Goods (Other than Raw Materials) for the Manufacture of Components of Fuel-Efficient Motor Cars - 224/92 - Customs -Tariff

Goods (Other than Raw Materials) for the Manufacture of Components of Fuel-Efficient Motor Cars Notification No. 224/92-Cus Dated 19-6-1992 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 goods (other than raw materials) required for the manufacture of components of fuel-efficient motor cars of the description specified in column (2) of the Table hereto annexed 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 goods (other than raw materials) 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 the said components for use in the manufacture of fuel-efficient motor cars; (ii) the importer produces evidence to the Assistant Collector of Customs to the effect that the said goods (other than raw materials) 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 in the Ministry of Industry for the manufacture of the said components; (iii) the importer shall furnish an undertaking to the effect that - (a) the said imported goods shall be used for the purpose specified above; (b) an account of the said imported goods 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 imported goods 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; (iv) the importer produces a certificate from the Industrial Adviser in the Directorate General of Technical Development showing the details of the degree of indigenisation required to be achieved under the aforesaid programme and the actual degree of indigenisation achieved in the preceding financial year and in a case where the degree of indigenisation achieved in the preceding financial year is lower than the degree as per the approved programme, the importer also produces a certificate from an Officer not below the rank of a Joint Secretary in the Ministry of Industry (Department of Industrial Development) certifying that the failure in achieving the required degree of indigenisation is on account of valid reasons to be recorded in writing and that such failure is marginal. TABLE Sl. No. Description of the components (1) (2) 1. Carburettors 2. Auto electricals, namely :- (i) Starter Motor (ii) Alternator/Generator (iii) Voltage Regulator (iv) Wiring Harness 3. Steering gear assembly including collapsible and powered steering gear, steering linkage, tie rod ends and axle assembly 4. Clutch assemblies 5. Brake assemblies 6. Wiper assembly including wiper motors and washer motor assembly 7. Head lamp assembly 8. Shock absorber 9. Gear box 10. Dash board assemblies 11. Air suspension assembly 12. Water pump/thermostats 13. Mufflers 14. After burners for pollution control 15. Auto bulb assemblies 16. Fan Motors 17. Mac pherson struts 18. Distributor assembly 19. Fuel/Oil Pumps Explanation : For the purposes of this notification, "fuel-efficient motor car" means a motor car which is certified to run - (i) not less than 22 kilometres per litre of petrol in the case of motor car of engine capacity not exceeding 800 cubic centimetres; (ii) not less than 20 kilometres per litre of petrol in the case of motor car of engine capacity exceeding 800 cubic centimetres but not exceeding 1000 cubic centimetres; (iii) not less than 18 kilometres per litre of petrol in the case of motor car of engine capacity exceeding 1000 cubic centimetres but not exceeding 1400 cubic centimetres; or (iv) not less than 16 kilometres per litre of petrol in the case of motor car of engine capacity exceeding 1400 cubic centimetres, by an officer not below the rank of Deputy Secretary in the Ministry of Industry (Department of Industrial Development) (certificate issued in this regard hereafter referred to as the fuel-efficiency certificate) on the basis of tests (hereafter 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 - (i) with a payload of 300 kilograms in the case of motor car of engine capacity not exceeding 800 cubic centimetres; (ii) with a payload of 300 kilograms in the case of motor car of engine capacity exceeding 800 cubic centimetres but not exceeding 1000 cubic centimetres; (iii) with a payload of 375 kilograms in the case of motor car of engine capacity exceeding 1000 cubic centimetres but not exceeding 1400 cubic centimetres; (iv) with a payload of 450 kilograms in the case of motor car of engine capacity exceeding 1400 cubic centimetres; (b) for the purpose of measuring the engine capacity of a motor car, the cubic centimetre of the engine shall be rounded off to the nearest multiple of 10 (as per IS : 2); (c) the fuel-efficiency tests shall be conducted using petrol having an octane level not exceeding 87; (d) the fuel-efficiency tests shall be carried out on a selected level test track at a steady speed of 50 kilometres per hour 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 attitude and to + 25°C ambient temperature; (e) the fuel-efficiency tests shall be conducted on two motor cars selected at random by the testing agency from the production plant and the lowest of the test figures shall be relevant for the purpose of issuing fuel-efficiency certificates. 2 The fuel-efficiency certificate so issued shall be valid for a period of one year from the date of issue. 3 Where an importer is entitled for exemption under this notification but is not able to produce a fuel-efficiency certificate at the time of importation such importer shall undertake to the Assistant Collector of Customs that he will produce such fuel-efficiency certificate within a period of eight weeks or such further extended period not exceeding eight weeks as may be determined by the Collector of Customs and also undertake to pay an amount equal to the difference between the duty leviable but for the exemption contained herein and that already paid at the time of importation if he fails to produce the fuel-efficiency certificate within the said period.