Exemption to specified goods imported for purpose of development of software for export - 138/91 - Customs -Tariff

Exemption to specified goods imported for purpose of development of software for export Notification No. 138/91-Cus. Dated 22-10-1991 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 Table below (hereinafter referred to as the goods), when imported into India for the purpose of development of software for export out of India, by software development units in the Software Technology Park Complex (hereinafter referred to as the Complex) under the Hundred per cent Export Oriented Scheme approved by the Inter-Ministerial Standing Committee on Mini-Computer/Micro-Computer based items and Computer Software (hereinafter referred to as the Standing Committee appointed by the notification of the Government of India, Department of Electronics No. 12 (38)-Comp/89, dated the 13th August, 1991, [G.S.R. No. 526 (E)] from the whole of duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and the additional duty, if any, leviable thereon under Section 3 of the second mentioned Act, subject to the following conditions, namely :- (1) the importer has been granted necessary licence for the import of goods for the said purposes; (2) the importer carries out the development of software under customs bond and subject to such other conditions as may be specified by the Assistant Collector of Customs in this behalf; (3) the importer exports out of India hundred per cent or such other percentage, as may be fixed by the Standing Committee, of software developed wholly or partly from the goods for the period stipulated by the Standing Committee or such extended period as may be specified by the Standing Committee; (4) the importer agrees - (a) to bring the goods into the Complex and use them within the Complex in connection with the development of software for export, using data communication link or in the form of physical export; (b) not to move the goods from the Complex without the approval of the Assistant Collector of Customs. (c) to export out of India all software developed or transfer such developed software to any unit within the same Complex with the prior approval of the Assistant Collector of Customs on the recommendation of the Chief Executive of the Software Technology Park Society (hereinafter referred to as the Society), set up by the Government of India in the Department of Electronics, for the said Complex; (5) the importer shall produce a certificate to the Assistant Collector of Customs from the Chief Executive of the Society to the effect that the goods are to be installed or used in the unit set up in the Complex, and that the import of such goods have been authorised by the Standing Committee; (6) on the expiry of the period referred to in condition (3) the importer shall pay the following duties, namely : - (a) customs duty on capital goods and office equipments on depreciated value at rates prevalent at the time of import; (b) customs duty on unused imported raw materials or components on the value at the time of import and at rates in force at the time of clearance; (7) the importer executes a bond, in such form and for such sum and with such authority as may be prescribed by the Assistant Collector of Customs, binding himself to fulfil the export obligations and conditions stipulated in this notification, and those under the Import and Export Policy, April, 90 - March, 93, as amended from time to time, and conditions for establishment of Technology Park for software export as specified by the Department of Electronics, and to pay on demand an amount equal to the duty leviable on the goods as are not found to the satisfaction of the Assistant Collector of Customs to have been used in the development of software for export; (8) the procedure, as may be prescribed by the Collector of Customs, is followed by such unit; (9) Notwithstanding anything contained in this notification, the exemption contained herein shall also apply to goods which on importation into India are used for the development of software within the Complex and such software, even if not exported out of India, are allowed to be sold in India in physical form under and in accordance with the said Import and Export Policy, as amended from time to time, and in such quantity and subject to such other limitations and conditions as may be specified in this behalf by the Standing Committee on payment of duty of excise leviable on such software under Section 3 of the Central Excises and Salt Act, 1944 (1 of 1944); Provided that the sale of software within India shall not be allowed through data communication link or telecommunication link; (10) the Collector of Customs may, subject to the conditions and limitations stipulated in the said Import and Export Policy as amended from time to time, permit the goods imported into India for the purpose aforesaid or the software developed to be taken temporarily outside the Complex, without payment of duty, for repairs or display, as the case may be, and the importer shall be bound to comply with such conditions and limitations. 2. Notwithstanding anything contained in paragraph 1 of this notification, the exemption contained therein shall also apply to goods imported by the Society for creating the central facility and for use by the software development units in the Complex, subject to satisfaction of conditions under paragraph 1 of this notification. Explanation.: - For the purposes of this notification "society" means Software Technology Park Society established by the Government of India, Department of Electronics, and registered under the Societies Registration Act, 1860 (21 of 1860). THE TABLE S. No. Description of goods (1) (2) 1. Capital goods 2. Raw materials 3. Components 4. Spares for production machinery. 5. Consumables required for manufacture of goods. 6. Drawings, blue prints, technical maps and charts relating to manufacturing activity. 7. Office equipments, as permissible for import under the Open General No. 24/90-93 (as amended) issued under Section 3 of the Imports and Exports (Control) Act, 1947 (18 of 1947) and to such extent as may be allowed by the Standing Committee.