|
Imports by units situated in Visakhapatnam Export Processing Zone
Notification
No. 170 dated 13th September 1993 (As
amended by notification nos. 189/93, 111/94)
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 goods
specified in the annexure to this notification (hereinafter referred to as
the goods), when imported into India for the production of goods for exports out
of India or for being used in connection with the production or packaging of
goods for exports out of India or for promotion of such exports by units within
the Visakhapatnam Export Processing Zone (hereinafter referred to as the Zone)
comprising of places bearing the survey numbers and enclosed by the boundaries
specified in paragraph 5 from the whole of the duty of customs leviable thereon
under the First Schedule to the Customs Tariff Act, 1975 (51of 1975), and the
additional duty, if any, leviable thereon, under section 3 of the second
mentioned Act, subject to the following conditions, namely: -
(1)
the importer has been authorised to establish the manufacturing unit or
units in the Zone;
(2)
the importer has been granted necessary licence for the import of goods;
(3)
the importer satisfies the Development Commissioner that the goods so
imported will be used in connection with the production or packaging of goods
for export out of India or with the promotion of such exports of goods;
(4)
the importer agrees to execute a bond in such form and for such sum as
has been prescribed by the Development Commissioner of the Zone binding himself
to fulfil the export obligations,
and to fulfil, inter-alia the conditions stipulated in this notification and in
the Export - Import Policy of the Government of India for the Time being in
force;
(5)
the importer agrees:-
(a)
to bring the goods into the Zone and use them within the Zone in connection with
the production or packaging of goods for Export out of India or with the
promotion of such exports of goods;
(b)
to export out of India, all goods so produced or packaged or to use such goods
for imparting training to workers
or to sell such goods within the said Zone, as the case may be;
(c)
to export or dispose of in the manner approved by the Development Commissioner
all remnants arising out of such production or packaging;
(6)
the importer shall maintain a proper account of import, consumption and
utilisation of goods and of exports made by him, and shall submit such account
periodically to the Development Commissioner, in such form and in such manner as
may be laid down by the said Commissioner;
(7)
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 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 Zone or for not re-exporting them
within the said period, allow;
(ii)
retained within the Zone after installation or use inside the 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 production or packaging of goods (within the Zone)
for export out of India or with 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 Zone in connection with the production or packaging of goods
for export out of India or with the promotion of export of goods;
(c)
on goods so produced or packaged as have not been exported out of India and on
unused goods (including empty cones, bobbins or containers, if any, suitable for
repeated use) as have not been exported, within a period of one year from the
date of importation of such goods or within such extended period as the
Assistant Collector of Customs may on being satisfied that there is
sufficient cause for not exporting such goods within the said period,
allow;
(8)
the Collector of Customs, may, subject to such conditions and limitations
as may be imposed by him permit any goods imported or goods produced or packaged
therefrom to be taken outside the Zone temporarily without payment of duty for
repairs, processing or display and the importers shall be bound to comply with
such conditions and limitations;
(9)
the Assistant Collector of Customs may, subject to such conditions as may
be prescribed by him, allow goods (including goods manufactured) in the Zone to
be supplied, transferred from unit
in the Zone to a unit in another Zone or to a 100% Export Oriented Unit subject
to necessary permission granted by the Development Commissioner and satisfaction
of conditions prescribed in the Export Import Policy of the Government of India
for the time being in force;
(10)
the Collector of Customs may, subject to such conditions as may be
prescribed by him, allow a unit to re-export the goods, on the necessary
permission being granted by the Development Commissioner;
(11)
subject to the satisfaction of the Collector of Customs, duty shall not
be leviable in respect of the following goods, namely:-
(a)
goods lost or destroyed not due to any wilful act, negligence or default of the
importer, his employee or agent;
(b)
goods damaged or deteriorated not due to any wilful act, negligence or default
of the importer, his employee or agent and therefore, not suitable for use in
the production of goods or packaging within the Zone;
(c)
scrap or waste material arising in the course of such production, if such scrap
or waste material is within such
limits as may be specified in this behalf by the Central Government, and
destroyed within the Zone;
(d)
samples of goods produced or packaged in the Zone which are allowed by the
Assistant Collector of Customs to be sent for test outside the Zone subject to
such conditions as he may specify in this behalf and which are consumed in the
course of such test;
(e)
samples of goods imported for study or design within the Zone, which, in the
course of manufacturing operations have been broken up and rendered
insignificant in commercial value;
(f)
goods used for imparting training to workers within
the Zone or goods sold by a manufacturer within the Zone to another
manufacturer inside the Zone subject to such conditions, and the execution of
such bonds, as may be specified by the Assistant Collector of Customs for
ensuring that the goods so sold will be used in connection with the production
or packaging of goods for export out of India or with the promotion of such
export of goods;
(g)
goods manufactured in the Zone and which are allowed to be taken outside the
Zone temporarily for repairs, processing or display;
(h)
rags, trimmings and tailor cuttings arising in the course of manufacture of
ready-made garments, when cleared from the Zone, provided that the percentage of
such waste material in the form of rags, trimmings and tailor cuttings does not
exceed the percentage fixed in this regard by the Vishakapatnam Export
Processing Zone Board;
(i)
goods (including goods manufactured) in the Zone and which are allowed to be
supplied/ transferred from a unit
in the Zone in another Zone or to a 100% Export Oriented Unit.
(j)
goods which re-allowed to be re-exported from a unit in the Zone.
2.
The following goods will not be required to be accounted for under
condition (6) of paragraph 1 by way of export, namely;
(a)
(i)
goods damaged or deteriorated not due to any wilful act, negligence, or default
of the importer, his employee or agent and therefore not suitable for use in the
production of goods within the Zone, if destroyed within the Zone or if cleared
from the Zone for use in any other part of India on payment of duty equal to
that leviable on the goods if imported in such condition, or
(ii)
scarp or waste material arising in the course of production of goods within the
Zone, if cleared from the zone for use in any other part of India on payment of
duty of excise leviable under section 3 of the Central Excises and Salt Act,
1944 (1 of 1944) or where such waste and scrap material is not excisable, on
payment of customs duty on imported goods used for the purposes of manufacture
of goods for export in an amount equal to the customs duty leviable on such
waste and scrap material as if imported as such;
(b)
empty cones, bobbins or containers, suitable for repeated use, and
cleared from the Zone for use in any other part of India on payment of the duty
equal to that leviable on such goods at the time of their importation into
India;
(c)
chindies, paper cuttings, and the waste packing material arising in the
course of production of goods within the Zone, when destroyed under the
supervision of an officer of customs in accordance with the procedure specified
in this behalf by the Assistant Collector of Customs of the Zone;
(d)
rags, trimmings and tailor cuttings arising in the course of manufacture
of ready-made garments, when cleared from the Zone.
3.
Without prejudice to any other provisions contained in this notification,
where it is shown to the satisfaction of the Assistant Commissioner of Customs
that any unit in the Zone has been permitted to clear any of the goods outside
the Zone to any other place in India by the Development Commissioner of the
Zone, in accordance with the Export and Import Policy-
(a)
such clearance of machinery, material handling equipments, office
equipments and captive power plants may be allowed on payment of an amount equal
to the customs duty leviable on such goods on the depreciated value thereof and
at the rate in force on the date of payment of such duty;
(b)
such clearance of goods (including empty cones, bobbins, containers,
suitable for repeated use) other than the goods specified in clause (a) may be
allowed on payment to customs duty on the value at the time of import and at
rates in force on the date of payment of such customs duty;
(c)
such clearance of used packing materials such as cardboard boxes,
polythene bags of kind unsuitable for repeated use may be allowed without
payment of any customs duty;
Provided
that the importer shall not be eligible to avail of the exemption applicable to
avail of the exemption applicable to goods falling under heading 98.01 of the
First Schedule to the customs Tariff Act, 1975 (59 of 1975), or the exemption
available to goods imported under the Export Promotion Capital Goods (EPCG)
Scheme in terms of the Export and Import Policy or any other Export Promotion
Schemes.
Explanation:
The depreciation in respect of goods covered by clause (a) shall be allowed
for the period from the date of commencement of commercial production of the
unit or where such goods have been imported after such commencement from the
date such goods have come into use for commercial production, upto the date of
payment of duty.
4.
Notwithstanding anything contained in this notification, -
(a)
the exemption contained herein shall also apply to those goods which on
importation into India are used in connection with the production or manufacture
or packaging of excisable goods produced or manufactured within the Zone and
such excisable goods, even if not exported out of India, but brought to any
other place in India under, and in accordance with, the Export and Import Policy
of the Government of India for the time being in force and subject to the
quantity and such other limitations and conditions as may be specified in this
behalf by the Development Commissioner of the Zone, on payment of duty of excise
leviable on such excisable goods under section 3 of the Central Excises and Salt
Act, 1944 (1 of 1944);
(b)
the Assistant Commissioner of Customs may allow any excisable goods
produced or manufactured or packaged within the Zone, to be taken outside the
Zone to any other place in India for the purpose of display as samples subject
to such conditions and restrictions as may be specified by the Development
Commissioner in this behalf, on payment of the duty of excise leviable on such
excisable goods under Section 3 of the Central Excises and Salt Act, 1944 (1 of
1944):
Provided
that the quantity of the excisable goods, so allowed to be taken outside the
Zone to any other place in India for the purposes of display as samples together
with the quantity of excisable goods allowed to be taken outside the Zone to any
other place in India for the purposes of sale under, and in accordance with, the
Import and Export Policy of the Government of India for the time being in force,
in respect of any unit in the Zone shall not, in any financial year, exceed the
limit specified in the said Import and Export Policy for the purposes of such
sale;
(c)
in the case of units engaged in the development of computer software, the
exemption contained therein shall also apply to goods imported by such unit for
the development of software for export and for providing consultancy services
for development of software �on site� abroad:
Provided
that-
(i)
the conditions stipulated in this notification are complied with by such
software development unit; and
(ii)
the procedure specified by the Commissioner of Customs is followed.
Explanation:
The consultancy fees received by a software development unit in convertible
foreign currencies for consultancy services for development of software �on
site� abroad shall be deemed to be export for the purposes of fulfillment of
export obligation under this notification.
5.
For the purpose of this notification, the Zone shall comprise of the
places bearing the survey numbers and enclosed by the boundaries specified
below: -
Khasra/
Survey Numbers
Duvvada
Village: 138 Part, 139
Part
Kurmannapalem
Village:
1, 3, 4
Jagarajupata
Village of Gajuraka Mandal:
2 Part, 3, 124 34 part, 35, 36, 37, and 38 Part
Vishakapatnam
District of Andhra Pradesh lying at a distance of 254 kms. from the Port of
Vishakapatnam and 15 kms. from the Vishakapatnam Airport; enclosed by 3.0 to
3.20 meter high boundary wall with 1.20 metres arm length Y-angle barbed wire
Northern
Side: Reserve Forest and
Hill Pormiboke
North
East: Phase ll balance
lands of Visakhapatnam Export Processing Zone
South
& South East: Jaggarajupeta Private Dry Lands
Southern
Side:
Howrah-Madras Double Lane Railway Track
South
West & West: Phase l
balance Vishakapatnam Export Processing Zone lands proposed Administrative
building and housing
North
West:
Phase l balance Vishakapatnam Export Processing Zone lands proposed for
residential quarters
ANNEXURE
|
SI.
No.
|
Description
of goods
|
|
(1)
|
(2)
|
|
1.
|
Machinery
|
|
2.
|
Raw
Materials
|
|
3.
|
Components
|
|
4.
|
Spares
Parts of Machinery
|
|
5.
|
Consumables
|
|
6.
|
Packaging
materials
|
|
7.
|
Office
equipments, spares and consumables thereof
|
|
8.
|
Goods
re-imported within one year from the date of exportation from the Zone
due to the failure of the foreign buyer to take delivery
|
|
9.
|
Tools,
Jigs, gauges, fixtures, moulds, dies, instruments and accessories
|
|
10.
|
Prototypes,
technical and trade samples for development and diversification
|
|
11.
|
Drawings,
blue prints and charts
|
|
12.
|
Goods
received for repairs or re-conditioning within three years of the date
of exportation for export after repairs or re-conditioning
|
|
13.
|
Material
handling equipments, namely, forklifts, over-head cranes, mobile cranes,
crawler cranes, hoists and stackers
|
|