Notification No. 227 dated 30^th November 1979 (As amended by notification nos. 239/79, 183/83, 224/83, 329/86, 403/86, 130/88, 232/88, 112/90, 212/92, 287/92, 154/93, 111/94)

Goods specified in the Annexure to this notification (hereinafter referred to as the goods) when imported into India for use within the Santa Cruz Electronics Export Processing Zone (hereinafter referred to as the Zone) comprising of plot No. F-1 in the Maharashtra Industrial Development Corporation�s Marel Industrial Area and enclosed by the boundaries specified in paragraph 2, in connection with the manufacture or packaging of electronic goods for export out of India, or with the promotion of such exports of electronic goods are exempted from the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and the additional duty, if any, leviable thereon under section 3 of the Customs Tariff  Act, subject to the following conditions, namely:  -

(1)      the importer has been authorised to establish manufacturing unit or units in the Zone;

(2)      the importer has been granted necessary licence for the import of goods;

(3)      the import satisfies the Assistant Collector of Customs that the goods so imported will be used in connection with the manufacture or packaging of electronic goods for export out of India or with the promotion of such exports of electronic 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 in this notification, and in or under the Import & Export Policy for April 1985-March, 1988, notified by the Government of India in the Ministry of Commerce Public Notice No. 1-ITC(PN)/85-88, dated the 12^th April, 1985 (hereinafter in this notification referred to as the said Import & Export Policy), as amended from time to time;

(5)      the importer agrees:-

(a) to bring the goods into the Zone and use them within the Zone in connection with the manufacture or packaging of electronic goods for export out of India or with the promotion of such exports of electronic goods;

(b) to export out of India, all electronic goods so manufactured or packaged or to use such goods for imparting training to workers or to sell such goods (or packages) within the said Zone, as the case may be;

(c) to export or dispose off in the manner approved by the Collector of Customs all remnants arising out of such manufacture of packaging;

(6)      the importer shall maintain a proper account of import, consumption and utilization of  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;

(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 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 manufacture or packaging of electronic 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 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 promotion of exports of electronic goods;

(c) on electronic goods so manufactured or packaged as have not been exported out of India, and on unused goods, including those capable of 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 may, on being satisfied that there is sufficient cause for not exporting such goods within the said period, allow;

(8)      the Assistant Collector may, subject to such conditions and limitations as may be imposed by him, permit any goods imported or electronic goods manufactured or packaged therefrom to be taken outside the Zone temporarily without payment of duty for repairs, processing or display, and the importer shall be bound to comply with such conditions and limitations;

(8A)    the Assistant Collector may, subject to such conditions as may be prescribed by him, allow goods(including goods manufactured) in the Zone to be supplied/transferred from a 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 para 4.13 of the �Hand  Book of Procedures� (April 1990-March 1993) issued by the Government of India, Ministry of Commerce.

(8B)    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 of the Zone;

(9)      subject to the satisfaction of the Assistant 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 manufacture of electronic goods or packaging within the Zone;

(c) scrap or waste material arising in the course of such manufacture 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 electronic goods manufactured or packaged in the Zone which are allowed by the proper officer 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 electronic 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 prescribed by the Collector of Customs for ensuring that the goods so sold will be used in connection with the manufacture or packaging of electronic goods for export out of India or with the promotion of such exports of electronic goods.

(g) goods manufactured in the Zone and which are allowed to be taken outside the Zone, temporarily for repairs, processing or display.

(h) any variations between the book balance and ascertained balance of the goods as is explained to the satisfaction of the proper officer.

(i) goods (including goods manufactured) in the Zone and which are allowed to be supplied/transferred from a unit in the Zone to a unit in another Zone or to a 100% Export Oriented Unit.

(j) goods which are allowed to be re-exported from a unit in the zone.

1A.   Notwithstanding anything contained in this notification, 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 said Import & Export Policy, as amended from time to time, and subject to such other limitations and conditions as may be specified under paragraph 2 of the notification of the Government of India in the Ministry of Finance (Department of Revenue and Insurance) No.186/75-Central Excises, dated the 21^st August, 1975, as amended from time to time 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);

1B.   Without prejudice to any other provisions contained in this notification, where it is shown to the satisfaction to 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, polyethylene bags of a 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 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.

1C.   Notwithstanding anything contained in this notification, 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 purposes of display as samples subject to such conditions and restrictions as may be specified by the Development Commissioner of the Zone 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 for April, 1985-March, 1988 Volume (1) (published with the Public Notice of the Government of India in the Ministry of Commerce I-ITC (PN) 85-88 dated 12^th April 1985, as amended from time to time, 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 of the excisable goods concerned.

1D.   Notwithstanding anything contained in paragraph 1, 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-

        (a) the conditions stipulated in this notification are complied with by such software development unit; and

        (b) the procedure specified by the Collector of Customs is followed.

2.     For the purpose of this notification, the Zone shall comprise of the places bearing Plot No. F.1 in the Marel Industrial Area of Maharashtra Industrial Development Corporation within the village limits of Parjapur and Vyaravli, Taluka Andheri, and now in the Registration sub-district and district of Bombay Suburban, containing by admeasurements 3,75,013 sq. metres or thereabouts and bounded -on or towards the North, by Road and Aarey Milk Colony land, on or towards the South, by road, on or towards the East, by pipe line and Aarey Milk Colony land and on or towards the West, by Road.

ANNEXURE