Subject :    EXIM Policy 1997-2002 regarding

        I am directed to refer to the EXIM Policy 1997-2002 and to say that certain doubts have arisen regarding the implementation of the above said Policy. The issues have been examined and the para-wise clarification is as under :

(i)    Para 9.9 (e)

        It has been provided that EOU/EPZ units may be permitted to sell finished products, which are freely importable under the Policy, in the DTA over and above the levels permissible under sub-paragraph (b) & (c) of paragraph 9.9 against full payment of duties, provided they have achieved on an annual basis, the stipulated NFEP and export obligation. It is clarified that in such cases the duty shall be levied as if the goods have been imported as such. However, the rates of duty applicable will be the effective rates of duty & not the tariff rate of duty.

(ii)    Para 9.12

        It has been provided that EOU/ EPZ units may with the permission of the concerned customs authority supply or sell in the DTA, samples of goods produced by EOU/ EPZ units for display / market promotion upto 1% of the value of previous years export or maximum of Rs. 1 lakh in case of new units going into production, on payment of applicable duties. It is clarified that condition (B) of the Notification No. 53/ 97-Cus. dated 3rd June, 1997 and conditions 2 (a) of notification No. 1/95- CE dated 4/1/95 provides for clearance & return of goods without payment of duty for display purposes, however, in case the samples of goods produced are to be cleared for sale, then the same may be allowed clearance on payment of appropriate duty as if the same have been imported as such.

(iii)    Para 8.35

        It has been provided that samples made in wax models, silver models and rubber moulds may be permitted for export with the permission of Development Commissioner of the EPZ / EOU concerned provided its value dose not exceed Rs. 10,000/- in a year. It is clarified that in such cases there may not be any receipt of foreign exchange because the units may supply the samples free of cost of promote trade and, the formalities for GR may not be insisted upon and the such goods may be allowed for export.

(iv)    Para 8.55 of the Handbook of Procedures

        It has been provided for the personal carriage of samples of precious metal jewellery/ precious / semi-precious stones and beads by the exporters. The exporter shall declare the carriage of such samples to the customs while leaving the country and obtain necessary endorsement of the Export  Certificate issue by the jewellery Appraiser of the Customs, It is clarified that the procedure prescribed for personal carriage of jewellery already. exists and the same may be followed in such cases also. However formalities of GR may not be insisted upon.

2.    The above clarifications may be brought to the notice of the field formations and trade for smooth functioning of the Export Oriented Units.