Notification No. 93/2004-Cus Dated 10-09-2004
Exemption additional duty, safeguard duty and anti-dumping duty on goods imported under Advance Licence.- 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 imported into India against an 1[Advance Licence or Advance Authorisation] Old[Advance Licence] issued in terms of paragraph 4.1.3 of the Foreign Trade Policy (hereinafter referred to as the 1New[said licence or authorisation] Old[said licence]) from the whole of the duty of customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and from the whole of the additional duty, safeguard duty and anti-dumping duty leviable thereon, respectively, under sections 3, 8 and 9A of the said Customs Tariff Act, subject to the following conditions, namely :-
(i) that the description, value and quantity of materials imported are covered by the 1[said licence or authorisation] Old[said licence] and the 1[said licence or authorisation] Old[said licence] is produced before the proper officer of customs at the time of clearance for debit;
(ii) that where import takes place after fulfilment of export obligation, the shipping bill number(s) and date(s) and quantity and FOB value of the resultant product are endorsed on the 1[said licence or authorisation] Old[said licence]:
Provided that where import takes place before fulfilment of export obligation, the quantity or FOB value of the resultant product to be exported are endorsed on the 1[said licence or authorisation] Old[said licence];
(iii) that the importer at the time of clearance of the imported materials executes a bond with such surety or security and 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 have not been complied with, together with interest at the rate of fifteen per cent. per annum from the date of clearance of the said materials :
Provided that bond shall not be necessary in respect of imports made after the discharge of export obligation in full;
(iv) that
the imports and exports are undertaken through seaports at Mumbai, Kolkata,
Cochin, Magdalla, Kakinada, Kandla Mangalore, Marmagoa, Chennai, Nhava Sheva,
Paradeep, Pipavav, Sikka, Tuticorin, Visakhapatnam, Dahej, Mundhra, Nagapattinam,
Okha, Bedi (including Rozi –Jamnagar), 1[Muldwarka,
Porbander, Dharamatar and Vadinar] Old[Muldwarka and Porbander] or through any
of the airports at Ahmedabad, Bangalore, Bhubaneswar, Mumbai, Kolkata,
Coimbatore, Delhi, Hyderabad, Jaipur, Chennai, Srinagar, Trivandrum, Varanasi,
Nagpur, [Cochin, 2[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),
Waluj (Aurangabad), Anaparthy (Andhra Pradesh), Salem, Malanpur, Singanalur,
Jodhpur, Kota, Udaipur, Ahmedabad, Bhiwadi, Madurai, Bhilwara, Pondicherry,
Garhi Harsaru, Bhatinda, Dappar (Dera Bassi), Chheharata (Amritsar), Karur,
Miraj, Rewari, Bhusawal, Jamshedpur, Surajpur, [Dadri, Tuticorin, Kundli, 1[Bhadohi,
[Condition 5 has been amended vide Notification Nos. 46/2005-Cus dt 17-5-2005, 77/2005-Cus dt 22-8-2005 and 97/2005-Cus dt 17-11-2005.]
Provided that the Commissioner of Customs may, by special order, or by a Public Notice, and subject to such conditions as may be specified by him, permits import and export from any other seaport/airport/inland container depot or through any land customs station;
(v) that the export obligation as specified in the 1[said licence or authorisation] Old[said licence] (both in value and quantity terms) is discharged within the period specified in the 1[said licence or authorisation] Old[said licence] or within such extended period as may be granted by the 1[Licensing Authority or Regional Authority] Old[Licensing Authority] by exporting resultant products, manufactured in India which are specified in the 1[said licence or authorisation] Old[said licence] and in respect of which facility *[under rule 18 (rebate of duty paid on materials used in the manufacture of resultant product)] Old[under rule 18] or sub-rule (2) of 19 of the Central Excise Rules, 2002 has not been availed :
Provided that an Advance Intermediate Licence holder shall discharge export obligation by supplying the resultant products to 1[exporter] Old[ultimate exporter] in terms of Paragraph 4.1.3 (b) of the Foreign Trade Policy;
(vi) that the importer produces evidence of discharge of export obligation to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, within a period of 30 days of the expiry of period allowed for fulfilment of export obligation, or within such extended period as the said Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, may allow;
(vii) that the 1[said licence or authorisation] Old[said licence] and the materials shall not be transferred or sold;
* Provided further that where the Bond filed under condition (iii) against the 1[said licence or authorisation] Old[said licence] has been redeemed by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, the unutilised material may be transferred to any other manufacturer for processing under actual user condition after complying the central excise procedure relating to Job work
*(The proviso inserted vide Notification No. 46/2005-Cus dt 17-5-2005)
(viii) that in relation to the 1[said licence or authorisation] Old[said licence] issued to a merchant exporter,-
(a) the name and address of the supporting manufacturer is specified in the 1[said licence or authorisation] Old[said licence] and the bond required to be executed by the importer in terms of condition (iii) shall be executed jointly by the merchant exporter and the supporting manufacturer binding themselves jointly and severally to comply with the conditions specified in this notification; and
(b) exempt materials are utilised in the factory of such supporting manufacturer for discharge of export obligation and the same shall not be transferred or sold or used for any other purpose by the said merchant exporter.
2. Where the materials are found defective or unfit for use, the said materials may be re-exported back to the foreign supplier within three years from the date of payment of duty on the importation thereof:
Provided that at the time of re-export the materials are identified to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, as the materials which were imported.
Explanation. – For the purposes of this notification,-
(i) “Foreign Trade Policy” means the Foreign Trade Policy 2004-2009 published vide notification of the Government of India in the Ministry of Commerce and Industry, No.1/2004 dated the 31st August, 2004 :
(ii) “1[Licensing Authority or Regional Authority] Old[ 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 authorized by him to grant a licence under the said Act;
(iii) “Materials” means -
(a) raw materials, components, intermediates, consumables, catalysts and parts which are required for manufacture of resultant product;
(b) mandatory spares within a value limit of ten per cent. of the value of the licence which are required to be exported alongwith the resultant product;
(c) fuel required for manufacture of resultant product; and
(d) packaging materials required for packing of resultant product;
(iv) “manufacture” has the same meaning as assigned to it in paragraph 9.37 of the Foreign Trade Policy.
* Corrected vide Corrigendum Dated 17/5/2005
1. Substituted vide Notification No. 43/2006-Cus Dated: 5-05-2006
2. Substituted vide Notification No. 63/2007-Cus Dated 4/5/2007
3. Substituted vide Notification No. 116/2007-Cus Dated 30/11/2007
as amended by [Notification Nos. 46/2005-Cus dt 17-5-2005, 77/2005-Cus dt 22-8-2005 , 97/2005-Cus dt 17-11-2005, 43/2006 Cus dt. 5/05/2006, 63/2007-Cus dt 4/5/2007 and 116/2007-Cus dt. 30/11/2007.]