Components of Motor Vehicles in CKD and SKD Packs for Manufacture of Motor Vehicles of Engine Capacity not Exceeding 1000 CC excluding certain specified motor vehicles - 231/92 - Customs -Tariff

Components of Motor Vehicles in CKD and SKD Packs for Manufacture of Motor Vehicles of Engine Capacity not Exceeding 1000 CC excluding certain specified motor vehicles Notification No. 231/92-Cus. Dated 26-6-1992 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 components of motor vehicles (including components of motor vehicles in semi-knocked down packs and completely knocked down packs) required for the manufacture of motor vehicles of engine capacity not exceeding 1000 cubic centimetres (excluding commercial motor vehicles, motor cars, three-wheeled motor vehicles and two-wheeled motor vehicles) from - (a) so much of the duty of customs which is leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), as is in excess of the amount calculated at the rate of 40 per cent ad valorem; and (b) 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 exemption contained herein shall be applicable only to those components of motor vehicles (including components of motor vehicles in semi-knocked down packs and completely, knocked down packs) which are covered by lists certified by an officer not below the rank of an Industrial Adviser or Additional Industrial Adviser in the Directorate General of Technical Development to be required for the manufacture of motor vehicles of engine capacity not exceeding 1000 cubic centimetres (excluding commercial motor vehicles, motor cars, three-wheeled motor vehicles and two-wheeled motor vehicles); (ii) the importer produces evidence to the Assistant Collector of Customs to the effect that the said components have been imported by such importer under a programme duly approved by the Ministry of Industry (Department of Industrial Development) and the Industrial Adviser or the Additional Industrial Adviser of the Directorate General of Technical Development for the manufacture of such motor vehicles; and (iii) the importer furnishes an undertaking to the effect that - (a) the said components shall be used for the purpose specified above; (b) an account of the said components received and consumed in the place of manufacture for the aforesaid purpose shall be maintained in the manner specified by the Assistant Collector of Customs; (c) he shall produce the extract of such account duly certified by the manufacturer evidencing receipt of the said components in the premises of the place of manufacture within a period of 3 months or such extended period as the Assistant Collector of Customs may allow; and (d) he shall pay, on demand, in the event of his failure to comply with (a), (b) or (c) above, an amount equal to the difference between the duty leviable on such quantity of the said imported goods but for the exemption contained herein and that already paid at the time of importation. 2. The exemption contained in this notification shall be applicable only to those components of motor vehicles (including components of motor vehicles in semi-knocked down packs and completely knocked down packs) required for the manufacture of motor vehicles of engine capacity not exceeding 1000 cubic centimetres (excluding commercial motor vehicles, motor cars, three-wheeled motor vehicles and two-wheeled motor vehicles), which are certified to be fuel-efficient motor vehicles by an officer not below the rank of a Deputy Secretary to the Government of India in the Ministry of Industry (Department of Industrial Development). Explanation. - For the purpose of this notification, "fuel-efficient motor vehicles", means a petrol driven motor vehicle of engine capacity not exceeding 1,000 cubic centimetres (excluding commercial motor vehicles, motor cars, three-wheeled motor vehicles and two-wheeled motor vehicles) which runs not less than 19 kilometres per litre of petrol; and is certified accordingly by an officer not below the rank of a Deputy Secretary in the Ministry of Industry (Department of Industrial Development) on the basis of the tests (hereinafter referred to as the fuel-efficiency test) carried out by the Vehicle Research Development Establishment of the Ministry of Defence, Ahmednagar (Maharashtra) or the Automotive Research Association of India, Pune (Maharashtra), having regard to the following, namely :- (a) the fuel-efficiency test shall be conducted with a payload of 500 kilograms using petrol having an octane level not exceeding 87 at a steady speed of 50 kilometres per hour; (b) the fuel-efficiency test shall be carried out on a selected level test track for a minimum stretch of one kilometre and the average of 20 runs, comprising of 10 runs in each direction, shall be taken for carrying out the tests and the test figures shall be corrected to sea level altitude and to + 25°C ambient temperature; (c) detailed fuel efficiency testing procedures shall be as specified by the Ministry of Industry (Department of Industrial Development).