Notification No. 53/2003-Cus Dated 01-04-2003

Exemption on goods imported against Duty free Entitlement Credit Certificate. - 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 when imported into India against a duty free entitlement credit certificate (hereinafter referred to as the said certificate ) issued under paragraph 3.7.2.1 (vi) of the Export and Import Policy,-

(a) from the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act 1975 (51 of 1975);

²[(b) from the whole of the additional duty leviable thereon under Section 3 of the said Customs Tariff Act; and]
^Old[ (b) from the whole of the additional duty leviable thereon under sub-section (1) of section 3 of the said Customs Tariff Act; and]

(c) from the whole of the special additional duty of customs leviable thereon under section 3A of said Customs Tariff Act, 
subject to the following conditions, namely

(1) that the said certificate has been issued by the licensing authority to a status holder specified in para 3.7.2 of the Export and Import Policy;

(2) that the said certificate and goods imported against it shall not be transferred or sold:

Provided that where the goods are imported by a merchant exporter having supporting manufacturer(s) whose name and address is specified on the license, the said goods may be utilised by the said supporting manufacturer(s).

(3) that in respect of capital goods, a certificate from jurisdictional Deputy Commissioner of Central Excise, Assistant Commissioner of Central Excise or an independent Chartered Engineer, as the case may be, is produced confirming installation and use of capital goods in the importer’s factory or premises, within the six month from the date of imports or within such extended period as the Deputy Commissioner of Customs or Assistant Commissioner of Customs may allow:

Provided that where the capital goods are imported by a merchant exporter having supporting manufacturer(s), the capital goods may be installed in the factory or premises of the said supporting manufacturer(s);

(4) that the said certificate shall be produced before the proper officer of customs at the time of clearance for debit of the duties leviable on the goods but for this exemption:

Provided that exemptions from duty shall not be admissible if there is insufficient credit in the said license for debiting the leviable on the goods but for this exemption;

(5) that the imports against the said certificate are undertaken through sea ports at Mumbai, Kolkata, Cochin, Magdalla, Kakinada, Kandla, Mangalore, Marmagoa, Madras, Nhava Sheva, Paradeep, Pipavav, Sikka, Tuticorin, Visakhapatnam, Dahej, ,Nagapattinam, Mundhra, Okha, Bedi (including Rozi –Jamnagar), ^Old[Muldwarka and Porbander] ¹[Muldwarka, Porbander, Dharamtar and Vadinar] or through any of the airports at Ahmedabad, Bangalore, Bhubaneswar, Mumbai, Kolkata, Coimbatore, Delhi, Hyderabad, Jaipur, Madras, Srinagar, Trivandrum, Varanasi, Nagpur,#[Cochin, ³[Rajasansi (Amritsar), Lucknow (Amausi) and Indore] ^Old[Rajasansi (Amritsar) and Lucknow (Amausi)]] or through any of the Inland Container Depots at Agra, Bangalore, Coimbatore, Delhi, Faridabad, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar, Kanpur, Ludhiana, Moradabad, Nagpur, Pimpri (Pune), Pitampur (Indore), Surat, Tirupur, Varanasi, Nasik, Rudrapur (Nainital), Dighi (Pune), Vadodara, Daulatabad, (Wanjarwadi and Maliwada), Malanpur, Waluj (Aurangabad), Anaparthy (Andhra Pradesh), Salem, Singanalur, Jodhpur, Kota, Udaipur, Ahmedabad, Bhiwadi, Madurai, Bhilwara, Pondichery, Garhi Harsaru, Bhatinda, Dappar (Dera Bassi), Chheharata (Amritsar), Karur, Miraj, Rewari, Bhusawal, Jamshedpur, Surajpur, #[Dadri, Tuticorin, Kundli, ^Old[Bhadohi and Raipur] ¹ [Bhadohi, Raipur , Mandideep (District Raisen), ³[Durgapur (Export Promotion Industrial Park), Babarpur and Loni (District Ghaziabad)] ^Old[Durgapur (Export Promotion Industrial Park) and Babarpur]]] or through the Land Customs Stations at Ranaghat, Singhabad, Raxaul, Jogbani, Nautanva(Sonauli), #[Petrapole, Mahadipur, Nepalganj Road, Dawki, Agartala, ^Old[Sutarkhandi and Amritsar Rail Cargo] ¹[Sutarkhandi, ⁴[Amritsar Rail Cargo, Attari Road,  Hilli, Ghojadanga and Changrabandha] ^old[Amritsar Rail Cargo and Attari Road ] or Special Economic Zone as specified in the notification issued under section 76A of the Customs Act, 1962 (52 of 1962).

# Substituted Vide CUS NTF NO. 97/2005 DT. 17/11/2005.
In Condition 5 bold words have been substituted vide CUS NTF NO. 77/2005, DATE 22/08/2005.

(Condition (5) has been amended vide Cus Ntf No.46/2005 Date 17/05/2005)

(Condition (5) has been amended vide Cus Ntf No.84/2003 Date 27/05/2003, Ntf No. 63/2004 dated 14-5-2004)

*(6) that where the importer does not claim exemption from the additional duty of customs leviable under section 3 of the said Customs Tariff Act, he shall be deemed not to have availed the exemption from the said duty for the purpose of calculation of the said additional duty of customs.

*(7) that the importer shall be entitled to avail of the drawback or CENVAT credit of additional duty leviable under section 3 of the said Customs Tariff Act against the amount debited in the said certificate.'
Explanation :- In this notification,-

(i) "Capital Goods" has the same meaning as assigned to it in paragraph 9.10 of the Export and Import Policy,-

(ii) "goods" means,-

(a) capital Goods;

(b) office equipment ( including Computer systems, Software, Fax/ machine, Telephone); and

(c) raw materials, components, intermediates, consumables and parts other than agricultural and dairy products;

(iii) "Export and Import Policy" means the Export and Import Policy 2002-2007, published by the Government of India in the Ministry of Commerce and Industry vide notification No.1(RE:2003), dated the 31st March 2003 as amended from time to time;

(iv) "Licensing 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 a license under the said Act.

* Inserted Vide CUS NTF NO. 97/2005 DT. 17/11/2005.

1. Amended vide Notification No. 41/2006-Cus, Dt. 5/05/2006

2. Substituted vide Notification No. 117/2006-Cus Dated 19/12/2006

3. Substituted vide Notification No. 63/2007-Cus Dated 4/5/2007

4. Substituted vide Notification No. 116/2007-Cus Dated 30/11/2007