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Regarding clearance of goods imported by United Nations and its agencies
for execution of the projects financed by them
Circular No. 67dated 2nd December 1997
I am directed to
refer/ notification 84/97-Cus. dated 11.11.97 which exempts goods imported into
India by the United Nations or, an International Organisation for execution of
the projects financed by them from the duty of customs and additional duty and
special Customs duty.
2. The
importer is required to produce a Duty Exemption Certificate issued by an
officer, not below the rank of Deputy Secretary to the Government of India as
given in the Notification.
3. In
the notification the term "International Organisation" has been used
for organisations which have been declared as such under section 3 of United
Nations (Privileges and Immunities Act, 1947 (46 of 1947) as eligible for
privileges under section 7 of Article II of Schedule to the said Act.
4. In
this connection attention is drawn to Board's earlier circular 79/ 95-Cus.,
dated 6.7.95 under which clarifications were issued regarding the exemptions to
the imports made for the projects funded by United Nations or its agencies. It
may be seen that section 7(b) of the UN(P & I) Act, 1947 provides for
exemptions from customs duties and prohibitions and restrictions on imports and
exports in respect of articles imported or exported by the UN and its agencies
for its official use. The implication is that if the import is by the UN agency
in its own name and goods are meant for its official use the exemption would be
available. At times the imports are being made by third parties on account of UN
agency for a project being funded by the said UN agencies. It was observed that
the imports in such cases are not by the UN agencies and also not for their
official use. Hence, it was decided that the exemption from customs duty in such
cases would not be available under UN (P & I) Act.
5. The
issue of duty free clearance of goods imported by UN and its agencies was
examined in detail. It was observed that in the Central Excise side,
Notification No. 108/ 95-CE, dated 28.8,95 exempts goods supplied to the United
Nations or international organisations for their official use or supplied to the
projects financed by the United Nations or international organisations and
approved by the Government of India, from the levy of Central Excise duties. On
the same analogy it has been decided that the United Nations and its agencies
that are presently bringing the goods for different projects under agreements
with appropriate administrative Ministry of the Government of India will be
exempted from the whole of the duties of customs including additional duty and
special duty of Customs.
6. In
view of above, the goods imported by United Nations or International
Organisations as mentioned above for execution of projects funded by them and
approved by Government of India may be allowed after accepting duty exemption
certificates issued by nodal ministry in terms of notification 84/ 97-Cus. dated
11.11.97.
7. Difficulty, if
any, in implementation of said notification may be brought to the notice of
Board immediately.
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