Concessional rate of duty on Machinery, equipment or tools taken on lease when re-exported after use - 027/2002 - Customs -Tariff

Superseded vide notification no. 72/2017 datd 16-8-2017 Concessional rate of duty on Machinery, equipment or tools taken on lease when re-exported after use. [Notification No. 27/02-Cus. dt. 1.03.2002]. 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 of the description specified in column (1) of the Table annexed hereto, from the payment of so much of the customs duty leviable thereon as is specified in column (3) of the said Table, subject to the limitations and conditions specified in column (2) thereof, namely: - TABLE 1 Description of Goods Limitations and conditions Extent of exemption goods 1 2 3 Machinery, equipment or tools, falling under Chapters 84, 85, 90 or any other Chapter of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (1) the goods have been taken on lease by the importer for use after import; (2) the importer makes a declaration at the time of import that the goods are being imported temporarily for execution of a contract; (3) the said goods are re-exported within three months of the date of such import or within such extended period not exceeding 18 months from the date of said import, as the Assistant Commissioner of Customs or the Deputy Commissioner of Customs, as the case may be, may allow; (4) where the Assistant Commissioner of Customs or the Deputy Commissioner of Customs, as the case may be, grants extension of the aforesaid period for re-export, the importer shall pay the difference between the duty payable under the relevant clause in column (3) and the duty already paid at the time of their import; and (5) the importer executes a bond, with a bank guarantee, undertaking- (a) to re-export the said goods within three months of the date of import or within the aforesaid extended period; (b) to produce the goods before the Assistant Commissioner of Customs or the Deputy Commissioner of Customs for identification before re-export; (c) to pay the balance of duty, along with interest, at the rate fixed by notification issued under section 28AB of the Customs Act, 1962, for the period starting from the date of import of the said goods and ending with the date on which the duty is paid in full, if the re-export does not take place within the stipulated period in the case of,- (i) goods which are re-exported within three months of the date of import, so much of the duty of customs as is in excess of the amount calculated at the rate of five per cent.; (ii) goods which are re-exported after three months, but within six months, of the date of import, so much of the duty of customs as is in excess of the amount calculated at the rate of fifteen per cent.; (iii) goods which are re-exported after six months, but within nine months, of the date of import, so much of the duty of customs as is in excess of the amount calculated at the rate of twenty five per cent.; (iv) goods which are re-exported after nine months, but within twelve months, of the date of import, so much of the duty of customs as is in excess of the amount calculated at the rate of thirty per cent.; (v) goods which are re-exported after twelve months, but within fifteen months, of the date of import, so much of the duty of customs as is in excess of the amount calculated at the rate of thirty five per cent.; (vi) goods which are re-exported after fifteen months, but within eighteen months, of the date of import, so much of the duty of customs as is in excess of the amount calculated at the rate of forty per cent., of the aggregate of the duties of customs, which would be leviable under the Customs Act, 1962 or under any other law, read with any notification for the time being in force in respect of the duty so chargeable. Note:- The goods imported under this concession shall not be eligible for drawback under sub-section (2) of section 74 of the Customs Act, 1962,] ****************** Notes: 1. Table has been substituted vide notification no. 27/2008 Cus dated 1/3/2008, before substitution it was read as: Description of Goods Limitations and conditions Extent of exemption goods 1 2. 3 Machinery, equipment or tools, falling under Chapters 84,85,90 or any other Chapter of the First Schedule to the Customs Tariff Act,1975 (51 of 1975).09 (1) the goods have been taken on lease by the importer for use after importation; (2) the importer makes a declaration at the time of import that the goods are being imported temporarily for execution of a contract; (3) the said goods are re-exported within six months of the date of importation, or within such extended period not exceeding one year from the date of importation, as the Assistant Commissioner of Customs or Dy. Commissioner of Customs, as the case may be, may allow; (4) where the Assistant Commissioner of Customs or Deputy Commissioner of Customs, as the case may be, grants extension of the aforesaid period for re-export, the importer shall pay the difference between the duty payable under clause(ii) in column (3) and the duty already paid at the time of importation; and (5) the importer executes a bond, with a bank under guarantee, undertaking - (a) to re-export the said goods within six months of the date of importation or with in the aforesaid extended period; (b) to produce the goods before the Assistant Commissioner of Customs or Deputy Commissioner of Customs for identification before re-export; (c) to pay the balance of duty, along with interest, at the rate fixed by notification issued under section 28AB of the said Customs Act,1962, for the period starting from the date of importation of the said goods and ending with the date on which the duty is paid in full, if the re-export does not take place within the stipulated period. (i) in the case of goods which are re-exported within six months of the date of importation, so much of the duty of customs as is in excess of the amount calculated at the rate of fifteen per cent of the aggregate of the duties of customs, which would be leviable under the said Customs Act, 1962 or under any other law for the time being in force, read with any notification for the time being in force in respect of the duty so chargeable; (ii) in the case of goods which are re-exported after six months, but within one year, of the date of importation, so much of the duty of customs as is in excess of the amount calculated at the rate of thirty per cent of the aggregate of the duties of customs, which would be leviable the said Customs Act, 1962 or under any other law for the time being in force, read with any notification for the time being in force in respect of the duty so chargeable.