Notification No. 32/97-Cus Dated 01-04-97
Exemption on goods imported for execution of an export order placed on the importer by the supplier of goods for jobbing.-In
exercise of the powers conferred by sub-section (1) of section 25 of the customs
Act, 1962 (52 of 1962) in supersession of the notification of the Government of
India, in the Ministry of Finance (Department of Revenue) No. 81/95-Customs
dated the 31st March 1995, the Central Government, being satisfied that it is
necessary in the public interest so to do, hereby exempts the goods imported
into India 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 whole of the additional duty leviable thereon 1[under sub-sections (1), (3) and (5)
of section 3] OLD [under section 3]
(i)
that the goods are imported for execution of an export order place on the
importer by the supplier of goods for jobbing;
(ii) that the goods so imported, including resultant products, are re-exported
to the supplier of the goods or to any other person which the said supplier
may specify within six months from the date of clearances or within such
extended period as the Assistant Commissioner of Customs or Deputy
Commissioner of Customs may allow:
Provided that where the goods are in the nature of patterns, drawings,
jigs, tools, fixtures, moulds, tackles and instruments, such goods may be
allowed by the Assistant Commissioner of Customs or Deputy Commissioner of
Customs to be retained subject to payment of customs duties leviable as on the
date of import without allowing in any depreciation except for items specified
in the negative list of import in the Export and import Policy for which the
importer shall obtain and produce, necessary permission in terms of paragraph
7.12 (5) of the Export and Import Policy;
Provided further that the wastage arising during the process of
jobbing, as determined in terms of standard Input - Output norms published by
the Government of India in the Ministry of Commerce in the Handbook of
Procedure (Vol. 2) and to where such Standard Input - Output norms for the
resultant product have not been published, the satisfaction of the Assistant
Commissioner or Deputy Commissioner of Customs 2[and Central Excise] shall be
disposed off in the manner as may be specified by the said Assistant
Commissioner or Deputy Commissioner of Customs 2[and Central
Excise];
(iii) that the goods are utilised only for the discharge of export obligation
and no part there of shall be sold, loaned, transferred or otherwise used or
disposed of;
(iv) that the FOB value of the resultant products exported is at least 10%
more than the C.I.F. value of all goods imported in relation to the said
resultant products;
Provided that where the resultant products are textile and clothing
goods falling under chapters 50 to 63 of the First Schedule to the Customs
Tariff Act, 1975 (51 of 1975), the valve addition under this condition shall
be of any positive value.
(v) that the jobbing is undertaken in accordance with the procedure set out in
the Customs (Import of goods at Concessional Rate of Duty for Manufacture of
Excisable Goods) Rules, 1996.
Provided that where the jobbing is to be undertaken by or through
cottage industry without being confined to any specific primises, the importer
shall execute a bond with such surety or security and in such form and for
such sum as may be specified by the Assistant Commissioner of customs or
Deputy Commissioner of Customs, binding himself to pay on demand an amount
equal to the duty leviable on the goods imported but for the exemption
contained herein, respect of which the conditions specified in this
notification have not been complied with together with interest at the
rate of fifteen percent per annum from the date of clearance of goods;
(vi) that the imports and exports are undertaken through sea ports at Bombay,
Calcuttta, Cochin, Kandla, Mangalore, Marmagoa, Madras, Nhava Sheva, Paradeep,
Tuticorin and Visakhapatnam or through any of the airports at Ahmedabad,
Bangalore, Bombay, Culcutta, Coimbatore, Delhi, Hyderabad, Jaipur, Srinagar,
Trivandrum and Varansi or through any of the Inland Container Depots at
Bangalore, Coimbatore, Delhi, Gauhati, Kanpur, Ludhiana Moradabad, Pimpri (Pune)
and Pitampur (Indore);
Provided that the Commissioner of Customs may by special order and
subject to such conditions as may be specified by him, permit import and
export through any other sea port, airport, or Inland Container Deport or
through a land customs station.
(vii) that the goods being imported are not prohibited items specified in the
ITC (HS) Classification of export and imports items as declared by the
Government of India, in the Ministry of Commerce.
Explanation - In this Notification, -
(i)
"Export and Import Policy" means the Export and Import Policy 1
April 1997 - 31st March 2002 Published vide Notification of India in the
erstwhile Ministry of Commerce No.1/1997-2002, dated the 31st march, 1997 or
the Export and Import Policy April, 2002-March 2007, published vide
notification of the Government in the Ministry of Commerce and Industry
(Department of Commerce) No.1/2002-07, dated 31st March, 2002.
(ii) "Goods" means raw materials, components, intermediates,
semi-finished goods, consumables, parts, packing materials including hangers
for garments, patterns, drawings, jigs, tools, fixtures, moulds, tackles,
instruments, and computer hardware and software, as are directly related to
the export order and supplied free of cost by the foreign buyer.
1. Substituted Vide: Notification No. 26/2017-Cus Dated 29/06/2017
2. Omitted Vide: Notification No. 26/2017-Cus Dated 29/06/2017
as amended by Notification Nos. 1/99-Cus dt 1-1-1999, 50/99-Cus dt 29-4-1999, 89/99-Cus dt 6-7-1999 and 105/2003-Cus dt 10-7-2003.