Notification No. 36 dated 11th
April 1997 (As
amended by notification nos. 70/99, 101/99, 114/99, 131/99)
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 required
for the manufacture of the final goods when imported into India, from whole of
the duty of Customs leviable thereon, under the First Schedule to the Customs
Tariff Act, 1975 (51 of 1975), and from the whole of the additional duty
leviable thereon under section 3 of the said Customs Tariff Act, subject to the
following conditions, namely: -
(1)������ that the importer has been granted
special imprest licence (hereinafter referred to as the said licence) by the
Licensing Authority for the import of the said materials for the aforesaid
purpose in terms of paragraph 7.6 of the Export and Import Policy, and the said
licence is produced at the time of clearance for debit by the proper officer of
the Customs;
(2)������ that the import licence contains the
endorsements specifying inter-alia -
(a) the description,
quantity and the value of materials allowed to be imported under the said
licence;
(b) the description and quantity of materials allowed to be
imported duty free; and
(c) the description and quantity of final goods to be
manufactured out of, or with, the imported materials;
(3)������ the importer executes a bond with such
surety or security and in such form and for such sum as may be specified by the
Assistant Commissioner 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 condition specified in this
notification have not been complied with together with interest at the rate of 15%
per annum from the date of clearance of materials;
(4)������ that the importer produces evidence of
having discharged obligation to supply final goods to the satisfaction of the
said Assistant Commissioner of Customs within a period of thirty days from the
expiry of period allowed for fulfilment of obligation to supply final goods or
within such extended period as the Assistant Commissioner of Customs may allow;
and� �
(5)������ that the exempt materials are utilised
for the manufacture of final goods and no portion of such materials shall be
loaned, transferred, sold or disposed of in any other manner:
Provided
that where final goods in respect of which the said materials have been
imported have already been manufactured and supplied as required under this
notification, the importer may use the said materials for the manufacture of
any other goods.
(6)������ that the imports and exports are
undertaken through sea ports at Mumbai, Calcutta, Cochin, Kandla, Mangalore,
Marmagoa, Chennai, Nhava Sheva, Paradeep, Tuticorin and Visakhapatnam, or
through any of the airports at Ahmedabad, Bangalore, Mumbai, Calcutta,
Coimbatore, Delhi, Hyderabad, Jaipur, Chennai, Srinagar, Trivandrum and
Varanasi, or through any of the Inland Container Depots at Bangalore,
Coimbatore, Delhi, Gauhati, Hyderabad, Kanpur, Ludhiana, Moradabad, Pimpri (Pune)
and Pitampur (Indore):
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 the land Customs
station.
Explanation -In this notification -
(i)������� �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;
(ii)������ �Materials� means -
(a) raw materials,
components, intermediates, consumables, computer software and parts required
for the manufacture of final goods:
(b) packing materials
required for the packing of final goods to be supplied;
(c) supplies made to United
Nations Organisation or under the aid programme of the United Nations or other
multilateral agencies and paid for in foreign exchange;
(iii)������ �Final goods� means -
(a) supplies made to United
Nations Organisation or under the said programme of the United Nations or other
multilateral agencies and paid for in foreign exchange;
(b) supplies made to
project financed by multilateral or bilateral agencies/Funds as notified by the
Department of Economic Affairs, Ministry of Finance under international
Competitive Bidding or under limited tender system in accordance with the
procedures of those agencies/ funds where the legal agreements provide for
tender evaluation without including the Customs duty;
(c) supplies made to units
in the free trade zones and hundred per cent export oriented undertaking
(excluding free trade zone unit/export oriented undertakings engaged in
Diamond, Gem and Jewellery);
(d) supply of capital goods
and spares to the extent of 10% of the value of such capital goods for
fertiliser plants if the supply is made under the procedure of international
competitive bidding;
(e) supply of capital goods
to the holders of licence under the paragraph 6.2 of the Export and Import
Policy for import of such capital goods at zero duty.
(f) supplies of goods to
any project or purpose in respect of which the Ministry of Finance, by a
notification permits the import of such goods at zero customs duty coupled with
the extension of benefits under Chapter 7 of the Export and Import Policy for
domestic supplies;
(g) goods specified in list
8A of the Annexure to the notification of the Government of India in the
Ministry of Finance, Department of Revenue 23/98-Customs, dated the 2nd
June, 1998, for supply to any refinery set up under the Ninth Five Year Plan;
(h) supply of goods to any
of the mega power projects specified in List 33 appended to the notification of
the Government of India in the Ministry of Finance (Department of Revenue) no.
20/99-Customs dated the 28th February, 1999, if such mega power
project is -
(1) an inter-state thermal
power plant of a capacity of 1500 MW or more; or
(2) an inter-state hydel
power plant of a capacity of 500 MW or more��
-as certified by an officer
not below the rank of a Joint Secretary to the Government of India in the
Ministry of power.
(i) supply of goods to
Talcher-I and Talcher-II transmission projects in terms of the Public Notice of
the Government of India in the Ministry of Commerce No. 18 (RE:99)/1997-2002
dated the 1st July, 1999.
(j) supply of goods to
Sasaram HVDC East-North Interconnector Project in terms of the Public Notice of
the Government of India in the Ministry of Commerce No. 25 (RE:99)/1997-2002,
dated the 28th July, 1999.
(k) supply of goods to the
three OECF assisted projects, namely, Faridabad Gas Based Power Project of
NTPC, Simhadri Thermal Power Project of NTPC and Bakreshwar Thermal Power
Project of WBPDCL in terms of the Public Notice of the Government of India, in
the Ministry of Commerce No. 30 (RE:99)/1997-2002, dated the 6th
September, 1999.
(l) supply of goods to the
Maharashtra State Electricity Board for execution of Maharashtra Power Projects
in terms of the Public Notice of the Government of India in the Ministry of
Commerce No. 31 (RE:99)/1997-2002, dated the 23rd September, 1999.
(m) supply of goods to
Rihand-Sasaram-Biharsharif HVDC Link Back to Back Station Project in terms of
the Public Notice of the Government of India in the Ministry of Commerce No.38
(RE:99)/1997-2002, dated the 5th November, 1999.
(iv) �Free Trade Zone� and
�Hundred per cent Export Oriented Undertaking� have the same meaning as in
Explanation 2 to sub-section (1) of section 3 of the Central Excise Act, 1944
(1 of 1944);
(v) �Export and Import
Policy�, means Export and Import Policy, 1 April 1997-31 March 2002 notified by
Ministry of Commerce vide notification no. 1/1997-2002, dated the 31st
March 1997.