Goods acquired during transit by passengers. Benefit under Notification No. 137/90-Cus. not applicable to goods acquired during transit by passengers. Madras Customs House Public Notice No. 77/91, dated March, 1991.

Imported by post or Air Benefit of Notification 318/76-Cus. I am directed to say that Notification No. 204-Customs, dated 7-3-1986 was issued amending Notification No. 318/76-Cus., to insert Heading No. 98.04 of the New Customs Tariff in place of Heading No. 100.02 of the Old Tariff relating to imports by post or air. The question of giving effect to this amendment from the date of coming into force of the New Custom Tariff (28-2-1986) has been examined. It was observed that there was no intention to deny the benefit of the exemption to goods imported by post or air during the intervening period 28-2-1986 to 6-3-1986. Accordingly, the notification dated 7-3-1986 could be regarded as a correction of an accidental slip or omission falling within the purview of Section 154 of the Customs Act, 1962. The exemption under Notification No. 318/76-Cus., would therefore, continue to be available to the goods imported by post or air throughout the period, under the new tariff also. Pending assessments, if any, may be finalised under the new tariff also. Pending assessments, if any, may be finalised accordingly. - M.F.(D.R.) Letter F. No. 528/27/86-Cus.(TU)ICD, dated 29-4-1987.

PCB of CNC system of Forge press are parts of goods falling under Heading 85.27. Therefore, classifiable under Heading 98.06 of the Customs Tariff Act, 1975. - Madras Customs House Public Notice No. 77/91, dated March, 1991.

Power transmission system cannot be considered as power project, under Heading 98.01 (H.S.) of the Customs Tariff Act, 1975 hence not eligible for concession under Notification No. 67/87-Cus. - Madras Customs Public Notice No. 97/88, dated March, 1991.

Registration of contracts for assessments under Heading 98.01 of Customs Tariff Act, 1975. - Attention of the importers, Customs House Agents and others concerned is invited to Notification No. 230/86-Cus., dated 3-4-1986 issued by the Government of India, Ministry of Finance, Department of Revenue, New Delhi (see Annexure VI).

The benefit of assessment under Heading 98.01 would be available to all consignments, with the exceptions mentioned in the said Notification that are imported as part of contracts and that have been registered with the appropriate Customs House before any order is made by the proper officer of Customs permitting the clearance for Home Consumption. The registration of the contract must be made in the manner prescribed in the regulations, published in the said Notification.

To expedite early registration, the importers are advised to submit the following documents at the time of registration:-

1. An application for registration of the contract, as per Proforma ‘A’ appended herewith.
2. Original deed of contract together with true copy thereof.
3. Industrial Licence granted by the appropriate authority with a copy thereof.
4. Original import licence, if any with list duly attested by the Licensing Authorities and copy thereof.
5. Recommendatory letter for duty concession from the concerned sponsoring Authority as provided for in Para 288 of the ITC Hand Book.
6. Continuity Bond with Bank Guarantee as per Proforma (enclosed) in this office P.N. 91, dated 5-12-1972. The said continuity bond as per proforma should be made out for an amount equal to the CIF value of the contract sought to be registered supported by Bank Guarantee normally to the extent of 5%.
7. Plan Sheet/Drawings showing the arrangement of imported machines.
8. Brief write up or an explanation for the various items in the licence especially for those raw materials and components as to whether they are used as spares or for initial setting up.

All clearances are provisional in terms of this continuity bond for both provisional assessment as well as Import Trade Control Restrictions.

The importers should note that the registration of contracts will be completed when the continuity bonds are accepted by the proper officer and the relevant registration numbers are intimated to the concerned importers. All amendments/additions which are made in the original deed of contract and/or in other documents like import licenses, proforma invoices etc. should be brought to the notice of the Assistant Collector of Customs, Appraising Department, Contract Section in writing before the items are imported.

The importers are further advised that spares to the extent of 10% of the value of main machinery only are eligible for concessional rate of assessment under Heading 98.01of Customs Tariff Act. They are also advised that immediately after and not later than 3 months from the clearance of the last shipment, they must file a reconciliation statement together with all documents such as attested invoices, duty bills and final payment certificate of the suppliers of the machinery, failing which, the contract benefit may not be extended as this Customs House will finalise assessment of their imports on merits under the appropriate heading of the Customs Tariff Act.

Public Notice No.8, dated 20-1-1976 is hereby cancelled. -Bombay Customs House Public Notice No. 2188, dated 14-3-1988.

Spares are eligible for concessional assessment under Project Import only if they are imported before the finalisation of the contract by Customs House. - Madras Customs Public Notice No. 182/89, dated 2-8-1989.