Effective rate of duty on components imported by the manufacturers of fuel-efficient motor cars of engine capacity not exceeding 1000CC manufactured under approved P.M.P. for providing warranty coverage or after sales service to their customers - 032/88 - Customs -Tariff

Effective rate of duty on components imported by the manufacturers of fuel-efficient motor cars of engine capacity not exceeding 1000CC manufactured under approved P.M.P. for providing warranty coverage or after sales service to their customers Notification No. 32/88-Cus. Dated 1-3-1988 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 (including components of fuel-efficient motor cars in semi-knocked down packs and completely knocked down packs), falling under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India, for the manufacture of fuel-efficient motor car of engine capacity not exceeding 1000 cubic centimetres, 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 25 per cent ad valorem; and (b) the whole of the additional duty of customs leviable thereon under section 3 of the said Customs Tariff Act, subject to the following conditions, namely :- (i) the exemption contained herein shall be applicable only to those components (including components of fuel-efficient motor cars in semi-knocked down packs and completely knocked down packs) which are covered by lists certified by an officer not below the rank of an Industrial Adviser or Additional Industrial Adviser in the Directorate General of Technical Development to be required for the manufacture of fuel-efficient motor cars of engines capacity not exceeding 1000 cubic centimetres ; (ii) the importer produces evidence to the Assistant Collector of Customs to the effect that the said components (including components of fuel-efficient motor cars in semi-knocked down packs and completely knocked down packs) have been imported by such importer under a programme duly approved by the Ministry of Industry (Department of Industrial Development) and the Industrial Adviser or the Additional Industrial Adviser in the Directorate General of Technical Development in the Ministry of Industry for the manufacture of fuel-efficient motor cars of engine capacity not exceeding 1000 cubic centimetres ; (iii) the importer furnishes an undertaking to the effect that - (a) the said components (including components of fuel-efficient motor cars in semi knocked down packs and completely knocked down packs) shall be used for the purpose specified above; (b) an account of the said component parts received and consumed in the place of manufacture for the aforesaid purpose shall be maintained in the manner specified by the Assistant Collector of Customs ; (c) he shall produce the extract of such account duly certified by the manufacturer evidencing receipt of the said component parts in the premises of the place of manufacture within a period of 3 months or such extended period as the Assistant Collector of Customs may allow ; and (d) he shall pay, on, demand, in the event of his failure to comply with (a), (b) or (c) above, an amount equal to the difference between the duty leviable on such quantity of the said imported goods but for the exemption contained herein and that already paid at the time of importation; and (iv) the importer produces a certificate from the Industrial Adviser in the Directroate General of Technical Development showing the details of the degree of indigenisation required to be achieved under the aforesaid programme and the actual degree of indigenisation achieved in the preceding financial year and in a case where the degree of indigenisation achieved in the preceding financial year is lower than the degree as per the approved programme, the importer also produces a certificate from an officer not below the rank of a Joint Secretary in the Ministry of Industry (Department of Industrial Development) certifying that the failure in achieving the required degree of indigenisation is on account of valid reasons to be recorded in writing and that such failure is marginal. Explanation : For the purposes of this notification, "fuel-efficient motor car" in respect of a motor car of engine capacity not exceeding 1000 cubic centimetres means a motor car which is certified to run not less than 20 kilometres per litre of petrol by an officer not below the rank of a Deputy Secretary in the Ministry of Industry Department of Industrial Development (certificate issued in this regard hereinafter referred fuel-efficiency certificate) on the basis of the tests (hereinafter referred to as the fuel-efficiency test) carried out by the Vehicle Research Development Establishment of the Ministry of Defence, Ahmednagar (Maharashtra) having regard to the following, namely :- (a) the fuel-efficiency test shall-be conducted with a payload of 300 kilograms ; (b) the fuel-efficiency test shall be conducted using petrol having an octane level not exceeding 87 ; (c) the fuel-efficiency test shall be carried out on a selected level test track at a steady speed of 50 kilometres per hour for a minimum stretch of one kilometre and the average of 20 runs, comprising of 10 runs in each direction, shall be taken for carrying out the test and the test figures shall be corrected to sea level altitude and to +25°C ambient temperature ; and (d) the fuel-efficiency test shall be conducted on five motor cars selected at random by the testing agency from the production plant and the lowest of the test figures shall be relevant for the purpose of issuing fuel-efficiency certificate. 2. The fuel-efficiency certificate so issued shall be valid for a period of six months from the date of issue. 3. Where an importer is entitled to exemption under this notification but is not able to produce a fuel-efficiency certificate at the time of importation such importer shall undertake to the Assistant Collector of Customs that he will produce such fuel-efficiency certificate within a period of eight weeks or such further extended period not exceeding eight weeks as may be determined by the Collector of Customs and also undertake to pay an amount equal the difference between the duty leviable but for the exemption contained herein and that already paid at the time of importation, if he fails to produce the fuel-efficiency certificate within the said period. 4. This notification shall be in force upto and inclusive of the 31st day of March, 1990.