Exempts materials against Advance Licence for deemed export

[PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II SECTION 3, SUB-SECTION (I)]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

10th September, 2004

Notification No. 91/2004-Customs  

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 required for the manufacture of the final goods when imported into India, from whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and from the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act, subject to the following conditions, namely :-

(i)  that the importer has been granted Advance Licence for deemed export by the Licensing Authority for import of the said materials in terms of paragraph 4.1.3(c) of the Foreign Trade Policy (hereinafter referred to as the said licence) and the said licence is produced by the importer at the time of clearance for debit by the proper officer of customs;

(ii)  that the said licence contains the endorsements specifying, inter alia,-

(iii)  that the importer executes a bond with such surety or security and in such form and for such sum as may be specified by the  Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be,  binding himself to pay on demand, an amount equal to the duty leviable on the imported material but for the exemption contained herein, in respect of which the conditions specified in this notification have not been complied with together with interest at the rate of fifteen per cent per annum from the date of clearance of materials;

(iv)  that the importer produces evidence of having discharged obligation to supply final goods to the satisfaction of the said Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, within a period of thirty days from the expiry of the period allowed for fulfilment of obligation to supply final goods or within such extended period as the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, may allow; and

(v)  that the exempt materials are utilised for manufacture of final goods and no portion of such materials shall be loaned, transferred, sold or disposed of in any other manner :

 Provided that where final goods in respect of which the said materials have been imported have already been manufactured and supplied as required under this notification, the importer may use the said materials for the manufacture of any other goods;

(vi) that the imports and exports are undertaken through sea ports at Mumbai, Kolkata, Cochin, Magdalla, Kakinada, Kandla Mangalore, Marmagoa, Chennai, Nhava Sheva, Paradeep, Pipavav, Sikka, Tuticorin, Visakhapatnam, Dahej, Mundhra, Nagapattinam, Okha, Jamnagar and Muldwarka or through any of the airports at Ahmedabad, Bangalore, Bhubaneswar, Mumbai, Kolkata, Coimbatore, Delhi, Hyderabad, Jaipur, Chennai, Srinagar, Trivandrum, Varanasi, 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 (Pune), Vadodara, Daulatabad (Wanjarwadi and Maliwada), Waluj (Aurangabad), Anaparthy (Andhra Pradesh), Salem, Malanpur, Singanalur, Jodhpur, Kota, Udaipur, Ahmedabad, Bhiwadi, Madurai, Bhilwara, Pondicherry, Garhi Harsaru, Bhatinda, Dappar (Dera Bassi), Chheharata (Amritsar), Karur, Miraj, Rewari, Bhusawal, Jamshedpur, Surajpur and Dadri or through the Land Customs Station at Ranaghat, Singhabad, Raxaul, Jogbani, Nautanva (Sonauli), Petrapole and Mahadipur :

  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 through any other sea port, airport or inland container depot or through a land customs station.

2. The said materials required for the manufacture of the final goods, when imported into India and supplied to Export Oriented Unit, Electronic Hardware Technology Park and Software Technology Park, shall be exempted from the whole of the duty of customs leviable thereon, under the First Schedule to the said Customs Tariff Act and from the whole of additional duty, safeguard duty and anti-dumping duty leviable thereon, respectively, under sections 3, 8 and 9A of the said Customs Tariff Act subject to the conditions mentioned in Paragraph 1.

Explanation – For the purposes of this notification

(i)    “Export Oriented Units” has the same meaning as  assigned to it in paragraph 9.24 of the Foreign Trade Policy;

(ii)   “final goods” means –

(iii)  “Foreign Trade Policy” means Foreign Trade Policy 2004-09 published vide notification of the Government of India in the Ministry of Commerce & Industry, No. 1/2004, dated the 31^st August, 2004;

(iv)  “Licensing Authority” means the Director General of Foreign Trade appointed under section 6 of    the Foreign Trade (Development and  Regulation) Act, 1992 (22 of 1992) or an officer authorized by him  to grant a licence under the said Act;

(v) “Materials” means –

H.K. Prasad
Under Secretary to the Government of India.

F. No. 605/40/2003-DBK