03/1988 DATE 14/01/1988
Exempts specified goods imported by 100% EOU situated in special Export Oriented Complex at Jhandewalan
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 specified in the Annexure to this notification (hereinafter referred to as
the said goods), when imported into India for the purposes of use in the manufacture of jewellery
for export out of India, by a hundred per cent export-oriented undertaking in the Special Export
Oriented Complex for the manufacture of jewellery at Jhandewalan, New Delhi (hereinafter referred to
as the said complex), from the whole of the duty of Customs leviable thereon under the First
Schedule to Customs Tariff Act, 1975(51 of 1975) and from the whole of the additional duty, if any,
leviable thereon under section 3 of the said Customs Tariff Act, subject to the following
conditions, namely:-
(i) the importer has been authorised to establish a hundred per cent export- oriented undertaking in
the said Complex for the purpose of manufacture of jewellery for export out of India;
(ii) the importer is covered, wherever required, by a general or specific permit issued in this
behalf by the Reserve Bank of India;
(iii) the importer has been granted necessary licence for the import of the said goods;
(iv) the importer carries out the manufacturing process or other operation in respect of jewellery
in customs bond and subject to such other conditions as the Assistant Commissioner of Customs or
Deputy Commissioner of Customs may, having regard to the circumstances of the case, specify in this
behalf;
(v) the importer satisfies the Assistant Commissioner of of Customs or Deputy Commissioner of
Customs that the said goods so imported shall be used in the manufacture of jewellery for export out
of Indai;
(vi) the importer agrees to execute a bond in such form and for such sum and with such authority as
may be specified by the Assistant Commissioner of Customs or Deputy Commissioner of customs binding
himself to fulfil the export obligation with the prescribed value addition and to fulfil, inter alia,
the conditions stipulated in this notification and in the Letter of Approval or Intent or the
Industrial Licence issued by the Board of Approval and to pay on demand an amount equal to the duty
of customs leviable on the said goods as are not proved to the satisfaction of the Assistant
Commissioner of Customs or Deputy Commissioner of Customs to have been used in the manufacture of
the jewellery for export;
Explanation – For the purposes of condition (vi), duty of customs leviable on said goods in
respect of gold and silver shall be limited to the duty as specified under notification of the
Government of India, Ministry of Finance, Department of Revenue, No.80/97-Customs, dated the 21st
October, 1997 as amended from time to time.
(vii) the importer agrees to bring the said goods into the said Complex and use them within the said
Complex in the manufacture of jewellery for export out of India;
(viii) save as otherwise provided in condition (xvi), the importer agrees to export out of India all
the jewellery manufactured within the said Complex for the period stipulated by the Board of
Approval or such extended period as may be specified by the Board of Approval;
(ix) on expiry of the period referred to in condition (ix) above, the imported shall pay the
following dities, namely:-
(a) duty of customs on capital goods on depreciated value but at the rates of duty of customs in
force on the date of payment of such duty.
(b) diuty of customs on raw materials and on components on the value at the time of import and at
the rates of duty of customs in force at the time of clearances;
(x) the importer shall maintain a proper account of import, consumption and utilisation of the said
goods and of exports made by him and shall submit such account to the Assistant Commissioner of
Customs Deputy Commissioner of Customs in such form, in such manner, at such intervals and within
such time, as may be specified by the Commissioner of Customs;
(xi) the importer agrees that the jewellery, including the waste, refuse and rejects thereof,
manufactured in the said Complex, shall not be brought to any other place in India, for whatever
purpose:
provided that scrap, dust or sweepings of gold or silver arising in the manufacturing process may be
forwarded to the Government Mint by the importer for conversion into standard gold or silver bars as
the case may be, and return to the said Complex in accordance with the procedure specified by the
Commissioner of Customs in this regard or such scrap, dust or sweepings of gold or silver, arising
in the manufacturing process may be cleared to the Domestic Tariff Area on payment of duty as
specified in the notification of the Government of India, Ministry of Finance, Department of
Revenue, No.80/97- Customs, dated the 21st October, 1997 on the gold or silver content, as the case
may be, in the said scrap, dust or sweepings;
Provided further that jewellery up to 10% of the value of export by the unit in the preceding year,
may be allowed clearance into the Domestic Tariff Area by the Development Commissioner in
consultation with the Assistant Commissioner of Customs or Deputy Commissioner of Customs, on
payment of applicable duties:
Provided also that exchange of machine-made gold or silver or platinum jewellery and chains, from
any place in India to the said complex with the gold or silver or platinum of the same purity and
quantity in weight as that of gold or silver or platinum jewellery or the chain, as the case may be,
permitted subject to such conditions as may be prescribed by the Assistant Commissioner of Customs
or Deputy Commissioner of Customs.
Provided also that exchange of plain hand-made gold or plain hand-made platinum jewellery, from any
place in India to the said complex with the gold or silver or platinum of the same purity and
quantity in weight as that of gold or silver or platinum jewellery, as the case may be, permitted
subject to such conditions as may be prescribed by the Assistant Commissioner of Customs or Deputy
Commissioner of Customs.
(xii) in the event of such a hundred per cent export-oriented undertaking ceasing its operations,
gold, other precious metals, alloys, gems and other material for the manufacture of jewellery shall
be transferred to such person, undertaking agency or authority, as the Government of India in the
Ministry of Commerce may agency in this behalf;
(xiii) the Assistant Commissioner of Customs or Deputy Commissioner Customs may allow, subject to
fulfilment of such conditions as he may specify, the loss of percentage of gold specified, in column
(2) of the Table given below or percentage of astage of silver as specified in column (3) of the
said Table, during the manufacture of jewellery of description specified in the corresponding entry
in column (1) of the said Table.
TABLE
| Description of jewellery |
Percentage of wastage of Gold or Platinum |
Percentage of wastage of Silver |
| (1) |
(2) |
(3) |
| a. Plain jewellery and articles thereof unstudded |
3.5% |
4.5% |
| b. Studded jewellery and articles thereof |
9.0% |
10% |
| c. Mountings and findings used in the plain jewellery |
3.5% |
4.5% |
| d. Mountings, wheather imported or indigenously procured /
manufactured, use in the studded Jewellery |
2.5% |
2.5% |
| e. Chain and Bangles manufactured by a fully mechanised
process and unstudded |
1.25% |
1.25% |
| f. Golg / Silver / Platinum medallions and coins (excluding
the coins of the nature of legal tender) |
0.25% |
0.25% |
Explanation:-
(a) Omitted
(b) The percentage of wastage shall be calculated with reference to the total quantity of gold or
silver, imported or issued for manufacture of the jewellery.
(c) No wastage shall be allowed for the jewellery procured under 8.34 of the Export and
Import policy.
(d) The expression ""Plain jewellery and articles thereof Unstudded shall include `Mangal
Sutra' containing gold and black beads and jewellery studded with imitation stones, and cubic
zirconia and semi-precious stones:
Provided that per gram value of the semi-precious stones utilised in the making of jewellery and
articles is less than the per gram value of gold.
(xiiib) Gem and Jewellery manufactured in the Jhandewalan Complex and sold to a foreign bound
passenger may be transferred in accordance with the Import and Export Policy ot the retail outlets
or showrooms set up in the departure longe or customs warehouse at Customs Airport at Delhi for
being handed over to the said passenger for the purpose of export, as per procedure specified by the
Commissioner of Customs in this regard;
(xiv) the export and import under this notification of the said goods other than capital goods may
be made by air-freight through Delhi Airport or through post parcel and the export under this
notification may also be made though authorized couriers as per procedure prescribed by the
Commissioner of Customs:
Provided that the free on Board value of any consignment through the authorized courier shall not
exceed rupees twenty lakhs.";
[old (xiv) the import and export of the said goods, other than the capital goods, underthis
notification shall be allowed only by air-freight through the Customs Airport at Delhi;]
(xv) gem and Jewellery manufactured in the said Complex may be supplied to the retail outlets or
show-rooms set up in the departure lounge at international air ports at Calicut, Chennai, Cochin,
Delhi, Hyderabad, Kolkata, Mumbai, Thiruvnanthapuram and visakhapatnam in accordance with Export and
Import Policy and the Handbook of Procedures Volume I, for sale to a tourist as defined in the
Baggage Rules, 1998, leaving India in accordance with para 16 of the Import and Export Policy 1st
April 1997-31st March 2002 published by the Government of India under Ministry of Commerce
Notification No.1/1997-2002 dated the 31st March, 1997 as amended from time to time, for sale to a
tourist as defined in the Tourists Baggage Rules, 1978, leaving India in accordance with the
procedure specified by the Commissioner of Customs;
(xvi) Deleted vide Customs NTF No. 40/99 Dt. 28-4-99)
[old (xvi) export under this notification may be made through post parcels, as per procedure
specified by the Commissioner of Customs;]
(xvii) the Assistant Commissioner of Customs or Deputy Commissioner of Customs, may subject to such
conditions and limitations as may be imposed by him and subject to the provisions of the
Export-Import Policy -
(a) permit the said goods or goods manufactured or packaged in the unit to be transferred or
supplied to another unit of the Jhandewalan Complex;
(b) permit re-export of imported goods and export of domestically procured goods including goods
generated out of the partial processing / manufacture from such goods.
(c) permit supply of unsuitable or broken cut and polished diamonds, and precious and semi-precious
stones or rough diamond 5% of value of imported or indiginously procured goods to the Domestic
Tarrif Area against the valid REP or GEM REP or Diamond Imprest Licences as applicable on payment of
appropriate duty;
(d) permit with the approval of Development Commissioner personal carriage of precious metals
jewellery or precious or semi-precious stones or beads as samples up to US $ 1,00,000 for export
promotion tours and temporary display abroad subject to the condition that the exporter would bring
back the jewellery or its sale proceeds within 45 days from the date of its clearance;
(dd) permit, with the approval of Development Commissioner, the export of jewellery for
holding, or participating in, an exhibition abroad subject to the condition that the jewellery not
sold shall be re-imported within 60 days of the closure of the exhibition;.
(e) permit export of jewellery including branded jewellery for display and sale in the permanent
shops set up abroad, provided that such items not sold abroad within 180 days, shall be re-imported
within next 45 days.
(f) permit clearance of used packing materials, such as car-board boxes and polyethylene bags of a
kind unsuitable for repeated use, without payment of any customs duty;
(g) permit clearance of parts and tools of machinery in Domestic Tariff Area without payment of duty
for repairs and return thereof.,
(h) permit clearance of capital goods on payment of an amount equal to the customs duty leviable on
such goods on the depreciated value thereof at the rate in force on the date of payment of such
duty;
Provided that the importer shall not be eligible to avail of the exemption applicable to goods
falling under heading No.98.01 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975),
or the exemption available to imported goods under the Export Promotion Scheme other than the Export
Promotion Capital Goods Scheme permitting import of capital goods at the rate of duty of 5% ad
valorem,in terms of notification in force at the time of de-bonding.
Explanation.- The depreciation in respect of capital goods covered by clause (h) above shall be
allowed for the period from the date of commencement of commercial production of the unit or where
such goods have been imported after such commencement, from the date such goods have come into use
for commercial production, upto the date of payment of duty.
2. Notwithstanding anything contained in paragraph 1 of this notification, the exemption contained
therein shall also apply to silver and gold falling under heading Nos. 71.06 and 71.08 respectively
of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) imported by the Metals and
Minerals Trading Corporation, Stat Trading Corporation, the Projects and Equipments of India Limited
and any agency authorised by Reserve Bank Of India for being supplied to the gem and jewellery units
in the said zone under the scheme for Export of gold/Silver and platinum jewellery and articles from
Export Processing Zone (EPZs) and from Export Oriented Unit (EOU) Complexes specified in Export and
Import Policy, 1 April, 1997-31 March, 2002, read with Chapter 8 of the Handbook of Procedures
Volume I, 1 April, 1997-31 March, 2002, published by the Government of India under Ministry of
Commerce Notification No. 1/1997-2002 dated 31st March, 1997 as amended from time to time:
Provided that where gold or silver is imported on behalf of a jewellery unit, the exemption shall
apply only if-
(a) the procedure as may be specified by the Commissioner of Customs is followed by such a jewellery
unit; and
(b) the conditions stipulated in paragraph 1 of this notification are complied with by such a
jewellery unit.
Provided further that in the event of the Gem and Jewellery units to whom the gold or silver has
been supplied, fails to export the jewellery made out of such gold or silver within the time
specified in the Export and Import Policy under the respective Scheme, the nominated agencies shall
deposit duty on the quantity of the gold or silver not contained in the jewellery exported at the
rate of duty of customs leviable on the gold or silver, as the case may be, as provided in the
Notification No.80/97-Customs, dated the 21st October, 1997 within seven days of the expiry of the
period within which the said jewellery manufactured out of the said gold or silver was supposed to
be exported.
EXPLANATION. - For the purposes of this notification,-
(a) "Board of Approval" means the Board referred to in clause (ii) of Explanation 2 to
sub-section (1) of section 3 of the Central Excises and Salt Act, 1944 (1 of 1944);
(b) "hundred per cent export-oriented undertaking" shall have the same meaning as in
clause (ii) of Explanation 2 to sub-section (1) of section 3 of the Central Excises and Salt Act,
1944 (1 of 1944);
(c) "Special Export Oriented Complex for the manufacture of jewellery at Jhandewalan, New
Delhi"" shall comprise of Blocks F and G of the Jhandewalan Flatted Factory Complex, New
Delhi.
ANNEXURE
Description of goods
1. Capital goods.
2. Raw materials.
3. Components.
4. Spare parts of machinery.
5. Consumables required for manufacture of goods.
6. Samples prototype, not exceeding two in number, of each type of articles covered by the
manufacturing activity.
7. Drawing, blue-prints, technical maps and charts, relating to the manufacturing activity.
8. Packaging materials.
9. Tools, Jigs, Guages, Fixtures, Noulds, Dies, Instruments and Accessories.
10. Goods re-imported within one year from the date of exportation from the Complex, for re-export
after repairs or reconditioning.
11. Office Equipments, spares and consumables thereof.
12. Old gold jewellery, old plain platinum jewellery, and old silver jewellery for repair or
remaking for re-export.