Customs Division
 

               The Customs Division, Bangalore was formed in January 1979, and is headed by Assistant Commissioner of Customs having territorial jurisdiction over the revenue districts of Bangalore, Tumkur & Kolar of Karnataka State. The jurisdiction of 100% Export Oriented Units / STP / EHTP in Karnataka has been ordered by the Chief Commissioner of Customs and Excise, Hyderabad, vide C.No.VIII/48/1/96-CC (HZ) dated. 2.2.1996 vide Public Notice No.32/96 dated. 26.03.1996. The Commissioner of Customs, Bangalore, issued a Public Notice No.56/2003 dated 21.04.2003 communicating the Boardís Circular No. 31/2003-Cus dated 07.04.2003 wherein it was clarified that the Commissioner of Customs, Bangalore will continue to have administrative control over all  EOUís and STP / EHTP within territorial jurisdiction. This exception is only in respect of Bangalore Customs,  since, as per the earlier Boardís Circular No.72/2000-Cus dated 31.08.2000, EOUís and STP/EHTP units situated within the municipal limits of port cities are under the administrative control of jurisdictional Commissioner of Customs and in other cases, under administrative control of jurisdictional Commissioner of Central Excise. 

                The work relating to EOUs /STP/EHTP units is divided among 6 EOU Ranges, and the work pertaining to PUBLIC BONDED WAREHOUSES & PRIVATE BONDED WAREHOUSE is entrusted to the CWC section. The EOUís II, III and V and the CWC Section are functioning from 29/2, Basaveshwara Building, Crescent Road, Bangalore. The EOUís I, IV and VI function out of, F Wing, VII Floor, Kendriya Sadan, Koramangala, Bangalore.  A Superintendent, who is assisted by two Inspectors, heads each range / preventive / CWC. 

                  There are 1653 units registered as on 31.12.2007, out of which 1299 are STP/EHTP units, 354 EOU units. 

                  Range wise working strength of EOUs/STP/EHTP units are as detailed below.

Sl. No. EOU Range No. of STPI/EHTP Units No. of EOUs
1 I 334 62
2 II 76 62
3 III 416 49
4 IV 254 49
5 V 100 69
6 VI 119 63
  TOTAL 1299 354

    The range wise jurisdiction as per Office Order No. 1/2003 dated 05.05.2003 as amended by Office Order No. 3/2004 dated 21.4.2004 issued by the Deputy Commissioner of Customs, Customs Division, Bangalore, is detailed below:

                The range wise jurisdiction as per Office Order No. 1/2003 dated 05.05.2003 as amended by Office Order No. 3/2004 dated 21.4.2004 issued by the Deputy Commissioner of Customs, Customs Division, Bangalore, is detailed below:

       EOU-I 

1.         FROM THE SILK BOARD JUNCTION UPTO BOMMASANDRA INDUSTRIAL AREA,  RIGHT SIDE OF THE HOSUR ROAD AREA   COVERED ARE BOMMANAHALLI, SINGASANDRA, HEBBAGODI, ELECTRONIC CITY INDISTRIAL AREA AND BOMMDASANDRA INDUSTRIAL AREARIGHT SIDE ONLY

2.        FROM SILK BOARD ON LEFT SIDE ON THE INTERMEDIATE RING ROAD COVERING PART OF THE B T M LAYOUT UPTO BASSERAGATTA ROAD INTERMEDIATE ROAD JUNCTION.
3.         FROM SHOOLAY CIRCLE ON BRIGADE ROAD UPTO DIARY CIRCLE COVERING LEFT SIDE OF BRIGADE ROAD.AREA COVERED ARE VIVKNAGAR, AUSTIN TOWN, ADUGUDI, KORAMANGALA, AND MADIVALA.
4.        FROM MADIVALA TOLL-GATE UPTO DIARY CIRCLE LEFT SIDE OF CHRIST COLLEGE ROAD (NIMHANS ROAD)
5.        FROM DIARY CIRCLE ALL THE AREAS FALLING ON LEFT SIDE OF BANNERAGHATTA ROAD UPTO BANNERAGHATTA NATIONAL PARK.AREAS COVERD ARE MICO LAYOUT, THAVARAKERE, MORZARIA INDUSTRIAL ESTATE.
 
EOU-II 
1          FROM OUTER RING ROAD- TUMKUR ROAD JUNCTION ON TUMKUR ROAD COVERING ALL PHASES AND STAGES OF PEENYA INDUSTRIAL AREA.
2         FROM LEFT SIDE OF KUNIGAL ROAD UPTO TUMKUR DISTRICT BORDER ON KUNIGAL ROAD.
3         FROM YESWANTPUR CIRCLE ON LEFT SIDE OF THE TUMKUR ROAD UPTO OUTER RING ROAD ĖTUMKUR ROAD JUNCTION. AREAS CVERED ARE YESWANTPUR INDUSRIAL SUBURB, YESWANTPUR, RMC YARD, AND SERVICE ROAD.
4        FROM YESWANTPURA CIRCLE ON RIGHT SIDE AREAS OF THE ROAD UPTO MARIAMMA TEMPLE CIRCLE (MALLESWARAM)
5       RIGHT SIDE OF SANKEY ROAD (CHOWDIAH ROAD)UPTO GPO AND MINSK SQUARE. THE AREAS COVERED ARE MALLESWARAM, HIGH GROUNDS, PALACE GUTTAHALLI, LOWER PALACE ORCHARDS, SESHADRIPURAM, AND VYALIKAVAL.
6       FROM MINSK SQUARE TO GANDHI STATUE ON RIGHT SIDE OF THE QUEENíS ROAD.
7         FROM GANDHI STATUE OF THE QUEENíS ROAD, RIGHT SIDES OF THE KASDTURBA ROAD, DISTRICT OFFICE ROAD, K G ROAD, UPPARPET POLICE STATION ,DHARMAMBOODHI ROAD,BASHYAM ROAD TILL SUPER THATRE EXTENDED UPTO BINNY MILLS.
8        RIGHT SIDE OF ENTIRE MAGADI ROAD FROM BINNY MILLS UPTO MAGADI TALUK. THE AREAS COVERD ARE RAJAJINAGAR, OKALIPURAM, PRAKASH NAGAR, RAJAJINAGAR INDUSTRIAL AREA, RAJAJINAGAR INDUSTRIAL ESTATE (SSI AREA)
 
EOU-III 
1         FROM THE JUNCTION OF RESIDENCY ROAD ON BRIGADE ROAD UPTO DIARY CIRCLE COVERING THE RIGHT SIDE OF THE ROAD.
2          FROM DIARY CIRCLE ALL THE AREAS ON THE RIGHT SIDE OF BANNERGHATTA ROAD UPTO BANNERGATTA NATIONAL PARK.
3          FROM THE JUNCTION OF BRIGADE ROAD ON  RESIDENCY ROAD UPTO DISTRICT OFFICE ROAD COVERING THE LEFT SIDE OF THE ROAD.
4          FROM RESIDENCY ROAD END, AREAS ON THE LEFT SIDES OF DISTRICT OFFICE ROAD, K G ROAD, UPPARPET POLICE STATION, UPTO BINNY MILLS-MAGADI ROAD STARTING POINT.
5         AREAS ON THE LEFT SIDE OF MAGADI ROAD UPTO MAGADI TALUK BORDER AND MAGADI TALUK.
6         THE AREAS INTER-ALIA COVERD VIDE ABOVE SL.NOS.ARE RICHMOND TOWN, SHANTHINAGAR, WILSON GARDEN, CHAMARAJPET, KALASIPALYAM, V.V. PURAM, SHANKARPURAM, BASAVANGUDI, JAYANAGAR, J P NAGAR, SARAKKI LAYOUT, CHANDRA LAYOUT AND OTHER AREAS COMING IN BETWEEN.
7        BOTH SIDES OF KANAPURA ROAD UPTO BANGALORE RURAL DISTICT BORDER, KANAPURA TALUK.
8        BOTH SIDES OF MYSORE ROAD UPTO MANDYA DISTRICT BORDER AREA COVERD ARE KUMBOLGOD INDUSTRIAL AREA, BIDADI, RAMNAGARAM TALUK AND CHANNAPATNA TALUK.
 9       AREA ON LEFT SIDE OF M G ROAD FROM BRIGADE ROAD JUNCTION UPTO TRINITY CIRCLE.
10      FROM GANDHI STATUE RIGHT SIDE OF MG ROAD UPTO BRIGADE ROAD.
11      FROM M G ROAD JUNCTION RIGHT SIDE OF BRIGADE ROAD UPTO RESIDENCY ROAD.
12     FROM BRIGADE ROAD JUNCTION ON RESIDENCY ROAD CIVERING THE RIGHT SIDE OF RESIDENCY ROAD UPTO DISCTICT OFFICE,
13        FROM BRIDGE ROAD JUNCTION RIGHT SIDE OF RESIDENCY ROAD TOWARDS MISSION ROAD, AND RIGHT SIDE OF KASTURABA ROAD (INTER-ALIA) COVERS THE AREA VIZ.SANPANGIRAMNAGAR AND JOING AREAS) SESHADRI ROAD, PLACE ROAD.
14       FROM MEKHRI CIRCLE TOWARDS JAYAMAHAL ROAD ON LEFT SIDE COVERING THE AREA SITUATED BETWEEN LEFT SIDE OF JAYAMAHAL ROAD, NANDIDURG ROAD, LEFT SIDE UPTO JUNCTION OF J.C. ROAD.
15       THE AREAS OF THE SIDE OF CANTT. RAILWAY STATION UPTO KAMARAJ ROAD, FRASER TOWN, COXTOWN, BHARATHI NAGAR.
16       FROM MEKHRI CIRCLE TO WARDE SANKEY ROAD UPTO END OF CUBBON ROAD COVERING LEFT SIDE OF ROAD WHICH INTER-ALIA INCLUDES SHIVAJINAGAR, VASANTHNAGAR, UPPER PALACE ORCHARDS, CUNNINGHAM ROAD, INFANTRY ROAD, MILLERS ROAD, QUEENS ROAD AND CANTT. RAILWAY STATION.
17        AREAS ON LEFT SIDE OF ROAD LEADING TO MURR=PHY ROAD.

18       BOTH SIDE OF THE OLD MADRES ROAD UPTO HOSKOTE TQ. AREAS COVERD ARE ULSOOR, VIRGONAGAR, DOORVANINAGAR, KRISHNARAJAPURAM AND OTHER AREA S, HOSKOTE TALUK (EXCEPT HOSKOTE INDUSTRIAL AREA) UPTO KOLAR DISTRICT BORDER, EXCLUDES MALURA TALUK.DICKENCION ROAD ,ULSOOR ROAD

EOU-IV

1         FROM TRINITY CIRCLE TOWARDS AIRPORT ROAD UPTO WHITE FIELD-HOSAKOTE ROAD BOTH THE SIDES OF THE AIRPORT ROAD AREAS COVWERD ARE DOMLUR, INDIRANAGAR, JEEVANBHIMANAGAR, KODIHALLI, MURUGESHPALAYA, YAMALUR, H A L BANGALORE COMPLES, MARATHALLI, MAHADEVAPURA VILLAGE, WHITE FIELD VILLAGE, MAHADEVAPURA INDUSTRIAL AREA, ITI ANCILLIARY UNITS AREA, VISVESHWARAIAH INDUSTRIAL ESTATE, WHITEFIELD INTERNATIONAL TECHNOLOGY PARK &ELECTRONICS HARDWARE TECHNOLOGY PARK, WHITEFIELD.
2                    WHITEFELD- HOSKOTE ROAD UPTO JUNCTION POINT ON OLD MADRAS ROAD, AREAS COVERED ARE VARTHUR HOBLI AND SARJAPURA HOBLI, WHITEFIELD, KANNAMAGALA, AND OTHER AREAS ON BOTH THE SIDES OF THE WHITEFIELD-HOSKOTE ROAD UPTO OLD MADRAS ROAD JUECTION.
3                    AREA OF HOSKOTE INDUSTRIAL AREA.
4                    FROM AIRPORT ROAD- INTERMEDIA RING ROAD LEADING TO HOSUR ROAD AND LEFT SIDE OF HOSUR ROAD UPTO BORDER OF COVERD ARE KORAMANGALA, MADIVALA, BOMMANAHALLI, SINGSANDRA, HEBBAGODI, ELECTRONIC CITY PHASE-II, VEERASANDRA INDUSTRIAL AREA
EOU-V
1                    FROM AREAS ON THE LEFT SIDE OF SHIVANANDA CIRCLE ON ROAD LEADING TO SANKEY ROAD
2                    FROM CAVERY THEATRE JUNCTION, AREAS ON THE LEFT SIDE OF ROAD UPTO MEKHRI CIRCLE
3                    FROM MENHRI CIRCLE, AREAS ON BOTHI SIDES OF BELLARY ROAD UPTO KOLAR DISTRICT BORDER, AREA COVERED ARE R.T. NAGAR, SANJAY NAGAR, DOLLARS COLONY, NEW BEL ROAD, JALAHALLI, YELAHANKA, GANGA NAGAR
4                    LEFT SIDE PF NANDI DURGA ROAD, FROM J.C. NAGAR POLICE STATION
5                    AREA ON RIGHT SIDE OF FROM M.G.ROAD, WHEELERS ROAD,UPTO BANASWADI RING ROAD,AREAS COVEREDARE POTTERY TOWN, TANNERY ROAD, NAGAVARA, LINGRAJAPURAM, KACHARKANNA HALLI, HENNUR ROAD, IINENNUR BANDE.
6                    ON TUMKUR ROAD FROM YESWANTPURA CORCLE AREAS ON THE RIGHT SIDE OF THE TUMKUR ROAD UPTO JALAHALLI CROSS JUNCTION, FROM JALAHALLI CROSS ON TUMKUR ROAD UPTO NELAMANGALA JUNCTION ROAD.
6                    ON TUMKUR ROAD FROM YESWANTPURA CORCLE AREAS ON THE RIGHT SIDE OF THE TUMKUR ROAD UPTO JALAHALLI CROSS JUNCTION, FROM JALAHALLI CROSS ON TUMKUR ROAD UPTO NELAMANGALA JUNCTION ROAD.
7                    DEVANAHALLI AND DODDABALAPUR TALUKS OF BANGAQLORE DISTRICT
8                    REVENUE DISTRICTS OF TUMKUR AND KOLAR (EXCEPT MALUR TALUK OF KOLAR DISTRICT)
9                    MAGADI AND NELAMAGALA TALUKS OF BANGALORE RURAL DISTRICT
10                FROM NELAMANGALA ON TUMKUR ROAD UNITS FALLING ON BOTH SIDES OF TUMKUR ROAD.
EOU-VI
1                    ANEKAL TALUK OF BANGALORE RURAL DISTRICT CONSISTING OF JIGANI INDUSTRIAL AREA/HOBLI, ATTIBELE INDUSTRIAL AREA/HOBLI AND BOMMASANDRA INDUSTRIAL AREA (LEFT SIDES ONLY TOWARDS HOSUR ) OF HOSUR ROAD UPTO HOSUR BORDER

2                    LEFT SIDE OF HOSUR ROAD FROM THE CENTREAL SILK BOARD JUNCTION TO ATTIBELE

 3.                   EITHER SIDE OF OUTER RING ROAD UPTO MARATHALLI BRIDGE
4                    AIRPORT ROAD FROM DOMLUR TO MARATHALLI BRIDGE COVERING KODIHALLI
 5.                   JEEVAN BHIMA NAGAR AND INTERMEDIATE RING ROAD
6                    THE RIGHT/LEFT SIDE OF BANNERGHATTA ROAD FROM 11TH MILE, BANGALORE TO JIGANI 
                         The Exporters who opt for the 100% EOU/STP/EHTP unitís scheme are entitled for duty free imports of Capital goods as well as the inputs. For this purpose their premises are treated as PRIVATE BONDED WAREHOUSES and issued with a PRIVATE BONDED WAREHOUSE LICENSE under Section 58 of the Customs Act, 1962, where their non-duty paid goods are allowed to be stored. These non-duty paid inputs are in turn allowed to be used in the manufacture of exportable goods for purpose of which they are issued INBOND MANUFACTURING SANCTION ORDER under Section 65 of the Customs Act, 1962. The Export & Import activities pertaining to these EOUs including the EOU/STP/EHTP units are monitored by EOU Ranges working under the Office of the Deputy Commissioner of Customs, Customs Division. The major commodities of export are: Ready made Garments, Textiles, Polished Granites, Engineering items, Silk fabric, Gherkins and other Horticulture, Floriculture and Tissue Culture items and information Technology Software, Electronic hardware, BPO & ITES etc.  
 
 DUTIES AND FUNCTIONS OF THE OFFICERS IN CHARGE OF EOUíS/STP/EHTP/CWC/PREVENTIVE SECTION:
CWC SECTION:
The importers who find it difficult to pay Customs duties immediately on the importation of the goods are entitled to store such non-duty paid goods in the PUBLIC BONDED WAREHOUSES. Later on they can clear the goods for Home Consumption on payment of duty. For this purpose premises of the 4 Central Warehousing Corporation of India are approved as PUBLIC BONDED WAREHOUSES and 44 others are licensed as PRIVATE BONDED WAREHOUSE. The work relating to the CWC section is looking after Bonding and Debonding of the goods of these warehouses.
LICENSING: The work relating to EOUís begins with issue of Private Bonded Warehouse Licence and In Bond Manufacturing Sanction Order under Section 58 & 65 of Customs Act, 1962. On receipt of application from EOU unit, the premises is verified by the jurisdictional Range Officers. The premises is verified whether it is safe and secure for storing  duty free goods capital goods and raw materials and to carry out in-bond manufacturing activity . The documents submitted by the unit is verified and then the said Licence and In-bond Manufacturing Sanction Orders are issued by the jurisdictional Asst/Dy Commissioner, in charge of Customs Division.
BONDING OF GOODS : After issue of licence/order, the unit has to furnish B.17 Bond with Bank Guarantee / Solvency Certificate  to cover the procurement/purchase of Capital goods and raw materials approved by CSEZ. Thereafter the unit may start procuring/sourcing of imported/indigenous capital goods and raw materials which are  listed in Annexures to Notification Nos. 52/2003 Cus dated 31/3/2003 & 22/2003 CE dated 31/3/2003. A procurement certificate or block transfer is issued for importing of goods without payment of duty and Certificate in form  CT 3 is issued for indigenous procurement  of  goods without payment of duty  by the  jurisdictional Superintendent. The goods so received on importation are bonded in the warehouse within 24 hours of its receipt. On receipt of request for bonding of duty free goods from the unit the Range Superintendent orders for open examination of the packages / containers   and after examination by Inspector, the goods are bonded and re-warehousing certificate is issued. The receipts of goods received from local market are warehoused and intimation under D3 is filed by the party within 24 hours. The ARE 3 sent alongwith goods are signed accordingly by the Range Inspector and sent to the Supplying unit. In case of shortages the units are directed to pay duty.
After the goods are bonded  continuous monitoring is done to ensure that the capital goods are put in to use within one year of bonding and raw-materials within 3 years. If there is any violation duty will be collected along with interest.
EXPORT: The unit has to intimate the date of start of commercial production. Thereafter the unit can undertake exports under physical supervision, by filing Shipping Bill with Invoice and packing list. The Range Superintendent will assess the shipping Bill in advance. The Inspector then verifies the cargo for export and after duly satisfying on comparison with the packing list will seal the packages or container and reports accordingly.   The duplicate copy of the Shipping Bill is sent to the port of shipment in a sealed cover. After export a proof of export is filed by the unit, which is verified.  It is also ensured that the units receive export realization.
XPORTS THROUGH SELF SEALING : In respect of Units which have opted for self sealing the Shipping Bill is assessed by the Superintendent and the invoice is verified by the Inspector. The container/packages are sealed by the person authorized by the unit.
THIRD PARTY EXPORTS : If the party intends to export the goods through third party, the application filed by the party will be verified and permission will be given by the jurisdictional Asst/Dy Commissioner after ensuring that  disclaimer certificates are given by the third party and  there is no duplication in availment of export benefits.
RE-EXPORT : The units are also allowed to re-export defective capital goods / spares for repair and return or on replacement basis and also in cases of unutilized raw materials. Such requests by the party are scrutinized on case to case basis and in respect of eligible cases requests are forwarded to the Divisional Office for permission. 

DTA SALE OF FINISHED GOODS/REJECTS/WASTES/SCRAPS: If permitted in Letter of Permission, the sale of finished goods  to DTA upto 50% of FOB value of exports of the previous  year is  verified and forwarded to Divisional Office. Once permitted,  the duties paid by the unit are verified by the Range. Sale of rejects wastes and scrap arising during manufacturing process to Domestic market is allowed on payment of applicable duties and  such sale shall not exceed 50% limit.  It is also ensured that the quantity of  rejects/waste/scrap arising during the manufacture is  within the SION norms or norms approved Board of Approval and is forwarded to Divisional Office.

DESTRUCTION OF SEMI/ FINISHED GOODS/REJECTS:  In respect of  semi finished goods/goods manufactured/rejects / capital goods/ scrap/ waste/ remnants/ raw materials etc., which are not fit for use it is recommended to Divisional Office for destruction. Once ordered for destruction by Asst Commissioner the goods are destroyed under physical supervision by the Range Officers and proceedings recorded under mahazar.

INTER UNIT TRANSFER:  EOUs are permitted to undertake inter unit transfer of manufactured goods or capital goods to another EOU. Applications for IUT are scrutinized in the Range Office and forwarded to Divisional Office for permission or treating it as intimation on case to case basis. Documents for IUT are treated as export documents and the same procedure in respect of exports is followed.

SUBCONTRACTING: On application made by EOU for subcontracting part of their manufacturing process, the same is verified and forwarded to Divisional Office for permission under job work procedure. It is ensured that the goods are received within the prescribed period. In doubtful cases samples are drawn to ensure that there is no diversion to DTA.

EXTENSION OF WAREHOUSING PERIOD FOR BONDED GOODS:  Where the goods are due for expiry of warehousing period, the application submitted by the Units are scrutinized and goods are verified as to whether the same is in good condition or in use and afterwards the same is sent to Divisional Office for onward submission to the Commissioner of Customs for approval of extension of warehousing period. 

DEBONDING OF GOODS:  Wherever application is received for de-bonding of goods, the same are verified by the Range Officers with regard to Depreciation allowable and rate of duty applicable on the goods. Then the condition of the goods is also verified and request is forwarded to Divisional office for de-bonding of goods. The unit files Ex-bond Bill of Entry and the same is assessed to duty and after payment of duty pass out is given. Duty is collected from date of expiry of warehousing period with interest if warehousing period is expired. It is ensured in the premises that no duty free (bonded) goods are stored and then request of the unit for debonding of premises are recommended. 

BONDING OF ADDITIONAL PREMISES: If the licensee intends to expand their operations they will request for bonding of additional premises.  The Range Officers visit and verify the premises to ensure that the same is safe and secure for storage of duty free bonded goods and to carry in-bond manufacturing activities. After satisfaction the Asst/Dy Commissioner recommends the same to for approval for bonding additional premises. 

DE-BONDING OF PREMISES: On moving to a new-bonded premise the unit may request for de-bonding of the old premises. On receipt of applications in this regard it is verified by the Range Officers and ensured that no duty free (bonded) goods are stored in the said premises and then the request is forwarded to the Divisional office for debonding of premises.

MONITORING OF NFE SCRUTINY OF APRS: It is ensured that the unit is achieving positive net foreign exchange earnings and the Annual Progress Reports filed with CSEZ are scrutinized with Customs Registers.

ISSUE OF SHOW CAUSE NOTICES: If the units have failed to achieve the export obligation, after obtaining concurrence of the Development Commissioner, action is taken to ensure that the unit discharges duty liability.   Wherever required show cause notices are issued to safeguard the interest of revenue on account of non-fulfillment of export obligation as well as any violation of provisions under Customs Act / Notifications / FTP by the units.

RECOVERY OF ARREARS OF REVENUE:  In respect of the confirmed demands necessary action is taken to recover the dues. Range Officers liaison and attend meetings with the Officers of financial institutions (like KSSIDC, KSFC) and Official Liquidator wherever involved, for recovery of arrears of revenue. Officers also arrange for inspection of seized goods by prospective bidders in cases where Disposal Section has taken up Auction and in successful cases, the Officers go to the premises and release the goods. The Officers find and/or visit the premises of the Directors of the Defunct Units for persuasion and service of Notices.

RENEWAL OF LICENCE: The Licence will be initially valid for a period of 5 years. On expiry of the licence period if the unit intends to continue under the scheme they will obtain approval of the Development Commissioner to continue in the scheme and then approach the jurisdictional Asst / Dy Commissioner of Customs to renew the Licence and In-bond Manufacturing Sanction Order. While renewal of licence it is ensured that the duty free goods imported and procured are available in the bonded premises and they are in usable condition till the validity of the permissible warehousing period and requests are forwarded to the Divisional Office for renewal. 

EXIT FROM SCHEME:   Where unit requests for exiting from the scheme, the NFE is verified, applicable duties on capital goods, raw materials, consumables, finished goods, packing materials are collected and recommended to the Divisional Office for issue of no due certificate. 

BRIEF WRITE-UP ON DIVISIONAL PREVENTIVE SECTION  : The Divisional Preventive Section was formed during April 2004 with a strength of One Superintendent (Preventive) and one Inspector working both for Technical and Preventive Sections. .  Thereafter, during April 2005 one Inspector was exclusively posted for Preventive Section and during December 2005 one more Inspector joined Preventive Section.   The jurisdiction of the Divisional Preventive Unit covers the entire jurisdiction of the Customs Division comprising of 06 EOU Ranges and 01 CWC Range geographically falling within the Districts of Bangalore, Kolar & Tumkur.  The Divisional Preventive Unit is engaged in collection of intelligence relating to violation of provisions by the 100% EOUs, STPIs & PBWHs  and verification of records from time to time.  The Divisional Preventive Unit is not dealing with any cases pertaining to Anti-Smuggling & COFEPOSA.  The performance of the Divisional Preventive Unit since inception is as detailed below:- 

Year

No. of Cases Registered

Value involved (Rs.) (apprx.)

Duty involved (Rs.) (apprx.)

2006-2007

13

2541.25 Lakhs

850.27 Lakhs

2007-08(04/07 to 12/07)

02

287.53 Lakhs 

82.32 Lakhs

BRIEF NOTE WORK DONE IN EOU RANGES:   

  LICENSING: The work relating to EOUís begins with issue of Private Bonded Warehouse License and In Bond Manufacturing Sanction Order under Section 58 & 65 of Customs Act, 1962. On receipt of application from EOU unit, the premises is verified by the jurisdictional Range Officers. The premises is verified whether it is safe and secure for storing  duty free goods capital goods and raw materials and to carry out in-bond manufacturing activity . The documents submitted by the unit is verified and then the said License and In-bond Manufacturing Sanction Orders are issued by the jurisdictional Asst/Dy Commissioner, in charge of Customs Division.

BONDING OF GOODS : After issue of licence/order, the unit has to furnish B.17 Bond with Bank Guarantee / Solvency Certificate  to cover the procurement/purchase of Capital goods and raw materials approved by CSEZ. Thereafter the unit may start procuring/sourcing of imported/indigenous capital goods and raw materials which are  listed in Annexure to Notification Nos. 52/2003 Cus dated 31/3/2003 & 22/2003 CE dated 31/3/2003. A procurement certificate or block transfer is issued for importing of goods without payment of duty and Certificate in form CT 3 is issued for indigenous procurement of  goods without payment of duty  by the  jurisdictional Superintendent. The goods so received on importation are bonded in the warehouse within 24 hours of its receipt. On receipt of request for bonding of duty free goods from the unit the Range Superintendent orders for open examination of the packages / containers   and after examination by Inspector, the goods are bonded and re-warehousing certificate is issued. The receipts of goods received from local market are warehoused and intimation under D3 is filed by the party within 24 hours. The ARE 3 sent alongwith goods are signed accordingly by the Range Inspector and sent to the Supplying unit. In case of shortages the units are directed to pay duty.

After the goods are bonded  continuous monitoring is done to ensure that the capital goods are put in to use within one year of bonding and raw-materials within 3 years. If there is any violation duty will be collected along with interest.

EXPORT: The unit has to intimate the date of start of commercial production. Thereafter the unit can undertake exports under physical supervision, by filing Shipping Bill with Invoice and packing list. The Range Superintendent will assess the shipping Bill in advance. The Inspector then verifies the cargo for export and after duly satisfying on comparison with the packing list will seal the packages or container and reports accordingly.   The duplicate copy of the Shipping Bill is sent to the port of shipment in a sealed cover. After export a proof of export is filed by the unit, which is verified.  It is also ensured that the units receive export realization. 

EXPORTS THROUGH SELF SEALING : In respect of Units which have opted for self sealing the Shipping Bill is assessed by the Superintendent and the invoice is verified by the Inspector. The container/packages are sealed by the person authorized by the unit. 

THIRD PARTY EXPORTS : If the party intends to export the goods through third party, the application filed by the party will be verified and permission will be given by the jurisdictional Asst/Dy Commissioner after ensuring that  disclaimer certificates are given by the third party and  there is no duplication in a ailment of export benefits.

RE-EXPORT : The units are also allowed to re-export defective capital goods / spares for repair and return or on replacement basis and also in cases of unutilized raw materials. Such requests by the party are scrutinized on case to case basis and in respect of eligible cases requests are forwarded to the Divisional Office for permission.  

DTA SALE OF FINISHED GOODS/REJECTS/WASTES/SCRAPS: If permitted in Letter of Permission, the sale of finished goods  to DTA upto 50% of FOB value of exports of the previous  year is  verified and forwarded to Divisional Office. Once permitted,  the duties paid by the unit are verified by the Range. Sale of rejects wastes and scrap arising during manufacturing process to Domestic market is allowed on payment of applicable duties and  such sale shall not exceed 50% limit.  It is also ensured that the quantity of  rejects/waste/scrap arising during the manufacture is  within the SION norms or norms approved Board of Approval and is forwarded to Divisional Office. 

DESTRUCTION OF SEMI/ FINISHED GOODS/REJECTS:  In respect of  semi finished goods/goods manufactured/rejects / capital goods/ scrap/ waste/ remnants/ raw materials etc., which are not fit for use it is recommended to Divisional Office for destruction. Once ordered for destruction by Asst Commissioner the goods are destroyed under physical supervision by the Range Officers and proceedings recorded under mahazar.  

INTER UNIT TRANSFER:  EOUs are permitted to undertake inter unit transfer of manufactured goods or capital goods to another EOU. Applications for IUT are scrutinized in the Range Office and forwarded to Divisional Office for permission or treating it as intimation on case to case basis. Documents for IUT are treated as export documents and the same procedure in respect of exports is followed.

SUBCONTRACTING:  On application made by EOU for subcontracting part of their manufacturing process, the same is verified and forwarded to Divisional Office for permission under job work procedure. It is ensured that the goods are received within the prescribed period. In doubtful cases samples are drawn to ensure that there is no diversion to DTA.

EXTENSION OF WAREHOUSING PERIOD FOR BONDED GOODS: Where the goods are due for expiry of warehousing period, the application submitted by the Units are scrutinized and goods are verified as to whether the same is in good condition or in use and afterwards the same is sent to Divisional Office for onward submission to the Commissioner of Customs for approval of extension of warehousing period.

DE-BONDING OF GOODS : Wherever application is received for de-bonding of goods, the same are verified by the Range Officers with regard to Depreciation allowable and rate of duty applicable on the goods. Then the condition of the goods are also verified and request is forwarded to Divisional office  for de-bonding of goods. The unit files Ex-bond Bill of Entry and the same is assessed to duty and after payment of duty pass out is given. Duty is collected from date of expiry of warehousing period with interest if warehousing period is expired. It is ensured in the premises that no duty free (bonded) goods are stored and then request of the unit for de-bonding of premises are recommended. 

BONDING OF ADDITIONAL PREMISES: If the licensee intends to expand their operations they will request for bonding of additional premises.  The Range Officers visit and verify the premises to ensure that the same is safe and secure for storage of duty free bonded goods and to carry in-bond manufacturing activities. After satisfaction the same is recommended to for approval for bonding additional premises by the Asst/Dy Commissioner. 

DE-BONDING OF PREMISES :   On moving to a new bonded premises  the unit may request for de-bonding of the old premises. On receipt of applications in this regard it is verified by the Range Officers and ensured that no duty free (bonded) goods are stored in the said premises and then the request is forwarded to the Divisional office for debonding of premises.

MONITORING OF NFE SCRUTINY OF APRS: It is ensured that the unit is achieving positive net foreign exchange earnings and the Annual Progress Reports filed with CSEZ are scrutinized with Customs Registers.

ISSUE OF SHOW CAUSE NOTICES: If the units have failed to achieve the export obligation, after obtaining concurrence of the Development Commissioner, action is taken to ensure that the unit discharges duty liability.   Wherever required show cause notices are issued to safeguard the interest of revenue on account of non-fulfillment of export obligation as well as any violation of provisions under Customs Act / Notifications / FTP by the units.

RECOVERY OF ARREARS OF REVENUE:  In respect of the confirmed demands necessary action is taken to recover the dues. Range Officers liaison and attend meetings with the Officers of financial institutions (like KSSIDC, KSFC) and Official Liquidator wherever involved, for recovery of arrears of revenue. Officers also arrange for inspection of seized goods by prospective bidders in cases where Disposal Section has taken up Auction and in successful cases, the Officers go to the premises and release the goods. The Officers find and/or visit the premises of the Directors of the Defunct Units for persuasion and service of Notices.

RENEWAL OF LICENCE: The Licence will be initially valid for a period of 5 years. On expiry of the licence period if the unit intends to continue under the scheme they will obtain approval of the Development Commissioner to continue in the scheme and then  approach the jurisdictional Asst / Dy Commissioner of Customs  to renew the Licence and In-bond Manufacturing Sanction Order. While renewal of licence it is ensured that the duty free goods imported and procured are available in the bonded premises and they are in usable condition till the validity of the permissible warehousing period and requests are forwarded to the Divisional Office for renewal.

EXIT FROM SCHEME:  Where unit requests for exiting from the scheme, the NFE is verified, applicable duties on capital goods, raw materials, consumables, finished goods, packing materials are collected and recommended to the Divisional Office for issue of no due certificate.

 
 
 

CUSTOMS DIVISION

Sri.G.SRINIVASAN, I.R.S.
ASSISTANT COMMISSIONER OF CUSTOMS, CUSTOMS
DIVISION,29/2, BASAVESHWARA BUILDING
CRESCENT ROAD,
BANGALORE-560 001N
Phone Number : 080-22261326/22386856/25520169
Fax Number : 080-22380627
e-mail : cusdiv_blr@hotmail.com