Circular No. 2/95
dated 11/1/95
F.No. 605/261/94-DBK
Government of India
Ministry of Finance
Department of Revenue, New Delhi

Subject :    Issue directed to draw your attention to Notification No. 199/ 94-Customs dated 23rd December, 1994 – regarding.

I am directed to draw your attention to Notification No. 199/94-Customs dated the 23rd December, 1994 which amends Notification No. 203/92-Cus. dated the 19th May, 1994.

2.    Notification No. 199/94-Customs extends the benefit of duty free imports of inputs specified in the input-out norms in the Export Import Policy for manufacturing of writing instruments, considering all types of writing instruments as a single export product under Value Based Advance Licensing Scheme. Kind attention is also drawn to the Notification No. 133/93-Cus. dated the 18th June, 1993 which amended Notification No. 203/92-Cus. extending similar benefit to electronic goods. The present amendment has been made to extend the flexibility of duty free concession to all goods permitted for imports in the input-out norms as required by the the writing instruments industry without direct nexus between the export product and the imported materials. A copy of the Notfn. No.199 / 94-Customs dated the 23rd December, 1994 is enclosed1 herewith.

3.    Notification No. 199/ 94-Cus. dated 23rd December, 1994 also imposes a condition that endorsement of transferability or disposal of material shall be allowed in respect of licences issued for the export of all kinds of writing instruments (including gift sets and refills/ nibs) on fulfillment of export obligation only in favour of manufacturers of writing instrument. In other words. the import goods are subject to actual user condition.

4.    The field officers, in view of the said condition are, therefore, required to ensure that the endorsement of transferability or disposal of material is in accordance with the condition stipulated in the said notification. In the event it comes to the notice of the field formation that the transferred material or licence is in the hands of a person other than the manufacturer of the writing instruction should be taken besides disallowing duty concession/ demand of duties and the matter also brought to the notice of the licensing authority for appropriate action by them.

5.    These instructions may please be brought to the notice of the field formation and trade interests suitably informed. Copies of instructions issued by you may be sent to the Ministry and also DGIACCE.

(P.K. Khera)
Senior Technical Officer (DBK)

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