Notification No. 169/1990-Cus-Exemption to capital goods, when imported into India by an importer under and in accordance with paragraph 197 of the Import and Export Policy

Notification No. 169/1990-Cus Dated 3/5/1990

Exemption to capital goods, when imported into India by an importer under and in accordance with paragraph 197 of the Import and Export Policy- In excise 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 capital goods, when imported into India by an importer under and in accordance with paragraph 197 of the Import and Export Policy, from -

(a) so much of that portion of the duty or customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), as is in excess of the amount calculated at the rate of 25% ad valorem; and

(b) the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act,

subject to the following conditions, namely :-

(i) the importer shall produce to the Assistant Collector of Customs at the time of the importation a certificate for having executed a bond accompanied by bank guarantee for full amount of duty leviable on such goods but for the exemption contained herein before the licensing authority undertaking to comply with all the conditions and obligations specified in the provisions of the said paragraph 197;

(ii) the importer at the time of clearance of the said capital goods shall make a declaration before the Assistant Collector of Customs, in such form as he may specify, binding himself to pay on demand an amount equal to the duty leviable on such capital goods but for the exemption contained herein, in respect of which the conditions specified in the said paragraph 197 have not been complied with.

(iii) where the licensing authority grants an extension of the period for fulfilment of export obligation in terms of, and subject to satisfaction of such condition as may be specified in a Public Notice of the Government of India in the Ministry of Commerce in this regards, the said period of fulfilment of export obligation may extended, but shall in no case be extended beyond the 31st March, 2002.

(iv) where the licensing authority grants an extension of the period for fulfilment of export obligation in terms of, and subject to satisfaction of such condition as may be specified in a Public Notice of the Government of India in the Ministry of Commerce in this regards and the licence-holder units are affected by the earth-quake which took place in the State of Gujarat in the month of January, 2001, then the said period of fulfilment of export obligation may, notwithstanding anything contained in condition (iii), be extended and deemed to have been extended beyond the 31st March, 2002, but shall in no case be extended beyond the 31st March, 2004.

Explanation : In this notification, -

(i) “capital goods” means any plant, machinery, equipment or accessories required by an importer for manufacture of goods;

(ii) “licensing authority” means an authority competent to grant a licence under the Import (Control) Order, 1955 made under the Imports and Exports (Control) Act, 1947 (18 of 1947);

(iii) “Import and Export Policy” means the Import and Export Policy, April 1990 - March, 1993 published vide Public Notice of the Government of India in the Ministry of Commerce No. 1-ITC (PN) 90-93 dated the 30th March, 1990, as amended from time to time.