Notification
No. 50 dated 27th April 2000 (As amended by Notification No. 140/ 2000, 60/2001, 121/2001,
Notification No. 113 dated 16th October
2002)
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 Advance Licence for deemed exports in terms of
paragraph 7.3 (c) of the Export and Import Policy or Annual Advance Licence for
Deemed Exports in terms of paragraph 7.2 of the Export and Import Policy
1997-2002, notified by the Government of India in the Ministry of Commerce,
vide notification No. 1 (RE-00)/ 1997-2002 dated the 31st March,
2001, as the case may be, (hereinafter referred to as the said licence) by the
Licensing Authority for import of the said materials for the aforesaid purpose,
and the said licence is produced by the importer at the time of clearance for
by the proper officer of customs;
(2)������ that the said licence contains the
endorsements specifying inter-alia:
(a) the description,
quantity and 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 or Deputy
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 conditions 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 goods
to the satisfaction of the said Assistant Commissioner of customs or Deputy
Commissioner or Customs within a period of thirty days from the expiry of the
period allowed for fulfillment of obligation to supply final goods or within
such extended period as the (Assistant Commissioner of Customs or Deputy
Commissioner of Customs) may allow; and
(5)������ that the exempt materials are utilised
for the manufacture of final goods 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
manufacturer of any other goods;
(6)��� that
the imports and exports are undertaken through sea ports at Mumbai, Calcutta,
Cochin, Kandla, Mangalore, Marmago, Chennai, Nhava Sheva, Paradeep, Tuticorin,
Visakhapatnam, Kakinada, Magdalla, Sikka and Pipavav or through any of the
airports at Ahmedabad, Bangalore, Mumbai, Calcutta, Bhubaneshwar, 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), Pitampur (Indore), Agra
Faridabad, Jaipur, Guntur, Nagpur, Varanasi Surat, Jodhpur, Salem, Tirupur, Singanallur,
Waluj and Malanpur;
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 sea port, airport or Inland Container Depot or through a 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;
(iii)�final goods� means, -
(a) supplies made to the
United Nations Organisation or under the aid programme of the United Nations or
other multilateral agencies and paid for in foreign exchange;
(b) supplies made to
projects financed by multi-lateral or bilateral agencies/Funds as notified by
the Government by India in the Ministry of Finance (Department of Economic
Affairs) under international competitive bidding 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 percent export oriented units (excluding
free trade zone units/export oriented undertakings engaged in Diamond, Gem and
Jewellery;
(d) supply of capital goods
including capital goods in unassembled/disassembled condition plant, machinery,
accessories, tools, dies and such goods which are used for installation
purposes till the stage of commercial production, and spares to the extent of
10% of the value of such capital goods for fertilizer plants if the supply of
goods is made under the procedure of international competitive bidding;
(e) supply of capital goods
to the holders of licence under paragraph 6.2 of the Export and Import Policy.
(f) supply 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 10 of the Export and Import Policy
for domestic supplies;
(g) supply of goods to
power and refinery projects not covered in (f) above;
(h) goods specified in List
9 appended to the notification of the Government of India, in the Ministry of
Finance (Department of Revenue), No. 16/2000-Customs, dated 1st
March, 2000, for supply to a refinery set up under the Ninth five year Plan;
(i) supply of goods to any
of the mega power projects (including generation and transmission) specified in
List 33 appended to the notification of the Government of India in the Ministry
of Finance (Department of Revenue) No.16/2000-Customs dated the 10th
March 2000 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 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)/1997-2000,
dated the 1st July, 1999.
(k) 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.
(I) 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.
(m) 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;
(n) 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;
(o) supply of goods to
Eastern Region System Coordination and Control (ERSC & C) Transmission
Project in terms of the Public Notice of the Government of India in the
Ministry of Commerce, No. 34 (RE-2000)/ 1997-2002 dated the 15th
September 2000.
(p) supply of goods to
Vindhyachal Super Thermal Power Project (STPP) Stage-II in the State of Madhya
Pradesh and Kayamkulam Combined Cycle Power Project (CCPP) in the State of
Kerala in terms of the Public Notice of the Government of India in the Ministry
of Commerce, No.18(RE-01)/1997-2002, dated the 7th June, 2001.
(iv)������ �free trade zone�, and �hundred percent export oriented units�
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, 1997-2002, notified by the Government
of India in the Ministry of Commerce vide notification number
1(RE-99)/1997-2002, dated the 31st March, 2000.