Duty-free inputs for capital goods: manufactured in EOU must be bonded and are liable to duty on clearance. Duty-free inputs may be used for manufacture of finished goods and for manufacture of capital goods for captive use within an EOU. Capital goods produced from duty-free inputs must be accounted for and bonded under the usual into-bond procedure; their value for bonding and any later assessment on clearance, debonding, or exit will be determined by the computed value method under Customs Valuation Rules. These goods will be liable to duty when cleared outside the unit or debonded, and the excise exemption referenced in the excise notification does not apply.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Duty-free inputs for capital goods: manufactured in EOU must be bonded and are liable to duty on clearance.
Duty-free inputs may be used for manufacture of finished goods and for manufacture of capital goods for captive use within an EOU. Capital goods produced from duty-free inputs must be accounted for and bonded under the usual into-bond procedure; their value for bonding and any later assessment on clearance, debonding, or exit will be determined by the computed value method under Customs Valuation Rules. These goods will be liable to duty when cleared outside the unit or debonded, and the excise exemption referenced in the excise notification does not apply.
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