Notification No. 34/97-Cus Dated 07-04-97

Exemption on goods imported under a Duty Entitlement Pass Book. -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 the goods of description specified in column (2) of the Table below, when imported into India,-

(1) from so much of duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975)as is in excess of the amount calculated at the rate specified in the corresponding entry in column (3) of the said Table;

(2) from so much of duty of customs leviable thereon under the First Schedule to the said Customs Tariff Act as is in excess of the amount calculated at the rate specified in the corresponding entry in column (4) of the said Table;

subject to the following conditions, namely:-

    i) That the importer has been issued a Duty Entitlement Pass Book (DEPB) by the Licencing Authority in pursuance of paragraph 7.25 read with paragraph 7.29 of the Export and Import Policy (hereinafter referred to as said Duty Entitlement Pass Book(DEPB).

    ii) The importer has been permitted credit entries in the said Duty Entitlement pass Book(DEPB) at the rates notified by the Government of India in the Ministry of Commerce for the products exported or has been allowed a provisional credit in the said Duty Entitlement pass Book(DEPB) by the Licencing authority to be set-off by the credits earned on exports to be subsequently effected;

    iii) The said Duty Entitlement Pass Book(DEPB) is produced before the proper officer of Customs for debit of the duties leviable on the goods but for exemption contained herein;

    Provided that exemption from duty shall not admissible if there is insufficient credit in the said duty Entitlement Pass Book(DEPB) for debiting the duty leviable on the goods but for the exemption.

    iv) The said Duty Entitlement Pass Book (DEPB) shall be valid for twelve months from the date of issue or such extended period as may be granted by the Licensing Authority, for import and export only, at the port of registration which shall be one of the sea ports at Mumbai, Calcutta, Cochin, Kandla, Mangalore, Marmagoa, Chennai, Nhava Sheva, Paradeep, Tutcorin, Visakhapatnma, Kakinada, Magdalla, Sikka,Pipavav, Dahej, Nagapattinam, Okha, Dharamtar, Jamnagar and Muldwarka and Mundhra or any or the airports at Ahmedabad, Bangalore, Mumbai, Calcutta, Coimbatore, Delhi,Jaipur, Varanasi, Srinagar, Trivandrum, Hyderabad, Chennai, Bhubaneshwar, Nagpur and Cochin or any of the Inland Container Depots at Bangalore, Coimbatore, Delhi, Gauhati, Kanpur, Pimpri (pune), Pitampur (Indore), Moradabad, Ludhiana, Hyderabad, Nagpur, Agra, Faridabad, Jaipur, Guntur, Varanasi, Jodhpur, Salem, Tirupur, Singanalur, Waluj, Malanpur, Surat, Nasik, Rudrapur (Nainital), Kota, Udaipur, Daulatabad (Wanjarwadi and Maliwada), Dighi (Pune), Vadodara, Ahmedabad, Bhiwadi, Madurai, Jalandhar, Meerut, Bhilwara, Pondichery, Garhi Harsaru, Bhatinda, Dappar (Dera Bassi), Chheharata (Amritsar), Karur, Miraj, Rewari, Bhusawal, Jamshedpur, Surajpur and Dadri or through the Land customs Stations at Ranaghat, Singhabad, Raxaul, Jogbani, Nautanva(Sonauli), Petrapole and Mahadipur.

    Provided that where that expiry of the Duty Entitlement Pass Book (DEPB) falls before the last day of the month, the Duty Entitlement Pass Book shall be deemed to be valid till the last day of the said month.

    Provided further that the Commissioner of Customs may by special order and subject to such conditions as may be specified by him, permit imports and exports from any other sea port, airport, inland container depot or through a land customs station;

    (v) The importer claiming exemption from duties against provisional credit permitted under paragraph 7.35 of ""Export and Import Policy"" by the Licensing authorities, executes a bond in such form and for such sum, with such surety or securities as may be prescribed by the Assistant Commissioner of customs or Deputy Commissioner of Customs, binding himself to pay on demand duty leviable on goods imported but for the exemption contained herein together with interest at the rate of 15% per annum from the date of clearance in the event of his failure to make exports and earn credits thereon to set off the provisional credits allowed;

    Provided that in the case of import against provisional credits, the exemption shall be permitted only for such goods which are in the nature of inputs required for use in the production of goods in the factory of the Duty Entitlement Pass Book holder or in the factory of supporting manufacturer as specified in the said Duty Entitlement Pass Book and such inputs are not transferred, loaned, sold, parted with or disposed of in any manner over after credits on exports to set off provisional credits have been earned.

    (vi) Where the importer does not claim exemption from the additional duty of customs leviable 1[under sub-sections (1), (3) and (5) of section 3] OLD [under section 3] of the customs Tariff Act, 1975 (51 of 1975), he shall be deemed not be have availed the exemption from the said duty for the purpose of calculation of the said additional duty of customs.

    (vii) Where benefit of exemption form duty is claimed by a person, who is not a Duty Entilement Pass Book(DEPB) holder, such benefit shall be permissible only against specific amount of credit, not being a Provisional credit, transferred by a Duty Entitlement Pass Book(DEPB) holder to such person.


TABLE
S.No. Description of goods Standard rate Additional duty rate
(1) (2) (3) (4)
1. Goods other than edible oils Nil Nil
2. Edible Oil 50% of applied rate of duty 50% of applied rate of additional duty


Explanation : -

For the purposes of this notification ,-

(i) 'Export and Import Policy' means the Export and Import Policy, April, 1997-March, 2002, published vide notification of the Government of India in the Ministry of Commerce No. 2/1997-2002, dated the 31st March, 1997;

(ii) 'applied rate of duty' means the standard rate of duty specified in the First Schedule to the said Customs Tariff Act with respect to the goods specified in column (2) of the said Table, read with any other notification (for the time being in force) issued in respect of such goods under sub-section (1) of section 25 of the said Customs Act;

(iii) 'applied rate of additional duty' means the additional duty leviable 1[under sub-sections (1), (3) and (5) of section 3] OLD [under section 3] of the said Customs Tariff with respect to the goods specified in column (2) of the said Table, read with any other notification (for the time being in force) issued in respect of such goods under sub-section (1) of section 25 of the said Customs Act.

1. Substituted Vide: Notification No. 26/2017-Cus Dated 29/06/2017

as amended by Notification Nos. 44/97-Cus dated 12-5-97, 66/97-Cus dated 3-9-1997, 87/97-Cus dated 27-11-1997, 65/98-Cus dated 25-8-1998, 104/98-Cus dated 16-12-1998 No.52/99-Cus. dated 3-5-1999; No.81/99-Cus., dated 26-6-1999, No.121/99-Cus., dated 4-11-1999; No. 1/2000-Cus dated 5-1-2000, No. 5/2000-Cus dated 21-1-2000, 120/2000-Cus dated 15-9-2000, 30/2001-Cus dated 12-3-2001, 122/2001-Cus dated 3-12-2001, 113/2002-Cus dated 16-10-2002, 125/2002-Cus dated 12-11-2002, 84/2003-Cus dated 27-5-2003, 97/2003-Cus dated 25-6-2003, 63/2004-Cus dated 14-5-2004, 95/2004-Cus dated 15-9-2004 and 27/2005-Cus dated 2-3-2005.