Notification No. 80/95-Cus Dated 31-03-95

Exemption on materials imported against Advance Licence issued on or after 1-4-1995.- 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 issued on or after 1st April, 1995 (hereinafter referred to as the said licence), 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) subject to the following conditions, namely :-

(i) that the materials imported are covered by a Quantity Based Duty Exemption Entitlement Certificate (hereinafter referred to as the said certificate), issued by the Licensing Authority on or after 1st April, 1995 in the form specified in the Schedule annexed to this notification in respect of the value, quantity, description, quality and technical characteristics;

Provided that where quantity allowed for a particular description of materials cannot be imported within the specified value under the said Certificate, the commissioner of Customs may allow adjustment of individual value within total value within total value.

(ii) that the importer at the time of clearance of the imported materials-

(a)Omitted

(b) 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 binding himself to pay on demand, an amount equal to the duty leviable on the imported materials but for the exemption contained therein, 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 the materials.


Provided that the bond shall not be necessary in respect of imports made after 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 of imported goods for debit.

(iv) That the imports and exports are undertaken through the sea ports at Mumbai, Calcutta, Cochin, Magdalla, Kakinada, Kandla, Managalore, Marmagoa, Madras, Nhava Sheva, Paradeep, Pipavav, Sikka, Tuticorin, Visakhapatnam, Dahej, Nagapattinam, Okha and Mundhra through any of the airports at Ahmedabad, Bangalore, Bhubaneshwar, Mumbai, Calcutta, Coimbatore, Delhi, Hyderabad, Jaipur, Madras, Srinagar, Trivandrum, Varanasi, Nagpur amd Cochin or through any of the Inland Container Deports at Agra, Bangalore, Coimbatore, Delhi, Faridabad, Gauhati, Guntur, Hyderabad, aipur, Jalandhar, Kanpur, Ludhiana, Moradabad, Nagpur, Pimpri (Pune), Pitampur Indore), Surat, Tirupur and Varanasi, Nashik, Rudrapu (Nashik), Dighi (Pune), Vadodara, Dulatabad (Wanjarwadi and Maliwada), Waluj (Aurangabad), Anaparthy (Andra Pradesh), Salem, Malanpur, Singapur, Jodhpur, Kota, Ahmedabad, Bhiwadi, Madhuri, Bhilwara, Pondicherry and Garhi Harsaru or through the Land Customs Stations at Ranaghat, Singhabad and Raxaul;

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 Seaport, Airport, or Inland Container Depot or through the Land Customs Station.

(v) that the export obligation is discharged, within the period specified in the said certificate or within such extended period as may be granted by the Licensing Authority or the Director General of Foreign trade, by exporting goods manufactured in India and the said certificate together with evidence of discharge of export obligation to the satisfaction of the Assistant commissioner of Customs is produced with within 30 days of the expiry of period allowed for fulfilment of export obligation or within such extended period as the Assistant Collector of Customs may allow,

(vi) exempt materials shall not be disposed of or utilised in any manner, except for utilisation in discharge of export obligation, before the export obligation under the said licence has been discharged in full.

Provided that Acetic Anhydride, Ephedrine, Psedoephedrine, Vitamins, Pen-G and their derivatives in respect of which the benefit of this notification is claimed shall be utilised by the importer in his own factory or in the factory of any other manufacturer indicated in the said certificate even after discharge of export obligation.

(vii) where benefit of the notification is sought by a person other than the licensee, such benefit shall be allowed against the said licence and the said certificate only if it bears endorsement of transferability by the Licensing Authority;

Provided that benefit of this notification shall not be allowed to a transferee of the licence for import of Acetic Anhydride, Ephedrine and pseudoephedrine.

(i) "Advance Licence" means the Quantity based Advance Licence issued in terms of paragraph 50 and Quantity based Advance Intermediate Licence issued under Paragraph 55 of the Export and Import Policy, April 1992-March 1997;

(ii) "Export and Import Policy April 1992-March 1997" means the Export and Import Policy 1 April 1992-31 March 1997 published vide Notification of the Government of India in the Ministry of Commerce No. 1 (RE-95)/92-97 dated the 31st March, 1995.

(iii) "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 authorised by him to grant a licence under the said Act;

(iv) "materials" means,-


(a) raw materials, components, intermediates, consumables, computer software and parts required for manufacture of export product specified in Part `E' of the said certificate (hereinafter in this Explanation, referred to as the export product); or in case of Quantity based Advance Intermediate Licence, for manufacture and supply to holder of a Special Imprest Licence for producing final goods referred to in sub-clauses (b), (c) and (d) of clause (iii) of the Explanation in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 128/94-Customs, dated the 10th June, 1994.

Provided that the benefit of this notification shall apply to import of Acetic Anhydride only against licences issued with the approval of Advance Licensing Committee in the office of the Director General of Foreign Trade;

(b) mandatory spares, within a value limit of 5% of the value of the licence, which are required to be exported along with the export product; and

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

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as amended by Notification Nos. 141/95-Cus dt 19-9-1995, 25/96-Cus dt 15-6-1996, 91/97-Cus dt 19-12-1997, 49/99-Cus dt 29-4-1999, 121/99-Cus dt 4-11-1999 (corrected by corrigendum drawback/P.N./3/99 dt 29-6-1999, Nos. 120/2000-Cus dt 15-9-2000, 30/2001-Cus dt 12-3-2001, 122/2001-Cus dt 3-12-2001, 113/2002-Cus dt 16-10-2002 and 125/2005-Cus dt 12-11-2002.