|
Regarding Extension of the Jurisdiction of the Customs Act, 1962
Customs Circular No. 22 dated 23rd April 2002
Sub: Regarding Extension of the Jurisdiction of the Customs Act, 1962 and the Customs
Tariff Act, 1975 to whole of the EEZ and Continental Shelf under the Territorial Waters, Continental Shelf,
Exclusive Economic Zone and other Maritime Zones Act, 1976
I am directed to refer to Board�s letter F.No. 450/ 65/ 92-Cus.IV dated 28/9/1994 and Circular
No. 28/ 95-Cus. dated 27/3/1995 explaining the legal position regarding levy of Customs duty on goods brought
into a �designated area� of the Exclusive Economic Zone (EEZ) and levy of central excise duty on oil
produced in such areas. It was clarified in these instructions that any oil produced in the offshore
installations in the said �designated areas� or within the Territorial Waters of India would be deemed to
be produced in India and subject to the levy of central excise duties under section 3 of the Central Excise
Act, 1944. In case, however, the oil is produced at such of the installations which have not been designated
by the Ministry of External Affairs and which lie outside the Territorial Waters of India, such oil would be
deemed to be imported into India when this oil is transferred to the mainland and be subject to customs duties
as specified in the Customs Tariff Act, 1975.
2.
The matter has been reviewed by the Government. In this connection, please find enclosed a copy of
notification dated 7th February, 2002 issued by the Ministry of External Affairs, whereby the
jurisdiction of the Customs Act, 1962 and the Customs Tariff Act, 1975 has been extended to whole of the EEZ
and Continental Shelf of India for certain purposes. The purposes specified in the notification are (i) the
prospecting for extraction or production of mineral oils in the Continental Shelf and EEZ of India, and (ii)
the supply of any goods (as defined in clause (22) of section 2 of the Customs Act, 1962) in connection with
any of the activities mentioned in clause (i) above. In the �Explanation� to the notification, it has been
clarified that for the purposes of the notification, "mineral oils" would include petroleum and
natural gas.
3.
The implication of the said notification is that mineral oils extracted or produced in the EEZ and
Continental Shelf of India if brought to the mainland shall not be treated as import and therefore, no customs
duty shall be leviable on such mineral oils. Likewise, the goods supplied from the mainland to a place in EEZ
or Continental Shelf of India in connection with any activity related to mineral oil extraction or production
shall not be treated as export under the Customs Act, 1962 and consequently, no export benefits can be availed
of on such supplies. Another implication of the said notification is that bringing of any goods from any other
country to any place in EEZ or Continental Shelf of India in connection with any activity related to
extraction or production of mineral oils shall be treated as import under the Customs Act, 1962 and would be
charged to duty accordingly.
4. The Circular No. 17/2002-Cus.
dated 13th March, 2002 stands rescinded.
5. These instructions may be brought
to the notice of all concerned by way of issuance of suitable Public Notice/ Standing Orders.
6.
Difficulties, if any, faced in the implementation of above instructions may be brought to the notice of
the Board. Kindly acknowledge receipt.
MINISTRY
OF EXTERNAL AFFAIRS
NOTIFICATION
New
Delhi, the 7th February 2002
In
exercise of the powers conferred by clause (a) of Sub-section (6) of Section 6
and clause (a) of sub-section (7) of Section (7) of the Territorial Waters,
Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976
(80 of 1976) the Central Government hereby extends the Customs Act, 1962 (52 of
1962), and Customs Tariff Act, 1975 (51 of 1975) to the continental shelf of
India and the exclusive economic zone of India with effect from the date of
publication of this notification in the Official Gazette, for the following
purposes, namely:-
(a)
the prospecting for extraction or production or mineral oils in the
continental shelf of India or the exclusive economic zone of India, and
(b)
the supply of any goods [as defined in clause (22) of section 2 of the
Customs Act, 1962] in connection with any of the activities referred to in
clause (a).
Explanation:
For the purposes of this notification, �mineral oils� include
petroleum and natural gas.
|