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Office of the Commissioner of Customs Custom House, Cochin – 9

- - - - - Public Notice No. 23/2009

Attention of the trade and public is invited to the following instructions of the C.B.E.C, enclosed herewith, for information:

Sl. No.

Instruction No. and origin Subject

1. Notification No.89/2009 - Customs, dated 31-08-2009

Regarding anti-dumping on imports of Flexible Slabstock Polyol originating in, or exported from, the People‟s Republic of China, Republic of Korea, Chinese Taipei and Brazil


Regarding exemption to all goods imported from Antarctica into India from the whole of the duty of customs


Regarding implementation of Served From India Scheme (SFIS).

4. Notification No. 92/2009 -Customs, dated 11-09-2009

Regarding implementation of the Focus Product Scheme (FPS).


Regarding implementation of the Focus Market Scheme (FMS).


Regarding implementation of the agri Infrastructure incentive scheme for Status Holders under VKGUY scheme.


Regarding implementation of the Vishesh Krishi and Gram Udyog Yojana (VKGUY) scheme.


Regarding implementation of the Advance Authorization scheme.


Regarding implementation of exempts goods of description specified in column (2).


Regarding implementation of duty free Import authorization scheme(DFIA).


Regarding implementation ofthe Advance Authorization scheme for annual requirement.

12. NotificationNo.100/2009 -Customs, dated 11-09-2009

Regarding implementation of exempted goods.

13. Notification No.101/2009 Customs, dated 11-09-2009

Regarding implementation of valid authorization issued under the Export Promotion Capital Goods (EPCG).





http://www.cbec.gov.in/customs/cs-act/notifications/notfns-2k9/cs89-2k9.htm















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Regarding exemption to the capital goods imported under Status Holder Incentive Scheme(SHIS)

17. Notification No.105/2009 Customs,

dated 14-09-2009

Amends the notifications issued under the TPS and DFCE schemes

18. Notification No.131/2009 -Customs (N.T.), dated 31-08-2009

Amends Notification No. 36/2001 – Customs (N.T.), dated, the 3rd August, 2001


Appointment of Commissioners


Amends Notification No.15/2002-Customs (N.T.), dated, the 7th March, 2002


Amends Notification No.15/2002-Customs (N.T.), dated, the 7th March, 2002

22. Circular No.23/2009 vide F.No.450/117/2009-Cus.IV dtd. 01-09-2009 of CBEC

Powers of adjudication of the officers of Customs

23. Circular No.24/2009 vide F.No.609/09/2008-DBK dtd. 03-09-2009 of CBEC

Misuse of circular No.74/2002-Cus dated 8th November, 2002 – reg

[Issued in F.No.C1/01/2009-TU]

Sd/-

(B.SYED MOHAMMED) COMMISSIONER

Cochin, dated: 17.09.2009 Annexure : As above

// Attested // (K.A. Jathin)

Appraiser (Tariff Unit) Copy to: 1. The Chief Commissioner‟s Office, Cochin. 2. Commissioner‟s file/ Jt. Commissioner / All D.Cs & A.Cs / Development Commissioner

(CSEZ) / All Appraisers / All Sections / Guard File & As per mailing list. .All concerned officers are directed to note and comply with the instructions/changes. No separate S.O. is being issued.



http://www.cbec.gov.in/customs/cs-act/notifications/notfns-2k9/csnt131-2k9.htm








http://www.cbec.gov.in/customs/cs-circulars/cs-circulars09/circ23-2k9-cus.htm

http://www.cbec.gov.in/customs/cs-circulars/cs-circulars09/circ24-2k9-cus.htm

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GOVERNMENT OF INDIA MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No. 89 / 2009-Customs

New Delhi, dated the 31st August, 2009

G.S.R. (E). – Whereas, the designated authority, vide its notification No. 15/19/2008-DGAD, dated the 24th July,

2008, published in the Gazette of India, Part I, Section 1, Extraordinary, dated the 24th July, 2008, had initiated a review in

the matter of continuation of anti-dumping on imports of Flexible Slabstock Polyol (hereinafter referred to as the subject goods) falling under Sub- heading 3907 20 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), originating in, or exported from, the People‟s Republic of China, Republic of Korea, Chinese Taipei and Brazil (hereinafter referred to as the subject countries), imposed vide notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 4/2005- CUSTOMS, dated the 24

th January, 2005, published in the Gazette of India, Extraordinary, Part II,

Section 3, Sub-section (i) vide number G.S.R. 40(E), dated the 24th January, 2005;

And whereas, the Central Government had extended the anti-dumping duty on the subject goods, originating in, or exported from, the subject countries upto and inclusive of the 23

rd July, 2009 vide notification of the Government of

India, in the Ministry of Finance (Department of Revenue), No. 138/2008- Customs, dated the 31st December, 2008 ,

published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 909 (E), dated the 31

st December, 2008 ;

And whereas, in the matter of review of anti-dumping on import of the subject goods, originating in, or exported from, the subject countries, the designated authority in its final findings issued vide notification No. 15/19/2008-DGAD, dated 22nd July, 2009 published in the Gazette of India, Extraordinary, Part I, Section 1, dated the 24

th July, 2009, had

come to the conclusion that-

1. subject goods originating in or exported from China PR, Chinese Taipei and Korea RP had been exported to India below their normal value, resulting in dumping;

2. subject goods from Brazil had not been exported to India during the period of investigation (POI); therefore, the current dumping from Brazil could not be determined. The trend of imports indicated that imports from Brazil might not resume.

3. in case of revocation of anti-dumping duties on the subject goods from China PR, Chinese Taipei and Korea RP, the dumping was likely to continue, and the dumped imports from these countries likely to continue injury to the domestic industry.

and had recommended continued imposition of definitive anti-dumping duty on imports of the subject goods, originating in,

or exported from, the subject countries other than Brazil and imported into India, in order to remove injury to the domestic

industry;

Now, therefore, in exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the Customs Tariff Act, 1975 (51 of 1975) read with rules 18 and 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, the Central Government, after considering the aforesaid final findings of the designated authority, hereby imposes on the subject goods, the description of which is specified in column (3) of the Table below, falling under the said sub-heading of the First Schedule to the said Customs Tariff Act as specified in the corresponding entry in column (2), the specification(grade) of which is specified in column (4) of the said Table, originating in the country as specified in the corresponding entry in column (5), and produced by the producer as specified in the corresponding entry in column (7), when exported from the country as specified in the

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corresponding entry in column (6), by the exporter as specified in the corresponding entry in column (8), and imported into India, an anti-dumping duty at a rate which is equivalent to difference between the amount mentioned in the corresponding entry in column (9), in the currency as specified in the corresponding entry in column (11) and as per unit of measurement as specified in the corresponding entry in column (10), of the said Table and the landed value of imported goods in like currency as per like unit of measurement.

Table

Sl.

No

Tariff

item

Descrip-tion

of

goods

Grade Country of origin

Country

of export

Producer Exporter Amount Unit of measurement

Currency

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

1 3907 20 Flexible slabstock polyol

Molecular weight 3000-4000

China PR China PR Any Any 2601 MT USD



China PR Any country other than China PR

Any Any 2601 MT USD



Any country other than country/ies attracting anti dumping duty

China PR Any Any 2601 MT USD



Korea RP Korea RP Any Any 2601 MT USD



Korea RP Any country other than Korea RP

Any Any 2601 MT USD



Any country other than country/ies attracting anti dumping duty

Korea RP Any Any 2601 MT USD



Chinese Taipei

Chinese Taipei

Any Any 2601 MT USD



Chinese Taipei

Any country other than Chinese Taipei

Any Any 2601 MT USD

9 3907 20 Flexible Molecular Any country Chinese Any Any 2601 MT USD

5

slabstock polyol

weight 3000-4000

other than country/ies attracting anti dumping duty

Taipei

2. The anti-dumping duty imposed under this notification shall be effective for a period of five years (unless revoked,

superseded or amended earlier) from the date of publication of this notification in the Official Gazette. The anti-dumping

duty shall be paid in Indian currency.

Explanation. - For the purposes of this notification,-

(a) “landed value” means the assessable value as determined under the Customs Act, 1962 (52 of 1962) and includes all duties of customs except duties levied under sections 3, 8B, 9 and 9A of the said Customs Tariff Act, 1975;

(b) rate of exchange applicable for the purposes of calculation of anti-dumping duty shall be the rate which is specified in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), issued from time to time, in exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962) and the relevant date for determination of the rate of exchange shall be the date of presentation of the bill of entry under section 46 of the said Customs Act.

[F.No.354/148/2003 –TRU]

(Prashant Kumar) Under Secretary to the Government of India.

-------------------------------------------------------------------------------------------------

Government of India

Ministry of Finance

(Department of Revenue)

***

Notification No. 90/2009-Customs

New Delhi, dated the 7th September, 2009

G.S.R. 644 (E).- 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

all goods imported from Antarctica into India 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 duties leviable

thereon under section 3 of the said Customs Tariff Act , provided that a certificate from an officer not below the rank of a

Deputy Secretary in the Department of Ocean Development in the Ministry of Earth Sciences is produced in each case by

the importer to the jurisdictional Assistant Commissioner or Deputy Commissioner of Customs at the time of importation,

to the effect that such goods have been used for or are related to the Indian Antarctic Expedition or the Indian Polar

Science Programme.

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[F.No.354/146/ 2009-TRU]

(Prashant Kumar)

Under Secretary to the Government of India



Notification No. 91 / 2009-Customs

New Delhi, the 11th

September, 2009.

20 Bhadrapad , 1931 SAKA

G.S.R. 657 (E),- 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, namely, -

(i) in the case of hotel or stand alone restaurant or golf resort having catering facility, capital goods including spares, office equipment, professional equipment, office furniture, consumables, related to its service sector business and food items and alcoholic beverages but excluding other products classifiable in Chapters 1 to 24 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and items not permitted to be imported in terms of Appendix 37B of the Hand Book of Procedures, volume I;

(ii) in the case of service provider other than hotel or stand alone restaurant or golf resort having catering facility, capital goods including spares, office equipment, professional equipment, office furniture and consumables, related to its service sector business, but excluding the items not permitted to be imported in terms of Appendix 37B of the Hand Book of Procedure ,volume I,

when imported into India against a Served From India Scheme scrip (hereinafter referred to as the said scrip) issued under paragraph 3.12 of the Foreign Trade Policy, from,

(1) the whole of the duty of customs leviable thereon under the First Schedule to the said Customs Tariff Act, 1975(51 of 1975); and

(2) the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act, 1975.

subject to the following conditions, namely :-

i. that the said scrip has been issued to a service provider by the Regional Authority and it is produced before the proper officer of customs at the time of clearance for debit of the duties leviable on the goods, but for this exemption:

ii. that the said scrip and goods imported against it shall not be transferred or sold:

Provided that transfer of goods or said scrip may be allowed subject to actual user condition within the group company or managed hotels as defined in paragraph 9.28 and paragraph 9.35 respectively of the Foreign Trade Policy, as the case may be.

iii. that in respect of capital goods, office equipment and professional equipment a certificate from jurisdictional Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise or an independent Chartered Engineer, as the case may be, is produced confirming installation and use of the goods in the importer‟s factory or premises, within six months from the date of imports or within such extended period as the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, may allow;

iv. that the imports and exports are undertaken through seaports at Bedi (including Rozi-Jamnagar), Chennai, Cochin, Dahej, Dharamtar,Haldia (Haldia Dock complex of Kolkata port) Kakinada, Kandla, Kolkata, Krishnapatnam, Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra,Nagapattinam, Nhava Sheva, Okha, Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any of the

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airports at Ahmedabad, Bangalore, Bhubaneswar, Chennai, Cochin, Coimbatore, Dabolim (Goa), Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar, Trivandrum and Varanasi or through any of the Inland Container Depots at Agra, Ahmedabad, Anaparthy (Andhra Pradesh), Babarpur, Bangalore, Bhadohi, Bhatinda, Bhilwara, Bhiwadi, Bhusawal, Chheharata (Amritsar), Coimbatore, Dadri, Dappar (Dera Bassi), Daulatabad (Wanjarwadi and Maliwada), Delhi, Dighi (Pune), Durgapur (Export Promotion Industrial Park), Faridabad, Garhi Harsaru, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar, Jamshedpur, Jodhpur, Kanpur, Karur, Kota, Kundli, Loni (District Ghaziabad), Ludhiana, Madurai, Malanpur, Mandideep (District Raisen), Miraj, Moradabad, Nagpur, Nasik, Pimpri (Pune), Pitampur (Indore), Pondicherry, Raipur, Rewari, Rudrapur(Nainital), Salem, Singanalur, Surat, Surajpur, Tirupur, Tuticorin, Udaipur, Vadodara, Varanasi, , Waluj (Aurangabad) or through the Land Customs Station at Agartala, Amritsar Rail Cargo, Attari Road, Changrabandha, Dawki, Ghojadanga, Hilli, Jogbani, Mahadipur, Nepalganj Road, Nautanva (Sonauli), Petrapole, Ranaghat, Raxaul, Singhabad and Sutarkhandi or a Special Economic Zone notified under section 4 of the Special Economic Zones Act, 2005 (28 of 2005):

Provided that the Commissioner of Customs may with in the jurisdiction, by special order, or by a Public Notice, and subject to such conditions as may be specified by him, permits import and export from any other seaport or airport or inland container depot or through any land customs station.

2. Exemption under this notification shall not be available for import of vehicles even if such vehicles are freely importable under the Foreign Trade Policy;

Explanation .- For the purposes of this notification ,-

(i) “Capital goods” has the same meaning as assigned to it in paragraph 9.12 of the Foreign Trade Policy;

(ii) "Foreign Trade Policy" means the Foreign Trade Policy 2009-2014, published by the Government of India in the Ministry of Commerce and Industry vide notification No.1 /2009-2014, dated the 27th August, 2009 as amended from time to time;

(iii) "Licensing Authority or Regional Authority" means the Director General of 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.

[ F.No.605/58/2009-DBK ]

Sd/-

(Rajesh Kumar Agarwal)


-----------------------------------------------------------------------------------------------------------



New Delhi, the 11th September, 2009.


Notification No. 92 /2009 - Customs

G.S.R. 658 (E),- 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 when imported into India against a duty credit scrip issued under the Focus Product Scheme in accordance with paragraph 3.15 of the Foreign Trade Policy (hereinafter referred to as the said scrip) from,-

(a) the whole of the duty of customs leviable thereon under 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 said Customs Tariff Act,

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i. that the benefit under this notification shall be available only in respect of duty credit scrip issued against exports of the products notified in Appendix 37-D of the Handbook of Procedures, Vol.I of the Foreign Trade Policy;

ii. that the said scrip is produced before the proper officer of customs at the time of clearance for debit of the duties leviable on the goods, but for this exemption;

iii. that the said scrip and goods imported against it shall be freely transferable ;

iv. that the imports and exports are undertaken through seaports at Bedi (including Rozi-Jamnagar), Chennai, Cochin, Dahej, Dharamtar,Haldia (Haldia Dock complex of Kolkata port) Kakinada, Kandla, Kolkata, Krishnapatnam, Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra,Nagapattinam, Nhava Sheva, Okha, Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any of the airports at Ahmedabad, Bangalore, Bhubaneswar, Chennai, Cochin, Coimbatore, Dabolim (Goa), Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar, Trivandrum and Varanasi or through any of the Inland Container Depots at Agra, Ahmedabad, Anaparthy (Andhra Pradesh), Babarpur, Bangalore, Bhadohi, Bhatinda, Bhilwara, Bhiwadi, Bhusawal, Chheharata (Amritsar), Coimbatore, Dadri, Dappar (Dera Bassi), Daulatabad (Wanjarwadi and Maliwada), Delhi, Dighi (Pune), Durgapur (Export Promotion Industrial Park), Faridabad, Garhi Harsaru, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar, Jamshedpur, Jodhpur, Kanpur, Karur, Kota, Kundli, Loni (District Ghaziabad), Ludhiana, Madurai, Malanpur, Mandideep (District Raisen), Miraj, Moradabad, Nagpur, Nasik, Pimpri (Pune), Pitampur (Indore), Pondicherry, Raipur, Rewari, Rudrapur(Nainital), Salem, Singanalur, Surat, Surajpur, Tirupur, Tuticorin, Udaipur, Vadodara, Varanasi, , Waluj (Aurangabad) or through the Land Customs Station at Agartala, Amritsar Rail Cargo, Attari Road, Changrabandha, Dawki, Ghojadanga, Hilli, Jogbani, Mahadipur, Nepalganj Road, Nautanva (Sonauli), Petrapole, Ranaghat, Raxaul, Singhabad and Sutarkhandi or a Special Economic Zone notified under section 4 of the Special Economic Zones Act, 2005 (28 of 2005):

Provided that the Commissioner of Customs may with in the jurisdiction, by special order, or by a Public Notice, and subject to such conditions as may be specified by him, permits import and export from any other seaport/airport/inland container depot or through any land customs station;

v. that where the importer does not claim exemption from the additional duty of customs leviable under section 3 of the said Customs Tariff Act, he shall be deemed not to have availed the exemption from the said duty for the purpose of calculation of the said additional duty of customs;

vi. that the importer shall be entitled to avail of the drawback or CENVAT credit of additional duty leviable under section 3 of the said Customs Tariff Act against the amount debited in the said scrip;

vii. that the benefits under this notification shall not be available to the items listed in Appendix 37B of the Hand Book of Procedures ,volume I.

2. The following categories of exports specified in paragraph 3.17.2 of the Foreign Trade Policy shall not be counted for calculation of export performance or for computation of entitlement under the scheme:

i. EOUs / EHTPs / BTPs who are availing direct tax benefits / exemption;

ii. Export of imported goods covered under Para 2.35 of FTP;

iii. Exports through transshipment, meaning thereby that exports originating in third country but transshippedthrough India;

iv. Deemed Exports;

v. Exports made by SEZ units or SEZ products exported through DTA units; and

vi. Items, which are restricted or prohibited for export under Schedule-2 of Export Policy in ITC (HS).

Explanation:- In this notification-

(i) "Capital goods" has the same meaning as assigned to it in paragraph 9.12 of the Foreign Trade Policy;

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(ii) "Foreign Trade Policy" means the Foreign Trade Policy 2009-2014, published by the Government of India in the Ministry of Commerce and Industry vide notification No.1 /2009-2014, dated the 27th August, 2009 as amended from time to time:

(iii) "Goods" means any inputs, or goods including capital goods.

[ F.No.605/58/2009-DBK ]

Sd/- (Rajesh Kumar Agarwal)


----------------------------------------------------------------------------------------------------------

GOVERNMENT OF INDIA

MINISTRY OF FINANCE


New Delhi, the 11th

September, 2009.



G.S.R. 659 (E),- 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 when imported into India against a duty credit scrip issued under the Focus Market Scheme in accordance with paragraph 3.14 of the Foreign Trade Policy (hereinafter referred to as the said scrip) from,-

(a) the whole of the duty of customs leviable thereon under 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 said Customs Tariff Act,


i. that the benefit under this notification shall be available only in respect of duty credit scrip issued against exports to the countries notified in Appendix 37-C of the Handbook of Procedures, Volume I of the Foreign Trade Policy;

ii. that the said scrip is produced before the proper officer of customs at the time of clearance for debit of the duties leviable on the goods, but for this exemption;

iii. that the said scrip and goods imported against it shall be freely transferable ;

iv. that the imports and exports are undertaken through seaports at Bedi (including Rozi-Jamnagar), Chennai, Cochin, Dahej, Dharamtar,Haldia (Haldia Dock complex of Kolkata port) Kakinada, Kandla, Kolkata, Krishnapatnam, Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra,Nagapattinam, Nhava Sheva, Okha, Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any of the airports at Ahmedabad, Bangalore, Bhubaneswar, Chennai, Cochin, Coimbatore, Dabolim (Goa), Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar, Trivandrum and Varanasi or through any of the Inland Container Depots at Agra, Ahmedabad, Anaparthy (Andhra Pradesh), Babarpur, Bangalore, Bhadohi, Bhatinda, Bhilwara, Bhiwadi, Bhusawal, Chheharata (Amritsar), Coimbatore, Dadri, Dappar (Dera Bassi), Daulatabad (Wanjarwadi and Maliwada), Delhi, Dighi (Pune), Durgapur (Export Promotion Industrial Park), Faridabad, Garhi Harsaru, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar, Jamshedpur, Jodhpur, Kanpur, Karur, Kota, Kundli, Loni (District Ghaziabad), Ludhiana, Madurai, Malanpur, Mandideep (District Raisen), Miraj, Moradabad, Nagpur, Nasik, Pimpri (Pune), Pitampur (Indore), Pondicherry, Raipur, Rewari, Rudrapur (Nainital), Salem, Singanalur, Surat, Surajpur, Tirupur,

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Tuticorin, Udaipur, Vadodara, Varanasi, , Waluj (Aurangabad) or through the Land Customs Station at Agartala, Amritsar Rail Cargo, Attari Road, Changrabandha, Dawki, Ghojadanga, Hilli, Jogbani, Mahadipur, Nepalganj Road, Nautanva (Sonauli), Petrapole, Ranaghat, Raxaul, Singhabad and Sutarkhandi or a Special Economic Zone notified under section 4 of the Special Economic Zones Act, 2005 (28 of 2005):

Provided that the Commissioner of Customs may with in the jurisdiction , by special order, or by a Public Notice, and subject to such conditions as may be specified by him, permits import and export from any other seaport/airport/inland container depot or through any land customs station;

v. that where the importer does not claim exemption from the additional duty of customs leviable under section 3 of the said Customs Tariff Act, he shall be deemed not to have availed the exemption from the said duty for the purpose of calculation of the said additional duty of customs;

vi. that the importer shall be entitled to avail of the drawback or CENVAT credit of additional duty leviable under section 3 of the said Customs Tariff Act against the amount debited in the said scrip;

vii. that the benefits under this notification shall not be available to the items listed in Appendix 37B of the Hand Book of Procedures , Volume I.

2. The following categories of exports specified in paragraph 3.17.2 and 3.14.3 of the Foreign Trade Policy shall not be counted for calculation of export performance or for computation of entitlement under the scheme:



iii. Exports through transshipment, meaning thereby that exports originating in third country but transshipped through India;

iv. Deemed Exports;

v. Exports made by SEZ units or SEZ products exported through DTA units;

vi. Items, which are restricted or prohibited for export under Schedule-2 of Export Policy in ITC (HS);

vii. Supplies made to SEZ units;

viii. Service Exports;

ix. Diamonds and other precious, semi precious stones;

x. Gold, silver, platinum and other precious metals in any form, including plain and studded Jewellery;

xi. Ores and Concentrates, of all types and in all forms;

xii. Cereals, of all types;

xiii. Sugar, of all types and in all forms;

xiv. Crude / Petroleum Oil & Crude / Petroleum based Products covered under ITC HS codes 2709 to 2715,of all types and in all forms; and

xv. Export of Milk and Milk Products covered under ITC HS Codes 0401 to 0406, 19011001, 19011010,2105 & 3501.

Explanation,- In this notification,-

(i) "Capital goods" has the same meaning as assigned to it in paragraph 9.12 of the Foreign Trade Policy;

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(ii) "Foreign Trade Policy" means the Foreign Trade Policy 2009-2014, published by the Government of India in the Ministry of Commerce and Industry vide notification No.1 /2009-2014, dated the 27th August, 2009, as amended from time to time:

(iii) "Goods" means any inputs, or goods including capital goods.

[ F.No.605/58/2009-DBK ]

Sd/-



--------------------------------------------------------------------------------------------------------------






G.S.R. 660 (E),- 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 capital goods specified in paragraph 3.13.4 of the Foreign Trade Policy, when imported into India against an Agri.Infrastructure Incentive scrip (hereinafter referred to as the said scrip) issued under Vishesh Krishi and Gram Udyog Yojana (Special Agriculture and Village Industry Scheme) in accordance with the aforesaid paragraph, -

(a) from the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975); and

(b) from the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act, 1975(51 of 1975), subject to the following conditions, namely,-

i. that the said scrip has been issued to an exporter of products specified in paragraph 3.13.4 of the Foreign Trade Policy by the Licensing Authority or Regional Authority and it is produced before the proper officer of customs at the time of clearance for debit of the duties leviable on the goods;

ii. that the scrip shall be non-transferable and the capital goods allowed for import shall be in accordence with the provisions of paragraph 3.13.4 of the Foreign Trade Policy:

Provided that for import of Cold Chain equipments, the scrip shall be freely transferable

amongst status holders;

iii. that the capital goods imported under para 3.13.4 of the Foreign Trade Policy shall be subject to actual user condition and the importer at the time of clearance of the said capital goods, shall furnish an undertaking to this effect to the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that in case of non compliance of the said condition, he shall pay on demand an amount equal to the duty leviable, but for the exemption contained herein together with interest at the rate of fifteen percent per annum from the date of clearance of the said materials:

iv. that the imports and exports are undertaken through seaports at Bedi (including Rozi-Jamnagar), Chennai, Cochin, Dahej, Dharamtar,Haldia (Haldia Dock complex of Kolkata port) Kakinada, Kandla, Kolkata,

12

Krishnapatnam, Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra,Nagapattinam, Nhava Sheva, Okha, Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any of the airports at Ahmedabad, Bangalore, Bhubaneswar, Chennai, Cochin, Coimbatore, Dabolim (Goa), Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar, Trivandrum and Varanasi or through any of the Inland Container Depots at Agra, Ahmedabad, Anaparthy (Andhra Pradesh), Babarpur, Bangalore, Bhadohi, Bhatinda, Bhilwara, Bhiwadi, Bhusawal, Chheharata (Amritsar), Coimbatore, Dadri, Dappar (Dera Bassi), Daulatabad (Wanjarwadi and Maliwada), Delhi, Dighi (Pune), Durgapur (Export Promotion Industrial Park), Faridabad, Garhi Harsaru, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar, Jamshedpur, Jodhpur, Kanpur, Karur, Kota, Kundli, Loni (District Ghaziabad), Ludhiana, Madurai, Malanpur, Mandideep (District Raisen), Miraj, Moradabad, Nagpur, Nasik, Pimpri (Pune), Pitampur (Indore), Pondicherry, Raipur, Rewari, Rudrapur(Nainital), Salem, Singanalur, Surat, Surajpur, Tirupur, Tuticorin, Udaipur, Vadodara, Varanasi, , Waluj (Aurangabad) or through the Land Customs Station at Agartala, Amritsar Rail Cargo, Attari Road, Changrabandha, Dawki, Ghojadanga, Hilli, Jogbani, Mahadipur, Nepalganj Road, Nautanva (Sonauli), Petrapole, Ranaghat, Raxaul, Singhabad and Sutarkhandi or a Special Economic Zone notified under section 4 of the Special Economic Zones Act, 2005 (28 of 2005):


v. that the importer shall be entitled to avail of the drawback or CENVAT credit of additional duty leviable under Section 3 of the Customs Tariff Act, 1975 (51 of 1975) against the amount debited in the said scrip.




iii. Exports through transshipment, meaning thereby that exports originating in third country but transshippedthrough India;

iv. Deemed Exports;



Explanation. - For the purposes of this notification,-



(iii) "Licensing Authority or Regional Authority" means the Director General of 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.

[F.No.605/58/2009-DBK ]

Sd/-



13

GOVERNMENT OF INDIA

MINISTRY OF FINANCE




Notification No. 95 /2009-Customs

G.S.R 661 (E),- 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 inputs or goods including capital goods, when imported into India against a duty credit scrip (hereinafter referred to as the said scrip) issued under Vishesh Krishi and Gram Udyog Yojana (Special Agriculture and Village Industry Scheme) in accordance with paragraph 3.13.2 of the Foreign Trade Policy: -

(a) from the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975);and

(b) from the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act, 1975,


i. that the said scrip has been issued to an exporter of products specified in paragraph 3.13.2 of the Foreign Trade Policy by the Licensing Authority or Regional Authority and it is produced before the proper officer of customs at the time of clearance for debit of the duties leviable on the goods;

ii. that the items allowed for import shall be in accordance with paragraph 3.17.5 of the Foreign Trade Policy; iii. that the said scrip and goods imported against it shall be freely transferable ;

iv. that the imports and exports are undertaken through seaports at Bedi (including Rozi-Jamnagar), Chennai, Cochin, Dahej, Dharamtar, Haldia (Haldia Dock complex of Kolkata port) Kakinada, Kandla, Kolkata, Krishnapatnam, Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra, Nagapattinam, Nhava Sheva, Okha, Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any of the airports at Ahmedabad, Bangalore, Bhubaneswar, Chennai, Cochin, Coimbatore, Dabolim (Goa), Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar, Trivandrum and Varanasi or through any of the Inland Container Depots at Agra, Ahmedabad, Anaparthy (Andhra Pradesh), Babarpur, Bangalore, Bhadohi, Bhatinda, Bhilwara, Bhiwadi, Bhusawal, Chheharata (Amritsar), Coimbatore, Dadri, Dappar (Dera Bassi), Daulatabad (Wanjarwadi and Maliwada), Delhi, Dighi (Pune), Durgapur (Export Promotion Industrial Park), Faridabad, Garhi Harsaru, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar, Jamshedpur, Jodhpur, Kanpur, Karur, Kota, Kundli, Loni (District Ghaziabad), Ludhiana, Madurai, Malanpur, Mandideep (District Raisen), Miraj, Moradabad, Nagpur, Nasik, Pimpri (Pune), Pitampur (Indore), Pondicherry, Raipur, Rewari, Rudrapur(Nainital), Salem, Singanalur, Surat, Surajpur, Tirupur, Tuticorin, Udaipur, Vadodara, Varanasi, , Waluj (Aurangabad) or through the Land Customs Station at Agartala, Amritsar Rail Cargo, Attari Road, Changrabandha, Dawki, Ghojadanga, Hilli, Jogbani, Mahadipur, Nepalganj Road, Nautanva (Sonauli), Petrapole, Ranaghat, Raxaul, Singhabad and Sutarkhandi or a Special Economic Zone notified under section 4 of the Special Economic Zones Act, 2005 (28 of 2005):


14

v. that the importer shall be entitled to avail of the drawback or CENVAT credit of additional duty leviable under section 3 of the Customs Tariff Act, 1975 (51 of 1975) against the amount debited in the said scrip.




iii. Exports through transshipment, meaning thereby that exports originating in third country but transshipped through India;

iv. Deemed Exports;



Explanation .- For the purposes of this notification ,-



(iii) "Licensing Authority or Regional Authority" means the Director General of 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.

[F.No.605/58/2009-DBK]



----------------------------------------------------------------------------------------------------------



New Delhi, the 11th

September, 2009.



G.S.R. 662(E),- 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 materials imported into India against an Advance Authorisation issued in terms of paragraph 4.1.3 of the Foreign Trade Policy (hereinafter referred to as the said authorisation) 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, safeguard duty and anti-dumping duty leviable thereon, respectively, under sections 3, 8B and 9A of the said Customs Tariff Act, subject to the following conditions, namely :-

15

i. that the said authorisation is produced before the proper officer of customs at the time of clearance for debit;

ii. that the said authorisation bears,-

(a) the name and address of the importer and the supporting manufacturer in cases where the authorisation has been issued to a merchant exporter; and

(b) the shipping bill number(s) and date(s) and description,quantity and value of exports of the resultant product in cases where import takes place after fulfilment of export obligation; or

(c) the description and other specifications where applicable of the imported materials and the description,quantity and value of exports of the resultant product in cases where import takes place before fulfilment of export obligation;

iii. that the materials imported correspond to the description and other specifications where applicable mentioned in the authorisation and the value and quantity thereof are within the limits specified in the said authorisation;

iv. that in respect of imports made before the discharge of export obligation, the importer at the time of clearance of the imported materials executes a bond with such surety or security and in such form and for such sum as may be specified by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, binding himself to pay on demand an amount equal to the duty leviable, but for the exemption contained herein, on the imported materials in respect of which the conditions specified in this notification are not complied with, together with interest at the rate of fifteen percent per annum from the date of clearance of the said materials;

v. that in respect of imports made after the discharge of export obligation, if facility of CENVAT Credit under CENVAT Credit Rules, 2004 has been availed, then the importer shall, at the time of clearance of the imported materials furnish a bond to the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, binding himself, to use the imported materials in his factory or in the factory of his supporting manufacturer for the manufacture of dutiable goods and to submit a certificate, from the jurisdictional Central Excise officer or from a specified chartered accountant within six months from the date of clearance of the said materials, that the imported materials have been so used:

Provided further that if the importer pays additional duty of customs leviable on the imported materials but for the exemption contained herein, then the imported materials may be cleared without furnishing a bond specified in this condition and the additional duty of customs so paid shall be eligible for availing CENVAT Credit under the CENVAT Credit Rules, 2004;

vi. that in respect of imports made after the discharge of export obligation in full, and if facility under rule 18 (rebate of duty paid on materials used in the manufacture of resultant product) or sub-rule (2) of rule 19 of the Central Excise Rules, 2002 or CENVAT credit under CENVAT Credit Rules, 2004 has not been availed and the importer furnishes proof to this effect to the satisfaction of the Deputy Commissioner of Customs or the Assistant Commissioner of Customs as the case may be, then the imported materials may be cleared without furnishing a bond specified in condition (v);

vii. that the imports and exports are undertaken through seaports at Bedi (including Rozi-Jamnagar), Chennai, Cochin, Dahej, Dharamtar,Haldia (Haldia Dock complex of Kolkata port) Kakinada, Kandla, Kolkata, Krishnapatnam, Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra,Nagapattinam, Nhava Sheva, Okha, Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any of the airports at Ahmedabad, Bangalore, Bhubaneswar, Chennai, Cochin, Coimbatore, Dabolim (Goa), Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar, Trivandrum and Varanasi or through any of the Inland Container Depots at Agra, Ahmedabad, Anaparthy (Andhra Pradesh), Babarpur, Bangalore, Bhadohi, Bhatinda, Bhilwara, Bhiwadi, Bhusawal, Chheharata (Amritsar), Coimbatore, Dadri, Dappar (Dera Bassi), Daulatabad (Wanjarwadi and Maliwada), Delhi, Dighi (Pune), Durgapur (Export Promotion Industrial Park), Faridabad, Garhi Harsaru, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar, Jamshedpur, Jodhpur, Kanpur, Karur, Kota, Kundli, Loni (District Ghaziabad), Ludhiana, Madurai, Malanpur, Mandideep (District Raisen), Miraj, Moradabad, Nagpur, Nasik, Pimpri (Pune), Pitampur (Indore), Pondicherry, Raipur, Rewari, Rudrapur(Nainital), Salem, Singanalur, Surat, Surajpur, Tirupur, Tuticorin, Udaipur, Vadodara, Varanasi, , Waluj (Aurangabad) or through the Land Customs Station at Agartala, Amritsar Rail Cargo, Attari Road, Changrabandha, Dawki, Ghojadanga, Hilli, Jogbani, Mahadipur, Nepalganj Road, Nautanva (Sonauli), Petrapole, Ranaghat, Raxaul, Singhabad and Sutarkhandi or a Special Economic Zone notified under section 4 of the Special Economic Zones Act, 2005 (28 of 2005):

16


viii. that the export obligation as specified in the said authorization (both in value and quantity terms) is discharged within the period specified in the said authorization or within such extended period as may be granted by the Regional Authority by exporting resultant products, manufactured in India which are specified in the said authorization and in respect of which facility under rule 18(rebate of duty paid on materials used in the manufacture of resultant product) or sub-rule (2) of rule 19 of the Central Excise Rules, 2002 has not been availed:

Provided that an Advance Intermediate authorization holder shall discharge export obligation by supplying the resultant products to exporter in terms of paragraph 4.1.3 (ii) of the Foreign Trade Policy;

ix. that the importer produces evidence of discharge of export obligation to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, within a period of sixty days of the expiry of period allowed for fulfilment of export obligation, or within such extended period as the said Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, may allow;

x. that the said authorisation shall not be transferred and the said materials shall not be transferred or sold;

Provided that the said materials may be transferred to a job worker for processing subject to complying with the conditions specified in the relevant Central Excise notifications permitting transfer of materials for job work;

Provided further that, no such transfer for purposes of job work shall be effected to the units located in areas eligible for area based exemptions from the levy of excise duty in terms of notification Nos. 49/03-CE and 50/03-CE both dated 10

th June,2003, 32/99-CE dated 8

th July,1999, 33/99-CE dated 8

th July,1999, 8/04-CE

dated 21stJanuary,2004, 20/07-CE dated 25

th April,2007,56/02-CE dated 14

th November, 2002,57/02-CE dated

14th

November,2002, 71/03-CE dated 9th

September,2003, 56/03-CE dated 25th

June,2003 and 39/01-CE dated 31

st July,2001;

xi. that in relation to the said authorisation issued to a merchant exporter,any bond required to be executed by the importer in terms of this notification shall be executed jointly by the merchant exporter and the supporting manufacturer binding themselves jointly and severally to comply with the conditions specified in this notification.

2. Where the materials are found defective or unfit for use, the said materials may be re-exported back to the foreign supplier within six months from the date of clearence of the said material or such extended period not exceeding a further period of six months as the Commissioner of Customs may allow:

Provided that at the time of re-export the materials are identified to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, as the materials which were imported.

3. Notwithstanding anything contained in this notification, the actual user condition specified in condition numbers (viii) and (x) shall not be applicable in respect of authorisation issued for import of raw sugar for imports made from the 17th February, 2009 till 30th September, 2009 and the export obligation may also be fulfilled by procuring white sugar from any other factory with effect from the 17th February, 2009.

Explanation, – For the purposes of this notification,-

(i) “Dutiable goods” means excisable goods which are not exempt from central excise duty and which are not chargeable to „nil‟ rate of central excise duty;

(ii) "Foreign Trade Policy" means the Foreign Trade Policy 2009-2014, published by the Government of India in the Ministry of Commerce and Industry vide notification No.1 /2009-2014, dated the 27th August 2009 as amended from time to time;

(iii) “Licensing Authority or Regional Authority” means the Director General of Foreign Trade appointed under section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officer authorized by him to grant a licence under the said Act;

(iv) “Manufacture” has the same meaning as assigned to it in paragraph 9.37 of the Foreign Trade Policy;

17

(v) “Materials” means-

(a) raw materials, components, intermediates, consumables, catalysts and parts which are required for manufacture of resultant product;

(b) mandatory spares within a value limit of ten per cent. of the value of the licence which are required to be exported along with the resultant product;

(c) fuel required for manufacture of resultant product;

(d) packaging materials required for packing of resultant product;

(vi) “Specified Chartered Accountant” means a statutory auditor or a Chartered Accountant who certifies the importer‟s financial records under the Companies Act, 1956 ( 1 of 1956) or the Sales Tax/ Value Added Tax Act of the State Government or the Income Tax Act, 1961 ( 43 of 1961).

[F.No.605/58/2009-DBK]

Sd/-


Under Secretary to the Government

-------------------------------------------------------------------------------------------------------------

GOVERNMENT OF INDIA

MINISTRY OF FINANCE


Notification NO. 97 /2009-CUSTOMS

New Delhi, the 11 September, 2009

G.S.R. 663 (E). - 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 the goods of description specified in column (2) of the Table below, when imported into India,-

(a) from so much of duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as is in excess of the amount calculated at the rate specified in the corresponding entry in column (3) of the said Table;

(b) from so much of additional duty leviable thereon under section 3 of the said Customs Tariff Act, as is in excess of the amount calculated at the rate specified in the corresponding entry in column (4) of the said Table;


(i) that the importer has been issued a Duty Entitlement Pass Book Scrip by the Licensing Authority in terms of paragraph 4.3 of the Foreign Trade Policy or Rule 24 or Rule 30 of the Special Economic Zones Rules, 2006;

(ii) that the importer has been permitted credit entries in the said Duty Entitlement Pass Book Scrip by the Licensing Authority at the rates notified by the Government of India in the Ministry of Commerce and Industry for the products exported;

(iii) that the said Duty Entitlement Pass Book Scrip is produced before the proper officer of Customs for debit of the duties leviable on the goods, but for exemption contained herein :

18

(iv) the said Duty Entitlement Pass Book Scrip shall be valid for twenty four months from the date of issue or such extended period as may be granted by the Licensing Authority for import and export only at the port of registration which shall be one of the sea ports at Bedi (including Rozi-Jamnagar), Chennai, Cochin, Dahej, Dharamtar,Haldia (Haldia Dock complex of Kolkata port) Kakinada, Kandla, Kolkata, Krishnapatnam, Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra,Nagapattinam, Nhava Sheva, Okha, Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any of the airports at Ahmedabad, Bangalore, Bhubaneswar, Chennai, Cochin, Coimbatore, Dabolim (Goa), Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar, Trivandrum and Varanasi or through any of the Inland Container Depots at Agra, Ahmedabad, Anaparthy (Andhra Pradesh), Babarpur, Bangalore, Bhadohi, Bhatinda, Bhilwara, Bhiwadi, Bhusawal, Chheharata (Amritsar), Coimbatore, Dadri, Dappar (Dera Bassi), Daulatabad (Wanjarwadi and Maliwada), Delhi, Dighi (Pune), Durgapur (Export Promotion Industrial Park), Faridabad, Garhi Harsaru, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar, Jamshedpur, Jodhpur, Kanpur, Karur, Kota, Kundli, Loni (District Ghaziabad), Ludhiana, Madurai, Malanpur, Mandideep (District Raisen), Miraj, Moradabad, Nagpur, Nasik, Pimpri (Pune), Pitampur (Indore), Pondicherry, Raipur, Rewari, Rudrapur(Nainital), Salem, Singanalur, Surat, Surajpur, Tirupur, Tuticorin, Udaipur, Vadodara, Varanasi, , Waluj (Aurangabad) or through the Land Customs Station at Agartala, Amritsar Rail Cargo, Attari Road, Changrabandha, Dawki, Ghojadanga, Hilli, Jogbani, Mahadipur, Nepalganj Road, Nautanva (Sonauli), Petrapole, Ranaghat, Raxaul, Singhabad and Sutarkhandi or a Special Economic Zone notified under section 4 of the Special Economic Zones Act, 2005 (28 of 2005):

Provided that where the expiry of the Duty Entitlement Pass Book falls before the last day of the month, such Duty Entitlement Pass Book shall be deemed to be valid till the last day of the said month :

Provided further that the Commissioner of Customs may, by special order or a public notice and subject to such conditions as may be specified by him, permit import and export through any other sea-port, airport, inland container depot or through a land customs station within his jurisdiction.

(v) that where the importer does not claim exemption from the additional duty of customs leviable under section 3 of the Customs Tariff Act, 1975 (51 of 1975), he shall be deemed not to have availed the exemption from the said duty for the purpose of calculation of the said additional duty of customs;

(vi) that the importer shall be entitled to avail the drawback or CENVAT credit of additional duty leviable under section 3 of the said Customs Tariff Act against the amount debited in the said Duty Entitlement Pass Book Scrip;

(vii) that where benefit of exemption from duty is claimed by a person, who is not a Duty Entitlement Pass Book Scrip holder, such benefit shall be permissible only against specific amount of credit, not being a provisional credit, transferred by a Duty Entitlement Pass Book Scrip holder to such person.

2. This notification shall have effect upto and inclusive of the 31st day of December, 2010.

TABLE

S. No. Description of goods Standard rate Additional Duty rate

(1) (2) (3) (4)

1. Goods other than edible oils Nil Nil

2. Edible Oils 50% of applied rate of duty 50% of applied rate of additional duty.

Explanation, - For the purposes of this notification,-

(i) “Foreign Trade Policy” means Foreign Trade Policy 2009-2014 published in the Gazette of India, Part II, Section 3, Sub-section (ii) vide notification of the Government of India in the Ministry of Commerce and Industry, No.1/2009-2014, dated the 27

th August, 2009 as amended from time to time;

(ii) “Licensing Authority” means the Director General of Foreign Trade appointed under section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officer authorized by him to grant a licence under the said Act;

(iii) “applied rate of duty” means the standard rate of duty specified in the First Schedule to the said Customs Tariff Act with respect to the goods specified in column (2) of the said Table, read with any other notification (for the time being in force) issued in respect of such goods under sub-section (1) of section 25 of the said Customs Act;

19

(iv) “applied rate of additional duty” means the additional duty leviable under section 3 of the said Customs Tariff Act with respect to the goods specified in column (2) of said Table, read with any other notification (for the time being in force) issued in respect of such goods under sub-section (1) of section 25 of the said Customs Act.

(F.NO.605/58/2009-DBK) (Rajesh Kumar Agarwal) UNDER SECRETARY TO THE GOVT. OF INDIA

GOVERNMENT OF INDIA

MINISTRY OF FINANCE


New Delhi, the 11th

September, 2009.



G.S.R. 664(E),- 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 materials imported into India against a Duty Free Import Authorisation issued in terms of paragraph 4.2.1 and 4.2.2 of the Foreign Trade Policy (hereinafter referred to as the said authorisation) 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, safeguard duty and anti-dumping duty leviable thereon, respectively, under sections 3, 8B and 9A of the said Customs Tariff Act, subject to the following conditions namely :-

(i) that the description, value and quantity of materials imported are covered by the said authorisation and the said authorisation is produced before the proper officer of customs at the time of clearance for debit:

Provided that in respect of resultant product specified in paragraph 4.32.3 of the Hand Book of Procedures (Vol.I) of the Foreign Trade Policy, the materials permitted in the said authorisation or a duty free import authorisation for intermediate supply, as the case may be, shall be of the same quality, technical characteristics and specifications as the materials used in the said resultant product:

Provided further that in respect of the said resultant product the exporter shall give declaration with regard to the quality, technical characteristic and specifications of materials used in the shipping bill;

(ii) that where import takes place after fulfilment of export obligation, the shipping bill number(s) and date(s) and quantity and Free on Board value of the resultant product are endorsed on the said authorisation:

Provided that where import takes place before fulfilment of export obligation, the quantity and Free on Board value of the resultant product to be exported are endorsed on the said authorisation;

(iii) that in respect of imports made before the discharge of export obligation in full, the importer at the time of clearance of the imported materials executes a bond with such surety or security and in such form and for such sum as may be specified by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, binding himself to pay on demand an amount equal to the duty leviable, but for the exemption contained herein, on the imported materials in respect of which the conditions specified in this notification are not complied with, together with interest at the rate of fifteen per cent. per annum from the date of clearance of the said materials;

(iv) that in respect of imports made after the discharge of export obligation in full, if facility under rule 18 (rebate of duty paid on materials used in the manufacture of resultant product) or sub-rule (2) of rule 19 of the Central Excise Rules, 2002 or CENVAT Credit under CENVAT Credit Rules, 2004 has been availed, then the importer shall, at the time of clearance of the imported materials furnish a bond to the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, binding himself, to use the imported materials in his factory or in the factory of his supporting manufacturer for the manufacture of dutiable goods and to submit a certificate, from the jurisdictional Central Excise officer within six months from the date of clearance of the said materials, that the imported materials have been so used:

20

Provided that, in case,

(a) materials are imported against an authorisation transferred by the Regional Authority, or

(b) the imported materials are transferred with the permission of Regional Authority,

then the importer shall pay an amount equal to the additional duty of customs leviable on the materials so imported or transferred, but for the exemption contained herein, together with interest at the rate of fifteen per cent. per annum from the date of clearance of the said materials:

Provided further that no such amount shall be payable in respect of Authorizations issued from 1.5.2006 to 31.3.2007:

Provided also that if the importer pays additional duty of customs leviable on the imported materials but for the exemption contained herein, then the imported materials may be cleared without furnishing a bond specified in this condition and the additional duty of customs so paid shall be eligible for availing CENVAT Credit under the CENVAT Credit Rules, 2004;

(v) that in respect of imports made after the discharge of export obligation in full, and if facility under rule 18 (rebate of duty paid on materials used in the manufacture of resultant product) or sub-rule 2 of rule 19 of the Central Excise Rules, 2002 or CENVAT credit under CENVAT Credit Rules, 2004 has not been availed and the importer furnishes proof to this effect to the satisfaction of the Deputy Commissioner of Customs or the Assistant Commissioner of Customs as the case may be, then the imported materials may be cleared without furnishing a bond specified in condition (iv);

(vi) that the imports and exports are undertaken through seaports at Bedi (including Rozi-Jamnagar), Chennai, Cochin, Dahej, Dharamtar,Haldia (Haldia Dock complex of Kolkata port) Kakinada, Kandla, Kolkata, Krishnapatnam, Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra,Nagapattinam, Nhava Sheva, Okha, Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any of the airports at Ahmedabad, Bangalore, Bhubaneswar, Chennai, Cochin, Coimbatore, Dabolim (Goa), Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar, Trivandrum and Varanasi or through any of the Inland Container Depots at Agra, Ahmedabad, Anaparthy (Andhra Pradesh), Babarpur, Bangalore, Bhadohi, Bhatinda, Bhilwara, Bhiwadi, Bhusawal, Chheharata (Amritsar), Coimbatore, Dadri, Dappar (Dera Bassi), Daulatabad (Wanjarwadi and Maliwada), Delhi, Dighi (Pune), Durgapur (Export Promotion Industrial Park), Faridabad, Garhi Harsaru, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar, Jamshedpur, Jodhpur, Kanpur, Karur, Kota, Kundli, Loni (District Ghaziabad), Ludhiana, Madurai, Malanpur, Mandideep (District Raisen), Miraj, Moradabad, Nagpur, Nasik, Pimpri (Pune), Pitampur (Indore), Pondicherry, Raipur, Rewari, Rudrapur(Nainital), Salem, Singanalur, Surat, Surajpur, Tirupur, Tuticorin, Udaipur, Vadodara, Varanasi, , Waluj (Aurangabad) or through the Land Customs Station at Agartala, Amritsar Rail Cargo, Attari Road, Changrabandha, Dawki, Ghojadanga, Hilli, Jogbani, Mahadipur, Nepalganj Road, Nautanva (Sonauli), Petrapole, Ranaghat, Raxaul, Singhabad and Sutarkhandi or a Special Economic Zone notified under section 4 of the Special Economic Zones Act, 2005 (28 of 2005):

Provided that the Commissioner of Customs may with in the jurisdiction , by special order, or by a Public Notice, and subject to such conditions as may be specified by him, permits import and export from any other seaport or airport or inland container depot or through any land customs station;

(vii) that the export obligation as specified in the said authorization (both in value and quantity terms) is discharged within the period specified in the said authorization or within such extended period as may be granted by the Regional Authority by exporting resultant products, manufactured in India which are specified in the said authorization:

Provided that an Advance Intermediate authorization holder shall discharge export obligation by supplying the resultant products to the exporter in terms of paragraph 4.1.3 (ii) of the Foreign Trade Policy;

(viii) that the importer produces evidence of discharge of export obligation to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, within a period of sixty days of the expiry of period allowed for fulfilment of export obligation, or within such extended period as the said Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, may allow;

(ix) that exempt materials shall not be disposed of or utilised in any manner, except for utilisation in discharge of export obligation, before the export obligation under the said authorisation has been discharged in full:

21

Provided further that where the Bond filed under condition (iii) against the said authorisation has not been redeemed by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, the unutilised material may be transferred to any other manufacturer except to the unit availing the benefit of notifications, Nos. 49/03-CE and 50/03-CE both dated 10

th June,2003, 32/99-CE and 33/99-CE both dated 8

th

July, 1999 , 8/04-CE dated 21stJanuary,.2004, 20/07-CE dated 25

th April,.2007, 56/02-CE and 57/02-CE both

dated 14th

November, 2002, , 71/03-CE dated 9th

September,.2003, 56/03-CE dated 25th

June,.2003 and 39/01-CE dated 31

st July,.2001, for processing under actual user condition after complying the central excise

procedure relating to Job work;

(x) that in relation to the said authorisation issued to a merchant exporter,-

(a) the name and address of the supporting manufacturer is specified in the said authorisation and the bond required to be executed by the importer in terms of condition numbers (iii) or (iv) as the case may be shall be executed jointly by the merchant exporter and the supporting manufacturer binding themselves jointly and severally to comply with the conditions specified in this notification; and

(b) exempt materials are utilised in the factory of such supporting manufacturer for discharge of export obligation and the same shall not be transferred or sold or used for any other purpose by the said merchant exporter until the export obligation specified in condition (vii) has been discharged in full.

2. After discharge of export obligation as specified in condition (vii) of paragraph 1, the Regional Authority shall permit transfer of the said authorisation and/or the goods imported under it subject to such conditions as may be specified.

3. Where the materials are found defective or unfit for use, the said materials may be re-exported back to the foreign supplier within six months from the date of clearence of the said material or such extended period not exceeding a further period of six months as the Commissioner of Customs may allow;

Provided that at the time of re-export the materials are identified to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, as the materials which were imported.

Explanation – For the purposes of this notification,-





(v) “Materials” means





[F.No.605/58/2009-DBK]

Sd/-

22



GOVERNMENT OF INDIA

MINISTRY OF FINANCE


New Delhi, the 11th

September, 2009.



G. S. R. 665 (E),- 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 materials imported into India, against an Advance Authorisation for Annual Requirement (hereinafter referred to as the said Authorization) with actual user condition in terms of Paragraph 4.1.10 of the Foreign Trade Policy 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,-

i. that the said licence is produced before the proper officer of customs at the time of clearance for debit the quantity and value of imports;

ii. that the said authorisation bears,-

(a) the name and address of the supporting manufacturer also in such cases where

the authorisation has been issued to a merchant exporter;

(b) the shipping bill number(s) and date(s) and description,quantity and value of exports of the resultant product in cases where import takes place after fulfilment of export obligation; or

(c) the description, Cost Insurence Freight value and other specifications of the imported materials and the description,quantity and Free on Board value of exports of the resultant product covered under an export product group specified in the Hand Book of Procedures Volume 1, in such cases where import takes place before fulfilment of export obligation;

Provided further that in respect of the inputs specified in paragraph 4.24A (i) of the Hand Book of Procedures, Volume 1 of the Foreign Trade Policy, the material permitted in the said authorization shall be of the same quality, technical characteristics and specifications as the materials used in the export of the resultant product:

Provided also that the exporter shall give declaration with regard to the technical characteristics, quality and specifications of materials used in the export of resultant product, in the shipping bill;

iii. that the authorizations issued on the basis of self declaration where Standard Input Output Norms are not fixed, shall also be valid for import of inputs required for the manufacture of export products provided the authorization holder shall prove to the satisfaction of the jurisdictional Assistant Commissioner of Customs or Deputy Commissioner of Customs, as the case may be, that an application in Aayat Niryat form along with documents specified therein has been submitted to the Director General of Foreign Trade, in terms of para 4.7 of the Hand Book of Procedures , Volume 1 of the Foreign Trade Policy before making the first shipment;

iv. that in respect of imports made before the discharge of export obligation, the importer at the time of clearance of the imported materials executes a bond with such surety or security and in such form and for such sum as may be specified by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, binding himself to pay on demand an amount equal to the duty leviable, but for the exemption contained herein, on the imported materials in respect of which the conditions specified in this notification are

23

not complied with, together with interest at the rate of fifteen percent per annum from the date of clearance of the said materials;

v. that in respect of imports made after the discharge of export obligation, if facility of CENVAT Credit under CENVAT Credit Rules, 2004 has been availed, then the importer shall, at the time of clearance of the imported materials furnish a bond to the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, binding himself, to use the imported materials in his factory or in the factory of his supporting manufacturer for the manufacture of dutiable goods and to submit a certificate, from the jurisdictional Central Excise officer or from a specified chartered accountant within six months from the date of clearance of the said materials, that the imported materials have been so used:

Provided further that if the importer pays additional duty of customs leviable on the imported materials but for the exemption contained herein, then the imported materials may be cleared without furnishing a bond specified in this condition and the additional duty of customs so paid shall be eligible for availing CENVAT Credit under the CENVAT Credit Rules, 2004;

vi. that in respect of imports made after the discharge of export obligation in full, and if facility under rule 18 or sub-rule (2) of rule 19 of the Central Excise Rules, 2002 or CENVAT credit under CENVAT Credit Rules, 2004 has not been availed and the importer furnishes proof to this effect to the satisfaction of the Deputy Commissioner of Customs or the Assistant Commissioner of Customs as the case may be, then the imported materials may be cleared without furnishing a bond specified in condition (v);

vii. that the imports and exports are undertaken through seaports at Bedi (including Rozi-Jamnagar), Chennai, Cochin, Dahej, Dharamtar,Haldia (Haldia Dock complex of Kolkata port) Kakinada, Kandla, Kolkata, Krishnapatnam, Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra,Nagapattinam, Nhava Sheva, Okha, Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any of the airports at Ahmedabad, Bangalore, Bhubaneswar, Chennai, Cochin, Coimbatore, Dabolim (Goa), Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar, Trivandrum and Varanasi or through any of the Inland Container Depots at Agra, Ahmedabad, Anaparthy (Andhra Pradesh), Babarpur, Bangalore, Bhadohi, Bhatinda, Bhilwara, Bhiwadi, Bhusawal, Chheharata (Amritsar), Coimbatore, Dadri, Dappar (Dera Bassi), Daulatabad (Wanjarwadi and Maliwada), Delhi, Dighi (Pune), Durgapur (Export Promotion Industrial Park), Faridabad, Garhi Harsaru, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar, Jamshedpur, Jodhpur, Kanpur, Karur, Kota, Kundli, Loni (District Ghaziabad), Ludhiana, Madurai, Malanpur, Mandideep (District Raisen), Miraj, Moradabad, Nagpur, Nasik, Pimpri (Pune), Pitampur (Indore), Pondicherry, Raipur, Rewari, Rudrapur(Nainital), Salem, Singanalur, Surat, Surajpur, Tirupur, Tuticorin, Udaipur, Vadodara, Varanasi, , Waluj (Aurangabad) or through the Land Customs Station at Agartala, Amritsar Rail Cargo, Attari Road, Changrabandha, Dawki, Ghojadanga, Hilli, Jogbani, Mahadipur, Nepalganj Road, Nautanva (Sonauli), Petrapole, Ranaghat, Raxaul, Singhabad and Sutarkhandi or a Special Economic Zone notified under section 4 of the Special Economic Zones Act, 2005 (28 of 2005):


viii. that sourcing of the imported materials from Private Bonded Warehouses set up under paragraph 2.28 of the Foreign Trade Policy would be allowed;

ix. that the export obligation as specified in the said authorization (both in value and quantity terms) is discharged within the period specified in the said authorization or within such extended period as may be granted by the Regional Authority by exporting resultant products, manufactured in India which are specified in the said authorization and in respect of which facility under rule 18 or sub-rule (2) of rule 19 of the Central Excise Rules, 2002 has not been availed:

Provided that an Advance Intermediate authorization holder shall discharge export obligation by supplying the resultant products to exporter in terms of paragraph 4.1.3 (ii) of the Foreign Trade Policy;

x. that the importer produces evidence of discharge of export obligation to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, within a period of sixty days of the expiry of period allowed for fulfilment of export obligation, or within such extended period as the said Deputy Commissioner of Customs or Assistant Commissioner of Customs, may allow;

xi. that the exempt materials shall not be disposed of or utilized in any manner except for discharge of export obligation or for replenishment of such materials and the materials so replenished shall not be sold or transferred to any other person:

24

Provided that the said materials may be transferred to a job worker for processing subject to complying with the conditions prescribed in the relevent Central Excise notifications permitting transfer of materials for job work:

Provided further that, no such transfer for purposes of job work shall be effected to the units located in areas eligible for area based exemptions from the levy of excise duty in terms of notification Nos. 49/03-CE and 50/03-CE both dated 10

th

June,2003, 32/99-CE dated 8th

July,1999, 33/99-CE dated 8th

July,1999, 8/04-CE dated 21stJanuary,.2004, 20/07-CE

dated 25th

April,.2007,56/02-CE dated 14th

November, 2002,57/02-CE dated 14th

November,.2002, 71/03-CE dated 9th

September,.2003, 56/03-CE dated 25th

June,.2003 and 39/01-CE dated 31st July,.2001;

xii. that in relation to the said Authorization issued to a manufacturer exporter or merchant exporter, any bond required to be executed by the importer in terms of this notification shall be executed jointly by the manufacturer exporter or merchant exporter as the case may be and the supporting manufacturer binding themselves jointly and severally to comply with the conditions specified in this notification.

(2). Notwithstanding anything contained in the notification, the actual user condition specified in condition numbers (ix) and (xi) shall not be applicable in respect of authorisation issued for import of raw sugar for imports made from 17th February, 2009 till 30th September, 2009 and the export obligation may also be fulfilled by procuring white sugar from any other factory with effect from the 17th February, 2009.

Explanation.- For the purposes of this notification,-





(v) “Materials” means





(vi) “Specified Chartered Accountant” means a statutory auditor or a Chartered Accountant who certifies the importer‟s financial records under the Companies Act, 1956 ( 1 of 1956) or the Sales Tax/ Value Added Tax Act of the State Government or the Income Tax Act, 1961 ( 43 of 1961).

[F.No.605/58/2009-DBK]



25

--------------------------------------------------------------------------------------------------------------

GOVERNMENT OF INDIA

MINISTRY OF FINANCE (DEPARTMENT OF REVENUE)

Notification No.100 /2009-CUSTOMS


G.S.R. 666 (E) - 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 specified in the Table annexed hereto, from,-

(i) so much of the duty of customs leviable thereo

n 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 three percent ad-valorem, and

(ii) the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act, when specifically claimed by the importer.

2. The exemption under this notification shall be subject to the following conditions, namely :-

(1) that the goods imported are covered by a valid authorization issued under the Export Promotion Capital Goods (EPCG) Scheme to Common Service Providers(hereinafter referred to as CSP) designated by the Director General Of Foreign Trade (hereinafter referred to as DGFT), Department of Commerce(hereinafter referred to as DOC) or State Industrial Infrastructural Corporation in Towns Of Export Excellence (hereinafter referred to as TEE) in terms of Chapter 5 of the Foreign Trade Policy permitting import of goods at the rate of three percent duty and the said authorization is produced for debit by the proper officer of customs at the time of clearance :

Provided that for import of spare parts specified at Sr.No.4 of the said Table, the validity period of the authorization shall be deemed to be the period permitted for fulfillment of the export obligation in full ;

(2) that the authorization issued under the scheme shall have the details of the users of the said capital goods and the quantum of the Export Obligation(hereinafter referred to as EO) which each user would fulfil.

(3) that the goods imported shall not be disposed of or transferred by sale or lease or any other manner till export obligation is completed.

(4) that the Common Service provider and each of the specific users shall execute a bond in such form and for such sum as may be specified by the Deputy Commissioner of Customs or Assistant Commissioner of Customs and a bank guarantee equivalent to their portion of duty foregone in terms of export obligation apportioned in the authorization

binding themselves to fulfil export obligation on Free On Board (FOB) basis equivalent to eight times the duty saved on the goods imported as may be specified on the licence or authorization, or for such higher sum as may be fixed or endorsed by the Licensing Authority or Regional Authority in terms of Para 5.10 of the Handbook of Procedures Vol I, issued under para 2.4 of the Foreign Trade Policy, within a period of eight years from the date of issue of licence or authorization, in the following proportions, namely :-

26

S.No. Period from the date of issue of Authorization Proportion of total export

obligation

(1) (2) (3)

1. Block of 1st

to 6th

year 50%

2. Block of 7th

to 8th year 50%

Provided that where the duty saved is not less than Rupees one hundred crores, or where the authorization is issued to units in the agri export zone as may be notified by the licensing authority or Regional Authority, the export obligation shall be fulfilled within a period of twelve years from the date of issue of authorization in the following proportions, namely :-

S.No. Period from the date of issue of Authorization Proportion of total export

obligation

(1) (2) (3)

1. Block of 1st to 10

th year 50%

2. Block of 11th

to 12th year 50%

Provided further that where a sick unit is notified by the Board for Industrial and Financial Reconstruction(BIFR) or where a rehabilitation scheme is announced by the concerned State Government in respect of sick unit for its revival, the export obligation may be fulfilled within time period allowed by the Licensing Authority or Regional Authority as per the rehabilitation package prepared by the operating agency and approved by BIFR or rehabilitation department of State Government . In cases where the time period is not specified in the rehabilitation package, the export obligation may be fulfilled within the time period allowed by the Licensing Authority or Regional Authority which shall not exceed twelve years.

27

Provided also that where the capital goods are imported by agro units and units in tiny and cottage sector, the export obligation shall be fixed equivalent to six times the duty saved on the goods imported as may be specified on the authrization, or for such higher sum as may be fixed by the licensing authority, within a period of twelve years from the date of issue of the authorization :

Provided also that where the capital goods are imported for technological upgradation as per conditions specified in Para 5.8 of the Foreign Trade Policy or by small scale industry units as defined in paragraph 5.2 of the Foreign Trade Policy, as the case may be, the export obligation shall be fixed equivalent to six times the duty saved on the goods imported as may be specified on the authorization, or for such higher sum as may be fixed by the Licensing Authority or Regional Authority, within a period of eight years from the date of issue of authorization subject to the further condition that in the case of Small Scale Industry (SSI) units the landed Cost Insurance Freight (CIF) value of such imported capital goods under the scheme shall not exceed Rupees fifty lakhs and total investment in plant and machinery after such imports shall not exceed the SSI limit :

Provided also that spares (including refurbished or reconditioned spares), moulds, dies, jigs, fixtures, tools, refractory for initial lining and catalyst for initial charge, for the existing plant and machinery (imported earlier, under EPCG or otherwise), shall be allowed to be imported under the EPCG scheme subject to an export obligation equivalent to 50% of the normal export obligation prescribed above, to be fulfilled in 8 years reckoned from the date of issue of the Authorization, subject to the condition that the CIF value of import of the said spares etc. will be limited to 10% of the CIF value of the plant and machinery imported under the EPCG authorization or 10% of the book value of the plant and machinery imported earlier otherwise than under EPCG Scheme, as the case may be.

Provided also that export obligation of a particular block may be set off against the excess exports made in the said preceding block(s);

(5) that if the authorisation holder does not claim exemption from the additional duty leviable under section 3 of the Customs Tariff Act, 1975, the additional duty so paid by him shall not be taken for computation of the net duty saved for the purpose of fixation of export obligation provided the Cenvat credit of additional duty paid has not been taken;

(6) that the Authorization Holder and the other specific users produce within 30 days from the expiry of each block from the date of issue of authorization or within such extended period as the Deputy Commissioner of Customs or Assistant Commissioner of Customs may allow, evidence to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs showing the extent of export obligation fulfilled, and where the export obligation of any particular block is not fulfilled in terms of the preceding condition, the importer shall within three months from the expiry of the said block pay duties of customs equal to an amount which bears the same proportion to the duties leviable on the goods, but for the exemption contained herein, which the unfulfilled portion of the export obligation bears to the total export obligation, together with interest at the rate of 15% per annum from the date of clearance of the goods;

(7) where the Authorization Holder fulfills 75% or more of the export obligation as specified in condition (4) (over and above 100% of the average export obligation) within half of the period specified for export obligation as mentioned in condition (4), his balance export obligation shall be condoned and he shall be treated to have fulfilled the entire export obligation;

(8) that the capital goods imported, assembled or manufactured are installed in the Common Service Provider‟s factory or premises and a certificate from the jurisdictional Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise, as the case may be, is produced confirming installation and use of capital goods in the Common Service Provider‟s factory or premises, within six months from the date of completion of imports or within such extended period as the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, may allow :

Provided that in case of import of spares, the installation certificate shall be produced within three years from the date of import :

Provided further that if the Authorization Holder is not registered with central excise or if he is a service provider, as the case may be, he may produce the said certificate of installation and usage issued by an independent Chartered Engineer :

Provided also that agro units located in Agri Export Zones or service providers in Agri export Zones may move the capital goods within the Agri Export Zones under intimation to the jurisdictional Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise, as the case may be, subject to the condition that the importer shall maintain accurate record of such movement;

(9) that the imports and exports are undertaken through sea ports at Bedi (including Rozi-Jamnagar), Chennai, Cochin, Dahej, Dharamtar,Haldia (Haldia Dock complex of Kolkata port) Kakinada, Kandla, Kolkata, Krishnapatnam, Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra,Nagapattinam, Nhava Sheva, Okha, Paradeep, Pipavav,

28

Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any of the airports at Ahmedabad, Bangalore, Bhubaneswar, Chennai, Cochin, Coimbatore, Dabolim (Goa), Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar, Trivandrum and Varanasi or through any of the Inland Container Depots at Agra, Ahmedabad, Anaparthy (Andhra Pradesh), Babarpur, Bangalore, Bhadohi, Bhatinda, Bhilwara, Bhiwadi, Bhusawal, Chheharata (Amritsar), Coimbatore, Dadri, Dappar (Dera Bassi), Daulatabad (Wanjarwadi and Maliwada), Delhi, Dighi (Pune), Durgapur (Export Promotion Industrial Park), Faridabad, Garhi Harsaru, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar, Jamshedpur, Jodhpur, Kanpur, Karur, Kota, Kundli, Loni (District Ghaziabad), Ludhiana, Madurai, Malanpur, Mandideep (District Raisen), Miraj, Moradabad, Nagpur, Nasik, Pimpri (Pune), Pitampur (Indore), Pondicherry, Raipur, Rewari, Rudrapur(Nainital), Salem, Singanalur, Surat, Surajpur, Tirupur, Tuticorin, Udaipur, Vadodara, Varanasi, , Waluj (Aurangabad) or through the Land Customs Station at Agartala, Amritsar Rail Cargo, Attari Road, Changrabandha, Dawki, Ghojadanga, Hilli, Jogbani, Mahadipur, Nepalganj Road, Nautanva (Sonauli), Petrapole, Ranaghat, Raxaul, Singhabad and Sutarkhandi or a Special Economic Zone notified under section 4 of the Special Economic Zones Act, 2005 (28 of 2005):

Provided that the Commissioner of Customs may, by special order or a public notice and subject to such conditions as may be specified by him, permit import and export through any other sea-port, airport, inland container depot or through a land customs station within his jurisdiction.

(10) notwithstanding anything contained in condition (6) above, where the Licensing Authority or Regional Authority grants extension of block-wise period for any block(s) or overall period of fulfilment of export obligation upto a period of two years or regularization of shortfall in export obligation, not exceeding five percent of such export obligation, the said block-wise period or overall period of export obligation shall be extended or condoned by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be :

Provided that in respect of sick units referred to in the second proviso to condition (4) extension of overall period of export obligation shall not be allowed :

Provided further that the Regional Authority may grant further extension in the overall period of export obligation upto a period of further two years if the authorization holder pays fifty percent of duty payable in proportion to the unfulfilled portion of export obligation and agrees to fulfill other conditions as may be specified by the Regional Authority for this purpose;

Provided further that the Export Obligation period shall not be extended beyond 12 years including the original Export Obligation period of 8 years or 12 years as the case may be.

3. Where the goods specified in the said Table are found defective or unfit for use, the said goods may be re-exported back to the foreign supplier within three years from the date of payment of duty on the importation thereof:

Provided that at the time of re-export, the goods are identified to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, to be the same as the goods which were imported.

Explanation – For the purpose of this notification,-

1. “Capital goods” has the same meaning as assigned to it in Paragraph 9.12 of the Foreign Trade Policy;

2. “Common Service Provider (CSP)” means a service provider who is designated or certified as a Common Service Provider by the DGFT, Department of Commerce or State Industrial Infrastructural Corporation in a Town of Export Excellence.

3. “Export obligation”, -

(1) means obligation on the Common Service provider and each of the specific users to export to a place outside India, goods manufactured or capable of being manufactured or services rendered by the use of capital goods imported in terms of this notification. The export obligation shall be over and above the average level of exports achieved by the Common Service provider or the specific user in the preceding three licensing years for the same and similar products within the overall export obligation period including the extended period, if any. Such average shall be the arithmetic mean of export performance in the last 3 years for the same and similar products.

Provided that upto 50% of the export obligation may also be fulfilled by export of other good(s) manufactured or service(s) provided by the Common Service provider / the specific user or his group company or managed hotel, which has the EPCG authorization subject to the condition that in such cases, additional export obligation imposed shall be over and

29

above the average exports achieved by the Common Service provider / the specific user or his group company or managed hotel in preceding three years for both the original and the substitute product(s) or service(s) :

Provided further that in case of export of goods relating to handicraft, handlooms, cottage, tiny sector, agriculture, animal husbandry, floriculture, horticulture, pisciculture, viticulture, poultry and sericulture, the Common Service provider or the specific user shall not be required to maintain the average level of exports :

Provided further that in case of export of goods relating to aquaculture(including fisheries), the Common Service provider or the specific user shall not be required to maintain the average level of exports subject to the condition that EPCG authorization has been obtained for goods other than fishing trawlers, boats, ships and other similar items.

Provided also that the goods, excepting tools, imported under this notification by the aforesaid sectors, shall not be allowed to be transferred for a period of five years from the date of imports even in cases where export obligation has been fulfilled. Transfer of capital goods would, however, be permitted within the group companies, after fulfillment of export obligation but before five years from the date of imports, under intimation to Regional Authority and jurisdictional Central Excise Authority :

Provided also that exports made to former USSR, or to such countries as notified by Director General of Foreign Trade as on 31.3.08, shall not be counted for fixing the average level of exports :

Provided also that exports against only such shipping bills which mention the EPCG authorization No. and date shall be counted for the discharge of the export obligation;

Provided also that exports counted against the authorization issued under this notification shall not be counted towards fulfilment of other specific Export Obligations against other EPCG authorizations;

(2) shall be fulfilled through physical exports and the export proceeds shall be realized in freely convertible currency. However the following categories of supplies, shall also be counted towards fulfillment of export obligation:

(a) deemed exports, namely:

(i) supply of goods against Advance Authorization/Advance Authorization for Annual Requirement/ Duty Free Import Authorization (DFIA);

(ii) supply of goods to Export Oriented Units (EOUs) or Software Technology Parks (STPs) or Electronics Hardware Technology Parks (EHTPs) or Bio-Technology Parks (BTPs);

(iii) supply of goods to projects financed by multilateral or bilateral agencies or Funds as notified by Department of Economic Affairs (DEA), Ministry of Finance (MOF) under International Competitive Bidding (ICB) in accordance with procedures of those agencies or Funds, where legal agreements provide for tender evaluation without including customs duty; supply and installation of goods and equipments (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral agencies or Funds as notified by DEA, MOF under ICB, in accordance with procedures of those agencies/Funds, where bids may have been invited and evaluated on the basis of Delivery Duty Paid (DDP) prices for goods manufactured abroad;

(iv) supply of goods to any project or purpose in respect of which the Ministry of Finance, by a notification, permits import of such goods at zero customs duty and the supply is made under ICB procedure;

(v) supply of goods to power projects and refineries not covered in (iv) above under ICB procedure;

(vi) Supply of goods to nuclear power projects through competitive bidding as opposed to ICB;

(b) Supply of ITA-1 items to Domestic Tariff Area, provided realization is in free foreign exchange;

(c) Royalty payments received in freely convertible currency and foreign exchange received for Research and Development (R and D) services; and

(d) Payments received in rupee terms for port handling services in terms of chapter 9 of the Foreign Trade Policy.

30

4. “Foreign Trade Policy” means the Foreign Trade Policy 2009-2014 published in the gazette of India, Part II, Section 3, Sub-section (ii) vide notification of the Government of India in the Ministry of Commerce and Industry, No.1/2009-2014 dated the 27


5. “Licensing Authority or Regional Authority” means the Director General of Foreign Trade appointed under section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officer authorized by him to grant an authorization under the said Act;

6. “Manufacture” has the same meaning as defined in clause (f) of section 2 of the Central Excise Act, 1944 (1 of 1944).

7. “Towns of Export Excellence(TEE)” means a selected town producing goods of Rs.750 Crores or more based on potential for growth in exports. However for TEE in Handloom, Handicraft, Agriculture and fisheries sector the threshold limit would be Rs.150 Crores.

Table

S.No. Description of goods

(1) (2)

1. Capital goods for pre-production, production and post production including second hand capital goods.

2. Capital goods in Semi Knocked Down (SKD) / Completely Knocked Down (CKD) conditions to be assembled into capital goods by the importer.

3. Spare parts of CIF value upto 10% of the CIF value of goods specified at Serial Nos.1 and 2 as actually imported and required for maintenance of capital goods so imported, assembled, or manufactured.

4. Spare parts of CIF value upto 10% of the book value of the existing plant and machinery of the authorization holder.

[F. No.605/58/2009-DBK ]

Rajesh Kumar Agarwal,

Under Secretary to the Government of India.

-----------------------------------------------------------------------------------------------------------

GOVERNMENT OF INDIA

MINISTRY OF FINANCE


Notification NO. 101 /2009-CUSTOMS



(i) the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), and

31



(1) that the goods are imported for export of engineering and electronic products, basic chemicals and pharmaceuticals, apparels and textiles, plastics, handicrafts, chemicals and allied products and leather & leather products and are other than those required for export of products covered under following chapters/headings of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), namely:-

Chapters 1 to 4,5(other than handicrafts), 6 to 24,25 to 27, 31,40,43,44(other than handicrafts),45,47 to 49,68(other than handicrafts),69 , 70,71,81 (metals in primary and intermediate forms only),89,93,97(other than handicrafts),98; headings 7201 to 7212, 7218 to 7220,7224 to 7226,7401 to 7406, 7501 to 7504, 7601 to 7603, 7801 to 7802, 7901 to 7903, 8001 to 8002 and 8401.

(2) that the goods imported are covered by a valid authorization issued under the Export Promotion Capital Goods (EPCG) Scheme to Common Service Providers(hereinafter referred to as CSP) designated by the Director General Of Foreign Trade (hereinafter referred to as DGFT), Department of Commerce(hereinafter referred to as DOC) or State Industrial Infrastructural Corporation in Towns Of Export Excellence (hereinafter referred to as TEE) in terms of Chapter 5 of the Foreign Trade Policy permitting import of goods at zero customs duty and the said authorization is produced for debit by the proper officer of customs at the time of clearance:

Provided that for import of spare parts specified at Sr.No.4 of the said Table, the validity period of the authorization shall be deemed to be the period permitted for fulfilment of the export obligation in full :

(3) that the authorization issued under the scheme shall have the details of the users of the said capital goods and the quantum of the Export Obligation(hereinafter referred to as EO) which each user would fulfil.

(4) that the Common Service provider or any of the specific users is not currently availing any benefits under Technology Upgradation Fund Scheme (TUFS) administered by Ministry of Textiles, Government of India.

(5) that the Common Service provider or any of the specific users does not avail, in the year of import of the goods, the benefit of Status Holder Incentive Scheme under Para 3.16 of the Foreign Trade Policy.

(6) that the goods imported shall not be disposed of or transferred by sale or lease or any other manner till export obligation is complete.

(7) that the Common Service provider and each of the specific users shall execute a bond in such form and for such sum as may be specified by the Deputy Commissioner of Customs or Assistant Commissioner of Customs and a bank guarantee equivalent to their portion of duty foregone in terms of export obligation apportioned in the authorization binding themselves to fulfil export obligation on FOB basis equivalent to six times the duty saved on the goods imported as may be specified on the licence or authorization, or for such higher sum as may be fixed or endorsed by the Licensing Authority or Regional Authority in terms of Para 5.10 of the Handbook of Procedures Vol I, issued under para 2.4 of the Foreign Trade Policy within a period of six years from the date of issue of licence or authorization, in the following proportions, namely :-

S.No. Period from the date of issue of Authorization

Proportion of total export obligation

(1) (2) (3)


th year 50%

2. Block of 5th

to 6th year 50%

32

Provided further that where a sick unit is notified by the Board for Industrial and Financial Reconstruction (BIFR) or where a rehabilitation scheme is announced by the concerned State Government in respect of sick unit for its revival, the export obligation may be fulfilled within time period allowed by the Licensing Authority or Regional Authority as per the rehabilitation package prepared by the operating agency and approved by BIFR or rehabilitation department of State Government. In cases where the time period is not specified in the rehabilitation package, the export obligation may be fulfilled within the time period allowed by the Licensing Authority or Regional Authority which shall not exceed twelve years.

Provided also that spares (including refurbished/reconditioned spares), moulds, dies, jigs, fixtures, tools, refractory for initial lining and catalyst for initial charge, for the existing plant and machinery (imported earlier, under EPCG or otherwise), shall be allowed to be imported under the EPCG scheme subject to an export obligation equivalent to 50% of the normal export obligation prescribed above, to be fulfilled in 6 years reckoned from the date of issue of the Authorization, subject to the condition that the CIF value of import of the above spares etc. will be limited to 10% of the CIF value of the plant and machinery imported under the EPCG authorization or 10% of the book value of the plant and machinery imported earlier otherwise than under EPCG Scheme, as the case may be.


(8) that if the Authorization Holder does not claim exemption from the additional duty leviable under section 3 of the Customs Tariff Act, 1975, the additional duty so paid by him shall not be taken for computation of the net duty saved for the purpose of fixation of export obligation provided the Cenvat credit of additional duty paid has not been taken;

(9) that the Authorization Holder and the other specific users produce within 30 days from the expiry of each block from the date of issue of authorization or within such extended period as the Deputy Commissioner of Customs or Assistant Commissioner of Customs may allow, evidence to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs showing the extent of export obligation fulfilled, and where the export obligation of any particular block is not fulfilled in terms of the preceding condition, the importer shall within three months from the expiry of the said block pay duties of customs equal to an amount which bears the same proportion to the duties leviable on the goods, but for the exemption contained herein, which the unfulfilled portion of the export obligation bears to the total export obligation, together with interest at the rate of 15% per annum from the date of clearance of the goods;

(10) where the Authorization Holder fulfills 75% or more of the export obligation as specified in condition (7) (over and above 100% of the average export obligation) within half of the period specified for export obligation as mentioned in condition (7), his balance export obligation shall be condoned and he shall be treated to have fulfilled the entire export obligation;

(11) that the capital goods imported, assembled or manufactured are installed in the Common Service Provider‟s factory or premises and a certificate from the jurisdictional Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise, as the case may be, is produced confirming installation and use of capital goods in the Common Service Provider‟s factory or premises, within six months from the date of completion of imports or within such extended period as the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, may allow :


Provided further that if the importer is not registered with central excise, he may produce the said certificate of installation and usage issued by an independent Chartered Engineer :

(12) that the imports and exports are undertaken through sea ports at Bedi (including Rozi-Jamnagar), Chennai, Cochin, Dahej, Dharamtar,Haldia (Haldia Dock complex of Kolkata port) Kakinada, Kandla, Kolkata, Krishnapatnam, Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra,Nagapattinam, Nhava Sheva, Okha, Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any of the airports at Ahmedabad, Bangalore, Bhubaneswar, Chennai, Cochin, Coimbatore, Dabolim (Goa), Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar, Trivandrum and Varanasi or through any of the Inland Container Depots at Agra, Ahmedabad, Anaparthy (Andhra Pradesh), Babarpur, Bangalore, Bhadohi, Bhatinda, Bhilwara, Bhiwadi, Bhusawal, Chheharata (Amritsar), Coimbatore, Dadri, Dappar (Dera Bassi), Daulatabad (Wanjarwadi and

33

Maliwada), Delhi, Dighi (Pune), Durgapur (Export Promotion Industrial Park), Faridabad, Garhi Harsaru, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar, Jamshedpur, Jodhpur, Kanpur, Karur, Kota, Kundli, Loni (District Ghaziabad), Ludhiana, Madurai, Malanpur, Mandideep (District Raisen), Miraj, Moradabad, Nagpur, Nasik, Pimpri (Pune), Pitampur (Indore), Pondicherry, Raipur, Rewari, Rudrapur(Nainital), Salem, Singanalur, Surat, Surajpur, Tirupur, Tuticorin, Udaipur, Vadodara, Varanasi, , Waluj (Aurangabad) or through the Land Customs Station at Agartala, Amritsar Rail Cargo, Attari Road, Changrabandha, Dawki, Ghojadanga, Hilli, Jogbani, Mahadipur, Nepalganj Road, Nautanva (Sonauli), Petrapole, Ranaghat, Raxaul, Singhabad and Sutarkhandi or a Special Economic Zone notified under section 4 of the Special Economic Zones Act, 2005 (28 of 2005):



Provided that in respect of sick units referred to in the first proviso to condition (7) extension of overall period of export obligation shall not be allowed :

Provided further that the Export Obligation period shall not be extended beyond 12 years including the original Export Obligation period of 6 years.



4. This notification, for import of goods specified at Serial Nos.1 and 2 of the said table, shall have effect upto 31st

December, 2011.


1. “Capital goods” has the same meaning as assigned to it in Paragraph of 9.12 of the Foreign Trade Policy;

2. “Common Service Provider (CSP)” means a service provider who is designated or certified as a Common Service Provider by the DGFT, Department of Commerce or State Industrial Infrastructural Corporation in a Town of Export Excellence.


(1) means obligation on the Common Service provider and each of the specific users to export to a place outside India, goods manufactured or capable of being manufactured or services rendered by the use of capital goods imported in terms of this notification. The export obligation shall be over and above the average level of exports achieved by the Common Service provider or the specific user in the preceding three licensing years for the same and similar products within the overall export obligation period including the extended period, if any. Such average shall be the arithmetic mean of export performance in the last 3 years for the same and similar products.

Provided that upto 50% of the export obligation may also be fulfilled by export of other good(s) manufactured or service(s) provided by the Common Service provider or the specific user or his group company or managed hotel, which has the EPCG authorization subject to the condition that in such cases, additional export obligation imposed shall be over and above the average exports achieved by the Common Service provider or the specific user or his group company or managed hotel in preceding three years for both the original and the substitute product(s) or service(s) :

Provided further that in case of export of goods relating to handicraft, handlooms, cottage, tiny sector, agriculture, animal husbandry, floriculture, horticulture, pisciculture, viticulture, poultry and sericulture, the Common Service provider or the specific user shall not be required to maintain the average level of exports :

34

Provided further that in case of export of goods relating to aquaculture(including fisheries), the Common Service provider or the specific user shall not be required to maintain the average level of exports subject to the condition that EPCG authorization has been obtained for goods other than fishing trawlers, boats, ships and other similar items.




Provided also that exports counted against the authorization issued under this notification shall not be counted towards fulfilment of other specific Export Obligations against other EPCG authorizations;

(2) shall be fulfilled through physical exports and the export proceeds shall be realized in freely convertible currency. However, the following categories of supplies, shall also be counted towards fulfillment of export obligation:









(c) Royalty payments received in freely convertible currency and foreign exchange received for Research and Development (R&D) services; and




. “Licensing Authority or Regional Authority” means the Director General of Foreign Trade appointed under section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officer authorized by him to grant an authorization under the said Act;

35


7. “Towns of Export Excellence(TEE)” means a selected town producing goods of Rs.750 Crores or more based on potential for growth in exports. However for TEE in Handloom, Handicraft, Agriculture and fisheries sector the threshold limit would be Rs.150 Crores.

Table


(1) (2)





[F. No.605/58/2009-DBK ]



--------------------------------------------------------------------------------------------------------------

GOVERNMENT OF INDIA

MINISTRY OF FINANCE


Notification No. 102 /2009-CUSTOMS


G.S.R. 668 (E). - 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 specified in the Table annexed hereto, from,-

(i) the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), and



(1) that the goods are imported for export of engineering and electronic products, basic chemicals and pharmaceuticals, apparels and textiles, plastics, handicrafts, chemicals and allied products and leather and leather products and are other

36

than those required for export of products covered under following chapters or headings of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), namely:-

Chapters 1 to 4,5(other than handicrafts), 6 to 24,25 to 27, 31,40,43,44(other than handicrafts),45,47 to 49,68(other than handicrafts),69 , 70,71,81 (metals in primary and intermediate forms only),89,93,97(other than handicrafts),98; headings 7201 to 7212, 7218 to 7220,7224 to 7226,7401 to 7406, 7501 to 7504, 7601 to 7603, 7801 to 7802, 7901 to 7903, 8001 to 8002 and 8401.

(2) that the goods imported are covered by a valid authorization issued under the Export Promotion Capital Goods (EPCG) Scheme in terms of Chapter 5 of the Foreign Trade Policy permitting import of goods at zero customs duty and the said authorization is produced for debit by the proper officer of customs at the time of clearance:

Provided that for import of spare parts specified at Sr.No.4 of the said Table, the validity period of the authorization shall be deemed to be the period permitted for fulfilment of the export obligation in full :

(3) that the importer is not currently availing any benefits under Technology Upgradation Fund Scheme (TUFS) administered by Ministry of Textiles, Government of India.

(4) that the importer does not avail, in the year of import of the goods, the benefit of Status Holder Incentive Scheme under Para 3.16 of the Foreign Trade Policy.

(5) that the goods imported shall not be disposed of or transferred by sale or lease or any other manner till export obligation is complete.

(6) that the importer executes a bond in such form and for such sum and with such surety or security as may be specified by the Deputy Commissioner of Customs or Assistant Commissioner of Customs binding himself to comply with all the conditions of this notification as well as to fulfill export obligation on Free On Board (FOB) basis equivalent to six times the duty saved on the goods imported as may be specified on the authorization, or for such higher sum as may be fixed or endorsed by the Licensing Authority or Regional Authority in terms of Para 5.10 of the Handbook of Procedures Vol I, issued under para 2.4 of the Foreign Trade Policy, within a period of six years from the date of issue of Authorization, in the following proportions, namely :-



(1) (2) (3)


th year 50%

2. Block of 5th

to 6th year 50%

Provided further that where a sick unit is notified by the Board for Industrial and Financial Reconstruction (BIFR) or where a rehabilitation scheme is announced by the concerned State Government in respect of sick unit for its revival, the export obligation may be fulfilled within time period allowed by the Licensing Authority or Regional Authority as per the rehabilitation package prepared by the operating agency and approved by BIFR or rehabilitation department of State Government . In cases where the time period is not specified in the rehabilitation package, the export obligation may be fulfilled within the time period allowed by the Licensing Authority or Regional Authority which shall not exceed twelve years.

37

Provided also that spares (including refurbished/reconditioned spares), moulds, dies, jigs, fixtures, tools, refractory for initial lining and catalyst for initial charge, for the existing plant and machinery (imported earlier, under EPCG or otherwise), shall be allowed to be imported under the EPCG scheme subject to an export obligation equivalent to 50% of the normal export obligation prescribed above, to be fulfilled in 6 years reckoned from the date of issue of the Authorization, subject to the condition that the CIF value of import of the above spares etc. will be limited to 10% of the CIF value of the plant and machinery imported under the EPCG authorization or 10% of the book value of the plant and machinery imported earlier otherwise than under EPCG Scheme, as the case may be.


(7) that if the importer does not claim exemption from the additional duty leviable under section 3 of the Customs Tariff Act, 1975, the additional duty so paid by him shall not be taken for computation of the net duty saved for the purpose of fixation of export obligation provided the Cenvat credit of additional duty paid has not been taken;

(8) that the importer produces within 30 days from the expiry of each block from the date of issue of authorization or within such extended period as the Deputy Commissioner of Customs or Assistant Commissioner of Customs may allow, evidence to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs showing the extent of export obligation fulfilled, and where the export obligation of any particular block is not fulfilled in terms of the preceding condition, the importer shall within three months from the expiry of the said block pay duties of customs equal to an amount which bears the same proportion to the duties leviable on the goods, but for the exemption contained herein, which the unfulfilled portion of the export obligation bears to the total export obligation, together with interest at the rate of 15% per annum from the date of clearance of the goods;

(9) where the importer fulfills 75% or more of the export obligation as specified in condition (6) (over and above 100% of the average export obligation) within half of the period specified for export obligation as mentioned in condition (6), his balance export obligation shall be condoned and he shall be treated to have fulfilled the entire export obligation;

(10) that the capital goods imported, assembled or manufactured are installed in the importer‟s factory or premises and a certificate from the jurisdictional Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise, as the case may be, is produced confirming installation and use of capital goods in the importer‟s factory or premises, within six months from the date of completion of imports or within such extended period as the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, may allow :


Provided further that if the importer is not registered with central excise, he may produce the said certificate of installation and usage issued by an independent Chartered Engineer :

Provided further that in the case of manufacturer exporter and merchant exporter having supporting manufacturer(s) or vendor(s), the capital goods may be installed at the factory or premises of such other person whose name and address are endorsed on the authorization referred to in condition (2) and also on the shipping bills and where the bond for full difference of duty, if necessary, in terms of condition (6) with or without a bank guarantee, as the case may be, is executed by the importer and such other person binding themselves jointly and severally to fulfill the export obligation and all other conditions of this notification and to pay duty with interest at the rate of 15% per annum in case of default :

(11) that the imports and exports are undertaken through sea ports at Bedi (including Rozi-Jamnagar), Chennai, Cochin, Dahej, Dharamtar,Haldia (Haldia Dock complex of Kolkata port) Kakinada, Kandla, Kolkata, Krishnapatnam, Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra,Nagapattinam, Nhava Sheva, Okha, Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any of the airports at Ahmedabad, Bangalore, Bhubaneswar, Chennai, Cochin, Coimbatore, Dabolim (Goa), Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar, Trivandrum and Varanasi or through any of the Inland Container Depots at Agra, Ahmedabad, Anaparthy (Andhra Pradesh), Babarpur, Bangalore, Bhadohi, Bhatinda, Bhilwara, Bhiwadi, Bhusawal, Chheharata (Amritsar), Coimbatore, Dadri, Dappar (Dera Bassi), Daulatabad (Wanjarwadi and Maliwada), Delhi, Dighi (Pune), Durgapur (Export Promotion Industrial Park), Faridabad, Garhi Harsaru, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar, Jamshedpur, Jodhpur, Kanpur, Karur, Kota, Kundli, Loni (District Ghaziabad), Ludhiana, Madurai, Malanpur, Mandideep (District Raisen), Miraj, Moradabad, Nagpur, Nasik, Pimpri (Pune), Pitampur (Indore), Pondicherry, Raipur, Rewari, Rudrapur(Nainital), Salem, Singanalur, Surat, Surajpur, Tirupur, Tuticorin, Udaipur, Vadodara, Varanasi, , Waluj (Aurangabad) or through the Land Customs Station at Agartala, Amritsar Rail Cargo, Attari Road, Changrabandha, Dawki, Ghojadanga, Hilli, Jogbani, Mahadipur, Nepalganj Road, Nautanva (Sonauli), Petrapole, Ranaghat, Raxaul, Singhabad and Sutarkhandi or a Special Economic Zone notified under section 4 of the Special Economic Zones Act, 2005 (28 of 2005):

38



Provided that in respect of sick units referred to in the first proviso to condition (6), extension of overall period of export obligation shall not be allowed :



4. This notification, for import of goods specified at Serial Nos.1 and 2 of the said table shall have effect upto 31st

December,2011.




(1) means obligation on the importer to export to a place outside India, goods manufactured or capable of being manufactured or services rendered by the use of capital goods imported in terms of this notification. The export obligation shall be over and above the average level of exports achieved by the importer in the preceding three licensing years for the same and similar products within the overall export obligation period including the extended period, if any. Such average shall be the arithmetic mean of export performance in the last 3 years for the same and similar products.

Provided that upto 50% of the export obligation may also be fulfilled by export of other good(s) manufactured or service(s) provided by the importer or his group company or managed hotel, which has the EPCG authorization subject to the condition that in such cases, additional export obligation imposed shall be over and above the average exports achieved by the importer or his group company or managed hotel in preceding three years for both the original and the substitute product(s) / service(s) :

Provided further that in case of export of goods relating to handicraft, handlooms, cottage, tiny sector, agriculture, animal husbandry, floriculture, horticulture, pisciculture, viticulture, poultry and sericulture, the importer shall not be required to maintain the average level of exports :

Provided further that in case of export of goods relating to aquaculture(including fisheries), the importer shall not be required to maintain the average level of exports subject to the condition that EPCG authorization has been obtained for goods other than fishing trawlers, boats, ships and other similar items.





39









(c) Royalty payments received in freely convertible currency and foreign exchange received for Research & Development (R&D) services; and






Table


(1) (2)





40

[ No.605/58/2009-DBK ]



---------------------------------------------------------------------------------------------------------------

GOVERNMENT OF INDIA

MINISTRY OF FINANCE


Notification No. 103 /2009-CUSTOMS

New Delhi, the 11 September, 2009.


(i) so much of the duty of customs leviable thereon 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 three percent ad-valorem, and



(1) that the goods imported are covered by a valid authorization issued under the Export Promotion Capital Goods (EPCG) Scheme in terms of Chapter 5 of the Foreigen Trade Policy permitting import of goods at the rate of three percent duty and the said authorization is produced for debit by the proper officer of customs at the time of clearance :

Provided that for import of spare parts specified at Sr.No.4 of the said Table, the validity period of the authorization shall be deemed to be the period permitted for fulfillment of the export obligation in full :

Provided further that the import of motor cars, sports utility vehicles or all purpose vehicles shall be allowed only to hotels, travel agents, tour operators or tour transport operators and companies owning or operating golf resorts, subject to the condition that,-

(i) the total foreign exchange earning from hotel, travel and tourism and golf tourism sectors in current and preceding three licensing years is rupees one crore fifty lakhs or more;

(ii) the duty saved amount on all EPCG authorizations issued in a licensing year for import of motor cars, sports utility vehicles or all purpose vehicles shall not exceed 50% of average foreign exchange earnings from hotel, travel and tourism and golf tourism sectors in preceding three licensing years; and

(iii) the vehicles imported shall be so registered that the vehicle is used for tourist purpose only and a copy of the registration certificate shall be submitted to the concerned Customs authorities as a confirmation of import of vehicle within six months from the date of import:

Provided also that the benefit of import of capital goods at concessional duty under this notification for creation of modern infrastructure shall be extended only to such retailers who have a minimum area of 1000 square metres.

41

(2) that the goods imported shall not be disposed of or transferred by sale or lease or any other manner till export obligation is completed.

(3) that the importer executes a bond in such form and for such sum and with such surety or security as may be specified by the Deputy Commissioner of Customs or Assistant Commissioner of Customs binding himself to comply with all the conditions of this notification as well as to fulfill export obligation on FOB basis equivalent to eight times the duty saved on the goods imported as may be specified on the authorization, or for such higher sum as may be fixed or endorsed by the Licensing

Authority or Regional Authority in terms of Para 5.10 of the Handbook of Procedures Vol I, issued under para 2.4 of the Foreign Trade Policy, within a period of eight years from the date of issue of Authorization, in the following proportions, namely :-



(1) (2) (3)


th year 50%

2. Block of 7th

to 8th year 50%

Provided that where the duty saved is not less than rupees one hundred crores, or where the authorization is issued to units in the agri export zone as may be notified by the licensing authority or Regional Authority, the export obligation shall be fulfilled within a period of twelve years from the date of issue of authorization in the following proportions, namely :-



(1) (2) (3)


th year 50%

2. Block of 11th

to 12th year 50%

Provided further that where a sick unit is notified by the Board for Industrial and Financial Reconstruction(BIFR) or where a rehabilitation scheme is announced by the concerned State Government in respect of sick unit for its revival, the export obligation may be fulfilled within time period allowed by the Licensing Authority or Regional Authority as per the rehabilitation package prepared by the operating agency and approved by BIFR or rehabilitation department of State Government . In cases where the time period is not specified in the rehabilitation package, the export obligation may be fulfilled within the time period allowed by the Licensing Authority or Regional Authority which shall not exceed twelve years.

Provided also that where the capital goods are imported by agro units and units in tiny and cottage sector, the export obligation shall be fixed equivalent to six times the duty saved on the goods imported as may be specified on the authrization, or for such higher sum as may be fixed by the licensing authority, within a period of twelve years from the date of issue of the authorization :

Provided also that where the capital goods are imported for technological upgradation as per conditions specified in Para 5.8 of the Foreign Trade Policy or by small scale industry units as defined in paragraph 5.2 of the Foreign Trade Policy, as the case may be, the export obligation shall be fixed equivalent to six times the duty saved on the goods imported as may

42

be specified on the authorization, or for such higher sum as may be fixed by the Licensing Authority or Regional Authority, within a period of eight years from the date of issue of authorization subject to the further condition that in the case of Small Scale Industry (SSI) units the landed Cost Insurance Freight (CIF) value of such imported capital goods under the scheme shall not exceed rupees fifty lakhs and total investment in plant and machinery after such imports shall not exceed the SSI limit :

Provided also that spares (including refurbished or reconditioned spares), moulds, dies, jigs, fixtures, tools, refractory for initial lining and catalyst for initial charge, for the existing plant and machinery (imported earlier, under EPCG or otherwise), shall be allowed to be imported under the EPCG scheme subject to an export obligation equivalent to 50% of the normal export obligation specified above, to be fulfilled in 8 years reckoned from the date of issue of the Authorization, subject to the condition that the CIF value of import of the said spares etc. shall be limited to 10% of the CIF value of the plant and machinery imported under the EPCG authorization or 10% of the book value of the plant and machinery imported earlier otherwise than under EPCG Scheme, as the case may be.


(4) that if the importer does not claim exemption from the additional duty leviable under section 3 of the Customs Tariff Act, 1975, the additional duty so paid by him shall not be taken for computation of the net duty saved for the purpose of fixation of export obligation provided the Cenvat credit of additional duty paid has not been taken;

(5) that the importer produces within 30 days from the expiry of each block from the date of issue of authorization or within such extended period as the Deputy Commissioner of Customs or Assistant Commissioner of Customs may allow, evidence to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs showing the extent of export obligation fulfilled, and where the export obligation of any particular block is not fulfilled in terms of the preceding condition, the importer shall within three months from the expiry of the said block pay duties of customs equal to an amount which bears the same proportion to the duties leviable on the goods, but for the exemption contained herein, which the unfulfilled portion of the export obligation bears to the total export obligation, together with interest at the rate of 15% per annum from the date of clearance of the goods;

(6) where the importer fulfills 75% or more of the export obligation as specified in condition (3) (over and above 100% of the average export obligation) within half of the period specified for export obligation as mentioned in condition (3), his balance export obligation shall be condoned and he shall be treated to have fulfilled the entire export obligation;

(7) that the capital goods imported, assembled or manufactured are installed in the importer‟s factory or premises and a certificate from the jurisdictional Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise, as the case may be, is produced confirming installation and use of capital goods in the importer‟s factory or premises, within six months from the date of completion of imports or within such extended period as the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, may allow :


Provided further that if the importer is not registered with central excise or if he is a service provider, as the case may be, he may produce the said certificate of installation and usage issued by an independent Chartered Engineer :

Provided further that in the case of,-

(i) manufacturer exporter and merchant exporter having supporting manufacturer(s) or vendor(s);

(ii) import of irrigation equipment for use in contract farming for export of agricultural products; and

(iii) importer rendering services;

the capital goods may be installed at the factory or premises of such other person whose name and address are endorsed on the authorization referred to in condition (1) and also on the shipping bills and where the bond for full difference of duty, if necessary, in terms of condition (3) with or without a bank guarantee, as the case may be, is executed by the importer and such other person binding themselves jointly and severally to fulfill the export obligation and all other conditions of this notification and to pay duty with interest at the rate of 15% per annum in case of default :

Provided also that agro units located in Agri Export Zones or service providers in Agri export Zones may move the capital goods within the Agri Export Zones under intimation to the jurisdictional Deputy Commissioner of Central Excise or

43

Assistant Commissioner of Central Excise, as the case may be, subject to the condition that the importer shall maintain accurate record of such movement;

(8) that the imports and exports are undertaken through sea ports at Bedi (including Rozi-Jamnagar), Chennai, Cochin, Dahej, Dharamtar,Haldia (Haldia Dock complex of Kolkata port) Kakinada, Kandla, Kolkata, Krishnapatnam, Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra,Nagapattinam, Nhava Sheva, Okha, Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any of the airports at Ahmedabad, Bangalore, Bhubaneswar, Chennai, Cochin, Coimbatore, Dabolim (Goa), Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar, Trivandrum and Varanasi or through any of the Inland Container Depots at Agra, Ahmedabad, Anaparthy (Andhra Pradesh), Babarpur, Bangalore, Bhadohi, Bhatinda, Bhilwara, Bhiwadi, Bhusawal, Chheharata (Amritsar), Coimbatore, Dadri, Dappar (Dera Bassi), Daulatabad (Wanjarwadi and Maliwada), Delhi, Dighi (Pune), Durgapur (Export Promotion Industrial Park), Faridabad, Garhi Harsaru, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar, Jamshedpur, Jodhpur, Kanpur, Karur, Kota, Kundli, Loni (District Ghaziabad), Ludhiana, Madurai, Malanpur, Mandideep (District Raisen), Miraj, Moradabad, Nagpur, Nasik, Pimpri (Pune), Pitampur (Indore), Pondicherry, Raipur, Rewari, Rudrapur(Nainital), Salem, Singanalur, Surat, Surajpur, Tirupur, Tuticorin, Udaipur, Vadodara, Varanasi, , Waluj (Aurangabad) or through the Land Customs Station at Agartala, Amritsar Rail Cargo, Attari Road, Changrabandha, Dawki, Ghojadanga, Hilli, Jogbani, Mahadipur, Nepalganj Road, Nautanva (Sonauli), Petrapole, Ranaghat, Raxaul, Singhabad and Sutarkhandi or a Special Economic Zone notified under section 4 of the Special Economic Zones Act, 2005 (28 of 2005):



Provided that in respect of sick units referred to in the second proviso to condition (3), extension of overall period of export obligation shall not be allowed :

Provided further that the Regional Authority may grant further extension in the overall period of export obligation upto a period of further two years if the authorization holder pays fifty percent differential duty on the unfulfilled portion of export obligation and agrees to fulfill other conditions as may be specified by the Regional Authority for this purpose;






(1) means obligation on the importer to export to a place outside India, goods manufactured or capable of being manufactured or services rendered by the use of capital goods imported in terms of this notification. The export obligation shall be over and above the average level of exports achieved by the importer in the preceding three licensing years for the same and similar products within the overall export obligation period including the extended period, if any. Such average shall be the arithmetic mean of export performance in the last 3 years for the same and similar products.

Provided that upto 50% of the export obligation may also be fulfilled by export of other good(s) manufactured or service(s) provided by the importer or his group company or managed hotel, which has the EPCG authorization subject to the condition that in such cases, additional export obligation imposed shall be over and above the average exports achieved by the importer or his group company or managed hotel in preceding three years for both the original and the substitute product(s) / service(s) :

44

Provided further that in case of export of goods relating to handicraft, handlooms, cottage, tiny sector, agriculture, animal husbandry, floriculture, horticulture, pisciculture, viticulture, poultry and sericulture, the importer shall not be required to maintain the average level of exports :

Provided further that in case of export of goods relating to aquaculture(including fisheries), the importer shall not be required to maintain the average level of exports subject to the condition that EPCG authorization has been obtained for goods other than fishing trawlers, boats, ships and other similar items.













(c) Royalty payments received in freely convertible currency and foreign exchange received for Research & Development (R&D) services; and





45


Table


(1) (2)





5. Motor cars, sports utility vehicles/all purpose vehicles.

[F. No.605/58/2009-DBK ]



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New Delhi, the 14th September, 2009



G.S.R 674(E) 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 the capital goods when imported into India against a duty credit scrip issued under the Status Holders Incentive Scheme in accordance with paragraph 3.16 of the Foreign Trade Policy (hereinafter referred to as the said scrip),

1. from the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), and

2. from the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act, 1975,


46

(i) that the said scrip has been issued by the licensing Authority to a status holder against exports of the products of the sectors, namely, leather (excluding finished leather), Textiles and Jute , Handicrafts, Engineering (excluding Iron and Steel, Non Ferrous Metals in primary or intermediate forms, Auto mobiles & Two wheelers, Nuclear reactors and parts and ships,Boats and Floating structures), plastic and basic chemicals(excluding Pharma Products):

Provided that the exports of the products of the above said sectors, made during 2009-10 and 2010-11 shall only be considered for entitlement under the scheme:

Provided further that, the exports specified in the Table annexed to the notification shall not be considered for computation of entitlement under the scheme;

(ii) that the said scrip is produced before the proper officer of customs at the time of clearance for debit of the duties leviable on the goods, but for this exemption;

(iii) that the said scrip shall be non-transferable and shall be used for import of capital goods relating to the sectors specified in condition (i) :

Provided that, the capital goods specified in Appendix 37 B of Hand Book of Procedures Vol.1 shall not be allowed for import;

(iv) that the capital goods imported against the said scrip shall be subject to actual user condition and the importer at the time of clearance of the said capital goods, shall furnish an undertaking to this effect to the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that in case of non compliance of the said condition, he shall pay on demand an amount equal to the duty leviable, but for the exemption contained herein together with interest at the rate of fifteen percent per annum from the date of clearance of the said materials;

(v) that the imports and exports are undertaken through seaports at Bedi (including Rozi-Jamnagar), Chennai, Cochin, Dahej, Dharamtar,Haldia (Haldia Dock complex of Kolkata port) Kakinada, Kandla, Kolkata, Krishnapatnam, Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra,Nagapattinam, Nhava Sheva, Okha, Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any of the airports at Ahmedabad, Bangalore, Bhubaneswar, Chennai, Cochin, Coimbatore, Dabolim (Goa), Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar, Trivandrum and Varanasi or through any of the Inland Container Depots at Agra, Ahmedabad, Anaparthy (Andhra Pradesh), Babarpur, Bangalore, Bhadohi, Bhatinda, Bhilwara, Bhiwadi, Bhusawal, Chheharata (Amritsar), Coimbatore, Dadri, Dappar (Dera Bassi), Daulatabad (Wanjarwadi and Maliwada), Delhi, Dighi (Pune), Durgapur (Export Promotion Industrial Park), Faridabad, Garhi Harsaru, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar, Jamshedpur, Jodhpur, Kanpur, Karur, Kota, Kundli, Loni (District Ghaziabad), Ludhiana, Madurai, Malanpur, Mandideep (District Raisen), Miraj, Moradabad, Nagpur, Nasik, Pimpri (Pune), Pitampur (Indore), Pondicherry, Raipur, Rewari, Rudrapur(Nainital), Salem, Singanalur, Surat, Surajpur, Tirupur, Tuticorin, Udaipur, Vadodara, Varanasi, , Waluj (Aurangabad) or through the Land Customs Station at Agartala, Amritsar Rail Cargo, Attari Road, Changrabandha, Dawki, Ghojadanga, Hilli, Jogbani, Mahadipur, Nepalganj Road, Nautanva (Sonauli), Petrapole, Ranaghat, Raxaul, Singhabad and Sutarkhandi or a Special Economic Zone notified under section 4 of the Special Economic Zones Act, 2005 (28 of 2005):


(vi) that where the importer does not claim exemption from the additional duty of customs leviable under section 3 of the said Customs Tariff Act, he shall be deemed not to have availed the exemption from the said duty for the purpose of calculation of the said additional duty of customs;

(vii) that the importer shall be entitled to avail of the drawback or CENVAT credit of additional duty leviable under section 3 of the said Customs Tariff Act against the amount debited in the said scrip.

TABLE

.No. Description

1 EOUs / EHTPs / BTPs who are availing direct tax benefits or exemption

2 Export of imported goods covered under para 2.35 of the FTP .

3 Exports through transhipment, meaning thereby that exports originating in third country but transhipped through

47

India

4 Deemed exports

5 Exports made by Special Economic Zone units or Special Economic Zone products exported through Domestic Tariff Area units

6 Export of items, which are restricted or prohibited for export under Schedule-2 of Export Policy in ITC (HS).

7 The exports made by the Status Holders during a particular year, if benefits are availed under Technology Upgradation Fund scheme (TUFS) of Ministry of Textiles in that year.

8 The exports made under the Zero duty EPCG scheme w.e.f 1st April, 2010.

Explanation, - For the purposes of this notification,-

(i) “Capital goods” means any plant, machinery, equipment or accessories required for manufacture or production, either directly or indirectly, of goods or for rendering services, including those required for replacement, modernization, technological up gradation or expansion. It also includes packaging machinery and equipment, refractories for initial lining, refrigeration equipment, power generating sets, machine tools, catalysts for initial charge, equipment and instruments for testing, research and development, quality and pollution control. Capital goods may be for use in manufacturing, mining, agriculture, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture and viticulture as well as for use in services sector.

(ii) "Foreign Trade Policy" means the Foreign Trade Policy 2009-2014, published by

the Government of India in the Ministry of Commerce and Industry vide notification

No.01/2009-14, dated the 27th August, 2009, as amended from time to time.

(iii) "Licensing Authority " means the Director General of 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.

[ F.No.605/58/2009-DBK ]



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New Delhi, the 14th September, 2009



48

G.S.R 675 (E), - 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 directs that each of the notifications of the Government of India in the Ministry of Finance (Department of Revenue), specified in column (2) of the Table below, shall be amended or further amended, as the case may be, in the manner specified in the corresponding entry in column (3) of the said Table, namely :-

Table

Sl.No. Notification No. and date Amendment

(1) (2) (3)

1. 53/2003-Customs,dated the 1st

April, 2003

[ Vide number G.S.R 277(E), dated the 1

st April, 2003]

In the said notification,for the portion beginning with “In exercise of the powers conferred by sub-section (1)” and ending with “Export and Import Policy” the following shall be substituted,namely,-

“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 , -

(i) the goods specified in para 3.7.2.1(vi) of the Export Import Policy and in serial number 509 of notification number 21/2002-Customs dated 1.3.2002, in case they are imported by the status holders of marine sector;

(ii) the goods specified in para 3.7.2.1(vi) of the export Import Policy in case they are imported by the status holders of other sectors;

when imported into India against a Duty Credit Entitlement Certificate (hereinafter referred to as the said certificate) issued under paragraph 3.7.2.1(vi) of the Export and Import Policy “

2. 32/2005-Customs,

dated the 8th April, 2005

[Vide number G.S.R 222(E), dated the 8

th April, 2005

In the said notification,for the portion beginning with “In exercise of the powers conferred by sub-section (1)” and ending with “Foreign Trade Policy(hereinafter referred to as the said policy) from ” the following shall be substituted,namely,-


(i) the goods specified in para 3.7 of the Foreign Trade Policy and in serial number 509 of notification number 21/2002-Customs dated 1.3.2002, in case they are imported by the status holders of marine sector;

(ii) the goods specified in para 3.7 of the Foreign Trade Policy in case they are imported by the status holders of other sectors;

when imported into India against a Duty Credit Certificate (hereinafter referred to as the said certificate) issued under paragraph 3.7 of the Foreign Trade Policy) from “

3. 73/2006-Customs,

dated the 10th July, 2006

[Vide number G.S.R408(E), dated the 10

th July, 2006

In the said notification,for the portion beginning with “In exercise of the powers conferred by sub-section (1)” and ending with “Foreign Trade Policy(hereinafter referred to as the said policy) from ” the following shall be substituted,namely,-


(i) the goods specified in para 3.7 of the Foreign Trade Policy and in serial number 509 of notification number 21/2002-Customs dated 1.3.2002, in case they are imported by the status holders of marine sector;

(ii) the goods specified in para 3.7 of the Foreign Trade Policy in case they are imported by the status holders of other sectors;

49

when imported into India against a Duty Credit Certificate (hereinafter referred to as the said certificate) issued under paragraph 3.7 of the Foreign Trade Policy) from “

[F.No.605/58/2009-DBK]



Note:

i. The Principal notification No.53/2003-Customs, dated the 1st April, 2003 was published in the Gazette of India,

Extraordinary, Part II, Section 3, Sub-Section (1) vide number G.S.R 277(E), dated the 1st April, 2003 and was

last amended by notification No.19/2009-Customs, dated the 24th February,2009 was published in the Gazette

of India Extraordinary, Part II, Section 3, Sub-Section (i) vide number G.S.R 111 (E), dated 24th February,2009.

ii. The Principal notification No.32/2005-Customs, dated the 8th April, 2005 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (1) vide number G.S.R 222(E), dated the 8th April, 2005 and was last amended by notification No.19/2009-Customs, dated the 24

th February,2009 was published in the Gazette


iii. The Principal notification No.73/2006-Customs, dated the 10th July, 2006 was published in the Gazette of India,

Extraordinary, Part II, Section 3, Sub-Section (1) vide number G.S.R 408(E), dated the 10th July, 2006 and was

last amended by notification No.19/2009-Customs, dated the 24th February,2009 was published in the Gazette


------------------------------------------------------------------------------------------------------

Government of India Ministry of Finance

(Department of Revenue) (Central Board of Excise and Customs)

Notification No. 131/2009 - Customs (N. T.)

New Delhi, 31st August, 2009

9 Bhadrapada, 1931 (SAKA)

S. O… (E) – In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Board, being satisfied that it is necessary and expedient so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2001-Cus (N. T.), dated, the 3

rd August 2001, namely: -

In the said notification, for the Table, the following Table shall be substituted namely:-

“T A B L E

S. No. Chapter/ heading/ sub-heading/tariff item

Description of goods Tariff value US $ (Per Metric Tonne)

(1) (2) (3) (4)

50

1 1511 10 00 Crude Palm Oil 447 (i.e. no change)

2 1511 90 10 RBD Palm Oil 476 (i.e. no change)

3 1511 90 90 Others – Palm Oil 462 (i.e. no change)

4 1511 10 00 Crude Palmolein 481 (i.e. no change)

5 1511 90 20 RBD Palmolein 484 (i.e. no change)

6 1511 90 90 Others – Palmolein 483 (i.e. no change)

7 1507 10 00 Crude Soyabean Oil 580 (i.e. no change)

8 7404 00 22 Brass Scrap (all grades) 3235

9 1207 91 00 Poppy seeds 3011”

F. No. 467/14/2009-Cus.V] (PRASHANT KUMAR)


Note: - The Principal notification was published in the Gazette of India, Extraordinary, vide Notification No. 36/2001 –

Customs (N.T.), dated, the 3rd August, 2001 (S. O. 748 (E), dated, the 3

rd August, 2001) and was last amended vide

Notification No. 122/2009-Customs (N.T.), dated, the 13th August, 2009 (S. O. 2123 (E) dated 13

th August, 2009).

---------------------------------------------------------------------------

Government of India

Ministry of Finance


Dated the 09th September, 2009.

18 Bhadrapada, 1931 (SAKA).

Notification No. 132 / 2009 – Customs (N.T.)

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise and Customs, hereby appoints,-

(i) the Commissioner of Central Excise, Siliguri to be the Commissioner of Customs within the jurisdiction of the:

(a) districts of Darjeeling, Jalpaiguri, Coochbehar and North Dinajpur in the State of West Bengal; and

(b) the State of Sikkim.

the Additional Commissioners of Central Excise and Joint Commissioners of Central Excise to be Additional Commissioners of Customs and Joint Commissioners of Customs, respectively, within the jurisdiction of the Commissioner of Central Excise, Siliguri.

the Deputy Commissioners of Central Excise and Assistant Commissioners of Central Excise to be Deputy Commissioners of Customs and Assistant Commissioners of Customs, respectively, within the jurisdiction of the Commissioner of Central Excise, Siliguri.

51

2. This notification shall come into effect on and from the date to be notified by the Chief Commissioner of Customs, Kolkata.

[F. No. 450/65/2009 – Cus.IV] (Navraj Goyal)


Government of India

Ministry of Finance


New Delhi dated the 9th September, 2009.

18 Bhadrapada, 1931 (SAKA).

Notification No. 133 /2009 – Customs (N.T.)

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise and Customs, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.15/2002-Customs (N.T.) published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 171(E) dated the 7

th March, 2002,

namely:-

2. In the said notification, in Table, against serial number 6, for the entry in column (2), the following entry shall be substituted, namely;--

“The whole of the –

(a) State of West Bengal, except the areas falling under the districts of

Darjeeling, Jalpaiguri, Coochbehar and North Dinajpur;

(b) Union territory of the Andaman and Nicobar Islands; and

(c) districts of Purnea, Katihar, Sahabganj and Godda in the State of Bihar.”

3. This notification shall come into effect on and from the date to be notified by the Chief Commissioner of Customs, Kolkata.

[F. No.450/65/2009 – Cus.IV]

(Navraj Goyal)


Note: The principal Notification No.15/2002-Customs (N.T.), dated the 7th March, 2002 was published in the Gazette of

India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.171 (E), dated the 7th March, 2002 and was last

amended by notification No.108/2008-Customs (N.T.), dated the 23rd September, 2008 [G.S.R. (E) 675 dated the 23

rd

September, 2008].

52


DEPARTMENT OF REVENUE

New Delhi, dated the 10th September, 2009

19 Bhadrapada , 1931 (Saka)

Notification No. 141 / 2009 – Customs (N.T.)

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 4 of the Customs Act, 1962 (52 of

1962), the Central Board of Excise and Customs, being satisfied that it is necessary in the public interest so to do, hereby

makes the following further amendment in the notification of the Government of India in the Ministry of Finance

(Department of Revenue) No. 15/2002-Customs (N.T.) dated the 7th March, 2002, namely:-

2. In the said notification, in the Table, against serial number 7, in the entry in column 2, for the words „Container

Freight Stations at Sriperumbudur Taluk of Kancheepuram District‟, the words „Container Freight Stations and

Inland Container Depots at Sriperumbudur Taluk of Kancheepuram District‟ shall be substituted.

[F. No. 450/47/2009 – Cus.IV]

(Navraj Goyal)


Note: The principal Notification was published vide G.S.R 171 (E), dated the 7th March, 2002 and was last amended by

notification G.S.R. (E), 653 dated the 9th September, 2009].

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53

Circular No. 23/2009-Customs

F. No.450/117/2009-Cus.IV

Government of India

Ministry of Finance Department of Revenue

Central Board of Excise & Customs

North Block, New Delhi

1st September, 2009

To

All Chief Commissioners of Customs / Customs (Prev.).

All Chief Commissioners of Customs & Central Excise.

All Commissioners of Customs / Customs (Prev.).

All Commissioners of Customs (Appeals).

All Commissioners of Customs & Central Excise.

All Commissioners of Customs & Central Excise (Appeals).

Subject : Powers of adjudication of the officers of Customs.

Sir / Madam,

I am directed to invite your attention to the Board‟s Circular No.87/2002-Customs dated 17.12.2002 regarding the powers of adjudication of officers of Customs. Board has reviewed the monetary limits prescribed for adjudication of cases by Additional / Joint Commissioners of Customs and it has been decided to enhance the powers of adjudication of these officers.

2. Accordingly, it has been decided that, under Section 28 of the Customs Act, 1962, the powers of adjudication of various categories of officers shall be as follows.

Level of Adjudication

Officer

Nature of cases Monetary level

(Rs. in lakh)

Customs:

Commissioner All cases. Without any limit.

ADC/JC SCN in cases involving collusion, willful mis-statement or suppression of facts

Duty involved upto Rs. 50 lakhs.

54

etc.

ADC/JC Other cases Value of goods upto Rs. 50 lakhs.

AC / DC SCN with / without invoking extended period.

Value of goods upto Rs.2 lakh.

3. In the case of Baggage, the Additional Commissioner or Joint Commissioner shall continue to adjudicate the cases without limit, since such cases are covered by the offences under Chapter XIV and it is necessary to expeditiously dispose off the cases in respect of passengers at the airport. In other cases, such as short landing, drawback etc., the adjudication powers shall be continue to the same as provided under the Customs Act, 1962 or the Rules/Regulations made thereunder.

4. As per definition under section 2 (8) of the Customs Act, 1962, Commissioner of Customs includes an Additional Commissioner of Customs except for the purpose of appeal and revision. Therefore, respective Commissioners may review the status of cases pending for adjudication, which fall within the powers of Commissioners only, and depending on the workload may consider allocating some of these cases to Additional Commissioners working under their charge to ensure speedier disposal. An appeal against the Order-In-Original passed by an Additional Commissioner shall lie before Commissioner of Customs (Appeal) and not before the CESTAT.

5. In so far as the issuance of Show Cause Notice for demand of duty under Section 28 is concerned, the same can be issued by the respective adjudicating officers depending upon the powers of adjudication.

6. It is clarified that notwithstanding this revision, in all cases where the personal hearing has been completed, orders will be passed by the Adjudicating Authority before whom the hearing has been held. Such orders should normally be issued within a month of the date of completion of the personal hearing.

7. In all cases where personal hearing is yet to be commenced, the adjudications should be done by the appropriate level of officers as per the revised instructions. An immediate exercise should be undertaken to take stock of the present pendency and the transfer of relevant files and records to respective adjudicating authorities and the exercise of transfer of case records should be completed by 30

th September 2009, under proper receipt. The recast figures should be

reflected in the Monthly Technical Report of September, 2009, which is to be submitted in October, 2009.

8. The Chief Commissioners are requested to report to the Board about the number of cases and the amount involved, which will go out of the jurisdiction of officers of different levels as a result of these modifications, pertaining to their respective jurisdiction.

9. All previous Board‟s Circulars and instructions such as instruction F.No. 437/8/91-Cus.IV dated 13.5.1992, Circular No.47/97-Cus dated 6/10/97 and Circular No.87/2002- Cus dated 17/12/2002 relating to adjudication of Show Cause Notices are hereby rescinded/ modified to the above extent.

10. These instructions may be brought to the notice of all concerned by way of issuance of suitable Public Notice / Standing Order.

11. Difficulties, if any, in implementation of the Circular may be brought immediately to the notice of the Board.

Yours sincerely,

(Navraj Goyal)

Under Secretary (Customs Policy)

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55

Circular No. 24/2009-Customs

F.No.609/09/2008-DBK

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Custom

*****

New Delhi, the 3rd September, 2009

To

All Chief Commissioners of Customs

All Chief Commissioners of Customs & Central Excise

All Commissioners of Customs /Customs (Preventive)/

Customs & Central Excise/Central Excise

DG, CEIB, New Delhi

DGRI/DGCEI/DG (Systems & Data Management)

DG (Export Promotion)/ DGI / DG, NACEN

Chief Departmental Representative, Customs, Excise & Service Tax

Appellate Tribunal, New Delhi.

Sir/Madam,

Sub:- Misuse of circular No.74/2002-Cus dated 8th November, 2002 – reg.

Sir,

I am directed to invite your kind attention to the Board‟s circular No.74/2002-Cus dated 8.11.2002. The said circular clarified that if the buyer and the seller have contracted goods on f.o.b. basis and the same is reflected in the contract and the Letter of Credit (LC), it is immaterial that the exporter has actually shipped the goods by air. The circular further stated that if the freight is on collect basis and the exporter is paying more as air freight due to the exigency of the situation without affecting the f.o.b., it would not be justified to rework the drawback amount by deducting freight element from the contracted FOB value.

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2. The circular was issued when it was brought to the notice of the Board by some field formations in 2002 that a few exporters had claimed drawback on export value which included air freight. This happened because although the exporters were required to send their goods by sea as per contract and the freight was to be borne by the buyer, they actually sent the goods by air and incurred the air freight. The exporters later claimed drawback on the entire FOB value which included the freight element also. The Apparel Export Promotion Council (AEPC), however, represented to the Board that the exporters were compelled to ship the goods by air in order to meet the delivery deadlines lest the buyers should cancel the export orders. Such delivery of cargo by air did not affect the FOB value which was a constant in terms of the contract between the exporters and the foreign buyers. The Board accepted this reasoning and issued the aforementioned circular.

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3. The Board was recently informed by a field formation that as per intelligence received by them some exporters have claimed benefit of the aforementioned circular in as much as 44% of their total consignments in a year. These exporters had paid freight charges even though the contract was on FOB basis. It was, therefore, decided to review the circular.

4. The AEPC has again represented that the operations involved in garment export trade are complex and involve lot of manual work. In the process, delays take place forcing exporters to agree to the conditions dictated by buyers to bear air freight. Such instances occur occasionally but in not more than 2-3% of shipments of any exporter. While action may be taken against exporters who misuse provisions of law, all exporters should not be measured with the same yardstick. AEPC has requested that the field formations may be advised to grant drawback to the exporters in such exigencies and circular No. 74/2002-Cus re-clarified to them by the Board. The Ministry of Textiles has also supported the view of AEPC.

5. The issue has been re-examined by the Board. It is felt that the situations of exigencies as envisaged in the above mentioned circular where exporter is forced to ship the goods by air at his expense even though the contract is on f.o.b. basis will continue to arise and needs to be provided for so that the exporters do not suffer dual disadvantage of bearing extra expense of air freight and also losing the drawback amount. However, at the same time this facility can not be allowed to be misused.

6. In view of the above, it is clarified that in situations where the buyer and the exporter have contracted the goods on f.o.b. basis and the same is reflected in the contract and the LC, but the exporter is forced to send the goods by air at his own expense due to an exigency such as contractual obligation to deliver the goods within a certain period of time, it would not be justified to rework the drawback amount by deducting freight element from the contracted FOB value. However, in order to obviate misuse and as informed by the AEPC the benefit of this circular shall be limited to only 3% of the shipments in a financial year.

7. The following procedure shall however be followed for availing this facility. The exporters who intend to take the benefit of this circular should declare the fact of exigency upfront to Assistant Commissioner / Deputy Commissioner (Drawback), before filing the Shipping Bills. Such declarations should, inter alia, give the details regarding the nature of exigency, number of consignments exported during the year from all the ports and the number of consignments in which the benefit of this Circular has been claimed. The Assistant Commissioner / Deputy Commissioner will satisfy himself about the bona fides of the case and take a decision in the matter. In the meantime, however, the Shipping Bill will be permitted to be filed, processed and the export shipment cleared like any other drawback shipment. It may be noted that the export shipment will, in no case, be stopped. The Assistant Commissioner/Deputy Commissioner will take a decision

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in the matter keeping in mind the upper limit of 3% prescribed for such cases of exigency and as far as possible, before the shipping bill comes to the Drawback queue so that the drawback can be sanctioned without delay. In case of any dispute, the drawback shall be released after deducting airfreight element from the contracted FOB value. The bonafides of the exigent situation shall be examined later and the decision on the balance drawback i.e. drawback on the amount deducted from the FOB value shall be communicated through a speaking order. The exporters shall not be required to file supplementary claims for the differential amount in such cases.

8. The pending cases pertaining to exports under circular No.74/2002-Cus dated 08.11.2002 may be finalized keeping in view the above guidelines.

9. A suitable Public Notice for information of the Trade and Standing Order for guidance of the staff may be issued. Difficulties faced, if any in implementation of the changes may be brought to the notice of the Board at the earliest.

Kindly acknowledge receipt of this Circular.

Yours faithfully,

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(PRAMOD KUMAR)

TECHNICAL OFFICER (DRAWBACK)

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