Notification No. 48/99-Cus Dated 29-04-99

Exempts on materials imported against an Advance Licence for Annual Requirement with Actual User Condition.-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 Advance Licence for Annual Requirement (hereinafter referred to as the said licence), with Actual User Condition in terms of paragraph 7.2 of the Export and Import Policy or Annual Advance Licence (hereinafter referred to as the said licence), with Actual User Condition in terms of paragraph 7.4A of the Export and Import Policy 1998-99 notified by the Government of India in the Ministry of Commerce vide notification No. 1(RE99)/1997-2002, dated the 31 March, 1999) 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 leviable thereon ²[under sub-sections (1), (3) and (5) of section 3] ^OLD [under section 3] of the said Customs Tariff Act, subject to the following conditions, namely:-

(i) the said licence is issued for an export product group specifying the Cost Insurance Freight value (CIF value) of import permitted against it and the Free On Board Value (FOB value) of export obligation to be achieved. The said licence shall be valid for import of any input required for the manufacture of export product which is covered under the said export product group specified in the Hand Book of Procedure Volume II of Export and Import Policy

(ia) an Actual User Duty Exemption Entitlement Certificate (hereinafter referred to as the said certificate (hereinafter referred to as the said certificate) is issued to the holder of the said licence by the licensing Authority in the form specified in the Schedule annexed to this notification. At the time of import, the full details of value, quantity, technical characteristics and other particulars, of the inputs imported against the said licence shall be entered in part "C" of the said certificate by the proper officer

[Inserted vide Customs Notification No.90/99 Dated 6-7- 99 ]

(ii) 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 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, but for the exemption, on the imported materials in respect of which the conditions specified in this notification have not been compiled with, together ]with interest at the rate of fifteen per cent per annum from the date of clearance of the said materials:

(In condition (ii) bold figure has been substituted vide Finance Bill 2003-2004 - Date of effect 29/04/1999)

(In condition (ii) bold words has been substituted vide Cus Ntf No.113/2002 Date 16/10/2002)

Provided that the bond shall not be necessary in respect of imports made after the discharge of export obligation in full;

(iii) that the said licence and the said certificate are produced before the proper officer of customs at the time of clearance for debit;

(iv) that the imports and exports are undertaken through sea ports at Mumbai, Calcutta, Cochin, Magdalla, Kakinada, Kandia, Mangalore, Marmagoa, Madras, Nhava Sheva, Paradeep, Pipavav, Sikka, Tuticorin, Visakhapatnam , Dehej, Nagapattinam, Okha, Mundhra, Jamnagar and Muldwarka or through any of the airports at Ahmedabad, Bangalore, Bhubaneshwar, Mumbai, Calcutta, Coimbatore, Delhi, Hyderabad, Jaipur, Madras, Srinagar, Trivandrum, Varanasi, Nagpur and Cochin 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, 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 the Commissioner of Customs may be special order and subject to such conditions as may be specified by him, permit import and export through any other sea port, air port, or Inland Container Depot or through a land customs station:

(Second proviso has been omitted vide CUS NTF NO. 97/2003 DATE 25/06/2003)

[OLD Provided further that where the goods are delivered for export through any Inland Container Depot specified in this condition, its export shall only be permitted through the sea-ports at Mumbai, Nhava Sheva, Kandla, Chennai or Kolkata.]

(Second proviso has been inserted vide Cus Ntf No.84/2003 Date 27/05/2003)

(v) that the sourcing of the imported materials from Private Bonded Warehouses set up under para 4.15 of the Export and Import Policy would be allowed.

(vi) that the export obligation is discharged within eighteen months from the date if issue of the said licence or within such extended period as may be granted by the Licensing Authority by exporting resultant products manufactured in India. At the time of export, the full details of value, quantity, technical characteristics, and other particulars, of the resultant export product (hereinafter referred to as resultant product) shall be entered in part 'E' of the said certificate by the proper officer

[Substituted vide Customs Notification No. 90/99 Dated 6-7-99 ]

Provided that an Annual Intermediate Licence holder may discharge export obligation by supplying the resultant products to ultimate exporter holding Annual Advance Licence in terms of paragraph 7.3 (b) of the Export and Import Policy 1997-2002, notified by the Government of India in the Ministry of Commerce, vide notification No. 1(RE-00)/1997-2002 dated the 31st March, 2001

(This proviso has been added vide cus Ntf.No.59/2001 dt.30/05/2001)

(vii) that the importer produces evidence of discharge of export obligation to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs 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 Assistant Commissioner of Customs or Deputy Commissioner of Customs may allow:

(viii) exempt materials shall not be disposed of or utilised in any manner except for utilisation in discharge of export obligation or for replenishment of such materials and the materials so replenished shall not be sold or transferred to any other person:

(ix) that in relation to the said licence issued to a Merchant Exporter holding Export House, Trading House, Star Trading House or Super Star Trading House Certificate,

 

(a) the name and address of the supporting manufacturer is specified in the said licence and the said certificate and the bond required to be executed by the importer in terms of condition (ii) 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 in terms of condition (viii).


(x) This notification shall come into force on and from the 1st July, 1999.

¹[2. In a case of default in export obligation, when the duty on goods is paid to regularise the default, the amount of interest paid by the importer shall not exceed the amount of duty if such regularisation has been dealt in terms of Public Notice of the Government of India in the Ministry of Commerce No. 22 (RE-2013)/2009-2014 dated the 12^th August, 2013.]

Explanation: In this notification,-

(i) "Export and Import Policy" means the Export and Import Policy 1997-2002, published vide notification of the Government of India in the Ministry of Commerce No.1/1997-2002 dated the 31st March, 1997.

(ii) "Licensing Authority" means the Director General of Foreign Trade appointed under Section 6 of the 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 licence under the said Act.

(iii) "Materials means,-

 

(a) raw materials, components, intermediates, consumables, computer software and parts required for manufacture of resultant product specified in Part E of the said certificate by the proper officer;

[Substituted vide Customs Notification No. 90/99 Dated 6-7-99 ]

(b) mandatory spares within a value limit of 10% of the value of the licence which are required to be exported alongwith the resultant product; and

(c) packaging materials required for packing of resultant product.


(iv) Annual Advance Licence includes Annual Advance Licence for Intermediate Supply issued in terms of paragraph 7.3(b) of the Export and Import Policy 1997-2002, notified by the Government of India in the Ministry of Commerce, vide notification No.1(RE-00) 1997-2002 dated the 31st March, 2001.

(This clause (iv) has been added vide cus Ntf.No.59/2001 dt.30/05/2001)

 

(This consist of -----------------------pages)
Sl. No. ----------------(IMP) Date of issue ----------------
Port of Registration -------------------------------
Issued to -------------------------------
-------------------------------
(name and full address of the licencee)

Materials imported against licence No. ----------- dated ---------------- issued by ---------- to the above licencee would be eligible for exemption from customs duties subject to the conditions specified in the notification of the Government of India, Ministry of Finance, Department of Revenue No. ----------- Customs, dated the -------------- 1999.

Bond with security/surety in terms of the said notification shall be executed before clearance of the goods from the Customs.

 

Signature
Seal of licensing authority
Date

Name and addresses of the factories where the resultant products for export are manufactured.

 

Name and addresses of factories where the ancillaries to the Resultant products for export are manufactured.

 

(a) MATERIALS TO BE IMPORTED UNDER THIS CERTIFICATE

 

(b) OTHER IMPORTED MATERIALS TO BE USED IN EXPORT PRODUCT

 

(This consist of------------------ pages)
Sl. No. ---------------- (EXP) Date of issue -----------
Port of Registration -----------------------------------
Issued to ----------------------------------------------
------------------------------------- --------------------------- (name and full address of the licence)

Materials imported against licence No. -------- dated ----------- issued by ---to the above licencee would be eligible for exemption from customs duties subject to the conditions specified in the notification of the Government of India, Ministry of Finance, Department of Revenue No. ------ Customs, dated the --------- 1999.

A Bond with security/surety in terms of the said notification shall be executed before clearance of the goods from the Customs.

 

Signature
Seal of licensing authority
Dated

Name and addresses of the factories where the resultant products for export are manufactured.

 

Name and addresses of factories where the ancillaries to the Resultant products for exports are manufactured.

 

Details of imports made:

 

Details of Exports made:

 

1. I/We hereby declare that information given in this statement is correct.

2. I/We hereby declare that no benefit under Rule 18 or Rule 19 of Central Excise (No.2)Rules, 2001 has been availed in respect of exports made under this DEEC.

Signature -----------------------------
Name of the Signatory------------------
Designation----------------------------
Full Address---------------------------

I have examined the applicant firm's actual imports and exports as Given above and find them as correct.

 

Signature---------------------
Seal--------------------------
Membership No.---------------

1 Inserted Vide Notification No. 46/2013-Cus Dated 26/09/2013

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

as amended by Notification Nos. 90/99-Cus dt 6-7-1999, 121/99-Cus dt 4-11-1999, 47/2000-Cus dt 25-4-2000, 120/2000-Cus dt 15-9-2000 (Corrected by corrigendum F.No. 605/7/2000-DBK dt 13/7/2000), 30/2001-Cus dt 12-3-2001, 59/2001-Cus dt 30-5-2001, 122/2001-Cus dt 3-12-2001, 9/2002-Cus dt 21-1-2002, 113/2002-Cus dt 16-10-2002, 125/2002-Cus dt 12-11-2002, 84/2003-Cus dt 27-5-2003, No.97/2003-Cus dt 25-6-2003 and No.63/2004-Cus dt 14-5-2004.