Exemption to goods imported into India for export under Import-Export Pass Book Scheme - 117/88 - Customs -Tariff

Exemption to goods imported into India for export under Import-Export Pass Book Scheme Notification No. 117/88-Cus. Dated 30-3-1988 In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 140/87-Customs [G.S.R. 331(E)], dated the 27th March, 1987, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts goods when imported into India for the purpose of manufacture of products (hereinafter referred to as the resultant products) or replenishment of goods used in the manufacture of the resultant products, or both, and for export out of India as mandatory spares alongwith the resultant products, for execution of one or more export orders, in accordance with the Import-Export Pass Book Scheme, from the whole of the duty of customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), and from the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act, subject to the following conditions, namely :- (a) that the importer has been issued necessary Import-Export Pass Book (incorporating Import Licence) under the said Scheme; (b) that the said imported goods are specified in and are covered by the Import Licence or the enclosures to the Licence, incorporated in the said Import-Export Pass Book in respect of their value, quantity if any, description and technical characteristics; (c) that the importer at the time of the clearance of the said imported goods produces before the Assistant Collector of Customs, the said Import-Export Pass Book, and the importer, - (i) makes a claim, in writing, to the Collector of Customs for such exemption; and (ii) produces evidence to the Assistant Collector of Customs that the Bond with Bank Guarantee or, as the case may be, legal agreement has been executed by him as required under the said Scheme; and (iii) makes a declaration in such form and for such sum as may be specified by the Assistant Collector of Customs, binding himself to pay on demand in respect of such of the said imported goods as are not proved to the satisfaction of the Assistant Collector of Customs to have been used for the aforesaid purpose, an amount equal to the duty which would have been levied on such imported goods but for the exemption contained herein; (d) that the said imported goods, after clearance by Customs, are taken direct to the factory of manufacture of the resultant products to be exported and are duly and immediately entered into the records required to be maintained by the exporter as the manufacturer under the Central Excises and Salt Act, 1944 (1 of 1944) and the rules made thereunder, unless he is exempted thereunder from the maintenance of such records; Provided that where the importer is an Export House or Trading House, not being a manufacturer, the goods after import are transferred to supporting manufacturer, whose name appears in the relevant Import-Export Pass Book, for the manufacture of the resultant products, or to an actual user when the import of goods is for replenishment and there is no supporting manufacturer listed in the Import-Export Pass Book and that complete accounts are maintained by such importer for the goods imported and so transferred; (e) that the resultant products and mandatory spares, as specified in the said Import-Export Pass Book in respect of value, quantity (if any), description and technical characteristics are exported out of India within the period specified in the said Import-Export Pass Book or within such extended period as the Export Commissioner in the Office of the Chief Controller of Imports and Exports allow; (f) that the said imported goods shall be used for the purposes specified in this notification; (g) that the said imported goods or any portion thereof shall not be sold or loaned or otherwise transferred to any other person or utilised or permitted to be utilised or disposed of for any other purpose; (h) that the said goods shall be imported only through the Customs port of Kandla or Calcutta or Bombay or Cochin or Madras or Vishakhapatnam or only through the Customs airport at Calcutta or Bombay or Delhi or Madras or Bangalore or only through the inland container depot at Pragati Maidan at New Delhi or Bangalore Contonment Railway Station at Bangalore and the resultant products shall be exported out of India only through any of the said Customs ports, Customs airports or inland container depots; Provided that the resultant products may be exported also through the Customs Port of New Mangalore if such products are manufactured from goods other than nylon fibre, nylon yarn, nylon fabrics, polyester fibre, polyester yarn, polyester fabrics, stainless steel sheets, stainless steel strips, magnetic tapes, precious metals, metals clad with precious metals and articles thereof, (i) that the import of goods for replenishment shall be allowed where the said Import-Export Pass Book holder has to export the resultant product to meet a delivery schedule before he is able to import under the said Import-Export Pass Book, subject to the condition that such replenishment shall be permitted only to the extent of materials used in the manufacture of the resultant products exported prior to the date of first importation under the Import-Export Pass Book; Provided that where such goods are imported for replenishment of materials used in the manufacture of the resultant products exported, the holder of Import-Export Pass Book, being an exporter who is also a manufacturer, may utilise the replenished materials for the production of any goods subject to actual user conditions. Provided further that the holder of the said Import-Export Pass Book, not being a manufacturer-exporter, may transfer the replenished materials to the supporting manufacturer concerned, whose name appears in the said Import-Export Pass Book, or to an actual user, for further production in accordance with the provisions of paragraph 281 in Chapter XX of the Import-Export Policy April, 1988 - March, 1991; Provided also that goods imported for replenishment shall not be sold or disposed of in any other manner and the said Import-Export Pass Book holder shall maintain an account of imports of such goods and their actual utilisation; (j) the import of mandatory spares shall not exceed five per cent of the C.I.F. Value of the Import Licence incorporated in the said Import-Export Pass Book. Explanation. - For the purposes of this notification, - (i) "canalising agency" shall have the same meaning as in the Import and Export Policy April, 1988 - March, 1991; (ii) "goods" means goods which are in the nature of raw materials, components, intermediate products or consumables required for the manufacture of the resultant products and their packings, or mandatory spares to be exported alongwith the resultant products; (iii) Import-Export Policy April, 1988 - March, 1991 means the Import-Export Policy April, 1988 - March, 1991 published vide Public Notice of the Government of India in the Ministry of Commerce No. 1-ITC(PN)/88-91, dated the 30th March, 1988, as amended from time to time; (iv) imported into India includes - (a) goods obtained from a canalising agency on high seas sale basis; (b) goods obtained from a canalising agency or any other agency designated by the Chief Controller of Imports and Exports and allowed importation in bulk for servicing the requirement of the Import-Export Pass Book holders, where the goods are imported by the said agency and warehoused in accordance with the provisions of Chapter IX of the Customs Act, 1962 (52 of 1962); (v) "Import-Export Pass Book Scheme" means the Import-Export Pass Book Scheme contained in Chapter XX of the Import and Export Policy April, 1988 - March, 1991; (vi) "Licensing Authority" means an authority competent to grant Import Licence under the Imports (Control) Order, 1955 made under the Imports and Exports (Control) Act, 1947 (18 of 1947); (vii) "mandatory spares" means parts of the resultant products which are to be compulsorily supplied as spares to the resultant products under the relevant export order for the purpose of substitution of invalid or worn out parts of the resultant products. 2. This notification shall come into force on the 1st day of April, 1988.