Exemption to specified goods imported for production of goods for export - 340/86 - Customs -Tariff

Exemption to specified goods imported for production of goods for export Notification No. 340/86-Cus. Dated 13-6-1986 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 goods specified in the Annexure to this notification (hereinafter referred to as the goods), when imported into India for the production of goods for exports out of India or for being used in connection with the production or packaging of goods for exports out of India or for the promotion of such exports by units within the COCHIN EXPORT PROCESSING ZONE, COCHIN (KERALA STATE), (hereinafter referred to as the Zone) comprising of places bearing the survey numbers and enclosed by the boundaries specified in paragraph 5 from the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and the additional duty, if any, leviable thereon under section 3 of the second-mentioned Act, subject to the following conditions, namely:- (i) the importer has been authorised to establish a manufacturing unit or units in the Zone; (ii) the importer has been granted necessary licence for the import of goods; (iii) the importer satisfies the Development Commissioner of the Zone that the goods so imported will be used for the production of goods for exports out of India or in connection with the production or packaging of goods for export out of India or with the promotion of such exports of goods; (iv) the importer agrees to execute a bond in such form and for such sum as has been prescribed by the Development Commissioner of the Zone binding himself to fulfil the export obligations and to fulfil, inter alia the conditions stipulated in this notification; (v) the importer agrees:- (a) to bring the goods into the Zone and use them within the Zone for the production of goods for exports out of India or in connection with the production or packaging of goods for export out of India or with the promotion of such exports of goods; (b) to export out of India, all goods so produced or packaged or to use such goods for imparting training to workers or to sell such goods (or packages) within the Zone, as the case may be; (c) to export or dispose of in the manner approved by the Development Commissioner of the Zone all remants arising our of such production or packaging; (vi) the importer shall maintain a proper account of import, consumption and utilisation of goods and of exports made by him, and shall submit such account periodically to the Development Commissioner, of the Zone in such form and in such manner as may be laid down by the said Commissioner; (vii) the importer shall pay, on demand, an amount equal to the duty leviable, (a) on goods which are capital goods as are not proved to the satisfaction of the Collector of Customs to have been:- (i) installed or otherwise used within the Zone or re-exported within a period of one year from the date of importation thereof or within such extended period as the Collector of Customs may, on being satisfied that there is sufficient cause for not using them within the Zone or for not re-exporting them within the said period, allow; (ii) retained within the Zone after installation or use inside the Zone; (b) on goods other than capital goods as are not proved to the satisfaction of the Collector of Customs to have been:- (i) used in connection with the production or packaging of goods (within the Zone) for export out of India or with the promotion of such export of goods or re-exported within a period of one year from the date of importation thereof or within such extended period as the Collector of Customs may, on being satisfied that there is sufficient cause for not using them or for not re-exporting them within the said period allow; (ii) retained within the Zone in connection with the production or packaging of goods for export out of India or with the promotion of such exports of goods; (c) on goods so produced or packaged as have not been exported out of India and on unused goods (including empty cones, bobbins or containers, if any suitable for repeated use) as have not been exported, within a period of one year from the date of importation of such goods or within such extended period as the Collector of Customs may on being satisfied that there is sufficient cause for not exporting such goods within the said period, allow; (viii) the Collector of Customs may, subject to such conditions and limitations as may be imposed by him, permit any goods imported or goods produced or packaged therefrom to be taken outside the Zone temporarily without payment of duty for repairs, processing or display and the importers shall be (ix) bound to comply with such conditions and limitations; (x) subject to the satisfaction of the Collector of Customs, duty shall not be leviable in respect of the following goods, namely:- (a) goods lost or destroyed not due to any wilful act, negligence or default of the importer, his employee or agent; (b) goods damaged or deteriorated not due to any wilful act, negligence or default of the importer, his employee or agent and therefore, not suitable for use in the production of goods or packaging within the Zone; (c) scrap or waste material arising in the course of such production if such scrap or waste material is within such limits as may be specified in this behalf by the Central Government and destroyed within the Zone; (d) samples of goods produced or packaged in the Zone which are allowed by the Collector of Customs to be sent for test outside the Zone subject to such conditions as he may specify in this behalf and which are consumed in the course of such test; (e) samples of goods imported for study or design within the Zone, which is the course of manufacturing operations have been broken up and rendered insignificant in commercial value; (f) goods used for imparting training to workers within the Zone or goods sold by a manufacturer within the Zone to another manufacturer inside the Zone subject to such conditions, and the execution of such bonds, as may be specified by the Collector of Customs for ensuring that the goods so sold will be used in connection with the production or packaging of goods for export out of India or with the promotion of such export of goods; (g) goods manufactured in the Zone and which are allowed to be taken outside the Zone temporarily for repairs, processing or display. 2. The following goods will not be required to be accounted for under condition (vi) of the preceding paragraph by way of export namely:- (a) (i) goods damaged or deteriorated not due to any wilful act, negligence, or default of the importer, his employee or agent and therefore not suitable for use in the production of goods within the Zone, if destroyed within the Zone or if cleared from the Zone for use in any other part of India on payment of the duty equal to that leviable on the goods if imported in sound conditions or (ii) scrap or waste material arising in the course of production of goods within the Zone, if destroyed within the Zone or if cleared from the Zone for use in any other part of India on payment of the duty equal to that leviable on the goods if imported in that form: Provided that if the percentage of scrap or waste material arising in the course of production or packaging of the said goods exceeds the percentage fixed in this regard by the COCHIN EXPORT PROCESSING ZONE BOARD appointed by the notification of the Government of India in the Ministry of Commerce, No. 14(15)/82-EPZ dt. 30-1-84 the duty equal to that leviable on the mother material, out of which the said scrap or waste material has arisen, shall be charged on the excess quantity; (b) empty cones, bobbins or containers, suitable for repeated use, and cleared from the Zone for use in any other part of India on payment of the duty equal to that leviable on such goods at the time of their importation into India. (c) chindies, paper cuttings and the waste packing material arising in the course of production of goods within the Zone, when destroyed under the supervision of an officer of customs in accordance with the procedure specified in this behalf by the Collector of Customs of the Zone. 3. Notwithstanding anything contained in this Notification, (a) the exemption contained herein shall also apply to those goods which on importation into India are used in connection with the production or manufacture or packaging of excisable goods produced or manufactured or packaged within the Zone and such excisable goods even if not exported out of India but brought to any other place in India, under and in accordance with Appendix 15 of the Import and Export Policy Book for March, 1985 to April, 1988 (Volume I) as amended from time to time, and subject to the quantity and such other limitations and conditions as may be specified in this behalf by the Export Commissioner of the Zone on payment of duty of excise leviable on such excisable goods under section 3 of the Central Excises and Salt Act, 1944 (1 of 1944). (b) the exemption contained herein shall also apply to those goods which one importation into India are used in connection with the production or manufacture or packaging of excisable goods, being the excisable goods in the nature of rejects, produced or manufactured or packaged within the Zone and such excisable goods even if not exported out of India but are allowed to be sold in India upto a limit of five per cent of the excisable goods so produced or manufactured or packaged or such other limit as may be fixed by the said COCHIN EXPORT PROCESSING ZONE BOARD, on payment of duty of excise leviable on such excisable goods under section 3 of the Central Excises and Salt Act, 1944 (1 of 1944). 4. Without prejudice to any other provisions contained in this notification, where it is shown to the satisfaction of the Collector of Customs (a) that any unit in the Zone has been allowed to withdraw from the Zone, or has been permitted to dispose of any capital goods outside the Zone in any other place in India, in accordance with the Import-Export Policy of the Government of India for the time being in force, by the said COCHIN EXPORT PROCESSING ZONE BOARD; and (b) that the concerned capital goods so permitted have been used within the Zone for a period of not less than three years. The Collector of Customs may allow such capital goods to be taken outside the Zone to any other place in India on payment of an amount equal to the duty leviable on such capital goods on the depreciated value thereof at the time of clearance and at rates in force at the time of their import. For the purpose of this notification, the COCHIN EXPORT 5. PROCESSING ZONE, COCHIN (KERALA STATE), shall comprise of the places bearing the survey numbers, location, area and enclosed by the boundaries specified below:- Location Site of Kerala, Ernakulam District, Taluk Kanayannur, Village Thrikkakara South. One Kilometre south of Civil Lines (Buildings of the District Collectorate and District Offices), 8 Km. from the town and 20 Km. from the Airport and Harbour. AREA : 41.7058 Hectares SURVEY NOS. 166/1-3 169/8 171/3-4 166/1-4 169/9 171/3-5 166/2A1 169/10 171/3-6 166/2A2 169/11 171/3-7 166/2A7 169/12 171/4-1 166/2A8 169/13 171/4-2 166/2B-1 169/14 171/4-3 166/2B-2 169/15 171/4-4 166/2B-3 169/16 171/5A1 167/1-2 169/17 171/5A2 167/1-3 169/18 171/5B 167/1-4 169/19 197/1-77-2 167/1-5 169/20 197/1-77-3 167/1-6 169/21 197/1-77-4 167/1-7 169/22 197/1-77-5 167/1-8 169/23 197/1-78 167/1-9 169/24 197/1-79 167/1-11 169/25 197/1-81-2 167/1-12 170/1-1 197/4-1 167/1-17 170/1-2 197/4-2 167/1-18 170/2-1 197/4-3 167/1-19 170/2-2 197/4-16 167/1-20 170/2-3 197/4-18 168/1 170/2-4 197/5-4 168/1-6 170/2-5 197/6-1 168/1-7 170/3 197/6-2 168/2 170/4A1 197/6-3 168/3 170/4A2 197/6-4 168/4 170/4B 197/ 7-1 168/5 171/1A-1 197/7-3-18 168/8 171/1A-2 197/7-4-19 168/9 171/1A-3 200/7-1 168/10 171/1A-4 200/7-2 168/11 171/1B-1 200/7-3 168/12 171/1B-2 200/7-4 168/13 171/1B-3 200/7-5 168/14 171/1B-4 200/8A1 169/1-4 171/2 200/8A2 169/2 171/3-1 200/8B 169/3 171/3-2 200/9 169/7 171/3-3 Description of the Wall (including length, height) This area of the zone is enclosed by masonry brick wall to a height varying from 3.30 m to 6.00 m depending upon the site condition, with 1.2 m arm legnth '4' angled barbed wire fencing for a further vertical height 0.9 m, extending from the north-east corner of the area which runs upto 104.5 m towards west and then 271.5 m towards south-west, then 211.6 m towards south, then 156.6 m towards west, then 227.8 m towards south, then 87.7 m towards east, then 236.3 m towards south, then 47.7 m towards east, then 184.3 m towards north, then 119.7 m towards east, then 22.8 m towards north, then 42.2 m towards east, then 17.5 m towards north, then 48.4 m towards east, then 42 m towards south, then 33.8 m towards east, then 50.7 m towards south, then 182.4 m towards east, then 273 m towards north-east and then for 661.8 m towards north running parallel to the Irumpanam-Kalamassery road under construction covering a total circumference of 3022.3 m of compound wall. Boundaries The zone area has its boundaries, Irumpanam-Kalamassery road on the east, Thuthiyur road on the North and West and a cross road from the Irumpanam-Kalamassery road to Thuthiyur on the South-East and private lands and paddy fields on the south. THE ANNEXURE Sl. No. DESCRIPTION OF GOODS 1. 2. 1. Machinery 2. Raw Materials 3. Components 4. Spare parts of machinery 5. Consumables 6. Packaging materials 7. Office equipments, spares and consumables thereof. 8. Goods re-imported within one year from the date of exportation from the Zone due to the failure of the foreign buyer to take delivery or for repairs. 9. Tools, Jigs, Gauges, Fixtures and Accessories. 10. Prototypes, technical and trade samples for development and diversification. 11. Drawings, Blueprints and charts.