Conditions of Import

6.7

Import of goods by EOU / EHTP / STP / BTP units shall be subject to following conditions:

(a) Goods shall be imported into EOU / EHTP / STP / BTP premises. However, agriculture and allied sectors and granite sector units in EOU may supply / transfer capital goods and inputs in farm / fields / quarries with prior intimation to jurisdictional Customs / Central Excise authorities, provided ownership of goods rests with EOU units. Granite sector would also be allowed to take spares upto 5% of value of Capital Goods to quarry site.

(b) Procedure as prescribed under Customs / Excise rules for EOUs and units in EHTP / STP / BTP will be followed and appropriate bond executed with Customs / Excise authorities

(c) Goods, except capital goods and spares, shall be utilized by EOU / EHTP / STP / BTP units within a period of three years or as may be extended by Customs authorities. However, imported tea shall be utilized within a period of 6 months from date of import. Similarly, export obligation against import of items {covered by Chapter 9 of ITC(HS)} and coconut oil shall be fulfilled within a period of 90 days from the date on which first import consignment is cleared by Customs Authorities.

However, in case of import of spices for VA purpose like crushing/grinding/sterilization or for manufacture of oils and oleoresins of pepper, cardamom and chillies (and not for simple cleaning, grading, repacking etc.), EO shall be fulfilled within 120 days from the date of importation of first consignment. However, for imports completed up to 31.12.2008, Export Obligation Period (EOP) shall be 150 days from the date of clearance. In case of import of spices (other than pepper, cardamom and chillies) for manufacture of spice oils and oleoresins, EO shall be fulfilled within 12 months.

(Second sentence at above sub para has been inserted vide PN NO. 175/2008, DT. 15/04/2009)

(In above (c), Second sub-para has been substituted vide PN. NO. 50/2008, DT. 17/07/2008)

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However in case of import of spices for VA purpose like crushing / grounding / sterlisation or for manufacture of oils and oleoresins and not for simple cleaning, grading, re-packing etc., EO shall be fulfilled within 120 days. ]

(d) Goods already imported / shipped / arrived before issue of LoP / LoI are also eligible for duty free clearance under EOU / EHTP / STP / BTP scheme, provided customs duty has not been paid and goods have not been cleared from Customs.

(e) Consumption of inputs by the EOU / EHTP / STP / BTP unit shall be based on the Standard Input Output Norms (SION) provided that:

(i) where no SION have been notified, generation of waste, scrap and remnants upto 2% of input quantity shall be allowed;

(ii) where additional items other than those given in SION are required as inputs or where generation of waste, scrap and remnants is beyond 2% of input quantity, use of such inputs shall be allowed by the jurisdictional Development Commissioner within a period of three months from the date of and based on self-declared norms, with the unit undertaking to adjust self-declared / ad-hoc norms in accordance with norms as finally fixed by Norms Committee in DGFT;

(iii) in case of any difficulty in fixation of SION as above, Board of Approval, in consultation with Norms Committee in DGFT, will decide on a case to case basis.