Promotion Council for EOUs & SEZ Units
(Ministry of Commerce and Industry,
Govt. of India)
Bhikaiji Cama Bhawan, Bhikaiji Cama Place, New Delhi-110066
Tel : 011-26167042/ 26165805/26166185 Fax : 011-26165538
Email : firstname.lastname@example.org
CIRCULAR NO.36 DATED 7.3.05
Sub : Fast Track
Clearance Scheme for Export Oriented Units, which was incorporated
by Honble Commerce & Industry in Foreign Trade
Policy has been implemented by Department of Revenue by
Circular No.12/2005 dated 4.3.2005.
Honble 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, Honble Commerce & Industry
Minister) & Chennai - 16-2-2005 (chaired by Shri E.V.K.S.
Elangovan, Honble 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
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
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
Government of India
Ministry of Finance
Department of Revenue
(Central Board of Excise
the 4th March,2005.
All Chief Commissioners
All Chief Commissioners
of Central Excise,
All Chief Commissioners
of Customs & Central Excise,
The Chief Departmental
All Commissioners of
Customs & Central Excise,
All Commissioners of
All Commissioners of
Sub: Fast Track Clearance
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 EOUs, 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.
EOUs having status holder
certificate under the Foreign Trade Policy shall be eligible
for Fast Track Clearance Procedure.
2. Fast Track Clearance
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 EOUs. 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
(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 Boards 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
(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
(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
(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.
Senior Technical Officer (FTT)