This notification exempts material imported against a Value Based Advance license issued on or after 01.04.1995

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

31-3-1995

Notification No. 79/95-Customs

Value Based Advance Licence – issued on or after 1-4-1995 – material imported under

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 a Value Based Advance Licence (hereinafter referred to as the said licence) issued on or after 1st April, 1995 in terms of paragraph 49 of the Export and Import Policy 1 April 1992 – 31 March, 1997, 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) subject to the following conditions, namely.

(i) that the materials imported are covered by a Value Based Duty Exemption Entitlement Certificate (hereinafter referred to as the said certificate), issued by the Licensing Authority on or after 1st April, 1995 in the form specified in the Schedule annexed to this notification in respect of the value, description, quality and technical characteristics;

(ii) that the said licence and the said certificate are produced before the proper officer of customs at the time of clearance for debit;

(iii) that the importer at the time of clearance of the imported materials –

(a)               *                 *                 *                    *                                    *

(b) executes a bond with such surety or security and in such form and for such sum as may be specified by the Assistant Collector of Customs binding himself to pay on demand, an amount equal to the duty leviable on the imported materials 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 24% per annum from the date of clearance of the imported materials.

Provided that the bond shall not be necessary in respect of imports made after discharge of export obligation in full;

(iv) that the imports and exports are undertaken through sea ports at Mumbai, Calcutta, Cochin, Magdalla, Kakinada, Kandia, Mangalore, Marmagoa, Madras, Nhava Sheva, Paradeep, Pipavav, Sikka, Tuticorin, Visakhapatnam, Dahej, Nagapattinam , Okha and Mundhra or through any of the airports at Ahmedabad, Bangalore, Bhubaneshwar, Mumbai, Calcutta, Coimbatore, Delhi, Hyderabad, Jaipur, Madras, 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 and Madurai 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 through any other Seaport, Airport, or Inland Container Depot, or through a Land Customs Station.

(v) that the export obligation is discharged, within the period specified in the said certificate or within such extended period as may be granted by the Licensing Authority, by exporting goods manufactured in India and the importer produces the said certificate together with evidence of discharge of export obligation to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs within a period of 30 days of the expiry of period allowed for fulfillment of export obligation or within such extended period as the said Assistant Collector of Customs may allow;

(vi) exempt materials shall not be disposed of or utilized in any manner, except for utilization in discharge of export obligation, before the export obligation under the said licence has been discharged in full.

Provided that Acetic Anhydride, Ephedrine, Pseudoephedrine, Vitamins, Pen-G and their derivatives in respect of which the benefit of this notification is claimed shall be utilised by the importer in his own factory or in the factory of any other manufacturer indicated in the said certificate even after discharge of export obligation;

(vii) where benefit of the notification is sought by a person other than the licencee, such benefit shall be allowed against the said licence and the said certificate only if it bears endorsement of transferability by the Licensing Authority.

Provided that benefit of this notification shall not be allowed to a transferee of licence for import of Acetic Anhydride, Ephedrine and    Pseudoephedrine;

(viii) notwithstanding anything contained in conditions (vi) and (vii) above, the endorsement of transferability or disposal of materials shall be allowed in respect of licences issued for the export of all kinds of writing instruments (including gift sets and refills/nibs) on fulfilment of export obligation only in favour of manufacturer of writing instruments.

Explanations. – In this notification, –

(i) “Export and Import Policy 1 April, 1992 – 31 March, 1997” means the Export and Import Policy 1 April, 1992 – 31 March.1997 (Revised Edition. March 1995) published vide Notification of the Government of India in the Ministry of Commerce No. 1 (RE-95)/92-97 dated the 31st March, 1995.

(ii) “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 authorised by him to grant a licence under the said Act;

(iii) “materials” means, –

(a) raw materials, components, intermediates, consumables, computer software and parts required for manufacture of export product specified in Part “E” of the said certificate (hereinafter in this Explanation, referred to as the export product).

Provided that in the case of electronic goods and all kinds of writing instruments (including gift sets and refills/nibs), all export items covered by one serial number in the Standard Input Output and Value Addition norms as contained in Handbook of Procedures, 1992-97, Volume-11, published, vide Public Notice No. 121 (PN)/92-97, dated the 31st March, 1993, of the Government of India in the Ministry of Commerce, shall be deemed to be single export product.

Provided further that the benefit of this notification shall apply to import of Acetic Anhydride only against licences, together with the quantity required for manufacture of the export product mentioned therein, issued with the approval of Advance Licensing Committee in the office of the Director General of Foreign Trade;

(b) mandatory spares, within a value limit of 5% of the value of the licence, which are required to be exported alongwith the export product; and

(c) packaging materials required for packing of export product.

THE SCHEDULE
VALUE BASED DUTY EXEMPTION ENTITLEMENT CERTIFICATE

I. IMPORT

(This consists of….. pages)
Sl. No……. (IMP) Date of issue…..
Port of Registration
Issued to

……………………………………………………………………………….. (name and full address of
………………………………………………………………………………… the licencee)
………………………………………………………………………………….

Materials imported against Licence No. ….dated…… issued by…………. to the above importer and covered by the list of materials specified in list (a) of Part “C” of this Certificate would be eligible for exemption from Basic Customs duty subject to the conditions specified in the notification of the Government of India, Ministry of Finance, Department of Revenue No. /95-Customs, dated the ………………….

The importer shall make the exports in terms of the said Notification within …… months from the date of issue of licence.
A bond in terms of the said notification shall be executed before clearance of the goods from the customs.

Signature
Seal of licensing authority
date

PART – A
Names and addresses of the factories where the resultant product for export are manufactured.

PART-B
Names and addresses of factories where the ancillaries to the resultant products for export are manufactured.

ART -C
Lists of items of import

(a)   ITEMS TO BE IMPORTED UNDER THIS CERTIFICATE

Total value =

(b) OTHER IMPORTED ITEMS TO BE USED IN EXPORT PRODUCT

PART -D
Particulars of import of materials

(Parts E and F figure in the Export Part of this DEEC)

PART -G
Duties paid on materials in respect of which the conditions of said Notification are not complied with

VALUE BASED DUTY EXEMPTION ENTITLEMENT CERTIFICATE

II. EXPORT

(This consists of….. pages)
Sl. No…….. (EXP) Date of issue ……
Port of Registration………..
Issued to

…………………………………………………………………………………….(name and full address
……………………………………………………………………………………. of the licencee)

Materials imported against licence No……….dated……. issued by……. to above importer and covered by the list of materials specified in list (a) of Part “C” of this certificate would be eligible for exemption from Basic Customs duty subject to the conditions specified in the notification of the Government of India, Ministry of Finance, Department of Revenue No. /95-Customs, dated the ______.

The importer shall make the exports in terms of the said notification within ……………. months from the date of issue of licence.

A bond in terms of the said notification shall be executed before clearance of the goods from the customs.

Signature
Seal of Licensing authority
date

PART – A
Name and address of the factories where the resultant products for export are manufactured.

PART -B
Name and address of factories where the ancillaries to the resultant products for export are manufactured.

(Parts C and D figures in the Import Part of this DEEC)

PART -E
Resultant products

PART -F
Particulars of exports

PART -H

Statement of Imports and Exports made
Type of Licence:-                                             Licence No.                                             Date.
……………………………                                     ……………………………                             ……………………………
…………………………….                                    ……………………………                             ……………………………

Details of Imports made

Details of Exports made

1. I/We hereby declare that information given in this statement is correct.

Signature……………………………………….
Name of the Signatory……………………..
Designation……………………………………
Full address……………………………………

Certificate by Chartered Accountant/Cost Accountant

I have examined the applicant firm”s actual imports and exports as given above and find them as correct.

Signature………………………………………..
Seal…………………………………………………
Membership No. …………………………….

PART I
Endorsement of Transferability

We have discharged the prescribed export obligation. We request that the licence and the DEEC may please be made transferable.

Signature………………………………………..
Name of the signatory……………………..
Designation……………………………………
Full address…………………………………..

DEEC is made transferable.

Signature
Seal of licensing authority
date

Notification No. 79/95-Cus., dated 31-3-1995 as amended by Notifications No. 147/95-Cus., dated 19-9-1995; No. 24/96-Cus., dated 15-6-1996; No. 90/97-Cus., dated 19-12-1997; No. 49/99-Cus., dated 29-4-1999; No. 121/99-Cus., dated 4-11-1999 and corrected by corrigendum Draw back/P.N./3/99, dated 29-6-1999 and Notfn.No.30/2001 dated 12.03.2001.