Contract farming

6.22

EOUs engaged in production/processing of agriculture/horticulture/aquaculture products, may on the basis of annual permission from the Customs authorities take out inputs and equipments (specified at Appendix-14- IJ) to the DTA farm subject to the following conditions:-

(a) Supply of inputs by the EOUs to the contract farm(s) shall be subject to the input-output norms approved by the DGFT/BOA.

(b) There shall be contract farming agreement between the EOU and the DTA farmer(s).

(c)The unit has been in existence for at least two years and engaged in export of agriculture / horticulture/ aquaculture products; otherwise it shall furnish bank guarantee equivalent to the duty foregone on the capital goods/inputs proposed to be taken out to the Deputy/Assistant Commissioner of Customs/Central Excise till the unit completes two years.

(Above (c) has been amended vide PN.NO. 06/2006, DT. 02/05/2006)

[OLD-
(c) The unit engaged in export of agriculture/horticulture / aquaculture products shall furnish bank guarantee equivalent to the duty foregone on the capital goods/ inputs proposed to be taken out to the Deputy /Assistant Commissioner of Customs /Central Excise. ]

(Please refer CUS CIR NO. 17/2006 DATE 01/06/2006)