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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No. 18/ 2015 – Customs
New Delhi, the 1st April, 2015.
G.S.R. 254 (E).- 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 valid Advance Authorisation issued by
the Regional Authority in terms of paragraph 4.03 of the Foreign Trade Policy
(hereinafter referred to as the said authorisation) 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) and from the whole of the additional duty,
safeguard duty, transitional product specific safeguard duty and anti-dumping
duty leviable thereon, respectively, under sections 3, 8B, 8C and 9A of the said
Customs Tariff Act, subject to the following conditions, namely :-
(i) that the said authorisation is produced before the proper officer of customs
at the time of clearance for debit;
(ii) that the said authorisation bears,-
(a) the name and address of the importer and the supporting manufacturer in
cases where the authorisation has been issued to a merchant exporter; and
(b) the shipping bill number(s) and date(s) and description, quantity and value
of exports of the resultant product in cases where import takes place after
fulfillment of export obligation; or
(c) the description and other specifications where applicable of the imported
materials and the description, quantity and value of exports of the resultant
product in cases where import takes place before fulfillment of export
obligation;
(iii) that the materials imported correspond to the description and other
specifications where applicable mentioned in the authorisation and are in terms
of para 4.12 of the Foreign Trade Policy and the value and quantity thereof are
within the limits specified in the said authorisation;
(iv) that in respect of imports made before the discharge of export obligation
in full, the importer at the time of clearance of the imported materials
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, but for the exemption contained herein, on
the imported materials in respect of which the conditions specified in this
notification are not complied with, together with interest at the rate of
fifteen percent per annum from the date of clearance of the said materials;
(v) that in respect of imports made after the discharge of export obligation in
full, if facility under rule 18 (rebate of duty paid on materials used in the
manufacture of resultant product) or sub-rule (2) of rule 19 of the Central
Excise Rules, 2002 or of CENVAT Credit under CENVAT Credit Rules, 2004 has been
availed, then the importer shall, at the time of clearance of the imported
materials furnish a bond to the Deputy Commissioner of Customs or Assistant
Commissioner of Customs, as the case may be, binding himself, to use the
imported materials in his factory or in the factory of his supporting
manufacturer for the manufacture of dutiable goods and to submit a certificate,
from the jurisdictional Central Excise officer or from a specified chartered
accountant within six months from the date of clearance of the said materials,
that the imported materials have been so used:
Provided that if the importer pays additional duty of customs leviable on the
imported materials but for the exemption contained herein, then the imported
materials may be cleared without furnishing a bond specified in this condition
and the additional duty of customs so paid shall be eligible for availing CENVAT
Credit under the CENVAT Credit Rules, 2004;
(vi) that in respect of imports made after the discharge of export obligation in
full, and if facility under rule 18 (rebate of duty paid on materials used in
the manufacture of resultant product) or sub-rule (2) of rule 19 of the Central
Excise Rules, 2002 or of CENVAT credit under CENVAT Credit Rules, 2004 has not
been availed and the importer furnishes proof to this effect to the satisfaction
of the Deputy Commissioner of Customs or the Assistant Commissioner of Customs
as the case may be, then the imported materials may be cleared without
furnishing a bond specified in condition (v);
(vii) that the imports and exports are undertaken through the seaports, airports
or through the inland container depots or through the land customs stations as
mentioned in the Table 2 annexed to the Notification No.16/ 2015- Customs dated
01.04.2015 or a Special Economic Zone notified under section 4 of the Special
Economic Zones Act, 2005 (28 of 2005):
Provided that the Commissioner of Customs may, by special order or a public
notice and subject to such conditions as may be specified by him, permit import
and export through any other sea-port, airport, inland container depot or
through a land customs station within his jurisdiction;
(viii) that the export obligation as specified in the said authorisation (both
in value and quantity terms) is discharged within the period specified in the
said authorisation or within such extended period as may be granted by the
Regional Authority by exporting resultant products, manufactured in India which
are specified in the said authorisation:
Provided that an Advance Intermediate authorisation holder shall discharge
export obligation by supplying the resultant products to exporter in terms of
paragraph 4.05 (c) (ii) of the Foreign Trade Policy;
(ix) that the importer produces evidence of discharge of export obligation to
the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner
of Customs, as the case may be, within a period of sixty days of the expiry of
period allowed for fulfillment of export obligation, or within such extended
period as the said Deputy Commissioner of Customs or Assistant Commissioner of
Customs, as the case may be, may allow;
(x) that the said authorisation shall not be transferred and the said materials
shall not be transferred or sold;
Provided that the said materials may be transferred to a job worker for
processing subject to complying with the conditions specified in the relevant
Central Excise notifications permitting transfer of materials for job work;
Provided further that, no such transfer for purposes of job work shall be
effected to the units located in areas eligible for area based exemptions from
the levy of excise duty in terms of notification Nos. 32/1999-Central Excise
dated 08.07.1999, 33/1999-Central Excise dated 08.07.1999, 39/2001- Central
Excise dated 31.07.2001, 56/2002- Central Excise dated 14.11.2002, 57/2002-
Central Excise dated 14.11.2002, 49/2003- Central Excise dated 10.06.2003,
50/2003- Central Excise dated 10.06.2003, 56/2003- Central Excise dated
25.06.2003, 71/03- Central Excise dated 09.09.2003, 8/2004- Central Excise dated
21.01.2004 and 20/2007- Central Excise dated 25.04.2007;
(xi) that in relation to the said authorisation issued to a merchant exporter,
any bond required to be executed by the importer in terms of this notification
shall be executed jointly by the merchant exporter and the supporting
manufacturer binding themselves jointly and severally to comply with the
conditions specified in this notification.
2. Where the materials are found defective or unfit for use, the said materials
may be re-exported back to the foreign supplier within six months from the date
of clearance of the said material or such extended period not exceeding a
further period of six months as the Commissioner of Customs may allow:
Provided that at the time of re-export the materials are identified to the
satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of
Customs, as the case may be, as the materials which were imported.
Explanation, – For the purposes of this notification,-
(I) “Dutiable goods” means excisable goods which are not exempt from central
excise duty and which are not chargeable to ‘nil’ rate of central excise duty;
(II) "Foreign Trade Policy" means the Foreign Trade Policy, 2015-2020, published
by the Government of India in the Ministry of Commerce and Industry vide
notification No. 01/2015-2020, dated the 1st April 2015 as amended from time to
time;
(III) “Regional 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 an authorisation under the
said Act;
(IV) “Manufacture” has the same meaning as assigned to it in paragraph 9.31 of
the Foreign Trade Policy;
(V) “Materials” means,-
(a) raw materials, components, intermediates, consumables, catalysts and parts
which are required for manufacture of resultant product;
(b) mandatory spares within a value limit of ten per cent. of the value of the
authorisation which are required to be exported along with the resultant
product;
(c) fuel required for manufacture of resultant product;
(d) packaging materials required for packing of resultant product;
(VI) “Specified Chartered Accountant” means a statutory auditor or a Chartered
Accountant who certifies the importer’s financial records under the Companies
Act, 2013 (18 of 2013) or the Income Tax Act, 1961 (43 of 1961) or the Sales Tax
or the Value Added Tax Act of the State Government.
[F.No.605/55/2014-DBK]
(Sanjay Kumar)
Under Secretary to the Government of India
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