CHENNAI II
COMMISSIONERATE
692 MHU
COMPLEX NANDANAM CHENNAI-35
TRADE NOTICE NO. 20 /2003.
DATED 29 -04-2003.
Subject : Simplified Central Excise Procedure for export of readymade garments – regarding. ****************
It is directed by the Board to refer to
instructions contained in Part-III Chapter VII of Central Excise Manual
prescribing Simplified Export Procedure for exempted units. This procedure
inter alia envisages that the goods meant for export can be cleared on the
invoices (instead of regular ARE-1) or other similar documents of the
manufacturer-exporters containing particulars of description of goods, name and
address of the buyer, destination, value, date and time of removal of goods,
etc. Further, such persons are allowed to maintain a simple record of quantity
and value of production and clearances. This procedure is applicable to units,
which are fully exempted from payment of duty by a notification granting
exemption based on value of clearances for home consumption.
In this connection, representations have been received from the
Association of exporters of readymade garments to extend the said procedure to
readymade garment units which are primarily exporting almost all of their
production but are now required to pay duty on rejects/wastes generated during
the export production following exclusion of readymade garments (Chapter 61
& 62) from the purview of notification Nos. 8/2003-CE and 9/2003-CE both
dated 01.03.2003. The Association has also brought to the notice of the Board
the delay likely to take place in the grant of registration in view of the
large number of units now seeking Registration on account of withdrawal of the
SSI exemption benefits.
Board has examined the matter. It is observed
that the Simplified Export
Procedure is presently applicable to the exempted units.
However, since the readymade garment manufacturers are primarily exporting
almost all of their production and the clearances of rejects and waste to home
consumption is minimal, it shall be in the interest of the exports to extend
the Simplified Export Procedure to readymade garments sector. Accordingly,
Board has decided to extend the Simplified Export Procedure to readymade
garments sector (not to other sectors) by making the procedure
applicable to such units which are primarily exporting and the clearances of
waste and rejects for home consumption on payment of duty does not exceed 5% of
their export turnover during the year.
` As
regards Registration of the said units, Board has decided that penal
action on account of clearances from such units for home
consumption on payment of duty pending grant of registration may not be
initiated for the time being and in the intervening period formalities like
declaration of stocks and record keeping, etc may not be subjected to mandatory
requirements. In this regard reference may also be made to Board’s circular
703/19/2003-CX dated 25th March,2003 (F.No.B3/1/2003-TRU).
Communicated vide this office Trade Notice No. 5/2003 dated 28-03-2003. While
allowing this relaxation, the Board’s concern is that export clearances are not
hampered on technical grounds.
Board’s instructions contained in the Central
Excise Manual as specified
above, stands modified to the above extent.
The contents of this Trade Notice may please be brought to
the notice of all the
Constituent
members of your Association and the manufacturers of Textile and Textile
Articles in particular.
( Authority: Board's
Circular No. 705/21/2003-CX 8th April, 2003 from File
F.No.209/12/2003-CX.6)
(Issued from File C.No. IV/16/217/2003 CX POL)
(K.R. UDAY BHASKAR)
ADDITIONAL COMMISSIONER (TECH)
To
The Trade and Field formations.
( As per the Mailing List)