Notification No. 230 dated 3^rd April 1986 (As amended by 17/92-Customs dated 7^th January 1992, 142/92-Customs dated 10^th March 1992, 140/94-Customs dated 1^st July 1994, 153/95-Customs dated 27^th October 1995, 54/97-Customs dated 5^th June 1997)

In exercise of the powers conferred by section 157 of the Customs Act, 1962 (52 of 1962) and in supersession of the Project Imports (Registration of Contract) Regulations, 1965, except as respect things done or omitted to be done before such supersession, the Central Board of Excise and Customs hereby makes the following regulations, namely: -

(1)    These regulations may be called the Project Imports Regulations, 1986.

(2)    They shall come into force on the 3^rd day of April 1986.

These regulations shall apply for assessment and clearance of the goods falling under heading No. 98.01 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).

 For the purposes of these regulations:

(a)    �industrial plant� means an industrial system designed to be employed directly in the performance of any process of series of processes necessary for manufacture, production or extraction of a commodity, but does not include -

(i) establishment designed to offer services of any description such as hotels, hospitals, photographic studio, photographic film processing laboratories, photocopying studio, laundries, garages and workshops; or

(ii) a single machine or a composite machine, within the meaning assigned to it, in Notes 3 and 4 to section XVI of the said First Schedule;

(b)    �Sponsoring authority� means an authority specified in the Table annexed to these regulation;

(c)    �substantial expansion� means an expansion which will increase the existing installed capacity by not less than 25 per cent;

(d)    �unit� means any self-contained portion of an industrial plant or any self contained portion of a project specified under the said heading No. 98.01 and having an independent

        function in the execution of the said project.

The assessment under the said heading No. 98.01 shall be available only to those goods which are imported (Whether in one or more than one consignment) against one or more specific contracts, which have been registered with the appropriate Custom House in the manner specified in regulation 5 and such contract or contracts has or have been so registered, -

(i) before any order is made by the proper officer of customs permitting  the clearance of the goods for home consumption;

(ii) in the case of goods cleared for home consumption without payment of duty subject to re-export in respect of fairs, exhibitions, demonstration, seminars, congresses and conferences, duly sponsored or approved by the Government of India or Trade Fair Authority of India, as the case may be, before the date of payment of duty.

(1)    Every importer claiming assessment of the goods falling under the said heading No. 98.01, on or before their importation shall apply in writing to the proper officer at the port where the goods are to be import or where the duty is to be paid for registration of the contract or contracts, as the case may be:

Provided that in the case of consignment sought to be cleared through a Customs House other than the Customs House at which the contract is registered, the importer shall produce from the Customs House of registration such information as the proper officer may require.

(2)    The importer shall apply as soon as may be, after he has obtained the Import trade control licence wherever required for the import of articles covered by the contract and in case of imports covered by the Open General Licence or imports made by Central Government, any State Government, statutory Corporation, public body or Government undertaking run as a joint stock company (hereinafter referred to as �Government Agency� as soon as clearance from the concerned sponsoring authority, as the case may be, has been obtained.

(3)    The application shall specify -

(a) the location of plant or project:

(b) the description of the articles to be manufactured, produced, mined or explored;

(c) the installed or designed capacity of the plant or project and in the case of substantial expansion of an existing plant or project the installed capacity and the proposed addition thereto;

(d) such other particulars as may be considered necessary by the proper officer for purposes of assessment under the said heading.

(4)    The application shall be accompanied by the original deed of contract together with a true copy thereof, the import trade control licence, wherever required, and an approved list of items from the Administrative Ministry or Department.

(5)    The importer shall also furnish such other documents or other particulars as may be required by the proper officer in connection with the registration of contract.

(6)    The proper officer shall, on being satisfied that the application is in the order register the contract by entering the particulars thereof in a book kept for the purpose, assign a number in token of the registration and communicate that number of the importer and shall also return to the importer all the original documents which are no longer required by him.

(1)    If any contract referred to in regulation 5 is amended, whether before or after registration, the importer shall make an application for registration of the amendments to the said contract to the proper officer.

(2)    The application shall be accompanied by the original deed of contract relating to the amendments together with a true copy thereof and the documents, if any, permitting consequential amendments to the import trade control licence, wherever required, for the import of articles covered by the contract and in the case of imports covered by Open General Licence, as soon as clearance from the Administrative Ministry or Department, as the case may be, has been obtained along with a list of articles referred to in clause (4) of regulation 5, duly attested.

(3)    On being satisfied that the application is in order, the proper officer shall make a note of the amendments in the register.

The importer shall within three months from the date of clearance for home consumption of the last consignment of the goods or within such extended period as the proper officer may allow, submit a statement indicating the details of the goods imported together with necessary documents as proof regarding the value and quantity of the goods so imported in terms of this Regulation and any other document that may be required by the proper officer for finalisation of the contract.