Notification No. 53/2003-Cus Dated 01-04-2003

Exemption on goods imported against Duty free Entitlement Credit Certificate. - 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 goods when imported into India against a duty free entitlement credit certificate (hereinafter referred to as the said certificate ) issued under paragraph 3.7.2.1 (vi) of the Export and Import Policy,-

(a) from the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act 1975 (51 of 1975);

(b) from the whole of the additional duty leviable thereon under sub-section (1) of section 3 of the said Customs Tariff Act; and

(c) from the whole of the special additional duty of customs leviable thereon under section 3A of said Customs Tariff Act,

subject to the following conditions, namely

(1) that the said certificate has been issued by the licensing authority to a status holder specified in para 3.7.2 of the Export and Import Policy;

(2) that the said certificate and goods imported against it shall not be transferred or sold:

Provided that where the goods are imported by a merchant exporter having supporting manufacturer(s) whose name and address is specified on the license, the said goods may be utilised by the said supporting manufacturer(s).

(3) that in respect of capital goods, a certificate from jurisdictional Deputy Commissioner of Central Excise, Assistant Commissioner of Central Excise or an independent Chartered Engineer, as the case may be, is produced confirming installation and use of capital goods in the importer’s factory or premises, within the six month from the date of imports or within such extended period as the Deputy Commissioner of Customs or Assistant Commissioner of Customs may allow:

Provided that where the capital goods are imported by a merchant exporter having supporting manufacturer(s), the capital goods may be installed in the factory or premises of the said supporting manufacturer(s);

(4) that the said certificate shall be produced before the proper officer of customs at the time of clearance for debit of the duties leviable on the goods but for this exemption:

Provided that exemptions from duty shall not be admissible if there is insufficient credit in the said license for debiting the leviable on the goods but for this exemption;

(5) that the imports against the said certificate are undertaken through sea ports at Mumbai, Kolkata, Cochin, Magdalla, Kakinada, Kandla, Mangalore, Marmagoa, Madras, Nhava Sheva, Paradeep, Pipavav, Sikka, Tuticorin, Visakhapatnam, Dahej, ,Nagapattinam, Mundhra, Okha, Bedi (including Rozi –Jamnagar), Muldwarka and Porbander or through any of the airports at Ahmedabad, Bangalore, Bhubaneswar, Mumbai, Kolkata, Coimbatore, Delhi, Hyderabad, Jaipur, Madras, Srinagar, Trivandrum, Varanasi, Nagpur,Cochin, 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), Malanpur, Waluj (Aurangabad), Anaparthy (Andhra Pradesh), Salem, Singanalur, Jodhpur, Kota, Udaipur, Ahmedabad, Bhiwadi, Madurai, Bhilwara, Pondichery, Garhi Harsaru, Bhatinda, Dappar (Dera Bassi), Chheharata (Amritsar), Karur, Miraj, Rewari, Bhusawal, Jamshedpur, Surajpur and Dadri or through the Land Customs Stations at Ranaghat, Singhabad, Raxaul, Jogbani, Nautanva(Sonauli), Petrapole, Mahadipur.

Explanation :- In this notification,-

(i) "Capital Goods" has the same meaning as assigned to it in paragraph 9.10 of the Export and Import Policy,-

(ii) "goods" means,-

(a) capital Goods;

(b) office equipment ( including Computer systems, Software, Fax/ machine, Telephone); and

(c) raw materials, components, intermediates, consumables and parts other than agricultural and dairy products;

(iii) "Export and Import Policy" means the Export and Import Policy 2002-2007, published by the Government of India in the Ministry of Commerce and Industry vide notification No.1(RE:2003), dated the 31st March 2003 as amended from time to time;

(iv) "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 license under the said Act.
 

as amended by [Notification Nos. 84/2003-Cus dt 27-5-2003, 63/2004-Cus dt 14-5-2004.]