(As amended by notification no. 47
dated 25th April 2000, 120/2000, 30/2001, 59/2001, Notification No.
122 dated 3rd December 2001, Notification No. 9 dated 21st
January 2002, Notification No. 113 dated 16th October 2002, Notification
No. 125 dated 12th November 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 imported
into India, against an Advance Licence for Annual Requirement (hereinafter
referred to as the said licence), with Actual User Condition in terms of
paragraph 7.2 of the Export and Import Policy or Annual Advance Licence
(hereinafter referred to as the said licence), with Actual User Condition in
terms of paragraph 7.4A of the Export and Import Policy 1998-99 notified by the
Government of India in the Ministry of Commerce vide notification No. 1(RE-99)/
1997-2002 dated the 31st March 1999, 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 conditions, namely: -
(i)������� the
said licence is issued for an export product group specifying the Cost
Insurance Freight Value (CIF value) of import permitted against it and the Free
On Board Value (FOB value) of export obligation to be achieved. The said licence shall be valid for
import of any input required for the manufacture of export product, which is
covered under the said export product group specified in the Hand Book of
Procedure Volume II of Export and Import Policy;
(ia)����� an Actual User Duty Exemption Entitlement
Certificate (hereinafter referred to as the said certificate) is issued to the
holder of the said licence by the Licensing Authority in the form specified in
the Schedule annexed to this notification. At the time of import, the full
details of value, quantity, technical characteristics and other particulars, of
the inputs imported against the said licence shall be entered in part �C� of
the said certificate by the proper officer;
(ii)������ that the importer at the time of
clearance of the imported materials 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, but for the exemption, on the imported materials in respect of
which the conditions specified in this notification have not been compiled
with, together with interest at the rate of fifteen per cent per annum from the
date of clearance of the said materials;
Provided that
the bond shall not be necessary in respect of imports made after the discharge
of export obligation in full;
(iii)������ that the said licence and part I of the
said certificate are produced before the proper officer of customs at the time
of clearance for debit;
(iv)������ that the imports and exports are
undertaken through the sea ports at Mumbai, Calcutta, Cochin, Magdolla, Kakinada,
Kandla, Mangalore, Marmagoa, Madras, Nhava Sheva, Paradeep, Pipavav, Sikka,
Tuticorin, Visakhapatnam, Dahej, Nagapattinam, Okha and Mundhra, or through any
of the airports at Ahmedabad, Bangalore, Bhubaneshwar, Mumbai, Calcutta,
Coimbatore, Delhi, Hyderabad, Jaipur, Madras, Srinagar, Trivandrum, Varanasi,
Nagpur and Cochin or through any of the Inland Container Depots at Agra,
Bangalore, Coimbatore, Delhi, Faridabad, Gauhati, Guntur, Hyderabad; Jaipur,
Jalandhar, Kanpur, Ludhiana, Moradabad, Nagpur, Pimpri (Pune), Pitampur
(Indore), Surat, Tirupur Varanasi, Nasik, Rudrapur (Nainital), Dighi
(Pune),Vadodara, Daulatabad (Wanjarwadi and Maliwada), Waluj (Aurangabad),
Anaparthy (Andhra Pradesh), Salem, Malanpur, Singanalur, Jodhpur, Kota,
Udaipur, Ahmedabad, Bhiwadi, Madurai, Bhilwara, Pondicherry and Garhi Harsaru
or through the Land Customs Station at Ranaghat, Singhabad and Rakaul:
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 a land customs station;
(v)������� that the sourcing of the imported
materials from private bonded warehouses set up under para 4.15 of the Export
and Import Policy would be allowed;
(vi)������ that the export obligation is discharged
within eighteen months from the date of issue of the said licence or within
such extended period as may be granted by the Licensing Authority by exporting
resultant products manufactured in India. At the time of export, the full
details of value, quantity, technical characteristics, and other particulars,
of the resultant export product (hereinafter referred to as resultant product)
shall be entered in part �E� of the said certificate by the proper officer;
Provided that
an Annual Intermediate Licence holder may discharge export obligation by
supplying the resultant products to ultimate exporter holding Annual Advance
Licence in terms of paragraph 7.3 (b) 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;
(vii)����� that the importer produces evidence of
discharge of export obligation to the satisfaction of the Assistant Commissioner
of Customs within a period of 30 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:
(viii)���� exempt materials shall not be disposed of
or utilised in any manner except for utilisation in discharge of export
obligation or for replenishment of such materials and materials so replenished
shall not be sold or transferred to any other person:
(ix)������ that in relation to the said licence
issued to a Merchant Exporter holding Export House, Trading House, Star Trading
House or Super Star Trading House Certificate,
(a) the name and address of the
supporting manufacturer is specified in the said licence and the said
certificate and the bond required to be executed by the importer in terms of
condition (ii) shall be executed jointly by the Merchant Exporter and the
supporting manufacturer binding themselves jointly and severally to comply with
the conditions specified in this notification: and
(b) exempt materials are utilised in the factory of such
supporting manufacturer in terms of condition (viii).
(x)������� This notification shall come into force
on and from the 1st July 1999.
Explanation - In this notification, -
(i) �Export and Import
Policy� means the Export and Import Policy 1997-2002, published vide
notification of the Government of India in Ministry of Commerce No.1/1997-2002
dated the 31st March 1997;
(ii) �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;
(iii) �Materials� means-
(a) raw materials,
components, intermediates, consumables, computer software and parts required
for manufacture of resultant product specified in Part E of the said
certificate by the proper officer.
(b) mandatory spares within
a value limit of ten per cent of the value of the licence which are required to
be exported alongwith the resultant product; and
(c) packaging materials
required for packing of resultant product
(iv) Annual Advance Licence
includes Annual Advance Licence for Intermediate Supply issued in terms of
paragraph 7.3 (b) 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.