Trade Notice - 08/2003

Subject: Simplified Central Excise Procedure for Exporters            
                of Readymade Garments – regarding.

             Trade and industry are aware of the existing simplified Export Procedure for exempted units. This procedure, inter alia, envisages that goods meant for export can be cleared on invoices (instead of regular ARE-1) or other similar documents of 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.

            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 representations were received by the Ministry from the Association of Exporters of Readymade garments to extend the said procedure to readymade garment units which are primarily exporting all of their production but are now required to pay duty on rejects/waste generated during export production. It was also brought to the notice of the Board that delay could take place in the grant of registration in view of the large number of units seeking registration on account of withdrawal of SSI exemption benefits. After careful examination of the matter and in the interest of exports, Board has decided to extend the existing simplified export procedures for exempted units to readymade garments sector (not to other sectors) by making the said 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.

            Further, as regards registration of the said units, Board has decided that penal action on account of clearance of such units for home consumption on payment of duty pending grant of registration will not be initiated for the time being and other procedural requirements like declaration of stock and record keeping etc. will not be subjected to mandatory requirements. This is primarily to ensure that export clearances are not hampered in any way.

All members of the Trade and Industry are requested to give wide publicity to the contents of this Trade Notice.

(RAJENDRA PRAKASH)

COMMISSIONER

Authority : CBEC Circular No. 705/21/2003-CX Dated 8.4.2003