Exemption to goods imported against advance licences - 116/88 - Customs -Tariff

Exemption to goods imported against advance licences Notification No. 116/88-Cus. Dated 30-3-1988 [Substitute as G.E. No. 147 at pages 283 to 288 of Customs Tariff 1988-89] 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. 44/87-Customs [G.S.R. 101(E)], dated the 19th February, 1987, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts goods imported into India against an Advance Licence issued under the Imports (Central) Order, 1955, being materials required to be imported for the purpose of manufacture of products (hereinafter referred to as the resultant products) or replenishment of materials used in the manufacture of the resultant products, or both, or for export as mandatory spares alongwith the resultant products, for execution of one or more export orders, 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) the materials imported are covered by a Duty Exemption Entitlement Certificate (hereinafter referred to as the said Certificate), issued by the licensing authority in the form specified in the Schedule to this notification, in respect of the value, quantity, description, quality and technical characteristics, as specified in Part 'C' of the said Certificate; (b) the importer at the time of clearance of the imported materials makes, - (i) a claim in writing to the Collector of Customs for such exemption and executes a bond or legal undertaking before such authority as may be approved by the Central Government for complying with the conditions specified in this notification; (ii) a declaration before the Assistant Collector of Customs binding himself to pay on demand an amount equal to the duty leviable but for the exemption, on the imported materials in respect of which the conditions specified in this notification have not been complied with; (c) the goods corresponding to the resultant products and the mandatory spares, in respect of value, quantity, description, quality and technical characteristics, as specified in Part 'E' of the said Certificate are exported within the time specified in the said Certificate or such extended period as may be granted by the licensing authority or the Committee; (d) the exempt materials shall be utilised for the manufacture of resultant products specified in Part 'E' of the said Certificate or for export as mandatory spares, and no portion thereof shall be sold, loaned, transferred or disposed of in any other manner. Provided that where such exempt materials are imported for replenishment of materials used in the manufacture of resultant products exported, holder of an Advance Licence, being a manufacturer exporter, may utilise the replenished materials for further production subject to actual user conditions : Provided further that the holder of an Advance Licence, not being a manufacturer exporter, may transfer the replenished materials to the supporting manufacturer concerned whose name appears in the said Certificate or to an actual user, for further production in accordance with the provisions of paragraph 244 in Chapter XIX of the Import and Export Policy April, 1988 - March, 1991; (e) in the case of goods being 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, the import shall be only through any of the sea ports at Kandla, Bombay, Cochin, Madras, Visakhapatnam and Calcutta or through any of the airports at Bombay, Calcutta, Delhi, Madras and Bangalore or through either of the internal container depots at Delhi or Bangalore, and the export of resultant products in which such goods are used shall be only through any of the said sea ports or airports or internal container depots; (f) the import of mandatory spares shall not exceed 5% of the CIF value of the Advance Licence; (g) materials imported for replenishment are on account of exports made between the date of receipt of the importer's application for Advance Licence by the licensing authority and the date of first import of materials by the importer under the Advance Licence. Explanation :- In this notification, - (i) "Canalising agency" shall have the same meaning as in the Import and Export Policy April, 1988 - March, 1991; (ii) "Committee" means the Inter-Departmental Committee as constituted by the Central Government under the Office Memorandum of the Government of India in the Ministry of Commerce, Office of the Chief Controller of Imports and Exports, No. 3/54/75-EPC, dated the 3rd December, 1975 and the Circular No. 9/30-85-EPC, dated the 28th June, 1985, for the time being in force, or as re-constituted by the Central Government from time to time; (iii) "Exempt materials" means the materials imported and specified in Part 'C' of the said Certificate and eligible for exemption from duty under this notification; (iv) "Import and Export Policy April, 1988 - March, 1991" means the Import and 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. (v) "Imported into India against an Advance Licence" includes - (a) goods imported under any Open General Licence issued under the Imports and Exports (Control) Act, 1947 (18 of 1947), for the time being in force, for which at the time of clearance out of Custom's Control, a valid Advance Licence is produced by the importer; (b) goods obtained from a canalising agency on high seas sale basis; (c) 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 requirements of Advance Licence 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); (vi) "licensing authority" means an authority competent to grant a 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 product which are to be compulsorily supplied as spares as per the relevant export order or contract for substitution if it becomes faulty or worn out; (viii) "materials" means goods which are raw materials, components, intermediate products or consumbles used in the manufacture of resultant products and their packings, or mandatory spares to be exported alongwith the resultant products; (ix) "resultant products" means the goods specified in Part 'E' of the said Certificate. SCHEDULE DUTY EXEMPTION ENTITLEMENT CERTIFICATE (This consists of _____________ pages) Serial No. __________Date of issue______________________ This is granted in favour of __________________________________ (Importer's name and __________________________________ full address) __________________________________ Materials imported against Advance Licence No. __________________ dated the _______________ issued by ________________ to the above importer and covered by the list of materials specified under Part C of this Certificate would be eligible for exemption from duty subject to the conditions specified in the notification of the Government of India in the Department of Revenue No. 116/88-Custums, dated the 30th March, 1988 (hereafter in this Schedule referred to as the said notification). The Importer shall make theexports in terms of condition(c) of the said notification within ______________ A bond/legal undertaking in terms of condition (b) of the said notification for Rs. _________ shall be executed with _______________ before the clearance of the goods from Customs. After completion of exports, this Certificate shall beproducedwith endorsements as required by Parts 'H' and 'I' therein fordischarge of the Bond/Legal undertaking before _____________ who afterdischarging the bond/legal undertaking shall return this Certificate to the issung authority. OFFICE SEAL Signature (Issuing Authority) Date : Bond(s) legal undertaking(s) in terms of condition (b) of the said notification executed on ___________ for Rs. ____________________ (Rupess ____________________ and registered order ______________with this office. OFFICE SEAL Signature (Issuing Authority) Date : PART A Names and addresses of factories of Advance Licence holder and supporting manufacturer where the resultant products for exports are manufactured. PART B Names and addresses of the factories of Advance Licence holder and supporting manufacturer where the ancillaries to the resultant products for exports are manufactured. PART C LIST OF MATERIALS Sl. No. Description Quality Technical Character-istics Quantity C.I.F. Value S. No. of the resul-tant pro-ducts in Part E. (1) (2) (3) (4) (5) (6) (7) PART D PARTICULARS OF IMPORTS (OF MATERIALS) Sl. No. S. No. of the materials in Part C Bill of entry No. and date and name of the Customs House of Import Description Quantity and net weight Value (1) (2) (3) (4) (5) (6) Duty leviable but for exemption Heading No. of the First Schedule to the Customs Tariff Act, 1975 and Heading No. in the Schedule to the Central Excise Tariff Act, 1985 for levy of additional duty. Rate of duty Amount of duty Signature of the Customs Officer with designation and seal. (i) Basic (ii) Additional (iii) Auxiliary (7) (8) (9) (10) PART E RESULTANTS PRODUCTS Sl. No. Descrip-tion Quality Technical Characteris-tics Quantity Value Sl. No. of the materials in Part C (1) (2) (3) (4) (5) (6) (7) PART F PARTICULARS OF EXPORTS Sl. No. Sl. No. of the resultant products in Part E Name of the Cutoms House of Shipment Shipping Bill No. and date Name of the vessel and date of out ward entry of the vessel (1) (2) (3) (4) (5) Quantity Net weight of the export product Description as per the Shipping Bill F.O.B. value Signature of the Customs Officer with designation and seal and remarks if any (6) (7) (8) (9) (10) PART G DUTIES PAID ON MATERIALS IN RESPECT OF WHICH THE CONDITIONS OF THE SAID NOTIFICATION ARE NOT COMPLIED WITH Sl. No. S. No. in Part D under which the import of the materials has been entered Description quantity and value of materials on which duty is paid Rate of duty leviable (i) Basic (ii) Additional (iii) Auxilliary (1) (2) (3) (4) Amount of Particular of duty paying documents Sign of the Customs Office with designation and seal (i) Duty (ii) Interest (5) (6) (7) PART H CERTIFICATE I, _____________________ (Name) Power of Attorney Holder of _____________(Importers) having their factory premises at _____________ in whose favour the Duty Exemption Entitlement Certificate Serial No. ____________________ dated _______________ has been granted, certify that - (a) the goods exported as specified in Serial No.(s) _________ of Part F have been manufactured in the factory premises mentioned in Part A/Part B; (b) the exempt materials as specified in Serial No.(s) __________ of Part D have been used in the manufacture of the goods exported as specified in Serial No.(s) _____________ of Part F [vide condition (d) of the said Notification]; (c) the exempt materials as specified in S. No. ________ of part D have been exported as mandatory spares as specified in S. No. ___________ of Part F; (d) materials corresponding to the exempt materials as specified in Serial No.(s) ________________ of Part D have been used in the manufacture of the goods exported as specified in Serial No.(s)___________ of Part F; (e) in respect of imported materials as specified in Serial No.(s) ______________ of Part D, duties have been paid as specified in Serial No.(s)___________of Part C. OFFICE STAMP Signature Designation Address Date : Witness PART I DISCHARGE OF BOND We request that Bond No./legal undertaking __________________may be discharged. Signature of the Importer. There is no objection to the cancellation of the bond/legal undertaking so far as the Customs Department is concerned. Signature of the Customs Officer at the Port of Registration Designation and Seal. Bond No./legal undertaking ___________________________ registered under Serial No. ____________ dated _____________ for Rs. _______________ (Rupees _________________) discharged on __________________ after having satisfied myself that all the conditions of the above bond/legal undertaking have been fulfilled. OFFICE SEAL Signature : Dated : Designation : 2. This notification shall come into force on the 1st day of April, 1988.