Prescribes a basic duty of 20% and nil additional duty on computer equipments, accompanying systems software (other than floppy diskettes) of cif value exceeding Rs. 3 Lakhs imported for execution of export contract on loan basis. - 116/90 - Customs -Tariff

Prescribes a basic duty of 20% and nil additional duty on computer equipments, accompanying systems software (other than floppy diskettes) of cif value exceeding Rs. 3 Lakhs imported for execution of export contract on loan basis. Notification No. 116/90-Cus. Dated 20-3-1990 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 the goods specified in column (3) of the Table annexed hereto and falling under Heading no. of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), specified in the corresponding entry in column (2) fo 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 rate of 20 per cent as 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) that the said goods are imported into India for a limited period, not exceeding one year from the date of payment of duty, under the Policy on Computer Software Export, Software Development and Training announced by the Government of India in the Department of Electronics in 1986 and published in the Gazette of India, Part I, Section I, dated the 27th December, 1986, and no foreign exchange has been remitted for the import of the said goods, and the importer produces a certificate to these effects from an officer not below the rank of a Joint Director in the Department of Electronics of the Government of India; (ii) that the importer undertakes to export the said goods within a period of one year from the date of payment of duty, and by the execution of a bond, in such form and for such sum as may be specified by the Assistant Collector of Customs, binds himself to pay on demand in respect of such goods as are not proved to the satisfaction of the Assistant Collector of Customs to have been exported within the said period of one year, an amount equal to the difference between the duty leviable on such goods, but for the exemption contained herein and that already paid; (iii) that the bond referred to in condition (ii) above shall also be supported by a bank guarantee for an amount equal to 25 per cent of the value of the said goods; (iv) that no drawback under sub-section (2) of section 74 of the said Customs Act shall be admissible on the said goods; (v) that the importer affirms at the time of cancellation of the bond referred in condition (ii) above that the software exported is the one which has been imported and no copy of the software has been made and kept in India: Provided that if the said goods are exported within a period of six months from the date of payment of duty, 10 per cent of the duty collected shall be refunded to the importer. THE TABLE S. No. Heading No. Description of goods (1) (2) (3) 1. 84.71 Computer equipment 2. 85.24 Accompanying systems software (other than on floppy diskettes) of cif value exceeding Rs. 3 lakhs of the computer equipment covered by S. No. 1 above.