Operational problems being faced by EOU in GST regime consequent to amendment in Notification no. 52/2003-Customs dated 31-3-2003

Continuity bond recognition: EOU bond treated as continuity bond; inter unit transfers invoiced with CST and customs implications.

The B 17 running bond will serve as the continuity bond for EOUs under the Import of Goods at Concessional Rate of Duty rules; units must provide estimated quantities and values of imports for up to one year and may amend those submissions; during the transitional period units may follow Rule 5 procedures or use procurement certificates; inter unit transfers are invoiced with applicable CST and without upfront customs duty, suppliers must endorse the customs duty exemption availed and recipients are liable to pay basic customs duty when goods or finished products are cleared for domestic tariff area, and procurement certificates are not required for inter unit transfers.