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Imports by Gem and Jewellery units of Cochin Export Processing Zone
Notification
No. 256 dated 2nd July 1998 (As amended by notification
nos. 232/88, 246/90, 147/91, 11/92, 155/92, 7/93, 7/93, 145/43)
The
Central Government exempts the goods specified in the Annexure to this
notification (hereinafter referred to as the said goods), when imported into
India by the gem and jewellery units set up in Cochin Export Processing Zone at
Cochin (hereinafter referred to as the said Zone) under the Scheme, for the
manufacture of jewellery in free trade zones notified by the Government of
India, in the Ministry of Commerce, in Public Notice No. P.N.59/ ITC (PN) 1984,
dated the 10th October, 84 as Annexure V to Appendix 22 of the Import
and Export Policy, 1984-85 from the whole of the duty of customs leviable
thereon under the First Schedule to the Customs Tariff Act, 1975(51 of 1975),
and from the whole of the additional duty, if any, leviable thereon under
section 3 of the said Customs Tariff Act, Subject to the conditions, namely: -
(i)
the importer has been authorised to establish manufacturing unit or units
in the said Zone;
(ii)
the importer is covered, wherever required, by a general or specific
permit issued by the Reserve Bank of India;
(iii)
the importer has been granted necessary licence, for the import of the
said goods;
(iv)
the importer shall not import gold of 0.999 fineness and purity except
through the State Bank of India or any other Agency designated for the purpose
by the Government of India in the Ministry of Commerce and the identification
mark on the gold of such fineness has been stamped by the Indian Government
Mint, Bombay;
(v)
the importer satisfies the Assistant Collector of Customs that the said
goods so imported shall be used in the manufacture or packaging of gem and
jewellery for export out of India, or for, the promotion of exports of gem and
jewellery;
(vi)
the importer agrees to execute a bond in such form and for such sum as
may be specified by the Development Commissioner of the said Zone binding
himself to fulfil the export obligation and to fulfil, inter-alia, the
conditions stipulated in this notification;
(vii)
the importer agrees to bring the goods into the said Zone and use them
within the said Zone in the manufacture or packaging of gem and jewellery for
export out of India or for the promotion of such export of gem and jewellery;
(viii)
save as otherwise provided in condition (xiiia), the importer agrees to
export out of India all goods manufactured or packaged within the said Zone;
(ix)
the importer shall maintain a proper account of import, consumption and
utilisation of the goods and of exports made by him and shall submit such
account periodically to the Assistant Collector of Customs, in such form and in
such manner, as may be laid down by the Collector of Customs;
(x)
gem and jewellery, including the rejects, manufactured in the said Zone,
shall not be brought to any other place in India(that is to say the Domestic
Tariff Area) for whatever purpose;
Provided
that scrap, dust or sweepings of gold arising in the manufacturing process may
be forwarded to the government Mint by the importer for conversion into standard
gold bars and return to the said zone in accordance with the procedure specified
by the Collector of Customs in this regard;
(xi)
in the event of such a Unit ceasing its operation, gold, other precious
metals, alloys, gem and material for the manufacture of jewellery shall be
handed over to the Agency nominated
in this behalf by the Government of India in the Ministry of Commerce;
(xii)
the Assistant Collector of Customs may allow, subject to fulfillment of
such conditions as he may specify, the loss of percentage of gold specified in
column (2) of the Table given below during the manufacture of jewellery of the
description specified in the corresponding entry in column (1) of the said
Table.
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Description
of Jewellery
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Percentage
of gold wastages
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(1)
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(2)
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A.
Plain gold jewellery articles un-studded with minimum value addition of
10% or more (on gold content plus wastage)
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2%
of gold content in jewellery by weight
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B.
Studded gold jewellery and articles with value addition (on gold content
plus wastage) as follows: -
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(i) Value addition upto 25%
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Upto
3 %
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(ii) Value addition above 25%
and upto 40%
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Upto
5 %
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(iii) Value addition above 40%
and 50%
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Upto
7%
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(vi) Value addition over 50%
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Upto
10%
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C.
Mountings and findings
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3%
of gold content by weight
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(xiii)
export under this notification shall be allowed only by air freight
through the Trivandrum Airport;
(xiiia)
gem and jewellery manufactured in the said zone may be supplied to the
retail outlets or show rooms set up in the departure lounge at international
airports at Delhi and Bombay in accordance with para 16 of the Import and Export
Policy (April, 1990-March, 1993), for sale to a tourist as defined in the
Tourists Baggage Rules, 1978, leaving India, in accordance with the procedure
specified by the Collector of Customs;
(xiv)
the importer shall pay, on demand, an amount equal to the duty leviable:
(a)
on goods which are capital goods as are not proved to the satisfaction of the
Assistant Collector of Customs to have been: -
(i)
installed or otherwise used within the said Zone or re-exported within a period
of one year from the date of importation thereof or within such extended period
as the Assistant Collector of Customs may, on being satisfied that there is
sufficient cause for not using them within the said Zone or for not re-exporting
them within the said period, allow;
(ii)
retained within the said Zone after installation for use inside the said Zone;
(b)
on goods, other than capital goods as are not proved to the satisfaction of the
Assistant Collector of Customs to have been:
(i)
used in connection with the manufacture or packaging of gem and jewellery within
the said Zone for export out of India or for the promotion of export of such
goods or re-exported within a period of one year from the date of importation
thereof or within such extended period as the Assistant Collector of Customs
may, on being satisfied that there is sufficient cause for not using them or for
not re-exporting them within the said period, allow:
(ii)
retained within the said Zone in connection
with the promotion of export of gem and jewellery.
2.
Notwithstanding anything contained in paragraph 1, of this notification,
the exemption contained therein shall also apply to silver and gold falling
under Heading Nos. 71.06 and 71.08, respectively of the First Schedule to the
Customs Tariff Act, 1975(51 of 1975) imported by the Minerals and Metals Trading
Corporation of India Limited and the State Bank of India for being supplied to
the Gem and Jewellery units in the said Zone under the Scheme for Export of
gold/silver and platinum jewellery and articles from Export Processing Zone(EPZs)
and from Export Oriented Unit(EOU) Complexes specified in paragraph 88 of the
Export and Import Policy, 1 April, 1992-31 March, 1997, read with Chapter VIII
of the Handbook of Procedures, Volume I, 1 April, 1992-31 March, 1997, of the
Government of India in the Ministry of Commerce:
Provided
that where the gold or silver is imported on behalf of a jewellery unit, the
exemption shall apply only if-
(a)
the procedure as may be specified by the Collector of Customs is followed
by such a jewellery unit; and
(b)
the conditions stipulated in paragraph 1 of this notification are
complied with by such a jewellery unit.
Explanation:
For the purposes of this notification, the Cochin Export Processing Zone shall
comprise of the places enclosed by the boundaries as specified in paragraph 2
of the notification of the Government of India in the Ministry of Finance
(Department of Revenue) No.340-Customs/86 dated the 13.6.86 as amended from
time to time.
ANNEXURE
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Sl.
No.
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Description
of goods
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(1)
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(2)
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1.
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Capital
goods
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2.
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Raw
Materials
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3.
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Components
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4.
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Spare
parts of machinery
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5.
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Consumables
required for manufacture of goods
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6.
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Tools,
Jigs, Gauges, Fixtures, Moulds, Dies, Instruments and Accessories
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7.
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Packaging
materials
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8.
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Prototypes
and technical samples
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9.
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Goods
re-imported within one year from the date of exportation from the said
Zone due to the failure of the foreign buyer to take delivery
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10.
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Goods,
re-imported within one year from the date of exportation from the Zone,
for re-export after repairs or re-conditioning
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11.
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Office
equipments and spares and consumable thereof (as permissible for import
under the Open General Licence Order No. 20/90-93, dated the 30th
March, 1990(as amended) and issued under section 3 of the Imports and
Export (Control) Act, 1947(18 of 1947) and to such extent as may be
allowed by the Board of Approval)
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12.
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Drawings,
blue-prints and charts
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