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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 ..... 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 specified in Annexure-III for export, into export ori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 used in connection with the production or packaging of goods for export out of India or cleared for home consumption within the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 or job-work or any other operation necessary for manufacture of the final product and to be returned to the user industry thereafter or remove the same without payment of duty under bond for export from job-worker's premises: Provided that waste or scr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 may take outside the unit sample of manufactured goods to any other user industry or to an unit in special economic zone, as the case may be, without payment of duty for display, after giving intimation to the said officer subject to the condition that such sample shall be returned to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 industry for the purpose of quarrying of granite meant for further processing or manufacture or production of articles of granite for export by its own export oriented undertaking; (iii) the user industry maintains a proper account of receipt, consumption and utilisation of the goods and, of granite so quarried and transferred to its processing unit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 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-output norms of production as fixed by Directorate General of Foreign Trade and their projected requirements and after examination of the such projected requirement, the said officer, shall give permission for the procurement of the same on annual basis; (iv) in case of failure of the user industry to bring back the agriculture or horticulture produce so produced in the fields ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 13th July, 1994 3. No. 39/96-Customs dated the 23rd July, 1996 4. No. 50/96-Customs dated the 23rd July, 1996 5. No. 84/97-Customs dated the 11th November, 1997 Issued by the Ministry of Finance in pursuance of 55[clause (e) of paragraph 6.08] of the Foreign Trade Policy, without payment of duty;] Provided that goods which have been repaired, reconditioned, re- engineered shall not be allowed to be cleared outside the units: 29[Prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 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 the user industry has not fulfilled the positive NFE criteria at the time of clearance 35[***] in terms of 56[Para 6.17 (d)] of Foreign Trade Policy.] (i) 6[such clearance 35[***] of capital goods may be allowed on payment of an 48[amount equal to the excise duty but for exemption on the depreciated value thereof], 35[***] , if the unit has fulfilled the positive NFE criteria taking into consideration the depreciation allowable on the capital goods at the time of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, 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 Park (STP) unit belonging to the owner of procuring unit for the purposes of development of software, data entry and conversion, data processing, data analysis and control data management or call center services and export thereof, but such goods shall not be removed from the premises of the procuring unit 19[The said officer subject to the approval of the Commissioner of Customs or Commissioner of Central Excise, as the case may be, may also allow sharing of infrastructural facilities among EOUs in accordance with and subject to the terms and conditions speci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 relevant Department of the Central Government or the concerned State Government or the Government of the Union territory, as the case may be, certifying that the said organization is recognized by the Central Government or the State Government or the Government of the Union territory and is run on a non commercial basis. 10A. Notwithstanding anything contained in this notification,- 3[(i) the exemption contained herein shall also apply to spares and components, to the extent of 5 percent. of the Free on Board (FOB) value of the manufactured articles exported by the user industry during the precedin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 manufactured in the unit: Provided that such clearance shall be allowed only where the said officer certifies that the textile fabric or textile material proposed to be cleared are left over and such clearance do not exceed two percent. of value or the quantity of consignments in the previous year to which such left over textile fabric or textile material relates, whichever is lower. 11. Nothing contained in this notification shall apply to the goods imported by service sector export oriented undertakings as specified in clause (a) in the opening paragraph, who does not export services outside India. 61[11A. Notwithstanding anything contained in this Notification, exemption from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 India in the Ministry of Commerce and Industry vide notification No. 4(RE-95)/92-95, dated 30th April, 1995 and approved by the Inter- Ministerial Standing Committee; (ix)"special economic zone" has the same meaning as assigned to it in clause (iii) to the Explanation 2 of sub-section (1) of section 3 of the Central Excise Act, 1944 ( 1 of 1944). 24[(x) 'Status holder' means importer recognised as One Star Export House, Two Star Export House, Three Star Export House, Four Star Export House or as the case may be, Five Star Export House, in terms of the Foreign Trade Policy;]]] (xi) "NFE" means Net Foreign Exchange Earnings in terms of 25[Para 6.04 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch as acetic acid and vinegar). 19. Grading Tables. 20. Green House equipment, accessories, heated rooting tables, propagation trays, seeding machines. 21. Growing media such as Peat Moss (including peat litres) (whether or not agglomerated), Pearlite /Vermiculate, Rockwool, Cocoa pet, Hydrocorn, Foam based medium and other cultivation medium. 22. Fertiliser and chemicals for pre and post harvest treatments such as micro nutrients, plant and growth regulators and other organic and inorganic substances used for plant nutrition, insecticides, fungicides, weedicides, herbicides and the like. 23. Hydraulic Excavators 24. Pneumatic Compressors 25. Jack Hammers 26. Hydraulic Drilling Machines 27. Line Drillers 28. Front End Loaders 29. Pneumatic Grinders 30. Diamond Wire Saws 31. Dressing Machine 32. Core Drilling Machine 33. Jet Burners 34. Cranes 35. Derricks 36. Tippers and Dumpers 37. Welding Machine 38. Generating sets 39. Steel Chains and Steel Ropes 40. D-Shackles 41. Diamond Wires 42. Diamond Segments 43. Tungsten Carbon Drill Rods 44. Steel Feathers & Wedges 45. Burner Nozzle 46. Welding rods 47. Hydraulic Oil and Lubric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; No. 1/2007-CE, dated 15-1-2007; No. 26/2007-CE, dated 6-6-2007; No. 29/2007-CE, dated 6-7-2007; No. 24/2008-CE, dated 11-4-2008; No. 26/2008-CE, dated 5-5-2008; No. 3/2009-CE, dated 23-2-2009 and No. 25/2009-CE, dated 14-9-2009]. 1. Inserted by Notification no. 24/2008 CE dated 11-4-2008 2. Inserted by Notification no. 24/2008 CE dated 11-4-2008 3. In paragraph 10A, clause (i), substituted by Notification no. 24/2008 CE dated 11-4-2008, prior to substitution it was red as, " (i) the exemption contained herein shall apply to spares and components up to 1.5 (one point five) percent. of Free on Board (FOB) value of manufactured articles exported by the user industry which manufactured such articles during the preceding year for the purpose of supply of such spares 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 ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ph 6.8 of the Foreign Trade Policy". 12. Substituted vide, Notification No. 25/2009-CE., dated 14-9-2009, before substitution it was read as:- [(iii) 'Foreign Trade Policy' means the Foreign Trade Policy, 1st September, 2004-31st March, 2009 published by the Government of India in the Ministry of Commerce and Industry vide notification No. 1/2004-09, dated the 31st August, 2004, as amended from time to time.] 13. Substituted vide, Notification No. 25/2009-CE., dated 14-9-2009, before substitution it was read as:-["(vi) 'Handbook of Procedures, Volume I' means Handbook of Procedures, Volume I, 1st September,2004 -31st March, 2009 published by the Government of India in the Ministry of Commerce and Industry vide Public Notice 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. Substitut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said officer may, on being satisfied that there is sufficient cause for not using them as above within the said period, allow ; (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 used in connection with the production or packaging of goods in accordance with SION for export out of India or cleared for home consumption within a period of three years from the date of procurement thereof or within such extended period as the said officer may, on being satisfied that there is sufficient cause for not using them as above within the said period, allow:" 27. Substituted vide Not.30/2015 - Dated 25-5-2015, before 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 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Excise dated 05-12-2018 before it was read as "all goods specified in Annexure II to this notification," 39. Substituted vide NOTIFICATION No. 23/2018-Central Excise dated 05-12-2018 before it was read as "all goods specified in Annexure IV to this notification," 40. Substituted vide NOTIFICATION No. 23/2018-Central Excise dated 05-12-2018 before it was read as "all goods specified in Annexure V to this notification," 41. Substituted vide NOTIFICATION No. 23/2018-Central Excise dated 05-12-2018 before it was read as "all goods specified in the First Schedule to the Central Excise Tariff Act, 1985( 5 of 1986)," 42. Substituted vide NOTIFICATION No. 23/2018-Central Excise dated 05-12-2018 before it was read as "from the whole of,- (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 Textil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Air Conditioning equipments, and air conditioning system, spares, and consumables thereof. 4. Captive power plant including captive generating sets and transformers of capacity commensurate with the actual requirement of the unit and recommended by the Development Commissioner or Designated Officer. (For status holders, there shall be no requirement of recommendation by the Development Commissioner or Designated Officer). 5. Spares, fuel, lubricants, consumables and accessories for captive power plants including captive generating sets and spares, consumables and accessories for transformers as 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 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mal 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 equipment, Packing equipment and temperature control or humidity control equipment. 18. Power generating sets. 19. Refrigeration and air-conditioning equipment for fitment on transport vehicles. 20. Spare parts for the maintenance of goods mentioned at item Nos. 15 to 18 above. 21. High Speed Diesel oil for power generating sets as approved by the Board of Approval. ANNEXURE -III 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 dried plants and parts of such plants. 7. Silk worm cocoons and raw silk. ANNEXURE-IV Sl. No. Descrip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chain Pulley Blocks 28. Steel Pillow Kits 29. Dust Collector 30. Consumables and Tools 31. 8[Spares upto a value of 5 per cent of the value of respective goods specified at Sl. No. 1 to Sl. No.29 in each financial year.]" 55. Substituted vide NOTIFICATION NO. 20/2023-Central Excise dated 26-04-2023 before it was read as, "clause (e) of 6.9" 56. Substituted vide NOTIFICATION NO. 20/2023-Central Excise dated 26-04-2023 before it was read as, "Para 6.18 (d)" 57. Substituted vide NOTIFICATION NO. 20/2023-Central Excise dated 26-04-2023 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-Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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