Raw Materials, Components, Intermediates, Consumables, Parts other than Spares and Packing Materials for the Manufacture of Final Goods to be Supplied to Specified Agencies or Projects - 260/92 - Customs -Tariff

Raw Materials, Components, Intermediates, Consumables, Parts other than Spares and Packing Materials for the Manufacture of Final Goods to be Supplied to Specified Agencies or Projects Notification No. 260/92-Cus. Dated 27-8-1992 In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 210/82-Customs, dated the 10th September, 1982, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts raw materials, components, intermediates, consumables, parts other than spares and packing materials (hereinafter referred to as the said goods) required for the manufacture of final goods to be supplied to the agencies or projects as are specified in the Schedule to this notification or for the replenishment of the said goods used in the manufacture of such final goods already supplied, when imported into India, from - (a) 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 (b) the whole of the additional duty leviable thereon under section 3 of the second mentioned Act, subject to the following conditions, namely :- (1) that the importer has been granted necessary import licence or release order on the concerned canalising agency by the licensing authority as specified in the Import (Control) Order, 1955, for the import or release of the said goods for the aforesaid purpose; (2) that the import licence contains the following endorsements inter alia :- (a) the description, quantity and value of each of the said goods individually under the said licence; (b) the description and quantity of final goods to be manufactured out of, or with, the said goods; (3) that the importer executes a bond in such form and for such sum as may be specified by the said licensing authority binding himself to fulfil the obligations and conditions stipulated in this notification and to pay on demand, an amount equal to the duty leviable on the said imported goods as are not proved to the satisfaction of the said licensing authority to have been used for the aforesaid purpose; (4) that the importer produces evidence to the satisfaction of the said licensing authority, for the purpose of discharging the liability in respect of customs duty as well as for discharging the obligations against the said licence; and (5) the said imported goods are utilised for the manufacture of goods which are supplied to agencies specified in the Schedule and that no portion thereof shall be loaned, transferred, sold or disposed of in any other manner. 2. Notwithstanding anything contained in conditions (1) to (5) of paragraph 1. (a) In a case where the final goods in respect of which the said goods have been imported are already supplied as required under this notification, the importer may use said goods for the manufacture of any other goods; and (b) In a case where the importer cannot use the said goods for the manufacture of any other goods also as required under clause (a) then, with the previous approval of the authority competent to grant the import licence referred to in this notification, being the authority not below the rank of the Chief Controller of Imports and Exports, the importer may transfer said goods to any other actual user, subject to such terms and conditions as the said authority may specify. 3. The exemption under this notification shall also be available to the said goods imported under an Open General Licence issued under section 3 of the Imports and Exports (Control) Act, 1947 (18 of 1947), if at the time of clearance of the said goods for home consumption, the import licence required under this notification is produced by the importer. Schedule (i) Supplies made to United Nations Organisations or under the aid programme of the United Nations or other multilateral agencies and paid for in foreign exchange, (ii) Supplies made to projects financed by the following multilateral or bilateral agencies/Funds or any other agency/Fund as may be notified by the Central Government, under international competitive bidding or under limited tender system in accordance with the procedures of those agencies/Funds : 1. Abu Dhabi Fund for Arab Economic Development 2. Asian Development Bank (ADB) 3. International Bank for Reconstruction and Development (IBRD/IDA) 4. International Fund for Agricultural Development (IFAD) 5. Kreditansdalt fur Wiederaufbau (KFW) 6. Kuwaiti Fund for Arab Economic Development 7. Organisation of Petroleum Exporting Countries (OPEC) Fund 8. Saudi Fund for Development (SFD) 9. United States Agency for International Development (USAID) 10. Yen credit channelised through Overseas Economic Cooperation Fund (OECF); Explanation. - In this notification, - (i) "Export and Import Policy" means the Export and Import Policy, 1 April, 1992 - 31 March, 1997 published vide Public Notice of the Government of India m the Ministry of Commerce No. 1-ITC(PN) 92-97 dated the 31st March, 1992; (ii) "Licensing authority" means an authority competent to grant a licence under the Import (Control) Order, 1955 made under the Imports and Exports (Control) Act, 1947 (18 of 1947).