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Components required for the manufacture of capital goods, when imported
into India by a manufacturer of such capital goods for supply to a person
holding a licence under the Export Promotion Capital Goods
Notification
No. 130 dated 25th August 1995 (As
amended by notification no. 163/95)
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 components required
for the manufacture of capital goods when imported into India by a manufacturer
of such capital goods for supply to a person holding a licence under the Export
Promotion Capital Goods (E.P.C.G. Scheme in terms of the Export and Import
Policy for import of capital goods at zero rate of duty in terms of notification
of the Government of India in the Ministry of Finance, No. 111/95-Customs, dated
the 5th June, 1995 from 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 the whole of the additional duty leviable thereon under section 3 of
the Customs Tariff Act, subject to the following conditions, namely: -
(i)
the components are imported under, and in accordance with, a licence
(hereinafter referred to as the said licence) granted
by the Licensing Authority in terms of second sub-paragraph of paragraph 46 of
the Export and Import Policy;
(ii)
the said licence specified, inter-alia, -
(a)
the description, quantity and value of components to be imported under the said
licence; and
(b)
the description, quantity and value of capital goods to be manufactured;
(iii)
the importer complies with all the requirements specified in the Export
and Import Policy, in respect of the said licence;
(iv)
the importer executes a bond, in such form and for such sum, as may be
specified by the Assistant Commissioner of Customs at the port of importation to
the effect that-
(1)
the components shall be used for the purpose specified above and that the
capital goods manufactured by the importer shall be supplied to the person
holding the licence under the Export Promotion Capital Goods Scheme in terms of
the Export and Import Policy for import of capital goods at zero rate of duty in
terms of the said Notification No.111/95-Customs, dated the 5th June,
1995;
Provided
that where capital goods required to be manufactured and supplied in terms of
the said licence have already been supplied, the components may be used by the
exporter for manufacture of any other capital goods in his factory and evidence
of receipt of such components in the factory and its utilisation for the
aforesaid purpose shall be produced to the satisfaction of the Assistant
Commissioner of Customs at the port of importation in lieu of certificate
envisaged in clause (3) hereunder;
(2)
the account of the said components received and consumed in the factory of the
importer for the aforesaid purpose shall be maintained;
(3)
the importer shall produce a certificate issued by the Assistant Commissioner of
Customs or Central Excise in whose jurisdiction the unit receiving the capital
goods is situated, indicating the description and quantity of such capital goods
supplied by the importer within a period of three months or such extended period
as the Assistant Commissioner of Customs at the port of importation may allow;
and
(4)
the importer shall pay, on demand, in the event of his failure to comply with
any of the above conditions, the duty leviable on the components but for the
exemption contained herein.
Explanation:
In this notification, -
(1)
�Capital goods� means any plant, machinery, equipment and
accessories required for-
(a)
manufacture or production of other goods, including packaging machinery and
equipments, refractories, refrigeration equipment, power generating sets,
machine tools, catalysts for initial charge, and equipments and instruments
for testing, research and development, quality and pollution control;
(b)
use in manufacturing, mining, agriculture, aquaculture, animal husbandry,
floriculture, horticulture, pisciculture, poultry and sericulture;
(2)
�Export and Import Policy� means the Export and Import Policy 1
April, 1992-31 March, 1997 (Revised edition: March 1995) published vide
notification of the Government of India in the Ministry of Commerce, No. 1 (RE
95) 92-97 dated the 31st March, 1995;
(3)
�Licensing Authority� means the Director General, Foreign Trade
appointed under section 6 of the Foreign Trade (Development and Regulation)
Act, 1992, (22 of 1992) or an officer authorised by him to grant a licence
under the said Act.
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