[TO BE PUBLISHED IN
THE GAZETTE OF INDIA, EXTRAORDINARY, PART II SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No. 21/ 2015 – Customs
New Delhi, the 1st
April, 2015.
G.S.R. 257
(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 required for the manufacture of the final
goods when imported into India, from whole of the duty of customs leviable
thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975)
(hereinafter referred to as Customs Tariff Act) and from the whole of the
additional duty, safeguard duty, transitional product specific safeguard duty and
anti-dumping duty leviable thereon respectively under sections 3, 8B, 8C and 9A
of the said Customs Tariff Act, except to the extent specified in para 2 to
this notification, subject to the following conditions, namely:-
(i) that the importer has been granted Advance Authorisation for
deemed export by the Regional Authority in terms of paragraph 4.05 (c) (iii) of the Foreign Trade
Policy permitting import of the said materials (hereinafter referred to as the
said authorisation);
(ii) that the said authorisation is produced before the proper
officer of customs at the time of clearance for debit;
(iii) that the said authorisation contains endorsements
specifying, inter alia,-
(a)
the description, quantity and value
of materials allowed to be imported under the said authorisation; and
(b) the description and quantity of final goods to be
manufactured out of, or with, the imported materials:
Provided that in respect of inputs referred in paragraphs
4.12(i) and 4.12(ii) of the Foreign Trade Policy, the material permitted to be
imported in the said authorisation shall be of the specific name or description
or quantity, respectively, as the material used in the manufacture of the final
goods supplied. The authorisation holder shall declare these particulars on the
documents like ARE-3 and Central Excise Certified Invoice;
(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, 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
under rule 18 or sub-rule (2) of rule 19 of the Central Excise Rules, 2002 or of
the 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 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, and if
facility under rule 18 or sub-rule 2 of rule 19 of the Central Excise Rules,
2002 or of the 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 the seaports, airports or
through the inland container depots or through the land customs stations as
mentioned in the Table 2 annexed to the Notification No.16/ 2015- Customs dated 01.04.2015 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;
(viii) that the
export obligation as specified in the said authorisation (both in value and
quantity terms) is discharged within the period specified in the said authorisation
or within such extended period as may be granted by the Regional Authority by
supplying final goods manufactured in India which are specified in the said
authorisation;
(ix) that the
importer produces evidence of having discharged obligation to supply final
goods to the satisfaction of the said Deputy Commissioner of Customs or
Assistant Commissioner of Customs, as the case may be, within a period of sixty
days from the expiry of the period allowed for fulfillment of obligation or
within such extended period as the 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.
32/1999-Central Excise dated 08.07.1999, 33/1999-Central Excise dated
08.07.1999, 39/2001- Central Excise dated 31.07.2001, 56/2002- Central Excise
dated 14.11.2002, 57/2002- Central Excise dated 14.11.2002, 49/2003- Central
Excise dated 10.06.2003, 50/2003- Central Excise dated 10.06.2003, 56/2003- Central
Excise dated 25.06.2003, 71/03- Central Excise dated 09.09.2003, 8/2004-
Central Excise dated 21.01.2004 and 20/2007- Central Excise dated 25.04.2007;
(xi) that
components and parts, required for manufacture of final goods which are wholly
exempted from payment of excise duty when removed from the factory of
production, may be taken directly from the port of import to the project site
as per the procedures and limitations, if any, laid down by the Board in this
regard subject to the condition that description and quantity of such
components and parts and the address of the site have been specified in the
said authorisation.
2. The
exemption from safeguard duty, transitional product specific safeguard duty and
anti-dumping duty shall not be available in respect of material required for
final goods which are covered under sub-clauses (a), (c), (d) and (i) of clause (III)
of the Explanation to this notification.
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) “Export Oriented
Units” has the same meaning as assigned to it in paragraph 9.18 of the Foreign
Trade Policy;
(III) “Final goods” means –
(a) supply of goods against Advance Authorisation or Advance
Authorisation for annual requirement or Duty Free Import Authorisation Scheme;
(b) supply of goods to Export Oriented Units or Software Technology
Parks or Electronic Hardware Technology Parks or Biotechnology Parks;
(c) supply of capital goods against Export Promotion Capital Goods
Authorisation;
(d) supply of
marine freight containers by 100% Export Oriented Units ( domestic freight
container manufacturers) where such
containers are exported out of India within a period of six months or such
further period as may be permitted by the Deputy Commissioner of Customs or the
Assistant Commissioner of Customs, as the case may be;
(e) supply of goods to
projects financed by multilateral or bilateral agencies or funds as notified by Department of Economic
Affairs, Ministry of Finance under
International Competitive Bidding (ICB) in accordance with the procedures of
those agencies or funds, where legal agreements provide for tender evaluation
without including customs duty;
(f) supply and installation of goods and
equipment (single responsibility of turnkey contracts) to projects financed by
multilateral or bilateral agencies or funds as notified by Department of Economic Affairs,
Ministry of Finance under ICB in accordance with the
procedures of those agencies or funds, where bids may have been invited and
evaluated on the basis of Delivered Duty Paid (DDP) prices for goods manufactured
abroad;
(g) supply of goods to any project or
purpose in respect of which the Ministry of Finance, by Notification No.
12/2012-Customs dated 17-3-2012, as amended from time to time, permits
import of such goods at zero customs duty subject to conditions specified in
the said Notification and the supply is made under ICB procedure;
(h) supply of goods required for setting
up of any of the mega power projects specified in the list 32A at Sl. No. 507
of Notification No. 12/2012- Customs dated 17.03.2012, as amended from time to time, provided the mega power project conforms to the threshold
generation capacity specified in the
said Notification. The supply should be made under ICB procedure. The
ICB condition shall not be mandatory if the requisite quantum of power has been
tied up through tariff based competitive bidding or if the project has been
awarded through tariff based competitive bidding;
(i) for supply for official use or to the projects funded by
UN or International Organisation
in terms of Notification No. 108/95-Central Excise dated 28.08.1995;
(j) Supply
of goods to nuclear power projects through National Competitive Bidding (NCB)
or through ICB as provided in clause(h) of para 7.02 of Foreign Trade Policy;
(IV) "Foreign Trade Policy" means the Foreign
Trade Policy, 2015-2020,
published by the Government of India in the Ministry of Commerce and Industry
vide notification
No. 01/2015-2020,
dated the 1st April 2015 as amended from time to time;
(V) “Materials” means –
(a)
raw materials, components,
intermediates, consumables, catalysts and parts which are required for
manufacture of final goods;
(b)
mandatory spares within a value limit of ten per cent. of the value
of the authorisation which
are required to be exported along with the final goods;
(c)
fuel required for manufacture of
final goods;
(d)
packaging materials required for
packing of final goods;
(VI) “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
authorisation under the said Act; and
(VII) “Specified Chartered Accountant” means a statutory
auditor or a Chartered Accountant who certifies the importer’s financial
records under the Companies Act, 2013
(18 of 2013) or the Income Tax Act, 1961 (43 of 1961) or the Sales Tax or the
Value Added Tax Act of the State Government.
[F.No.605/55/2014-DBK]
(Sanjay
Kumar)
Under
Secretary to the Government of India