Exemption to specified goods imported for production of goods for export or for use in 100% Export-Oriented Undertakings - New scheme - Notification No. 13/81-Cus. rescinded - 53/97 - Customs -Tariff

Exemption to specified goods imported for production of goods for export or for use in 100% Export-Oriented Undertakings - New scheme - Notification No. 13/81-Cus. rescinded Notification No. 53/97-Cus. Dated 3-6-1997 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 specified in the Table below (hereinafter referred to as the goods), when imported into India for the purpose of manufacture of articles for export out of India, or for being used in connection with the production or packaging or job work for export of goods or services out of India by hundred per cent Export Oriented Units approved by the Board of Approvals for hundred per cent Export Oriented Units appointed by the notification of the Government of India in the Ministry of Industry, Department of Industrial Policy and Promotion for this purpose, (hereinafter referred to as the said Board), from the whole of duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and the additional duty, if any, leviable thereon under section 3 of the said Customs Tariff Act subject to the following conditions, namely :- (1) The imports, clearance, export, transfer and usage of the goods and goods manufactured therefrom and the net foreign exchange earning as a percentage of export shall be subject to the conditions of the Export and Import Policy - 1st April, 1997 to 31st March, 2002 notified by the Government of India under the Ministry of Commerce Notification No. 1/97, dated the 31st March, 1997 (hereafter referred to as the said Export and Import Policy). (2) The importer has been granted necessary licence for the import of the goods for the said purpose. (3) The importer carries out the manufacture, production, packaging or job work or service in Customs bond and subject to such other conditions as may be specified by the Commissioner of Customs in this behalf. (4) Importer exports out of India 100% or such other percentage, as may be fixed by the said Board, of articles manufactured wholly or partly from the goods during the period stipulated by the said Board or such extended period as may be specified by the said Board. (5) Where it is shown to the satisfaction of the Assistant Commissioner of Customs that the said unit has been allowed by the Development Commissioner or the said Board to clear any of the said goods for being taken to any other place in India in accordance with the Export and Import Policy. (a) such clearance of captial goods, material handling equipment, office equipment and captive power plants may be allowed on payment of an amount equal to the customs duty leviable on such goods on depreciated value thereof and the rate in force on the date of payment of such duty; (b) such clearance of goods (including container, suitable for repeated use) other than those specified in clause (a), may be allowed on payment of customs duty on the value at the time of import and at rates in force on the date of payment of such customs duty; (c) such clearance of used packing materials such as cardboard boxes, polyethylene bags of a kind unsuitable for repeated use may be allowed without payment of any customs duty. Provided that the importer shall not be eligible to avail of the exemption applicable to goods falling under heading No. 98.01 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), or the exemption available to imported goods under the Export Promotion Scheme other than the Export Promotion Capital Goods Scheme permitting import of capital goods at the rate of duty of 10% ad valorem in terms of notification in force at the time of debonding. Explanation. - The depreciation in respect of goods covered by clause (a) shall be allowed for the period from the date of commencement of commercial production of the unit or where such goods have been imported after such commencement, from the date such goods have come into use for commercial production, up to the date of payment of duty. (6) The importer executes a bond in such form and for such sum and with such security or surety as may be prescribed by the Assistant Commissioner of Customs, binding himself to fulfil the export obligations and conditions stipulated in this notification and in or under said Export and Import Policy and to pay on demand an amount equal to the duty leviable on the goods as are not proved to the satisfaction of the Assistant Commissioner of Customs to have been used in the manufacture of articles or in connection with the production or packaging or job work for export of goods or services out of India. (7) Notwithstanding anything contained in this notification the exemption herewith shall also apply to goods which on importation into India are used for the purpose of manufacture of articles within hundred per cent Export Oriented Unit and such articles (including rejects, waste and scrap material arising in the course of manufacture of such articles) even if not exported out of India, are allowed to be sold in India, in accordance with the Export and Import Policy, on payment of duty of excise leviable thereon under section 3 of the Central Excise Act, 1944 (1 of 1944) or where such articles (including rejects, waste and scrap material) are not excisable, on payment of customs duty on imported goods used for the purpose of manufacture of such articles in an amount equal to the customs duty leviable on such articles, as if imported as such. (8) The Commissioner of Customs may permit the goods imported into India or goods partially processed or manufactured or packaged therefrom to be taken outside the hundred per cent Export Oriented Unit concerned temporarily without payment of duty for the purposes of test, repairs, refining, processing, display, job work or any other operation necessary for manufacture of final product and return to the same unit subject to such conditions and limitations as may be specified by him in this behalf. (9) The Assistant Commissioner of Customs may allow supply or transfer of goods imported by or received from, a hundred per cent Export Oriented Unit or articles manufactured by such unit to another hundred per cent Export Oriented Unit or to a unit in Free Trade Zone or Export Processing Zone for the purpose of further manufacture and export or for export or for use in the said unit, subject to such conditions and limitations as prescribed by him. (10) The Development Commissioner may, subject to such condition as he may prescribe, permit a unit to re-export the goods. (11) Where the whole of the process of manufacture by a unit is not possible to be undertaken in bond, the Commissioner of Customs may, subject to such conditions as may be imposed by him, allow such unit to undertake such of the processes, as necessary, in customs bond. (12) The Assistant Commissioner of Customs may, subject to such conditions as he may prescribe, permit destruction of reject, waste and scrap material without the payment of duty, within the hundred per cent Export Oriented Unit or outside the said unit where it is not possible or permissible to destroy the same within the said unit. (13) Notwithstanding anything contained in this notification, the exemption contained herein shall also apply the spares and consumables, other than those specified in the Table below, to the extent of 1.5% of the ex-factory value of articles manufactured for export out of India by the undertaking during the preceding year or such percentage in excess thereof as the Central Government may in each individual case allow having regard to the recommendation made in this behalf by the said Board of Approvals for hundred per cent Export Oriented Unit for the purpose of supply of such spares and consumables with the export articles for after-sale-service subject to the condition that such supply is specifically stipulated in the relevant export contract and the Assistant Commissioner of Customs is satisfied that the value of such spares and consumable has been included for arriving at the value addition as required under said Export and Import Policy. 2. Nothing contained in this notification shall apply to goods imported by an acquaculture unit. 3. Notwithstanding anything contained in paragraph 1, in the case of units engaged in the development of computer software, data entry and conversion, data processing, data analysis and control or data management, the exemption contained therein shall also apply to goods imported by such unit for any or all of the said purposes, for export and for providing consultancy services for development of software `on site' abroad : Provided that - (a) the conditions stipulated in this notification are complied with by said unit; and (b) the procedure specified by the Commissioner of Customs is followed. Explanation. - Consultancy fees received by a unit in convertible foreign currencies for consultancy services for any or all of the said purposes `on site' abroad shall be deemed to be exports for the purposes of fulfilment of export obligation under this notification. 4. (i) The Notification No. 13/81-Cus., dated the 9th February, 1981 of the Government of India in the Ministry of Finance is hereby rescinded. (ii) Notwithstanding such rescission, anything done or action taken under notification so rescinded shall be deemed to have been done or taken under the corresponding provisions of this notification. TABLE (1) (2) Serial No. Description of goods 1. Capital goods. 2. Raw Materials. 3. Components. 4. Material handling equipments, namely, forklifts, overhead cranes, mobile cranes, crawler cranes, hoists and stackers. 5. Spares for capital goods and material handling equipments namely; forklifts, overhead cranes, mobile cranes, crawler cranes, hoists and stackers. 6. Consumables required for manufacture of goods and rendering services. 7. Samples/Prototypes, not exceeding two in number of each type of article covered by the manufacturing. 8. Drawing, blue prints, technical maps and charts, relating to the manufacturing activity. 9. Packaging materials. 10. Office equipment, spares and consumables thereof. 11. Captive power plants, including captive generating sets and their spares for such plants and sets as recommended by the said Board of Approvals. 12. Fuel, Lubricants and other consumables as approved by Commissioner of Customs on recommendation of the Development Commissioner. 13. Tools, Jigs, Gauges, Fixtures, Moulds, Dies, Instruments and Accessories. 14. Goods, re-imported within three years of the date of exportation for repair or re-conditioning.