Exemption to components of light commercial motor vehicles - 222/87 - Customs -Tariff

Exemption to components of light commercial motor vehicles Notification No. 222/87-Cus. Dated 20-5-1987 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 of light commercial motor vehicles (including components of light commercial motor vehicles in semi-knocked down packs and completely knocked down packs) required for the manufacture of light commercial motor vehicles of pay load not exceeding 4,000 kilograms, from :- (a) so much of the duty of Customs, which is leviable thereon under the First Schedule to the Customs, Tariff Act, 1975 (51 of 1975) as is in excess of the amount calculated at the rate of 10 per cent ad 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) the exemption contained in this notification shall be applicable only to those components of light commercial motor vehicles (including components of light commercial motor vehicles 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 light commercial motor vehicles; (ii) the importer produces evidence to the Assistant Collector of Customs to the effect that the said components (including components of light commercial motor vehicles 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 of the Directorate General of Technical Development in the Ministry of Industry for the manufacture of such light commercial motor vehicles; and (iii) the importer shall furnish an undertaking to the effect that :- (a) the said components shall be used for the purpose specified above; (b) an account of the said components 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 components 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. 2. The exemption contained in this notification shall be applicable, on or after the 1st day of July, 1987, only to those components of light commercial motor vehicles (including components of light commercial motor vehicles in semi-knocked down packs and completely knocked down packs) required for the manufacture of light commercial motor vehicles of pay load not exceeding 4,000 kilograms, which are certified to be fuel-efficient light commercial motor vehicles by an officer not below the rank of a Deputy Secretary in the Ministry of Industry (Department of Industrial Development). Explanation . - For the purposes of this notification, "fuel efficient light commercial motor vehicle" means a motor vehicle which satisfies the specific fuel consumption and nett- tonne kilometre moved as specified in columns (3), (4) and (5) respectively of the Table hereto annexed, and certified accordingly by an officer not below the rank of a Joint Secretary to the Government of India in the Ministry of Industry on the basis of the tests (hereinafter referred to as fuel-efficiency test) carried out by the Vehicle Research Development Establishment of the Ministry of Defence, Ahmednagar (Maharashtra) or the Automotive Research Association of India, Pune (Maharashtra), having regard to the following, namely :- (a) the fuel efficiency test shall be conducted with the cab and body provided by the manufacturer and with the maximum authorised payload determined in accordance with IS : 9211-1979; and (b) the fuel efficiency test shall be conducted using diesel having cetane level of 42; and (c) the fuel efficiency test shall be carried out on a selected level test track at a steady speed of 40 kilometres per hour or 60 kilometres per hour, as the case may be, for a maximum stretch of one kilometre and the average of 20 runs, comprising 10 runs in each direction, shall be taken for carrying out the tests and the test figures shall be corrected to sea level altitude and to + 25°C ambient temperature; and (d) the specific fuel consumption shall be taken as the minimum value at full load and full throttle in accordance with testing conditions stipulated in IS : 10000 (Part VIII)-1980. TABLE Sl. No Description of motor vehicles Specific fuel consumption per KW. hour not exceeding Net Tonne Kilometre MOVED PER LITRE OF DIESEL NOT LESS THAN At 40 KMPHat 60 KMPH (1) (2) (3) (4) (5) 1. Light commercial motor vehicles of payload not exceeding 2,000 kilograms 240 grams 35 28 2. Light commercial motor vehicles of payload exceeding 2,000 kilograms but not exceeding 4,000 kilograms. 240 grams 40 32