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Exemption to inputs required for the manufacture of iron and steel
intermediates when imported into India
Notification
No. 10 dated 7th March 1995 (As amended by notification nos. 101/95,
143/95, 157/95, 23/96, 27/96, 24/97)
In
exercise of the powers conferred by sub-sections (1) of section 25 of the
Customs Act, 1962, the Central Government, being satisfied that it is necessary
in the public interest so to do, hereby exempts inputs required for the
manufacture of iron and steel intermediates when imported into India, from the
whole of the duty of Customs leviable thereon under the First Schedule to the
Customs Tariff Act, 1975 (51 of 1975), subject to the following conditions,
namely: -
(1)
that the importer has been granted necessary import licence(hereinafter
referred to as the said licence) by the Licensing Authority for the import of
the said inputs for the aforesaid purpose in terms of Engineering Products
Exports (Replenishment of Iron and
Steel Intermediates) scheme as notified by the Government of India in the
Ministry of Commerce Notification No. S.O. 130 (e) dated the 1st
March, 1995 and the said licence has been produced at the time of clearance for
debit by the proper officer of customs;
(2)
omitted
(3)
the importer furnishes a bond, with such surety or security, in such form
as may be specified by the Assistant Commissioner of Customs binding himself to
pay on demand an amount equal to the duty leviable on the said inputs but for
the exemption contained herein, in respect of which the condition specified in
this notification have not been
complied with; together with interest at the rate of 24% per annum from the date
of clearance of the said inputs.
(4)
that the importer produces evidence of having discharged the obligation
relating to supply of iron and steel intermediates to the Engineering Products
exporters to the satisfaction of the Assistant Commissioner of Customs within a
period of thirty days from the expiry of period allowed for fulfilment of the
obligation or within such extended period as the said Assistant Commissioner of
Customs may allow;
(5)
that the inputs so imported shall not be disposed off or utilised in any
manner, except for utilisation in the discharge of obligation to manufacture and
supply iron and steel intermediates in terms of this notification, before the
said obligation under the said licence has been discharged in full:
Provided
that spares and consumables imported in terms of this notification shall not be
loaned, transferred, sold or disposed of in any manner, and shall be used by the
importer only in his factory;
(6)
where benefit of this notification is sought by person other than the
licencee, such benefit shall be allowed against the said licence only if it
bears endorsement of transferability by the Licencing Authority:
Provided
that endorsement of transferability shall not be made by the Licencing Authority
before the obligation to supply iron and steel intermediates under the said
licence has been fulfilled.
(7)
that the imports and exports are undertaken through sea ports at Bombay,
Calcutta, Cochin Kandla, Mangalore, Marmagoa, Madras, Nhava Sheva, Paradeep,
Tuticorin and Visakhapatnam, or through any of the airports at the Ahmedabad,
Bangalore, Bombay, Calcutta Coimbatore, Delhi, Hyderabad, Jaipur, Madras,
Srinagar, Trivandrum and Varanasi or through any of the Inland Container Depots
at Bangalore, Coimbatore, Delhi, Gauhati, Hyderabad, Kanpur, Ludhiana, Moradabad,
Pimpri(Pune) and Pitampur (Indore):
Provided
that the Commissioner of Customs may by special order and subject to such
conditions as may be specified by him, permit import and export through any
other sea port, airport or Inland Container Depot or through a land customs
station�
Explanation:
In this notification, -
(i)
�Engineering products� means export items (other than iron steel,
ferro alloys and refractories) specified under the export product group
�Engineering Products� in the I-O Norms and which have already been
exported;
(ii)
�I.O.
Norms� means the Standard Input-Output and Value Addition norms as contained
in the Hand Book of Procedures (Volume II) published vide public Notice No.
121(PN)/92-97 dated the 31st March, 1992 of the Government of India
in the Ministry of Commerce, as amended from time to time;
(iii)
�Inputs�
means, -
(a)
raw materials, components, intermediates and consumables specified as import
items in the I-O Norms and required for the manufacture of iron and steel
intermediates; and
(b)
spares for a value not exceeding 5% of the value of the licence required for
the maintenance of capital goods installed in the importer�s factory.
(iv)
�Iron and Steel Intermediates� means export Items specified under
sub-group �Iron, Steel Ferro Alloys and Refractories� under the export
product group �Engineering Products� in I-O Norms and in respect of which
value addition has been specified in the I-O Norms, and such items are
supplied to an exporter as replenishment for similar items already used in the
manufacture of the Engineering Products against a Release Advice issued by the
Licensing Authority:
Provided
that no such Release Advice shall be issued by the Licensing Authority where
benefit of duty exemption for such items has been availed under any other
scheme.
(v)
�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;
(vi)
�Release Advise� means a Release Order indicating the name,
description and technical characteristics of the iron and steel intermediates,
their quantities and value thereof as per the I-O norms.
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