GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No. 21/ 2015 – Customs
New Delhi, the 1st April, 2015.
G.S.R. 257 (E) - 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) (hereinafter referred to
as Customs Tariff Act) and from the whole of the additional duty, safeguard
duty, transitional product specific safeguard duty and anti-dumping duty
leviable thereon respectively under sections 3, 8B, 8C and 9A of the said
Customs Tariff Act, except to the extent specified in para 2 to this
notification, subject to the following conditions, namely:-
- that the importer has been granted Advance Authorisation for deemed export
by the Regional Authority in terms of paragraph 4.05 (c) (iii) of the Foreign
Trade Policy permitting import of the said materials (hereinafter referred to as
the said authorisation);
- that the said authorisation is produced before the proper officer of
customs at the time of clearance for debit;
- that the said authorisation contains endorsements specifying, inter alia,-
(a) the description, quantity and value of materials allowed to be imported
under the said authorisation; and
(b) the description and quantity of final goods to be manufactured out of, or
with, the imported materials:
Provided that in respect of inputs referred in paragraphs 4.12(i) and 4.12(ii)
of the Foreign Trade Policy, the material permitted to be imported in the said
authorisation shall be of the specific name or description or quantity,
respectively, as the material used in the manufacture of the final goods
supplied. The authorisation holder shall declare these particulars on the
documents like ARE-3 and Central Excise Certified Invoice;
- that in respect of imports made before the discharge of export obligation,
the importer at the time of clearance of the imported materials executes a bond
with such surety or security, in such form and for such sum as may be specified
by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as
the case may be, binding himself to pay on demand an amount equal to the duty leviable, but for the exemption contained herein, on the imported materials in
respect of which the conditions specified in this notification are not complied
with, together with interest at the rate of fifteen percent per annum from the
date of clearance of the said materials;
- that in respect of imports made after the discharge of export obligation, if
facility under rule 18 or sub-rule (2) of rule 19 of the Central Excise Rules,
2002 or of the CENVAT Credit under CENVAT Credit Rules, 2004 has been availed,
then the importer shall, at the time of clearance of the imported materials
furnish a bond to the Deputy Commissioner of Customs or Assistant Commissioner
of Customs, as the case may be, binding himself, to use the imported materials
in his factory or in the factory of his supporting manufacturer for the
manufacture of dutiable goods and to submit a certificate, from the
jurisdictional Central Excise officer or from a specified chartered accountant
within six months from the date of clearance of the said materials, that the
imported materials have been so used:
Provided that if the importer pays additional duty of customs leviable on the
imported materials but for the exemption contained herein, then the imported
materials may be cleared without furnishing a bond specified in this condition
and the additional duty of customs so paid shall be eligible for availing CENVAT
Credit under the CENVAT Credit Rules, 2004;
- that in respect of imports made after the discharge of export obligation,
and if facility under rule 18 or sub-rule 2 of rule 19 of the Central Excise
Rules, 2002 or of the CENVAT credit under CENVAT Credit Rules, 2004 has not been
availed and the importer furnishes proof to this effect to the satisfaction of
the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as
the case may be, then the imported materials may be cleared without furnishing a
bond specified in condition (v);
- that the imports and exports are undertaken through the seaports, airports
or through the inland container depots or through the land customs stations as
mentioned in the Table 2 annexed to the Notification No.16/ 2015- Customs dated
01.04.2015 or a Special Economic Zone notified under section 4 of the Special
Economic Zones Act, 2005 (28 of 2005):
Provided that the Commissioner of Customs may, by special order or a public
notice and subject to such conditions as may be specified by him, permit import
and export through any other sea-port, airport, inland container depot or
through a land customs station within his jurisdiction;
- that the export obligation as specified in the said authorisation (both
in value and quantity terms) is discharged within the period specified in the
said authorisation or within such extended period as may be granted by the
Regional Authority by supplying final goods manufactured in India which are
specified in the said authorisation;
- that the importer produces evidence of having discharged obligation to
supply final goods to the satisfaction of the said Deputy Commissioner of
Customs or Assistant Commissioner of Customs, as the case may be, within a
period of sixty days from the expiry of the period allowed for fulfillment of
obligation or within such extended period as the Deputy Commissioner of Customs
or Assistant Commissioner of Customs, as the case may be, may allow;
- that the said authorisation shall not be transferred and the said materials
shall not be transferred or sold :
Provided that the said materials may be transferred to a job worker for
processing subject to complying with the conditions specified in the relevant
Central Excise notifications permitting transfer of materials for job work:
Provided further that, no such transfer for purposes of job work shall be
effected to the units located in areas eligible for area based exemptions from
the levy of excise duty in terms of notification Nos. 32/1999-Central Excise
dated 08.07.1999, 33/1999-Central Excise dated 08.07.1999, 39/2001- Central
Excise dated 31.07.2001, 56/2002- Central Excise dated 14.11.2002, 57/2002-
Central Excise dated 14.11.2002, 49/2003- Central Excise dated 10.06.2003,
50/2003- Central Excise dated 10.06.2003, 56/2003- Central Excise dated
25.06.2003, 71/03- Central Excise dated 09.09.2003, 8/2004- Central Excise dated
21.01.2004 and 20/2007- Central Excise dated 25.04.2007;
- that components and parts, required for manufacture of final goods which
are wholly exempted from payment of excise duty when removed from the factory of
production, may be taken directly from the port of import to the project site as
per the procedures and limitations, if any, laid down by the Board in this
regard subject to the condition that description and quantity of such components
and parts and the address of the site have been specified in the said authorisation.
2. The exemption from safeguard duty, transitional product specific safeguard
duty and anti-dumping duty shall not be available in respect of material
required for final goods which are covered under sub-clauses (a), (c), (d) and (i)
of clause (III) of the Explanation to this notification.
Explanation, – For the purposes of this notification,-
(I) “Dutiable goods” means excisable goods which are not exempt from central
excise duty and which are not chargeable to ‘nil’ rate of central excise duty;
(II) “Export Oriented Units” has the same meaning as assigned to it in paragraph
9.18 of the Foreign Trade Policy;
(III) “Final goods” means –
- supply of goods against Advance Authorisation or Advance Authorisation for
annual requirement or Duty Free Import Authorisation Scheme;
- supply of goods to Export Oriented Units or Software Technology Parks or
Electronic Hardware Technology Parks or Biotechnology Parks;
- supply of capital goods against Export Promotion Capital Goods Authorisation;
- supply of marine freight containers by 100% Export Oriented Units ( domestic
freight container manufacturers) where such containers are exported out of India
within a period of six months or such further period as may be permitted by the
Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the
case may be;
- supply of goods to projects financed by multilateral or bilateral agencies
or funds as notified by Department of Economic Affairs, Ministry of Finance
under International Competitive Bidding (ICB) in accordance with the procedures
of those agencies or funds, where legal agreements provide for tender evaluation
without including customs duty;
- supply and installation of goods and equipment (single responsibility of
turnkey contracts) to projects financed by multilateral or bilateral agencies or
funds as notified by Department of Economic Affairs, Ministry of Finance under
ICB in accordance with the procedures of those agencies or funds, where bids may
have been invited and evaluated on the basis of Delivered Duty Paid (DDP) prices
for goods manufactured abroad;
- supply of goods to any project or purpose in respect of which the Ministry
of Finance, by Notification No. 12/2012-Customs dated 17-3-2012, as amended from
time to time, permits import of such goods at zero customs duty subject to
conditions specified in the said Notification and the supply is made under ICB
procedure;
- supply of goods required for setting up of any of the mega power projects
specified in the list 32A at Sl. No. 507 of Notification No. 12/2012- Customs
dated 17.03.2012, as amended from time to time, provided the mega power project
conforms to the threshold generation capacity specified in the said
Notification. The supply should be made under ICB procedure. The ICB condition
shall not be mandatory if the requisite quantum of power has been tied up
through tariff based competitive bidding or if the project has been awarded
through tariff based competitive bidding;
- for supply for official use or to the projects funded by UN or International Organisation in terms of Notification No. 108/95-Central Excise dated
28.08.1995;
- Supply of goods to nuclear power projects through National Competitive
Bidding (NCB) or through ICB as provided in clause(h) of para 7.02 of Foreign
Trade Policy;
(IV) "Foreign Trade Policy" means the Foreign Trade Policy, 2015-2020, published
by the Government of India in the Ministry of Commerce and Industry vide
notification No. 01/2015-2020, dated the 1st April 2015 as amended from time to
time;
(V) “Materials” means –
- raw materials, components, intermediates, consumables, catalysts and parts
which are required for manufacture of final goods;
- mandatory spares within a value limit of ten per cent. of the value of the authorisation which are required to be exported along with the final goods;
- fuel required for manufacture of final goods;
- packaging materials required for packing of final goods;
(VI) “Regional 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 authorized by him to grant an authorisation under the
said Act; and
(VII) “Specified Chartered Accountant” means a statutory auditor or a Chartered
Accountant who certifies the importer’s financial records under the Companies
Act, 2013 (18 of 2013) or the Income Tax Act, 1961 (43 of 1961) or the Sales Tax
or the Value Added Tax Act of the State Government.
[F.No.605/55/2014-DBK]
(Sanjay Kumar)
Under Secretary to the Government of India
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