Exemption to specified goods imported for manufacture of jewellery for export by hundred per cent export oriented undertaking - 277/90 - Customs -Tariff

Exemption to specified goods imported for manufacture of jewellery for export by hundred per cent export oriented undertaking Notification No. 277/90-Cus. Dated 12-12-1990 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 the goods specified in the Annexure to this notification (hereinafter referred to as the said goods), when imported into India for the purposes of use in the manufacture of jewellery for export out of India, by or on behalf of a hundred per cent export oriented undertaking, 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, if any, leviable thereon under section 3 of the said Customs Tariff Act, subject to the following conditions, namely :- (i) the importer, having undertaken to export out of India annually a minimum of rupees fifty crores worth of jewellery in the second year of commencement of production, has been authorised to establish a hundred per cent, export-oriented undertaking for the purpose of manufacture of jewellery; (ii) the importer is covered, wherever required, by a general or specific permit issued in this behalf by the Reserve Bank of India; (iii) the importer has been granted necessary licence for the import of the said goods; (iv) the importer carries out the manufacturing process or other operations in respect of jewellery in customs bond and subject to such other conditions as the Assistant Collector of Customs may, having regard to the circumstances of the case, specify in this behalf; (v) the importer shall not import gold of 0.999 fineness and purity except through the State Bank of India or any other agency designated for the purpose by the Government of India in the Ministry of Commerce and the identification mark on the gold of such fineness has been stamped by the India Government Mint, Bombay; (vi) the importer satisfies the Assistant Collector of Customs that the said goods shall be used in the manufacture of jewellery for export out of India; (vii) the importer agrees to execute a bond in such form and for such sum and with such authority as may be specified by the Assistant Collector of Customs binding himself to fulfil the export obligation with the prescribed value addition and to fulfil, inter alia , the conditions stipulated in this notification and in the Letter of Approval of Intent or the Industrial Licence issued by the Board of Approval and to pay on demand an amount equal to the duty of Customs leviable on the said goods as are not proved to the satisfaction of the Assistant Collector of Customs to have been used in the manufacture of the jewellery for export; (viii) the importer agrees to bring the said goods into the said undertakings and use them within the undertaking in the manufacture of jewellery for export out of India; (ix) the importer agrees to export out of India all the jewellery manufactured within the said undertaking for the period stipulated by the Board of Approval or such extended period as may be specified by the Board of Approval; (x) on expiry of the period specified in condition (ix), the importer shall pay the following duties, namely :- (a) duty of customs on capital goods on depreciated value but at the rates of duty of customs prevalent at the time of import; (b) duty of customs on raw materials and on components on the value at the time of import and at the rates of duty of customs in force at the time of clearances; (xi) the importer shall maintain proper account of import, consumption and utilisation of the said goods and of exports made by him and shall submit such account to the Assistant Collector of Customs, in such form, in such manner, at such intervals and within such time, as may be specified by the Collector of Customs; (xii) the importer agrees that the jewellery, including the waste, refuse and rejects thereof, manufactured in the said undertaking, shall not be brought to any other place in India, for whatever purpose; (xiii) in the event of such a hundred per cent export oriented undertaking ceasing its operation or in the event of the said undertaking fails to discharge the export obligation specified in condition (i), gold, other precious metals, alloys, gems and other material for the manufacture of jewellery shall be transferred to such person, undertaking, agency or authority, as the Government of India in the Ministry of Commerce may specify in this behalf; (xiv) the loss of gold in the said manufacturing process or other operations, not exceeding three per cent in the case of studded jewellery and two per cent in the case of handicrafted or machine made plain jewellery, may be allowed by the Assistant Collector of Customs subject to fulfilment of such conditions as the Collector of Customs may think fit to specify and in the case of findings and mountings and the like, the loss allowed shall be determined on the basis of the weight of the gold content of each findings, mountings and the like exported; (xv) the import and export of the said goods, other than the capital goods, under this notification shall be allowed only by air-freight through the Customs Airports at Bombay, Calcutta, Madras, Trivandram and Delhi. Explanation . - For the purposes of this notification, - (a) "Board of Approval" means the Board appointed in this behalf by the Central Government in exercise of the powers conferred by section 14 of the Industries (Development and Regulation) Act, 1951 (65 of 1951) and the rules made thereunder, for the grant of approval to a hundred per cent export-oriented undertaking; (b) "hundred per cent export-oriented undertaking" means an undertaking which has been approved as such by the Board of Approval. Description of goods 1. Capital goods. 2. Raw Materials. 3. Components. 4. Spare parts of machinery. 5. Consumables required for manufacture of goods. 6. Samples prototype, not exceeding two in number, of each type of articles covered by the manufacturing activity. 7. Drawing, blue-prints, techincal maps and Charts, relating to the manufacturing activity. 8. Packaging materials. 9. Tools, Jigs, Gauges, Fixtures, Moulds, Dies, Instruments and Accessories. 10. Goods re-imported within one year from the date of exportation from the undertaking for re-export after repairs or re-conditioning. 11. Office Equipments, as permissible under the Open General Licence Order No. 27/90, dated 30th March, 1990, 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 Board of Approval.