CBEC Issues Procedure for Excise Duty Free Shops against Rs. 35k Baggage Allowance
[CBEC
Circular No. 970 dated 23rd May 2013]
(1) Registration of warehouse
(2) Procedure in respect of excisable goods
removed from a factory to a warehouse of Duty Free Shop
(3) Goods allowed to be cleared under these
provisions
(4) Demand of duty on goods not reaching
destination
(5) Procedure for transfer of goods from
warehouse to retail outlet and sale therefrom
(6) Period of Warehousing
(7) Duty
on removal for home consumption or on expiry of the warehousing period
(8) Duty leviable on the goods not duly accounted for as having been
sold in foreign currency to passengers going abroad, or sold to passengers
arriving from abroad, etc.
(9) Periodic
Reconciliation
Annexure A Bond (with surety) for the due arrival of the goods removed from a
factory to warehouse/duty free shop in the departure hall or arrival hall, as
the case may be, of the customs airport
Annexure B Certificate
for removal of the goods under bond
Annexure C Application for removal of the goods from a
factory to the warehouse of the duty free shop in the departure hall or the
arrival hall, as the case may be, at the Customs airport
Annexure D Record of Removals in Bond
Subject:
Procedure governing the movement of excisable indigenous goods to the
Warehouses or retail outlets of Duty Free Shops appointed or licensed under the
Customs Act, 1962.
In exercise of the powers
conferred under sub-rule (2) of rule 20 of the Central Excise Rules, 2002, the
Central Board of Excise and Customs hereby specifies the following conditions,
limitations, safeguards and procedures for removal of such excisable goods as
allowed herein, to godowns or retail outlets of Duty
Free Shops , to which the warehousing
provisions have been extended by the Central Government vide Notification No.
07/2013-C.E. (N.T.), dated 23rd May, 2013.
(1) Registration of warehouse:
(i) The godowns
and the retail outlets of Duty Free Shops in the departure/ arrival side of the
International Airport appointed/licensed under Section 57 or 58 of the Customs
Act, 1962 shall be deemed to be registered under rule 9 of the Central Excise
Rules, 2002 for the purpose of warehousing of excisable goods meant for sale to
international passengers in terms of the aforesaid notification.
(ii) For the purpose of control
over the receipt, storage and sale of such excisable goods, the officers of
Customs having jurisdiction over these godowns and
retail outlets have been appointed as officers of Central Excise vide
notification No. 08/2013-C.E.(N.T.), the dated 23rd
May, 2013.
(2) Procedure
in respect of excisable goods removed from a factory to a warehouse of Duty
Free Shop:
(i) Application for obtaining the goods free of
duty.
– The owner of Duty Free Shop (hereinafter referred to as consignee) shall make
an application in writing to the jurisdictional Assistant/Deputy Commissioner
of Customs, stating therein his intention to procure duty free excisable goods
directly from the factory of manufacturer, for sale against foreign currency in
Duty Free Shops located in the departure halls, or for sale in Duty Free Shops
located in the arrival halls in terms of a notification issued in terms
of Section 5A of Central Excise Act, 1944 in this regard, as the case
may be, at the International Airports. The Assistant/Deputy Commissioner of
Customs shall grant the permission after causing such enquiries as he may deem
fit. The consignee shall then execute a running bond in the form given in
Annexure A with such surety or security, as the Assistant/Deputy Commissioner
of Customs may approve.
Provided that in the event of death, insolvency or insufficiency of the surety,
or where the amount of the bond is inadequate, the Assistant/Deputy
Commissioner of Customs may, in his discretion, demand a fresh bond, or, if the
security furnished for a bond is not adequate, demand additional security.
(ii) Issuance of Certificate -
For procuring the excisable goods without payment of duty directly from the
factory, the owner of the Duty Free Shop shall make an application to the
jurisdictional Superintendent of Customs, giving the details and quantity of
the goods required, the name, address and registration No. of the manufacturer,
value of the goods and the Central Excise duty involved thereon. The said
officer of customs shall issue a certificate, in triplicate, in the form given
in Annexure-B and debit the bond amount accordingly. The original certificate
shall be sent by the said Customs officer to the factory from which the goods
are to be obtained. The duplicate copy of the certificate shall be sent to the
Central Excise Superintendent in-charge of the Range of the aforesaid factory.
These copies may be sent to the addressee by handing over the same to the
consignee in a tamper proof sealed cover. The certificate shall be serially
numbered financial year wise.
(iii) Removal of goods to duty free shop.
- On receipt of the certificate mentioned in para
2(ii) above, the owner of the factory from where the goods have to be removed
(hereinafter referred to as consignor) shall prepare an application in the form
given in Annexure-C, in quadruplicate, for removal of the goods mentioning clearly
the details of the bond as given in the certificate issued by the
Superintendent of Customs. The removal
application should be serially numbered. Separate Serial Nos. should be given
for each financial year. The Serial Number should be noted on all the copies.
(iv) Preparation
of Invoice and disposal of Annexure- C The manufacturer or
consignor shall also prepare an invoice in terms of Rule 11 of the Central
Excise Rules, 2002 in respect of the goods proposed to be removed from his
factory and will thereafter remove the goods from the factory. The
package shall indicate the address of the consignee and bear the marking “For
sale in Duty Free Shop at ----- Airport”. The original, duplicate and
quadruplicate copy of Annexure-C and original copy of the invoice shall
accompany the consignment. The triplicate copy of Annexure-C along with a
copy of the invoice shall be sent by the consignor to the Superintendent of
Central Excise officer-in-charge of Range of his factory within 24 hours of the
removal of the consignment in question. The said Superintendent of Central
Excise shall keep a record of the same with him in a register in the format as
per Annexure D.
(vi) Responsibility
for further accounting- After receipt of the goods from the
consignor, proper accounting and disposal of the goods shall be the
responsibility of the consignee in terms of the Bond.
(vii) Examination of the consignment on receipt-
The consignee must give intimation of the arrival of the consignment at his
premises to the Superintendent of Customs without any delay and should store
the same separately and intact, pending examination and check by the said
officer. The said officer, after taking account of the goods, will identify
them with the marks and numbers, and check the consignment in full. Thereafter,
he shall complete the certificate on the original, duplicate and quadruplicate
copy of Annexure-C as received along with the consignment. The duplicate copy
of Annexure C shall be returned to the Central Excise Superintendent in-charge
of the Range directly, through registered post or in a tamper proof seal cover
through consignee/consignor. The quadruplicate copy would be sent to the
factory from where the goods had been received. The original shall be retained by
the said Customs officer for his record. The
deficiency, if any, shall immediately be reported to the Central Excise
Superintendent incharge
of the Range for realising the duty on the deficiency. Suitable entries shall
be made in the records of the warehouse as may be prescribed by the
Commissioner of Customs. The warehousing shall be completed accordingly.
(3) Goods allowed to be cleared under these
provisions – The procedure prescribed herein should not be
allowed for clearance , from the factory , of goods which are restricted or
prohibited under Second Schedule of ITC (HS) [Export Policy ] or in
respect of which quantitative restrictions have been imposed for exports under
FTP or under any other notification issued by the DGFT .
(4) Demand of duty on goods not reaching
destination. - If the certificate of receipt of the
goods despatched to the consignee as per paragraph 2 (vii) is not received back
by the consignor within 45 days of the removal of the goods or within such
extended period as may be allowed by the Assistant Commissioner of Central
Excise or Deputy Commissioner of Central Excise, it shall be the responsibility
of the consignor to pay the duty of excise leviable
on the consignment.
(5) Procedure for transfer of goods from
warehouse to retail outlet and sale therefrom
(i) The procedure prescribed by the
Commissioner of Customs for transfer of imported goods from the godown of Duty Free shop to its retail outlets in the
departure hall or the arrival hall of the International Airport shall be
applicable, mutatis mutandis, to indigenous goods so procured. Commissioner of
Customs may also prescribe suitable records i.e. stock register etc to be maintained at the retail outlets for the proper
accounting of the excisable goods.
(ii) Every sale of the excisable goods shall be
covered by a sale voucher or invoice . The
Commissioner of Customs may also prescribe suitable procedure for the
reconciliation between the receipt of excisable goods in the warehouse and sale
thereof from the Duty Free Shops.
(6) Period of Warehousing,- The
excisable goods shall be allowed to remain warehoused for one year
or for six months in the case of perishable goods , or such extended period ,
not exceeding a total of three years , as may be allowed by the
Assistant/Deputy Commissioner of Customs. If the registration of a
warehouse is revoked or suspended, the excisable goods kept therein shall be
deemed to have been cleared for home consumption on the date of such revocation
or suspension of the warehousing permission.
(7) Duty on removal for home consumption or
on expiry of the warehousing period - Warehoused goods can be removed for
home consumption from the warehouse under the cover of an invoice with the
permission of the jurisdictional Assistant/Deputy Commissioner. Warehoused
goods shall be deemed to have been removed for home consumption on expiry of
the warehousing period. Duty and interest shall be charged as applicable on
removal of warehoused goods for home consumption. Interest at the rate of
twenty four per cent shall be charged from the date of clearance from the
factory of production to the date of removal of the goods from the warehouse or
to the date of expiry of warehousing period as the case may be.
(8) Duty leviable
on the goods not duly accounted for as having been sold in foreign currency to
passengers going abroad, or sold to passengers arriving from abroad, etc. -
If any goods obtained under this procedure are not duly accounted for to the satisfaction
of the Assistant/Deputy Commissioner of Customs as having been sold against
foreign currency to the passengers going abroad, or to the passengers arriving
from abroad in terms of a notification issued in terms of Section 5A of
Central Excise Act, 1944 in this regard they shall be deemed to have
been cleared for home consumption. Duty and interest at the rate of
twenty four per cent shall be charged on these goods from the date of
clearance from the factory of production till the date of payment of
duty. The facility granted to the consignee, may, at any time, be
withdrawn by the Commissioner of Customs if a serious or repeated breach
of the procedure is committed by the consignee, his agent or any person
employed by him. In the event of such a breach, the Commissioner of Customs may
also order the forfeiture of the security deposited under paragraph 2(i) above
and may also confiscate the goods.
(9) Periodic Reconciliation -
Reconciliation at such periodic intervals as may be prescribed by the
jurisdictional Commissioner but at intervals not lesser than once a year
shall be carried out independently at the warehouse by the warehouse
owner , at the factory by the factory owner supplying goods to the Duty
Free Shops and result thereof submitted to the jurisdictional
superintendent. Such reconciliation shall include reconciliation between
Annexure B, Annexure C and invoice issued from the factory.
(10) Hindi version of this Circular follows.
[F.No.209/08/2011-CX.6]
Annexure-A
Bond (with
surety) for the due arrival of the goods removed from a factory to
warehouse/duty free shop in the departure hall or arrival hall, as the case may
be, of the customs airport
(Delete the
letters and words not applicable)
I/We
(1).............................................. of .....................
hereinafter called the obligor(s) and (2) I/We ..............................
.......................................... of ...............................(hereinafter
called the surety) am/are jointly and severally bound to the President of India
in the sum of rupees ........................... to be paid to the President of
India for which payment I/We jointly and severally bind myself/ourselves and
my/our legal representatives.
The
above bounded obligor(s) being permitted to remove the goods described in
his/their application No................. dated
.............. from the factory at
................ to the warehouse/retail outlet of duty free shop in the
departure hall or the arrival hall, as the case may be, of customs airport at
.......
The
condition of this bond is that if the obligor(s) and his/their legal
representatives shall observe all the provisions of the Notification No. _-----
dated ____ dated read with this circular and all the
provisions of the Central Excise Rules, 2002, and all such amendments thereto,
as maybe issued from time to time, to be observed in respect of the goods so
transferred.
And,
if all the said goods are duly removed to the duty free shop in the departure
hall or the arrival hall, as the case may be, of the customs airport before the
.............. day of............. 20
And,
if all the said goods are sold, in foreign currency to eligible passengers
going abroad or to the passengers arriving from abroad, as the case may be,
This
obligation shall be void.
Otherwise
and on breach or failure in the performance of any part of this condition, the
same shall be in full force.
I/We
declare that this bond is given under the orders of the Central Government for
the performance of an act in which the public are interested.
Place:
Date:
Witnesses
(1)
Address
(1)
Occupation (1)
(2)
Address (2)
Occupation (2)
Accepted by me this .............. day of
............. (Month)...……..(Year)
[................ of
Central Excise]
[for and on behalf of the
President of India]
Annexure-B
No................ Date............
Form
Certificate for removal of the goods under bond
This
is to certify that:
(1)
Mr./Messrs......................................(Name
and address) is/are authorised to store and sell the goods, in foreign currency
to eligible passengers going abroad or to passengers arriving from
abroad, as the case may be, up to........
(2)
That he/they has/have executed a bond, as required, under Circular No. _____
dated ____ issued under rule 20(2) of the Central Excise Rules, 2002 for Rs...................with the Asstt./Deputy
Commissioner of Customs............and as such may be permitted to
remove................ (Qty.) of...............goods from the units
at...................to warehouse/retail outlet of duty free shop in the
departure hall or the arrival hall, as the case may be, of customs airport
at.........................
(3)
That the specimen signatures of his/their authorised agent namely Shri............................are furnished here below
duly attested:
Specimen Signatures
of owner
Superintendent of Customs
of DFS or his authorised agent
(Seal)
Sd./Attested
Annexure-C
Range...
Original
Duplicate
Triplicate
Quadruplicate
Application
for removal of the goods from a factory to the warehouse of the duty free shop
in the departure hall or the arrival hall, as the case may be, at the Customs
airport
I/We
holder(s) of Central Excise Registration No..........................apply for
leave to remove the under mentioned goods from the factory
at.......................to the warehouse/retail outlet of duty free shop in
the departure hall or the arrival hall, as the case may be, of customs airport
at............................. of Mr./Messrs.........
|
Description
of goods |
No.
And description of packages |
Gross
weight of packages |
Marks
and number of packages |
|
(1) |
(2) |
(3) |
(4) |
|
Quantity
of goods |
Value |
Duty |
Manner
of |
Remarks |
|
|
Rate |
Amount |
||||
|
(6) |
(7) |
(8) |
(9) |
(10) |
(11) |
2. The aforesaid Mr. / Messrs.............have executed a bond at destination;
bearing No..................dated ..........for rupees............
A
certificate from the officer of customs in-charge of the duty free shop
at.........in Annexure B to the Circular No.
--------Central Excises, dated ------ is attached.
3. I/We hereby declare the above particulars to
be true.
|
Place: |
Signature
of Consignor(s)/ Owner(s) or his/their authorised agent |
|
Date: |
On
the back side
(1) Certificate of Superintendent of Customs.
To,
The
Central Excise Officer
In-charge of Range of factory of removal
I hereby
certify that the consignment arrived at...................and that the goods
conform in all respects to the description given above/overleaf/except for the
following discrepancies and that they have been entered under Entry
No..........dated ..........of the Stock Register prescribed by the
Commissioner of Customs.
|
Place: |
Signature
of Superintendent of Customs |
|
Date: |
Annexure-D
Record of Removals in Bond
Range
officer...........
|
Sl.No. |
Annexure
B No. & Date |
Name
and address of the factory of removal |
Goods |
Destination |
|
|
Description |
Net
quantity |
Name
and address of the Duty Free Shop |
|||
|
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
|
|
|
|
|
|
|
|
Annexure
C No. and Date |
Invoice
No. & Date |
Date
of Despatch of goods |
Date
of return of duplicate Annexure C with warehousing certificate |
Gain
(Plus) or Loss |
|
|
Gain |
Loss |
||||
|
(7) |
(8) |
(9) |
(10) |
(11) |
(12) |
|
|
|
|
|
|
|
|
Action
taken on gain/loss |
Remarks |
|
|
(13) |
(14) |
|
|
|
|
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