Untitled 1
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY,
PART II
SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRYOF FINANCE
(DEPARTMENT OF REVENUE)
NOTIFICATION No. 22/2023 - Customs
New Delhi, the 1st April, 2023.
G.S.R. …….(E) - 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 materials required for the manufacture of the final goods when imported
into India, from whole of the
duty of customs leviable thereon under the First Schedule to the Customs Tariff
Act, 1975 (51 of 1975)
(hereinafter referred to as Customs Tariff Act) and from the whole of the
additional duty leviable thereon under
sub-sections (1), (3) and (5) of section 3, safeguard duty leviable thereon
under section 8B, countervailing duty
leviable thereon under section 9 and anti-dumping duty leviable thereon under
section 9A of the said Customs
Tariff Act, except specified in para 2 to this notification, subject to the
following conditions, namely:-
(i) that the importer has been granted Advance Authorisation for deemed
export by the Regional Authority in
terms of paragraph 4.05(c)(iii) of the Foreign Trade Policy permitting import of
the said materials (hereinafter
referred to as the said authorisation);
(ii) that the said authorisation is produced before the proper officer of
customs at the time of clearance for debit;
(iii) that the said authorisation contains endorsements specifying, inter
alia ,-
(a) the description, quantity and value of materials allowed to be imported
under the said authorisation; and
(b) the description and quantity of final goods to be manufactured out
of, or with, the imported materials:
Provided that in respect of inputs referred in paragraphs 4.12(i) and 4.12(ii)
of the Foreign Trade Policy,
the material permitted to be imported in the said authorisation shall be of the
specific name or description or
quantity, respectively, as the material used in the manufacture of the final
goods supplied. The said authorisation
holder shall declare these particulars on the documents like ARE-3 and Central
Excise Certified Invoice;
(iv) that in respect of imports made before the discharge of export
obligation, the importer at the time of clearance
of the imported materials executes a bond with such surety or security, in such
form and for such sum as may be
specified by the Deputy Commissioner of Customs or Assistant Commissioner of
Customs, as the case may be,
binding himself to pay on demand an amount equal to the duty leviable, but for
the exemption contained herein,
on the imported materials in respect of which the conditions specified in this
notification are not complied with,
together with interest at the rate of fifteen per cent per annum from the date
of clearance of the said materials;
(v) that in respect of imports made after the discharge of export obligation,
if facility under rule 18 or sub-rule (2)
of rule 19 of the Central Excise Rules, 2017 or of the CENVAT Credit under
CENVAT Credit Rules, 2017 has
been availed, then the importer shall, at the time of clearance of the imported
materials furnish a bond to the
Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case
may be, binding himself,
to use the imported materials in his factory or in the factory of his supporting
manufacturer for the manufacture
of dutiable goods and to submit a certificate, from the jurisdictional Central
Excise officer or from a specified
chartered accountant within six months from the date of clearance of the said
materials, that the imported
materials have been so used:
Provided that if the importer pays additional duty of customs leviable on the
imported materials but for the
exemption contained herein, then the imported materials may be cleared without
furnishing a bond specified in
this condition and the additional duty of customs so paid shall be eligible for
availing CENVAT Credit under the
CENVAT Credit Rules, 2017;
(vi) that in respect of imports made after the discharge of export
obligation, and if facility under rule 18 or sub rule 2 of rule 19 of the
Central Excise Rules, 2017 or of the CENVAT credit under CENVAT Credit Rules,
2017
has not been availed and the importer furnishes proof to this effect to the
satisfaction of the Deputy Commissioner
of Customs or the Assistant Commissioner of Customs, as the case may be, then
the imported materials may be
cleared without furnishing a bond specified in condition (v);
(vii) that the imports and exports are undertaken through the seaports,
airports or through the inland container
depots or through the land customs stations as mentioned in the Table 2 annexed
to the Notification No. 26/
2023-Customs dated 1st April, 2023 or a Special Economic Zone notified under
section 4 of the Special Economic
Zones Act, 2005 (28 of 2005):
Provided that the Commissioner of Customs may, by special order or a public
notice and subject to such
conditions as may be specified by him, permit import and export through any
other seaport, airport, inland
container depot or through a land customs station within his jurisdiction;
(viii) that the export obligation as specified in the said authorisation
(both in value and quantity terms) is
discharged within the period specified in the said authorisation or within such
extended period as may be granted
by the Regional Authority by supplying final goods manufactured in India which
are specified in the said
authorisation;
(ix) that the importer produces evidence of having discharged obligation to
supply final goods to the satisfaction
of the said Deputy Commissioner of Customs or Assistant Commissioner of Customs,
as the case may be, within
a period of sixty days from the expiry of the period allowed for fulfillment of
obligation or within such extended
period as the Deputy Commissioner of Customs or Assistant Commissioner of
Customs, as the case may be,
may allow;
(x) that the said authorisation shall not be transferred and the said
materials shall not be transferred or sold:
Provided that the said materials may be transferred to a job worker for
processing subject to complying
with the conditions specified in the relevant goods and services tax provisions
permitting transfer of materials for
job work:
(xi) that components and parts, required for manufacture of final goods which
are wholly exempted from payment
of excise duty when removed from the factory of production, may be taken
directly from the port of import to the
project site as per the procedures and limitations, if any, laid down by the
Board in this regard subject to the
condition that description and quantity of such components and parts and the
address of the site have been
specified in the said authorisation.
2. The exemption from safeguard duty, transitional product specific safeguard
duty, countervailing duty and anti dumping duty shall not be available in
respect of material required for final goods which are covered under sub clauses
(a), (c), (d) and (i) of clause (III) of the Explanation to this notification.
Explanation. - For the purposes of this notification,-
(I) "dutiable goods" means excisable goods which are not exempt from central
excise duty and which are not
chargeable to 'nil' rate of central excise duty;
(II) "Export Oriented Units" has the same meaning as assigned to it in
paragraph 9.18 of the Foreign Trade Policy;
(III) "Final goods" means -
(a) supply of goods against Advance Authorisation or Advance Authorisation for
annual requirement or Duty Free
Import Authorisation Scheme;
(b) supply of goods to Export Oriented Units or Software Technology Parks or
Electronic Hardware Technology
Parks or Biotechnology Parks;
(c) supply of capital goods against Export Promotion Capital Goods
Authorisation;
(d) supply of marine freight containers by 100% Export Oriented Units
(domestic freight container manufacturers)
where such containers are exported out of India within a period of six months or
such further period as may be
permitted by the Deputy Commissioner of Customs or the Assistant Commissioner of
Customs, as the case may
be;
(e) supply of goods to projects financed by multilateral or bilateral
agencies or funds as notified by Department
of Economic Affairs, Ministry of Finance under International Competitive Bidding
(ICB) in accordance with the
procedures of those agencies or funds, where legal agreements provide for tender
evaluation without including
customs duty;
(f) supply and installation of goods and equipment (single responsibility of
turnkey contracts) to projects financed
by multilateral or bilateral agencies or funds as notified by Department of
Economic Affairs, Ministry of Finance
under ICB in accordance with the procedures of those agencies or funds, where
bids may have been invited and
evaluated on the basis of Delivered Duty Paid (DDP) prices for goods
manufactured abroad;
(g) supply of goods to any project or purpose in respect of which the
Ministry of Finance, by notification No.
50/2017- Customs dated the 30th June, 2017, as amended from time to time,
permits import of such goods at
zero customs duty subject to conditions specified in the said notification and
the supply is made under ICB
procedure;
(h) supply of goods required for setting up of any of the mega power projects
specified in the list 31 at Sl. No.
598 of notification No. 50/2017-Customs dated the 30th June, 2017, as amended
from time to time, provided the
mega power project conforms to the threshold generation capacity specified in
the said Notification. The supply
should be made under ICB procedure. The ICB condition shall not be mandatory if
the requisite quantum of power
has been tied up through tariff based competitive bidding or if the project has
been awarded through tariff based
competitive bidding;
(i) for supply for official use or to the projects funded by UN or
International Organisation in terms of Notification
No. 84/97-Customs dated the 11th November, 1997;
(j) Supply of goods to nuclear power projects through National Competitive
Bidding (NCB) or through International
Competitive Bidding (ICB) as provided in clause(g) of para 7.02 of Foreign Trade
Policy;
(IV) "Foreign Trade Policy" means the Foreign Trade Policy, 2023, published
by the Government of India in the
Ministry of Commerce and Industry, vide notification No. 01/2023, dated the 31st
March, 2023;
(V) "Materials" means -
(a) raw materials, components, intermediates, consumables, catalysts and parts
which are required for
manufacture of final goods;
(b) mandatory spares within a value limit of ten per cent of the value of the
authorisation which are required to be
exported along with the final goods;
(c) fuel required for manufacture of final goods;
(d) packaging materials required for packing of final goods;
(VI) "Regional Authority" means the Director General of Foreign Trade
appointed under section 6 of the Foreign
Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officer
authorised by him to grant an
authorisation under the said Act; and
(VII) "Specified Chartered Accountant" means a statutory auditor or a
Chartered Accountant who certifies the
importer's financial records under the Companies Act, 2013 (18 of 2013) or the
Income Tax Act, 1961 (43 of
1961) or the Central/State Goods and Services Tax Act.
(VIII) “Supply of taxable goods” means a supply of goods which is leviable to
tax under relevant Goods and
Services Tax law.
[F.No.605/10/2022-DBK]
(Dhananjay Singh)
Under Secretary.
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