|
Material imported into India against Special Value Based Advance Licence
for the export of readymade garments
Notification
No. 107 dated 2nd June 1995 (As
amended by notification nos.140/95, 6/96, 28/96)
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 Special Value Based Advance Licence (hereinafter referred to
as the said licence) for the export of readymade garments (other than leather
garments) issued under Scheme �B� contained in Appendix XXII-A of the
Handbook of Procedure 1st April 1992-31st March 1995,
Vol.I (Revised Edition: April, 1995) published in terms of paragraph 53 of the
Export and Import Policy by the Government of India in the Ministry of Commerce
vide Public Notice No. 292/(PN) 92-97 dated the 30th April, 1995,
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:-
(1)
Material imported are covered by a Value Based Duty exemption Entitlement
Certificate (hereinafter referred to as the said certificate) issued by the
Licencing Authority in the form specified in the Schedule annexed to this
notification;
(2)
The importer has received an export order for export of readymade
garments for which the foreign buyer has opened an irrevocable Letter of Credit
in freely convertible currency in favour of the importer and the importer has in
turn also opened an overseas Letter of Credit (hereinafter referred to as the
overseas Letter of Credit) for import of materials for a value not exceeding 67%
of the value of the irrevocable Letter of Credit opened by the foreign buyer.
(3)
The importer at the time of clearance, -
(a)
produces the said licence, certificate, and the overseas Letter of Credit for
debit by proper officer of Customs;
(b)
omitted
(c)
executes a bond with such surety or security and in such form and for such sum
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 imported materials
but for the exemption contained herein in respect of which the conditions
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
materials
(4)
That the materials imported are utilised only for the manufacture and
export of goods for which irrevocable Letter of Credit has been opened in favour
of importer by the foreign buyer and no part of such materials shall be disposed
of or utilised in any other manner.
(5)
That the export obligation is discharged within the period specified in
the said certificate or within such extended period as may be granted by the
Licencing Authority by exporting goods manufactured with the use of materials
imported in terms of this notification and the importer produces the said
certificate together with evidence of discharge of export obligation to the
satisfaction of the Assistant Commissioner of Customs within a period of thirty
days of the expiry of period allowed for fulfilment of export obligation or
within such extended period as the said Assistant Commissioner of Customs may
allow;
(6)
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 seaport, airport or Inland Container Depot or through a land customs
station.
Explanation:
In this notification, -
(i)
�Export and Import Policy� means Export and Import Policy 1 April
1992-31 March, 1997 (Revised Edition: March, 1995) published vide notification
of Government of India in the Ministry of Commerce Notification No.1
(RE-95)/92-97 dated the 31st March, 1995.
(ii)
�Licencing authority� means the Director General, Foreign Trade
appointed under 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,
(iii)
�Materials� means-
(a)
fabrics to be actually used in the manufacture of garments to be exported to
the foreign buyer in terms of Letter of Credit opened by him in favour of
importer;
(b)
trimmings and embellishments and sample yardage not exceeding 3% of the value
of overseas Letter of Credit.
|