Notification No. 307/92-Cus Dated 28-12-92
Exemption on import of capital goods by specified importer 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 of the
description specified in column (2) of the Table annexed hereto when imported
into India by an importer specified in column (3) of the said Table from so much
of the duty of 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 specified in the corresponding entry in column (4) of the
said Table and the whole of the additional duty leviable thereon under section 3
of the said Customs Tariff Act, subject to the following conditions, namely :-
(i) that the goods are covered by a valid licence issued on or before 30th
April, 1995 issued under the Export Promotion Capital Goods (E.P.C.G.) Scheme in
terms of para 46 of the Export and Import Policy (hereinafter referred to as the
Policy) and the said licence is produced for debit at the time of clearance;
(ii) that the said licence specifies, inter alia -
(a) the description, quantity and value of goods allowed to be imported under
the said licence;
(b) the description and quantity of the capital goods to be assembled or
manufactured;
(iii) that the importer at the time of clearance, shall produce to the Assistant
Commissioner of Customs or Deputy Commissioner of Customs, a certificate from
the Licensing Authority for having executed a bond under paragraph 45 of the
Policy; and
(iv) that the importer at the time of clearance of the goods shall make a
declaration before the Assistant Commissioner of Customs, in such form as the
said Assistant Commissioner may specify, binding himself to pay on demand an
amount equal to the duty leviable on such goods but for the exemption contained
herein in respect of which of conditions specified in the columns (2) and (3) of
the Table are not complied with.
(v) Where the licencing authority grants an
extension of the period for fulfillment of export obligation or regularisation
of shortfall in export obligation not exceeding 5% of such export obligation, in
terms of, and subject to satisfaction of such conditions as may be specified in
a Public Notice of the Government of India in the Ministry of Commerce in this
regard, the said period of fulfilment of export obligation may be extended, but
shall in no case be extended beyond the 31st March, 2002, and the said shortfall
in export obligation condoned by the Assistant Commissioner of Customs or the
Deputy Commissioner of Customs, as the case may be.
TABLE
| S. No. | Description of goods | Description of importer | Rate of duty |
|---|---|---|---|
| 1. | 2. | 3. | 4. |
| 1. | Capital goods in SKD/CKD condition or components of capital goods required for assembly or manufacture of capital goods; and spare parts not exceeding 10% of the value of such capital goods in SKD/ CKD condition or components of capital goods actually imported and required for the maintenance of capital goods so assembled or manufactured. | Importer undertaking an export obligation equivalent to three times the C.I.F. value of the goods specified in column (2) over a period of four years under paragraph 38 of the Policy. | 25% ad valorem |
| 2. | Capital goods in SKD/CKD condition or components of capital goods required for assembly or manufacture of capital goods; and spare parts not exceeding 10% of the value of such capital goods in SKD/ CKD condition or components of capital goods actually imported and required for the maintenance of capital goods so assembled or manufactured. | Importer undertaking an export obligation equivalent to four times the C.I.F. value of the goods specified in column (2) over a period of five years under paragraph 38 of the Policy. | 15% ad valorem |
Explanation. - In this notification,-
(i)
"capital goods" means any plant, machinery, equipment or accessories
required by an importer for, -
(a)
manufacture or production of goods and includes packaging machinery and
equipment, refractories, refrigeration equipments, power generating sets,
machine tools, catalysts for initial charge required for, and imported along
with, capital equipments, equipments and instruments for testing, research and
development, quality and pollution control;
(b)
use in manufacturing, mining, agriculture, aquaculture, animal husbandry,
floriculture, horticulture, pisciculture, poultry and sericulture�
(ii) "Export and Import Policy" means the Export and Import Policy 1st
April, 1992 - 31st March, 1997 published vide Public Notice of the Government of
India in the Ministry of Commerce No. 1-ITC (PN)/92-97 dated the 31st March,
1992, as amended from time to time;
(iii) "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
as amended by Notification Nos. 125/93-Cus dt 20-5-1993, No. 101/95-Cus dt 26-5-1995, No. 108/95-Cus dt 5-6-1995 and by Section 115 of the Finance Act, 2001 read with Sr. No. 3 of Eighth Schedule thereto.