Import of specified goods for use in manufacture of export goods by 100% E.O.U. exempted - 126/94 - Customs -Tariff

Import of specified goods for use in manufacture of export goods by 100% E.O.U. exempted Notification No. 126/94-Cus. Dated 3-6-1994 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 Annexure-I to this notification (hereinafter referred to as the goods), when imported into India, for the production or manufacture of articles specified in Annexure-II for export out of India or for being used in connection with the production, manufacture or packaging of the said articles specified in Annexure-II for export out of India (hereinafter referred to as the specified purpose) by hundred percent export oriented undertakings approved by the Board of Approvals for hundred percent Export Oriented Undertakings, appointed by the notification of the Government of India in the former Ministry of Industry and Civil Supplies (Department of Industrial Development) No. S.O. 163(E)/RLIU/10(2)76, dated the 3rd March, 1976, from the whole of the 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 second mentioned Act, subject to the following conditions, namely :- (1) the importer has been granted the necessary licence for the import of the said goods; (2) the importer, at the time of import of the said goods, produces to the Assistant Collector of Customs a certificate from the Development Commissioner to the effect that the importer has executed a bond in such form and for such sum as may be prescribed binding himself - (a) to bring the said goods into his unit and to use them for the specified purpose; and (b) to dispose of the said goods or the articles produced, manufactured or packaged in the unit or the waste, scrap or remanents arising out of such production, manufacture or packaging in the manner as may, if any, be prescribed in the Export Import Policy and in this notification; (3) the importer, at the time of import of the said goods, executes a bond with the Assistant Collector of Customs binding himself to produce a certificate from the Assistant Collector of Central Excise having jurisdiction over his unit certifying the receipt of the said goods in the unit and the goods having been entered in the records prescribed for this purpose; (4) the importer uses the goods for the production, manufacture or packaging of articles and exports out of India hundred per cent or such other percentage, as may be fixed by the said Board of Approvals for a period of 10 years or such extended period as may be specified by the said Board; (5) the importer shall maintain a proper account of import, consumption and utilisation of the said goods and of exports made by him, and shall submit such account periodically to the Development Commissioner in such form and in such manner as may be laid down by the said Development Commissioner; (6) the Assistant Collector of Customs may, subject to such conditions and limitations as may be imposed by him and subject to the provisions of the Export Import Policy - (a) allow a unit to re-export the said goods; (b) permit the said goods or goods produced, manufactured or packaged in the unit to be taken out temporarily without payment of duty for repairs, processing, testing or display and to be returned to the unit thereafter; and (c) permit the said goods or goods produced, manufactured or packaged to be supplied/transferred without payment of duty from the unit to another hundred percent Export Oriented Undertaking or to a unit in an Export Processing Zone or a Free Trade Zone. 2. Without prejudice to any other provisions contained in this notification, where it is shown to the satisfaction of the Assistant Collector of Customs that the said unit has been allowed by the Development Commissioner or the Board of Approvals in accordance with the Export Import Policy to clear any of the said goods for being taken to any other place in India, - (a) such clearance of capital goods and office equipments may be allowed on payment of an amount equal to the customs duty leviable on such goods on the depreciated value thereof and at the rate in force on the date of payment of such duty; (b) such clearance of goods (including containers 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, polythelene 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 98.01 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), or the exemption available to goods imported under the Export Promotion Capital Goods (EPCG) Scheme in terms of the Export and Import Policy of any other Export Promotion Schemes. 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, upto the date of payment of duty. Notwithstanding anything contained in this notification the exemption contained herein shall also apply to the said goods which on importation into India are used for the purposes of production, manufacture or packaging of articles and such articles (including rejects, waste and scrap material arising in the course of production, manufacture or packaging of such articles) even if not exported out of India are allowed to be sold in India under and in accordance with the Export-Import Policy and in such quantity and subject to such other limitations and conditions as may be specified in this behalf by the Development Commissioner, on payment of duty of excise leviable thereon under section 3 of the Central Excises and Salt Act, 1944 (1 of 1944) or where such articles (including rejects, waste and scrap material) are not excisable, on payment of customs duty on the said goods used for the purpose of production, manufacture or packaging of such articles in an amount equal to the customs duty leviable on such articles as if imported as such. Explanation. - For the purposes of this notification, "Export-Import Policy" means the Export-Import Policy, April, 1992 - March, 1997, published under the Ministry of Commerce Public Notice No. 1-ITC(PN) 92-97, dated the 31-3-1992 as amended from time to time. ANNEXURE-I 1. Green house equipment, accessories, heated rooting tables, propagation trays, seeding machines. 2. Plants or parts thereof, seeds, saplings, tubers, bulbs, Rhizoms, roots, cuttings, all types of grafts, tissue culture material, and other vegetatively propagated material utilised for sowing or planting. 3. Live animals such as pure live stocks (other than grand parent stock and parent stock), used for breeding or rearing purposes, other than horses. 4. Growing media such as Peat Moss (including peat litres) (whether or not agglomerated), Pearlite/ Vermiculate, Rockwool, Cocoa Peat, Hydrocorn, Foam based medium and other cultivation medium. 5. Office equipments as permissible for import by the 100% export oriented unit. 6. Fertilizers and chemicals for pre and post harvest treatments such as micro nutrients, plant and growth regulators and other organic and inorganic substances used for plant nutrition, insecticides, fungicides, weedicides, herbicides, and the like. 7. Animal feed such as cattle feed and poultry feed. 8. Veterinary medicines including vaccines. 9. Packaging materials including machinery and equipment for packaging. ANNEXURE-II 1. Live animals falling under Chapter 1. 2. Bird's eggs (fresh) in shells of Heading 04.07. 3. Live trees and other plants; bulbs, roots and the like, cut flowers and ornamental foliage of Chapter 6. 4. Fresh vegetables of Headings 7.01 to 7.09; whole uncut sun dried vegetables of Headings 7.12 and 7.13; Fresh and uncut/sun dried roots and tubers of Heading 7.14. 5. Fresh and uncut/sun dried edible fruits and nuts of Headings 08.01 to 08.10. 6. Fresh or sun dried plants and parts of plants of heading 12.11. 7. Silk worm cocoons of Heading 50.01 and raw silk of heading 50.02. Note - The Chapters and Headings referred to in the Annexure are those of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).