Elcina Resents New Excise Rules

The electronic component industry will have to cope with unnecessary financial burden and delay in the release of materials as a result of the new excise procedures, N Ramachandran, association president, said.

This would consequently lead to the levying of demurrage charges on import materials at customs.

For the import of raw materials that go into electronic components, an importer is required to first apply to central excise for a registration certificate.

Following this, he will have to make an endorsement application to the assistant commissioner of central excise each time he wants to clear a consignment of raw materials from customs.

In addition, central excise has to be furnished with a bond for the differential duty amount, and the importer will have to maintain a running bond account with the authorities for a year. The importer is also required to intimate central excise within two days of the arrival of the consignment.

The new excise rules will create an additional burden on manufacturing units since most of the raw materials required by the industry are not manufactured in India and have to be imported, Ramachandran said.