EOUs-Jurisdiction of Customs and Excise Defined

Cus Circular No.126/1995 date 12/12/95

Subject: Administrative control over the 100% Export Oriented Units (EOU) - Instructions regarding

I am directed to say that the Board has examined various representations from the associations of officers both from Customs and Central Excise side of the Department regarding the administrative control over the 100% EOUs/EPZs, set up under export promotion schemes.

2. The Board has examined the matter in detail and observed that with the passage of time the 100% EOU/EPZs have come up in the interiors of the country far removed from the port areas which have traditionally been the areas of customs operation. At the same time the nature of work in the 100% EOU/EPZs involves both Customs/Central Excise Laws and procedure. Therefore, having regard to the totality of operations of the 100% EOUs/ FTZs units and keeping in mind the necessity that in the long run any work whether Customs or Central Excise should be handled by jurisdictional Commissionerate, and facilitating the administration of these units at present, the matter of jurisdiction has been decided as follows :-

(a) normally, the work of 100% EOU/EPZ units will be handled by the, staff of the jurisdictional Commissioner of Customs or Commissioner of Central Excise, as the case may be;

(b) In the port towns, where there is over-lapping jurisdiction of the Commissioner of Customs and the Commissioner of Central Excise, the work of 100% EOU/EPZ unit will be handled by the staff of Commissioner of Customs including the Central Excise work of the units. This will be done by suitable delegation of Powers. "The proposal for the same may be referred to Board, if necessary ;

(c) Notwithstanding the aforesaid decisions, where the Board has already assigned the work in an identified EPZ such a FALTA, NOIDA to a Commissioner of Customs keeping in mind physical proximity of the facility to a particular Customs Commissionerateor any other consideration such orders would not be disturbed immediately and the existing arrangement would continue.

(d) In the case of facilities under the jurisdictional control of a particular Commissioner where both Customs and Central Excise cadres an working under the same Commissioner, for example Vizag, Goa the work of 100% EOUs/EPZs would be handled as per the instructions continued in (a) above;

(e) Where the jurisdiction of the Commissioners of Customs (P) is concerned, as the jurisdiction would, be concurrent with some Central Excise Commissionerate, the control may be exercised by the Central Excise Commissionerate. This is mainly to allow Commissioner of Customs (P) to concentrate on Customs Preventive work. If the existing arrangements of control is with CC (P) the change over may be made w.e. of 1.1.96, the Chief Commissioner may after studying the staffing pattern issue suitable orders for readjustment of staff between the officers of CC(P) and Commissioner of Central Excise.

3. As regards the administrative/technical control on the existing EPZs, the Board is of the view that the present arrangement would continue. Accordingly, the Commissioner of Customs, Delhi will continue to exercise control over the  Noida EPZ while Commissioner of Customs, Calcutta would continue to exercise control over the FALTA and so on.

4. I am directed to say that the Board's aforesaid decision has been taken afterexamining the issue of administrative control over the EOU/EPZ in totality keeping in mind the requirement of law and the facilities to the trade. It is expected that with the decision, as above, the representations of various service associations will be set at rest.

5. It is requested that, necessary action may be taken by all concerned officer to implement the subject decision of the Board.

Sd/-
(Ranjana Jha)
Under Secretary to the Government of India

F.No.305/4/95-FTT

Presented by eximkey.com