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TMI Blog100% EOUs /STP/EHTP units – Scheme & Procedures – RegX X X X Extracts X X X X X X X X Extracts X X X X ..... of the scheme was basically to boost exports by creating additional production capacity. It was introduced as a complementary scheme to the Free Trade Zones/ Export Processing Zone (EPZ) Scheme introduced in the sixties, which had not attracted many units due to location restrictions. The exporters showed willingness to set up units with long term commitment to exports under Customs bond operations provided they had the freedom to locate them in places of their choice and given most of the benefits as provided to units set up in the Zones. 2. Over the years the Scheme has undergone various changes and its scope also expanded substantially as compared to the initial Scheme, which was basically for manufacturing sector with certain minimum value addition in terms of, export earnings. With the passage of time the Government introduced the Software Technology Park Scheme (STPI) and Electronic Hardware Technology Park Scheme (EHTP Scheme). The STP Scheme is nothing but a 100% EOU Scheme for the units undertaking the development of Software for Export, using Data Communication Link or in the form of physical exports including export of professional services. In other words, STPs ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of EXIM Policy. The NFEP and EP varies from sector to sector. For instance, the units with investment in plant and machinery of ₹ 5 Crore and above are required to achieve positive NFEP and export US$ 3.5 million or 3 times the CIF value of imported capital goods, whichever is higher, for 5 years. For electronics hardware sector, minimum NFEP has to be positive and minimum EP for 5 years is US$ 1 million or 3 times the CIF value of imported capital goods, whichever is higher. NFEP is calculated cumulatively for a period of 5 years from the commencement of commercial production according to a prescribed formula. 5. The EOUs/STP/EHTP are licensed to manufacture goods within the bonded premises for the purpose of export. As per the policy, the period of bonding is initially for five years, which is extendable to another five years by the Development Commissioner. On completion of the bonding period, it is for the unit to decide whether to continue under, or to opt out, of the scheme. The imported capital goods are allowed to be warehoused for a period of 5 years. For other goods, the warehousing period is one year, which can be extended further by the Commissioner / Chief C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terial Standing Committee (IMSC) set up under the Ministry of Information Technology and the same are implemented through its Designated Officers. Chairman, C.B.E. C. or his nominee is a member of the IMSC also. The availability of any benefit under Customs or Central Excise Acts or the notifications issued thereunder has, however, to be determined by the Commissioner of Customs or Central Excise having jurisdiction. Appropriate inter- Ministerial liaison is maintained for ensuring uniformity as far as possible in the Exim Policy provisions and the provisions built in the relevant Customs Central Excise notifications. Customs Bonding of EOUs: 10. The premises of EOU/STP/EHTP are approved as a Customs bonded warehouse under the warehousing provisions of Chapter IX of the Customs Act. For this purpose, it is essential that the place where the unit is being set up is declared as a Warehousing station by the Chief Commissioner of the concerned Zone or the concerned Commissioner of Customs or the Commissioner of Central Excise under the provisions of Section 9 of the Customs Act. Hence, in the event a place where EOU/STP/EHTP is proposed to be set up is not declared as a War ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, packaging of products and service activities for export- Notification Nos. 53/97 Cus. dated 3.6.97 and 1/95-CE, dated 4-1-1995. (ii) Software technology products for export- Notification Nos. 138/91 and 140/91 Cus, both dated 22.10.91 and 1/95-CE, dated 4-1-1995. (iii) Electronic hardware products for export- Notification Nos. 96/93 Cus, dated 2.3.93 and 1/95-CE, dated 4-1-1995. (iv) Floriculture, Pisciculture etc. for export- Notification Nos. 126/94-Cus dated 3.6.94 and 136/94-CE, dated 23-2-1995. (v) Aquaculture for export- Notification Nos. 196/94 Cus dated 8.12.94 and 10/95-CE, dated 8-12-1995. (vi) Gold, silver and jewellery products for export- Notifications No. 277/90-Cus dated 12.12.90. (vii) Granite quarrying for export Notification No. 58/2000-Cus, dated 8-5-2000 and 37/2000-CE, dated 8-5-2000. (viii) Repair and return of finished goods or partially finished goods Notification No.133/94 and Notification No.134/94 Cus dated 26.2.94. General Conditions of Duty Free Import: 12. The facility of duty free import (extending exemption both from basic countervailing duty) is subject to certain general conditions in accordance with the EXIM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee goods for job work and return; temporary clearance for repair and display in exhibitions, testing/approvals etc.; and movement of goods against AR-4, AR-3A and CT-3 etc. and transfer from one warehouse to another. However, it does not cover the differential duty amount against advance DTA sale for which a separate bond is to be executed. The bond is taken for an amount equal to 25% of the duty forgone on the sanctioned requirement of capital goods plus the duty forgone on raw materials required for 3 months. Surety or security equivalent 5% of the bond amount in the form of bank guarantee or Cash deposit or any other mode of security recognized by the Govt. of India is required to be given by the EOUs. In the case of surety, a letter from the person standing surety duly certified by a Chartered Accountant for solvency is also required to be submitted. (Reference: Public Notice 29/98 dated 5.5.98, 103/98 dated 13.10.98, 131/99 dated 10.12.99 and 70/2000 dated 5.6.2000) Import and Export Procedure: 14. With regard to clearance of import cargo, the EOUs/STP/EHTP are placed in a special category, eligible for fast track or green channel clearance through the Customs. Clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer and hand over to the representative of the Courier Company, authorized by the Commissioner of Customs, for presentation at the Port of Export. These goods/samples will not be examined again at the time of giving LET EXPORT if the seals are intact and not tampered with. The Courier Company shall within the stipulated period produce the proof of export to the Assistant Commissioner/Deputy Commissioner of Customs Division.(Reference: Public Notice 5/99 dated 8.1.99, 69/99 dated 20.7.99 and 2/2000 dated 5.1.2000) WAREHOUSING PERIOD AND EXTENSIONS THERE TO: As per section 61 of Customs Act, 1962 the imported Capital Goods may be warehoused for a period of 5 years and other goods for a period of 1 year. There is a provision for extension of the warehousing period for the first 6 months in respect of goods, other than Capital goods, by the Commissioner and thereafter, for any further period, by the Chief Commissioner. For extension of warehousing period for capital goods, Chief Commissioner is the prescribed authority. The facility of ware housing is a facility of deferred payment of Customs duty on Imported goods. As long as the goods are in the warehouse no duty is paya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner may allow EOUs/STP/EHTP to make free replacement of the goods exported by them earlier and found defective, damaged or otherwise unfit by the overseas buyer. However, such defective, damaged or otherwise unfit for use goods are required to be brought back subsequently, to the country. The units are also allowed to re-import part consignment/full consignment in case of failure of the foreign buyer to take delivery. 16. The EOU/STP/EHTP may also be allowed to receive free replacement of the goods imported and found defective, damaged or otherwise unfit for use prior to re-export of the same. However, such damaged, defective goods are required to be re-exported subsequently. In case the supplier of such goods does not insist for re-exportation, such goods are required to be either destroyed or cleared into DTA on payment of full customs duty. (Reference: Public Notice No.98/99 dated 4.10.99) Procurement of Goods Indigenously under CT-3 Procedure: 17. The EOU/STP/EHTP can procure goods from DTA without payment of Central Excise duty subject to following of the Chapter X procedure of erstwhile Central Excise Rules, 1944. Such procurement from DTA is against CT-3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e total sale is within the stipulated/ceiling limit of the unit for the DTA entitlement. In other words the DTA entitlement will be determined in totality and not with reference to any specific items. (Reference: Public Notice No.68/99 dated 16.7.99 and 61/2000 dated 1.6.2000) Valuation of Goods Sold in DTA: 19. Section 3 of the Central Excise Act, 1944 provides that the valuation of goods manufactured in the EOU/STP/EHTP and cleared into DTA is to be done in accordance with the provisions of the Customs law. Thus, when the invoice price of the goods under assessment is in the nature of transaction value, such invoice value can be accepted. (Reference: Board s Circular No.23/84 Cx.6 dated 29.5.84 and instruction issued vide file No.268/335/92/CX.8 dated 17.8.94 and Circular No.330/46/97-CX dated 20.8.97) Levy of Central Excise Duty on Goods Produced or Manufactured by EOU/ STP/EHTP and Cleared into Domestic Tariff Area: 20. In terms of section 3 of the Central Excise Act, 1944, the excise duty leviable on goods manufactured in an EOU/STP/EHTP unit and cleared into Domestic Tariff Area is the amount equal to the customs duty leviable under section 12 of the Customs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en on payment of full duty. In case of waste/scrap/remnants, the same are allowed to be sold in DTA on payment of concessional rate of duty within overall limit of 50% of FOB value of exports without insisting on achievement of prescribed NFEP. In case of sale of scrap/waste/remnants beyond this limit, it is allowed on payment of full duty. Rejects up to 5% of FOB value of export may be sold in DTA with prior approval form Assistant / Deputy Commissioner. For sales above 5% of FOB value of exports, approval of the Development Commissioner is required. The term rejects would cover such products which have a definite manufacturing defect and are unfit for exports, as per the declaration of the unit concerned. Thus, it is the responsibility of the unit to prove that the goods in question are rejects only and they should produce a certificate from the competent person indicating that the required quantity / specification has not been achieved due to flaws of technicality or techniques or because of quality of goods and the materials used, by the unit in the manufacture of the product. Para 6 of the Board s Circulars No. 49/00 CUS dated 22.5.2000 provides the, guidelines reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount of each duty so calculated, taken together is collected as excise duty on such goods produced by EOUs units when cleared into the DTA. (Reference: Public Notice No. 33/2001 dt. 15.3.2001) Clearance of Waste/ Scrap/ By products in DTA: 28. The EOU/EHTP are allowed to clear waste and scrap in Domestic Tariff Area on payment of concessional rate of duty or full rate of duty as explained in detail in paragraph 22 above. Norms for scrap/ waste material for export products under EOU have been prescribed in Appendix 41 of the Handbook of Procedures, Vol. I. In case, scrap, waste and remnants are destroyed with the permission of the Assistant Commissioner/Deputy Commissioner, no duty is payable on them. Further, if waste scrap and remnants are not excisable, the unit would be required to pay duty of customs on the imported goods contained in such waste, scrap and remnants in terms of Board s Circular 18/98 Cus dated 16.3.98. In case the waste scrap and remnants contain indigenous raw materials/inputs procured without payment of central excise duty, the same shall be cleared on payment of excise duty in terms of Board s Circular 330/46/97 Central Excise dated 20.8.97. (R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er relevant exemption Notification. Certain doubts had been expressed regarding the manner of calculation of duty of excise payable on clearance of excisable goods manufacture in EOU s. This issue stands clarified by the Board s Circulars No. 7/2001- Cus dated 6.2.2001. It is clarified that the excise duty of goods manufactured and produced by 100% EOU/EHTP/STP units and cleared into DTA, in accordance with the Notification No.2/95-CE dated 4.1.1995, would be at a concessional rate, which is equal to 50% of each of the duties of Customs. It is further clarified in the said circular that each of the duty leviable on import of like goods should be worked out first and thereafter, 50% of the amount of each of the duty so calculated, taken together should be collected as excise duty on such goods produced by 100% EOU/EHTP/STP units are cleared into DTA. For the purpose of clarification the detailed calculation shown in Public Notice No. 33/2001 dt. 15.3.2001 may be referred to. 30. Clearance of Samples: The EOUs are allowed to supply or sell in DTA samples of goods produced by them for display or market promotion up to 1% of the previous year s exports or maximum of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued and taking out and bringing in of the said goods in the unit. This record will be available for inspection by the Jurisdictional Assistant/Deputy Commissioner of Customs and or the officers deputed by him. 3. The facility of removal of said goods will be available only for taking them outside temporarily and they will have to be brought back to the unit and accounted for. 4. A general permission by the Assistant/Deputy Commissioner of Customs whenever requested may be given for a period of 6 months at a time to temporarily take out and bring in the said goods of specified employee during the period. The circular 17/98 dated 16.3.98 was modified by CBEC vide Circular 84/2000 Cus dated 16.10.2000 wherein it is clarified that the facility of taking Laptop Computer and Video Projection System shall be available only to 100% EOUs engaged in the development of Software. (Reference: Public Notice 30/98 dated 12.5.98 and 70/99 dated 21.7.99) Sale of Surplus/ Unutilized Goods: 33. The EOU/STP/EHTP are allowed to sell surplus/unutilized goods, imported or procured duty free in DTA on payment of duty on the value at the time of import/procurement and at rates in force on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... without payment of basic and additional duty of customs subject to following the provisions of EXIM Policy HOP Vol. 1, 1997-2002 conditions of notification 28/2001-CE dated 16-5-2001. The goods may also be cleared to a person holding an ARO issued by the Licensing Authority against a DFRC or Back-to-Back Inland Letter of Credit issued by a bank on the payment of additional duty of customs subject to following the provisions of EXIM Policy and Handbook of Procedures Vol. 1, 1997-2002 and conditions of notification No. 28/2001-CE dated 16-5-2001. (Reference: Public Notice 70/2001 dated 21.6.2001) Sub-Contracting: 37. The EOUs, other than Gem Jewellery units, are allowed to sub-contract part of their production process in DTA. These units may also sub-contract up-to 50% of production for job-work in DTA. Sub-contracting of both production and production process are also allowed to be undertaken through other EOU/EPZ/EHTP/STP/SEZ units on the basis of records maintained by the unit. 38. For sub-contractual work performed outside, the units are required to take annual permission from the Customs authorities as per application Annexed at A-8 and are required to furnish i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... silver/platinum are not entitled for deemed export benefits. (Reference Board s Instructions F. No. 305/107/93-FTT dated 31-1-1994 and 8-4-1994, Circular Nos. 59/98-Cus, dated 12-8-1998 , 67/98-Cus, dated 14-9-98 , 35/99-Cus , 74/99-Cus, dated 5-11-99 , 31/2001-Cus, dated 24-5-2001) . (Public Notice 48/96 dated 23.5.96, 117/98 dated 24.11.98, 68/99 dated 16.7.99, 124/99 dated 17.11.99, 55/2000 dated 5.5.2000, 66/2000 dated 1.6.2000 and 99/2001 dated 28.9.2001 may also be referred) A. Temporary Removal of Goods: The facility of sub contract has been made available after recognizing the fact that it may not be practicable for the unit to have all the manufacturing processes within themselves. So also it facilitates in cutting costs and renders high quality export product. At the same time, certain safe guards have been built in the relevant notifications so as to prevent any misuse of the facility by way of diversion of duty free goods into the DTA. The EOUs are allowed to sub contract in the following two situations. i) Sub contract part of their product process, which may also involve change of form or nature of the goods. On the basis of the permission of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with in the stipulated period. The units may sub contract part of their production process where the raw material sent out for processing lose their identity or where the substantial manufacturing activity does not takes place in the unit itself, subject to the condition that input output norms in such case would be specified by the Deputy/Assistant Commissioner of Customs. However, the units using predominantly indigenous raw materials would not be allowed to sub contract part of their production for job work, as this would convert the units, to trading units rather than manufacturing units and the accountal of the material becomes difficult. (C.B.E.C Circular no. 59/98 Cus dtd.12.8.1998 , 67/98 Cus dtd.14.09.1998 , 30/99 Cus dtd.25.5.1999 and Circular no. 74/79 Cus dtd.05.11.1999 are relevant as they relate exclusively to the area of sub contracting). B PROCEDURE FOR SUB CONTRACTING: The EOU/EHTP units seeking permission for sub contracting should make an application, in triplicate, to the Deputy/Assistant Commissioner of Customs along with the consent letter from the EOU/DTA unit. The application must indicate the nature of activity for which the goods are propose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asis for sending goods for job work. At present the units are seeking permission from Deputy Commissioner on case-to-case basis. The unit intending to avail this facility of blanket permission has to approach the Deputy Commissioner of the Customs Division with the list of their job workers, nature of process to be carried out in the job work premises and other relevant details as per Application Annexed at A-8 . Based on the application by the unit, the job work permission will be granted on annual basis unit wise. The unit ii turn will approach the jurisdictional Range Superintendent on case-to-case basis and obtain necessary permission after fulfilling the conditions prescribed for carrying out Job work. Further, the unit availing the facility of Blanket Permission has to submit monthly report to the Deputy Commissioner through the jurisdictional Superintendent indicating the details of goods sent and received in respect of job work to different Job Workers along with the wastages generated at the job worker premises. The format of the Challan for movement of goods/inputs etc., is enclosed in the Annexure at A-9.(Reference: Public Notice 48/96 dated 23.5.96, 99/97 dated 5.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o case basis subject to the maintenance of prescribed records and submission of prescribed documents. Inter-Unit transfers shall take place under the cover of a Shipping Bill being filed by the sending unit. In respect of locally procured goods/item, under cover of CT3, the format prescribed at Annexure A-7 will be used. The document should be supported with copy of Purchase Order, Invoice and packing List. In respect of Capital Goods, the concurrence of Development Commissioner /Director STPI/STP should be enclosed. The recipient unit will file a Yellow Bill of Entry (Into Bond) based on the particulars mentioned in the Shipping Bill. The Shipping Bill or the Bill of Entry as the case may be is assessed by the concerned Range Superintendents. The receipt of the goods in the Bonding premises will also get inspected and there after the Range Officer of the recipient unit will issue the Re-ware housing certificate. This certificate should be sent to the Range officer of the supplying unit through Registered Post. To facilitate the trade to get the goods bonded in the Bonded premises expeditiously, the procedure of Into Bond Bill of Entry being counter signed by the Deputy/Asst. Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssenger for the purpose of export. (vi) Removal of moulds, tools, patterns, and drawings into the DTA for jobwork without payment of duty and to be returned to the unit thereafter. For availing of the above mentioned facilities, prior permission of Assistant / Deputy Commissioner of Customs is required. (Reference: Public Notice 37/2000 dated 14.3.2000) Cost Recovery Charges/Cost Sharing: 47. Cost recovery charges are the amount recoverable from the EOU/EHTP on account of the expenses incurred by the Government for posting of Customs staff at its premises to supervise their operations. The cost of posts created for EOU/EHTP has been determined at an amount equivalent to the actual salary and emoluments of the staff deployed i.e. the average pay and allowances including D.A., H.R.A., C.C.A. etc. The EOU/EHTP pay in advance the cost recovery charges determined for the entire year. Generally, one Customs officer supervises the functioning of four to five units and the cost recovery charges are shared amongst them. (Reference Board s instruction F. No. 11018/63/87-Ad IV, dated 11-1-88 and F.No.305/105/85-FTT, dated 10.6.86) Supervision of EOU/STP/EHTP by the Cust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e original as well as the Duplicate Shipping Bill before giving orders for LET EXPORT and seal the packages The original will be retained in the Range office and the duplicate and the triplicate returned to the Exporter who shall then dispatch the goods. At the port of Export, the goods will be presented to the officer of Customs along with the duplicate and triplicate copy of the Shipping Bill. The packages will be checked for seal intact and the particulars verified as per the application. The proper officer will certify for allowing the shipment for Export and give the details of shipping bill number of vessel etc., and return the triplicate copy to the exporter, who will produce it to the inspector in-charge of the EOU/EHTP, as proof of export. PROCEDURE FOR RE-EXPORT OF DEFECTIVE GOODS: 50A) The exemption Notifications granting Customs duty Exemption on the Import of capital Goods, Raw materials, components etc., required by the EOU/EHTP/STP provide for Re-Export of defective parts, components etc., Permission in this regard is to be given by the Deputy/Assistant Commissioner, subject to conditions prescribed by him. For this purpose the Exporter is required to g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sts a new activity, subsequently elaborated in paragraph 9.21, whereby trading units would be allowed to import/procure from DTA goods duty free for the purpose of exports. The trading units may also undertake re-packing, labeling, minor processing etc., for which they shall be eligible for duty free procurement of packing, labeling materials etc. and the required capital goods. Further, the trading units may also procure goods without payment of duty from other EOU/EHTP/STP units for exports. The trading units shall be required to achieve positive NFEP and export performance as prescribed in Appendix 1 of the EXIM Policy.The provision concerning trading units in paragraph 9.21 is in lieu of the earlier paragraph, which dealt with setting up of private bonded warehouses in the EPZs. It may be noted that in case of these units the usual entitlements like DTA sale, Deemed exports benefits, inter-unit, transfer, sub-contracting etc., otherwise, available to EOU units, shall not be available. The trading units would, however, be allowed to supply goods to other EOU/EHTP/STP units or supply goods to DTA against valid advance license or specific duty free imports entitlement. The not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ery and equipment already installed. If the Industrial Unit intends to operate both as a domestic unit as well as an EOU/EHTP/STP, it shall have two distinct identities with separate accounts. There is no necessity for a separate legal entity but there should be every possibility to distinguish the imports and exports or supplies made by the EOU/EHTP/STP from those of the DTA unit of the company. In the event of partial conversion of a DTA unit into an EOU/EHTP/STP, they would be permitted to continue from the same or adjacent premises. However, revenue considerations would definitely warrant physical segregation of DTA and EOU/EHTP/STP. (For details Circulars No.38/95-Cus dt. 17.05.1995 and No. 77/99-Cus dt. 18.11.1999 and public notice 133/99 dated 13.12.99 may be referred.) CONVERSIONOF 100% EOU TO EPCG SCHEME: 55. With effect from 01.04.1995, the EXIM Policy had been amended to provide that an EOU /EHTP/STP may, as a one time option, also be permitted to de-bond on payment of duty on the Capital goods under the 15% EPCG scheme, subject to undertaking the export obligation applicable under the said scheme and on payment of duties of Customs and Excise applicable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Components, raw materials etc. and (iii) Discharge of Export performance, if any, on the supplier the benefits under paragraph 10.3 are as follows. a) advance license for intermediate supply /deemed export. b) Deemed Exports Drawback. c) Refund of terminal excise duty. The application for the benefits under paragraph 10.3 is to be made to the Development Commissioner. REGISTRATION OF EOUs UNDER CENTRAL EXCISE and Applicability of erstwhile Central Excise Rules, 1944 : 57. By virtue of the Notification No. 22/98-CE (NT) dated 4.6.1998 , all EOU units licensed under the Customs Act are deemed to be registered under the Central Excise Law. Even with the introduction of new Central Excise Rules, 2001 with effect from 1.7.2001, the 100% EOUs registered under the Customs Act, 1962 continue to be deemed to have been registered under Central Excise, in view of the exemption contained in Notification No.36/2001 CE (NT) dated 26.6.2001. Recovery of Duty Forgone under EOU Scheme and Penal Action for Abuse/ Diversion etc.: 58. Under EOU/STP/EHTP Scheme, the units are required to achieve minimum NFEP and Export Performance as stipulated in the Exim Poli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red on payment of the excise duty equal to aggregate duties of Customs payable on similar imported goods. (b) Capital goods, material handling equipment, office equipment and captive power plants can be cleared on payment of an amount equal to the customs duty leviable on such goods on the depreciated value thereof and at the rates in force on the date of payment of such duty. (c) Goods including containers suitable for repeated use other than those at (b) above can be allowed clearance on payment of customs duty on their value at the time of import and at the rate of duty in force on the date of payment of such duty. (d) Used packing materials such as cardboard boxes, polyethylene bags of a kind unsuitable for repeated use can be cleared without payment of duty. 59B At the time of de-bonding, the EOU/EHTP/STPs are entitled for depreciation on imported/indigenous capital goods. The rate of depreciation on capital goods has been specified and in case of the computers and computer peripherals, accelerated rate of depreciation have been provided for. There may be cases where the unit may choose to debond within the initial bonding period or there may be a situation wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Office equipment, Captive Power Plants can be cleared on payment of an amount, equal to the Customs duty, leviable on such goods on the depreciated value and at the rate in force on the date of payment of duty. The raw materials or components will have to be assessed on the value at the time of import and at the rates of duties in force at the time of clearance. The Containers, packing materials, which are suitable for repeated use will have to be cleared only on payment of duty on the value at the time of import. If these materials are unsuitable for repeated use, they can be cleared without payment of duty, after obtaining approval from the Assistant/ Deputy Commissioner. On the Central Excise side, there is a parallel provision, provided in Notification No. 1/95-CE dated 4.01.1995 . (Reference Board s instructions issued from F. No. 305/136/92-FTT dated 5-6-1992, Circular Nos. 27/98, dt. 1.04.1998 and 43/98-Cus., dt. 26.06.1998 ). 60. The following registers/records are to be maintained by 100% EOU/EHTP units. These registers can be maintained electronically, in the system also, provided express permission is obtained from the Assistant/Deputy Commissioner Customs.t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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