Notification No. 49 dated 27th
April 2000 (As amended by Notification No. 49 dated 24th
April 2002, Notification No. 113 dated 16th
October 2002, Notification No. 116 dated 28th October 2002)
In
exercise of the powers conferred by sub-section (1) of section 25 of the
Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it
is necessary in the public interest so to do hereby exempts goods specified in
the Table annexed hereto from 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 5% ad valorem and
from the whole of the additional duty and special additional duty leviable
thereon respectively under sections 3 and 3A of the said Customs Tariff Act.
2.������� The exemption contained in paragraph 1,
shall be subject to the following conditions, namely: -
(1) The goods imported are covered by a valid licence issued
under the Export Promotion Capital Goods (EPCG) Scheme in terms of paragraph
6.2 of the Export and Import Policy permitting import of goods at the rate of
5% duty and the said licence is produced for debit by the proper officer of the
customs at the time of clearance:
Provided that for
the import of spare parts, the validity period of the licence shall be deemed
to be the period permitted for fulfilment of the export obligation in full.
(2) The importer executes a bond in such form and for such
sum and with such surety or security as may be specified by the Assistant
Commissioner of Customs or Deputy Commissioner of Customs binding himself to
fulfil export obligation equivalent to five times the CIF value of the goods
imported on FOB basis, or four times the CIF value of capital goods on Net
Foreign Exchange basis as specified in the licence, or for such higher sum as
may be fixed by the Licensing Authority, within a period of eight years from
the date of issue of licence, in the following proportions, namely: -
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S. No.
|
Period from the date of issue of
licence
|
Proportion of total export
obligation
|
|
(1)
|
(2)
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(3)
|
|
1.
|
Block
of 1st and 2nd year
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Nil
|
|
2.
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Block
of 3rd and 4th year
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15%
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|
3.
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Block
of 5th and 6th year
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35%
|
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4.
|
Block
of 7th and 8th year
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50%
|
Provided
that where the CIF value of licence is not less than
Rs.100 crores, the export obligation shall be fulfilled within a period of 12 years
from the date of issue of licence in the following proportions, namely: -
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S. No.
|
Period from the date of issue of licence
|
Proportion of total export
obligation
|
|
(1)
|
(2)
|
(3)
|
|
1.
|
Block of 1st, 2nd,
3rd, 4th and 5th Year
|
Nil
|
|
2.
|
Block of 6th 7th
and 8th Year
|
15%
|
|
3.
|
Block of 9th and 10th
Year
|
35%
|
|
4.
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Block of 11th and 12th
Year
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50%
|
Provided further
that where a
sick unit notified by the Board for Industrial and Financial Reconstruction
(BIRF) is subsequently taken over by another unit for revival, the export
obligation may be fulfilled within a period of 12 years from the date of issue
of license.
Provided
also that export obligation of a particular block may be set off by
the excess exports made in the said preceding block(s);
(3) The importer produces within 30 days from the expiry of
each block of two years from the date of issue of licence or within such
extended period as the Assistant Commissioner of Customs or Deputy Commissioner
of Customs may allow, evidence to the satisfaction of the Assistant
Commissioner of Customs or Deputy Commissioner of Customs showing the extent of
export obligation fulfilled, and where the export obligation of any particular
block of two years 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 of an equal amount equal to that portion of duties leviable on the
goods but for the exemption contained herein which bears the same proportion as
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.
(4) The importer shall, if he fails to discharge a minimum
of 25% of the export obligation prescribed for any particular block of two
years for two consecutive blocks, be liable to pay forthwith the whole of the
duties of customs leviable on the goods imported but for the exemption
contained in this notification together with interest at the rate of 15% per
annum from the date of clearance of the goods.
(5) The capital goods imported, assembled or manufactured
are installed in the importer�s factory or premises and a certificate from the
jurisdictional Assistant Commissioner of Central Excise or Deputy Commissioner
of Central Excise or an independent Chartered Engineer, 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 said Assistant Commissioner of Customs or
Deputy Commissioner of Customs may allow.
Provided that in the case of, -
(i)� manufacturer
exporter and merchant exporter having supporting manufacturer (s)/ 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 licence
referred to in condition (1) and where the bond for full difference of duty, if
necessary, in terms of condition (2), with a bank guarantee is executed by the
importer and such other person binding themselves jointly and severally to
fulfil the export obligation and all other conditions of this notification and
to pay duty with interest in case of default.
(6) Notwithstanding anything contained
in conditions (3) and (4), where the Licensing 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 regularisation of shortfall, in export
obligation, not exceeding 5 per cent of such export obligation, the said
block-wise period or overall period of export obligation may be extended and
the said shortfall in export obligation be condoned by the Assistant
Commissioner of Customs or Deputy Commissioner of Customs:
Provided that in respect of licence having
overall export obligation period of 12 years, the extension of
overall period of export obligation shall not be allowed.
3.������� Where the goods are found defective or
unit for use, the said goods may be re-exported back to the foreign supplier
within 3 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 Assistant Commissioner of Customs or Deputy Commissioner of
Customs as the goods, which were imported.
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S.No.
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Description of goods
|
|
(1)
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(2)
|
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1.
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Capital goods
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2.
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Capital
goods in SKD/ CKD condition to be assembled into capital goods by the importer
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3.
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Components
of capital goods required for assembly or manufacture of capital goods by the
importer
|
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4.
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Spare
parts not exceeding 20% of the value of goods specified at serial Nos. 1, 2
and 3 as actually imported and required for maintenance of capital goods so imported,
assembled, or manufactured
|
Explanation: In this notification, -
(1)������ �Capital Goods� means any plant, machinery equipment and
accessories required for-
(a)������ manufacture or production of other goods, including packaging machinery
and equipments, refractories, refrigeration equipment, power generating sets,
machine tools, catalysts for initial charge, and equipment and instruments for
testing, research and development, quality and pollution control;
(b)������ use in manufacturing, mining, agriculture, marine,
aquaculture, animal husbandry, floriculture, horticulture, pisciculture,
poultry, viticulture and sericulture;
(c)������ rendering services;
(2)������ �Export and Import Policy� means the Export and Import Policy
1997-2002 published vide notification of the Government of India in the
Ministry of Commerce, No. 1 (RE-99)/1997-2002, dated the 31st March,
2000.
(3)������ �Licensing Authority� means the Director General, Foreign
Trade appointed under section 6 of the Foreign Trade (Development and
Regulation) Act, 1992 (22 of 1992) or an officer authorised by him to grant a
licence under the said Act;
(4)������ �export obligation�, -
(i)������� in relation to importers other than those rendering services,
means export to a place outside India of products manufactured with the use of
capital goods imported, assembled or manufactured in terms of this notification
or making of supplies of such products in terms of clauses (a), (b), (d), (e),
(f) and (g) of paragraph 10.2 of the Export and Import Policy; and
(ii)������ in relation to importers rendering services, means receiving
payments in freely convertible foreign currency for services rendered through
the use of such capital goods;
(5)������ �Net foreign exchange�, in relation to importers other than
those rendering services, means FOB value of products exported in discharge of
obligation in terms of this notification minus CIF value of inputs used in
manufacture thereof where such inputs have been, -
(a) imported by the
importer directly against a licence; or
(b) procured indigenously,
for which the importer claims replenishment under the Duty Exemption Scheme as
contained in Chapter 7 of the Export and Import Policy,
and the said foreign
exchange is earned in freely convertible currency.