The CT-3 of CBEC (Central Board of excise and customs) is one of an important certificate on the basis of which a 100% EOU (Export Oriented Units) can obtain duty free indigenous goods. Basically it is used to obtain goods from MRF without any payment of excise duty. But this certificate is applicable only for specific industries such as EOU, SEZ (Special Economic Zone), Defence etc. EOU Scheme by CBEC (Central Board of Excise and custum) was started in early 1981 which is much more complementary with the SEZ scheme. This certificate is issued by Range Superintendent of Central Excise. In order to be applicable for CT-3 all EOU have to sign a multipurpose bond i.e. B-17 bond. This bond is needed to conduct operations under the supervision of the Custom and Central Excise Department by all EOUs. B-17 bond costs around Rs 100 and more information about precise format are available on various websites.
The certificate involves name of individual along with the address of the office. Ref.No of STPI letter is also mentioned along with date. Issued licence no. along with date and its validity is also filled. F.no and date till it is renewed is filled. Central excise vide registration no. is also entered. Amount executed in bond form B-17 is also mentioned. Information of product such as its description, quantity, rate of duty etc is even given in the certificate. The exact format of CT-3 Certificate is also available on various websites.
The CT-3 is of great significance to EOUs and SEZs. Export to our country from EOUs during 2004-2005 was nearly Rs.36806.17 crores as compared to export of Rs.28827.58 crores gained during 2003-2004. Thus an increment of 27.68% was registered. CT-3 certificate thus greatly affects the export market of EOUs. This growth even motivates foreign investors.
100%EOU is even allowed to sell the goods in local market in order to earn profit but there are certain circumstances that too with the permission of Development Commissioner. Appropriate duty by CBEC (Central Board of Excise and Customs) is also charged for the purpose. The main objective of CT-3 for EOU is to increase export rate and amount, earn foreign exchange and to bring latest technology to the country. It even aims to stimulate direct foreign investment in our country. These will even increase the employment in the country.