Eligibility of reimbursement of custom duty - 100% EOU

[nanda kumar]

Whether 100 % EOU is eligible to be reimbursed the customs duty element included in the input raw material cost but not directly paid by the said 100 % EOU.

[Ravi Chopra]

All is depend on the scheme and option being followed by the EOU. Technically an EOU is entitled to get the benefit of excise duty or customs duty paid on the material procured by the EOU even if such duty has not been paid by the EOU directly.

[Haridas Nair]

The goods are required to be imported directly to the EOU. Therefore, I don't think the CD element will be reimbursible when somebody else has paid the duty, unless the unit falls into granite quarrying, agriculture sector etc.

[RadheyShyam Mangal]

an eou can claim the reimbursement custom duty element included in the input in form of duty drawback on the basis of disclaimer certificate of DTA Supplier .

AI Summary

Eligibility of EOUs for Customs Duty Reimbursement Depends on Scheme; Direct Import Not Always Required A discussion on the eligibility of 100% Export Oriented Units (EOUs) for reimbursement of customs duty included in input raw material costs, but not directly paid by the EOU, received three replies. One response noted that eligibility depends on the scheme and options followed by the EOU, suggesting they are entitled to benefits even if the duty wasn't directly paid. Another reply argued that reimbursement isn't possible unless the goods are imported directly by the EOU, with exceptions for certain sectors. The third response mentioned that EOUs can claim reimbursement through duty drawback with a disclaimer certificate from the Domestic Tariff Area supplier.