Sub : Fast Track Clearance Scheme for Export Oriented Units, which was incorporated by Hon’ble Commerce & Industry in Foreign Trade Policy has been implemented by Department of Revenue by Circular No.12/2005 dated 4.3.2005.

Hon’ble Commerce & Industry Minister Shri Kamal Nath had incorporated Fast Track Clearance Scheme in the Foreign Trade Policy announced on 31.8.04. However, this scheme had remained non-operational because corresponding circular had not been issued by Department of Revenue. EPCES had taken up this matter with DGFT, Ministry of Commerce and Department of Revenue and discussed repeatedly in various Open Houses organized by the EPCES at Cochin (6-9-2004), Hyderabad (4-1-2005), Mumbai - 16-2-2005 (Chaired by Shri Kamal Nath, Hon’ble Commerce & Industry Minister) & Chennai - 16-2-2005 (chaired by Shri E.V.K.S. Elangovan, Hon’ble Minister of State for Commerce & Industry). This was also taken up strongly in the meeting with the Revenue Secretary on 6-1-2005. DGFT and Department of Revenue had detailed deliberations on this issue and after deliberations DGFT had carried out certain changes in the scheme on 24.1.05 VIDE Public Notice No. 50/2004-2009 (informed vide EPCES Circular No. 24 dated 28-1-2005). Now, Department of Revenue has issued Circular No.12/2005 dated 4.3.05 for implementation of the Scheme. A copy of this circular is enclosed alongwith.

The major attributes of the Fast Track Clearance Scheme, as now implemented, are as follows:

1. Fast Track Clearance Procedure facility shall be available to the EOUs having status holder certificate under the Foreign Trade Policy.

2. Export Oriented Units have been allowed the facility of self-sealing of containers.

3. EOUs shall be entitled for the facility of factory stuffing. A status holder EOU shall be allowed factory stuffing based on prior intimation to the Central Excise authorities and without any permission.

4. Import consignments meant for EOUs will not be subjected to detailed examination at the port of import/airport/ICD etc. as these are to be examined at the bonded premises of EOUs. Consignments meant for status holder EOUs will not be examined in full even at the bonded premises of 100% EOUs.

5. The request for permission for clearance of rejects in domestic market by status holder EOUs shall be considered on priority and the decision of such requests shall be communicated within seven working days.

6. All EOUs including status holder EOUs shall be allowed export of samples on the basis of prior intimation only and no permission shall be required.

7. Status holder EOUs will be permitted to take out their Capital Goods or parts for repair after intimating the Central Excise authorities. No prior permission shall be required.

8. Status holder EOUs are permitted to install two duty free computers and one fax machine for their administrative office/registered office outside the bonded premises without any prior permission. They will only be required to send prior intimation.

9. Sale of finished goods in the domestic market by status holder EOU shall not be required prior permission by Development Commissioner or Central Excise authorities. They shall be required to send prior intimation only.

10. Personal carriage of samples of gold/silver/platinum/jewellery/cut & polished diamonds/ fresh stones, beeds and articles by the status holder EOUs shall be allowed without any permission from Development Commissioner or the jurisdictional central excise authorities. They will be only required to give prior intimation to the jurisdictional customs/central excise authorities.

It is expected that the implementation of Fast Track Scheme would certainly help in simplifying the procedure for EOUs and make their life easier. EPCES had started working on this Scheme immediately after EPCES was formed in January 2003 and we are happy that finally Fast Track Scheme has been implemented. However, the DoR Circular does not incorporates the provision of procurement of goods on the basis of pre-authenticated certificate and procurement of DG sets based on intimation. I have already taken up these issues with DoR, Ministry of Commerce & Industry and DGFT.

Circular No. 12/2005-Cus

F.No.305/70/2004-FTT(Vol.II)

Government of India
Ministry of Finance
Department of Revenue
(Central Board of Excise and Customs)

New Delhi, the 4th March,2005.

To
All Chief Commissioners of Customs,
All Chief Commissioners of Central Excise,
All Chief Commissioners of Customs & Central Excise,
The Chief Departmental Representative, CESTAT,
DGRI/DGCEI
All Commissioners of Customs & Central Excise,
All Commissioners of Central Excise,
All Commissioners of Customs.

Sub: Fast Track Clearance Procedure.

I am directed to invite your attention to para (xi) of the Circular No. 54/2004-Cus dated 13th October, 2004 regarding other provisions of the FTP relating to EOU and Gem and Jewellery Schemes. It was informed in that circular that paras 6.39.1 to 6.39.13 of the HOP relating to Fast Track clearances for EOU’s, are under review and its implementation may be deferred till a final view is communicated by this Ministry.

The Scheme has been reviewed by the DGFT in consultation with the Department of Revenue and an amended Fast Track Clearance Procedure has been prescribed by the Public Notice No. 50/2004-2009 dated 24th January, 2005 of the Department of Commerce. To implement the amended Fast Track Clearance procedure and further simplify certain procedures, detailed procedures have been prescribed in the subsequent paragraphs. The Fast Track Clearance Procedure shall apply only to eligible EOUs as mentioned in the paragraph (1) unless otherwise specifically extended to all EOUs.

1. Eligibility:

EOUs having status holder certificate under the Foreign Trade Policy shall be eligible for Fast Track Clearance Procedure.

2. Fast Track Clearance Procedure:

2(A) Self Sealing of Containers:

The Board has allowed the facility of self-certification to all manufacturer exporters across the board irrespective of status vide Circular No. 736/52/2003-CX. Therefore, it is clarified that the said circular relating to self-sealing is also applicable to EOUs irrespective of the status. Further, to remove doubt, it is also clarified that circulars applicable to DTA exporters in this context i.e Self Sealing of Containers would mutatis-mutandis apply to all EOUs, unless provided otherwise.

2(B) Factory Stuffing:

(i) The Board through instruction dated 13-3- 1991 issued from F.No434/5/91-Cus-IV has extended facility of factory stuffing to EOU’s. The Board vide Circular No 60/2001-Cus dated 1/11/2001 has further simplified the procedure relating to Factory stuffing and decided to discontinue the practice of renewal of permission for factory stuffing every six months. . In effect, the permission for factory stuffing is valid even without renewal. However, in case any thing adverse is noticed against the exporters, the customs may withdraw the permission.

(ii) The Circular 60/2001-Cus does not specifically mention EOUs. However, to facilitate exports by EOUs and simplify the procedure, it has been decided that no renewal of permission for factory stuffing shall be required in respect of all EOUs. However, in case any thing adverse is noticed against the exporters, the customs/central excise authority may withdraw the permission.

(iii) Further, the eligible EOUs shall be allowed factory stuffing based on their prior intimation and without any permission.

2(C). Examination of goods at the Gateway Port.

(i) The Board Vide Circular No 1/94-Cus dated 5/4/2004 has prescribed that import consignments meant for EOU need not be subjected to detail examination at the port of import/Airport/ICD etc. since these are required to be examined in full at the bonded premises of the EOU. Goods may be superficially examined as to the marks, numbers, seal no, gross weight etc by the customs staff at the port of import for the purpose of completion of assessment. It has been brought to the notice of the Board during the Tariff Conference of Chief Commissioners held at Shillong in May 2004 that the term “superficial examination” has created some confusion in the field formations, as it did not indicate the degree or type of examination to be conducted. It was also informed that different examination norms are being followed at different ports.

(ii) Therefore it is clarified that consignments meant for EOU need not undergo detailed examination at the Port of import/airport/ICD etc since these are required to be examined in full at the bonded premises of the 100% EOU. However, examination of seal, condition of container, marks, numbers, gross weight etc may be done by the Customs for the purpose of completion of assessment.

(iii) It is further clarified that consignments meant for EOU can be examined at the Port of Import in exceptional circumstances on the basis of prior intelligence or information.

(iv) Further, consignments meant for eligible EOUs may not be examined in full at the bonded premises of the 100% EOU. Instead, the jurisdictional Commissioner of Customs/ Central Excise may prescribe the norms of examination based on risk assessment. Accordingly, the Circular No. 1/94-Cus dated 5.4.1994 stands modified to this extent.

(v) It is further clarified that examination at the premises of EOU shall be governed by Instruction/Circulars prescribing procedures or methods of examination of such goods/consignments at ports.

2(D). Clearance of rejects:

The request for permission for DTA clearance of rejects by eligible EOUs shall be considered on priority and the decision on the request for permission shall be communicated within 7 working days.

2(E) Export of Samples:

(i) It has been decided by the Board that the all EOUs (including eligible EOUs) shall be allowed export of samples on the basis of prior intimation to the jurisdictional Assistant/Deputy Commissioners.

2(F) Temporary removal of Capital Goods and parts:

(i) The eligible EOUs may take out their capital goods or parts thereof for repair after intimating the jurisdictional Assistant/Deputy Commissioner of Customs or Central Excise. The intimation shall contain the description such as marks, serial number, model no. etc. of the capital goods or parts, detailed and complete address of the place where these capital goods or parts are to be sent for repair and the estimated period for which these goods would be outside the EOU.

(ii) The jurisdictional Assistant/Deputy Commissioner may cause verification of the particulars mentioned in the intimation randomly or in case of suspicion.

2.(G) Installation of Fax Machine / two computers at the approved premises:

(i) The Board vide circular No.41/99-Cus. dated 30.6.99 has allowed EOU to install computers not exceeding two in numbers obtained duty free in their administrative/registered office outside the bonded premises. It has been decided that EOU units may also install one fax machine in their administrative office/registered office outside the bonded premises subject to procedure and conditions as specified in the Board’s circular No.41/99-Cus dated 30.6.99. Further, it has also been decided that no permission of Assistant Commissioner/Deputy Commissioner of Customs and Central Excise is required in respect of such clearance of computer/fax machine by the eligible EOUs provided prior intimation is made. However, the conditions and procedures as prescribed in the above-mentioned circular is required to be followed. The Circular No.41/99-Cus. dated 30.6.99 stands modified to that extent.

2(H). DTA Sale of Finished Goods:

(i) The para 6.39.9 of the HOP as amended by the Public Notice no. 50/2004-2009 dated 24th January of the Department of Commerce prescribes DTA Sale of finished products as per para 6.8(a) by eligible EOUs shall not require permission of Development Commissioner or Jurisdictional Deputy/Assistant Commissioner of Customs/Central Excise and instead unit shall be required to send prior intimation.

(ii) In this respect your attention is invited to Circular No. 88/98-Cus Dated 2.12.98 whereby it has been decided that sale into DTA can be made by the manufacture himself subject to his recording of each transaction in the records prescribed by the Board/Commissioners or their private records approved by the commissioners. Further, Rule 17 of the Central Excise Rules, 2002 provides that EOU can clear the goods on payment of duty. Therefore EOUs are not required to take permission from the jurisdictional customs/central excise authority for DTA sale of goods. The units may sell the goods on payment of duty as per the conditions and entitlements as specified in Foreign Trade Policy.

(iii) As eligible EOUs are not required to take permission for DTA sale of finished goods upto their entitlement and subject to fulfilment of conditions as mentioned in para 6.8(a) of the Foreign Trade Policy from Development Commissioner, permission of the Development Commissioner for DTA sale shall not be insisted, instead the copy of intimation to the Development Commissioner may be scrutinised, wherever required.

2(I). Personal Carriage of Gems and Jewellery for Export Promotion Tours:

(i) The paragraph 6.24 of the Foreign Trade Policy,2004-2009, provides for personal carriage of gold/silver/platinum jewellery, cut and polished diamonds, precious stones, beads and articles by the exporter. The exporter shall declare the carriage of such sample to the customs while leaving the country and obtain necessary on the Export Certificate issued by the Jewellery Appraiser of the Customs. It is clarified that procedure prescribed for personal carriage of jewellery exists and the same may be followed in such cases also. However, formalities of G.R may not be insisted upon. In case of cut and polished diamonds, it may be ensured that the specifications such as size, shape, circumference, caratage(weight), colour, cut and height etc of the of the cut and polished diamonds would be declared by the exporters at the time of export so that the same could be matched at the time of re import of goods in the country. It has been decided that for personal carriage of such sample by eligible EOUs, no permission from Development Commissioner or the jurisdictional customs/ central excise authority would be required. Such units would however, be required to give prior intimation to the jurisdictional customs/ central excise authority.

6. Wide publicity may be given by issue of a Public Notice in this regard.

7. Difficulties, if any, faced in the implementation of the above instructions, may be brought to the notice of the Board at an early date.

8. Hindi Version follows.

Kindly acknowledge receipt of this Circular.

Ranjit Kumar
Senior Technical Officer (FTT)