Notification No. 204 dated 19^th May 1992 (As amended by notification nos. 248/92, 290/92, 99/93, 139/93, 159/93, 183/93, 105/94, 136/94, 180/94, 82/95, 101/95, 32/98)

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 and Advance Licence issued on or before 31^st March, 1995 (hereinafter referred to as the said licence) 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:-

(i)     that the materials imported are covered by a Quantity Based Duty Exemption Entitlement Certificate (hereinafter referred to as the said certificate), issued by the Licensing authority in the form specified in the Schedule annexed  to this notification, in respect of the value, quantity, description, quality and technical characteristics:

Provided that where quantity allowed for a particular description of materials cannot be imported within the specified value under the said certificate, the Commissioner of Customs may allow adjustment of individual value within the total value;

(ii)    that the importer at the time of clearance of the imported materials-

(a) produces proof of having executed a bond or a legal undertaking before the Licensing Authority concerned, for complying with the conditions of this notification; and

(b) makes a declaration before the Assistant Commissioner of Customs binding himself to pay on demand an amount equal to the duty leviable but for the exemption, on the imported materials in respect of which the conditions specified in this notification have not been complied with;

Provided that a bond or a legal undertaking and the declaration shall not be necessary in respect of imports made after dischargeof export obligation in full, as evidence by endorsement of Licensing Authority in the said Certificate;

(iii)   that the said licence and the said certificate is produced before the proper officer of customs at the time of clearance of imported goods out of  customs control:

Provided that no such imported materials shall be permitted clearance under this notification unless a debit entry has been made, in the said licence and the said certificate, by the proper officer of customs;

(iv)    that the imports and exports are undertaken from sea ports at Bombay, Calcutta, Cochin, Kandla, Mangalore, Marmagoa, Madras, Nhava Sheva, Paradeep, Tuticorin and Visakhapatnam, or through any of the airports at Ahmedabad , Bangalore, Bombay, Calcutta, Delhi, Jaipur, Varanasi, Srinagar, Trivandrum, Hyderabad, and Madras or through any of the Inland Container Depots at Bangalore, Coimbatore, Delhi, New Gauhati Goods Shed, Moradabad, Ludhiana and Hyderabad;

Provided that the Commissioner of Customs may by special order and subject to such conditions as may be specified by him permit imports and exports from any other sea port, airport, land customs station or inland container depots;

(v)    that the export obligations is discharged, within the period specified in the said certificate or within such extended period as may be granted by the Licensing Authority or the Director General of Foreign Trade, by exporting goods manufactured in India in respect of which facility under rule 191A or 191B as in force immediately before the 1^st October, 1994, or rule 12(1)(b) or rule 13(1)(b) of the Central Excise Rules, 1944, has not been availed in respect of materials permitted under the said licence, except the benefit under notification of the Government of India in the Ministry of Finance (Department of Revenue) No.49/94-CE-NT dated the 22^nd September, 1994; 

(vi)

(a) that the facility of sale or transfer of materials or transfer of the said licence shall not be available in respect of those materials which are permitted for import under the said licence and for which the credit of Central Excise duty or Additional Customs duty has been availed under Rule 56A or Rule 57A of the Central Excise Rules, 1944; and

(b) the facility provided in sub-para (a) above shall be applicable only to a manufacturer exporter or to an exporter who has declared a supporting manufacturer and the name of the supporting manufacturer so declared appears on the said licence.       

(vii)   exempt materials shall not be disposed of or utilised in any manner, except for utilisation in discharge of export obligation, before  the export obligation under the said licence has been discharged in full and export proceeds realised;

Provided that the materials imported against an Advance Intermediate Licence issued after 31^st March 1993, shall not be disposed of after the discharge of export obligation and realisation of sale proceeds and such materials may be utilised by the importer for manufacture of any other goods.

Provided that Acetic Anhydride in respect of which the benefit of this notification is claimed shall be utilised by the importer in his own factory or in the factory of any other manufacturer indicated in the said certificate even after discharge of export obligation and realisation of export proceeds;

(viii)  where benefit of the notification is sought by a person other than licencee, such benefit shall be allowed against the said licence and the said certificate only if it bears endorsement of transferability of the Licensing Authority.

Provided that benefit of this notification shall not be allowed to a transferee of the licence for import of Acetic Anhydride except where licence is endorsed for transferability before 24^th November 1993, and is transferred to an actual user who undertakes to use the Acetic Anhydride in his own factory;

Provided that no such endorsement of transferability shall be made by the Licensing Authority on Advance Intermediate Licences issued after 31^st March 1993.

Provided that benefit of this notification shall not be allowed to a transferee of the licence for import of Acetic Anhydride except where licence is endorsed for transferability before 24^th November 1993, and is transferred to an actual user who undertakes to use the Acetic Anhydride in his own factory;