Exemption to goods imported into India for export under Import-Export Pass Book Scheme - 140/87 - Customs -Tariff

Exemption to goods imported into India for export under Import-Export Pass Book Scheme Notification No. 140/87-Cus. Dated 27-3-1987 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 notifi cation of the Government of India in the Ministry of Finance (Department of Revenue) No. 2/86-Customs, dated the 1st January, 1986, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts goods when imported into India either directly or obtained against a Release order for the purpose of manufacture of products (hereinafter referred to as the end products) or replenishment of goods used in the manufacture of end products, or both, and for export out of India as mandatory spares along with the end 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 or both the said Import-Export Pass Book and Release Order, for the import or, as the case may be, release of the goods required for the aforesaid purpose : (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 or, as the case may be, the said imported goods are specified in and covered by the Release Order, in respect of their value and description (including technical characteristics, if any); (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, if necessary, also the Release Order, 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 end products to be ex ported 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 or Trading House not being a manufacturer, the goods after import are transferred to supporting manufacturer whose name appear in the relevant Import-Export Pass Book for manufacture of end products and that complete accounts are maintained by such importer for the goods imported and transferred to supporting manufacturer; (e) that the end products and mandatory spares, as specified in the said Import-Export Pass Book, 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 Vishakha-patnam 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 Cantonment Railway Station at Bangalore and the end products shall be exported out of India only through any of the said Customs ports, Customs airports or inland container depots; (i) that the import of goods for replenishment shall be allowed where the said Import-Export Pass Book holder has to export the end 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 end 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 end products exported, the holder of Import-Export Pass Book being an exporter who is also a manufacturer may utilise the replenished materials for production of any goods subject to actual user conditions; Provided further that the licensing authority may consider the request of the holder of Import-Export Pass Book being an exporter who is not a manufacturer, for transfer of the replenished materials at landed cost, to the supporting manufacturer concerned, whose name appears in the said Import-Export Pass Book, for production of any goods subject to actual user conditions; Provided also that goods imported as 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 and furnish the same to the concerned licensing authority on demand; (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 Import-Export Pass Book. Explanation. - For the purposes of this notification, - (i) "canalising agency" shall have the same meaning as in the Import Export Policy April 1985 - March 1988; (ii) "goods" means goods which are in the nature of raw materials, components, intermediate products or consumables required for the manufacture of end products and their packings, or mandatory spares to be exported alongwith the end products; (iii) "Import-Export Pass Book Scheme" means the Import-Export Pass Book Scheme contained in Chapter XV of the Import and Export Policy, April, 1985 to March, 1988; (iv) "importer" includes holder of a Release Order; (v) "Licensing Authority" means an authority competent to grant an Import Licence under the Imports (Control) Order, 1955, made under the Imports Exports (Control) Act, 1947 (18 of 1947); (vi) "mandatory spares" means parts of the end products which are to be compulsorily supplied as spares to the end products under the relevant export order for the purpose of substitution of invalid or worn out parts of the end products; (vii) "obtained against Release Order" means goods obtained under and in accordance with a Release Order from a canalising agency or from a public sector trading and service agency, being the goods which are imported by the said agencies and warehoused in accordance with Chapter IX of the Customs Act, 1962 (52 of 1962); (viii) "public sector trading or service agency" shall have the same meaning as in the Import Export Policy April 1985 - March 1988, published under the Ministry of Commerce Public Notice No. 1 - ITC(PN)/85-88, dated the 12th April, 1985; (ix) "Release Order" means a Release Order issued by the Licensing Authority under the Import-Export Pass Book Scheme on the concerned canalishing agency or public sector trading and service agency, for the release of goods already imported and warehoused under Chapter IX of the Customs Act, 1962 (52 of 1962).