Components Imported for Manufacture of Capital Goods for Supply to a Person Holding a Licence under EPCG Scheme - 161/92 - Customs -Tariff

Components Imported for Manufacture of Capital Goods for Supply to a Person Holding a Licence under EPCG Scheme Notification No. 161/92-Cus. Dated 20-4-1992 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 required for the manufacture of capital goods, when imported into India by a manufacturer of such capital goods for supply to a person holding a licence under the Export Promotion Capital Goods (EPCG) Scheme in terms of the Export and Import Policy (hereinafter referred to as the Policy) for import of capital goods, from - (a) so much of the duty of customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), as is in excess of the amount calculated at the rate of 15% ad valorem; and (b) the whole of additional duty leviable thereon under section 3 of the said Customs Tariff Act, subject to the following conditions, namely :- (i) the goods are imported under, and in accordance with, a licence (hereinafter referred to as the said licence) granted by the licensing authority for the purpose of paragraph 46 of the Policy for the aforesaid purpose; (ii) the said licence specifies, inter alia, - (a) the description, quantity and value of components to be imported under the said licence; (b) the description, quantity and value of the capital goods to be manufactured; (iii) the importer complies with all the requirements specified in the Policy, in respect of the said licence; (iv) the importer executes a bond, in such form and for such sum, as may be specified by the Assistant Collector of Customs at the port of importation to the effect that - (1) the components shall be used for the purpose specified above and that the capital goods manufactured by the importer shall be supplied to the person holding the licence under the Export Promotion Capital Goods (EPCG) Scheme in terms of the Policy for import of capital goods; (2) the account of the said components received and consumed in the factory of the importer for the aforesaid purpose shall be maintained; (3) he shall produce a certificate issued by the Assistant Collector of Customs or Central Excise in whose jurisdiction the unit receiving the capital goods is situated, indicating the description and quantity of such capital goods supplied by the importer within a period of three months or such extended period as the Assistant Collector of Customs at the port of importation may allow; and (4) he shall pay, on demand, in the event of his failure to comply with any of the above conditions, the duty leviable on the components but for the exemption contained herein. Explanation. - In this notification, - (i) "capital goods" means any plant, machinery, equipment or accessories required by an importer for manufacture of goods and shall include machinery for packing goods, testing equipment and equipment required for Research and Development activity; (ii) "Export and Import/Policy" means the Export and Import Policy, 1 April 1992 - 31 March 1997 published vide Public Notice of the Government of India in the Ministry of Commerce No. 1-ITC(PN)92-97 dated the 31st March, 1992; (iii) "Licensing authority" means an authority competent to grant a licence under the Import (Control) Order, 1955, made under the Imports and Exports (Control) Act, 1947 (18 of 1947).