| Date: |
06-07-1995
|
| Notification No: |
Customs Circular No 79/1995
|
| Issuing Authority: |
Indian Customs
|
| Type: |
Circular
|
| File No: |
|
| Subject: |
Clarification regarding-Duty free imports by United Nations and its agencies
|
|
Clarification regarding-Duty free imports by United Nations and its
agencies
Circular No. 79 dated 6th July
1995
I am directed to
say that in the context of a reference from the Department of Economic Affairs
the Board has examined the customs duty exemptions available to the United
Nations and its agencies in terms of the United Nations (Privileges and
Immunities) Act, 1947 [UN (P&I) Act]. The Board has also examined the
present practice prevailing in the Customs Houses regarding clearances of the
imports by United Nations and its agencies. It has been observed that some of
the Customs Houses are granting customs duty exemptions on imports by the United
Nations for its official use as well as to import by third parties for projects
funded by the United Nations on basis of an exemption certificate issued by the
Ministry of External Affairs. A doubt has arisen regarding correctness of this
assessment practice.
2. It
may be noted 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. An extract of the said section is enclosed1.
The implication is that if the import is by the UN agency in its own name and
the goods are meant for its official use, the exemption would be available.
3. At
the same time, it is observed that at times the imports are being made by third
parties on account of a UN agency for a project being funded by the said UN
agencies. Herein it is seen that the import is firstly not by the UN agencies
and also not for its official se. Hence, in this situation the provision of
section 7(b) will not apply and it is the view of the Board that the exemption
from customs duty will not be available to such imports.
4. In view of the
aforestated facts it is desired by the Board that the imports by United Nations
must be examined in the light of the provisions of section 7(b) of the N(P&I)
Act, 1947 and the exemptions from customs duty granted only to such imports
which are directly by the United Nations and for its Official use not with
standing the production of any exemption certificate issued by the Ministry of
External Affairs. The Ministry of External Affairs is being advised to issue
certificates only in the cases of eligible categories of imports. Hence, while
it is expected that the Ministry will issue certificates correctly for eligible
imports, it is the responsibility of the customs to ensure the correctness of
the grant of duty exemptions in terms of the UN (P&I) Act, 1947.
|
|
|