Exemption to Computer etc. falling under Chapters 84 & 85 - 260/90 - Customs -Tariff

Exemption to Computer etc. falling under Chapters 84 85 Notification No. 260/90-Cus. Dated 24-10-1990 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 column (3) of the Table hereto annexed (hereinafter in this notification referred to as the "said goods") and falling under Chapter or heading No. of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) specified in the corresponding entry in column (2) of the said Table, when imported into India, from - (a) so much of that portion of the duty of customs leviable thereon which is specified in the said First Schedule as is in excess of the amount calculated at the rates specified in the corresponding entry in column (4) of the said Table; and (b) the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act; subject to the conditions that the importer shall produce before the Assistant Collector of Customs at the time of the importation :- (a) a valid import licence authorising import of the said goods; (b) a certificate from an officer not below the rank of a Joint Director in the Department of Electronics of the Government of India that the said goods are imported under the policy on computer software export, software development and training announced by the Government of India in the Department of Electronics in 1986, recommending the grant of the above exemption; and (c) a certificate from the licensing authority that the importer has executed a bond accompanied by a bank guarantee for full amount of duty leviable on such goods but for the exemption contained herein, binding himself that he shall export computer software of not less than 300% of the CIF value of the said goods within a period of four years from the date on which the customs clearance for the First consignment of the said goods under the above-said licence was obtained and in case of failure to do so, pay an amount equal to the difference between the duty leviable on the said goods but for the exemption contained herein and the duty paid at the time of importation : Provided that the exemption to the goods specified at Sl. No. 4 of the said Table shall be limited to 30% of the total CIF value of the goods specified at Sl. Nos. 1 to 3 of said Table and an endorsement to that effect shall be indicated in the said import licence. 2. Nothing contained in this notification shall apply tothe said goods if they are imported under an Open General Licence issued under section 3 of the Imports and Exports (Control) Act, 1947 (18 of 1947). TABLE Sl. No. Chapter/heading No. Description of goods Rate (1) (2) (3) (4) 1. 84.71 Computer equipments 25% 2. 84 or 85 Software accompanying the computer equipments 25% 3. 84.73 Start-up spares 25% 4. 85.24 Application software NIL Explanation : In this notification, - (1) "application software" means software imported on a date subsequent to the date of import of computer equipments alongwith its accompanying software under this notification; (2) "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).