Notification No. 47/2002-Cus Dated 22-04-2002
Exemption on material imported against Advance Licence for deemed exports thereunder for manufacture of final products.-
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 required for the manufacture of the final goods when imported
into India, from whole of the duty of Customs leviable thereon, under the First
Schedule to the Customs Tariff Act, 1975 (51 of 1975), and from the whole of the
additional duty leviable thereon under section 3 of the said Customs Tariff Act
subject to the following conditions, namely:-
(1) that the importer has been granted Advance Licence for deemed export by the
Licensing Authority for import of the said materials for the aforesaid purpose
in terms of paragraph 4.1.1. of the Export and Import Policy (hereinafter
referred to as the said licence), and the said licence is produced by the
importer at the time of clearance for debit by the proper officer of the
Customs;
(2) that the said licence contains the endorsements specifying inter alia
(a) the description, quantity and value of materials allowed to be imported
under the said licence;
(b) the description and quantity of materials allowed to be imported duty free;
and
(c) the description and quantity of final goods to be manufactured out of, or
with the imported materials ;
(3) the importer executes 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 imported materials but for the exemption contained
herein, in respect of which the conditions specified in this notification have
not been complied with together with interest at the rate of 15% per
annum from the date of clearance of materials;
(In condition (3) bold figure has been substituted vide Cus Ntf No.113/2002
Date 16/10/2002)
(4) that the importer produces evidence of having discharged obligation to
supply final goods to the satisfaction of the said Assistant Commissioner of
Customs or Deputy Commissioner of Customs within a period of thirty days from
the expiry of the period allowed for fulfillment of obligation to supply final
goods or within such extended period as the (Assistant Commissioner of Customs
or Deputy Commissioner of Customs) may allow; and
(5) that the exempt materials are utilised for the manufacture of final goods
and no portion of such materials shall be loaned, transferred, sold or disposed
of in any other manner; Provided that where final goods in respect of which the
said materials have been imported have already been manufactured and supplied as
required under this notification, the importer may use the said materials for
the manufacture of any other goods;
(6) that the imports are undertaken through sea ports at Mumbai, Sikkim, Kolkata,
Cochin, Kandla, Mangalore, Marmagao, Chennai, Nhava Sheva, Paradeep, Tuticorin,
Visakhapatnam Kakinada, Magdalla, Dahej, Mundhra, Nagapattinam, Okha, Pipavav,
Bedi (including Rozi �Jamnagar), Old
[Muldwarka and Porbander] 1New [Muldwarka,
Porbander, Dharamtar 4 [Vadimar and 5[Haldia
(Haldia Dock complex of Kolkata port) and Krishnapatnam] Old[Haldia (Halida
Dock Complex of Kolkata Port)]] Old [and
Vadinar]] or through any of the airports at Ahmedabad, Bangalore,
Mumbai, Kolkata, Bhubaneshwar, Coimbatore, Nagpur, Cochin, Delhi, Hyderabad,
Jaipur, Chennai, Srinagar, Trinandram, Varanasi, 2[Rajasansi
(Amritsar), Lucknow (Amausi) 4 [Indore and
Dabolim (Goa)] Old [and Indore]] Old[Rajasansi (Amritsar) and
Lucknow (Amausi)]] or through any of the Inland Container Depots at Bangalore,
Coimbatore, Delhi, Guwahati, Hyderabad, Kanpur, Ludhiana, Moradabad, Pimpri (Pune),
Pitampur (Indore), Agra, Faridabad, Jaipur, Guntur, Nagpur, Varanasi, Surat,
Jodhpur, Salem, Tirupur, Singanallur, Waluj, Bhiwadi, Malanpur, Nasik, Rudrapur
(Nainital), Dighi (Pune), Vadodara, Daulatabad (Wanjarwadi and Maliwada), Waluj
(Aurangabad), Anaparthi (Andhra Pradesh), Kota, Udaipur, Ahmedabad, Jalandhar,
Bhilwada, Pondichery, Garhi Harsaru, Bhatinda, Dappar (Dera Bassi), Chheharata (Amritsar),
Karur, Miraj, Rewari,
Bhusawal, Jamshedpur, Surajpur, Radri,
Tuticorin, Kundli, Old[Bhadohi and Raipur] 1New
[Bhadohi,
Provided
that the Commissioner of Customs may, by special order and subject to such
conditions as may be specified by him, permit import through any other
sea port, airport 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)
(Second proviso has been inserted vide Cus Ntf No.84/2003 Date 27/05/2003)
2. The said materials required for the manufacture of the final goods, when
imported into India and supplied to Export Oriented Unit, Special Economic Zone,
Electronic Hardware Technology Park and Software Technology Park, shall be
exempted from the whole of the duty of customs leviable thereon, under the First
Schedule to the said Customs Tariff Act and from the whole of the additional
duty, safeguard duty and anti-dumping duty leviable thereon respectively under
section 3, 8 and 9A of the said Customs Tariff Act subject to the conditions
mentioned in paragraph 1.
(This para has been inserted vide CUS NTF NO.57/2003 DATE 01/04/2003)
Explanation � In this notification,
(i) �Licensing Authority� means the Director General of Foreign Trade
appointed under section 6 of the Foreign Trade (Development and Regulation) Act,
1922 (22 of 1992) or an officer authorised by him to grant a licence under the
said Act;
(ii) �materials� means -
(a) raw materials, components, intermediates, consumables, computer software and
parts required for the manufacture of final goods;
(b) packing materials required for the packing of final goods to be supplied;
(iii) �final goods� means,-
(a) supplies against Advance Licence/DFRC under the Duty Exemption/Remission
Scheme;
(b) supplies made to 100 percent Export Oriented Units (EOUs) or units located
in Export Processing Zones (EPZ) or Special Economic Zones (SEZ) or Software
Technology Parks (STP) or Electronic Hardware Technology Parks (EHTP);
(c) supply of capital goods to the holders of licence under Chapter 5 of the
Export and Import Policy;
(d) supplies made to projects financed by multilateral or bilateral
agencies/funds as notified by the Government of India in the Ministry of Finance
(Department of Economic Affairs) under international competitive bidding in
accordance with the procedures of those agencies/funds where the legal
agreements provide for tender evaluation without including the customs duty;
(e) supply of capital goods including capital goods in unassembled/dissembled
condition including plant, machinery, accessories, tools, dies and such goods
which are used for installation purposes till the stage of commercial
production, and spares to the extent of 10 percent of the FOR value of such
capital goods for fertiliser plant;
(f) supply of goods to any project or purpose in respect of which the Ministry
of Finance, by a notification, permits the import of such goods at zero customs
duty coupled with the extension of benefits specified in Chapter 8 of the Export
and Import Policy for domestic supplies;
(g) supply of goods to power and refinery projects not covered in (f) above;
(h) supply of Marine Freight Containers by 100 percent Export Oriented Units
(Domestic freight containers � manufacturers) provided the said containers are
exported out of India within 6 months or such further period as permitted by
Customs;
(i) supplies made to projects funded by United Nation agencies;
(j) supplies made to nuclear power projects through competitive bidding;
(iv) �Export processing zone�, �hundred percent export oriented units�
and �special economic zones� have the same meaning as in Explanation 2 to
Section 3 of the Central Excise Act, 1944 (1 of 1994) respectively;
(v) �Export and Import Policy� means Export and Import Policy 2002-2007,
notified vide Notification No.1/2002-2007, dated the 31 st March, 2002.
1. Amended vide Notification No. 41/2006-Cus, Dt. 5/05/2006
2. Substituted vide Notification No. 63/2007-Cus Dated 4/5/2007
3. Substituted vide Notification No. 116/2007-Cus Dated 30/11/2007
4. Substituted vide Notification No. 63/2008-Cus Dated 8/5/2008
5. Substituted vide Notification No. 19/2009-Cus Dated 24/2/2009
as amended by [Notification Nos. 113/2002-Cus dt 16-10-2002, 57/2003-Cus dt 1-4-2003, 84/2003-Cus dt 27-5-2003, 97/2003-Cus dt 25-6-2003, 63/2004-Cus dt 14-5-2005, 46/2005-Cus dt 17-5-2005, 77/2005-Cus dt 22-8-2005 , 97/2005-Cus dt 17-11-2005, 41/2006-Cus, dt. 5/05/2006, 63/2007-Cus dt 4/5/2007 ,116/2007-Cus Dt. 30/11/2007 and 19/2009-Cus dt. 24/2/2009.]