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Regarding duty free clearance of goods imported for display or use at
fair, exhibition, etc. - Submission of bond & bank guarantee
Circular No. 55 dated 3rd
August 1998
I am directed to refer to customs notification No.
3/89-Cus., dated 9. 1. 89 as amended from time to time, which provides for duty
free clearance of goods imported for display or use at fair, exhibition,
demonstration, seminar, etc. on the basis of a reference received from M/s.
India Trade Promotion Organisation, a study was conducted to ascertain the
practice of clearance of such goods at major Customs Houses.
2.
It has been observed that the Customs Houses insist for Bank Guarantee as
follows �
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S. No.
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Name of the Custom House
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Extent of B. G.
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(i)
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Delhi
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115% of value in case of OGL goods and 150% of value
in case of restricted goods.
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(ii)
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Calcutta
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No Bank Guarantee
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(iii)
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Mumbai
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150% of value.
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(iv)
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Chennai
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100% of value.
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(v)
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Sahar Airport, Mumbai
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No import noticed.
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3. Some of the
Custom Houses insist for Bank Guarantee for 150% of value, which is quite on
higher side. The matter was examined by Board. In order to maintain uniformity
in practice of assessment & to safeguard government revenue in such cases
the clearances of goods imported for fair, exhibition etc. under
Notification 3/89-Cus., dated 9.1.89 may be allowed after accepting re - export
bond for 150% of the value of the goods to be backed by Bank Guarantee for 100%
of the duty amount.
4. The above
instructions are applicable only for the goods imported for display at fairs,
exhibition, demonstration or similar event, which is duly approved and certified
by an Under Secretary in the Ministry of Commerce of an officer of India Trade
Promotion Organisation duly, authorised by its Chairman in this behalf.
5. Instances have
come to notice where equipment by foreign vendors have been imported to solicit
business from Indian Companies and such goods have been allowed clearance
duty free under this notification. The notification 3/ 89 is however not
applicable for the goods imported for display at exhibitions, fairs, or display
to individual customers etc. organised for private purposes in shops or business
premises etc. with a view to promote the sale of foreign machinery and goods
even if recommended by ITPO & some Government Departments. In such cases the
importers should pay full customs duty at the time of clearance & can claim
drawback under section 74 of the Customs Act, 1962 at the time of the re-export
of the goods.
6.
The receipt of this circular may kindly be acknowledged. The departmental
officers and the trade may be informed suitably.
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