Gem and jewellery units - Specified goods imported by them exempted - 177/94 - Customs -Tariff

Gem and jewellery units - Specified goods imported by them exempted Notification No. 177/94-Cus. Dated 21-10-1994 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 specified in the Annexure-I to this notification (hereinafter referred to as the said goods), when imported into India by the gem and jewellery units set up in an Export Processing Zone or in a Free Trade Zone specified in Annexure II of this notification (hereinafter referred to as the Zone), for the manufacture or packaging of gem and jewellery for exports out of India, or for the promotion of exports of gem and jewellery, from the 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, if any, leviable thereon under section 3 of the said Customs Tariff Act, subject to the following conditions, namely :- (1) the importer has been authorised to establish a manufacturing unit in the Zone for the purposes specified in this notification; (2) the importer is covered, wherever required, by a general or specific permit issued by the Reserve Bank of India; (3) the importer has been granted necessary licence for the import of the said goods; (4) the importer executes a bond in such form and for such sum as may be specified by the Assistant Collector of Customs binding himself to - (i) bring the said goods into his unit and use them within the Zone for the purposes specified in this notification; (ii) dispose of the said goods or the gem and jewellery manufactured or packaged in the unit or the waste arising out of such production or packaging in the manner as may be prescribed in the Export-Import Policy and in this notification; (5) the importer shall maintain a proper account of import, consumption and utilisation of the said goods and of the exports made by him, and shall submit such account periodically to the Assistant Collector of Customs; (6) the importer satisfies the Development Commissioner of the Zone that the goods so imported have been used for the purposes specified in the notification or for any other purposes specified in Export-Import Policy; (7) the Assistant Collector of Customs, may subject to such conditions and limitation as may be imposed by him and subject to the provisions of Export-Import Policy - (i) permit the said goods or goods manufactured or packaged in the unit to be transferred or supplied to another unit in the same Zone; (ii) permit re-export of dead stock or broken stones up to 5% of the value of import of such stones; (8) gem and jewellery, including the rejects, manufactured in the said Zone, shall not be brought to any other place in India (that is to say the Domestic Tariff Area) for whatever purpose : Provided that scrap, dust or sweepings of gold arising in the manufacturing process may be forwarded to the Government Mint by the importer for conversion into standard gold bars and return to the said Zone in accordance with the procedure specified by the Collector of Customs in this regard; (9) in the event of a unit ceasing its operation, gold, other precious metals, alloys, gem and material for the manufacture of jewellery shall be handed over to the Agency, nominated in this behalf by the Government of India in the Ministry of Commerce; (10) the Assistant Collector of Customs may allow, subject to the fulfilment of conditions specified in this notification, the loss of percentage of gold specified in column (2) of the Table given below during the manufacture of jewellery of the description specified in the corresponding entry in column (1) of the said Table. TABLE Description of jewellery Percentage of gold wastages (1) (2) A. Plain gold jewellery articles un-studded with minimum value addition of 10% or more (on gold content plus wastage) up to 2% of gold content in jewellery by weight B. Studded gold jewellery and articles with value addition (on gold content plus wastage) as follows :- (i) value addition up to 25% up to 3% (ii) value addition above 25% and up to 40% up to 5% (iii) value addition above 40% and up to 50% up to 7% (iv) value addition over 50% up to 10% C. Mountings and findings 3% of gold content by weight Explanation. - The wastage for mountings and findings is admissible only when such mountings and findings are manufactured from imported gold and are exported as such; (11) export under this notification shall be allowed - (i) by air freight through the airports specified in Annexure-II to this notification; and (ii) through post parcels, in accordance with such procedure as may be specified by the Collector of Customs; (12) gem and jewellery manufactured in the said Zone may be supplied to the retail outlets or show rooms set up in the departure lounge at international airports at Delhi and Bombay in accordance with the Import and Export Policy for sale to a tourist as defined in the Baggage Rules, 1994, leaving India in accordance with the procedure specified by the Collector of Customs. Explanation. - For the purposes of this notification, "Export-Import Policy" means the Export and Import Policy, 1st April, 1992 - 31st March, 1997, published under the Ministry of Commerce Public Notice No. 1-ITC (PN)/92-97, dated the 31st March, 1992, as amended from time to time. 2. Notwithstanding anything contained in the first paragraph, the exemption contained therein shall also apply to silver and gold falling under Heading Nos. 71.06 and 71.08 respectively of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) imported by the Minerals and Metals Trading Corporation of India Limited and the State Bank of India for being supplied to the gem and jewellery units in the said Zone under the scheme for export of gold and silver jewellery and articles from the Export Processing Zone as specified in paragraph 88 of the Export and Import Policy, 1st April, 1992 - 31st March, 1997, read with Chapter VIII of the Handbook of Procedures, Volume 1, 1st April, 1992 - 31st March, 1997, of the Government of India in the Ministry of Commerce : Provided that where gold is imported on behalf of a jewellery unit, the exemption shall apply only if - (a) the procedure as may be specified by the Collector of Customs are followed by such a jewellery unit; and (b) the conditions stipulated in the first paragraph are complied with by such a jewellery unit. 3. (1) The notifications of the Government of India in the Ministry of Finance, Department of Revenue, specified in Annexure-III to this notification, are hereby rescinded. (2) Notwithstanding such rescission, anything done or action taken under the notifications so rescinded shall be deemed to have been done or taken under the corresponding provisions of this notification. Annexure-I Description of goods 1. Capital goods and spares thereof. 2. Captive power plants, including captive generating sets and their spare parts, fuel, lubricants and other consumables for such power plants and generating sets as recommended by the Board of Approvals. 3. Office equipments, spare parts and consumables thereof as recommended by the Board of Approvals. 4. Raw materials. 5. Components. 6. Consumables required for manufacture of goods. 7. Packaging materials. 8. Tools, jigs, gauges, fixtures, moulds, dies and instruments and accessories and spare parts thereof. 9. Prototypes, technical and trade samples for development and diversification. 10. Drawings, blue prints and charts. 11. Goods re-imported within one year of the date of exportation for re-export after repairs or remaking. 12. Goods re-imported within one year from the date of exportation from the Zone due to the failure of the foreign buyer to take delivery. Annexure-II Name of the Zone Exports through Airports at 1. Santacruz Electronics Export Processing Zone Sahar 2. Cochin Export Processing Zone Trivandrum/Calicut/Cochin 3. Noida Export Processing Zone Delhi 4. Falta Export Processing Zone Calcutta 5. Madras Export Processing Zone Madras Note : The Zone shall comprise of places bearing survey numbers and enclosed by boundaries as may be specified by the jurisdictional Collector of Customs in a Public/Trade Notice, issued in this behalf. Annexure-III 1. Notification No. 196/87-Customs, dated 5-5-1987. 2. Notification No. 256/87-Customs, dated 2-7-1987. 3. Notification No. 258/87-Customs, dated 2-7-1987. 4. Notification No. 260/87-Customs, dated 2-7-1987. 5. Notification No. 262/87-Customs, dated 2-7-1987.