|
TRADE NOTICE NO.
53 /2003 |
Dated: |
10.04.2003 |
Subject:-
Simplified Central Excise Procedure for export of
readymade garments - Reg.
****************
Copy
of Board's Circular No. 705/21/2003-CX (F.No. 209/12/2003-CX.6) dated
08.04.2003 is communicated herewith for information and necessary action.
The
Board's Circular No. 703/19/2003-CX dated 25th March, 2003 (F.No.
B3/1/2003-TRU) referred at para 4 below has already been communicated as Trade
Notice No. 35/2003 dated 27.03.03.
The contents of the Trade Notice may be brought to the notice of all
concerned.
(Issued
from file C.No. IV/16/ 2 /2003 CX. Pol Vol. II)
Sd/-
(V.V.
HARIHARAN)
ADDITIONAL COMMISSIONER (PREV.)
As
per Mailing List (Both Department & Trade)
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COPY
OF BOARD"S CIRCULAR No. 705/21/2003-CX (F.No. 209/12/2003-CX.6) dated
08.04.2003
I am directed 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.
2. 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 withdrawl of the SSI exemption benefits.
3. 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.
4. As regards Registration of the said units, Board has decided
that penal action on account of clearances of 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). While allowing this
relaxation, the Board’s concern is that export clearances are not hampered
on technical grounds.
5. Board’s instructions contained in the Central Excise Manual as specified above, stands modified to the above extent.
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