Advance Authorization for Annual
Requirement under FTP 2015-2020
[Ref: Notification No. 20/ 2015 –
Customs dated 1 April 2015]
G. S. R. 256 (E) - 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 materials imported
into India, against a valid Advance Authorisation for Annual Requirement (hereinafter
referred to as the said Authorisation) with actual
user condition issued by the Regional Authority in terms of Paragraph 4.06 of the Foreign Trade Policy 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) (hereinafter referred to as
Customs Tariff Act) and from the whole
of the additional duty, safeguard
duty, transitional product specific safeguard duty and
anti-dumping duty leviable thereon, respectively,
under sections 3,8B, 8C and 9A of the
said Customs Tariff Act, subject to the following conditions, namely:-
(i) that the said authorisation is produced before the proper officer of
customs at the time of clearance for debit of the quantity and value of
imports;
(ii) that the said authorisation is issued with respect to Standard Input
Output Norms (SION) fixed and bears,-
(a) the name and address of the importer and the supporting
manufacturer in cases where the authorisation has been issued to a merchant exporter; and
(b) the shipping bill number(s) and date(s) and description,
quantity and value of exports of the resultant product in cases where import
takes place after fulfillment of export obligation; or
(c) the
description, Cost Insurance Freight value and other specifications of the
imported materials and the description, quantity and Free on Board value of
exports of the resultant product covered under an export product group
specified in the Hand Book of Procedures, in such cases where import takes
place before fulfillment of export obligation:
Provided
that in respect of inputs referred in paragraphs 4.12(i) and 4.12(ii) of the
Foreign Trade Policy, the material permitted to be imported in the said authorisation shall be of the specific name or description
or quantity, respectively, as the material used in the export of the resultant
product. The exporter shall declare these particulars in the shipping bill or
bill of export:
Provided
further that in respect of the inputs specified in paragraph 4.45 (b) of
the Hand Book of Procedures of the Foreign Trade Policy, the technical
characteristics, quality and specifications shall be declared at the time of
import and the material permitted in the said authorisation
shall be of the same technical characteristics, quality and specifications as
the materials used (or to be used) in the export of the resultant product:
Provided
also that the exporter shall give declaration with regard to the technical
characteristics, quality and specifications of materials used in the export of
resultant product, in the shipping bill/ bill of export;
(iii) that in respect of imports made before the
discharge of export obligation, the importer at the time of clearance of the
imported materials executes a bond with such surety or security and in such form
and for such sum as may be specified by the Deputy Commissioner of Customs or
Assistant Commissioner of Customs, as the case may be, binding himself to pay
on demand an amount equal to the duty leviable, but
for the exemption contained herein, on the imported materials in respect of
which the conditions specified in this notification are not complied with,
together with interest at the rate of fifteen percent per annum from the date
of clearance of the said materials;
(iv) that in respect of imports made after the
discharge of export obligation, if facility
of CENVAT Credit under CENVAT Credit Rules, 2004 has been availed, then
the importer shall, at the time of clearance of the imported materials furnish
a bond to the Deputy Commissioner of Customs or Assistant Commissioner of
Customs, as the case may be, binding himself, to use the imported materials in
his factory or in the factory of his supporting manufacturer for the
manufacture of dutiable goods and to submit a certificate, from the
jurisdictional Central Excise officer or from a specified chartered accountant
within six months from the date of clearance of the said materials, that the
imported materials have been so used:
Provided
that if the importer pays additional duty of customs leviable
on the imported materials but for the exemption contained herein, then the
imported materials may be cleared without furnishing a bond specified in this
condition and the additional duty of customs so paid shall be eligible for
availing CENVAT Credit under the CENVAT Credit Rules, 2004;
(v) that in respect of imports made after the
discharge of export obligation in full, and if facility under rule 18 or
sub-rule (2) of rule 19 of the Central Excise Rules, 2002 or of CENVAT credit
under CENVAT Credit Rules, 2004 has not been availed and the importer furnishes
proof to this effect to the satisfaction of the Deputy Commissioner of Customs
or the Assistant Commissioner of Customs as the case may be, then the imported
materials may be cleared without furnishing a bond specified in condition (iv);
(vi) that the imports and exports are undertaken through the
seaports, airports or through the inland container depots or through the land
customs stations as mentioned in the Table 2 annexed to the Notification No.16/ 2015- Customs dated
01.04.2015 or a Special Economic Zone notified
under section 4 of the Special Economic Zones Act, 2005 (28 of 2005):
Provided
that the Commissioner of Customs may, by special order or a public notice and
subject to such conditions as may be specified by him, permit import and export
through any other sea-port, airport, inland container depot or through a land
customs station within his jurisdiction;
(vii) that sourcing of the
imported materials from Private Bonded Warehouses set up under paragraph 2.36 of the Foreign Trade Policy would
be allowed;
(viii) that the export obligation as specified in the
said authorisation (both in value and quantity terms)
is discharged within the period specified in the said authorisation
or within such extended period as may be granted by the Regional Authority by
exporting resultant products, manufactured in India which are specified in the
said authorisation and in respect of which facility
under rule 18 or sub-rule (2) of rule 19 of the Central Excise Rules, 2002 has
not been availed:
Provided
that an Advance Intermediate authorisation holder
shall discharge export obligation by supplying the resultant products to
exporter in terms of paragraph 4.05 (c) (ii) of the Foreign Trade Policy;
(ix) that the importer produces evidence of
discharge of export obligation to the satisfaction of the Deputy Commissioner
of Customs or Assistant Commissioner of Customs, as the case may be, within a
period of sixty days of the
expiry of period allowed for fulfillment of export obligation, or within such
extended period as the said Deputy Commissioner of Customs or Assistant
Commissioner of Customs, as the case may be, may allow;
(x) that the exempt materials shall not be
disposed of or utilized in any manner except for discharge of export obligation
or for replenishment of such materials and the materials so replenished shall
not be sold or transferred to any other person:
Provided
that the said materials may be transferred to a job worker for processing
subject to complying with the conditions prescribed in the relevant Central
Excise notifications permitting transfer of materials for job work:
Provided
further that no such transfer for purposes of job work shall be effected to the
units located in areas eligible for area based exemptions from the levy of
excise duty in terms of notification Nos. 32/1999-Central Excise dated
08.07.1999, 33/1999-Central Excise dated 08.07.1999, 39/2001- Central Excise
dated 31.07.2001, 56/2002- Central Excise dated 14.11.2002, 57/2002- Central
Excise dated 14.11.2002, 49/2003- Central Excise dated 10.06.2003, 50/2003-
Central Excise dated 10.06.2003, 56/2003- Central Excise dated 25.06.2003,
71/03- Central Excise dated 09.09.2003, 8/2004- Central Excise dated 21.01.2004
and 20/2007- Central Excise dated 25.04.2007;
(xi) that in relation to the said authorisation issued to a manufacturer exporter or merchant
exporter, any bond required to be executed by the importer in terms of this
notification shall be executed jointly by the manufacturer exporter or merchant
exporter as the case may be and the supporting manufacturer binding themselves
jointly and severally to comply with the conditions specified in this
notification;
(xii) that the exemption
from safeguard duty, transitional product specific safeguard duty and
anti-dumping duty shall not be available in respect of material imported-
(a) for
supply of goods against Advance Authorisation
or Advance Authorisation for annual requirement or
Duty Free Import Authorisation;
(b) for
supply of goods to Export Oriented Unit or Software Technology Parks or
Electronic Hardware Technology Parks or Biotechnology Parks;
(c) for
supply of goods against Export Promotion
Capital Good (EPCG) Authorisation;
(d) for supply of marine freight
containers by 100% Export Orients Unit (domestic freight container -
manufacturers) where said containers are exported out of India within 6 months
or such further period as permitted by Deputy Commissioner of Customs or
Assistant Commissioner of Customs, as the case may be; and
(e) for
supply for official use or to the
projects funded by UN or International Organisation in terms of Notification No. 108/95-Central
Excise dated 28.08.1995.
Explanation.- For the purposes of this
notification,-
(I)
“Dutiable goods” means excisable goods which are not exempt from central excise
duty and which are not chargeable to ‘nil’ rate of central excise duty;
(II)
"Foreign Trade Policy" means the Foreign Trade Policy, 2015-2020,
published by the Government of India in the Ministry of Commerce and Industry
vide notification
No.
01/2015-2020, dated the 1st April 2015 as amended from time to time;
(III) “Handbook of Procedures” means the Handbook of
Procedures 2015-20 published by the Government of India in the Ministry of
Commerce and Industry vide public notice No. 01/2015-2020, dated the 1st April 2015
as amended from time to time;
(IV)
“Manufacture” has the same meaning as assigned to it in paragraph 9.31 of the Foreign Trade Policy;
(V)
“Materials” means
(a) raw materials, components, intermediates, consumables,
catalysts and parts which are required for manufacture of resultant product;
(b) mandatory spares within a value limit of ten per cent. of the value of the authorisation
which are required to be exported along with the resultant product;
(c) fuel required for manufacture of
resultant product;
(d) packaging materials required for packing of resultant
product;
(VI)
“Regional Authority” means the Director General of Foreign Trade appointed
under section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22
of 1992) or an officer authorized by him to grant an authorisation
under the said Act;
(VII) “Specified Chartered Accountant” means a statutory
auditor or a Chartered Accountant who certifies the importer’s financial
records under the Companies Act, 2013
(18 of 2013) or the Income Tax Act, 1961 (43 of 1961) or the Sales Tax or the
Value Added Tax Act of the State Government.
[F.No.605/55/2014-DBK]