Circular No 50 dt 29th January 2009



Circular No 50 dt 29th January 2009



(Ministry of Commerce & Industry, Govt. of India)
705, Bhikaji Cama Bhawan, Bhikaji Cama Place, New Delhi 110066
Tel : 26167042, 26165805 Fax : 26165538, Email :
L.B. Singhal
Director General


Sub : Chief Commissioner of Customs, Mumbai, issues directions to
discontinue practice of asking for 1% RD Cash deposit for
import by EOUs
We had received a representation from M/s Pentair Water, an EOU in
Goa, informing that Customs authorities in JNPT are asking for 1% RD Cash
Deposit on imports to be effected by 100% EOUs. I had taken up this matter
with Mr. R. Gopalan, Additional Secretary, Ministry of Commerce & Industry.
Mr. R. Gopalan had taken up this issue with the Chief Commissioner of
Customs, Mumbai. Mr. N. Sasidharan, Chief Commissioner of Customs, JNPT,
vide his letter F.No. S/V-30-Misc-180/2008-CCO M.II dted 13.1.2009, addressed
to Mr. R. Gopalan, has informed that practice of asking for 1% RD cash deposit
from EOUs is now been discontinued. A copy of this letter is enclosed alongwith.
This is for your information.

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Tel : 2724 2393/401 Fax : 2724 2402
Email :
F.No. S/V-30-Misc-180/2008-CCO M.II Mumbai, 13th January, 2009

Dear Shri Gopalan,
Sub : Depositing 1% RD Cash deposit to safeguard revenue loss – reg
Please refer to your letter DO No. 106/Nov/AS(RG)/2008 dated 27th
November, 2008 on the above subject.

2. I have looked into the matter. There was a practice of taking 1% duty
deposit in terms of the CBEC instruction in force in cases where the value of
goods supplied by related persons was being investigated by the Department.
The matter has been reviewed and the practice of 1% duty has been
discontinued in respect of 100% EOUs who are eligible to import their
entitlements free of duty. Accordingly the assessments are now being made
without any extra deposit of revenue.

With best regards,
Yours sincerely,
Shri R. Gopalan,
Additional Secretary,
Ministry of Commerce & Industry
Department of Commerce,
Udyog Bhawan
New Delhip


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siyaram sharma: dear Sir i want to know that under EOU if 1% RD is Discontinued under Circular no. 50 dated.29-01-2009, is it need to declare SVB file no in BOE. kindly check and confirm the same. regards Siyaram

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