GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No. 20/ 2015 – Customs
New Delhi, the 1st April, 2015.
G. S. R. 256 (E) - 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 a valid Advance Authorisation for Annual
Requirement (hereinafter referred to as the said Authorisation) with actual user
condition issued by the Regional Authority in terms of Paragraph 4.06 of the
Foreign Trade Policy 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) (hereinafter referred to as Customs Tariff Act) and from the whole of the
additional duty, safeguard duty, transitional product specific safeguard duty
and anti-dumping duty leviable thereon, respectively, under sections 3,8B, 8C
and 9A of the said Customs Tariff Act, subject to the following conditions,
namely:-
(i) that the said authorisation is produced before the proper officer of customs
at the time of clearance for debit of the quantity and value of imports;
(ii) that the said authorisation is issued with respect to Standard Input Output
Norms (SION) fixed and bears,-
(a) the name and address of the importer and the supporting manufacturer in
cases where the authorisation has been issued to a merchant exporter; and
(b) the shipping bill number(s) and date(s) and description, quantity and value
of exports of the resultant product in cases where import takes place after
fulfillment of export obligation; or
(c) the description, Cost Insurance Freight value and other specifications of
the imported materials and the description, quantity and Free on Board value of
exports of the resultant product covered under an export product group specified
in the Hand Book of Procedures, in such cases where import takes place before
fulfillment of export obligation:
Provided that in respect of inputs referred in paragraphs 4.12(i) and 4.12(ii)
of the Foreign Trade Policy, the material permitted to be imported in the said
authorisation shall be of the specific name or description or quantity,
respectively, as the material used in the export of the resultant product. The
exporter shall declare these particulars in the shipping bill or bill of export:
Provided further that in respect of the inputs specified in paragraph 4.45 (b)
of the Hand Book of Procedures of the Foreign Trade Policy, the technical
characteristics, quality and specifications shall be declared at the time of
import and the material permitted in the said authorisation shall be of the same
technical characteristics, quality and specifications as the materials used (or
to be used) in the export of the resultant product:
Provided also that the exporter shall give declaration with regard to the
technical characteristics, quality and specifications of materials used in the
export of resultant product, in the shipping bill/ bill of export;
(iii) that in respect of imports made before the discharge of export obligation,
the importer at the time of clearance of the imported materials executes a bond
with such surety or security and in such form and for such sum as may be
specified by the Deputy Commissioner of Customs or Assistant Commissioner of
Customs, as the case may be, binding himself to pay on demand an amount equal to
the duty leviable, but for the exemption contained herein, on the imported
materials in respect of which the conditions specified in this notification are
not complied with, together with interest at the rate of fifteen percent per
annum from the date of clearance of the said materials;
(iv) that in respect of imports made after the discharge of export obligation,
if facility of CENVAT Credit under CENVAT Credit Rules, 2004 has been availed,
then the importer shall, at the time of clearance of the imported materials
furnish a bond to the Deputy Commissioner of Customs or Assistant Commissioner
of Customs, as the case may be, binding himself, to use the imported materials
in his factory or in the factory of his supporting manufacturer for the
manufacture of dutiable goods and to submit a certificate, from the
jurisdictional Central Excise officer or from a specified chartered accountant
within six months from the date of clearance of the said materials, that the
imported materials have been so used:
Provided that if the importer pays additional duty of customs leviable on the
imported materials but for the exemption contained herein, then the imported
materials may be cleared without furnishing a bond specified in this condition
and the additional duty of customs so paid shall be eligible for availing CENVAT
Credit under the CENVAT Credit Rules, 2004;
(v) that in respect of imports made after the discharge of export obligation in
full, and if facility under rule 18 or sub-rule (2) of rule 19 of the Central
Excise Rules, 2002 or of CENVAT credit under CENVAT Credit Rules, 2004 has not
been availed and the importer furnishes proof to this effect to the satisfaction
of the Deputy Commissioner of Customs or the Assistant Commissioner of Customs
as the case may be, then the imported materials may be cleared without
furnishing a bond specified in condition (iv);
(vi) that the imports and exports are undertaken through the seaports, airports
or through the inland container depots or through the land customs stations as
mentioned in the Table 2 annexed to the Notification No.16/ 2015- Customs dated
01.04.2015 or a Special Economic Zone notified under section 4 of the Special
Economic Zones Act, 2005 (28 of 2005):
Provided that the Commissioner of Customs may, by special order or a public
notice and subject to such conditions as may be specified by him, permit import
and export through any other sea-port, airport, inland container depot or
through a land customs station within his jurisdiction;
(vii) that sourcing of the imported materials from Private Bonded Warehouses set
up under paragraph 2.36 of the Foreign Trade Policy would be allowed;
(viii) that the export obligation as specified in the said authorisation (both
in value and quantity terms) is discharged within the period specified in the
said authorisation or within such extended period as may be granted by the
Regional Authority by exporting resultant products, manufactured in India which
are specified in the said authorisation and in respect of which facility under
rule 18 or sub-rule (2) of rule 19 of the Central Excise Rules, 2002 has not
been availed:
Provided that an Advance Intermediate authorisation holder shall discharge
export obligation by supplying the resultant products to exporter in terms of
paragraph 4.05 (c) (ii) of the Foreign Trade Policy;
(ix) that the importer produces evidence of discharge of export obligation to
the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner
of Customs, as the case may be, within a period of sixty days of the expiry of
period allowed for fulfillment of export obligation, or within such extended
period as the said Deputy Commissioner of Customs or Assistant Commissioner of
Customs, as the case may be, may allow;
(x) that the exempt materials shall not be disposed of or utilized in any manner
except for discharge of export obligation or for replenishment of such materials
and the materials so replenished shall not be sold or transferred to any other
person:
Provided that the said materials may be transferred to a job worker for
processing subject to complying with the conditions prescribed in the relevant
Central Excise notifications permitting transfer of materials for job work:
Provided further that no such transfer for purposes of job work shall be
effected to the units located in areas eligible for area based exemptions from
the levy of excise duty in terms of notification Nos. 32/1999-Central Excise
dated 08.07.1999, 33/1999-Central Excise dated 08.07.1999, 39/2001- Central
Excise dated 31.07.2001, 56/2002- Central Excise dated 14.11.2002, 57/2002-
Central Excise dated 14.11.2002, 49/2003- Central Excise dated 10.06.2003,
50/2003- Central Excise dated 10.06.2003, 56/2003- Central Excise dated
25.06.2003, 71/03- Central Excise dated 09.09.2003, 8/2004- Central Excise dated
21.01.2004 and 20/2007- Central Excise dated 25.04.2007;
(xi) that in relation to the said authorisation issued to a manufacturer
exporter or merchant exporter, any bond required to be executed by the importer
in terms of this notification shall be executed jointly by the manufacturer
exporter or merchant exporter as the case may be and the supporting manufacturer
binding themselves jointly and severally to comply with the conditions specified
in this notification;
(xii) that the exemption from safeguard duty, transitional product specific
safeguard duty and anti-dumping duty shall not be available in respect of
material imported-
(a) for supply of goods against Advance Authorisation or Advance Authorisation
for annual requirement or Duty Free Import Authorisation;
(b) for supply of goods to Export Oriented Unit or Software Technology Parks or
Electronic Hardware Technology Parks or Biotechnology Parks;
(c) for supply of goods against Export Promotion Capital Good (EPCG)
Authorisation;
(d) for supply of marine freight containers by 100% Export Orients Unit
(domestic freight container - manufacturers) where said containers are exported
out of India within 6 months or such further period as permitted by Deputy
Commissioner of Customs or Assistant Commissioner of Customs, as the case may
be; and
(e) for supply for official use or to the projects funded by UN or International
Organisation in terms of Notification No. 108/95-Central Excise dated
28.08.1995.
Explanation.- For the purposes of this notification,-
(I) “Dutiable goods” means excisable goods which are not exempt from central
excise duty and which are not chargeable to ‘nil’ rate of central excise duty;
(II) "Foreign Trade Policy" means the Foreign Trade Policy, 2015-2020, published
by the Government of India in the Ministry of Commerce and Industry vide
notification No. 01/2015-2020, dated the 1st April 2015 as amended from time to
time;
(III) “Handbook of Procedures” means the Handbook of Procedures 2015-20
published by the Government of India in the Ministry of Commerce and Industry
vide public notice No. 01/2015-2020, dated the 1st April 2015 as amended from
time to time;
(IV) “Manufacture” has the same meaning as assigned to it in paragraph 9.31 of
the Foreign Trade Policy;
(V) “Materials” means
(a) raw materials, components, intermediates, consumables, catalysts and parts
which are required for manufacture of resultant product;
(b) mandatory spares within a value limit of ten per cent. of the value of the
authorisation which are required to be exported along with the resultant
product;
(c) fuel required for manufacture of resultant product;
(d) packaging materials required for packing of resultant product;
(VI) “Regional 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 authorized by him to grant an authorisation under the
said Act;
(VII) “Specified Chartered Accountant” means a statutory auditor or a Chartered
Accountant who certifies the importer’s financial records under the Companies
Act, 2013 (18 of 2013) or the Income Tax Act, 1961 (43 of 1961) or the Sales Tax
or the Value Added Tax Act of the State Government.
[F.No.605/55/2014-DBK]
(Sanjay Kumar)
Under Secretary to the Government of India
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