Exemption to Goods Imported against Advance Licences - 159/90 - Customs -Tariff

Exemption to Goods Imported against Advance Licences Notification No. 159/90-Cus. Dated 30-3-1990 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. 116/88-Customs [G.S.R. No. 406(E)] dated the 30th March, 1988, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts goods imported into India against an Advance Licence issued under the Imports (Control) Order, 1955, being materials required to be imported for the purpose of manufacture of products (hereinafter referred to as the resultant products) or replenishment of materials having identical specifications and technical characteristics as these actually used in the manufacture of the resultant products exported, or both, or for export as mandatory spares alongwith the resultant products, for execution of one or more export orders or for transfer to another Advance Licence holder, 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 leviable thereon under section 3 of the said Customs Tariff Act, subject to the following conditions, namely :- (a) the materials imported are covered by a Duty Exemption Entitlement Certificate (hereinafter referred to as the said certificate), issued by the licensing authority in the form specified in the Schedule to this notification, in respect of the value, quantity, description, quality and technical characteristics, as specified in Part 'C' of the said Certificate: Provided that where the quantity allowed for a particular description of material cannot be imported within the CIF value specified under the said Certificate, the Collector of Customs may allow increase in the CIF value of such material to the extent of 10% but such increase shall not exceed the total value specified in the said Certificate; (b) the importer at the time of clearance of the imported materials makes - (i) a claim in the writing to the Collector of Customs for such exemption and executes a bond or legal undertaking before such authority as may be approved by the Central Government for complying with the conditions specified in this notification; (ii) a declaration before the Assistant Collector 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; (c) the goods corresponding to the resultant products and the mandatory spares, in respect of value, quantity, description, quality and technical characteristics, as specified in Part 'E' of the said Certificate are exported or transferred to another Advance Licence holder within the time specified in the said Certificate or such extended period as may be granted by the licensing authority or the Committee; (d) the exempt materials shall be utilised for the manufacture of resultant products specified in Part 'E' of the said Certificate or for export as mandatory spares, and no portion thereof shall be sold, leaned transferred or disposed of in any other manner: Provided that where such exempt materials are imported for replenishment of materials having identical specifications and technical characteristics as these used in the manufacture of resultant products exported, the holder of an Advance Licence may utilise or dispose of the replenished materials in accordance with the provisions of paragraph 250 in Chapter XIX of the Imports Export Policy April, 1990 - March, 1993. (e) in the case of goods being nylon fibre, nylon yarn, nylon fabrics, polyester fibre, polyester yarn, polyester fabrics, stainless steel sheets, stainless steel strips, magnetic tapes, precious metals, metals clad with precious metals and articles thereof, the import shall be only through any of the sea ports at Kandla, Bombay, Nhava Sheva, Cochin, Madras, Visakhapatnam and Calcutta or through any of the airports at Bombay, Calcutta, Delhi, Madras and Bangalore or through either of the internal container depots at Delhi or Bangalore, and the export of resultant products in which such goods are used shall be only through any of the said sea ports or airports or internal container depots; (f) the export of mandatory spares shall not exceed 5% of the CIF value of the Advance Licence; (g) Where the resultant products are transferred to another Advance Licence holder, such transfer shall be in accordance with the provisions relating to the Intermediate Advance Licences contained in Chapter XIX of the Im port Export Policy April, 1990 - March, 1993. Explanation. - In this notification,- (i) "Canalising agency" has the same meaning as in the Import and Export Policy April, 1990 - March, 1993; (ii) "committee" means the Inter-Departmental Committee as constituted by the Central Government under the Office Memorandum of the Govern ment of India in the Ministry of Commerce, Office of the Chief Controller of Imports Exports, No. 3/54/75-EPC dated the 3rd December, 1975 and the Circular Nos. 9/30-85-EPC dated the 28th June, 1985, and 168-ITC (PN)88-91 dated 29-9-1989 (F. No. 9/191/86-EPC), for the time being in force, or as re-constituted by the Central Government from time to time; (iii) "exempt materials" means the materials imported and specified in Part 'C' of the said Certificate and eligible for exemption from duty under this notification; (iv) "Import and Export Policy April, 1990 - March, 1993" means the Import and Export Policy April, 1990 - March, 1993 published vide Public Notice of the Government of India in the Ministry of Commerce No. 1-ITC(PN)/90-93 dated the 30th March, 1990, as amended from time to time; (v) "Imported into India against an Advance Licence" includes - (a) goods imported under any licence (including Open General Licence) issued under the Imports and Exports (Control) Act, 1947 (18 of 1947), for the time being in force, for which at the time of clearance out of Custom's Control, a valid Advance Licence is produced by the importer; (b) goods obtained from a canalising agency on high seas sale basis; (c) goods obtained from a canalising agency or any other agency designated by the Chief Controller of Imports and Exports and allowed importation in bulk for servicing the requirements of Advance Licence holders, where the goods are imported by the agency and warehoused in accordance with the provisions of Chapter IX of the Customs Act, 1962 (52 of 1962); (vi) "licensing authority" means an authority competent to grant a licence under the Imports (Control) Order, 1955 made under the Imports and Exports (Control) Act, 1947 (18 of 1947); (vii) "mandatory spares" means parts of the resultant product which are to be compulsorily supplied as spares as per the relevant export order or contract for substitution if it becomes faulty or worn out; (viii) "materials" means goods which are raw materials, components, intermediate products or consumables used in the manufacture of resultant products and their packings, or mandatory spares to be exported alongwith the resultant products; and where the relevant export order to be executed requires setting up of an industrial project or plant, the expression "materials" shall include such items as are imported into India against an Advance Licence, for subsequent exportation after carrying out modification or alignment or processing necessary for rendering them an intergral part or sub-system of the said industrial project or plant; (ix) "resultant products" means the goods specified in Part 'E' of the said Certificate. 2. Nothing contained in this notification shall apply to materials imported as replenishment of indigenous goods used in the manufacture of resultant products exported as discharge of export obligation under the said certificate, where the said indigenous goods are obtained without payment of duties of Central Excise under Rule 191B of Central Excise Rules, 1944. 3. This notification shall come into force on the 1st day of April, 1990. THE SCHEDULE DUTY EXEMPTION ENTITLEMENT CERTIFICATE (This consists of _____________________________________ pages) Serial No. _______________ Date of issue_________________ Port of registration : _______________ This is granted in favour of _______________________________ (Importer's name and full   _______________________________ address) Materials imported against Advance Licence No. ____________ dated the __________ issued by ____________ to the above importer and covered by the list of materials specified under Part 6 of this Certificate would be eligible for ex emption from duty subject to the conditions specified in the notification of the Govern ment of India in the Department of Revenue No. 159/90-Customs, dated the 30th March, 1990 (hereafter in this Schedule referred to as the said notification). The Importer shall make the exports in terms of condition (c) of the said notification within A bond/legal undertaking in terms of condition (b) of the said notification for Rs. ______ shall be executed with ____________________ before the clearance of the goods from Customs. After completion of exports, this Certificate shall be produced with endorsements as required by Parts H and I therein for discharge of the Bond/Legal undertaking before ________ who after discharging the bond/legal undertaking shall return this certificate to the issuing authority. Signature OFFICE SEAL (Issuing Authority) Date: Bond(s)/legal undertaking(s) in terms of condition (b) of the said notification executed on _______________________________ for Rs. _________ (Rupees ________) and registered under ________ with this office. Signature OFFICE SEAL Address Date: PART A Names and address of factories of Advance Licence holder/supporting manufacturer where the resultant products for exports are manufactured. PART B Names and addresses of the factories of Advance Licence holder and supporting manufacturer where the ancillaries to the resultant products for exports are manufactured. PART C LIST OF MATERIALS Sl. No. Descrip tion Quality Technical Charteristics Quantity CIF value S. No. of the resul tant in Part E. 1. 2. 3. 4. 5. 6. 7. Total value = PART D PARTICULARS OF IMPORTS (OF MATERIALS) Sl. No. S. No. of the materials in Part C Bill of Entry No. and date and name of the Customs House of import Description Quantity and net weight Value 1. 2. 3. 4. 5. 6. Duty leviable but for exemption Heading No. of the First Schedule to the Customs Tariff Act, 1975 and Heading No. in the Schedule to the Central Excise Tariff Act, 1985 for levy of additional duty. Rate of duty i) Basic ii) Additional iii) Auxiliary Amount of Duty Signature of the Customs Officer with designation and seal. 7. 8. 9. 10. PART E RESULTANTS PRODUCTS Sl. No. Description Quality Technical Characteristics Quantity Value S. No. of the materials Part C. 1. 2. 3. 4. 5. 6. 7. PART F PARTICULARS OF EXPORTS Sl. No. Sl. No. of the resultant products in Part E Name of the Customs House Shipping Bill No. and date of Shipment. Name of the vessel and date of outward en try of the vessel. 1. 2. 3. 4. 5. Quantity Net weight of the export product Description as per the shipping bill F.O.B. value Signature of the Customs Officer with designation and seal and remarks if any. 6. 7. 8. 9. 10. PART G Duties paid on materials in respect of which the conditions of the said notification are not complied with Sl. No. S. No. in Part D under which the im port of the mate rials has been entered. Description, quantity and value of materials on which duty is paid Rate of duty leviable i) Basic ii) Addi tional iii) Auxi liary Amount of i) duty ii) Inte rest Particulars of duty paying documents. Sign of the Customs Officer with desi gnation and seal 1. 2. 3. 4. 5. 6. 7. PART H CERTIFICATE I, _____________________________ (Name) Power of Attorney Holder of _____________________________ (Importers) having their factory premises at _______________ in whose favour the Duty Exemption Entitlement Certificate Serial No. _______ dated _______ has been granted, certify that - (a) the goods exported as specified in Serial No. (s) __________ mentioned of Part F have been manufactured in the factory premises mentioned in Part A/Part B; (b) the exempt materials as specified in Serial No. (s) ________ of Part D have been used in the manufacture of the goods exported as specified in Serial No.(s) ________ of Part 'F' vide condition (d) of the said Notification. (c) the exempt materials as specified in S. No. ________ of Part 'D' have been exported as mandatory spares as specified in S. No. _________ of Part 'F'. (d) materials corresponding to the exempt materials as specified in Serial No.(s) _____________ of Part D have been used in the manufacture of the goods exported as specified in Serial No.(s) ________ of Part F. (e) in respect of imported materials as specified in Serial No. (s) ________ of Part D, duties have been paid as specified in Serial No.(s) ........... of Part C. OFFICE STAMP Signature Date: Designation Address. Witness. PART I DISCHARGE OF BOND We request that Bond No./legal undertaking...........................may be discharged. Signature of Importer There is no objection to cancellation of the bond/legal undertaking so far as the Customs Department is concerned. Signature of the Customs Officer at the Port of Registration Designation and Seal. Bond No./legal undertaking ……………...……………..…. registered under Serial No. ……………… dated …..…….. for Rs. ….…………. (Rupees ……………………………….) discharged on …………….. after having satisfied myself that all the conditions of the above bond/legal undertaking have been fulfilled. OFFICE SEAL Signature of licensing authority DATED: Designation: