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TMI BlogEOUs/EHTP/STP Units – Goods Manuf. and Packaging or Job Work for Export – No Excise DutyX X X X Extracts X X X X X X X X Extracts X X X X ..... kaging or job work for export of goods or services, into export oriented undertakings (hereinafter referred to as the user industry) other than those units referred to in clauses (b) to (c); (ii) manufacture or development of software, data entry and conversion, data processing, data analysis, control data management or call center services for export, into Software Technology Park (STP) Unit or a unit in Software Technology Park Complex under the hundred percent export oriented scheme (hereinafter referred to as the user industry ); or (iii) the manufacture or development of electronics hardware or electronic hardware and software in an integrated manner for export, into Electronics Hardware Technology Park (EHTP) unit or a unit in an Electronic Hardware Technology Park Complex (EHTP) under the hundred percent. export oriented Scheme ( hereinafter referred to as the user industry); or (b) 38 [ High Speed Diesel oil for power generating sets as approved by the Board of Approval , shall be substituted and for the words and figures -III the words and letter as specified in Annexure - B ] when brought in connection with production, manufacture or packaging of goods as s ..... 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Customs or Assistant Commissioner of Customs, as the case may be, (hereinafter referred to as the said officer) in the prescribed form and for such sum as may be specified by the said officer for the proper account of the receipt, storage and utilization of such goods, to achieve positive Net Foreign exchange Earning and comply with the conditions stipulated in this notification and the Foreign Trade Policy, and binding itself to pay on demand,- (a) an amount equal to duty leviable on the goods and interest at the rate specified in the notification of the Government of India, Ministry of Finance, Department of Revenue issued under section 11 AB of Central Excise Act, 1944 (1 of 1944) from the date of duty free procurement of the said goods till the date of payment of such duty, if - 26 [(i) in the case of capital goods, such goods are not proved to the satisfaction of the said officer to have been installed or otherwise used within the user industry, within the period of validity of the Letter of Permission (LoP); (ii) in the case of goods other than capital goods, such goods as are not proved to the satisfaction of the said officer to have been u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue issued under section 11 AB of the Central Excise Act, 1944, from the date of procurement of the said goods till the payment of such duty. (5) the manufacturer of said goods follows the procedure contained in rules 11and 43 [ 16 of the Central Excise Rules, 2017 ] ; (6) Omitted (7) the user industry engaged in trading shall not be allowed to,- (i) sell any goods so brought in the domestic tariff area or remove samples in the domestic tariff area ; (ii) export goods through merchant exporter or through any other exporters; (iii) transfer the goods to other export oriented undertaking or unit in Electronic Hardware Technology Park(EHTP) or Software technology Park(STP)or special economic zone; (iv) remove the goods outside the 30 [premises of the unit] for the purpose of jobwork; 2. The said officer may, subject to such conditions and limitations as may be imposed by him and subject to the provisions of the Foreign Trade Policy, (i) permit the goods or goods partially processed, manufactured, produced or packaged in the user industry to be taken outside the user industry without payment of duty, for the purposes of repairs, processing, testing, display ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specified in clauses (a) to (d) of paragraph 1, after giving intimation to the said officer and subject to maintenance of proper accounts of removal and receipt of goods 31 [***] (2b) The user industry may supply or transfer capital goods to another unit in a Special Economic Zone (SEZ) or Software Technology Park (STP) unit or Electronic Hardware Technology Park (EHTP) unit or to another Export Oriented Undertaking (EOU), as the case may be, for use within the unit after giving intimation to the said officer, subject to maintenance of proper accounts of removal and receipt of goods 32 [***] 16 [such transferred goods may also be returned by the second unit to the original unit in case of rejection without payment of duty after giving prior intimation to the said officer 32 [***].]. ; 2A. The user industry may supply or transfer capital goods to any other user industry or to a unit in special economic zone subject to the condition that the user industry shall give prior intimation to the jurisdictional Deputy Commissioner or Assistant Commissioner of Customs or Central Excise, as the case may be, before such supply or transfer of capital goods. 2B. The user industry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld, silver, platinum, diamond, precious and semi precious stones.] Explanation. - The consultancy fees received by software delopment units in convertible foreign currency for consultancy service for development of software on 'site' abroad shall be deemed to be export for the purposes of fulfillment of positive Net foreign exchange Earning under this notification. 4. The user industry engaged in the processing or manufacture or production of articles of granite for export as specified in clause (d) in the opening paragraph, may be allowed to take the goods, 44 [ as specified in Sl. No. 23 to 53 of Annexure-A, procured without payment of duty prior to 30.06.2017 ] , out of the 33 [ premises of the unit ] to the granite quarries for the purposes of quarrying of granite subject to the following conditions, namely- (i) the quarries are in the name of the user industry either on lease basis or on ownership basis. The location and area of quarries or any subsequent change in location of quarry or quarries at a later stage shall be intimated by the user industry to the Development Commissioner and the said officer; (ii) the goods are used by the user industr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prior to 30.06.2017 ] ; and (b) production or manufacture or packaging of articles as specified in clause (b) of opening paragraph of this notification to take out goods as specified at Sl. Nos. 46 [ 1 to 9 of Annexure-A, procured without payment of duty prior to 30.06.2017 ], to the fields and farms of contract farmers of the user industry for production or in connection therewith; and to bring back the produce to the user industry for exports, in accordance with the provisions of Foreign Trade Policy and Handbook of Procedures, Volume-I and subject to the following conditions:- (i) the user industry shall produce an agreement between it and contract farmer(s) to the said officer; (ii) in case of user industry other than those which are in existence for less than two years, they shall be required to furnish a bank guarantee equal to the total duty foregone on the goods so transferred to the fields or farms of contract farmers; (iii) prior to procurement of the goods, the user industry shall apply to the said officer, giving the details, such as, number of contact farmers and location of their farms, measurement of the farms or fields under contact farming, input-out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aging of such articles) even if not exported out of India are allowed to be cleared outside the user industry under and in accordance with the Foreign Trade Policy and subject to such other limitations and conditions as may be specified in this behalf by Development Commissioner, or the Board of Approval or the Inter Ministerial Standing Committee (IMSC), as the case may be, on payment of applicable duty of excise, or where such articles are cleared to the warehouse appointed or registered under notification of the Government of India in the Ministry of Finance, Department of Revenue, No. 26/98-Central Excise (NT), dated the 15th July,1998 or No. 46/2001-CE ( NT), dated 26th June, 2001 or cleared to the warehouse authorised to carry on manufacturing process or other operation under section 65 of the Customs Act, 1962 (52 of 1962) and under the Manufacture and Other Operations in Warehouse Regulations, 1966, 9 [or cleared to organizations which are entitled for duty free import of such goods in terms of the following exemption notifications- 1. 47 [No. 36/2017 Customs dated the 30th June 2017] 2. No. 152/94-Customs dated the 13 th July, 1994 3. No. 39/96-Cust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic zone without payment of duty: Provided that both supplying and receiving unit shall maintain account for the quantity of consumables and raw materials used in generation of each unit of power so transferred as quantified on the basis of norms approved by the Board of Approval, for the purpose of calculation of Net Foreign exchange Earning (NFE). 8. Without prejudice to any other provision contained in this notification, the said officer may, subject to such conditions and limitation as he may deem fit to impose under the circumstances of the case for the proper safeguard of the revenue interest and also subject to such permission of the Development Commissioner or the Board of Approval or the Inter Ministerial Standing Committee as the case may be, where it is exclusively required under Foreign Trade Policy, allow the user industry to clear any of goods for being taken outside the premises of such user industry to any other place in India 35 [***] in accordance with the Foreign Trade Policy - 2 [ Provided that no such clearance 35 [***] of capital goods under the Export Promotion Capital Goods Scheme of Chapter 5 of the Foreign Trade Policy shall be allowed if th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment of excise duty leviable 49 [ but for exemption ] on such goods, on the full value at the time of their clearance from the factory of manufacture 50 [*********] . [Omitted] Explanation :-............ Provided that in a case of exit by a user industry where positive NFE criteria is fulfilled in terms of 57 [ Para 6.17(g) ] of Foreign Trade Policy, such clearance 35 [***] of goods shall be allowed under Advance Authorization as one time option on payment of applicable duty. 9. Notwithstanding anything contained in this notification, the said officer subject to the approval of the Commissioner of Customs or Commissioner of Central Excise, as the case may be, may allow diesel generating sets, captive power plants, central air-conditioning equipments, uninterrupted power supply system, networking equipments, EPABX, fax, photocopier equipments, data transfer protocol equipments and security system procured by an export oriented undertaking, or Electronic Hardware Technology Park (EHTP) unit, or Software Technology Park (STP) unit to be utilized by other export oriented undertaking, or Electronic Hardware Technology Park (EHTP) unit, or Software Technology Pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the donee and such goods shall not be used by the donee for any commercial purposes, and shall not be sold, disposed of, gifted, loaned, exchanged or parted with without the permission of the said officer having jurisdiction over the donor unit, within a period of five years from the date of receipt of the said goods and during the said period of five year and the jurisdictional Deputy Commissioner or Assistant Commissioner of Customs, as the case may be, may inspect the school, educational institution, charitable hospital, public library, establishment or community information centre, as the case may be, specified in clauses (i) to (viii) on random basis to ensure that the goods are actually there and have not been diverted or put to unauthorized use: Provided that where the donee is a school, educational institution, charitable hospital, public library, establishment or community information centre, as the case may be, specified in clauses (i) to (viii) (hereafter in this proviso referred to as the said organization), but not run by the Central Government, Government of a State, or a Union territory, or a local body, the donor unit shall furnish a certificate issued by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the list of goods to be procured under this clause shall be approved by the Board of Approval and the unit shall fulfill such conditions as may be specified by the Board of Approval in this behalf; and (d) the goods procured and articles manufactured by the unit shall be listed out separately in the export documents: ; 11 [ Provided that the export value of such spares, components, promotional material and goods procured for consolidation shall not be taken into consideration for fulfillment of Net Foreign Exchange Earnings (NFE) and for availing Domestic Sale Entitlement as specified in 60 [ paragraph 6.07 ] of the Foreign Trade Policy. The goods procured for consolidation shall not be allowed to be sold in Domestic Tariff Area. ; ] 10B.Notwithstanding anything contained in this notification, if the said officer is satisfied that the unit, engaged in the manufacture of textiles and textile articles has left over textile fabric or textile material, he shall allow such unit to clear such left over textile fabric or textile material into Domestic Tariff Area on payment of duty 51 [ but for exemption ] on transaction value as if the goods have been manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d undertaking in clause (ii) to the Explanation of sub-section (1) of section 3 of the Central Excise Act, 1944 ( 1 of 1944); (v) Electronic Hardware Technology Park (EHTP) unit means a unit established under and in accordance with the Electronic Hardware Technology Park Scheme notified by the Government of India in the Ministry of Commerce, vide notification No. 5(RE-95)/92-97, dated 30th April, 1995 and approved by the Inter Ministerial Standing Committee; 63 [ (vi) Handbook of Procedures means Handbook of Procedures, 2023 notified by the Ministry of Commerce and Industry published in the Gazette of India, Extraordinary, Part-I, Section-I, vide Public Notice No 01/2023, dated the 1st April, 2023; ] (vii) Inter-Ministerial Standing Committee means a committee appointed by the Government of India in the Ministry of Industry (Department of Industrial Development) vide notification No. S.O. 117(E), dated the 22nd February, 1993; (viia) merchant exporter means a person engaged in trading activity and exporting goods (viii) Software Technology Park (STP) unit means a unit established under and in accordance with Scheme notified by the Government of Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aptop, server, spares and consumables thereof. 4. Raw materials. 5. Components. 6. Consumables. 7. Packaging materials. 8. Tools, jigs, gauges, fixtures, moulds, dies, instruments and accessories and spares thereof. 9. A Prototype or technical samples for each of the existing products for the purpose of product diversification, development or evaluation. 10. Filters. 11. Dripliers, Drip lines and Drip-fittings. 12. Micro Sprinklers and Misters. 13. Agriculture Sprinklers 14. Fertilizer Tanks. 15. Valves. 16. Fertilizer pumps and Chemical injection. 17. Plant or parts thereof, seeds, saplings, tubers, bulbs, Rhizomes, roots cuttings, all types of grafts, tissue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aulic Oil and Lubricants 48. Explosives 49. Chisels, Hammers, Chain Pulley Blocks 50. Steel Pillow Kits 51. Dust Collector 52. Consumables and Tools 53. Spares upto a value of 5 per cent of the value of respective goods specified at Sl. No. 23 to Sl. No. 51 in each financial year. ANNEXURE -B Sl. No. Description of Goods 1. Live animals 2. Bird's eggs (fresh) in shells of heading 0404. 3. Live trees and other plants; bulbs, roots and the like, cut flowers and ornamental foliage. 4. Fresh vegetables; whole uncut sun dried vegetables; Fresh and uncut/sun dried roots and tubers of Chapter 7. 5. Fresh and uncut/sun dried edible fruits and nuts of Chapter 8. 6. Fresh or sun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and components for after-sale-service during the warranty period of the exported articles to the same consignor or buyer to whom manufactured articles were exported subject to the condition that such supply is specifically stipulated in the relevant export contract; 4. In the annexure item no. 28 substituted by Notification no. 24/2008 CE dated 11-4-2008 , prior to substitution it was red as, 28. Any other item required in relation to production of export goods with the prior approval of Board of Approval / Inter-Ministerial Standing Committee 5 . Substituted vide notification no. 26/2008 CE dated 5-5-2008 , before substitution it was read as Provided that- (a) where no SION norms have been notified, the generation of waste, scrap and remnants upto 2% of quantity of the inputs procured shall be allowed; (b) where additional items other than those given in the SION are required as inputs or where the user industry considers the existing SION as inadequate or where generation of waste, scrap and remnants is beyond 2% of the inputs procured, use of such goods shall be allowed on the basis of self-declared norms till such norms are fixed on ad hoc basis by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce No. 1 /2004-09, dated the 31st August, 2004 as amended from time to time. ] 14. Substituted vide, Notification No. 25/2009-CE., dated 14-9-2009, before substitution it was read as:- [ Status holder means importer recognized as Export House (EH), Star Export House (SEH), Trading House (TH), Star Trading House (STH) and Premier Trading House (PTH) in terms of paragraph 3.5.2 of the Foreign Trade Policy , ]. 15. Substituted vide, Notification No. 25/2009-CE., dated 14-9-2009, before substitution it was read as:- NFE means Net Foreign Exchange Earnings in terms of Para 6.5 of Foreign Trade Policy and Para 6.10.1 of Handbook of Procedure, volume 1 and shall be calculated in the manner explained in Annexure-I to Appendix 14-I-G of Handbook of Procedure, volume 1. 16. Inserted vide Not. 28/2015 - Dated 15-5-2015 17. Inserted vide Not. 28/2015 - Dated 15-5-2015 18. Inserted vide Not. 28/2015 - Dated 15-5-2015 19. Inserted vide Not. 28/2015 - Dated 15-5-2015 20. Inserted vide Not. 28/2015 - Dated 15-5-2015 21. Inserted vide Not. 28/2015 - Dated 15-5-2015 22. Substituted vide vide Not. 28/2015 - Dated 15-5-2015 before it was read as, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore it was read as, (iii) the capital goods or reject, waste or scrap material, if such goods are destroyed within the user industry in the presence of the central excise officer or out side the user industry, where it is not possible or permissible to destroy the same within the user industry: Provided that the remnants, remains or scrap after such destruction, if cleared into Domestic Tariff Area, applicable duty shall be levied on such goods: 28. Inserted vide Not.30/2015 - Dated 25-5-2015 29. Substituted vide Not. 45/2015 - Dated 24-11-2015 , before it was read as, Provided further that where such articles (including rejects, waste, scrap and remnants) are either non excisable or such articles (including rejects, waste, scrap and remnants), if imported, are leviable to nil rate of duty of customs specified under First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and nil additional duty leviable under section 3 of the said Customs Tariff Act, read with exemption notification in this regard , if any, no exemption in respect of inputs utilized for the purpose of processing, manufacture, production or packaging of such articles (including rejects, wast ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,- (i) the duty of excise leviable thereon under section 3 of the Central Excise Act, 1944 (1 of 1944); (ii) the additional duty of excise, if any, leviable thereon under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957); and (iii) the additional duty of excise, if any, leviable thereon under section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 ( 40 of 1978), 43. Substituted vide NOTIFICATION No. 23/2018-Central Excise dated 05-12-2018 before it was read as 20 of the Central Excise Rules, 2002 44. Substituted vide NOTIFICATION No. 23/2018-Central Excise dated 05-12-2018 before it was read as as specified in Annexure- V 45. Substituted vide NOTIFICATION No. 23/2018-Central Excise dated 05-12-2018 before it was read as 14 to 26 in Annexure-I 46. Substituted vide NOTIFICATION No. 23/2018-Central Excise dated 05-12-2018 before it was read as 4 to 12 in Annexure-I 47. Substituted vide NOTIFICATION No. 23/2018-Central Excise dated 05-12-2018 before it was read as No. 106/58-Customs dated the 29 th March, 1958 48. Substituted vide NOTIFICATION No. 23/2018- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... approved by the said officer. 6. Office Equipment including PABX, fax machines, video projection system, computer, laptop, server, spares and consumables there of. 7. Raw materials. 8. Components. 9. Consumables. 10. Packaging materials. 11. Tools, jigs, gauges, fixtures, moulds, die, instruments and accessories and spares thereof. 12. A Prototype or technical samples for each of the existing products for the purpose of product diversification, development or evaluation. 13. Drawings, blue prints and charts. 14. Filters 15. Dripliers, Drip lines and Drip-fittings 16. Micro Sprinklers and Misters 17. Agriculture Sprinklers 18. Fertilizer Tanks 19. Valves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... like. 5. Plant or parts thereof, seeds, saplings, tubers, bulbs, Rhizomes, roots cuttings, all types of grafts, tissue culture material, and other vegetatively propagated material utilized for sowing and planting. 6 Filters 7. Dripliers, Driplines and Drip-fittings 8. Micro Sprinklers and Misters 9. Agriculture Sprinklers. 10. Fertilizer tanks. 11 Valve. 12. Fertilizer Pumps and Chemical Injections. 13. Animal feed such as cattle feed and poultry feed. 14. Veterinary medicines including vaccines. 15. Packaging materials including machinery and equipment for packaging. 16. Cooling equipment for cold room, storage room, pro-cooling chambers and its accessories. 17. Sorting equipment, Grading equipme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs, pesticides, fungicides, veterinary medicines including vaccines. 7. Office equipments, spares and consumables, thereof. 8. Feed for prawns/fish and other aquatic animals including Artemia (Brain Shrimp eggs) and other Hatchery feeds. 9. Raw materials for feeds for aquatic animals, namely, meals of fish and other aquatic invertebrates like squid/prawns in liquid, powder or other forms, fish lipid oil, squid oil, veterinary grade premix of vitamins/ minerals not suitable for human consumption, sea weed powder, kalp Meal, Molasses, yeast, choline chloride, Antioxidents excluding Vitamins, Licithin, Di-calcium Phosphate and Calcium Lactate which are capable of use in other than veterinary application. 10. Preservatives, pre-mix taste makers, battering materials, special cooking medium, bread crumbs/powder. 11 Packaging materials, all sorts. 12. High Speed Diesel oil for power generating sets as recommended by Board of Approvals. ANNEXU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -2023 before it was read as, Para 6.18 (g) 58. Substituted vide NOTIFICATION NO. 20/2023-Central Excise dated 26-04-2023 before it was read as, para 6.12(g) of Foreign Trade Policy 2015-2020 59. Substituted vide NOTIFICATION NO. 20/2023-Central Excise dated 26-04-2023 before it was read as, Para 6.08 (a) of Foreign Trade Policy 2015-2020 60. Substituted vide NOTIFICATION NO. 20/2023-Central Excise dated 26-04-2023 before it was read as, paragraph 6.8 61. Inserted vide NOTIFICATION NO. 20/2023-Central Excise dated 26-04-2023 62. Substituted vide NOTIFICATION NO. 20/2023-Central Excise dated 26-04-2023 before it was read as, 22 [(iii) Foreign Trade Policy means Foreign Trade Policy, 2015 - 2020 notified by the Government of India in the Ministry of Commerce and Industry published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification No. 01/2015-2020 dated the 1 st April, 2015; ] 63. Substituted vide NOTIFICATION NO. 20/2023-Central Excise dated 26-04-2023 before it was read as, 23 [(vi) Handbook of Procedures means Handbook of Procedures notified by the Government of India i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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