Specified goods imported for manufacture and development of electronics hardware, or electronics hardware and software in an integrated manner in the Electronics Hardware Technology Park Complex - 95/93 - Customs -Tariff

Specified goods imported for manufacture and development of electronics hardware, or electronics hardware and software in an integrated manner in the Electronics Hardware Technology Park Complex Notification No. 95/93-Cus. Dated 2-3-1993 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 purposes of manufacture and development of electronics hardware, or electronics hardware and software in an integrated manner, by units in the Electronics Hardware Technology Park Complex under the 100 per cent ex port-oriented scheme, approved in this behalf by the Iner-Ministerial Standing Committee (hereinafter referred to as the 'Committee') appointed by notifica tion of the Government of India in the Department of Industrial Development S. O. No. 117(E) dated the 22nd February, 1993 (as amended) 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 necessary approval by the Committee, for the import of goods for the said purposes; (2) The importer carries out the manufacture or development or both of the electronics hardware or software under customs bond and subject to such other conditions, as may be specified by the Assistant Collector of Customs in this behalf; (3) The importer exports out of India hundred per cent, or such other percentage, as may be fixed by the Committee, of electronics hardware or software manufactured wholly or partly from the goods for the period stipulated by the Committee or such extended period, as may be specified by the Committee: Provided that all such exports are made against freely convertible foreign currency; (4) On the clearance of electronics hardware as 'rejects' to be sold in India to the extent of five per cent of electronics hardware so manufactured or such other percentage as may be fixed by the Committee, the importer shall pay a sum equivalent to the duty of excise payable on such articles under section 3 of the Central Excises Salt Act, 1944 (1 of 1944), which have not been exported; (5) The importer agrees — (a) to bring the goods into the unit and use them within the unit in connection with the manufacture or development or both of electronics hardware or software for export; (b) not to move the goods from the unit without the approval of the Assistant Collector of Customs; (c) to export out of India all electronics hardware or software manufactured in the unit; (6) The importer shall produce a certificate to the Assistant Collector of Customs from the designated officer to the effect that the goods imported are to be installed or used in the unit and that the import of such goods has been authorised by the Committee; (7) On the expiry of the period referred to in the condition (3), the importer shall pay the following duties, namely :- (a) customs duty on capital goods, material handling equipment, office equipment, captive power plant, or as the case may be, captive generating sets on the depreciated value but at the rates prevalent at the time of import; and (b) customs duty on unused imported raw materials or components on the value at the time of import and at the rates in force at the time of clearance. (8) The importer executes a bond in such form and for such sum and with such authority, as may be prescribed by the Assistant Collector of Cus toms, binding himself to fulfil the export obligations and conditions under this notification, conditions under the 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 Collector of Customs to have been used in the manufacture or development of electronics hardware or software for ex port. (9) The scrap or waste material arising in the course of manufacture of the said electronics hardware may be cleared from such unit on payment of an amount equal to the duty which would have been leviable on the said scrap or waste material had it been imported as such scrap or waste material: Provided that the percentage of the said scrap or waste material does not exceed the percentage fixed in this regard by the Committee : Provided further that if the percentage of the said scrap or waste material exceeds the percentage fixed in this regard by the said Committee, an amount equal to the duty leviable on the mother material, out of which the scrap or waste material has arisen, shall be charged on the excess quantity; (10) The procedure, as may be prescribed by the Collector of Customs, is followed by such unit; (11) The Collector of Customs may, subject to the conditions and limita tions stipulated in the Export Import Policy, and the procedure as amended from time to time, permit the goods imported into India for the purposes afore said or the electronics hardware manufactured to be taken temporarily outside the unit without payment of duty, for repairs or display, as the case may be, and the importer shall be bound to comply with such conditions and limitations; (12) The Assistant Collector of Customs may allow the supply or transfer of goods imported by a unit or electronics hardware or software manufactured by such a unit to any other hundred per cent export oriented undertaking, subject to the necessary conditions prescribed by him and neces sary permission granted by the Committee; (13) The Collector of Customs may, subject to such conditions as may be prescribed by him, allow a unit to re-export goods, subject to necessary permission granted by the designated officer; (14) The exemption to goods mentioned against entry at Sl. No. 12 of the Table below shall be available for such items and to such extent as the Central Government may, in each case, allow having regard to the recommen dations made in this behalf by the Committee; (15) Notwithstanding anything contained in this notification, the ex emption contained herein shall also apply to — (a) goods which on importation into India are used in the manufacture or development of electronics hardware or software within the unit and such hardware or software, even if not exported out of India, is allowed to be sold in India, under and in accordance with the Export and Import Policy, and in such quantity and subject to such limitations and conditions as may be specified in this behalf by the Committee on payment of duty of excise on such hardware or software under section 3 of the Central Excises and Salt Act, 1944 (1 of 1944); (b) spares and consumables other than those specified in the Table, to the extent of 1.5% of the ex-factory value of manufacture of articles for export out of India by the unit during the preceding year or such percentage in excess thereof as the Central Government may, in each individual case allow having regard to the recommendations made to it in this behalf by the Committee 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 Collector of Cus toms is satisfied that the value of such spares and consumables have been included for arriving at the value addition as required under the said Export and Import Policy: Provided that sale of software within India shall not be allowed through data communication link or telecommunication link. 2. Notwithstanding anything contained in paragraph 1 of this notification, the exemption contained therein shall also apply to goods imported by an agency authorised by the Committee to set up an Electronics Hardware Technology Park Complex for creating central facilities for use by a unit in such a complex subject to the satisfaction of the conditions in paragraph 1 of this notification. Explanation. - For the purposes of this notification,— (a) "designated officer" means an officer designated by the Department of Electronics in pursuance of the notification of the Government of India in the Ministry of Commerce No. 42(N-8)/92-97, dated the 14th September, 1992; (b) "Export and Import Policy" means the Export and Import Policy 1 April, 1992 - 31 March, 1997 published under the Ministry of Commerce Public Notice No. 1-ITC(PN)/92-97, dated the 31st March, 1992, as amended from time to time. THE TABLE Sl. No. Description of Goods (1) (2) 1. - Capital goods 2. - Raw materials 3. - Components 4. - Spares of capital goods 5. - Material handling equipment, namely, forklifts, overhead cranes, mobile cranes, crawler cranes, hoists and stackers. 6. - Consumables required for the manufacture of goods. 7. - Sample/proto-types, not exceeding two' in number of each type of electronics hardware/software covered by the manufacturing activity. 8. - Drawing, blue prints, technical maps, charts, relating to the manufacturing activity. 9. - Packaging materials. 10. - Office equipment. 11. - Tools, jigs, gauges, fixtures, moulds, dies, instruments and accessories. 12. - Captive power plants including captive generating sets and their spares, fuel, lubricants and other consumables for such plants and sets, as recommended by the Stand ing Committee.