Notification No. 78/2006-Customs Duty, Dated; 08 August, 2007

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

Notification No. 78/2006-Customs

Date: 8th of August 2006

G.S.R  (E). – In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) read with sub-section (8) of section 3 of the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the said Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the goods, description of which is specified in column (3) of the Table below and falling within the Heading, sub-heading or tariff item of the First Schedule to the said Act, as are specified in the corresponding entry in column (2) of the said Table, when imported into India from Nepal, from the whole of the additional duty of customs leviable thereon under sub-section (5) of section 3 of the said Act, subject to the conditions specified in the Annexure to this notification.

Table

S. No	Heading, sub-heading or tariff item of the First Schedule	Description of goods
(1)	(2)	(3)
1	0902 40	All goods
2	1516 20	Edible grade vegetable fats and oils and their fractions
3	1702 30	Glucose
4	1704 10 00	All goods
5	1902 19 00	Noodles
6	1905 31 00, 2009 90 00	All goods
7	2106 90 or 3004 90 11	Ayurvedic digestive tablets
8	2515 12	All goods (except travertine)
9	2917 39 20	All goods
10	3203 00	Kattha (Catechu)
11	3301 29	All goods
12	3305 10	All goods
13	3305 90	Hair Oil
14	3306 10 10	Toothpowder
15	3306 10 20	Toothpaste
16	3401 19 42, 3506 91	All goods
17	3805 10	All goods
18	3806 10	Rosin
19	3808 10	Anti-mosquito coils
20	3812 20	All goods
21	3904	Poly Vinyl Chloride (PVC) Resin
22	3917 21	High Density Polyethylene (HDPE) Pipe
23	3921 19 00	Plastic Sheets
24	3923 10 90	Plastic Tube
25	3923 29	Plastic bags
26	3926 90 99	Plastic Container
27	4104 19 00, 4105 30 00	Tanned leather
28	4410 90	Pre-laminated Particle Board
29	4410 90 91	All goods
30	4411 29	Pre-laminated Medium Density Fibre (MDF) Boards
31	4802 69	Writing paper, Printing paper
32	5310 10 13	Hessian fabrics of jute
33	5402 33 00, 5402 42 00, 5402 62 00, 5509 21 00, 5509 22 00, 5509 31 00, 5509 32 00, 5509 41,5509 42, 5509 61 00, 5509 62 00, 5509 69 00	All goods
34	5607 10 10	Twine of jute
35	5701 10 00	Woolen Carpets
36	5703 20	Synthetic carpets
37	6214 20 10	Pashmina Shawl
38	6305 10 40	All goods
39	6405 20 00	Shoes and sandals
40	7210 41 00	All goods
41	7210 49 00	Galvanised Plated sheets
42	7217 20	All goods
43	7304 90 00	Galvanised Iron Pipe
44	7306 90 90	Mild Steel (MS) Black Pipe
45	7313 00 10	All goods
46	7314 19	Knitted Wire
47	7323 93	Stainless Steel Utensils
48	7408 19	Bare Copper Wire
49	7409 21 00, 7409 29 00	Brass Sheet
50	7418 19 22, 7904 00 30	All goods
51	7905 00 30	Zinc Sheet
52	8003 00 40	All goods
53	8413 91	Hand Pump Cylinder
54	8506 80	Dry Cell Batteries
55	8507 90	Battery Separator
56	8544 11 10, 9403 70 00	All goods
57	9701 90	Handicraft items
58	9703 00	Wooden Carved Box

Annexure

Conditions:

(1) The goods are manufactured in Nepal wholly from Nepalese materials or Indian materials or Nepalese and Indian materials; or

(2) The goods   involve a manufacturing process in Nepal that brings about a change in classification at four digit level of the Harmonised Commodities Description and Coding System, different from those, in which all the third country origin materials used in the manufacture of such goods are classified and the manufacturing process is not limited to insufficient working or processing as indicated in the illustrative list below:

(i) operations to ensure the preservation of articles in good condition during transport and storage (e.g., ventilation, spreading out, drawing, chilling, placing in salt, sulphur-dioxide or other aqueous solutions, removal of damaged parts and like operations);

(ii) operations consisting or removal of dust, sifting or screening, sorting, classifying, matching (including the making up of sets), washing, painting, cutting up;

(iii) changes of packing and breaking up and assembly of consignments;

(iv) slicing, cutting, slitting, re-packing, placing in bottles or flasks or bags or boxes or other containers, fixing on cards or boards, etc., and all other packing or re-packing operations;

(v) the affixing of marks, labels or other like distinguishing signs on articles or their packaging;

(vi) mixing of articles, whether or not of different kinds, where one or more components of the mixture do not meet the conditions laid down in para 1 (b) of Protocol to the Article V of the Treaty of Trade between His Majesty”s Government of Nepal and the Government of India to enable them to be considered as manufactured or produced or made in Nepal;

(vii) assembly of parts of an articles to constitute a complete article;

(viii) a combination of two or more operations specified in (i) to (vii) above.

(3)  The importer produces a certificate of origin in the Form indicated below, duly certified by an agency designated by Government of Nepal, in respect of the consignment, to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs, as the case may be, that such goods have in fact been manufactured in Nepal.

FORM OF CERTIFICATE OF ORIGIN

Certificate of origin for exports free of additional duty of customs.

Reference No. ________________

1. Articles consigned from (Exporter”s business name, address):

2. Articles consigned to (Consignee”s name, address):

3. Means of transport and route:

4. Item number (HS Tariff Line):

5. Marks and number of package:

6. Description of Articles:

7. Gross weight or other quantity:

8. Number and date of Invoice together with value:

9. Ex-Factory price* of the articles manufactured in Nepal:

* ‘Ex-factory price’ means the price of the product at the time of the clearance from the factory gate.

10. (i) Whether articles are manufactured in Nepal under Para 1(a) of the Protocol to Article V of the Treaty of Trade (Yes/No):

(ii) If articles are manufactured in Nepal under Para 1 (b) (i) and (ii) of the Protocol to Article V of the Treaty of Trade:

(A) CIF value of materials, parts or produce originating from Non-Contracting Parties (i.e. other than Nepal and India) at the point of entry in Nepal :-

(B) Value of materials, parts or produce of undetermined origin:-

11. Percentage of the sum of the value of col. 10(ii) (A) and (B) to the value of col. 9:

12. Declaration by the exporter:

The undersigned hereby declares that the details furnished above are correct, that the articles are produced in Nepal and that they comply with the Rules of Origin specified in the Treaty of Trade between His Majesty”s Government of Nepal and Government of India.

_____________________

(Place and Date, Signature of authorised signatory)

13. Certification:

It is certified that:

1. The articles have been manufactured in Nepal at a factory situated at _____ (name of place/district) by M/s. ___ (name of the company).

2. The articles involve manufacturing activity in Nepal and that the manufacturing activity satisfies the criteria given in the Protocol to Article V of the Treaty of Trade.

3. The articles in question are not products of third country origin.**

For Government of Nepal
(Place and date,  Signature and Stamp of Certifying Authority)

**For the purpose of the above Item No. 3,  the articles which have undergone a manufacturing process in Nepal as defined in the Protocol to Article V of the Treaty will not be treated as product of third country origin.

14. For official use of Indian Customs:

The consignment has been examined and allowed to be imported into India as it complies with the provisions as stipulated in the Protocol to Article V of the Treaty of Trade between His Majesty”s Government of Nepal and Government of India.

________________________
Signature and Seal of the
Certifying Authority.

Dated:
Place:
(4) The products worked on or processed as a result of which the total value of materials, parts or produce originating from countries other than India or Nepal or of undetermined origin used –

i)	does not exceed seventy per cent. in any time period , which commences on the 6th day of March in  a given calendar year and ends on the 5th day of March of the subsequent calendar year ;  and
iii)	the final process of manufacture is performed in Nepal.

Explanation – For the purpose of this notification, the value of materials, parts or produce originating from countries other than India or Nepal shall be the CIF value at the time of importation of materials, parts or produce, at the point of entry in Nepal, where this can be proven to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs, or the earliest ascertainable price paid for the materials, parts or produce of undetermined origin in Nepal where the working or processing takes place.

F.No 354/113/2002-TRU