Goods imported into India for Export out of India - 02/86 - Customs -Tariff

Goods imported into India for Export out of India Notification No. 2/86-Cus. Dated 1-1-1986 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 when imported into India either directly or through Release Order for the purpose of manufacture of products (hereinafter referred to as the end products) for export out of India against 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 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 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 exported and are duly and immediately entered into the records required to be maintained by the importer as the manufacturer under the Central Excises and Salt Act, 1944 (1 of 1944) and the rules made thereunder, unless he is exempted from the maintenance of such records; (e) that the end products, as specified in the said Import-Export Pass Book, are exported out of India within the period specified in the 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 purpose specified in this notification; (g) that the said imported goods or any portion thereof shall not be sold or otherwise transferred to any other person or utilised or permitted to be utilised or disposed of for any other purpose without the previous, permission, in writing, of the Chief Controller of Imports and Exports; and (h) that the said goods shall be imported only through the Customs port of Kandla or Calcutta or Bombay or Cochin or Madras or Vishakhapatnam or only through the Customs airport of Calcutta or Bombay or Delhi or Madras or Bangalore or only through the inland container depot of 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, Cutsoms airports or inland container depots. Explanation :— For the purposes of this notification, — (i) "canalising agency" shall have the same meaning as in the Import and Export Policy April 1985 - March, 1988; (ii) "goods" means goods which are in the nature of raw materials (whether consumables or not) or in the nature of components or intermediate products required for the manufacture of end products and their packings; (iii) "Import-Export Pass Book Scheme" means the Import-Export Pass Book Scheme contained in Chapter XV of the Import-Export Policy April 1985 - March 1988; (iv) "importer" includes holder of a Release Order; (v) "Licensing Authority" means an authority competent to grant a licence under the Imports (Control) Order, 1955 made under the Imports and Exports (Control) Act, 1947 (18 of 1947); and (vi) "Release Order" means a Release Order issued by the Licensing Authority under the Import-Export Pass Book Scheme on the concerned canalising agency.