REGD. NO. D L.-33004/99 The Gazette of India
EXTRAORDINARY
PART II—Section 3—Sub-section (i)
PUBLISHED BY AUTHORITY
No. 183] NEW DELHI, FRIDAY, APRIL 19, 2002/CHATTRA 29,1924.
1317 GI/1002
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MINETRYOFFINANCE
(Department of Revenue)
NOTIFICATION
.NewDelhi,the 19thApril, 2002 f ,
NO.43/2002-CUSTOMS
G.S.R. 292 (E).—In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts materials imported into India, against an Advance Licence issued in terms of sub-paras (a) and (b) of paragraph 4.1.1 of the Export and Import Policy (hereinafter referred to as the sai&^liccnce), from the whole of the duty of customs leviable thereon which is specified in the First Schedule to the Customs.Tariff Act, 1975 (51 of 1975), and from the whole of the additional duty, safeguard duty and anti-dnmping duty leviable thereon respectively under sections 3, 8 and 9 A of the said Customs Tariff Act, subject to the following conditions namely :—
(i) that the description, value and quantity of materials imported are covered by the said licence and the said licence is produced before the proper officer of customs at the time of clearance for debit;
(ii) that where import takes place after fulfilment of export obligation, the shipping bill number(s) and date(s) and quantity and FOB value of the resultant product exported are endorsed on the said licence :
Provided that where import takes place before fulfilments of export obligation, the quantity or FOB of the resultant product to be exported are endorsed on the said licence;
(iii) that the importer at the time of clearance of the imported materials executes a bond with such surety or security and in such form and for such sum as may be specified by the Assistant Commissioner ofcustoms or Deputy Commissioner of customs binding himself to pay on demand an amount equal to the duty leviable, but for the exemption, on the imported materials in respect of which the conditions specified in this notification have not been complied with, together with interest at the rate of twenty-four percent per annum from the date of clearance of the said materials :'
Provided that bond shall not be necessary in respect of imports made after the discharge of export obligation in full,
(iv) that the imports and exports are undertaken through sea ports at Mumbai, Kolkata, cochin, Magdalla, Kakinada, Kandla, Mangalorc, Marmagoa, Madras, Nhava Sheva, Paradeep, Pipavav, Sikka, Tuticorin, Visakhapatnam, Dahej, Mundhra, Nagapattinam and Okha or through any of the airports at Ahmedabad, Bangalore, Bhubaneswar, Mumbai, Kolkata, Coimbatore, Delhi, Hyderabad, Jaipur, Madras, Srinagar, Trivandrum, \fcranasi, Nagpur and Cochin or through any of the Inland Container Depots at Agra, Bangalore, Coimbatore, Delhi, Faridabad, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar, Kanpur, Ludhiana, Moradabad, Nagpur, Pimpri (Pune), Pitampur (Indore), Surat, Tirupur, Varanasi, Nasik, Rudrapur (Nainital), Dighi (Punc); Vadodara, Daulatabad(WanjarwadiandMaliwada),Walaj (AurHngabad),Anaparthy(Andhra Pradesh), Salem, Malanpur, Singanalur, Jodhpur, Kota, Udaipur, Ahmedabad, Bhiwadi, Madurai, Bhilwara, Pondicheny and Garni Harsaru or through the Land Customs Station at Ranaghat and Singhabad:
Provided that the commissioner of Customs may by special order and subject to such conditions as may be specified by him, permit import and export from any other Seaport/Airport/Inland Container Depot or through any Land Customs Station;
(v) that the export obligation as specified in the said licence (both in value and quantity terms) is discharged within the period specified in the said licence or within such extended period as may be granted by the Licensing Authority by exporting resultant products, manufactured in India which are specified in the said licence and in respect of which facility under rule 18 or rule 19 of the central Excise rules, 2002 has not been availed:
.
,i
Provided that an Advance Intermediate Licence holder shall discharge export obligation by supplying the resultant products to ultimate exporter in terms of sub-para (b) of para 4.1.1. of the said Export and Import Policy; • (vi) that the importer produces evidence of discharge, of export obligation to the satisfaction of the Assis- tant Commiossiner of Customs or Deputy Commissioner of Customs within a period of 30 days of the expirty of period allowed for fulfilment of export obligation, or within such extended period as the said Assistant Commiossiner of Customs or Deputy Commissioner of Customs may allow;
4_ THE GAZETTE OF INDIA: EXTRAORDINARY [PART II—Ssc.3(.,.
(vii) that the said Licence and the materials shall not be transferred or sold;
(viii) that in relation to the said Licence issued to a Merchant Exporter,—
(a) the name and address of the supporting manufacturer is specified in the said licence and the bond required to be executed by the importer in terms of condition (ii) shall be executed jointly by the Merchant Exporter and the supporting manufacturer binding themselves jointly and serveTally to comply with the conditions specified in this notifi- cation; and
(b) exempt materials are utilised in the factory of such supporting manufacturer for discharge of export obligation and the same shall not be transferred or sold or used for any other purpose by the said Merchant Exporter.
• 2 Where the materials are found defective or unfit for use, the said materials may be re-exported back to the foreign supplier within three years from the date for payment of duty on the importation thereof:
Provioded that at the time of re-export the materials are identified to the satisfaction of the Assistant Commiossiner of Customs or Deputy Commissioner of Customs as the materials which were imported. Explanation.-1^ In this notification,—
(i) "Export Import Policy" means the Export and Import Policy 2002—2007, published vide notification of the Government of India in the Ministry of Commerce No. 1/2002—2007 dated the 31st March, 2002;
(ii) "Licensing Authority" means the Doirector General of foreign Trade appointed under section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officer authorised by him to grant a licence under the said Act.
(iii) "Materials" means—
(a) raw materials, components, intermediates,. consumables, catalysts computer software and parts which are required for manufacture of resultant product;
(b) mandatory spares within a value limit of 10 per cent of the value of the licence which arc required to be exported alongwith the resultant product;
(c) fuel, oil and catalysts required for manufacture of resultant product, and
(d) packing materials requiredforpackagingofresultantproduct.
- • [F.NO.605/201/2001-DBK1 ALOKJHA, Under Secy. ↩
5 6 THE GAZETTE OF INDIA: EXTRAORDINARY [PART II—SEC. 3 (i)]
NOTIFICATION
New Delhi, the 19th April, 2002
No-44/2002-CUSTOMS
G.S.R. 293 (E).—In exercise ofthc powers conferred by sub-section (l)ofSection 25 offhe Customs Act, 1962 (32 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts goods specified in the Table annexed hereto from so much ofthe duty of customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as is in excess of the amount calculatd at the rate of five percent ad valoram and from the whole of the additional duty and special additional duty leviable theron respectively under sections 3 and 3 A of the said Customs Tariff Act.
_7 2 The exemption contained in above paragraph, shall be subject to the following conditions, namely:—
(1) the goods imported are covered by a valid licence issued under the Export Promotion Capital Goods (EPCG) Scheme in terms of Chapter 5 of the Export and Import Policy permitting import of goods at the rate of five per cent duty and fh esaid licence is produced for debit by the proper officer of the customs at the time of clearance;
Provided that for the import of spare parts, the validity period of the licence shall be deemed to be the penod permitted for fulfilment of the export obligation in full;
(2) the importer executes a bond in such form and for such sum and with such surety or security as may be specified by the Assistant Commissiner of Customs or Deputy Commissioner of Customs bindings himself to fulfil export obligation equivalent to five times the CIF value of the goods imported on FOB basis, as specified in the licence, or for such higher sum as may be fixed by the licensing authority, within a period of eight years from the date of issue of licence, in the following proportions, namely:—
Period from the date of issue of licence
Proportion of total export obligation S.No.
1
2
3
1.
Block of 1st and 2nd year
HI
2
Block of 3rd and 4th year
15%
3.
Block of 5th and 6th year
35%
4.
Block of 7th and 8th year
50%:
Provided that where the
Period from the date of issue of licence
Proportion of total export obligation S.No.
2
1
3
1
Block of 1st, 2nd, 3rd, 4th and 5lh year
m
- -2
Block of 6th, 7th and 8th year
15%
3.
Block of 9th and 10th year
35%
4..
Block of 1 lth and 12th year
50%.
rroviaea runner mai cxpon uongauon oi a particular DIQCK may DC sei on against me excess exports made in the said preceding blocks ;
(3) the importer produces within 30 days from the expiry of each block from the date of issue of licence or within such extended penod as the Assistant Commissioner of Customs or Deputy Commissioner of Customs may allow, evidence to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs showing the extent of export obligation fulfilled, and where the export obligation of any particular block is not fulfilled in terms of the preceding condition, the importer shall within three months from the expiry of the said block jjay duties of customs of an equal amount equal to that portion of duties leviable on the goods but for the exemption contained here in which bears the same proportion as the unfulfilled portion of the export obligation bears to the total export obligation together with interest at the rate of 24% per annum from the date of clearance of the goods;
(4) the capital goods imported, assembled or manufactured are installed in the importer's factory or premises and a certificate from the jurisdictional Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise or an independent Chartered Engineer, as the case may be, is produced confirming installation and use of capital goods in the importer's factory or premises, within six months from the date of completion of imports or within such extended period as the said Assistant Commissioner of Customs or Deputy Commissioner of Customs may allow:
Provided that m the case of:
(i) manufacturer exporter and merchant exporter having supporting manufacturer(s) or vendor(s), (ii) import of irrigation equipment for use in contract farming for export of agricultural productsrand (in) importer rendering services,
the capital goods may be installed at the factory or premises of such other person whose name and address are endorsed on the licence referred to in condition (i) and where the bond for full difference of duty, if necessary, in terms of condition (2), with a bank guarantee is executed by the importer and such other person binding themselves jointly and severally to fulfil the export obligation and all other conditions of this notification and to pay duty with interest in case of default;
8 THE GAZETTEOFINDIA: EXTRAORDINARY (PART H—SEC. 3 (i)J (5) notwithstanding anything contained in condition (3), where the Licensing Authority grants an extension of block-wise period for any block(s) or overall period of fulfilment of export obligation upto a period of two years or rogularisation of shortfall in export obligation, not exceeding five percent of such export obligation, the said block-wise period or overall period of export obligation may be extended and the said shortfall in export obligation be condoned by the Assistant Commissioner of Customs or Deputy Commissioner of Customs:
Provided that where the CIF value of licence isnot less thanRs. 100 crores extension of overall period of export •bligation shall not be allowed;
3. where the goods are found defective or unfit for use, the said goods may be re-exported back to the foreign supplier within 3 years from the date of payment of duty on the importation thereof:
Provided that at the time of re-export the goods are identified to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs as the goods which were imported.
TABUS,
Description of goods
S.No.
0
Capital goods.
Capital goods in SKD/CKD condition to be assembled into capital goods by the importer
(1) L 2.
Components of capital goods required for assembly or manufacture of capital goods by the importer.
3. 4. Spare parts not exceeding twenty per cent of toe value of goods specified at serial Nos. 1, 2 and 3 as actually imported and required for maintenance of capital goods so imported, assembled, or manufactured.
Explanation:—In this notification,—
(1) "Capital Goods" means any plant, machinery, equipment and accessories required for—
- (a) manufacture or production of other goods, including packaging machinery and equipments, refractories, refrigeration, equipment, power generating sets, machine tools, catalysts for initial charge, and equipment and instruments fortesting, research and development, quality and pollution control;
(b) use in manufacturing, mining, agriculture, marine, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, viticulture and sericulture;
(c) rendering services;
(2) "Export and Import Policy" means the Export and Import Policy 2002—2007 published vide notification of the •( Government of India in the Ministry of Commerce, Nor 1/2002—2007, dated the 31st March, 2002; v (3) "Licensing Authority" means the Director General, Foreign trade appointed under section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officer authorised by him to grant a licence under the said Act; (4) "export obligation",—
(i) in relation to importers other than those rendering services, means export, to a place outside India, of products manufactured with the use of capital goods imported, assembled or manufacture* in terms of this notification;
Provided that export obligation may also be fulfilled by
(a) export of same product capable of being manufactured with the use of said capital goods; or (b) export of same product manufactured, in different units of the licence holder; or
(c) through third party exports made by an exporter or manufacturer on behalf of the licence holder by exporting the same product and in such cases, inter-alia the Shipping bills shall indicate name of both the third party and licence holder, or
(d) making supplies of same products in terms of sub-paras (a) (b) (d) (e) (f) (g) (h)(i) and(j) of paragraph 8.2 of the Export and Import Policy,
(ii) in relation to importers rendering services, means, receiving payments in freely convertible foreign corrency for services rendered through the use of such capital goods.
(F.No. 605/201/2001 -DESK]
-ALOKJHA, Under Secy.