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Goods imported into India against a Pass Book issued by a designated
authority under paragraph 54 of the Export and Import Policy
Notification
No. 104 dated 30th May 1995 (As
amended by notification nos. 33/96, 81/96, 24/97, 12/99)
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 goods imported into
India from:
(i)
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
(ii)
the whole of the additional duty leviable under section 3 of the said
Customs Tariff Act, where specifically claimed by the importer.
subject
to the following conditions, namely: -
(1)
That the importer has been issued a Pass Book by the designated authority
under paragraph 54 of the Export and Import Policy (hereinafter referred to as
said Pass Book).
(2)
The importer has been permitted credit entries of the amounts equal to
basic/customs duties on the inputs used in the products exported by the importer
as verified by an Assistant Commissioner of Customs:
Provided
that credit shall not be allowed by the designated authority in respect of goods
exported under a claim for drawback or in discharge of export obligation against
a licence issued under Duty Exemption Scheme contained in Chapter VII of the
Export and Import Policy or where export was from a port or airport or Inland
Container Depot otherthan the ports or airports or Inland Container Depots at
Bombay, Nhava Sheva, Calcutta, (including the land Customs Station at Petropole)
Madras or Delhi.
Provided
further that such credit -
(i)
shall be admissible only in respect of the import items (hereinafter referred to
as the inputs) which are specified with quantity restrictions in the standard
input-output norms published in the Hand-Book of Procedures, Vol. II, by the
Government of India in the Ministry of Commerce vide Public Notice
No.121(PN)/92-97 dated the 31st March, 1992, as amended from time to
time (hereinafter referred to as the said norms), and which inputs are declared
by the exporter to have been actually used in the product exported;
(ii)
shall be admissible only where the export product is declared and if necessary
proved to the satisfaction of the Assistant Commissioner of Customs to have been
manufactured out of inputs of prime quality, except where the said norms allow
import of scrap or waste;
(iii)
shall be allowed,-
(a)
at the rate of customs duties chargeable under the First Schedule to the Customs
Tariff Act, 1975 (51 of 1975) read with notifications, if any, issued under
section 25 of the said Customs Act on the inputs as if the inputs were imported
on the date on which the order permitting the clearance and loading the Export
product was made by the proper officer of the Customs under section 51 of the
said Customs Act;
(b)
where duties of customs are chargeable on any input by reference to its value,
such value shall be determined by proceeding sequentially through the following
methods, namely: -
(I)
the value shall be deemed to be the price at which the same or similar inputs,
known to be usable in the export product were imported at the place of
exportation of such export product within 90 days prior to such export, or
(II)
the price at which inputs of like kind were imported anywhere in India within
180 days prior to the export by the pass book holder himself or by any other
person, or
(III)
the price at which such inputs were exported from India within 90 days prior to
the date of exports; or
(IV)
the price published in a contemporary reputed journal which regularly publishes
international prices of such inputs; or
(V)
the price arrived at by following any other reasonable method which the
Assistant Commissioner of Customs may deem fit.
(iv)
shall not be allowed in case the total value of inputs in respect of which
credit is claimed exceeds 75% of the F.O.B. value of the products exported,
unless otherwise permitted by a general or
special order by the Director General of Foreign Trade, in the Ministry of
Commerce, or any other officer authorised by him;
(3)
The said Pass Book is produced before the designated authority for debit
of the duties leviable on the goods but for exemption contained herein:
Provided
that exemption from duty shall not be admissible if there is insufficient credit
in the said Pass Book for debiting the duty leviable on the goods but for this
exemption.
(4)
The said Pass Book shall be valid for credits by the designated authority
for two years from the date of issue thereof and any credit in the said Pass
Book if not utilised within three years from the date of its issue shall lapse.
Provided
that where the export has been effected upto and including, 31st
March, 1997, and credit in the pass-book has not been granted, the pass-book
shall be valid for credit upto and including 31st march, 1999.
(5)
The said Pass
Book or the credit allowed therein shall not be transferable to any other
person.
(6)
Where the
importer does not claim exemption form the additional duty of customs leviable
under section 3 of the Customs Tariff Act, 1975 (51 of 1975), he shall be deemed
not to have availed the exemption from the duty specified in the First Schedule
to the said Customs Tariff Act for the purpose of calculation of the said
additional duty of customs.
Explanation:
�Export and Import Policy� means the Export and Import Policy 1 April
1992-31 March 1997 (Revised Edition: March 1995) published vide notification
of the Government of India in the Ministry of Commerce No.1 (RE-95)/92-97
dated the 31st March, 1995.
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