Advance Licence for Deemed Exports in Exim Policy 2002-07

Ntfn 47         In exercise of the powers conferred
22.04.2002   by sub-section (i) 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 required for the manufacture of the final goods when imported into India, from whole of the duty of Customs leviable thereon, under 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:-

(1) that the imported has been granted Advance Licence for deemed export by the Licensing Authority for import of the said materials for the aforesaid purpose in terms of paragraph 4.1.1 of the Export and Import Policy (hereinafter referred to as the said licence), and the said licence or authorisation is produced by the importer at the time of clearance for debit by the proper officer of the customs:

(2) that the said licence or authorisation contains the endorsements specifying inter alia

(a) the description, quantity and value of materials allowed to be imported under the said licence;

(b) the description and quantity of materials allowed to be imported duty free; and

(3) the importer executes a bond with such surety or security and in such form and for such sum as may be specified by the Assistant Commissioner of Customs or Deputy Commissioner of Customs binding himself to pay on demand, an amount equal to the duty levaible on the imported material but for the exemption contained herein, in respect of which the conditions specified in this notification have not been compiled with together with interest at the rate of 24 per cent per annum from the date of clearance of materials;

(4) that the importer produces evidence of having discharged obligation to supply final goods to the satisfaction of the said Assistant commissioner of customs or Deputy commissioner of Customs within a period of thirty days form the expiry of the period allowed for fulfillment of obligation to supply final goods or within such extended period as the *(Assistant commissioner Customs) may slow; and

(5) that the exempt materials are utilised for the manufacture of final goods and no portion of such materials shall be loaned, transferred, sold or disposed of in another manner;

Provided that where final goods in respect of which the said materials have been imported have already been manufactured and supplied as required under this notification, the importer may use the said materials for the manufacturing of any other goods;

(6) that the imports and exports are undertaken through sea ports Mumbai, Sikkim, Kolkata, cochin, Kandla, Mangalore, Marmagoa, Chennai, Nhava Sheva, Pardeep. Tuticorin, Visakahpatnam, Kakinada, Mardalla, Dahej, Mudra, Nagapattinam, Okha, Pipavav , Bedi (including Rozi –Jamnagar), Muldwarka, Porbander, Dharamtar, Vadimar Porbande, Haldia (Halida Dock Complex of Kolkata Port) and Krishnapatnam or through any of the airports at Ahmedabad Bangalore, Mumbai, Kalkatta, Bhubaneshwar, Coimbnatore , Nagpur, Cochin, Delhi, Hyderabad, Jaipuir, Chennai, Srinagar, Trivandrum, Varanasi, Rajasansi (Amritsar), Lucknow (Amausi), Indore and Dabolim (Goa) for through any of the Inland Container Deports at Bangalore, Coimbatore , Delhi, Ghuwati, Hyderabad, Kanpur, Ludhiana, Moradabnad, Pimpri (Pune), Pitampur(Indore), Agra, Faridabad, Jaipur, Guntur, Nagpur, Varanasi, Surat, Jodhpur, Salem. Tirpur, Sinanallur, Walluj, Bhiwadi, Malanpur, Nasik, Rudrapur (Nainital), Dighi(Pine) Vadodara, Daulatabad(Wanjar) Waluj, Kota, Udaipur, Ahmedabad, Jalanhdhar, Bhilwars, Pondicherry, Garhi Harsaru Bhatinda, Dappar (Dera Bassi), Chheharata (Amritsar), Karur, Miraj, Rewari, Bhusawal, Jamshedpur, Surajpur, Dadri, Tuticorin, Kundli, Bhadohi, Raipur, Mandideep (District: Raisen), Durgapur (Export Promotion Industrial Park), Babarpur and Loni (District Ghaziabad) or through Land Customs Stations at Ranaghar, Singhabad, Raxaul., Jogbani, Nautanva (Sonauli), Petrapole, Mahadipur, Nepalganj Road, Dawki, Agartala, Sutarkhandi, Amritsar Rail Cargo, Attari Road, Hilli, Ghojadanga and Changrabandha or Special Economic Zone as specified in the notification issued under section 76A of the Customs Act,1962 (52 of 1962). [Amending by 46/17.05.2005; 77/22.08.2005; 97/17.11.2005; 41/05.05.2006; 63/04.05.2007; 116/30.11.2007; 63/08.05.2008; 19/24.02.2009]

Provided that the commissioner of Customs may be special order and subject to such conditions as may be specified by him, permit import and export through any other sea port, airport or inland container depot or through a land customs station.

2. The said materials required for the manufacture of the final goods, when imported into India and supplied to Export Oriented Unit, Special Economic Zone, Electronic Hardware Technology Park and Software Technology Park, shall be exempted from the whole of the duty of customs leviable thereon, under the First Schedule to the said Customs Tariff Act and from the whole duty and anti-dumping duty leviabale thereon respectively under section 3, 8 and 9A of the said Customs Tariff Act subject to the conditions mentioned in paragraph 1.

Explanation- In this notification

(i) “Licensing Authority’ or General of Foreign Trade appointed under Section 6 of the Foreign Trade (Development and Regulation) Act. 1922 (22 of 1992) or an officer authorized by him to grant a licence under the said act;

(ii) “Material’- means-

(a) raw materials, components, intermediates consumables, computer software and parts required for the manufacture of final goods;

(b) packing materials required footer the packing of final goods to be supplied;

(iii) “final goods’ means,-

(a) supplies against Advance Licence/DFRC under the Duty Exemption ./Remission Scheme;

(b) supplies made to 100 percent Export Oriented Units (EOUs) or units located in Export Processing Zones (EPZ) or Special Economic Zones (SEZ) or Software Technology Parks (STP) or Electronic Hardware Technology Parks (EHTP);

(d) supplies made to projects finance by multilateral or bilateral agencies/funds as notified by the Government of India in the Ministry of Finance (Department of Economic Affairs) under international competitive bidding in accordance with the procedures of those agencies/funds where the legal agreements provide for tender evaluation without including the customs duty;

(e) supply of capital goods including capital goods in unassembled/dissembled condition including plant, machinery, accessories, tools, dies and such goods which are used for installation purpose till the stage of commercial production, and spares to the extent of 10 percent of the for value of such capital goods for fertilizer plants;

(f) supply of goods to any project of purpose in respect of which the Ministry of finance, by a notification, permits the import of such goods at Zero customs duty coupled with the extension of benefits specified in chapter 8 of the Export and Import Policy for domestic supplies;

(g) supply of goods to power and refinery projects not covered in (f) above;

(h) supply of Marine freight containers by 100 per cent Export Oriented Units(Domestic freight container- manufactures) provided the said containers are exported out of India within 6 months or such further period as permitted by Customs;

(i) supplies made to projects founded by United Nation agencies;

(j) supplies made to nuclear power projects through competitive binding;

(iv) “Export processing one” “hundred percent of export oriented units’ and “Special economic zones’; have the same meaning as in Explanation 2 to Section 3 of the Central Excise Act, 1944 ( 1 of 1994 ) respectively;

(v) “Export and Import Policy’ means Export and Import Policy 2002-2007, notified vide Notification No. 1 / 2002-2007, dated the 31st march, 2002