Notification No. 10/95-Cus Dated 06-03-95
Exemption on import of inputs required for the manufacture of iron and steel intermediates.-In
exercise of the powers conferred by sub-section (1) of section 25 of the Customs
Act, 1962, the Central Government, being satisfied that it is necessary in the
public interest so to do, hereby exempts inputs required for the manufacture of
iron and steel intermediates when imported into India, from the whole of the
duty of customs leviable thereon under the First Schedule to the Custom Tariff
Act, 1975 (51 of 1975), subject to the following conditions, namely :-
(1) that the importer has been granted necessary import licence (hereinafter
referred to as the said licence) by the Licensing Authority for the import of
the said inputs for the aforesaid purpose in terms of Engineering Products
Export (Replenishment of Iron and Steel Intermediates) Scheme as notified by the
Government of India in the Ministry of Commerce Notification No. S. O. 130(E)
dated the 1st March, 1995 and the said licence has been produced at the time of
clearance for debit by the proper officer of customs;
(2) Omitted
(3) the importer furnishes a bond, with such surety or security, in such form as
may be specified by the Assistant Commissioner of Customs or Deputy Commissioner of Customs
binding himself to pay on demand an amount equal to the duty leviable on the
said inputs but for the exemption contained herein, in respect of which the
conditions specified in this notification have not been complied with together
with interest at the rate of 24% per annum from the date of clearance of the
said inputs;
(4) that the importer produces evidence of having discharged the obligation
relating to supply of iron and steel intermediates to the Engineering Products
exporters to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs
within a period of thirty days from the expiry of period allowed for fulfilment
of the obligation or within such extended period as the said Assistant Commissioner
of Customs or Deputy Commissioner of Customs may allow;
(5) that the inputs so imported shall not be disposed of or utilised in any
manner, except for utilisation in the discharge of obligation to manufacture and
supply iron and steel intermediates in terms of this notification, before the
said obligation under the said licence has been discharged in full :
Provided
that spares and consumables imported in terms of this notification shall not be
loaned, transferred, sold or disposed of in any manner, and shall be used by the
importer only in his factory;
(6)
where benefit of this notification is sought by a person other than the licencee,
such benefit shall be allowed against the said licence only if it bears
endorsement of transferability by the Licencing Authority :
Provided that endorsement of transferability shall not be made by the Licencing Authority before the obligation to supply iron and steel intermediates under the said licence has been fulfilled
(7) that the import is undertaken through the Sea Ports at Bombay, Culcatta,
Cochin, Kandla, Mangalore, Marmagao, Madras, Nhava Sheva, Paradeep, Tuticorin
and Visakhapatnam or through the Airports at Ahmedabad, Bangalore, Bombay,
Culcatta, Delhi, Jaipur, Varanasi, Srinagar, Trivandrum, Hyderabad and Madras or
through the Inland Container Depots at Bangalore, Coimbatore, Delhi, Gauhati,
Moradabad, Ludhiana and Hyderabad :
Provided that the Commissioner of Customs may by special order and
subject to such conditions as may be specified by him permit imports through any
other Sea Port, Airport, or Inland Container Depot or through a Land Customs
Station.
Explanation.-In this notification, -
(i) "Engineering Products" means export items (other than iron, steel,
ferro alloys and refractories) specified under the export product group
"Engineering Products" in the I-O Norms and which have already been
exported;
(ii) "I-O Norms" means the Standard Input-Output and Value Addition
norms as contained in the Hand Book of Procedures (Volume II) published vide
Public Notice No. 121 (PN) /92-97 dated the 31st March, 1992 of the Government
of India in the Ministry of Commerce, as amended from time to time;
(iii) ”inputs" means, -
(a) raw materials, components, intermediates
and consumables specified as import items in the I-O Norms and required for the
manufacture of iron and steel intermediates; and
(b)
spares for a value not exceeding 5% of the value of the licence required for the
maintenance of capital goods installed in the importer’s factory;
(iv) "Iron and Steel Intermediates" means export items specified under
sub-group "Iron, Steel, Ferro Alloys and Refractories" under the
export product group "Engineering Products" in I-O Norms and in
respect of which value addition has been specified in the I-O Norms, and such
items are supplied to an exporter as replenishment for similar items already
used in the manufacture of the Engineering Products against Release Advice
issued by the Licensing Authority :
Provided that no such Release Advice shall be issued by the Licensing
Authority where benefit of duty exemption for such items has been availed under
any other scheme -
(v) "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;
(vi) "Release Advice" means a Release Order indicating the name,
description and technical characteristics of the iron and steel intermediates,
their quantities and value thereof as per the I-O norms.
as amended by Notification Nos. 101/95-Cus dt 26-5-1995, No. 143/95-Cus dt 19-9-1995, No.157/95-Cus dt 9-11-1995 and No. 23/96-cus dt 15-6-1996.