GOVERNMENT OF INDIA MINISTRY OF
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No.22/2013
-
CUSTOMS
New Delhi, the
18th
April, 2013.
G.S.R.
248
(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 goods specified in the Table
1
annexed hereto, from,
-
- the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act,
1975 (51 of 1975)
,
and
- the whole of the additional duty leviable thereon under section 3 of the said
Customs Tariff Act, when
specifically
claimed by the importer.
- The exemption under this notification shall be subject to the following conditions, namely:-
- that the goods imported are covered by a valid authorisation
issued under the Export Promotion Capital
Goods (EPCG) Scheme in terms of Chapter 5 of the Foreign Trade Policy permitting import of goods at zero
customs
duty;
- that the authorisation
is registered at the port of import specified in the said authorisation and the
goods,
which are specified in the Table 1 annexed here
to, are imported within
eighteen
months from the date of issue of the
said
authorisation
and the said
authorisation
is produced for debit by the proper officer of customs at the time of
clearance:
Provided that the benefit of import of capital goods at
concessional duty under this
notification for creation of modern infrastructure shall be extended only to
such retailers who have a
minimum area of 1000 square
metres:
Provided further
that the catalyst for one subsequent charge shall be allowed, under
the
authorisation
in which plant, machinery or equipment and catalyst for initial charge have been
imported, except in cases where the Regional Authority issues a separate
authorisation
for catalyst
for one subsequent charge after the plant, machinery or equipment and catalyst for initial charge
have already been imported;
- that the
importer is not issued, in the year of issuance of zero duty EPCG authorisation
, the duty credit scrips
under
Status Holder Incentive Scrip (SHIS)
scheme under para 3.16
of the Foreign Trade Policy
. In the case of
applicant who is
Common Service Provider (herein after referred as CSP)
, the CSP or any of its specific users should
not be issued, in the year of issuance of the
zero duty
EPCG authorisation
, the duty credit scrips under SHIS. Thiscondition shall not apply where already availed SHIS benefit that is unutilised
is surrendered or where benefits availed
under SHIS that is utilised is refunded, with applicable interest, before issue
of the
zero duty
EPCG authorisation.
SHIS scrips which are surrendered or benefit refunded or not issued in a
particular year for the reason the
authorisation has been issued in that year shall not be issued in future years
also;
- that
the authorisation
for annual requirement shall indicate export product to be exported under the
authorisation. The
importer
shall submit a Nexus Certificate from an independent Chartered Engineer (CEC) in
the
format specified in Appendix 32A of
HBP
(vol. I) notified under the Foreign Trade Policy, certifying nexus of imported
capital goods with the export product, to the Customs authorities at the time of
clearance of imported capital goods. A
copy of the
CEC
shall be submitted to the concerned Regional Authority alongwith copy of the
bill of entry, within
thirty days from the date of import of the Capital Goods;
- that the goods imported shall not be disposed of or transferred by sale or lease
or any other manner till
export obligation is complete;
- that the importer executes a bond in such form and
for such sum and with such surety or security as may be
specified by the Deputy Commissioner of Customs or Assistant Commissioner of
Customs binding himself to comply
with all the conditions of this notification as well as to fulfill export
obligation on
Free on Board (
FOB)
basis equivalent
to
six
times the duty saved on the goods imported as may be specified on the authorisation
, or for such higher sum
as may be fixed or endorsed by the Regional Authority in terms of Para 5.10 of
the Handbook of Procedures Vol I,
issued under para 2.4 of the Foreign Trade Policy, within a period of
six
years from the date of issue of
Authorisation
,
in the following proportions, namely :-
S. No. |
Period from the date of issue of
|
Authorisation
Proportion of total export obligation |
(1) |
(2) |
(3) |
1. |
Block of 1st
to 4th
year |
50% |
2. |
Block of 5th
to 6th
year |
50% |
Provided that in case the authorisation is issued to
a
CSP, the
CSP shall execute the
bond with bank
guarantee
and the bank guarantee
shall be equivalent to 100% of the
duty foregone,
and the bank guarantee
shall be
given by CSP or by anyone of the users or a combination thereof, at the option
of
the
CSP:
Provided
further
that the export obligation shall be 75% of the normal export obligation
specified
above when fulfilled by export of following green technology products, namely, equipment for
solar
energy decentralised and grid connected products, bio
-
mass gassifier, bio
-
mass or waste boiler, vapour
absorption chillers, waste heat boiler, waste heat recovery units, unfired heat recovery steam generators,
wind turbine, solar collector and parts thereof, water treatment plants, wind
mill and wind mill turbine or
engine, other generating sets
-
wind powered, electrically operated vehicles
–motor cars, electrically
operated vehicles
–
lorries and
trucks, electrically operated vehicles
–
motor cycle and
mopeds, and solar
cells:
Provided
also
that
for units located in Arunachal Pradesh, Assam,
Jammu
and
Kashmir
,
Manipur,
Meghalaya, Mizoram, Nagaland, Sikkim and Tripura, the export obligation shall be 25% of the normal export
obligation specified
above:
Provided also that spares (including refurbished or reconditioned spares),
moulds, dies, jigs, fixtures,
tools and refractory for initial lining, for the existing plant and
machinery (imported earlier, under EPCG or
otherwise), shall be allowed to be imported under the EPCG scheme subject to an
export obligation
equivalent to 50% of the normal export obligation specified above in case of
separate
authorisation
issued,
subject
to the condition that the
Cost, Insurance and Freight (
CIF)
value of import of the said spares etc. is
limited to 10% of the CIF value of the plant and machinery imported under the
EPCG
authorisation
or 10% of
the book value of the plant and machinery imported earlier otherwise than under EPCG Scheme, as the case
may be
:
Provided
also
that where a sick unit is notified by the Board for Industrial and Financial
Reconstruction
(BIFR) or where a rehabilitation scheme is announced by the concerned State
Government in
respect of sick unit for its revival, the export obligation
may be fulfilled within time period allowed by the
Regional Authority as per the rehabilitation package prepared by the operating
agency and approved by
BIFR or rehabilitation department
of State Government. In cases where the time period is not specified in therehabilitation package, the export obligation
may be fulfilled within the time period allowed
by the Regional
Authority which shall not exceed
nine
years:
Provided also that where
the capital goods are imported for technological upgradation as per
conditions specified in Para 5.8 of the Foreign Trade Policy,
the export obligation shall be fixed
equivalent to six times the duty saved on the
capital
goods imported as may be specified
on the
authorization, or for such higher sum as may be fixed by
the Regional Authority,
to be
fulfilled
with
in
period of
six
years from the date of issue of authorization
under
the said
para
:
Provided also that export obligation of a particular block may be set off against the excess exports
made in the said preceding block;
- that if the importer does not claim exemption from the additional duty leviable
under section 3 of the Customs
Tariff Act, 1975, the additional duty so paid by him shall not be taken for computation of the net duty saved for the
purpose of fixation of export obligation provided the Cenvat credit of
additional duty paid has not been taken;
- that the importer,
including aCSP,
produces within 30 days from the expiry of each block
from the date of
issue of
authorisation
or within such extended period as the Deputy Commissioner of Customs or
Assistant
Commissioner of Customs may allow, evidence to the satisfaction of the Deputy
Commissioner of Customs or
Assistant Commissioner of Customs showing the extent of export obligation fulfilled, and where the export
obligation
of any particular block is not fulfilled in terms of the condition
(6)
, the importer shall within three months from the
expiry of the said block pay duties of customs
equal to an amount which bears the same proportion to the duties
leviable on the goods, but for the exemption contained herein, which the
unfulfilled portion of the export obligation
bears to the total export obligation, together with interest at the rate
of 15% per annum from the date of clearance of
the goods;
- that
where the
importer
fulfills 75% or more of the export obligation as specified in condition (6)
(over and
above 100% of the average export obligation) within half of the period specified
for
export obligation as mentioned in
condition (6),
his balance export obligation shall be condoned and he shall be treated to have
fulfilled the entire
export obligation;
- that the
capital goods
imported
, assembled or manufactured
are installed in the importer‟sfactory or
premises
and a certificate
from the jurisdictional Deputy Commissioner of Central Excise or Assistant
Commissioner
of Central Excise, as the case may be,
is produced confirming installation and use of the capital goods in the
importer's factory or premises,
within six months from the date of completion of imports or within such extended
period as the Deputy Commissioner of Customs or Assistant Commissioner of
Customs, as the case may be, may
allow :
Provided
that in case of import of spares, the installation certificate shall be produced within three
years from the date of import:
Provided
further that if the importer
, including an importer who is a Common Service Provider (CSP),
is not registered with the Central Excise or if the importer is a service provider (other than a CSP), as the
case may be, he may produce the said certificate of installation and usage
issued by an independent
Chartered Engineer:
Provided
also
that in the case of manufacturer
exporter and merchant
exporter
having supporting
manufacturer(s) or vendor(s) or in the case of import of irrigation equipment
for use in contract farming for
export of agricultural products or in the case of
importer
rendering services, the capital goods may be
installed at the factory
or premises of such other person whose name and address is endorsed on the
authorisation
referred to in condition (1)
and also on the shipping bills
and where the bond for full difference
of duty, if necessary, in terms of condition (6) with or without a
bank guarantee, as the case may be, is
executed by the importer and such other person binding themselves jointly and
severally to fulfill
the export
obligation and all other conditions
of this notification and to pay duty with interest at the rate of 15% per
annum in case of default
. This shall not apply to a CSP:
Provided also that agro units located in Agri Export Zones or service providers
in Agri Export Zones
may move the capital goods within the Agri Export Zones under intimation to the
jurisdictional
Deputy
Commissioner of Central Excise or Assistant Commissioner of Central Excise, as
the case may be, subject to
the condition that the
importer
shall maintain accurate record of such movement;
- 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
hereto 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 with
in his jurisdiction;
- that
notwithstanding anything contained in condition (6)
above, where the Regional Authority grants
extension of block
-
wise period for any block(s) or overall period of
fulfillment
of export obligation up
to a period of two
years
or regularization of shortfall in export obligation, not exceeding five percent
of such export obligation, the said
block-wise period or overall period of export obligation shall be extended or condoned
by the Deputy Commissioner
of Customs or Assistant Commissioner of Customs, as the case may be:
Provided that in respect of sick units referred to in the fifth proviso to
condition (6) above, extension
of overall period of export obligation shall not be allowed.
- Where the goods specified in the Table1
are found defective or unfit for use, the said goods may be re-exported back to the foreign supplier within three years from
date of payment of duty on the
importation thereof:
Provided that at the time of re-export, the goods are identified to the satisfaction of the Deputy
Commissioner of Customs or Assistant Commissioner of Customs, as the case may
be, to be the same as
the goods which were imported.
Explanation–For the purpose of this notification,-
- “Authorisation
” includes “
Authorisation
for Annual Requirement”.
- “Capital goods” has the same meaning as assigned to it in Paragraph of 9.12 of
the Foreign Trade Policy;
- “Common Service Provider” (CSP) means
a service provider who is designated or certified as a Common
Service Provider by the DGFT, Department of Commerce or State Industrial Infrastructural Corporation in a
Town of
Export Excellence;
- “Export obligation”,
-
(I)
means obligation on the
importer
to export to a place outside India, goods manufactured or capable
of being manufactured or services rendered by the use of
capital
goods imported
in terms of this notification
and the export obligation shall be over and above the average level of exports
achieved by the
importer
in the
preceding three licensing years for the same and similar
products within the
overall
export obligation period
including the extended period, if any
and such average shall be the arithmetic mean of export performance in
the last three years for the same and similar products:
Provided that in case of export of goods relating to handicraft, handlooms, cottage, tiny
sector, agriculture, animal husbandry, floriculture, horticulture, pisciculture,
viticulture, poultry,
sericulture, carpet, coir and jute, the
importer
shall not be required to maintain the average level
of
exports:
Provided also that in case of export of goods relating to aquaculture (including
fisheries), the
importer
shall not be required to maintain the average level of exports subject to the
condition that
EPCG
authorisation has been obtained for goods other than fishing trawlers, boats, ships and other
similar items:
Provided also that the goods, excepting tools, imported under
this notification
by the
aforesaid sectors, shall not be allowed to be transferred for a period of five
years from the date of
imports even in cases where export obligation has been fulfilled. Transfer of
capital goods would,
however, be permitted within the group companies, after fulfillment of export
obligation but before five
years from the date of imports, under intimation to Regional Authority and jurisdictional Central
Excise Authority:
Provided also that exports made to such countries as notified by Director
General of Foreign
Trade, shall not be counted for fixing the average level of exports:
Provided also that exports against only such shipping bills which mention the authorisation
number and date of the authorisation shall be counted for the fulfillment of the
export obligation:
Provided also that in the case of authorisation issued to a CSP,-
(i)
the reference to 'importer' in this Explanation shall be taken to mean a reference to
'CSP and specific users whose details are informed prior to export by CSP to the
Regional
Authority';
(ii)
for the exports by users of the common service to be counted towards fulfilment
of
export obligation of CSP, the respective shipping bills of the users of common
service shall
contain the authorisation details of the CSP and the concerned Regional
Authority shall be
informed about the details of the users prior to such export; and
(iii)
the
exports counted against the authorisation
in terms of this notification
shall not be
counted towards fulfillment of other specific export obligations against
all other authorisations
issued under Chapter 5 of the Foreign Trade Policy, including
para 5.22
of Handbook
of
Procedures Volume1;
(II)
shall be fulfilled through physical exports and the export proceeds realised in
freely convertible
currency. However the following categories of supplies, shall also be counted
towards fulfillment of export
obligation:
(a)
deemed exports, namely:
(i)
supply of goods against Advance Authorisation/Advance Authorisation for Annual
Requirement/ Duty Free Import Authorisation (DFIA);
(ii)
supply of goods to Export Oriented Units (EOUs) or Software Technology Parks
(STPs) or Electronics Hardware Technology Parks (EHTPs) or Bio-Technology Parks (BTPs);
(iii)
supply of goods to projects financed by multilateral or bilateral agencies or
Funds as
notified by the Department of Economic Affairs (DEA), the Ministry of Finance
(MOF) under
International Competitive Bidding (ICB) in accordance with procedures of those agencies
or
Funds, where legal agreements provide for tender evaluation without including
customs duty;
supply and installation of goods and equipments (single responsibility of turnkey contracts) to
projects financed by multilateral or bilateral agencies or Funds as notified by
DEA, MOF under
ICB, in accordance with procedures of those agencies/Funds, where bids may have
been
invited and evaluated on the basis of Delivery Duty Paid (DDP) prices for goods manufactured
abroad;
(iv)
supply of goods to any project or purpose in respect of which the Ministry of
Finance,
by a notification, permits import of such goods at zero customs duty and the
supply is made
under ICB procedure;
(v)
supply of
goods to mega power projects as provided in sub
-
clause (ii) of clause (f) of
para 8.2 of Foreign Trade Policy;
(vi)
supply of goods to nuclear power projects through competitive bidding as
provided in
clause (j) of para 8.2 of Foreign Trade Policy;
(b)
supply of ITA
-
1 items to Domestic Tariff Area, provided realization is in free foreign
exchange;
(c)
royalty payments received in freely convertible currency and foreign exchange
received for Research
and Development (R&D) services; and
(d)
payments received in rupee terms for port handling services in terms of
chapter 9
of the Foreign
Trade Policy.
- “Foreign Trade Policy” means the Foreign Trade Policy, 2009
-
2014, published in the Gazette of India,
Extraordinary, Part II, Section 3,
Sub-section (ii)
vide
notification
number G.S.R. 1293 (E)
of the Government of
India,
Ministry of Commerce and Industry,
Department of Commerce
No.1 (RE–2012) /2009
-
2014 dated the
5th
June, 2012, as amended from time to time;
- “Handbook of Procedures, Volume 1”
means the Handbook of Procedures Volume 1, 2009-14, published in
the Gazette of India, Extraordinary,
Part I, Section 1
vide
public notice of the Government of India in the Ministry of
Commerce and Industry, Department of Commerce,
No.1 (RE–2012)/2009
-
2014 dated the
5th
June, 2012, as
amended from time to time;
- “Manufacture” has the same meaning as defined in clause (f) of section 2 of the
Central Excise Act, 1944 (1
of 1944);
- “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 authorised by him to grant an authorisation
including a duty credit scrip under the said Act;
(I)
“Town of Export Excellence” (TEE) means a selected town producing goods of Rs. 750 Crore or more based
on potential of growth in exports. However, for TEE in handloom, handicraft,
agriculture and fisheries sector the
threshold limit would be Rs.150 Crore.
Table 1
S. No.
|
Description of goods |
(1) |
(2) |
1. |
Capital goods for pre-production, production and post production. |
2. |
Capital goods in Semi Knocked Down (SKD) / Completely Knocked Down (CKD)
conditions to be
assembled into capital goods by the importer. |
3. |
Spare parts of CIF value upto 10% of the
CIF value of goods specified at Serial Nos.1 and 2 as actually
imported and required for maintenance of capital goods so imported, assembled,
or manufactured. |
4. |
Spare parts of CIF value upto 10% of the book value of the existing plant and
machinery of the
importer. |
Table 2
S.No. |
Port, ICD, LCS |
Located at |
1. |
Seaports |
Bedi (including Rozi-Jamnagar), Chennai, Cochin,
Dahej, Dharamtar, Haldia (Haldia Dock complex of Kolkata port) Kakinada,
Kandla, Kattupalli (Tamilnadu), Kolkata, Krishnapatnam,
Ennore (Tamilnadu) and Karaikal (Union territory of Puducherry) ,
Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra,
Nagapattinam, Nhava Sheva, Okha, Paradeep, Pipavav, Porbander, Sikka,
Tuticorin, Visakhapatnam and Vadinar. |
2. |
Airports |
Ahmedabad, Bangalore, Bhubaneswar, Chennai, Cochin,
Coimbatore, Dabolim (Goa), Delhi, Hyderabad, Indore, Jaipur, Kolkata,
Lucknow(Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar,
Trivandrum, Varanasi and Visakhapatnam. |
3. |
Inland Container Depots |
Agra, Ahmedabad, Anaparthy (Andhra Pradesh), Babarpur,
Bangalore, Bhadohi, Bhatinda, Bhilwara, Bhiwadi, Bhusawal, Chettipalayam
(Tamilnadu), Chheharata (Amritsar), Coimbatore, Dadri, Dappar (Dera
Bassi), Daulatabad (Wanjarwadi and Maliwada), Delhi, |
4. |
Land Customs Stations |
Agartala, Amritsar Rail Cargo, Attari Road,
Changrabandha, Dawki, Ghojadanga, Hilli, Jogbani, Mahadipur, Nepalganj
Road, Nautanva (Sonauli), Petrapeole, Ranaghat, Raxaul, Singhabad and
Sutarkhandi. |
[F.No.605/10/2013-DBK]
(Rajiv Talwar)
Joint
Secretary to the Government of India
|