Notification No. 208/1977-Cus (NT) Dated 1/10/1977

Drawback of Import Duty shall not be allowed in respect of goods exported to ⁵[Myanmar] ^Old[ Burma, Nepal, Bhutan etc.-

Whereas the Central Government is of the opinion that the goods specified in the Table below, if exported under claim for drawback, are likely to be smuggled back into India;

Now, therefore, in exercise of the powers conferred by sub-section (2) of section 76 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 49-Customs (G.S.R. 225), dated the 1st February/1963, the Central Government hereby directs that drawback of import duty shall not be allowed in respect of such goods.  

TABLE  

(1) Any goods exported to any place in Bhutan.

(2) Any goods exported to any place in Nepal.  

(3) Any goods exported by land to any place in ⁵[Myanmar] ^Old[Burma], Tibet or Sinkiang.  

2. Nothing contained in this notification shall apply:-

(a) if any such goods are exported under claim for drawback to any place in Nepal, Bhutan and Myanmar against irrevocable letters of credit in freely convertible currency established by Nepalese, Bhutanese and ⁵[Myanmarese] ^Old[Burmese] importers in favour of Indian exporters for the value of such goods; or  

(aa) if any such goods are exported under claim for drawback to any place in Nepal for supplies to projects financed by any United Nations Agency or the International Bank for Reconstruction and Development or the International Development Association or the Asian Development Bank or any other multilateral agency of the like nature and for which payment is received in freely convertible currency;  

(b) if any such goods as are specified in the Annexure below (hereinafter referred to as the "capital goods") are exported under claim for drawback to any place in Nepal against any global tender invited by His Majesty's Government of Nepal and for which payment is received in Indian currency; ²[to the conditions that in case of export specified under clause (a) or (aa) or (b)-] ^Old[subject to the conditions that]

(i) a certificate duly signed by the concerned bank in India is produced showing that the payment in freely convertible currency or, as the case may be, in Indian currency, has been duly received by the said bank; and

(ii) where any such export takes place through a land customs station, such export shall be only through the land customs station at Jogbani, Nautanwa, Raxaul, Darranga,⁸[Jaigaon, Moreh, Nepalgunj Road or Barhni]  ^old[²[Jaigaon, Moreh or Nepalgunj Road]]

¹[(c) if any petroleum product is exported by M/s. Indian Oil Corporation Ltd., India, through any of the appointed land customs stations under claim for drawback, to M/s. Nepal Oil Corporation Ltd., Nepal, for which payment for price is received in Indian currency and where such products are exported only through the land customs station at Panitanki, Raxaul, Jogbani, Sonauli, Rupedya, ⁹[Gauriphanta, Dharchula, Bhithamore and Barhni]^old[Gauriphanta and Dharch-ula.]] 

ANNEXURE  

The Capital Goods  

Goods, that is to say, all items of machinery including prime movers, instruments, apparatus and appliances, control gear and transmission equipment as well as auxiliary equipment (including those required for research and development purposes, testing and quality control), required by an investor for production of goods or for rendering services, including those for replacement or expansion.

⁶[Provided that no drawback shall be allowed if the goods exported were imported into India from third countries and exported to Nepal.]  

Explanation. - For the purpose of this notification, "freely convertible currency" means Australian Dollars, ^Omitted3[Austrian Schillings], Bahrain Dinars, ^Omitted3[Belgian Francs], Canadian Dollars, ⁴[Euro], ^Omitted3[Danish Kroners, Deutsche Marks, French Francs], Hong Kong Dollars, ^Omitted3[Italian Lire], Japanese Yen, Kuwaiti Dinars, Malaysian Dollars, ^Omitted3[Netherlands Guilders, Norwegian Kroners], Pound Sterling, Singapore Dollars, ^Omitted3[Swedish Kroners, Swiss Francs] and U.S.A. Dollars and includes Indian currency bought by the Asian Development Bank by payment to the Reserve Bank of India in foreign exchange.

Notification No. 208-Cus., dated. 1-10-1977 as amended by Notifications No. 375/87-Cus., dated 10-12-1987; No. 46/88(N.T.)-Cus:, dated 27-6-1988; No. 100/94-Cus., dated 3-3-1994 and No. 5/95-Cus. (N.T.), dated 4-1-1995.

1. Inserted vide Notification No. 39/2003-Cus (NT) Dated 19-06-2003

2. Substituted vide Notification No. 39/2003-Cus (NT) Dated 19-06-2003

3. Omitted vide Notification No. 24/2009-Cus (NT) Dated 3/3/2009

4. Inserted vide Notification No. 24/2009-Cus (NT) Dated 3/3/2009

5. Replaced vide Notification No. 24/2009-Cus (NT) Dated 3/3/2009

6. Inserted vide Notification No. 13/2011-Cus (NT) Dated 24/2/2011

7. Substituted vide Notification No. 101/2013-Cus (NT) Dated 27-09-2013

8. Substituted vide Notification No. 01/2019-Cus Dated 03-01-2019

9. Substituted vide Notification No. 106/2022-Customs (N.T.) Dated. 12.12.2022 

as amended by[Notification No. 39/2003-Cus (NT) dt. 19/6/2003, 24/2009-Cus (NT) dt. 3/3/2009  and 13/2011-Cus (NT) Dt. 24/2/2011.]