16th May, 2001.

Notification No. 28/2001-Central Excise

            In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944(1 of 1944), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.82/92-CE, dated the 27th August, 1992 [GSR 744(E), dated the 27th August, 1992], the Central Government, being satisfied that it is necessary in
the public interest so to do, hereby exempts all excisable goods (hereinafter referred to as the said goods) specified in the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), produced or manufactured in a hundred per cent export oriented undertaking or a free trade zone or a special economic zone and cleared to a person - 

(a)     holding an advance release order issued by the licensing authority against an advance licence in terms of paragraph 7.7 of the Export & Import Policy, read with relevant provisions of the Handbook of Procedures, or a back to back inland letter of credit issued by a bank in terms of paragraph 7.8 of the Export and Import Policy read with relevant provisions of the Handbook of
Procedures from the whole of the duty of excise leviable thereon under section 3 of the said Central Excise Act; 

(b)     holding an advance release order issued by the licensing authority against a Duty Free Replenishment Certificate (DFRC) in terms of paragraph 7.7 of the Export & Import Policy read with relevant provision of the Handbook of Procedures or a back to back inland letter of credit issued by a bank in terms of paragraph 7.8 of the Export and Import Policy read with relevant provisions of the Handbook of Procedures from that portion of duty of excise leviable thereon under section 3 of the said Central Excise Act, as is equal to the duty of customs leviable on like goods produced or manufactured outside India if imported into India, which is specified in the First Schedule to the Custom Tariff Act, 1975 ( 51 of 1975) and special additional duty of customs leviable thereon under section 3A of the said Customs Tariff Act: 

subject to the following conditions, namely:-

(i) the advance licence holder/ DFRC holder produces the said advance release order specifying therein the quantity, description (including the technical specifications) and the value of each of the said goods permitted to be cleared in accordance with this notification or, as the case may be, his copy of back to back inland letter of credit specifying therein the name and address of the indigenous supplier in original before the proper officer of Central Excise/Customs; and  

(ii) the quantity and the value of each of the items are debited by the proper officer of Central Excise/Customs in the said advance release order or as the case may be, the back to back inland letter of credit, before allowing clearance of the said goods. 

Explanation. - For the purposes of this notification, -

(i)         “Export and Import Policy” means the Export and Import Policy, 1st April, 1997-31st March, 2002, published vide notification of the Government of India in the Ministry of Commerce, No.1/1997-2002, dated 31st March, 1997, as amended from time to time;

(ii)         “Handbook of Procedures” means the Handbook of Procedures, Vol.I, 1st April, 1997-31st March, 2002, published vide Public notice of the Government of India in the Ministry of Commerce, No. 1(RE-2001)/1997-2002, dated the 31st March 2001, as amended from time to time; 

(iii)         “Licensing Authority,” means an authority competent to grant a licence under the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or the rules made thereunder. 

( Rajendra Singh)

Under Secretary to the Government of India

F.NO. 305/ 53/2001-FTT