| Date: |
25-09-1996
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| Notification No: |
Customs Circular No 48/1996
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| Issuing Authority: |
Indian Customs
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| Type: |
Circular
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| File No: |
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| Subject: |
Credit under Pass Book Scheme in respect of inputs for which specific quantity limits are not expressly indicated in the standard input output norms
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Credit under Pass Book Scheme in respect of inputs for which specific
quantity limits are not expressly indicated in the standard input output norms
Circular No. 48 dated 25th
September 1996
Attention is
invited to Ministry's telex dated 16th August, 1996 issued from F.No. 605/ 261/
96-DBK whereby it was clarified that credit under the Pass Book Scheme in terms
of Notification No. 104/ 95-Customs as amended by notification No. 155/
95-Customs shall be admissible only in respect of inputs specified with a
quantity restrictions in the Standard Input Output norms and shall not be
admissible in respect of inputs permitted even on 'net to net' basis.
2. The
matter has been reconsidered in consultation with the director General of
Foreign Trade. Notification permits credit to be allowed in respect of inputs
specified with quantity restrictions in the norms. Accordingly even in cases
where such quantity is not expressly specified but can be determined with
reference to the quantum of inputs used in the export product i.e. either on
'net to net' basis or by applying the formula specified in the norms, in the
norms, it can be held that quantity of inputs is specified in the norms. In all
such cases standard input output norms are quantity based and Quantity Based
Advance Licences are issued based on such norms. There should therefore be no
objection in permitting credit under the Pass Book Scheme in respect of such
inputs. However, credit shall not be admissible in respect of inputs for which
quantity of inputs is to be worked out based on a percentage of F.O.B. value. In
such cases quantity of inputs would depend upon the value determined as a
percentage of F.O.B. value and therefore not qualify based norms.
3. Attention
is invited to Ministry's Circular No. 17/ 96 dated 15.3.96 whereby procedure for
declaration of the inputs used in the export product and their specifications
etc. was prescribed so as to make verification at the time of export. The
exporters should be asked to declare the quantity of inputs used in the export
product also as per norms in Col. 6 of Annexure 'A' to the said circular. Where
such quantum is not expressly prescribed in the norms but is required to be
determined either on 'net to net' basis or on the basis of method prescribed in
the norms, the verification of such quantity should be done at the time of
examination of goods for export under Pass Book Scheme. Due care should be taken
by the officer processing the Shipping Bill to order examination of goods taking
into account all such aspects.
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