Notification No. 110 dated 5th
June 1995 (As
amended by notification nos. 132/95, 146/95, 154/95, 31/96, 69/96, 95/96, 8/98,
75/98, 56/99, Notification No. 113 dated 16th
October 2002, Finance Act 2003-2004)
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 as specified
in the Table annexed hereto which is specified in the First Schedule to the
Customs Tariff Act, 1975 (51 of 1975) as is in excess of the amount calculated
at the rate of 15% ad valorem and whole of the additional duty leviable thereon
under section 3 of the said Customs Tariff Act, subject to the following
conditions, namely: -
(1)������ The goods imported are covered by a valid
licence issued on or after 1st May, 1995 under the Export Promotion
Capital Goods (E.P.C.G.) Scheme in terms of Export and Import Policy
(hereinafter referred to as the said Policy) permitting import on payment of
duty of customs at the rate of 15% and the said licence is produced for debit
by the proper officer of the customs at the time of clearance;
Provided that
for the import of spare parts, the validity period of the licence shall be
deemed to be the period permitted for fulfilment of the export obligation in
full
(2)������ Omitted
(3)������ The importer executes a bond in such form
and for such sum and with such surety or security as may be specified by the
Assistant commissioner of Customs binding himself to fulfil export obligation
equivalent to four times the CIF value of the goods imported, or for such
higher sum as may be fixed by the Licensing Authority, within a period of five
years from the date of issue of the said licence in the following proportions: -
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S. No.
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Period
from the date of issue of licence
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Proportion of total export obligation
|
|
1.
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1st
year
|
NIL
|
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2.
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2nd
year
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20%
|
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3.
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3rd
year
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20%
|
|
4.
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4th
year
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30%
|
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5.
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5th
year
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40%
|
Provided that
export obligation of a particular year may be set off by the excess exports
made in the preceding years.
(4)������ Spare parts including Jigs, Fixtures,
Dies, Moulds not exceeding 20% of the value of goods specified at Serial Nos.
1, 2 and 3 as actually imported and required for maintenance of capital goods
so imported, assembled, or manufactured.
(5)������ The importer shall, if he fails to
discharge a minimum of 25% of the export obligation prescribed for any
particular year, for three consecutive years, be liable to pay forthwith the
whole of the duty of customs leviable on the goods imported but for the
exemption contained in this notification together with interest at the rate of
15% per annum from the date of clearance of the goods.
(6)������ The capital goods imported, assembled or
manufactured are installed in the importer�s factory and a certificate from the
jurisdictional Assistant Commissioner of Central Excise is produced within six
months from the date of completion of imports or within such extended period as
the said Assistant Commissioner of Customs may allow.
Provided that
the capital goods may be installed in the factory of another manufacturer whose
name and address are endorsed on the licence referred to in condition (1) where
the bond for the full difference of duty in terms of condition (3), with a Bank
Guarantee is executed by the importer and such manufacturer binding themselves
jointly and severally to fulfil the export obligations and all other conditions
of this notification and to pay duty with interest in case of default.
(7)������ Notwithstanding anything contained in
conditions (3) And (4), where the Licensing Authority grants an extension of
year wise period or overall period of fulfilment of export obligation or
regularisation of shortfall, in export obligation not exceeding 5% of such
export obligation, the said year wise period or overall period of export
obligation may be extended and the said shortfall in export obligation be
condoned by the Assistant Commissioner of Customs;
Provided that
extension of year wise period of export obligation shall not be allowed more
than once and more than a period of one year within a period of five years.
Provided further that where the Licensing Authority
grants further extension of the period for fulfilment of export obligation
beyond the period as specified in this condition, then, subject to the
satisfaction of such conditions as may be specified in a Public Notice of the Government
of India in the Ministry of Commerce and Industry in this regard, such export
obligation may be extended, but shall in no case be extended beyond the 31st
day of March, 2004:
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S. No.
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Description of goods
|
|
(1)
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(2)
|
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1.
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Capital
goods
|
|
2.
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Capital
Goods in SKD/ CKD condition to be assembled into capital goods by the importer
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3.
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Components
of capital goods required for assembly or manufacture of capital goods by the
importer
|
|
4.
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Spare
parts not exceeding 10% of the value of goods specified at serial Nos. 1, 2
and 3 actually imported and required for maintenance of the capital goods so
imported, assembled, or manufactured
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Explanation:In this notification, -
(i)������� �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 equipments, power generating sets, machine tools,
catalysts for initial charge, and equipment 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;
(c) rendering services;
(ii)������ �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;
(iii)������ �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;
(iv)������ Omitted;
(v)������� �Export obligation�, in relation to importers other than
those rendering service means export to a place outside India of products
manufactured with the use of capital goods imported, assembled or manufactured
in terms of this notification; brackets, letters and figures in terms of this
notification, for making of supplies of such products in terms of clauses (a),
(b), (c), (e), (f) and (i) of para 121 of the Export and Import Policy and para
10.2 (g) of the Export and Import Policy 1997-2002 corrected upto 13th
April, 1998 shall be substituted and, in relation to importers rendering
services, means receiving payments in freely convertible foreign currency for
services rendered through the use of such capital goods.