Notification No. 03/1988, Dated 14th Jan 1988

Exemption to specified goods for use in the manufacture of jewellery for export by 100% export-oriented undertaking set up in Special Export Oriented Complex at Jhandewalan.

14-1-1988

         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 the goods specified in the Annexure to this notification (hereinafter referred to as the said goods), when imported into India for the purposes of use in the manufacture of jewellery for export out of India, by a hundred per cent export oriented undertaking in the Special Export Oriented Complex for the manufacture of jewellery at Jhandewalan, New Delhi (hereinafter referred to as the said Complex), from the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), and from the whole of the additional duty, if any, leviable thereon under section 3 of the said Customs Tariff Act, subject to the following conditions, namely :-

            (i) the importer has been authorised to establish a hundred per cent export-oriented undertaking in the said Complex for the purpose of manufacture of jewellery for export out of India;

            (ii) the importer is covered, wherever required, by a general or specific permit issued in this behalf by the Reserve Bank of India;

            (iii) the importer has been granted necessary licence for the import of the said goods;

            (iv) the importer carries out the manufacturing process or other operations in respect of jewellery in customs bond and subject to such other conditions as the Assistant Commissioner of Customs or Deputy Commissioner of Customs may, having regard to the circumstances of the case, specify in this behalf;

            (v) the importer satisfies the Assistant Commissioner of Customs or Deputy Commissioner of Customs that the said goods so imported shall be used in the manufacture of jewellery for export out of India;

            (vi) the importer agrees to execute a bond in such form and for such sum and with such authority as may be specified by the Assistant Commissioner of Customs or Deputy Commissioner of Customs binding himself to fulfill the export obligation with the prescribed Net Foreign Exchange Earnings as percentage of exports (NFEP) and to fulfill, inter alia, the conditions stipulated in this notification and in the Letter of Approval or Intent or the Industrial Licence issued by the Board of Approval and to pay on demand an amount equal to the duty of customs leviable on the said goods as are not proved to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs to have been used in the manufacture of the jewellery for export;

        Explanation. - For the purposes of condition (vi), duty of customs leviable on said goods in respect of gold and silver shall be limited to the duty as specified under notification of the Government of India, Ministry of Finance, Department of Revenue, No. 80/97-Customs, dated the 21st October, 1997 as amended from time to time.

            (vii) the importer agrees to bring the said goods into the said Complex and use them within the said Complex in the manufacture of jewellery for export out of India;

            (viii) save as otherwise provided in condition (xvi), the importer agrees to export out of India all the jewellery manufactured within the said Complex for the period stipulated by the Board of Approval or such extended period as may be specified by the Board of Approval;

            (ix) on expiry of the period referred to in condition (ix) above, the importer shall pay the following duties, namely :-

            (a) duty of customs on capital goods on depreciated value but at the rates of duty of customs in force on me date of payment of such duty,

            (b) duty of customs on raw materials and on components on the value at the time of import and at the rates of duty of customs in force at the time of clearances;

            (x) the importer shall mainta