Notification No. 55/2003-Cus Dated 01-04-2003
Exemption on specific goods imported under EPCG Scheme.- 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 specified in the
Table annexed hereto from so much of the duty of Customs leviable thereon which
is specified in the First Schedule to the Customs Tariff Act, 1975 (51of 1975)
as is in excess of the amount calculated at the rate of five percent ad- valorem
and from the whole of the additional duty and special additional duty leviable
thereon respectively under sections 3 and 3A of the said Customs Tariff Act.
2. The exemption under this notification shall be subject to the following
conditions namely:-
(1) that the goods imported are covered by a valid licence issued under the
Export Promotion Capital Goods (EPCG) Scheme in terms of Chapter 5 of the Export
and Import Policy permitting import of goods at the rate of five percent duty
and the said licence is produced for debit by the proper officer of customs at
the time of clearance:
Provided that for import of spare parts specified at Sr.No.4 of the said Table,
the validity period of the licence shall be deemed to be the period permitted
for fulfilment of the export obligation in full;
(2) that the importer executes a bond in such form and for such sum and with
such surety or security as may be specified by the Deputy Commissioner of
Customs or Assistant Commissioner of Customs binding himself to fulfil export
obligation on FOB basis equivalent to eight times the duty saved on the goods
imported as may be specified on the licence, or for such higher sum as may be
fixed by the Licensing Authority, within a period of eight years from the date
of issue of licence, in the following proportions, namely:-
|
S.No. |
Period from the date of issue of licence |
Proportion of total export obligation |
|---|---|---|
|
(1) |
(2) |
(3) |
|
1. |
Block of 1st and 2nd year |
Nil |
|
2. |
Block of 3rd and 4th year |
15% |
|
3. |
Block of 5th and 6th year |
35% |
|
4. |
Block of 7th and 8th year |
50% |
Provided that where the duty saved is not less than Rs.100 crores, or where the
licence is issued to units in the agri export zone as may be notified by the
licensing authority, the export obligation shall be fulfilled with a period of
twelve years from the date of issue of licence in the following proportions,
namely:-
|
S.NO. |
Period from the date of licence |
Proportion of total export obligation |
|---|---|---|
|
(1) |
(2) |
(3) |
|
1. |
Block of 1st, 2nd ,3rd ,4th and 5th year |
Nil |
|
2. |
Block of 6th,7th and 8th year |
15% |
|
3. |
Block of 9th and 10th year |
35% |
|
4. |
Block of 11th and 12th year |
50% |
Provided further that where a sick unit is notified by the Board for Industrial
and Financial Reconstruction or where a rehabilitation scheme is announced by
the concerned State Government in respect of sick unit for its revival, the
export obligation may be fulfilled in terms of Paragraphs 5.5.1 of the Export
and Import Policy.
Provided also that export obligation of a particular block may be set off
against the excess exports made in the said preceding block(s);
(3) that the importer produces within 30days from the expiry of each block from
the date of issue of licence or within such extended period as the Deputy
Commissioner of Customs or Assistant Commissioner of Customs may allow, evidence
to the satisfaction of the Deputy Commissioner of Customs or Assistant
Commissioner of Customs showing the extent of export obligation fulfilled , and
where the export obligation of any particular block is not fulfilled in terms of
the preceding condition, the importer shall within three months from the expiry
of the said block pay duties of customs of an equal amount equal to that portion
of duties leviable on the goods but for the exemption contained herein which
bears the same proportion as the unfulfilled portion of the export obligation
bears to the total export obligation together with interest at the rate of 15 %
per annum from the date of clearance of the goods;
(4) that the capital goods imported, assembled or manufactured are installed in
the importer�s factory or premises and a certificate from the jurisdictional
Deputy Commissioner of Central Excise or Assistant Commissioner of Central
Excise, as the case may be, is produced confirming installation and use of
capital goods in the importer�s factory or premises, within six months from
the date of completion of imports or within such extended period as the said
Deputy Commissioner of Customs or Assistant Commissioner of Customs may allow:
Provided that in the case of ,-
(i) manufacturer exporter and merchant exporter having supporting manufacturer
(s) or vendor(s);
(ii) import of irrigation equipment for use in contract farming for export of
agricultural products; and
(iii) importer rendering services;
the capital goods may be installed at the factory or premises of such other
person whose name and address are endorsed on the licence referred to in
condition (1) and where the bond for full difference of duty, if necessary, in
terms of condition (2) , with a bank guarantee is executed by the importer and
such other person binding themselves jointly and severally to fulfil the export
obligation and all other conditions of this notification and to pay duty with
interest at the rate of 15% per annum in case of default;
(5) that the imports and exports are undertaken through sea ports at Mumbai,
Kolkata, Cochin, Magdalla, Kakinada, Kandla, Mangalore, Marmagoa, Madras, Nhava
Sheva, Paradeep, Pipavav, Sikka, Tuticorin, Visakhapatnam, Dahej, Mundhra,
Nagapattinam, Okha, Bedi
(including Rozi -Jamnagar, Old[Muldwarka and Porbander] 1[Muldwarka,
Porbander, Dharamtar 6[Vadinar and 7[Haldia
(Haldia Dock complex of Kolkata port) and Krishnapatnam] Old[Haldia
(Halida Dock Complex of Kolkata Port)]]4Old[Vadinar and Haldia (Halida
Dock Complex of Kolkata Port)] Old[and Vadinar]] or through any of the
airports at Ahmedabad, Bangalore, Bhubaneswar, Mumbai, Kolkata, Coimbatore,
Delhi, Hyderabad, Jaipur, Madras, Srinagar, Trivandrum, Varanasi, Nagpur,
[Cochin, 2[Rajasansi (Amritsar), Lucknow (Amausi)
6[Indore and Dabolim (Goa)]4Old[Indore and Dabolim (Goa)] Old[and
Indore]] Old[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, Dauladtabad, (Wanjarwadi and
Maliwada), Waluj (Aurangabad), Anaparthy (Andhra Pradesh), Salem, Malanpur,
Singanalur, Jodhpur, Kota, Udaipur, Ahmedabad, Bhiwadi, Madurai, Bhilwara,
Pondichery, Garhi Harsaru, Bhatinda, Dappar (Dera Bassi), Chheharata (Amritsar),
Karur, Miraj, Rewari, Bhusawal, Jamshedpur, Surajpur,
[Dadri, Tuticorin, Kundli, Old [Bhadohi and Raipur] 1[Bhadohi,
[Condition 5 has been amended vide Notification Nos. 84/2003-Cus dt 27-5-2003, 63/2004-Cus dt 14-5-2004, 46/2005-Cus dt 17-5-2005, 77/2005-Cus dt 22-8-2005 , 97/2005-Cus dt 17-11-2005 and 125/2008-Cus dt. 21/11/2008.]
(Proviso given below (inserted vide Notification No.84/2003-Cus dt 27-5-2003)
has been omitted vide Ntf No. 97/2003-Cus dt 25-06-2003)
[OLD
Provided that where the goods are delivered for export through any
Inland Container Depot specified in this condition, its export shall only be
permitted through the sea-ports at Mumbai, Nhava Sheva, Kandla, Chennai or
Kolkata.]
(6) notwithstanding anything contained in condition (3) above, where the
Licensing Authority grants extension of block � wise period for any block(s)
or overall period of fulfillment of export obligation upto a period of two years
or regularization of shortfall in export obligation, not exceeding five percent
of such export obligation, the said block-wise period or overall period of
export obligation shall be extended/ condoned by the Deputy Commissioner of
Customs or Assistant Commissioner of Customs, as the case may be:
Provided that in respect of sick units as specified in the second proviso to
condition (2) above, extension of overall period of export obligation shall not
be allowed.
(This condition has been substituted vide CUS NTF NO. 140/2003 DATE
10/09/2003)
3. Where the goods specified in the said Table are found defective or unfit for
use, the said goods may be re-exported back to the foreign supplier within 3
years from the date of payment of duty on the importation thereof:
Provided that at the time of re-export the goods are identified to the
satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of
Customs as the goods which were imported.
Table
|
S.NO. |
Description of goods |
|
(1) |
(2) |
|
1. |
Capital goods for pre production, production and post production including second hand capital goods upto 10 years old. |
|
2. |
Capital goods in SKD/CKD conditions to be assembled into capital goods by the importer. |
|
3. |
Components of capital goods required for assembly or manufacture of capital goods by the importer. |
|
4. |
Spare parts of goods specified at Serial Nos.1,2,and 3 as actually imported and required for maintenance of capital goods so imported, assembled, or manufactured. |
|
5 |
Spares for the existing plant and machinery of the licence holder. |
Explanation - In this notification,-
(1) "Capital Goods" has the same meaning as assigned to it in
Paragraph 9.10 of the Export and Import Policy;
(2) "Export and Import Policy" means the Export and Import Policy
2002-2007 published vide notification of the Government of India in the Ministry
of Commerce and Industry, No.1/2003 dated the 31st March, 2003 as amended from
time to time;
(3) "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;
(4) "export obligation", -
(i) in relation to importers other than those rendering services, means exports,
to a place outside India, of products manufactured with the use of capital goods
imported, assembled or manufactured in terms or this notification:
Provided that export obligation may also be fulfilled by ,-
(a) export of same products capable or being manufactured with the use of said
capital goods; or
(b) export of same product manufactured in different units of the licence
holder; or
(c) through third party exports made by an exporter or manufacturer on behalf of
the licence holder by exporting the same product and in such cases, inter-alia
the Shipping bills shall indicate name of both the third party and the licence
holder; or
(d) making supplies of same product in terms of sub- paragraphs (a) (b) (d) (e)
(f) (g) (h) (i) and (j) of paragraph 8.2 of the Export and Import Policy; or
(e) export of other goods manufactured by the importer;
(In item (d) bold words has been substituted & item (e) inserted vide CUS
NTF NO. 134/2003 DATE 27/08/2003)
(ii) in relation to importers rendering services, means, receiving payments in
freely convertible foreign currency for services rendered through the use of
capital goods.
Provided that in respect of units holding license both as manufacturer exporter
and service provider, the export obligation may be fulfilled either by export of
products specified in clause (i) or by receiving payments in freely convertible
foreign currency for services rendered through the use of such capital goods.
* [Provided
further that in respect of group companies as defined in the Companies Act, 1956
(1 of 1956), where licence has been issued to any one of the group company, the
export obligation may also be fulfilled by export of any goods/services by any
other company(s) belonging to the said group :
Provided also that in respect of service providers in the Port Handling sector,
the export obligation may be fulfilled by earning service charges in Indian
rupees which are otherwise considered as free foreign exchange by the Reserve
Bank of India.]
[Two proviso above have been inserted vide Notification No. 29/2004-Cus dt 28-1-2004]
5[(iii) shall be, over and above, the average level of exports achieved by the licencee in the preceding three licencing years for same and similar products.]
5[4.
where the total exports of a sector or product group during the year 2007-08 has
declined by more than 5% as compared to the year 2006-07, the average export
obligation of the licencee for 2007-08 may be reduced proportionate to the
reduction in exports of that particular sector /product group during 2007-08 as
against 2006-07;]
1. Substituted vide Notification No. 41/2006-Cus, Dt. 5/05/2006
2. Substituted vide Notification No. 63/2007-Cus Dated 4/5/2007
3. Substituted vide Notification No. 116/2007-Cus Dated 30/11/2007
4. Substituted vide Notification No. 65/2008-Cus Dated 9/5/2008
5. Inserted vide Notification No. 65/2008-Cus Dated 9/5/2008
6. Substituted vide Notification No. 125/2008-Cus Dated 21/11/2008
7. Substituted vide Notification No. 19/2009-Cus Dated 24/2/2009
as amended by [Notification Nos. 84/2003-Cus dt 27-5-2003, 97/2003-Cus dt 25-6-2003, 134/2003-Cus dt 27-8-2003, 140/2003-Cus dt 10-9-2003, 29/2004-Cus dt 28-1-2004, 63/2004-Cus dt 14-5-2004, 46/2005-Cus dt 17-5-2005, 77/2005-Cus dt 22-8-2005, 97/2005-Cus dt 17-11-2005, 41/2006-Cus. dt. 5/5/2006, 63/2007-Cus dt 4/5/2007,116/2007-Cus Dt. 30/11/2007 , 65/2008-Cus dt 9/5/2008 ,125/2008-Cus Dt. 21/11/2008 and 19/2009-Cus dt. 24/2/2009.]