Notification No. 106 dated 2^nd June 1995 (As amended by notification nos. 142/95, 5/96)

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 imported into India against Special Value Based Advance Licence (hereinafter referred as the said licence) for the export of readymade garments (other than leather garments) issued under Scheme �A� contained in Appendix XXII-A of the Handbook of Procedure 1^st April 1992-31^st  March 1995, Vol. I (Revised Edition: April, 1995) published in terms of paragraph 53 of the Export and Import Policy by the Government of India in the Ministry of Commerce vide Public Notice No. 292/PN) 92-97 dated the 30^th April, 1995, from 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 from the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act, subject to the following condition, namely: -

(1)    that material imported are covered by a Value Based Duty exemption Entitlement Certificate (hereinafter referred to as the said certificate) issued by the Licensing Authority in the form specified in the Schedule annexed to this notification;

(2)    that the importer, at the time of clearance of imported materials, -

(a) produces the said licence and the said certificate for debit by the proper officer of the Customs;

(b) omitted;

(c) 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 conditions specified in this notification have not been complied with together with interest at the rate of 24% per annum from the date of clearance of the materials.

(3)    that the imports and exports are undertaken through sea port at Bombay, Calcutta, Cochin Kandla, Mangalore, Marmagoa, Madras, Nhava Sheva, Paradeep, Tuticorin and Visakhapatnam, or through any of the airports at the Ahmedabad, Bangalore, Bombay, Calcutta, Coimbatore, Delhi, Hyderabad, Jaipur, Madras, 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 sea port, airport or Inland Container Depot or through a land customs station.

(4)    that export obligation is discharged within the period specified in the said certificate or within such extended period as may be granted by the Licensing Authority by exporting goods manufactured with the use of materials imported in terms of this notification and the importer produces the said certificate together with evidence of discharge of export obligation to the satisfaction of the Assistant Commissioner of Customs within in a period of thirty days of the expiry of period allowed for fulfilment of export obligation or within such extended period as the said Assistant Commissioner of Customs may allow;

(5)    the exempt materials shall be utilised only for the discharge of export obligation and not part thereof shall be disposed of or utilised in any other manner.

Provided that after discharge of export obligation in full, the exempt materials may be processed by the importer in his own factory for manufacture of any other goods.