(1) the importer has been granted necessary licence for the import of goods for the said purposes;

(2) the importer carries out the said activities under customs bond and subject to such other conditions as may be specified by the Assistant Commissioner of Customs or Deputy Commissioner of Customs in this behalf;

(3) the importer exports out of India hundred per cent or such other percentage, as may fixed by the Standing Committee, of software developed, data entry and conversion done, data processed, data analysed and controlled or data management done or call centre services rendered wholly or partly from the goods for the period stipulated by the Standing Committee or such extended period as may be specified by the Standing Committee;

(4) the importer agrees -



(a) to bring the goods into the Complex and use them within the Complex in connection with the said activities for export, using data communication link or in the form of physical export;

(b) not to move the goods from the Complex without the approval of the Assistant Commissioner of Customs or Deputy Commissioner of Customs;

(c) to export out of India all software developed, data entered, conversion done, data processed, data analysed and controlled, data management done or call services rendered, or transfer such developed software, data entered and converted, data processed, data analysed and controlled, data management done or call services rendered to any unit within the same complex with prior approval of Assistant Commissioner of Customs or Deputy Commissioner of Customs on the recommendation of the Chief Executive of the Software Technology Park Society (hereinafter referred to as the Society), set up by the Government of India in the Department of Electronics, for the said Complex;
 

(5) the importer shall produce a certificate to the Assistant Commissioner of Customs or Deputy Commissioner of Customs from the Chief Executive of the Society to the effect that the goods are to be installed or used in the unit set up in the Complex, and that the import of such goods have been authorised by the Standing Committee;

(6) Without prejudice to any other provisions contained in this notification, the Assistant Commissioner of Customs or Deputy Commissioner of Customs may, subject to such conditions and limitations as he may deem fit to impose under the circumstances of the case for the proper. safeguard of the revenue interest and also subject to such permission of the Standing. Committee where it is exclusively required under the Export and Import Policy, as hereinafter referred to in this condition, allow the said unit to clear any of the said goods for being taken to any other place in India in accordance with the Export and Import Policy, 1 April, 1997 - 31 March, 2002 published by the Government of India under Ministry of Commerce Notification No. 1/1997-2002, dated 31-3-1997, as amended from time to time (hereinafter in this notification referred to as the said Export & Import Policy),-




(a) such clearance of capital goods, material handling equipments, office equipments and captive power plants may be allowed on payment of an amount equal to the customs duty leviable on such goods on the depreciated value thereof and at the rate in force on the date of payment of such duty;

Provided that in the case of capital goods, the Assistant Commissioner of Customs or Deputy Commissioner of Customs may, subject to such conditions as he may specify, permit destruction of such capital goods without payment of duty inside the complex, or outside the said complex, where it is not possible or permissible to destroy the same within the said complex, in the presence of custom officer.

(b) such clearance of goods (including containers, suitable for repeated use) other than those specified in clause (a) may be allowed on payment of customs duty on the value at the time of import and at rates in force on the date of payment of such customs duty;

(c) such clearance of used packing materials such as cardboard boxes, polythelene bags of a kind unsuitable for repeated use may be allowed without payment of any customs duty;
Provided that the importer shall not be eligible to avail of the exemption applicable to goods falling under heading 98.01 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), or the exemption available to the imported goods under any Export Promotion Schemes other than the Export Promotion Capital Goods (EPCG) Scheme permitting import of capital goods at the rate of duty of 5% ad valorem in terms of notifications in force at the time of debonding.

EXPLANATION. - The depreciation in respect of goods covered by clause (a) 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.

(7) the importer executes a bond, in such form and for such sum and with such authority as may be prescribed by the Assistant Commissioner of Customs or Deputy Commissioner of Customs, binding himself to fulfil the export obligations and conditions stipulated in this notification, and those under the said Export and Import Policy as amended from time to time, and conditions for establishment of Technology Park for software export as specified by the Department of Electronics, and to pay on demand an amount equal to the duty leviable on the goods and interest at the rate of twenty per cent per annum on the said duty from the date of important or procurement of the said goods till the date of payment of such duty, if-


(i) in the case of capital goods, such goods are not proved to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs to have been installed or otherwise used within the bonded premises or re-exported within a period of one year from the date of importation or procurement thereof or within such extended period not exceeding five years as the Assistant Commissioner of Customs or Deputy Commissioner of Customs may, on being satisfied that there is sufficient cause for not using them as above within the said period, allow;

(ii) in the case of goods other than capital goods, such goods are not proved to the satisfaction of the Assistant Commissioner to Customs or Deputy Commissioner of Customs to have been used in connection with the production or packing of goods for export out of India or re-exported or cleared for home consumption within a period of one year from the date of importation or procurement thereof or within such extended period as the Assistant Commissioner of Customs or Deputy Commissioner of Customs may, on being satisfied that there is sufficient cause for not using them as above; allow;

(iii) in the case of


(a) goods produced or packaged, such goods have not been exported out of India, and-

(b) unused goods (including containers suitable for repeated use) as have not been exported or cleared for home consumption,within a period of one year from the date of importation or procurement of such goods or within such extended period as the Assistant Commissioner of Customs or Deputy Commissioner of Customs may, on being satisfied that there is sufficient cause for not exporting such goods within the said period, allow;

(iv) in the case of raw materials components, spares and consumables (other than capital goods) imported or procured duty free, the unit fails to achieve Net Foreign Exchange Earning as a percentage of Exports (NFEP) and Export performance (EP) as specified in Appendix-1 of the said Export and Import Policy, with one year of importation or procurement of such goods or within such extended period, not exceeding one year, as the Assistant Commissioner of Customs or Deputy Commissioner of Customs may, on being satisfied that there is sufficient cause, allow:

Provided that the Commissioner of Customs may extend the period for achievement of Net Foreign Exchange as a Percentage of Exports (NFEP) or Export Performance (EP) for further period not exceeding five years from the date of importation or procurement;".

(8) the procedure, as may be prescribed by the Commissioner of Customs, is followed by such unit;

(9) Notwithstanding anything contained in this notification, the exemption contained herein shall also apply to goods which on importation into India are used for the development of software, data entry and conversion, data processing, data analysis and control, data management or rendering of call centre services within the complex and such software, data entry and conversion, data processing, data analysis and control, data management or call centre services even if not exported out of India are allowed to be sold in India in physical form under and in accordance with the said Import and Export Policy, as amended from time to time, and in such quantity and subject to such other limitations and conditions as may be specified in this behalf by the Standing Committee on payment of duty of excess leviable on such software, data entry and conversion, data processing, data analysis and control or data management under section 3 of the Central Excise Act, 1944 (1 of 1944), or where such software, data entry and conversion, data processing, data analysis and control data management is non-excisable, customs duty equal in amount to that leviable on the inputs obtained under this notification and used for the purpose of manufacture or development of such software, data entry and conversion, data processing, data analysis and control data management, which would have been paid but for the exemption under this notification, shall be payable at the time of clearance of such software, data entry and conversion, data processing, data analysis and control data management:

Provided that the sale of software, data entry and conversion, data processing, data analysis and control or data management or call centre services shall be allowed through data communication link or telecommunication link subject to such conditions as may be specified by the commissioner of Customs;


(10) the Commissioner of Customs may, subject to the conditions and limitations stipulated in the said Import and Export Policy as amended from time to time, permit the goods imported into India for the purpose aforesaid or the software developed, data entered and converted, data processed, data analysed and controlled or data management done to be taken temporarily outside the Complex, without payment of duty, for repairs or display, as the case may be, and the importer shall be bound to comply with such conditions and limitations.

(11) the Assistant Commissioner of Customs or Deputy Commissioner of Customs may, as per procedure specified by him allow a unit to re-export the goods imported by it.

(12) The telematic infrastructure equipment, if any, imported by the importer, may also be utilised for export by other units engaged in the said activities.

(13) the Assistant Commissioner of Customs or Deputy Commissioner of Customs may allow the supply / transfer of goods imported by a unit to another hundred per cent export oriented undertaking or to a unit in the Export Processing Zone / Free Trade Zone for the purpose of the said activities for export as per procedure specified by him in this regard and necessary permission granted by the Chief Executive of the Software Technology Park;

(14) the Commissioner of Customs may allow the infrastructural equipments, if any imported by the importer to be linked to a research or educational institute (other than an institute engaged in commercial activities) as may be approved by the said Committee for research, education or any such non-commercial purposes as per procedure specified by him in this regard and necessary permission granted by the Standing Committee.

(15) the Assistant Commissioner of Customs or Deputy Commissioner of Customs may permit use of computer system for training purpose (including commercial training) subject to the condition that the unit had achieved prescribed Net foreign exchange earnings as percentage of exports and that no computer terminal shall be installed outside the bonded premises for the purpose.

(16) the Assistant Commissioner of Customs or Deputy Commissioner of Customs, subject to approval of the Commissioner of Customs, may allow diesel generating sets/ captive power plants, central air-conditioning equipments, uninterrupted power supply system, networking equipments, data transfer protocol equipments, EPABX, Fax, photocopier equipment and security system imported by a unit to be utilised by other unit(s) under Software Technology Park Scheme belonging to the owner of the importer unit and located in the same compound or nearby/adjoining premises for the purpose of said activities and export thereof.

2. Notwithstanding anything contained in paragraph 1 of this notification, the exemption contained therein shall also apply to goods imported by the Society for creating the Central facility and software development, data entry and conversion, data processing, data analysis and control data management or call centre services rendering units in the Complex, subject to satisfaction of conditions under paragraph 1 of this notification.

3. Notwithstanding anything contained in paragraph 1, in the case of units engaged in the said activities, the exemption contained therein shall also apply to goods imported by such unit for any or all of the said purposes for export and for providing consultancy services for any or all the such activities `on site' abroad:

Provided that -

(a) the conditions stipulated in this notification are complied with by said unit; and

(b) the procedure specified by the Commissioner of Customs is followed.