EOU scrap disposal limits: excess waste beyond prescribed percentage attracts duty equal to that on the mother material.
Permissible disposal of waste/scrap by 100% EOUs follows Annexure V norms of Appendix 19 of the Import Export Policy, subject to a maximum of 25%. If waste/scrap exceeds 25%, the excess quantity is charged an amount equal to the duty leviable on the mother material from which the scrap arose under the proviso to Section 3 of the Central Excises & Salt Act, 1944.

Import permission for EOU rejects into domestic tariff area allowed subject to unit certification and customs verification procedures.
General permission is granted to import rejects from 100% Export Oriented Units into the Domestic Tariff Area, subject to conditions: the unit must certify that defects were unavoidable due to technology, techniques or materials; goods must be invoiced and stamped as 'REJECTS' at clearance; and the Assistant Collector of Customs and Central Excise must be satisfied of their reject status using buyer quality standards, the manufacturer's internal quality report and any further technical opinion.

Exemption for spare parts of deep sea fishing trawlers affirmed; provisional imports to be regularised under EOU import duty rules.
Spare parts of deep sea fishing trawlers qualify for exemption from import duty where the trawler itself is the production machinery of an Export Oriented Unit; provisional clearances effected after the notification's effective date should be regularised and those assessments finalised accordingly.

EOU scheme: relax space certificate and warehousing formalities, allow liberal extensions and license terms matching export obligations.
The circular directs flexible application of the Warehousing Chapter to 100% EOUs engaged in export production, disallows rigid insistence on a space certificate for movement of imports to EOUs that hold a private bonded warehouse licence, and requires that such licences be issued for the unit's full export obligation period, with liberal consideration of warehousing extensions and restraint in issuing interest demands.

EOU scheme treatment for deep sea trawlers permits duty free import and relaxed bonding with documented base and record rules.
The Board extends the EOU Scheme to deep sea fishing trawlers, allowing duty free import and operation without strict physical bonding; provisional clearances may be regularised. A permanent base of operation must be declared in the Letter of Approval, with a possible second base on written request. The Collector of the permanent base may issue a warehousing licence for on shore bonded spares. The manufacturer must keep inspectable records of duty free imports and catch; agricultural officers must certify exportable catch and monitoring will be by agriculture authorities and the coast guard, while customs will process shipping documents and conduct export and record checks.

Disposal of packing material: non reusable packing may be cleared into the domestic tariff area without customs duty subject to safeguards.
Non reusable packing material used to import duty free goods by export oriented units may be cleared into the Domestic Tariff Area without payment of duty; Collectors may permit clearance of wooden crates, cardboard boxes, gunny bags, waste paper wrappings, PVC bags and similar non durable packing after devising safeguards to ensure the facility is not abused.

Self-removal for 100% EOUs allows relaxed physical customs supervision subject to records, surprise inspections and audits.
The Board permits Self-Removal for 100% EOUs by categorising units: (i) units importing only capital goods may be freed from 100% physical supervision if they maintain suitable records and accept occasional surprise checks and audits; (ii) units with a measurable input-output correlation may rely on utilisation records instead of continuous supervision, subject to verification; and (iii) proximate units may be grouped to share supervisory officers. Collectors must identify eligible units, issue implementation instructions, establish procedures for surprise inspections and periodical auditing, and report actions to the Ministry.

Waiver of interest under Section 61(2) for warehoused capital goods - automatic extensions urged for export obligations.
Waiver of interest under Section 61(2) applies to customs duty on warehoused imports; capital goods imported by Export Oriented Units must be kept in bonded warehouse for the entire export obligation period, and extensions beyond the initial one year warehousing term for such goods should be treated as automatic. Officers are directed to advise Export Oriented Units to apply for longer warehousing extensions and for waiver of interest, following the Board's instructions.

Destruction of EOU manufacturing waste: duty-free clearance allowed for valueless scrap; domestically attributable waste remains dutiable.
100% Export Oriented Units may destroy low value or valueless manufacturing waste and have such destroyed material cleared without payment of customs duty under the statutory clearance provision for refuse, but any portion of waste attributable to manufacture of finished goods cleared for home consumption or released as domestic rejects must be cleared on payment of customs duty in accordance with the statutory provision governing refuse connected to domestic clearance.

Duty exemption for non-reusable packing material allows clearance into domestic tariff area subject to safeguards.
Packing material accompanying duty free imports from Free Trade Zones may be cleared into the Domestic Tariff Area without duty where such material is not durable or suitable for repeated use; durable or re useable items remain liable to duty. Collectors must ensure the material is genuinely non reusable by implementing safeguards to prevent abuse, and a report on the procedure is to be submitted after six months.