Notification No. 94/2004-Cus Dated 10-09-2004
Exemption 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 1[Advance Licence for Annual Requirement or Advance Authorisation for Annual Requirement] Old[Advance Licence for Annual Requirement] (hereinafter referred to as the said license) with actual user condition in terms of Paragraph 4.1.10 of the Foreign Trade Policy 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 20[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,-
(1) that the 1[said licence or authorisation] Old[said licence] shall be issued to a manufacturer exporter or merchant exporter by the 1[Licensing Authority or Regional Authority] Old[Licensing Authority];
10[2. Notwithstanding anything contained in the notification, the actual user condition specified in condition numbers (8) and (10) shall not be applicable in respect of authorisation issued for import of raw sugar for imports made from 17th February, 2009 till 30th September, 2009 and the export obligation may also be fulfilled by procuring white sugar from any other factory with effect from the 17th February, 2009.]
that the 1[said licence or authorisation] Old[ said licence] is issued for an export product group, specifying the Cost Insurance Freight Value of import permitted against it and the Free on Board Value of export obligation to be achieved. The 1[said licence or authorisation] Old[ 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 Foreign Trade Policy;
8[Provided that the authorizations issued on the basis of self declaration where Standard Input Output Norms are not fixed, shall also be valid for import of inputs required for the manufacture of export products provided the authorization holder shall prove to the satisfaction of the jurisdictional Assistant Commissioner of Customs or Deputy Commissioner of Customs, as the case may be, that an application in Aayat Niryat form along with documents specified therein has been submitted to the Director General of Foreign Trade, in terms of para 4.7 of the Hand Book of Procedure (Volume I) of Foreign Trade Policy before making the first shipment:
Provided further that in respect of the inputs specified in paragraph 4.24A(a)(i)of the Hand Book of Procedure (Volume I) of Foreign Trade Policy, the material permitted in the said authorization shall be of the same quality, technical characteristics and specifications as the materials used in the export of the resultant product:
Provided also that the exporter shall give declaration with regard to the technical characteristics, quality and specifications of materials used in the export of resultant product, in the shipping bill.]
Old3
[Provided that in respect of the inputs specified in Paragraph4.24A (b) of the
Handbook of Procedures Vol. I of the Foreign Trade Policy, the materials
permitted in the said authorisation shall be of the same quality, technical
characteristics and specifications as the materials used in the export of
resultant
products:
Provided further that the exporter shall give declaration, with regard to the technical characteristics, quality and specifications of materials used in the export of resultant products, in the shipping bill;]
1[(3) that where the import takes place after fulfillment of export obligation, the shipping bill number and date and quantity and free on board (FOB) value of the resultant product are endorsed on the said authorisation.]
Old[(3) that an Actual User Duty Exemption Entitlement Certificate (hereinafter referred to as the said certificate) is issued to the holder of thesaid 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 Part-1 of the said certificate, as given in the Schedule to this notification, by the proper officer;]
(4) 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 or Assistant 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 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 the bond shall not be necessary in respect of imports made after the discharge of export obligation in full;
(5) that the 1[said licence or authorisation] Old[ said licence] 1 [is] Old [and the said certificate are] produced before the proper officer of customs at the time of clearance for debit the quantity and value of imports;
(6) that the imports and exports 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 5[Vadinar and 9[Haldia (Haldia Dock complex of Kolkata port) 12[Krishnapatnam 18[Ennore (Tamil Nadu), Karaikal (Union territory of Puducherry) and Kattupalli (Tamil Nadu)] Old[14[Ennore (Tamil Nadu) and Karaikal (Union territory of Puducherry)]] old[and Ennore (Tamil Nadu)]] Old[and Krishnapatnam]] Old[Haldia (Haldia Dock Complex of Kolkata Port)]] Old[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, 4[Rajasansi (Amritsar), Lucknow (Amausi) 17[Indore, Dabolim (Goa) and Visakhapatnam] [Old5[[Indore and Dabolim (Goa)]] Old[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), 11[Waluj (Aurangabad),Talegoan(District Pune), Dhannad Rau (District Indore), Kheda (Pithampur, District Dhar) 12[Patli (Gurgaon), Irugur Village (Tamil Nadu), Thudiyalur (Tamil Nadu), Chettipalayam(Tamil Nadu) 13[Veerapandi (Tamil Nadu) 15[Marripalem Village in Taluk of Edlapadu, District Guntur 16[Tondiarpet (TNPM), Chennai and Irungattukottai, SIPCOT Industrial Park, Kattrambakkam Village, Sriperumbudur Taluk, Kanchipuram District, Tamil Nadu]Old[and Tondiarpet (TNPM), Chennai] ]old [ and Marripalem Village in Taluk of Edlapadu, District Guntur]] Old[and Veerapandi (Tamil Nadu)]] Old[and Patli (Gurgaon)]] Old[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, Raipur , Mandideep (District Raisen), 4[Durgapur (Export Promotion Industrial Park), Babarpur and Loni (District Ghaziabad)] Old[Durgapur (Export Promotion Industrial Park) and Babarpur] ] Old[Bhadohi and Raipur]] or through the Land Customs Station at Ranaghat, Singhabad, Raxaul, Jogbani, Nautanva (Sonauli), [Petrapole, Mahadipur, Nepalganj Road, Dawki, Agartala, 1[Sutarkhandi, Amritsar Rail Cargo and Attari Road] Old[Sutarkhandi and Amritsar Rail Cargo]] or Special Economic Zone as specified in the notification issued under section 76A of the Customs Act, 1962 (52 of 1962):
[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 a public notice and subject to such conditions as may be specified by him, permit import and export through any other sea port, airport, or Inland Container Depot or through a land customs station;
(7) that sourcing of the imported materials from Private Bonded Warehouses set up under paragraph 2.28 of the Foreign Trade Policy would be allowed;
(8) that the export obligation is discharged within the period as 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 and in respect of which facility under rule 18 or sub-rule (2) of rule 19 of the Central Excise Rules, 2002 has not been availed. 2Omitted [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 Part 2 of the Schedule to this notification, of the said certificate by the proper officer:]
Provided that an Annual Advance Intermediate Licence holder shall discharge export obligation by supplying the resultant product to the ultimate exporter in terms of Para 4.1.3 of the Foreign Trade Policy;
(9) that the importer produces evidence of discharge of export obligation to the satisfaction of the Deputy Commissioner of Customs or Assistant 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 Deputy Commissioner of Customs or Assistant Commissioner of Customs, may allow;
(10) that the exempt materials shall not be disposed of or utilised in any manner except for utilization 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;
# Provided further that where the Bond filed under condition (4) 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 6[except to the unit availing the benefit of notifications, 49/03-CE and 50/03-CE both dated 10.6.03] 7[32/99-CE dated 8.7.1999, 33/99-CE dated 8.7.1999, 8/04-CE dated 21.1.2004, 20/07-CE dated 25.4.2007,56/02-CE dated 14.11.2002,57/02-CE dated 14.11.2002, 71/03-CE dated 9.9.2003, 56/03-CE dated 25.6.2003 , 39/01-CE dated 31.7.2001.] 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)
(11) that in relation to the 1[said licence or authorisation] Old[ said licence] issued to a manufacturer exporter or 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 said certificate and the bond required to be executed by the importer in terms of condition (4) 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 (10).
19[(3). 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 12th August, 2013.]
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 as amended from time to time;
(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, computer software and parts which are required for manufacture of resultant product;
(b) mandatory spares within a value limit of 10 percent of the value of the licence which are required to be exported alongwith the resultant product;
(c) 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.
2. [THE SCHEDULE
PART – 1
(IMPORT)
FORM
ACTUAL USER DUTY EXEMPTION ENTITLEMENT CERTIFICATE
(This consists 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 and Company Affairs, Department of Revenue No…….Customs, dated the …………….
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 :
PART – A
Name and addresses of the factories where the resultant products for export are manufactured.
PART – B
Name and addresses of factories where the ancillaries to the Resultant products for export are manufactured.
PART – C
List of Materials of Import
(a) MATERIALS TO BE IMPORTED UNDER THIS CERTIFICATE
|
Sl.No. |
Item of Import |
Quality |
Technical-Characteristics |
|
(1) |
(2) |
(3) |
(4) |
|
|
|
|
|
|
Quantity |
CIF Value in Indian Rs./ in Equivalent to US $ |
S.No. of the resultant products in part E (to be filled at the time of export) |
|
(5) |
(6) |
(7) |
|
|
|
|
(b) OTHER IMPORTED MATERIALS TO BE USED IN EXPORT PRODUCT
|
Sl.No. |
Description |
Quantity |
Value |
|
(1) |
(2) |
(3) |
(4) |
|
|
|
|
|
PART – D
Particulars of Import of Materials
|
Sl.No. |
No.of the materials in Part-C |
Bill of Entry No.date and Customs House Of Import |
Description |
Quantity and net weight |
|
(1) |
(2) |
(3) |
(4) |
(5) |
|
|
|
|
|
|
|
CIF Value |
Duty leviable but for exemption Heading of the First Schedule to the Customs Tariff Act, 1975 and Heading No. in the Schedule to the Central Excise Tariff Act 1985 for levy of Additional duty |
Rate of duty |
Amount of duty |
Signature of the Customs Officer with Name, Desig nation & Seal |
|
(6) |
(7) |
(8) |
(9) |
(10) |
|
|
|
|
|
|
(Parts E and F figure in the Export Part of this DEEC)
PART – G
Duties paid on materials in respect of which the conditions of said notification are not complied with.
|
Sl.No. |
Sl.No.in Part D under which the import of the materials has been entered |
Description, Quantity and value of materials on which duty paid |
Rate of duty leviable (i) Basic (ii) Additional (iii) Others |
|
(1) |
(2) |
(3) |
(4) |
|
|
|
|
|
|
Amount of (i) Duty (ii) Interest |
Particulars of duty paying documents |
Signature of the Customs Officer |
|
(5) |
(6) |
(7) |
|
|
|
|
PART-2 (EXPORT)
ACTUAL USER DUTY EXEMPTION ENTITLEMENT CERTIFICATE
(EXPORT) (This consists of……………………pages)
Sl.No…………..(EXP) date of issue…………………………
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…..
A Bond with surety/security in terms of the said notification, shall be executed before clearance of the goods from the Customs.
Signature
Seal of Licensing Authority
Date :
PART – A
Name and addresses of the factories where the resultant products for export are manufactured.
PART – B
Name and addresses of factories where the ancillaries to the Resultant products for export are manufactured.
(Parts C and D figure in the Import Part of this DEEC)
PART – E
Resultant products
|
Sl.No. |
Item of Import |
Quality |
Technical-Characteristics |
|
(1) |
(2) |
(3) |
(4) |
|
|
|
|
|
|
Quantity |
CIF Value in Indian Rs./ in equivalent to US $ |
S.No. of the resultant products in part E (to be filled at the time of export) |
|
(5) |
(6) |
(7) |
|
|
|
|
PART – F
Particulars of exports
|
Sl.No. |
S.No. of the resultant product in Part-B |
Name of the Custom House of Shipment |
Shipping Bill No.and date |
Name of the Vessel and outward entry of the vessel |
|
(1) |
(2) |
(3) |
(4) |
(5) |
|
|
|
|
|
|
|
Quantity |
Net weight of the product |
Description as per the Shipping Bill |
F OB value in Rs/ US$ |
Signature of Customs Officer with name, designation and seal and remarks if any |
|
(6) |
(7) |
(8) |
(9) |
(10) |
|
|
|
|
|
|
PART – H
Statement of Imports and Exports made
Details of imports made:
|
S.No. |
S.No.of Part-C |
Description |
Quantity imported |
CIF value in Rs./in equivalent to US $ |
|
(1) |
(2) |
(3) |
(4) |
(5) |
|
|
|
|
|
|
Details of Exports made :
|
S.No |
S.No.in Part-C |
Description |
Quantity exported |
FOB value in Rs./in equivalent to US $ |
|
(1) |
(2) |
(3) |
(4) |
(5) |
|
|
|
|
|
|
I/We hereby declare that information given in this statement is correct.
I/We hereby declare that no benefit under rule 18and Rule 19 (2) of Central Excise Rules, 2002 has been availed in respect of exports made under this DEEC.
Signature
Name of the Signatory
Designation
Full Address
Certificate of Chartered Accountant/Cost Accounts
I have examined the applicant firm’s actual imports and exports as given above and find them as correct.
Signature
Seal
Membership No. ]
1. Substituted vide Notification No. 43/2006-Cus Dated: 5-05-2006
2. Omitted vide Notification No. 43/2006-Cus Dated: 5-05-2006
3. Inserted vide Notification No. 88/2006-Cus Dated 31/8/2006
4. Substituted vide Notification No. 63/2007-Cus Dated 4/5/2007
5. Substituted vide Notification No. 70/2008-Cus Dated 19/5/2008
6. Inserted vide Notification No. 70/2008-Cus Dated 19/5/2008
7. Inserted vide Notification No. 86/2008-Cus Dated 16/7/2008
8. Substituted vide Notification No. 16/2009-Cus Dated 19/2/2009
9. Substituted vide Notification No. 19/2009-Cus Dated 24/2/2009
10. Inserted vide Notification No. 22/2009-Cus Dated 2/3/2009
11. Substituted vide Notification No. 123/2009-Cus Dated 10/11/2009
12. Substituted vide Notification No. 93/2010-Cus Dated 14/09/2010
13. Substituted vide Notification No. 40/2011-Cus Dated 19/05/2011
14. Substituted vide Notification No. 37/2012-Cus Dated 24/05/2012
15. Substituted vide Notification No. 40/2012-Cus Dated 14/06/2012
16 Substituted vide Notification No. 50/2012-Cus Dated 10/09/2012
17 Substituted vide Notification No. 4/2013-Cus Dated 14/02/2013
18. Substituted vide Notification No. 20/2013-Cus Dated 03/04/2013
19 Inserted vide Notification No. 46/2013-Cus Dated 26/09/2013
20. Substituted vide Notification No. 26/2017-Cus Dated 29/06/2017
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, 88/2006 dt. 31/8/2006, 63/2007-Cus dt 4/5/2007, 70/2008-Cus dt. 19/5/2008 ,86/2008-Cus dt. 16/7/2008 ,16/2009-Cus dt. 19/2/2009 ,19/2009-Cus dt. 24/2/2009, 22/2009-Cus dt. 2/3/2009 ,123/2009-Cus dt. 10/11/2009, 93/2010-Cus Dt. 14/09/2010, 40/2011-Cus dt. 19/05/2011 , 37/2012-Cus Dt. 24/05/2012. 40/2012-Cus Dt.14/06/2012 and 50/2012-Cus Dt 10/09/2012]