The Central Board of Indirect Taxes and Customs (CBIC) has issued a circular in respect of implementation of automation in the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022 in respect of Export Oriented Units (EOUs).
The Board has received the representations from several EOUs regarding difficulties being faced by them in the implementation of the above module such as Registration, generation of IIN details and the submission of Bond details. The trade has represented that this leads to delay in the clearance of the goods.
Board has decided to implement the Circular No. 11/2024- Customs dated 25.08.2024 in relation to EoUs from 17.09.2024 onwards. As per the circular necessary developments have since been completed on the System to allow clearances to EOUs under IGCR, all EOUs would be required to obtain IGCR Identification Number (IIN) at ICEGATE portal, and also register their IGCR bond for filing a bill of entry with IGCR benefit.
Once this module is activated, the same process would be used for clearances from SEZ to EOUs, as well. It is decided to implement the automation in the IGCRS Rules, 2022, in respect of EOUs with effect from 01.09.2024. Accordingly, all EOUs may obtain IGCR Identification Number (IIN) at ICEGATE portal by registering immediately as the SEZ Unit becomes ICEGATE enabled. The field formations are advised to issue Suitable Public Notice etc. for guidance. Any difficulties faced or doubts arising in the implementation of this Circular may please be brought to the notice of Board.
Export Oriented Units (EOUs) have been defined under the Foreign Trade Policy (FTP) as those units undertaking to export their entire production of goods and services [except permissible sales in Domestic Tariff Area (DTA) for manufacture of goods, including repair, re-making, reconditioning, re-engineering, rendering of services, development of software, agriculture including agro-processing, aquaculture, animal husbandry, biotechnology, floriculture, horticulture, pisciculture, viticulture, poultry and sericulture. Trading units are not covered under the EOU.
The objectives of the EOU Scheme are to promote exports, enhance foreign exchange earnings, attract investment for export production and employment generation.
What is the eligibility for setting up an EOU?
Only projects having a minimum investment of Rs.1 Crore in plant & machinery shall be considered for establishment as EOUs. However, this shall not apply to existing units, units in Handicrafts /Agriculture/ Floriculture/Aquaculture/Animal Husbandry/Information Technology, Services, Brass Hardware and Handmade jewellery sectors. BOA may allow establishment of EOUs with a lower investment criterion.
Circular No.13/2024-Customs
Date: 04/09/2024
