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Customs Notification No-43/2002 Dated 19th April,
2002
Customs exemption Notification on Advance Licences of EXIM Policy 2002-2007
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 an Advance Licence issued in terms of
sub-paras (a) and (b) of paragraph 4.1.1 of the Export and Import Policy
(hereinafter referred to as the said licence), 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, safeguard duty and anti-dumping duty leviable thereon
respectively under sections 3, 8 and 9A of the said Customs Tariff Act, subject
to the following conditions namely :-
(i) that the description, value and quantity of materials
imported are covered by the said licence and the said licence is produced before
the proper officer of customs at the time of clearance for debit;
(ii) that where import takes place after fulfilment of export
obligation, the shipping bill number(s) and date(s) and quantity and FOB value
of the resultant product exported are endorsed of the said licence :
(iii) that 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 Assistant Commissioner of customs or
Deputy Commissioner of customs binding himself to pay on demand an amount equal
to the duty leviable, but for the exemption, on the imported materials in
respect of which the conditions specified in this notification have not been
complied with, together with interest at the rate of twenty-four percent per
annum from the date of clearance of the said materials :
Provided that bond shall not be necessary in respect of imports made after the
discharge of export obligation in full;
(iv) that the imports and exports are undertaken through sea
ports at Mumbai, Kolkata, cochin, Magdalla, Kakinada, Kandla, Mangalore,
Marmagoa, Madras, Nhava Sheva, Paradeep, Pipavav, Sikka, Tuticorin,
Visakhapatnam, Dahej, Mundhra, Nagapttinam and Okha or through any of the
airports at Ahmedabad, Bangalore, Bhubaneshwar, Mumbai, Kolkata, Coimbatore,
Delhi, Hyderabad, Jaipur, Madras, Srinagar, Trivandrum, Varanasi, Nagpur and
Cochin or through any of the Inland Container Depots at Agra, Bangalore,
Coimbatore, Delhi, Faridabad, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar,
Kanpur, Ludhiana, Moradabad, Nagpur, Pipmri (Pune), Pitampur (Indore), Surat,
Tirupur, Varanasi, Nasik, Rudrapur (Nainital), Dighi (Pune), Vadodara,
Daulatabad (Wanjarwadi and Maliwada), Walaj (Aurangabad), Anaparthy (Andhra
Pradesh), Salem, Malanpur, Singanalur, Jodhpur, Kota, Udaipur, Ahmedabad,
Bhiwadi, Madurai, Bhilwara, Pondicherry and Garhi Harsaru or through the Land
Customs Station at Ranaghat and Singhabad :
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 from any
other Seaport/Airport/Inland Container Depot or through any Land Customs
Station;
(v) that the export obligation as specified in the said
licence (both in value and quantity terms) is discharged within the period
specified in the said licence or within such extended period as may be granted
by the Licensing Authority by exporting resultant
products, manufactured in India which are specified in the said licence and in
respect of which facility under rule 18 or rule 19 of the central Excise rules,
2002 has not been availed :
Provided that an Advance Intermediate Licence holder shall discharge export
obligation by supplying the resultant products to ultimate exporter in terms of
sub-para (b) of para 4.1.1. of the said Export and Import Policy;
(vi) that the importer produces evidence of discharge of
export obligation to the satisfaction of the Assistant Commissioner of Customs
or Deputy Commissioner of Customs within a period of 30 days of the expiry of
period allowed for fulfilment of export obligation; or within such extended
period as the said Assistant Commissioner of Customs or Deputy Commissioner of
Customs may allow;
(vii) that the said Licence and the materials shall not be
transferred or sold;
(viii) that in relation to the said Licence issued to a
Merchant
Exporter,--
(a) the name and address of the supporting manufacturer is
specified in the said licence and the bond required to be executed by the
importer in terms of condition
(ii) shall be executed jointly by the Merchant Exporter and
the supporting manufacturer binding themselves jointly and serverally to comply
with the conditions specified in this notification; and
(b) exempt materials are utilised in the factory of such
supporting manufacturer for discharge of export obligation and the same shall
not be transferred or sold or used for any other purpose by the said Merchant
Exporter.
2. Where the materials are found defective or unfit for use,
the said materials may be re- exported back to the foreign supplier within three
years from the date for payment of duty on the importation thereof :
Provided that at the time of re-export the materials are identified to the
satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of
Customs as the materials which were imported.
Explanation.- In this notification,-
(i) “Export Import Policy” means the Export and Import Policy
2002-2007, published vide notification of the Government of India in the
Ministry of Commerce No. 1/2002-2007 dated the 31st March, 2002;
(ii) “Licensing 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 authorised by him to grant a
licence under the said Act.
(iii) “Materials” means-
(a) raw materials, components, intermediates, consumables,
catalysts computer software and parts which are required for manufacture of
resultant product;
(b) mandatory spares within a value limit of 10 per cent of
the value of the licence which are required to be exported alongwith the
resultant product;
(c) fuel, oil and catalysts required for manufacture of
resultant product; and
(d) packing materials required for packaging of resultant
product.
Sd/-
(Alok Jha)
Under Secy.
F. No. 605/201/2001-DBK
Issued by:
Ministry of Finance
Department of Revenue
New Delhi.