURITY)

Bond (with security) for the due arrival and re-warehousing of excisable goods removed from a bonded warehouse in India to a factory in the NOIDA Export Processing Zone.

(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 in the sum of ___________ rupees to be paid to the President of India for which payment I/we jointly and severally bind myself/ourselves and my/our legal representatives.

The above bounden obligor(s) being permitted to remove the goods described in his/their application No. ______ dated ______ from the bonded warehouses at __________ to the factory of ______ at Plot No. _________ Sector No. _______ at NOIDA Export Processing Zone.

Whereas the Collector of Central Excise at ________ (hereinafter called the Collector) Development Commissioner, NOIDA Export Processing Zone [hereinafter, called the Development Commissioner 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 Collector/Development Commissioner, namely ___________

Whereas the obligor(s) has/have furnished such guarantee by depositing with the Collector/Development Commissioner the cash/securities as aforementioned;

The condition of this Bond is that if the obligor(s) and his/their legal representatives shall observe all the provisions of the Central Excise Rules, 1944, and such amendments thereto, as may be issued from time to time to be observed in respect of the goods so transferred;

And if all the said goods are duly removed to and re-warehoused at ______ before the ____ day of _______ 198

This obligation shall be void.

Otherwise and on breach or failure in the performance of any part of the condition the same shall be in full force.

And the President of India, shall, at his option, be competent to make good all the loss and damages either from the amount of the guarantee deposit or by enforcing his 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		Signature of obligor(s)
(1) Witnesses	(1) Address	(1) Occupation
(2)	(2)	(2)

Accepted by me this __________ day of ________________ 198.

	…………..of Central Excise…………..
	NOIDA Export Processing Zone
(for and on behalf of the President of India).

ANNEXURE D-3

FORM B-5 (GEN-SEC)

General bond (with security) for the due arrival and re-warehousing of excisable goods removed from a bonded warehouse in India to a factory in the NOIDA Export Processing Zone.

(Delete the letters and words not applicable)

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

The above bounden obligor(s) being permitted to remove from time to time, conditional on the provisions of the Central Excise Rules, 1944, being observed, from bonded warehouse(s) at __________ to a factory in NOIDA Export Processing Zone or vice versa.

Whereas the Collector of Central Excise at ___________.(hereinafter called the Collector) Development Commissioner, NOIDA Export Processing Zone [hereinafter called the Development Commissioner 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 Collector/Development Commissioner, namely.

And whereas the obligor(s) has/have furnished such guarantee by depositing with the Collector/Development Commissioner the cash securities as aforementioned. The condition of this bond is that if the obligor(s) or his/ their representative shall observe all the provisions of the said Rules and all such amendments thereto as may be issued from time to time to be observed in respect of the goods so removed from time to time.

And if the said goods are duly removed to and re-warehoused at the bonded warehouse(s) of destination to which they are permitted to be removed within such time as the proper officer directs;

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 President of India shall at his option be competent to make good all the loss and damages either from the amount of the guarantee deposit or by enforcing his rights under the above written bond or by both.

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

Place
Date		Signature(s) of Obligor(s)
(1) Witnesses	(1) Address	(1) Occupation
(2)	(2)	(2)

Accepted by me this ........….. day of ......... 198. ………..of Central Excise…….

NOIDA Export Paocessing Zone

(for and on behalf of the President of India),

ANNEXURE D-4

FORM B-5 (GEN-SUR)

General bond (with surety/ies) for the due arrival and re-warehousing or excisable goods removed from a bounded warehouse in India to a factory in the NOIDA Export Processing Zone.

(Delete the letters and words not applicable)

I/We .................. of ................... [hereinafter called the obligor(s)] am/are bound to the President of India in the sum of........................ rupees.

(i) I/We ...............(hereinafter called the "First Surety").

(ii) and I/We...........(hereinafter called the "Second Surety").

(iii) and I/We……… (hereinafter called the "Third Surety").

(iv) and I/We........... (hereinafter called the "Fourth Surety").

(all hereinafter collectively referred to as the First Surety, the Second Surety, the Third Surety, the Fourth Surety.....................)

am/are each of us severally bound to the President of India for the sum of rupees………. each/respectively to be paid to the President of India for which payment I/we the obligor/obligors bind myself/ourselves and my/our legal representatives and I/we the above named First Surety, the Second Surety, the Third Surety and the Fourth Surety, severally bind myself/ourselves and my/our legal representatives.

The above bounden obligor(s) being permitted to remove from time to time, conditional on the provisions of the Central Excise Rules, 1944 being observed …………… from the bonded warehouse(s) at............to a factory situated in the NOIDA Export Processing Zone, and vice versa.

The condition of this bond is that if the obligor(s) and his/their legal representatives shall observe all provisions of the said Rules and all such amendments thereto as may be issued from time to time.

And if the said goods are duly removed to and re-warehoused at the bonded warehouse(s) of destination to which they are permitted to be removed within such time as the proper officer directs.

This obligation shall be void.

Otherwise, and on breach or failure in the performance of any part of the condition, the same shall be in full force.

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

Place
Date		Signature(s) of Obligor(s)
Witnesses (1)	Address (1)	(1) Occupation
(2)	(2)	(2)
		Signature(s) of Surety(ies)
Witnesses (1)	Address (1)	(1) Occupation
(2)	(2)	(2)

Accepted by me this ……….. day of …….. 198.  ………….of Central Excise…….. of NOIDA Export Processing Zone

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

ANNEXURE E

Noida Export Processing Zone

No._______________

 Date _________________

FORM C.T.3

Certificate For Removal of Warehoused Goods Under Bond

This is to certify that :

(1) Mr./Messrs. ..........……… (name and address) is/are bona fide plot-holders in the NOIDA Export Processing Zone.

(2) That he/they has/have executed a bond in Form B-5A/B-5 (surety) (security) (general surety) (general security).

No. .......................... date .......................... for Rs. .............................. with the NOIDA Export Processing Zone Authorities and as such, may be permitted to remove …..... (Qty.) of ............ (excisable goods) from the factory at .............................. to his factory ..................... in the NOIDA Export Processing Zone.

(3) That the specimen signatures of his/their authorised agent namely Shri ...................... are furnished, herebelow duly attested;

Security Officer,

Noida Export Processing Zone

 

Specimen Signatures of owner or his authorised agent.

Sd/- Attested Security Officer