Circular No. 46 dated 30^th August 1996

I am directed to say that the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996 which shall come into effect on 1st September, 1996 have been modified slightly vide Notification No. 43/ 96-Customs (N.T.) dated 30th August, 1996.

2.      The modifications made are -

(a)     It has been provided that these rules shall apply only to such of the exemption notifications issued under section 25(1) of the Customs Act, which specifically provide for their applicability;

(b)       The importer - manufacturer shall be required to execute a bond without surety or security;

(c)     A provision for intimation to the jurisdictional Superintendent of Central Excise regarding the receipt of the imported goods in the factory of the importer- manufacturer has been made.

3.      Consequently, notification No. 61/ 96-Customs and 62/ 96-Customs, both dated 30th August, 1996 have been issued amending the relevant notifications in respect of which it is intended that the benefit of exemption or concession in customs duty shall be subject to the observance of the procedure under the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996. Both these notifications take effect from 1st September 1996. For ready reference, a list of exemption where the said rules shall apply is enclosed as Annex I.

4.      It may be noted that in the case of Alatheon and copper wire for the manufacture of Copper - T Contraceptives (S.No. 77 of Not. No. 36/ 96-Cus), the certificate from the Ministry of Health and Family Welfare has been dispensed with. In the case of Not. Nos. 63/ 95-Cus and 64/ 95-Cus, the rules have been made applicable to goods imported under both list A and B.

5.      For the sake of uniformity, standard from of registration certificate, etc. have been designed which may be followed by the Commissionerate. These standard forms are:

(a)       Registration certificate (Annex II);

(b)       Manufacturer�s application and Assistant Commissioner of Central Excise's countersignature (Annex III);

(c)       Bond to be executed by manufacturer (Annex IV);

(d)       Information of the receipt of imported goods (Annex V)

6.      As far as the registration certificate (Annex II) is concerned, the original should be for the holder and duplicate for the Range Superintendent. The triplication may be the Assistant Commissioner of Central Excise's office copy. The importer- manufacturer may request for the registration certificate by way of a simple letter, on his letterhead, giving the necessary details, which are to be incorporated in the registration certificate.

7.      It may be mentioned that the importer manufacturer would have to make an application (Annex III) every time he wishes to make the import. The application may be filled by the holder of the registration certificate in quadruplicate and submitted to the Range Superintendent who shall forward them after verification to the Assistant Commissioner of Central Excise. After the Assistant Commissioner of Central Excise endorses the necessary details thereon, the original should be sent to Assistant Commissioner of Customs, duplicate to range Superintendent, triplicate may be retained by Assistant Commissioner of Central Excise as office copy and quadruplicate may be returned to registration certificate holder. The Assistant Commissioners of Central Excise and Superintendents of Central Excise may be instructed to deal with the applications submitted by the importer manufacturer expeditiously and to ensure that the necessary endorsements for availing the exemption are issued without any delay. They should be asked to deal with and dispose of the applications the same day it is received in their office.

8.      The bond amount 9 Annex IV) should be for the differential duty (total customs duties but for the concession less the total duties in terms of the concession). A running bond account could be maintained in case the importer- manufacturer desires. In such cases, the bond amount can be arrived at for estimated imports over a period of a year.

9.      The aforesaid rules provide for a simple account (bill of entry wise) to be maintained by the importer- manufacturer. The basic features of this account are mentioned in rule 7. No specific format of such account is being prescribed. The accounts may be checked quarterly and the Assistant Commissioner of Central excise should satisfy him through this and other records that the imported goods have been appropriately used. In case of recovery of any duty of customs on account of misuse of the concession or for any other reason, necessary action to recover the customs duty and to adjudicate the cases has to be taken by the Assistant Commissioner of Central Excise in his capacity as the Assistant Commissioner of Customs.

10.    While the importer manufacturer has to inform the Range Superintendent of the receipt of the imported goods within 2 days of the receipt (excluding holidays), occasional failure to do so in exactly 2 days should alone not be a cause of issuing show cause notices to the manufacturer. Once the intimation has been received, the Central Excise officers may physically verify the receipt but only selectively. It may be borne in mind the in case there is a short receipt at the factory vis-�-vis the quantity assessed/ cleared under the Bill of Entry, necessary action to recover the duty should invariably be taken.

11.    The officers at the port import, where clearance of the imported goods shall be made, shall also ensure that the relevant documents and particulars required to b forwarded by them under rule 5(2) have actually been received by the Assistant Commissioner of Central Excise concerned. There should not be any delay on this account.

12.    The above changes may be given wide publicity through issue of public/ trade notices, at the Customs Houses and in the Central Excise Commissionerate, so that the trade and industry are informed of these changes in order that there is a smooth transition. Public/ trade notices may be issued immediately on receipt of these instructions.

13.    In order that during first two weeks of the implementation of these rules there is no dislocation of import plans and manufacturing, Commissioners may ensure that the non-fulfilment of procedural aspects alone like non-submission of application in standard form (Annexure III) on part of the concerned importer manufacturers do not come in the way of the availment of the duty concessions.

14.    In case any procedural problems are faced by the Assistant Commissioner in implementing these rules, guidance may be given by the Commissioners. If necessary, a reference may be made to the Board for any clarification.

ANNEXURE - I

Broad description of the exemption Notification No. 36/ 96-Cus

1.      Petroleum oils, bitumen, asphalt, etc. for the manufacture of fertilisers. Ref: S.No. 32 of Ntfn,

2.      Silver powder suspensions, silicone resin and silicon rubber for the manufacturer of solar cells of solar cell modules. Ref: S.No. 66 of Ntfn,

3.      Alatheon and copper wire, for manufacture of copper - T Contraceptives. Ref: S.No. 77 of Ntfn,

4.      Wood pulp for manufacture of newsprint. Ref: S.No. 80 of Ntfn,

5.      Glass fibre sewing thread and glass fibre filter cloth for manufacture of goods intended for pollution control purposes. Ref: S.No. 103 of Ntfn,

6.      Horological raw materials for manufacture of mechanical or quartz analogue wristwatches. Ref: S.No. 122 of Ntfn,

7.      Silicon for manufacture of un-diffused silicon wafers, un-diffused silicon wafers for manufacture of solar cells or solar cells modules, modules and photovoltaic systems for the manufacture of photovoltaic application. Ref: S.No. 152 of Ntfn,

8.      Specified parts for manufacture of LCVs of payload upto 4000 kg. S. No. 172 of Ntfn,

9.      Raw materials for manufacture of telecom grade cables. Ref: S.No. 182 of Ntfn,

10.    Optical fibres for manufacture of telecom grade optical fibre cable. Ref: S.No. 183 of Ntfn,

11.    Parts for manufacture of hearing aids. S.No. 192 of Ntfn,

12.    Parts for manufacture of Braille watches. Ref: S.No. 198 of Ntfn,

13.    Components for manufacture of wristwatches. Ref: S.No. 199 of Ntfn,

14.    Components for manufacture of electronic modules of wristwatches. Ref: S.No. 200 of Ntfn,

Notification No. 63/ 95-cus

15.    Raw   materials, parts and components for manufacture of specified items of the electronic industry. (List A and B)

Notification No. 64/ 95-cus

16.    Raw materials, parts and components for manufacture of specified items of the electron industry. (List A and B)

ANNEXURE - II

Registration Certificate under the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996

S. No.: ______________ of 19 _________

F.No.:
Division:
Commissionerate:

1.      _______________ of ________________ having undertaken to observe all the provisions of the Customs Act, 1962 (52 of 1962) and rules and regulations made thereunder, the Central Excise and Salt Act, 1944 (1 of 1944) and rules and regulations made thereunder and relevant notifications issued under section 25(1) of the Customs Act, is hereby certified to have been registered with the Central Excise and Customs Department for the purpose of the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996.

2.      This certificate is valid only for the premises and the purposes specified in the Schedule below; it is not transferable and it shall remain valid till the holder carries on the activity for the purpose of which this certificate has been issued or till the holder surrenders this certificate, whichever is earlier.

Schedule

1.      Name and address of the importer manufacture to whom the registration certificate is granted              :

2.      Nature and description of the imported goods normally used in the manufacture of excisable goods      :

3.      Nature and description of the excisable goods manufactured from the imported goods                         :

Place: _________

Date: __________                                                  

Signature of Assistant Commissioner with name, stamp and seal _______________________

Copy to; Range Superintendent

Place: _________

Date: __________                                                  

Signature of Assistant Commissioner with name, stamp and seal _______________________

ANNEXURE -III

Application under the Customs (Import of Goods at Concessional Rate of Duty for manufacture of Excisable Goods) Rules, 1996

(To be filled by the holder of the registration certificate. Original with 3 copies to be submitted through the Range Superintendent)

To,

Assistant Commissioner of Central Excise ____________________

We M/s __________________ (name and address of the factory) __________________ are registered under the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996 vide registration certificate S. No. __________________ of 19 _________________ dated _____________ issued under F.No. ___________ Vide No. ___________ of notification No. _____________ Customs, dated the ___________ issued under section 25(1) of the Customs Act, 1992 read with the relevant provisions of the Customs Act, 1962 the Customs Tariff Act, 1975 (51 of 1975) and other laws for the time being in force the goods namely ___________________ imported for the manufacture of _________________ attract the following Customs duty (ies) (specify rates):

Basic duty

Special duty

Additional duty (ies) Other Customs Duty (ies)

We undertake of follow the customs (Import of goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996 as required by the above notification. The estimated quantity and value of such imported goods we wish to obtain for the manufacture of the aforesaid goods is ______________ (Specified quantity and value) and we intend to import them at ______________ (specify port of Import) for uses at our factory premises at _______________.

The estimated duty leviable on the imported goods but for the exemption under the above notification is Rs.  ________________ only (attach calculation sheet).

The estimated total duty on the imported goods payable by us at the time of importation under the above notifications in Rs. _____________ only (attach calculation sheet).

We also hereby undertake

(a)     to use the said imported _________________ (specify imported goods) for the manufacture of __________________ (specify excisable goods) and to follow any other condition that the said notification imposes on us; and

(b)     to pay no demand, in the event of failure to comply with (a) above, an amount equal to the difference between the duty leviable on such quantity of the imported goods but for the exemption under the aforesaid notification and the paid by us at time of importation.

We have also executed the necessary bond dated ________________ (enclose the bond executed) for your acceptance. It is requested that the application may kindly be forwarded, duly endorsed, to the Assistant Commissioner of Customs, Group ______________ (specify the appraising group and port of import).

Date: _____________                           

Place: ____________

Signature and stamp of authorised signatory, with name and address of the factory: __________________

(Endorsement and countersignature of the ACCE on the application)

It is hereby certified that M/ s ________________ having their factory at __________________ are registered in this office under the Customs (Import of goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996 vide S.No. ____________ of 19_______ dated __________ in F.No___________. They have executed the bond as required by the said rules for Rs____________ only, which has been accepted on behalf of the President of India by the undersigned and entered at S. No. ______________ dated  ______________ of bond registered.

F.No.: ____________________

Place: ______________                      

Date: _______________

Signature of Assistant Commissioner with date name, stamp and seal ______________________

To,

The Assistant Commissioner of Customs,

Group ___________________________ (Specify appraising group and port of import)

ANNEXURE -IV

Bond under the Customs (Import of Goods at Concessional Rate of duty for manufacture of Excisable goods) Rules, 1996

(Delete words wherever not applicable)

I/ we _____________ of  _____________ (hereinafter called "the obligator(s)" am/ are held and firmly bound to the President of India (hereinafter called the "President)" in the sum of Rs._______________ only to be paid to the President for which payment will and truly to be made, I/ We jointly and severally bind myself/ ourselves and my/ our respective heirs executors, administrators, legal representatives/ successors and assigns by these presents.

Dated this ______________ day of  _________________

Whereas the above bounden obligor having been permitted by the Assistant Commissioner of Central Excise at_____________ (hereinafter called "the Assistant Commissioner") to obtain a quantity of _________________ (specify quantity and units) of _____________ (specify imported goods) for use in has factory at ______________ for use in the manufacture of _____________ specify excisable commodity (ies)], and in the manner specified in his application dated ________________ in terms of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.____________ Customs dated ______________ (hereinafter referred to as "the notification").

The condition of this bond is that if the obligor and his representative shall observe all the provisions of the notification and the Customs (Import of goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules 1996 and relevant provisions of the Customs Act, 1962,(52 of 1962) the Central Excises and Salt Act, 1944 (1 to 1944) and Central Excise Rules, 1944 in respect of the aforesaid permission granted by the ACCE;

And if all, dues (lawful charges), which shall be demandable on the imported goods obtained by the obligor, be duly paid into the treasury to the account of the Assistant Commissioner within ten days of the date of demand thereof being made in writing;

This obligation shall be void, otherwise and on breach or failure in the performance of any part of this condition, the same shall be in full force and virtue;

And the President shall, at his option be competent to make goods all the loss and damages by endorsing his rights under the above written bond;

I/ we further declare that this bond is given under the orders of the Central Government in the performance of an act in which the public are interested;

In these presents the words imposing singular only shall also include the plural and vice versa if the context so requires;

In witness thereof these presents have been signed the day herein before written by the obligor(s).

Accepted for and on behalf of the President of India

Signature and date:

Name: _________________________

Designation with seal _____________

ANNEXURE -V

Information regarding receipt of imported goods under the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996

To

The Superintendent of Central Excise

Range _______________________

Sir,

I/ We declare that the under mentioned consignment of imported goods cleared from _____________________ (specify port) Under S. No. ___________________ Customs dated the  ___________________ has been received by us at our factory premises located at ___________________ on __________________ day of ___________________ at _____________________ hrs.

This consignment is in pursuance of the Assistant Commissioner of Central Excise endorsement and countersignature vide File No. ______________ date _______________ (copy attached) made on our application dated ______________

        I/ we declare that the imported goods received as above are identifiable with the description given in the Bill of Entry to my/ our entire satisfaction and that I/ we have entered the particulars of the imported goods so received in my/ our relevant stock register.