| Date: |
07-07-1997
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| Notification No: |
Customs Circular No 24/1997
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| Issuing Authority: |
Indian Customs
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| Type: |
Circular
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| File No: |
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| Subject: |
Imports by 100% Export Oriented Units/ Software Technology Parks unit for training purpose
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Imports by 100% Export Oriented Units/ Software Technology Parks unit for
training purpose
Circular No. 24 dated 7th July 1997
I am directed to
say that the Board is in receipt of a reference from the Department of
Electronics that commercial training on computers installed in the bonded
premises of STP units be allowed. The EXIM Policy as also provides (paragraph
9.15 (f)) that software units will be allowed to use the computers system for
training purposes (including commercial training) subject to the condition that
no computer terminal shall be installed outside the bonded premises for the
purpose.
2. The
matter has been examined by the Board. It is noted that activity of imparting
commercial training in an STP unit is totally different from permitting
manufacture of goods for domestic market by an EOU. It has also been noted that
STP units are set up with the primary intention of developing and exporting
software but if they in addition use the equipment for training of the personnel
of the units there should be no objection. The same principle can equally be
applied to training of persons other than employees of the concerned unit.
3. In
view of the aforesaid facts, I am directed to clarify that the STP units should
be permitted by the Customs authorities in terms of the relevant provisions even
if later on when units have completed their Export Obligations, the equipment's
are used for training including commercial training purpose, provided the
training is conducted within the bonded premises.
4. The
Board's instruction contained in Circular No. 37/ 95 dated 18th April 1995
issued from F.No. 305/ 7/ 95- FTT deemed to have been modified accordingly.
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