Procedure - Duty free capital items

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B-17 bonds are executed by 100% EOU units.The duty forgone in case of raw materials(imported/excise duty free) is debited from the bond & it is credited when the materials are consumed.What are the procedures to be followed in case of duty free Capital items.

AI Summary

Handling Duty-Free Capital Items in 100% EOU: B-17 Bond Procedures and Duty Foregone Debits Explained A discussion on duty-free capital items in a 100% Export-Oriented Unit (EOU) context addresses the procedure for handling B-17 bonds. When raw materials are imported duty-free, the duty foregone is debited from the bond and credited upon consumption. For capital goods, one response states that the bond should not be discharged as long as the goods remain within the unit. Another response indicates that for duty-free capital items, 25% of the duty foregone is debited in the B-17 bond, with credit given only when the capital goods are debonded.