Specified goods used for manufacture of Jewellery for export - 03/88 - Customs -Tariff

Specified goods used for manufacture of Jewellery for export Notification No. 3/88-Cus. Dated 14-1-1988 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 the goods specified in the Annexure to this notification (hereinafter referred to as the said goods), when imported into India for the purposes of use in the manufacture of jewellery for export out of India, by or on behalf of a hundred per cent export oriented undertaking in the Special Export Oriented Complex for the manufacture of jewellery at Jhandewalan, New Delhi (hereinafter referred to as the said Complex), from the whole of the duty of Customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), and from the whole of the additional duty, if any leviable thereon under section 3 of the said Customs Tariff Act, subject to the following conditions, namely :- (i) the importer has been authorised to establish a hundred per cent export oriented undertaking in the said Complex for the purpose of manufacture of jewellery for export out of India; (ii) the importer is covered, wherever, required, by a general or specific permit issued in this behalf by the Reserve Bank of India; (iii) the importer has been granted necessary licence for the import of the said goods; (iv) the importer carries out the manufacturing process or other operations in respect of jewellery in customs bond and subject to such other conditions as the Assistant Collector of Customs may, having regard to the circumstances of the case, specify in this behalf; (v) the importer shall not import gold of 0.999 fineness and purity except through the State Bank of India or any other agency designated for the purpose by the Government of India in the Ministry of Commerce and the identification mark on the gold of such fineness has been stamped by the India Government Mint, Bombay; (vi) the importer satisfies the Assistant Collector of Customs that the said goods so imported shall be used in the manufacture of jewellery for export out of India; (vii) the importer agrees to execute a bond in such form and for such sum and with such authority as may be specified by the Assistant Collector of Customs binding himself to fulfil the export obligation with the prescribed value addition and to fulfil, inter alia , the conditions stipulated in this notification and in the Letter of Approval or Intent or the Industrial Licence issued by the Board of Approval and to pay on demand an amount equal to the duty of customs leviable on the said goods as are not proved to the satisfaction of the Assistant Collector of Customs to have been used in the manufacture of the jewellery for export; (viii) the importer agrees to bring the said goods into the said Complex and use them within the said Complex in the manufacture of jewellery for export out of India; (ix) the importer agrees to export out of India all the jewellery manufactured within the said Complex for the period stipulated by the Board of Approval or such extended period as may be specified by the Board of Approval; (x) on expiry of the period referred to in condition (ix) above, the importer shall pay the following duties, namely :- (a) duty of customs on capital goods on depreciated value but at the rates of duty of customs prevalent at the time of import; (b) duty of customs on raw materials and on components on the value at the time of import and at the rates of duty of customs in force at the time of clearances; (xi) the importer shall maintain a proper account of import, consumption and utilisation of the said goods and of exports made by him and shall submit such account to the Assistant Collector of Customs, in such form, in such manner, at such intervals and within such time, as may be specified by the Collector of Customs; (xii) the importer agrees that the jewellery, including the waste, refuse and rejects thereof, manufactured in the said Complex, shall not be brought to any other place in India, for whatever purpose; (xiii) in the event of such a hundred per cent export oriented undertaking ceasing its operations, gold, other precious metals, alloys, gems and other material for the manufacture of jewellery shall be transferred to such person, undertaking, agency or authority, as the Government of India in the Ministry of Commerce may specify in this behalf; (xiv) the loss of gold in the said manufacturing process or other operations, not exceeding three percent in the case of studded, jewellery, and two per cent in the case of handicrafted or machine made plain jewellery, may be allowed by the Assistant Collector of Customs subject to fulfilment of such conditions as the Collector of Customs may think fit to specify, and in the case of findings and mountings and the like, the loss allowed shall be determined on the basis of the weight of the gold content of each findings, mountings and the like exported; (xv) the import and export of the said goods, other than the capital goods, under this notification shall be allowed only by air-freight through the Customs Airport at Delhi. Explanation. - For the purposes of this notification, - (a) "Board of Approval" means the Board referred to in clause (ii) of Explanation 2 to sub-section (1) of section 3 of the Central Excises and Salt Act, 1944 (1 of 1944); (b) "Hundred per cent export oriented undertaking" shall have the same meaning as in clause (ii) of Explanation 2 to sub-section (1) of section 3 of the Central Excises and Salt Act, 1944 (1 of 1944); (c) "Special Export Oriented Complex for the manufacture of jewellery at Jhandewalan, New Delhi" shall comprise of Blocks F and G of the Jhandewalan Flatted Factory Complex; New Delhi. ANNEXURE Description of goods 1. Capital Goods. 2. Raw Materials. 3. Components. 4. Spares of production machinery. 5. Consumables required for manufacture of goods. 6. Samples prototype, not exceeding two in number, of each type of articles covered by the manufacturing activity. 7. Drawing, blue-prints, technical maps and Charts, relating to the manufacturing activity. 8. Packaging materials. 9. Tools, jigs, Gauges, Fixtures, Moulds, Dies, Instruments and Accessories.