EOUs/STPIs/EHTPs to Maintain Records of
Receipts, Storage, Processing and Removal of Goods in Digital Format Only –
CBEC Clarification
[CBEC Circular No. 35
dated 29th July 2016]
Subject: Removal of
mandatory warehousing requirements for EOUs, STPIs, EHTPs
etc. - Amendment to Notification 52/2003- Customs dated 31.03.2003.
Chapter 6 of the Foreign
Trade Policy (FTP) provides for manufacture of goods and supply of services,
including repair, re-making, reconditioning, re-engineering by Export Oriented
Units (EOUs), Electronics Hardware Technology Park Units (EHTPs), Software
Technology Park Units (STPIs) and Bio-Technology Park Units (hereinafter
referred to as “units”) and undertaking to export their entire production of
goods and services, except permissible sales in DTA.
2. Notification 52/2003-Customs dated
31.03.2003, as amended from time to time, exempts specified goods when imported
for use in the units, from payment of Customs duties, subject to various
conditions stated therein. The notification provides for warehousing of
imported goods, to be used for manufacture of goods or other operations as well
as their ex-bonding under certain circumstances. The Units, therefore, obtain a
license as a warehouse under Section 58 of the Customs Act, 1962 and
permission under Section 65 of the Act, as a manufacture-in-bond facility.
3. In line with the Government’s objective of
‘ease of doing business’, the need for applying the warehousing provisions
under Chapter IX of the Customs Act, 1962to the above units, has been
examined.
3.1 Warehouses are facilities set up to avail the
benefit of customs duty deferment. Imported goods can be stored in a warehouse
without payment of duty, and the applicable duty is required to be paid only at
the stage of their clearance from the warehouse. In case of the above-referred
units, the need for duty deferment is obviated as the goods procured by them
are exempt from duties of customs, under Notification 52/2003-Customs, subject
to certain conditions, such as, the manner of usage of the procured inputs and
capital goods; their end use including the removal of the said goods; and the
requirement to maintain proper accounts of receipt, storage and utilisation of
imported goods.
3.2 In this backdrop, it was felt that the
application of warehousing provisions to these units adds to their compliance
requirements without adding to either improved monitoring by the dept. or
providing any additional facilitation to them.
4. Recognizing the potential role of these
units in the Make in India initiative and as a measure of improving the ease of
doing business, it has been decided to do away with the need to comply with
warehousing provisions by these units. For this purpose, notification 44/2016 –
Customs dated 29th July 2016 has been issued (effective from 13th August 2016)
amending the principal notification 52/2003-Customs dated 31st March 2003.
As a consequence, these units shall stand delicensed
as warehouses under Customs Act, 1962, with effect from 13th August, 2016.
They shall continue to adhere to the provisions of Notification 52/2003-Customs
dated 31.3.2003, FTP, HBP and other applicable notifications.
5. In view of the condition of warehousing
having been dispensed with respect to the units, the warehoused goods register
(warehousing bond register) shall not be required to be maintained w.e.f 13th August 2016. However, in order to maintain
records of receipts, storage, processing and removal of goods, imported by the
units, as required under notification 52/2003-Cus dated 31.3.2003, the Board
has prescribed that the units shall maintain records of imported goods, in
digital form, based upon data elements contained in Form A
(appended). The software for maintenance of digital records must incorporate
the feature of audit trail which means a secure, computer generated,
time-stamped electronic record that allows for reconstruction of the course of
events relating to the creation, modification, or deletion of an electronic
record and includes actions at the record or system level, such as, attempts to
access the system or delete or modify a record. While the data elements
contained in the Form A are mandatory, the unit will
be free to add or continue with any additional data fields, as per their
commercial requirements. All units are required to enter data accurately and
immediately upon the goods being received in or removed from the unit. The
digital records should be kept updated, accurate, complete and available at the
unit at all times for verification by the proper officer, whenever required. A
digital copy of Form A, containing transactions for
the month, shall be provided to the proper officer, each month (by the 10th of
month) in a CD or Pen drive, as convenient to the unit.
5.1. The above requirement of maintaining digital
records, in the prescribed Form, is applicable from 13th August 2016. Record of
imported goods received on or after 13th August 2016 shall be maintained as per
the prescribed Form. The information regarding the stock of goods lying with
the unit need to be integrated into the digital record prescribed under this
circular. However, data relating to goods already processed and/or cleared need
not be updated in the digital records. The warehoused goods register maintained
hitherto shall suffice for the purpose.
6. In view of the warehousing procedures having
been dispensed with for these units, the system of sending re-warehousing
certificates to the customs station of import shall also stand dispensed w.e.f 13th August 2016.
7. In place of the re-warehousing certificate
procedure, the following is prescribed:
(i) The Units shall continue to obtain / furnish
a Procurement Certificate at the Customs Station at the time of import or
pre-authenticated procurement certificates, as applicable to them;
(ii) Upon receipt of goods in the unit, a copy of
the relevant bill of entry shall be provided to the jurisdictional office;
(iii) The jurisdictional office shall reconcile the
imports with procurement certificates.
7.1. Inter-unit transfer of capital goods and
manufactured goods has been provided in para 6.13 of FTP 2015-20 and
involves prior intimation. Additionally, at present, a procedure of bond to
bond movement is being followed, whenever capital goods, manufactured goods or
inputs are supplied by one unit to another. In place of bond to bond movement,
the following procedure shall be followed:
(i) Any procurement by one unit from another
should be supported by a procurement certificate or pre-authenticated
procurement certificates, as applicable;
(ii) The supply of the goods from one unit to
another shall be based upon the usual commercial documents, such as, invoice
& delivery challan;
(iii) Upon receipt of goods, copies of documents
shall be provided to the jurisdictional office of the sending and receiving
unit by way of intimation;
8. Any difficulty faced in the implementation
of this circular may be brought to the notice of the Board.
F. No. 484/3/2015-LC (Pt II)
Form -A
Form to be maintained by EOU/STPI/EHTP
for the receipt, storage, processing and removal of goods.
(as per
Circular 35/2016-Customs dated 29thJuly2016)
Name of EOU
and address:
Central Excise/Service
Tax Registration No:
Range_______
/ Division_______ Commissionerate____________
Receipts
1. Bill of
Entry No. and date, if applicable:
2. Customs
Station of import, if applicable:
3. Code and
address of Warehouse from where received (only in cases goods are procured from
public or private warehouse):
4. Name
& Address of EoU from where goods are received,
if applicable:
5. Others
(in case of any other source of procurement):
6. Details
of B-17 Bond/ Amount debited:
7. Description
of goods:
8. Invoice
No.:
9. Procurement
Certificate No. and date:
10. Unit,
Weight and quantity:
11. Value:
12. Duty
assessed:
13. Registration
No. of means of transport:
14. Date
and time of receipt:
Removal for processing
15. Date
and time of removal:
16. Quantity cleared:
17. Value:
18. Duty
involved:
19. Remarks
(The goods removed for processing shall be accounted in a
manner that enables the verification of input-output norms, extent of waste,
scrap generated etc):
Other
removals
20. Purpose of removal:
21. Date
and time:
22. Quantity:
23. Value:
24. Duty:
25. Details
of document under which removed (No. and date):
Returns to
unit
26. Purpose
of return:
27. Date
and time:
28. Quantity:
29. Value:
30. Duty
involved:
31. Details
of document under which returned (No. and date):
Balance in
stock
32. Quantity:
33. Value:
34. Remarks: