The Central Board of Indirect Taxes & Customs ( CBIC ), on Tuesday, issued a circular regarding import by Export Oriented Unit (EOU)/Electronics Hardware Technology Park (EHTP)/Software Technology Park (STP)/ Bio-Technology Park (BTP) without payment of duty by following Rule 5 of Customs (Import of Goods at Concessional Rate at Duty) Rules, 2017.
The Circular clarified that the importer EOU doesn’t have to get approval of the information submitted under sub-rule (1)(a) of Rule 5 of Customs (Import of Goods at Concessional Rate at Duty) Rules, 2017 from Jurisdictional Deputy Commissioner (DC) /Assistant Commissioner (AC) of Customs for duty free import at the Customs Station of Importation. The Circular stated that the information submitted to the DC/AC at the Customs Station of Importation by EOU is sufficient for importing goods without payment of duty under exemption notification No.52/2003-Customs dated 31-03-2003.
The Circular was issued as a result of representations submitted by EOUs regarding difficulties faced on import due to requirement of submitting information to the DC/AC of Customs at the Customs Station of Importation by way of forwarding a copy of such information by the Jurisdictional DC/AC of Customs under the said Rules. The EOUs submitted that they were not able to get approved/signed copy of the said information from the Jurisdictional DC/AC of Customs in time for submitting the said copy to the DC/AC of Customs at the Customs Station of Importation.
The Circular clarified the procedure laid down in the Rules. Under Rule 5, the EOUs are required to furnish information in duplicate regarding estimated quantity and value of goods to be imported to Jurisdictional DC/AC of Customs. One copy of the said information should be submitted to the DC/AC of Customs at Customs Station of Importation, who shall allow the benefit of exemption notification to the importer on the basis of the information furnished. Thus, Rule 5 nowhere says about getting approval of the jurisdictional DC/AC of Customs for availing the benefit of exemption. Whereas sub-rule 4 of Rule 5 clearly states that DC/AC of Customs at the Customs Station of Importation shall allow the benefit of exemption notification on receipt of copy of information from the importer under clause (b) sub-rule (1) of said rule 5.
The Circular further prescribed that Jurisdictional DC/AC of Customs shall ensure that the information furnished as per rules are properly scrutinized so that only eligible goods are prescribed. The DC/AC of the Customs at the Customs Station of Importation is directed to inform the Jurisdictional DC/AC of Customs if there are any discrepancies in the information submitted by the importer and the information sent to him by the Jurisdictional DC/AC of customs as sub rule 3 of Rule 5 of the said Rules.
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